US Agency for International Development (USAID)

The US Agency for International Development (USAID) has developed extensive policy principles and operational guidelines to lead its relationship with private non-voluntary organisations (PVOs). To USAID, partnerships are constructive and mutually beneficial interactive processes. At the core of the policy lies the balance between respect for the principles of 'privateness' and independence with the maintenance of clear, results-oriented standards of accountability in the pursuit of mutually agreed objectives.

• Consultation: USAID and partners will work together more effectively if they have better communication at all levels and from matters of policy and programme strategy to activity design. USAID policy is to foster the partnership by engaging in consultation with PVOs on a broad range of issues, beginning at the earliest stages of the strategic planning process.
  
• Participation: Broad-based, equitable participation is vital to sustainability and to the success of development efforts. Participatory processes promote a sense of ownership and increase the probability that the development effort will be sustained.
  
• Independence: A PVO's relationship with USAID must not result in a loss of the PVO's private and independent character since, without independence, the fundamental values associated with PVOs and USAID's working with them are diminished. While an organisation's ability to maintain its independence depends on a variety of factors, undue dependence on a single source of funding can jeopardise the role of PVOs.
  
• Capacity Building: USAID policy is that support for institutional capacity building is an essential component of a focused, results-oriented strategy, and is integral to the concept of sustainable development.
  
• Cost sharing: When used, its application should be flexible, case-specific, and should be used to support or contribute to the achievement of results. Cost share should be based on whether it is appropriate for the recipient organisation in the particular circumstances.
  
• Simplification: Simplification of administrative and grant-making requirements is essential to achieving an effective, results-oriented partnership. USAID must, as a matter of policy, identify and implement measures to simplify and rationalise administrative, procedural, and contractual requirements across the spectrum, from registration to negotiation to implementation to audit, consistent with appropriate standards of accountability.

Operational guidelines for these principles are also available, mainly focusing on the consultation processes, cost sharing and decision making structures.

Source: USAID (2002) USAID - US PVO Partnership, Policy Guidance, USAID: Washington DC

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