Gateway Foundation document extracts

This page contains extracts from 2 recent documents on the Development Gateway. These documents have been circulated to the World Bank Board ahead of its meeting on 19 July, but are not officially available. Extracts are posted for the convenience of people tracking the Development Gateway. Note that the same topics are covered in both Wolfensohn's Memorandum to Executive Directors and the Gateway Foundation Business Plan.

Full documents available on request from the Bretton Woods Project (hard copies only). Please send request, with your full postal address, to gdg@brettonwoodsproject.org

Document 1: Memorandum to the Executive Directors, James Wolfensohn, 27 June 2001

Case for Gateway

"Strong support and demand have been demonstrated for a portal that focuses specifically on development".

Funding

"To date three countries have indicated their willingness to each commit $5 million over three years to the Foundation, and are in the process of obtaining final approval from their governments. One private company has contributed a first tranche of $1million. At least four other countries are finalising their plans to make contributions to the Foundation, and there are ongoing discussions with several other countries and three private sector companies. The World Bank Group is considering contributing an additional $5 million over the next three years from its Development Grant Facility, subject to Board approval. A request for the first tranche of this contribution, $1 million for the FY02 has been endorsed by the Development Grant Facility Council."

"Based on the preliminary commitments, which are in the range of $15 million for FY02, the Foundation is in a position to support a scaled down version of the Portal ($6 million versus the original $12.5 million), the launching of the Network of Research and Training Centers and the basic activities of the Secretariat."

Relationship between Foundation and World Bank

"World Bank management is seeking authorisation from the Bank's Board "to enter into an arm's length agreement with the Foundation whereby the Bank will provide the necessary staff and infrastructure to operate the Development Gateway Portal, and provide other services in the initial period, and the Foundation will pay for the Bank's services at rates fairly reflecting the Bank's costs."

"Under the by-laws of the Foundation, up to three World Bank Group staff may be appointed to the Board of Directors, including the President of the World Bank. These positions will provide a useful and ongoing channel of information and communication between the organisations."

"A specific risk could arise related to the management contracts: the relationship between the Bank and the Foundation could create conflicts of interest and divided loyalties in the World Bank Group staff working to support the Foundation. Directors of the Foundation who are also Bank staff may be required to declare conflicts of interest in certain discussions because of their duties to both organizations. Bank staff who work on servicing the Bank's contract with the Foundation (eg to provide services in the Portal operations) will have to be mindful that they remain Bank staff members and they are not to hold themselves out as staff of the Foundation. To help mitigate the risk of confusion of roles and divided loyalties, the Foundation's Secretariat will in the course of the first year, be located outside of Bank premises."

"Management also recognises that the management contract between the Bank and the Foundation, even if negotiated at arms length, will create an especially close relationship between the parties and raises a conflict of interest because the Bank will be both a major donor and a key service provider to the Foundation. This conflict is well known to both entities and their respective Boards, and is unavoidable because there is no practical alternative in the short run. To eliminate this conflict, the Bank and the Foundation intend to establish a timetable to phase out the management contracts."

Relationship to Bank Group Knowledge Strategy

Clearly, as the Gateway Foundation's activities gain momentum there are bound to be major opportunities for the Bank to pursue more vigorously its objectives of building a stronger 'knowledge Bank' by leveraging the global ourtreach the Foundation is expected to have.

Development Gateway Foundation Business Plan, (Draft), 27 June 2001

Rationale

"The Foundation is taking a unique approach. As an independent, non-profit organization, the Foundation will convene major public and private donors to support four major integrated program areas simultaneously:

1. The Development Gateway portal - a partnership of governments, civil society, multilateral and bilateral agencies, the private sector, and individuals coming together on an internet-based platform to share information, products and services focused on development and poverty reduction issues - is at the heart of the Foundation.
2. An ICT Development Forum that will help monitor initiatives and disseminate information through the Portal to diminish the digital divide. The Board meeting of the Foundation will provide a natural venue for discussion among leaders in civil society and the public and private sectors on key ICT issues.
3. An action-focused Research and Training Network located in the developing world, linking resources and catalyzing applied research, development and training in ICT of immediate benefit to the people and communities in most need.
4. Grants and Investments for projects at the local, national, regional and global levels aimed at the digital divide, building on activities associated with the Portal and the Research and Training Network.

Positioning compared to related initiatives

[There are a range of related organisations and initiatives such as the DOT Force, ECOSOC ICT Taskforce, IICD, Bellanet, Benton Foundation, Eldis and Oneworld].

"With its partnership and community-building focus, the Foundation is the next logical step in the efforts of the public and private sector donor community to organize and coordinate collective resources and expertise, reduce duplication, and maximize the impact of funding. The Foundation adds the following unique and complementary elements in the fight to bridge the digital divide:

• Independence. As a non-profit organization with broad stakeholder representation, the Foundation will maintain its independence and act as an honest broker in the development community.
• Global reach with local roots.
• Catalytic approach.
• Inclusiveness. The Foundation will work with a cross-section of stakeholders to facilitate partnerships, while providing funding and collaborative online tools to foster new relationships

Portal content

[Version 3.1, to be launched on 30 July]

"Focus on 15 priority topics
Deferred and decentralized publishing
Participation in AIDA project database extended to 10 sources
10 Country Gateways ready for implementation
32 infoDev Country Gateway Planning Grants awarded
Links to E-bookstore"

Governance

The Foundation will be governed by a Board of Directors, of up to thirty persons, representing its public and major private donors and eminent persons in civil society, as well as representatives of developing countries.

The Board is expected to meet at least once a year to review progress and plans, operational strategies, policies, and to grant criteria and exercise overall fiduciary review.

The Board will create an Executive Committee, a Nominating Committee, a Finance Committee and an Editorial Committee.

Finances

The Foundation seeks an operating budget of £50 million a year to finance its activities. The primary source of funding will be donations from public and private organisations, with some contribution expected from revenue-generating activities through the Portal in later years.

The World Bank has already contributed $7 million to the Portal, and infoDev has contributed $2 million of its World Bank allocation for the planning and start-up of Country Gateways. The World Bank Group is considering contributing an additional $5 million over the next three years from its Development Grant Facility. InfoDev will continue to support the establishment of Country Gateways.

Communications and Marketing

The Portal is a major marketing channel, exposing stakeholders to the full range of the different activities of the Foundation.

Risk Management

The Foundation has an ambitious agenda in an environment characterised by rapid technological change, uncertainty regarding potential private sector partners, and untested models of governance and content management.

Civil society organisations have expressed concern that the Portal could lead to centralized control of development-related information. These concerns, in turn, can have a negative influence on the willingness of potential partners - financial contributors as well as content providers - to effectively engage with the Foundation.

Evaluation

Impacts will be measured by qualitative and quantitative techniques. These will include tracking site statistics, surveys and interviews.

This text may be freely used providing the source is credited.

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Published: 10 September 2001 , last edited: 29 June 2006

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