This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.guardian.co.uk/global-development-professionals-network/2013/may/13/coca-cola-water-seed-funding
The article has changed 3 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| The private sector: new seed-funders for development? | The private sector: new seed-funders for development? |
| (3 days later) | |
| With more and more companies giving money to development charities or donating a percentage of the sales of certain products, most people are familiar with the idea of companies investing in development work. What doesn't tend to happen a lot, however, is the private sector providing seed-funding to kick-start development projects – a role traditionally played by development donors. | With more and more companies giving money to development charities or donating a percentage of the sales of certain products, most people are familiar with the idea of companies investing in development work. What doesn't tend to happen a lot, however, is the private sector providing seed-funding to kick-start development projects – a role traditionally played by development donors. |
| Yet the idea does have merit. Could the private sector play a greater role in providing the seed-funds needed to trial new ideas so that donors and governments can replicate, on a larger scale, those that work? | Yet the idea does have merit. Could the private sector play a greater role in providing the seed-funds needed to trial new ideas so that donors and governments can replicate, on a larger scale, those that work? |
| An example that both demonstrates the benefits of this approach and provides important lessons for future attempts by businesses wanting to take this route is the Every Drop Matters project – or EDM. | An example that both demonstrates the benefits of this approach and provides important lessons for future attempts by businesses wanting to take this route is the Every Drop Matters project – or EDM. |
| EDM began in 2006 when The Coca-Cola company and the United Nations Development Programme (UNDP) came together to start a regional water partnership to seed-fund and pilot innovative ways of solving water problems identified by local communities. | EDM began in 2006 when The Coca-Cola company and the United Nations Development Programme (UNDP) came together to start a regional water partnership to seed-fund and pilot innovative ways of solving water problems identified by local communities. |
| Since then the initiative has expanded, and now has 62 projects working to test new ways of protecting and replenishing water resources in eastern Europe and the Commonwealth of Independent States, the Arab States and Asia. To date, the project claims to have helped improve over 350,000 people's access to water and sanitation. | Since then the initiative has expanded, and now has 62 projects working to test new ways of protecting and replenishing water resources in eastern Europe and the Commonwealth of Independent States, the Arab States and Asia. To date, the project claims to have helped improve over 350,000 people's access to water and sanitation. |
| Funding pilot projects | Funding pilot projects |
| EDM policy of funding pilot projects aims to bring more money to bear on a problem – either by winning additional funds to expand a project's scope, or by providing the proof governments and donors need to fund a project's replication on a much larger scale. | EDM policy of funding pilot projects aims to bring more money to bear on a problem – either by winning additional funds to expand a project's scope, or by providing the proof governments and donors need to fund a project's replication on a much larger scale. |
| A good example is the work started with a small seed grant from EDM to clean up the polluted Aghstev River in Armenia. By showing the feasibility of this work, the project attracted extra funds from USAid and helped local government get a further $2m loan from the European Bank for Reconstruction and Development to build a wastewater treatment works and rebuild local sewers. | A good example is the work started with a small seed grant from EDM to clean up the polluted Aghstev River in Armenia. By showing the feasibility of this work, the project attracted extra funds from USAid and helped local government get a further $2m loan from the European Bank for Reconstruction and Development to build a wastewater treatment works and rebuild local sewers. |
| Similarly, a rooftop rain-water harvesting system successfully piloted in Turkey has now been replicated in many other countries, as far away as Pakistan, Nepal and Bangladesh. Another example is the innovative 'Black Sea box' – an environmental education kit for schoolchildren. Piloted in Turkey, it is now being adopted by governments of other countries bordering the Black Sea. | Similarly, a rooftop rain-water harvesting system successfully piloted in Turkey has now been replicated in many other countries, as far away as Pakistan, Nepal and Bangladesh. Another example is the innovative 'Black Sea box' – an environmental education kit for schoolchildren. Piloted in Turkey, it is now being adopted by governments of other countries bordering the Black Sea. |
| Lessons learned | Lessons learned |
| One key lesson for the private sector is don't try to do it alone. For this type of seed-funding initiative to work, business needs a strong and reputable development partner like UNDP. Ideally this development partner should have staff on the ground, managing small grant programmes, and building good connections with communities, NGOs, and local and national government. This will ensure that pilot projects are relevant and can be replicated and scaled up. | One key lesson for the private sector is don't try to do it alone. For this type of seed-funding initiative to work, business needs a strong and reputable development partner like UNDP. Ideally this development partner should have staff on the ground, managing small grant programmes, and building good connections with communities, NGOs, and local and national government. This will ensure that pilot projects are relevant and can be replicated and scaled up. |
| Another message for companies is that they should link the initiatives firmly to their business strategy – which helps to gain and maintain internal support for development projects. For example, water is a key business issue for EDM partner Coca-Cola and is critical to its global vision 2020. One of its business goals is to return the same amount of water it uses in its operations to communities and the environment. | Another message for companies is that they should link the initiatives firmly to their business strategy – which helps to gain and maintain internal support for development projects. For example, water is a key business issue for EDM partner Coca-Cola and is critical to its global vision 2020. One of its business goals is to return the same amount of water it uses in its operations to communities and the environment. |
| Considerable effort is also needed to ensure such initiatives are true partnerships – not just a funder–implementer relationship. EDM has found that a small steering committee ensures an equal working partnership. Its committee has just six members (three from each partner). This helps discussions remain frank and open and makes for a very democratic way of deciding which pilot projects to fund. | Considerable effort is also needed to ensure such initiatives are true partnerships – not just a funder–implementer relationship. EDM has found that a small steering committee ensures an equal working partnership. Its committee has just six members (three from each partner). This helps discussions remain frank and open and makes for a very democratic way of deciding which pilot projects to fund. |
| Finally, both partner organisations need to have a strong local presence, with offices in each country. This will mean that staff work with each other regularly, and call on each other's very different skills. | Finally, both partner organisations need to have a strong local presence, with offices in each country. This will mean that staff work with each other regularly, and call on each other's very different skills. |
| Benefits | Benefits |
| The bringing together of very different points of view, resources and expertise has been a major benefit for EDM. While UNDP brings expertise on water governance and works on the ground and with national and local governments, Coca-Cola brings a lot of knowledge on outreach, effective communications, and creative, practical and innovative ways of project design – in addition to its financial contribution of $2m per year. | The bringing together of very different points of view, resources and expertise has been a major benefit for EDM. While UNDP brings expertise on water governance and works on the ground and with national and local governments, Coca-Cola brings a lot of knowledge on outreach, effective communications, and creative, practical and innovative ways of project design – in addition to its financial contribution of $2m per year. |
| Also, because the partnership is not funded by public money from taxpayers, it can afford to be innovative. It can try bold new ideas to see what works. Those that do work continue to receive funding and those that don't can be quickly dropped. There is a strong focus on delivering results, and a relatively short funding cycle of one year, which encourages projects to deliver concrete outputs. | Also, because the partnership is not funded by public money from taxpayers, it can afford to be innovative. It can try bold new ideas to see what works. Those that do work continue to receive funding and those that don't can be quickly dropped. There is a strong focus on delivering results, and a relatively short funding cycle of one year, which encourages projects to deliver concrete outputs. |
| Challenges | Challenges |
| The different cultures in business and development posed a challenge at the start. Business is used to moving quickly and seeing fast results, while development organisations are used to working to a longer time-frame, in order to achieve long-term sustainable results. | The different cultures in business and development posed a challenge at the start. Business is used to moving quickly and seeing fast results, while development organisations are used to working to a longer time-frame, in order to achieve long-term sustainable results. |
| From Coca-Cola's side, it took time to appreciate that community-development approaches can take longer than expected. The company has learned to be more flexible and more understanding of the long-term nature of the return on investment. In addition, development teams now have a stronger focus on efficiency. | From Coca-Cola's side, it took time to appreciate that community-development approaches can take longer than expected. The company has learned to be more flexible and more understanding of the long-term nature of the return on investment. In addition, development teams now have a stronger focus on efficiency. |
| Both partners say that they've learned to appreciate each other's priorities, and the initiative is set to expand further and work with more private-sector partners interested in water. | Both partners say that they've learned to appreciate each other's priorities, and the initiative is set to expand further and work with more private-sector partners interested in water. |
| Dr Kadri Ozen is the public affairs director for Coca-Cola Eurasia & Africa, and the catalyst behind the Every Drop Matters project. Dr Bogachan Benli, from the UNDP water and ocean governance programme, is the EDM global programme manager | |
| This content is brought to you by Guardian Professional. To get more articles like this direct to your inbox, sign up free to become a member of the Global Development Professionals Network | This content is brought to you by Guardian Professional. To get more articles like this direct to your inbox, sign up free to become a member of the Global Development Professionals Network |