YOUTH FOCUSED PHILANTHROPY COALITION PHILANTHROPY FOR SUSTAINABLE DEVELOPMENT

YOUTH FOCUSED COALITION

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Rationale Economic recession has taken a toll on both the quantity and quality of jobs.

Youth unemployment in the Arab world is the highest of any region worldwide. It has increased from 24% in 2009 to 29% in 2014

Entrepreneurial activity among Arab youth has declined over the same period

Accelerating Impact by optimizing philanthropy’s potential to fast-track development

Bringing youth focused philanthropy foundations/organizations who believe in catalytic philanthropy and are interested in driving a paradigm shift towards adopting the Venture Philanthropy model

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Objectives 1. Driving more effective and efficient philanthropy by deploying and advocating for more focused, accountable and scalable approaches

2. Demonstrate how more effective philanthropy can help fast track the delivery of SDG 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment, and decent work for all

3. Leverage OECD expertise and knowledge resource base to capture evidence and advocate for more effective philanthropy and more efficient partnerships

YOUTH FOCUSED COALITION

Activities Collaboration, Partnerships and Cooperation

Creating of scalable sustainable social value

Measureable replicable case study

Advocacy and endorsement platform

WHY NOW? WHY MENA?

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Burgeoning youth population in Middle East/World Gulf Cooperation Council (GCC) Governments remain

key driver of economic Private sector is a secondary contributor to GDP 80-100 million jobs to be created by 2020 Private sector has few incentives to grow its talent Investing in human capital seen as a cost 27% youth unemployment MENA – highest in world 40-50% youth unemployment in some countries

Enterprise is stifled….

THE TRADITIONAL APPROACH

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Governments

Private Sector

Academia

Development Actors

“…diversification [in the Gulf] into new sectors has been driven by state-owned companies, and the private sector has contributed little to the employment of locals or the desired move to a less oil-dependent ‘knowledge economy” IMF

“Most resource-poor countries—such as Jordan, Morocco, and Tunisia—also adopted a state-driven growth model.” MENA DEVELOPMENT REPORT – WORLD BANK State-owned Cos

THE 21st CENTURY APPROACH

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Governments

Private Sector

Academia

Development Actors

State-owned Cos

N

E

W

Social Innovation

Grow -

Replicate -

Influence 1

Additional

Impact

Demonstrate

Scale & Sustainability

Create Enabling

Environment

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3

?

Create Urgency

Systemic

Fragmented

WHAT IS EFFECTIVE PHILANTHROPY?

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Creating scalable systemic replicable change…..

FROM TO

Widespread giving Targeted Investing

Project Based Systemic and scalable

Restricted Funding Non-Restricted Funding

Sector Focused Sector Agnostic

Grants Blended Finance

Light touch Engagement Capacity Building

Low Risk / Low Impact High Risk / High Impact

Administrative Competencies Commercial Competencies

Inputs Outputs, Outcomes & Impact

KEY ENTERPRISE INPUTS?

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• Youth equipped with the right skills for the local labor market and ‘work ready’ through effective career counselling and monitoring to minimize attrition and maximize work placement

TALENT

• Debt and equity financing on appropriate terms (capital requirement, pricing and tenor) structured to fit the specific needs of small to medium size enterprises (SMEs) – the greatest potential job creators

FLEXIBLE PATIENT CAPITAL

• Customized, robust and sustained business training and solutions, including market information, marketing, management and finance, strategic planning and technology to bolster the business skills and knowledge of local entrepreneurs

BUSINESS DEVELOPMENT

ASSISTANCE

• Linking SMEs to supply chains and to the vast potential business and community development opportunities and investment projects that will ensure the growth and sustainability of SMEs.

MARKET LINKAGES

• Removing regulatory barriers that are harder for small and mid-sized enterprises to overcome than for large enterprises.

ENABLING BUSINESS

ENVIRONMENT

WHY ENTERPRISE/SMEs?

• UK Government Report: “As well as making a disproportionate contribution to job creation SMEs play a key role in growth by driving competition and stimulating innovation”

• Shell Foundation Report: “SMEs contribute more than half of annual growth in OECD countries and nearly 2/3 of employment”

• Jim Clifton, Coming Jobs War: “When small and medium-sized businesses are dying faster than they’re being born, so is free enterprise.”

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HOW CAN COALITION HELP?

Research to assess multiple enterprise and job creation initiatives in MENA

Demonstrate what has worked and what hasn’t Identify core initiatives that have created social value at

scale Build a coalition to replicate and scale up Demonstrate value add of partnership with evidence

“There is a long-held axiom that there is a “3 year rule” in business-if you can survive the first 3 years, then chances of success become exponentially higher…studies indicate that 70%-80% of businesses fail after an average of only 20 months…the rate of failure in the MENA region might be even higher than that-as high as 90%.”

Small and Medium Sized Enterprises in MENA: Leveraging Growth Finance for Sustainable Development, 2012, Shell Foundation, Hearts and Minds

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WHO IS IN ALREADY IN THE ECOSYSTEM? Talent: • Career Counseling/Work Readiness Programs, Labour Links: • Emirates Foundation; Majid Society; King Khalid Foundation, Mercy Corps, Vittol Foundation,

International Youth Foundation, EFE, Injaz, Ruwwad, Silatech, Leaders of Tomorrow

Flexible patient capital: • Long-term mezzanine finance, grant funding • GroFin; Khalifa Fund; SME; Centennial Fund; Eureeca; NBAD, WAMDA, Endeavour, MicroFund

for Women, Jordan River Foundation

Business development assistance: • Technical assistance, training, incubation facilities • GroFin; Khalifa Fund; Dubai SME; NBAD, ALJCI, Walid Bin Talal, Pearl, WAMDA Market linkages: • Local content programs, privileged access for local sourcing • Ministries of Labor; Ministries of Economy, Ministries of Education, Ministries of Social

Development, Offset Program, TAWAZUN, Sawiris Foundation for Sustainable Development Enabling business environment: • Facilitation of Social Enterprise, Reducing Costs for SMEs • PMO, Arab Foundations Forum, Regulators, OECD, Hult Prize, Emirates Foundation 11

ACTION PLAN

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Build the Coalition through firm

commitments

Engage OECD as advocate and

endorser

Use AFF as Steering

Committee to

Oversee the progress on activities

Administer the reporting on outcomes

Publishing of coalition written outputs

Silatech

King Hussein Foundation

Emirates Foundation

The British Council

Injaz

Ruwwad

Sawiris Foundation for Sustainable Development

Jordan River Foundation

Nakhweh

Connect AFF’s work to the global IDC

Connect outcomes to SDG platform

Endorse quality of AFF coalition

Endorse model of catalytic philanthropy