Podcast Summary

Podcast: The CGD Podcast
Episode: “Only Private-Sector Investment Can End Extreme Poverty”
Guest: Dr. Raj Shah, Administrator of USAID
Host: Rajesh Merchandani
Date: February 12, 2015

Main Theme and Purpose

This episode features Dr. Raj Shah, then-administrator of USAID, reflecting on his tenure and vision for U.S. international development. The discussion explores successes and challenges from Shah’s leadership, including USAID’s evolving strategy toward ending extreme poverty, the elevation of development in U.S. foreign policy, and the increasing role of private-sector investment and innovation.

Key Discussion Points and Insights

1. Shah’s Approach and Priorities at USAID

• Broad Mission: USAID’s mission is to end extreme poverty and promote resilient democratic societies, which “covers a lot of things really.” (00:18)
• Strategic Shift: Shah focused on elevating development in U.S. foreign policy and adopting a new, partnership-driven model that leverages public-private partnerships, science and technology, and enhanced transparency.
  • Notable quote: “We really pursued ... an agenda that focuses on both elevation of development and doing it differently. And I think we've seen some early successes.” (00:43)

2. Major Successes During Shah’s Tenure

• Ebola Response: A model for doing things differently, emphasizing science, technology, evidence-based approaches, and strengthening local capacity.
  • “When we started ... there were hundreds of cases a day of Ebola in West Africa. Today in Liberia, there's less than one.” (01:33)
  • “...with the willingness to innovate, and with prioritization for local partners, we're able to be very successful.” (02:16)
• New Model of Development: Elevating development in foreign policy and investing in modern initiatives (Feed the Future, Power Africa, Global Development Lab).
  • “At its core, it's basically saying if we're going to have an aid and assistance relationship, countries need to make reforms, set goals and be aggressive about delivering results.” (04:49)
  • “We need private sector partners making Investment for commercial return, but real investment.” (04:49)

3. Private-Sector Investment and Public-Private Partnerships

• Financing for Development: The Addis Ababa conference as a means to mobilize resources, especially through private/commercial investment.
  • “The only way you're going to get those resources is by unlocking massive amounts of private and commercial investment.” (06:17)
• Programs as Examples: Power Africa and Feed the Future have mobilized significant private investment and driven measurable impacts in agriculture and power infrastructure.
  • “Power Africa has already mobilized tens of billions of dollars of financial commitments from private investors ... our alliance for Food Security ... attracted $10 billion of commercial agricultural investment commitments.” (06:28)
• U.S. Leadership: Emphasizes the U.S. is not waiting for conferences to show leadership; it has already embedded development at the center of national policy.
  • “We're not waiting for a conference in year seven to kind of make that statement.” (08:43)

4. Development-Policy and National Security

• Integration in Security Strategy: Shah underscores the “indelible link” between development, U.S. security, and prosperity.
  • “Development and humanitarian engagement done effectively in a modern and results oriented way is absolutely critical to our own prosperity and national security.” (09:19)
  • Gives examples:
    • Central America: Addressing root causes of migration (poverty, crime).
    • Syria: Humanitarian aid and risk for staff on the ground.
    • Ebola: Direct impact of development on public health security.
  • Notable quote: “The problems we face today that threaten American security and prosperity fundamentally require elevation of the development mission and an engagement based on using the tools of development diplomacy and humanitarian affairs.” (11:53)

5. Challenges and Trade-Offs

• Infrastructure Investment: Global challenge to fund necessary large-scale infrastructure (energy, roads) through new approaches and partnerships.
  • “We got to figure out new ways of building public private partnerships and getting that done.” (12:55)
• Centralization vs. Flexibility: More initiatives and centralization have led to better documentation and aggregation of results, but at the cost of some local flexibility.
  • “There's no question we have increased the centralization of decision making ... that's how the future works. That has been controversial. It has been with lots of problems and it's been with some trade offs.” (13:38–13:53)
  • “I do think that's a trade off. You know, we used to be more decentralized ... but the cost is our missions have fewer areas of work..." (14:39)

6. Importance of Leadership

• Feed the Future vs. Global Health Initiative: Success correlates with strong, committed, high-level leadership.
  • “Feed the Future has had the benefit of Jada McKenna ... Secretary Tom Vilsack ... Both Secretaries of State ... and the President's been very directly involved. So a lot of high level leadership can help create the basis for real success.” (16:12)
• Bipartisan Support: Congressional backing is possible for well-led, results-oriented, and clearly communicated initiatives.

7. What’s Left Undone

• Fragile States: Need for greater innovation and capacity building in fragile states (Ebola, Haiti, Afghanistan).
  • “These are national security challenges in large part because they take place in extraordinarily poor and extraordinarily fragile settings.” (17:52)
  • Challenge is building resilience, institutional capacity, and political leadership.

8. Advice for the Next Administrator

• Big Tent Politics: Importance of listening, being inclusive, and leveraging the motivations and skills of all who wish to contribute.
  • Notable quote: “...if you listen to them and embrace their desire to contribute, I think we can build the kind of big tent politics that can continue the trajectory of elevating USAID, elevating development in our national security decision making ... the fight against extreme poverty is in our core national security and in our core economic interest.” (18:56)

Notable Quotes and Memorable Moments

• “We focused on science and technology. We built a data based and evidence based system to make sure we could identify cases, isolate cases. Even as we've pursued an aggressive response to a crisis, we have been building local institutional capacity and using local partners to get almost all of the work done.” – Dr. Shah, (01:39)
• “The only way you're going to get those resources is by unlocking massive amounts of private and commercial investment.” – Dr. Shah, (06:17)
• “We need private sector partners making investment for commercial return, but real investment.” – Dr. Shah, (04:49)
• “The problems we face today that threaten American security and prosperity fundamentally require elevation of the development mission...” – Dr. Shah, (11:53)
• “If you listen to them and embrace their desire to contribute, I think we can build the kind of big tent politics that can continue the trajectory of elevating USAID...” – Dr. Shah, (18:56)

Timestamps for Important Segments

| Segment | Timestamp | |---------------------------------------------|---------------| | Introduction and purpose at USAID | 00:18–00:43 | | Successes: Ebola response & new development model | 01:33–04:49 | | Private-sector investment & public-private partnerships | 05:42–07:39 | | Development and U.S. national security | 08:58–12:03 | | Challenges and centralization trade-off | 13:38–15:17 | | Leadership lessons (Feed the Future vs. Global Health Initiative) | 15:55–17:49 | | What’s left undone and advice for successor | 17:52–18:56 |

Tone & Language

Shah speaks candidly, mixing pride in institutional achievements with realism about challenges. The conversation is pragmatic, data-driven, and forward-looking, reflecting a belief in innovation, partnership, and bipartisan cooperation as keys to lasting progress in global development.