Public-Private Partnerships in Action

Monday Developments, November 5, 2001, Volume 19, Number 20

Reprinted with special permission of Monday Developments, November 5, 2001

In the September 24 issue of Monday Developments, Dan O’Brien and Tom Fox, corporate social responsibility experts, elucidated the challenges and merits of public-private partnerships as a tool for addressing the complex issues facing impoverished communities and the corporations operating in their midst. Pact, an international development nonprofit with over 30 years experience, believes public-private partnerships are fundamental to their mission of building strong communities globally that provide people with an opportunity to earn a dignified living, raise healthy families, and participate in democratic life.

But how are these partnerships developed, and what do they look like on the ground?

Through the years, Pact has worked with numerous corporations, both transnational and local, to help them link with communities and nongovernmental organizations (NGOs) across the globe. One of the greatest successes, to date, is the “Young Minds in Motion Program,” piloted by Pact and Microsoft in Indonesia.

 
Partnership Between Pact and Microsoft Indonesia
In January 2000, Pact and the International Business Leaders Forum (IBLF) teamed up to facilitate a corporate engagement workshop entitled “Insight to Action” in Indonesia. The workshop brought 35 local business and NGO representatives together to build mutual understanding and initiate partnerships. With participants from Microsoft, Coca-Cola, Proctor & Gamble, and key Indonesian NGOs, the interaction was lively and productive, addressing misperceptions between the business sector and NGOs, and providing a forum for joint action planning.

Cynthia Iskandar, Marketing Communications Executive for Microsoft Indonesia, was among those participating in the workshop. At the workshop, Iskandar learned about a different approach to social responsibility that called for participation and collaboration among multiple stakeholders. Pact’s notion of “shared risk, shared success” was a new concept for Microsoft, whose previous experiences with philanthropy had followed more traditional notions.

Microsoft was interested in working with a partner that could help them identify trustworthy local organizations and develop a sound community project. Impressed by both the workshop and Pact’s knowledge of local NGOs, Iskandar contacted Pact. Together they identified street children and technology as a possible focus. Subsequently, Pact identified two strong local partners: Yayasan Griya Asih, a halfway house for children; and Yayasan Dinamika, an NGO working with children at a dumpsite near Jakarta. Pact had worked with both NGOs and could attest to their experience and sophistication. After submitting a proposal to Microsoft Headquarters, Iskandar received a $40,000 grant to begin work with Pact and the local NGOs. They met for three days to complete a problem analysis and detailed project plan, after which Microsoft asked Pact to become a formal partner.

Young Minds in Motion Program
The “Young Minds in Motion,” had two goals: (1) to provide computer literacy training to street children, increasing their opportunities for employment and offering the chance for a life off the streets, and (2) to help the two Indonesian NGOs develop technology skills they could sell, ensuring their ongoing financial sustainability.

Microsoft paid Pact a one-time fee of $25,000 for its technical assistance, monitoring and evaluation. They then gave sub-grants to the NGOs, contributed equipment (hardware and software), and convinced local companies to provide technical assistance for the project, such as computer and Internet training. Pact also contributed in-kind project management and technical expertise.

The first stage of the project trained the teachers, usually street educators or NGO staff who attended a two-week computer-training class by the local technology partners. Thereafter, each trainer had a one-month pilot period teaching children in the program. Following this period, teachers updated their skills periodically with the local technology partners.

 
Success! 
As a result of the one-year project, more than 225 children have received computer-literacy training and the capacity of the two local NGOs has been substantially increased. Since representatives at both NGOs have the skills to train children in computer literacy, they are capable of continuing the program on their own. Alongside this, the NGOs and street children have developed a range of income-generating activities, including holding additional computer classes in the community and having children type documents for local university students.

And the success doesn’t stop there — Microsoft and Pact are now collaborating on a second project with four new local partners, which includes teaching computer skills to disabled individuals, creating alternative employment opportunities, and building capacity among organizations working with the disabled.

• Expertise in facilitating partnerships and NGO assessment
Pact played a critical role in introducing Microsoft to trustworthy local NGOs and served as an effective intermediary throughout the program. As Cynthia Iskandar, Marketing Communications Executive for Microsoft Indonesia, put it, “When Pact recommends an NGO partner, I have a guarantee from Pact. Besides Pact’s relationship with NGOs, Pact’s additional financial, management, monitoring, and training expertise ensures that local NGOs will use money responsibly.”

• Financial proficiency
Not only has the project met its short-term goals, but budgeted money remained unused at the end of project period. Iskandar views the extra money as an additional sign that the project is running smoothly, “It was Pact’s responsibility to monitor financial activity, and… [Pact] did not use all the money it had budgeted. So the rest they carried to the next phase of the program. The use of the funds was based on actual need—that doesn’t often happen in Indonesia because of corruption.”

• Program design, implementation, monitoring and evaluation
Due to Microsoft’s limited expertise in program design and implementation, Pact has continued to serve as a key player. Over time, Pact has guided Microsoft to develop a more participatory approach to community development projects, and according to Iskandar, Pact’s role has been critical to daily operations. “Right now, an important lesson that I have learned is that I don’t have certain skills—I need an organization like Pact.”

The Pact-Microsoft Indonesia partnership is just one example of how relationships between the public and private sector can materialize into sustainable projects with measurable effects, and the added value an experienced NGO can lend to the process. To learn more about Pact’s partnership activities and services, visit its website at www.pactworld.org.

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Reprinted with special permission of Monday Developments, InterAction's biweekly newsletter on international humanitarian developments, issues, and trends. For more information about InterAction, visit its website at www.interaction.org.