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40 years of DAI

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In 2006, <strong>DAI</strong> hosted<br />

a party for the Global<br />

Development Alliance<br />

(GDA). <strong>DAI</strong> Senior<br />

Vice President for<br />

Project Management<br />

Rob Dressen stands<br />

at left. Among many<br />

other things, GDA<br />

worked with <strong>DAI</strong> and<br />

others on HIV/AIDS<br />

issues.<br />

90<br />

A Changing Landscape<br />

For the first half <strong>of</strong> <strong>DAI</strong>’s history, the landscape<br />

<strong>of</strong> U.S. foreign aid remained a familiar one.<br />

USAID had its changing priorities, but almost<br />

alone it had been the chief provider <strong>of</strong> U.S.<br />

foreign assistance. That changed in the latter<br />

part <strong>of</strong> <strong>DAI</strong>’s history, as the military, the State<br />

Department, and newly created agencies took<br />

more prominent roles in overseas development.<br />

One <strong>of</strong> these new agencies was the Millennium<br />

Challenge Corporation, established by<br />

Congress in 2004 to disburse funds to countries<br />

that seemed to have high potential for<br />

successful economic development. Another<br />

was the President’s Emergency Plan for Aids<br />

Relief (PEPFAR), intended to combat HIV/AIDS,<br />

primarily in Africa.<br />

USAID was itself changing dramatically. At the<br />

outset <strong>of</strong> the Bush administration, the agency<br />

formulated its own response to growing calls to<br />

bring free-market forces into play in the realm <strong>of</strong><br />

foreign aid. One result was the Global Development<br />

Alliance (GDA), created in 2001 to facilitate<br />

public-private cooperative efforts. Such efforts<br />

started by identifying development opportunities<br />

and assigning seed money. GDA then enlisted<br />

corporate and other private sector partners to<br />

pursue collaborative solutions. In 2006, <strong>DAI</strong> won<br />

an IQC to provide a broad range <strong>of</strong> implementation<br />

services for GDA. Led by Kristi Ragan,<br />

the GDA team established a presence at both<br />

GDA’s <strong>of</strong>fices in Washington and <strong>DAI</strong>’s headquarters<br />

in Bethesda. Among the team’s tasks<br />

were to involve the Mars Corporation in Haitian<br />

hillside farming, help Unocal and ConocoPhillips<br />

fund tsunami relief in Indonesia, and coordinate<br />

efforts by the Government <strong>of</strong> Lesotho and major<br />

U.S. clothing retailers to fight HIV/AIDS in that<br />

country’s garment industry. By mid-2009, <strong>DAI</strong><br />

had leveraged $3 million in program funds into<br />

$17 million in public-private partnerships.<br />

This shifting landscape <strong>of</strong> development meant<br />

tougher going for contractors. As the cost <strong>of</strong><br />

competing for and administering contracts<br />

steadily increased, start-ups faced ever higher<br />

barriers to entry, and even many older, more<br />

established firms were regularly relegated to<br />

subcontractor status. Just a few big contractors,<br />

<strong>DAI</strong> among them, tended to take the lead<br />

in prime contracting. With industry leadership,<br />

however, came new hazards, including the<br />

chance that in the absence <strong>of</strong> a compelling <strong>DAI</strong>

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