CGIAR Secretariat paper on its fund raising unit that became operational in January 1985. The goals of the unit were to increase the level and reliability of funding, the diversity of funding sources-including private sector sources-and to integrate the System's fundraising and public relations activities.Provided for information at the CGIAR meeting, October-November 1985

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CG/j’,S- Consultative Group on International Agricultural Research WA?? LIBRARY Mailing Address: 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. Office Location: 1825 K Street. N.W. Telephone(Area Code 202) 334-8031 Cable Address-INTBAFRr-\D rcw/s5/21 October 21, ‘1985 'Frgm : The Secretariat International Centers Week October 28 to November 1, "1985 Washington, D.C. Attached is a copy of a paper entitled "Fund Raising for the CGIAR". The paper has been produced in response to a request.aade at the Group's meeting in Tokyo in June. It is principally for information since the item concerned is not on the agenda of the current aeeting of the Group. Our proposal is that a detailed paper dealing specifically with private sector issues be prepared for discussion, if desired, at the Ottawa meeting of the Group (May 21 - 23, 1986). Attachment Distribution CG Members Centers Board Chairman Center DFrectors TAC Chairman TAC Members TAC Secretariat FUND RAISING FOR THE CGIAR Introduction The number of- donor members of the CGIAR has steadiCy increased since the inception of the system, from 15 donor members in 1972 to 39 donor members in 1984. Core funding has also increased from year to year, from $20 million in 1970 to S;173 million in 1984. However, as is well known, the extraordinary rates of growth of annual funding for the CGIAR which characterized its earLy.years ended about 1980, and the system is presently experiencing a small decline in the real value of core contributions. For instance, core contributions in 1985 are now expected to total $171 miLLion. Many factors are involved in this development, not the least’ being the strengthening of the dollar, which, under the matching system applicable to contributions from-the,United States and the World Bank, not only reduces the doLlar vaLue of contributions made in other currencies, but Leverages the total downward year by year. Other factors are financial difficulties faced by some donors agencies, the sense of some that the sys- tem is large and should weed out less effective activities rather than grow. further, and the general shortage o f foreign assistance funds at a time when there are many urgent, even emergency, requirements. The issues related to the direction and the size of the system are being addressed through the TAC exercise on research strategies and in 'other ways. Whatever the outcome of broad strategy, however, it is clear that wider membership of the group and a greater diversity of funding sources are desirable. Both are possible, indeed the List of donor members continues to grow, albeit slower than in the past, and an increasing variety of funding sources are being identified and developed. Developing such sources has, however, become more time-consuming for the centers and the CGIAR secretariat than it was in the past, and it is evident that both increased and more effective fund raising will be required in the future in order to maintain the level of support to the centers, if not to advance it. One question that is arising is the interaction of public sector institutions such as the CGIAR and the centers with the private sector, a question that is not limited to the CGIAR system. Current policies of many aid donors are increasingly stressing the role of the private sector in the development process, while many developing countries are also moving toward a greater reliance on the private sector in their development programs. The Group was built on the initiatives of private philanthropy, and has benefited greatly by the participation of private foundations. In recent years, other private sector entities, both national and international, have shown interest and several centers have received’ modest support from foun- dations outside the Group and from companies. It is evident that, at Least in the short run, the funds potentially available to the system from such private sector sources are relativeLy modest, but at the same time there is a connection in many donor countries between the way the private sector views the work of the Group and the levels of public sector support that are provided.- Any significant attempt to increase public understanding of -2- the CGIAR will require the active participation of the private sector to be effective. At the same time, concerns have been expressed that support from profit-making entities, might influence the work of the system in ways which may not always be congruent with the broad goals of the CGIAR. Such concerns must be addressed fully in any approach to private sector fund raising. Given the importance of the private sector issues, and the Levels of interest already shown in both offering and receiving such support, the Secretariat's newly created fund raising unit is working on a strategy paper for the Group on this subject which should be ready for consideration at the mid-term meeting in May 1986. Fund Raising Unit To respond to current needs, the secretariat and the centers recent L established a small fund raising unit. The unitfbecame'operationat in January 1985 and is headed by the Deputy Executive Secretary. Its print i Y pal aim is to ensure that fund raising receives the priority and sustained attention it needs. To the extent possible the unit tries to identify promising avenues' for investigation and implementation by others, thus adding to the ranks of fund raisers rather than monopolizing' that function. In this way its role is Largely one of catalyst and coordinator. Centers are free to explore whatever initiatives are likely to suit their individual circumstances, the work of the unit being to help them in such endeavors. There are, however, occasions when the unit takes the initiative. Objectives The principal objectives of the unit are to: (a> increase the amounts and the reliability of contributions to the centers and increase the diversity of funding sources; Cb) orchestrate and focus the fund raising activities of the system, making fund raising activities more effective; Cc) provide timely and accurate information to all those e*ngaged in fund raising on behalf of the system; Cd) provide services to donors in connection with fund raising activities; and Ce) promote the integration of public relations and fund raising activities in the secretariat and generally in the system. In carrying out these objectives, the unit recognizes and respects the direct relationship between centers and donors which is one of the most important operational principles of the CGIAR system. It also makes use of the comparative advantage of individual members of the system, such as the Q , i -3- access of a center to a specific donor, the relationships of an existing donor with key decision Levels in another donor or potential donor, and the access to individuals who are committed to.the system or some part of it. The commitment of the World Bank to fund ra%sing on behalf of the system is a major asset. Priorities The first priority of the fund raising unit is to increase funding from existing public sector sources of funding and seek out new donors of a similar kind (countries and development institutions); the second is to explqre opportunitiesfor diversification of funding, starting with opportunities that appear to exist in North America, Europe and Japan. Action Program The principal current activities dealing with existing and new public sector sources are.as foltows:- Ci) In order to improve the system's institutional memory, to estab- lish a data-base covering all existing and potential donors, drawing first on information already known to the secretariat and the centers, and subsequently seeking additiona 1 insights from donors themselves. (ii) Identify additional countries or development institutions that may be interested in the CGIAR and to then encourage them to join the system. (iii) Identify donors who would be prepared to undertake studies, and the necessary follow-up work, to identify additional public sec- tor funding sources within their own agencies and/or countries. (iv> Identify additional resources for fund raising in order to supplement resources currently provided by the CG secretariat and the centers. The principal activities associated with identifying other more diverse sources of funding are as foltows:- Ci> Study the implications of, a?d. requirements for, establishing a number of public support organizations in countries where such opportunities exist, with priority being given to countries which are already leading donors to the system. (ii) Seek out and obtain presently unconvertible or blocked funds, both privately and publicly owned, as a source of funding for the centers. (iii) Identify and establish. procedures whereby locally restricted currencies (for example from OPEC funds or monetized food aid) may be made available as a source of funding for both the centers and the national institutions with whom they work cooperatively. -4- Information services The unit is increasingly orienting the secretariat's information resources towards the needs of fund raising. This involves -identifying and then producing or assembling publications, printed matter and other media material that are appropriate for fund raising, drawing on material produced by the secretariat and/or provided by centers and by donors. Illustrative activites The unit is already .engaged in a wide range of activities. The following serve to illustrate what it is currently doing. The unit recently arranged for a visit to Saudi Arabia, at the invita- tion of the Government, by representatives of several centers to make direct contact with agricultural researchers in Saudi Arabia. Similarly, visits to centers by representatives of several countries which are consi- dering joining the. Group have been or are being arranged. An interaction between the French research community and the centers to exchange views an research priorities and areas for collaboration, basically at French initi- ative, has been facilitated by the unit. Recently a new country donor has joined the system, !argely in response to the unit's activities, and it is hoped that several others wilt join in the not too distant future. The organizers of a recent irans&AtLantic rock concert have been contacted and ..' have expressed interest in the centers. The unit has concluded that an important means of obtaining different forms of support (cash, kind or influence) from a range of sources in a country would be the creation of support organizations in countries that already contribute to the Group, starting with countries where there are fiscal or other incentives encouraging such activity. Such support organi- zations could have a range of functions in addition to fund raising. For instance, they could encourage closer Linkages between domestic research, institutions in the country concerned and both the international centers and national research institutions in developing countries with whom the centers work, and also enhance understanding of the CGIAR by a wide range of Local audiences. As a start, and somewhat of an experiment, a not-for- profit organization has been established in the United States and accorded .tax exempt status: it is entitled "The International Fund for Agricultural * Research" or IFAR. Studies and activities are proposed in a number of European countries pointing in a similar direction, and individual donors have been approached for cooperation in the exploration of such concepts, including provision of some seed money. A possible source of funding, which at least one center has already tapped, is blocked currencies. These are funds in developing countries wh,ich are owned by corporations or individuals from other countries that are unable to be transferred promptly into hard currency. The unit is working on the possibility that such funds might be contributed to centers operating where.the funds exist, and has identified a source of expertise on what is in effect a very complex issue. The details of a joint program are being negotiated. Current proposals are to concentrate on companies “, 9 ‘! , -5- on companies with blocked assets in Nigeria, where from $6 to $8 bittion equivalent is said to be blocked. It is clear that, to be successfut, considerable research and sustained effort is required at both ends of the chain, i.e. where the blocked currency is Located and at the headquarters of the institution owning the btocked currency. IFAR could play an impor- tant rote in obtaining contributions of blocked funds in-so-far as US owners of such funds are concerned. Studies of a similar nature with similar objectives are being initiated by one country member of the Group which may have implications for other countries. A considerable number of countries, particuiarly in Africa, have quantities of restricted Local currencies that have been accumulated as a consequence of balance of payments loans from the OPEC Fund and various bi Lateral donors. Food aid also can generate restricted Local currency. The unit is exploring whether these could be a source of funding, particu- larly for nationat institutions with whom the centers are cooperating through various networking arrangements. There are other initiatives which the unit witi be working on in due course, which wi Ll require expertise, experience and contacts which the unit does not have. Assistance is being sought from many sources, inctud- ing donors, centers and developing country agencies. There is aiso Likely to be an increasing use of specialized consultants. b 

Fund Raising for the CGIAR

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Fund Raising for the CGIAR

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