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Chemonics International
File:ChemonicsBrownLogo.jpg
Company typeESOP
IndustryInternational Development
Founded1975 (1975)
HeadquartersWashington, DC, USA
Key peopleSusanna Mudge (President and CEO)
ServicesAgriculture, conflict and disaster management, democracy and governance, education, energy, environmental services, financial services, gender, health, management solutions for development, and private sector development
Number of employees3,500
Websitewww.chemonics.com

Chemonics International is an international development company with operations in dozens of countries that partners with bilateral and multilateral donors and the private sector to manage capacity building projects in developing countries. Chemonics emphasizes multidisciplinary approaches to solving complex development challenges. The company’s mission states that “by promoting meaningful change around the world, we help people live healthier, more productive, and more independent lives.” Chemonics is employee owned and ISO-9001 quality certified for its services. The company's headquarters is in Washington, D.C. where about 15% of staff are based, with the balance spread around the world.

History

Chemonics was founded in 1975 by the company’s first president, Thurston F. (Tony) Teele. Its fourth and current president is Susanna Mudge. Its first projects included agribusiness studies in Cameroon and Kenya for USAID, which remains the company’s largest client. The company launched its first long-term development projects in Mali and then in Asia in 1977. In the 1980s, Chemonics began managing projects in other technical areas, such as municipal governance, finance, environment and infrastructure. It also broadened its geographic presence to include the Middle East, Central and Eastern Europe, Latin America, and the Caribbean. To date, it has worked in 145 countries worldwide. In the 1990s, Chemonics created an Employee Stock Ownership Plan (ESOP) to give employees a stake on the company. In 2010, the company became the first development company to achieve an ISO 9001 certification for its Quality Management System. The following year, it transitioned to 100% employee ownership.

Criticism

Chemonics has been subject to frequent criticism from the US Agency for International Development (USAID) Office of Inspector General (OIG) for their work on several multi-million dollar aid contracts.

Haiti Recovery Initiative

In 2012 Chemonics came under scrutiny by the OIG for their work in Haiti after the 2010 earthquake. Chemonics was the largest single recipient of post-earthquake funds from USAID, receiving over $196 million in contracts many of which were "no-bid."

Audits specifically cited Chemonics lack of a comprehensive monitoring and evaluation plan and that "some of the performance indicators Chemonics developed were not well-defined." Chemonics also spent more than 75% of program budgets on material and equipment when an expenditure of only 30% was planned.

An Inspector General's report also found that local communities were not sufficiently involved with Chemonics' work and stated "Chemonics used contractors from Port-au-Prince to implement a number of activities in Cap-Haitien and Saint-Marc; these contractors brought their own people to do the jobs instead of hiring locals." When locals were required by USAID, Chemonics' policies "limited the transparency of the selection process and increase the risk of corruption or favoritism by granting decision-making authority to a few individuals."

Afghanistan

In November 2006, USAID Afghanistan awarded a $62 million contract to Chemonics, with an expected end date of March 2010. A 2008 audit of the contract by OIG found that Chemonics' "results fell considerably short of intended results" and "buildings constructed by Chemonics’ subcontractors were not acceptable because of significant construction defects." Additionally, Chemonics was cited for purchasing $37,573 in restricted commodities.

Technical Services

Chemonics carries out complex international development projects focused on agriculture, conflict and disaster management, democracy and governance, education, energy, environmental services, financial services, gender, health, monitoring and evaluation, management solutions for development, and private sector development. The company has a multidisciplinary workforce of 3500, 85% of which are outside the United States. Expertise of the staff includes such diverse disciplines as agriculture, nutrition, biology, economics, political science, finance, medicine, public administration, education, trade, environmental management, law, engineering, sociology, and information technology. Most employees are native to the countries where they work, with a few expatriates in critical roles. The company must compete individually for development projects against other US and international firms and non-profit organizations.

Clients and Partnerships

Chemonics is a key implementing partner for the USAID, and has also worked with the World Bank, International Finance Corporation, Swedish International Development Cooperation Agency, the Millennium Challenge Corporation, the IADB, the Asian Development Bank, the African Development Bank, the United States Department of Defense Humanitarian Affairs Program, Bill and Melinda Gates Foundation, the UN World Food Programme, DFID, AusAID, and GIZ.

Global Health

Chemonics has been actively involved in global health, particularly in health systems strengthening, quality improvement, pharmaceutical supply chain management, behavior change communication, and prevention, care, and treatment of HIV/AIDS and infectious diseases such as Malaria. The company carried out global health programs in Angola, Bangledesh, Democratic Republic of Congo, Ethiopia, Kenya, Madagascar, Malawi, Mozambique, Peru, Philippines, Rwanda, Uganda, Vietnam, West Bank/Gaza, Ukraine, Zambia.

Harnessing the Private Sector

Much of Chemonics work has focused on reforming the enabling environment to allow for the growth of domestic business, trade, domestic and foreign investment, and domestic civil society. This work has focused on specific reforms ranging from land tenure and administration to customs modernization, WTO accession, public-private dialogue, and access to finance. The company has contributed technical support to the reforms of several of the top 10 reformers in the World Bank Doing Business Report including Rwanda (2014), Kosovo (2014), Ukraine (2014, 2013), Mongolia (2013), Serbia (2013), Kazakhstan (2011), Egypt (2010, 2009, 2008), Kyrgyzstan (2010, 2009), Albania (2009), Republic of Georgia (2008, 2007).

Innovation, Transparency, and Evidence-based Approaches

Chemonics is active in the application of mobile technologies in developing countries, partnering with telcom companies, banks, and software developers to apply innovations to developing country settings. In particular, they have expanded access to financial services for underserved populations through mobile money in places like the Philippines and Afghanistan. Chemonics is also one of the first members of the Better than Cash Alliance, which encourages the shift to electronic payments. The company has also applied innovative geospatial technologies to many applications, such as food security monitoring or Reducing Emissions from Deforestation and Forest Degradation (REDD+). The company applies evidence-based approaches to development programs. For example, Chemonics provides USAID with critical analytical support on food security for evidence-based decision making about food aid through the Famine Early Warning Systems Network. In Kenya, Chemonics has applied innovative private-sector approaches to supply chain management to reliably provide life-saving pharmaceuticals and medical equipment to more than a million patients throughout the country.

Climate-Smart Food Security

Chemonics is supporting the US Government's Feed the Future programs in Uganda, Nigeria, Haiti, and Ghana and carrying out other agricultural programs in countries such as Afghanistan, Ukraine, and Bosnia. In Haiti, the Feed the Future-West program directly supports solutions to improve agricultural productivity while preventing deforestation and restoring degraded hillsides. Globally, the company helps relief agencies make evidence-based decisions on food security through the Famine Early Warning Systems Network (FEWSNET). The firm has a long history of providing solutions for sustainably increasing agricultural on fragile and degraded land.

References

  1. "Our Mission and Values". Chemonics. Retrieved 2014-01-20.
  2. "Our Commitment to Staff". Chemonics. Retrieved 2014-01-20.
  3. http://www.chemonics.com/OurStory/OurApproach/Documents/Chem84833cert.pdf
  4. "Obituaries". washingtonpost.com. 2005-04-02. Retrieved 2014-01-20.
  5. "Susi Mudge Becomes CEO of". Chemonics. 2013-04-01. Retrieved 2014-01-20.
  6. "Our History". Chemonics. Retrieved 2014-01-20.
  7. "Our Work". Chemonics. Retrieved 2014-01-20.
  8. "Breaking Open the Black Box" (PDF). Center for Economic and Policy Research. April 2013. Retrieved 2015-04-25.
  9. Mendoza, Martha (2010-12-12). "Outsourcing quake assistance: Haitian contractors get only 1.6% of U.S. aid". Retrieved 2015-04-25.
  10. ^ "Audit of USAID's Haiti Recovery Initiative Activities Managed By Office of Transition Initiatives" (PDF). US Agency for International Development Office of Inspector General. 2012-09-26. Retrieved 2015-04-25.
  11. ^ "Audit of USAID's Cash-for-Work Activities in Haiti" (PDF). US Agency for International Development Office of Inspector General. 2010-09-24. Retrieved 2015-04-25.
  12. "Audit of USAID/Afghanistan's Accelerating Sustainable Agriculture Program" (PDF). US Agency for International Development Office of Inspector General. 2008-08-08. Retrieved 2015-04-25.
  13. "Clients". Chemonics. Retrieved 2014-01-20.
  14. "Our Projects". Chemonics. Retrieved 2014-04-14.
  15. "Top business reformers from Doing Business 2014". World Bank Group. Retrieved 2014-04-14."Business Enabling Environment Project in Kosovo". Chemonics. Retrieved 2014-04-14.
  16. "Mobile Money for Development | A topnotch WordPress.com site". Mobilemoneyfordevelopment.wordpress.com. Retrieved 2014-01-20.
  17. "Our Members | Better Than Cash Alliance". Betterthancash.org. Retrieved 2014-01-20.
  18. "Leading Innovative Imaging". Chemonics. Retrieved 2014-01-20.
  19. "Home | Famine Early Warning Systems Network". Fews.net. Retrieved 2014-01-20.
  20. "Home | Famine Early Warning Systems Network". Fews.net. Retrieved 2014-01-20.
  21. "Our Projects". Chemonics. Retrieved 2014-04-14.
  22. "Haiti Watershed Initiative for National Natural Environmental Resources". Chemonics. Retrieved 2014-04-14.
  23. "Home | Famine Early Warning Systems Network". Fews.net. Retrieved 2014-01-20.
  24. "DESFIL Reports | Development Strategies for Fragile Lands". WorldCat. Retrieved 2014-04-14.
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