FinNode Global 2012 - Aid 2.0 - from development projects to sustainable business
Short description of the topic
The game and rules in world of foreign aid are changing. There is an ongoing power shift in development aid sources from WB group, EU and America to NGOs, developing countries and private investments. This will create changes in systems and processes of development aid. We will see more participation of private sector in institutionally developed aid projects both as implementors and experts (business a usual), but also in selections and funding. The voice of "end beneficiaries" in stead of beneficiary governments can be heard more and more and the results tracked further.
Both countries and organizations will develop new models for development aid as well as business based on development aid. The co-operation models between individuals, businesses and institutions will change. Foreign aid, CSR, BOP business models and other points of view will merge into something that looks different than the current operations.
Goal and strategic compliance
Goal of the project to identify major trends and distruption points in a shift from development aid projects to sustained business models while focusing on the key target of answering the question: Where among this change is the business for Finnish companies? Project targets to identify 2-5 concrete project ideas to test and pilot new co-operation models with Finnish companies.
Developing and emergign markets are gaining more and more attention. Widespread ideas include the theory that in the long term a lot of economic growth will come from these markets and most countries are shifting their attention to this. Even in Finland related BOP topic has gained a lot of attention with e.g. Finpro, Tekes, Aalto University, VTT, Finnpartnership and TEM.
Project manager is Sami Humala supported by Maija Arellano from Finpro Washington -project advisory services, and team will include also key persons from Finpro/Finnode India and external expert. Small contribution will be asked from China and Russia(examples of funded countries, or major change factors by themselves as also financiesr of other countries) and Japan and USA as major conributing countries to multilateral aid financing and locatyions for strong NGOs.
Schedule: July -Dec 2012 Draft content of project:
1. Commitment and existing information from stakeholders
- interviews, meetings and workshop in Finland to gather existing views and information
- e.g. UM, TEM, Tekes, VTT, Aalto, Finpro, Finnfund, Finnpartnership, Finnvera, Kepa, Kehys, KUA
- Time allocation and schedule: 5 working days, in 4-6 weeks from kick-off
2. Desk study and expert interviews on money flows of aid funding and changes in processes
- statistical analysis, publications, media
- Sources of money, geographical dispersion, to whom, what themes
- Definition of change in the aid processes and estimation of speed of change and the directions
- NOTE: Only a brief desk study of max 4 days + 5-8expert interviews to answer key question: why the change is evident
- Time allocation and schedule: 15 working days, in 3 months from kick-off
3. Change in countries funding
- 2 financing countries including Finland
- Key trends and identifying cases studies per country on their models and hot topics (to be studied further if project is continued in 2013)
- Time allocation and schedule:6 working days per country (3 months after desk study phase)
4. Change in beneficiaries (target countries)
- 2 developing and emerging markets
- trends of change of processes and money flows
- Time allocation and schedule: 20 working days (3 months after interim results on phase 1)
5. Changing models from private and NGO sphere
- Identification of cases about new models and ways to work with aid markets for possible further actions
- Time allocation and schedule: 5 days
6. Dissemination in Finland
- Kick-off workshop: commitment of stakeholders and feedback from companies
- Reporting workshop & definotyion of next steps
- Schedule and time allocation: by Dec 2012 6 working days
Mr Sami Humala
+420 602 619 155