Why does USAID partner?
With 75 percent of U.S. resources flows to the developing world originating from the private sector, USAID recognizes that it may not be the “majority stakeholder” in the alliances it forges. To keep up with the new realities of development assistance, in which the private sector plays an increasingly important role (see Resource Flows Chart and history), USAID welcomes nontraditional partners as equals in development projects because it just makes sense. Each partner contributes its own unique set of skills and resources to collaborate on jointly defined development challenges, achieving a solution that neither actor could solve alone. As a result, alliances between USAID and the private sector have the potential for greater, more sustainable impact. At the same time, alliances provide a safe mechanism where partners pool risk and resources for mutual benefit and reward.
