Engaging the private sector in international cooperation
Upcoming SlideShare
Loading in...5
×
 

Engaging the private sector in international cooperation

on

  • 392 views

Bruce Byiers, ECDPM

Bruce Byiers, ECDPM
Drivers to engage the private sector in development
Human Security Finland
10 October 2012, Brussels

Statistics

Views

Total Views
392
Views on SlideShare
364
Embed Views
28

Actions

Likes
0
Downloads
2
Comments
0

3 Embeds 28

http://ecdpm.nl 15
http://ecdpm.org 12
http://unjobs.org 1

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Engaging the private sector in international cooperation Engaging the private sector in international cooperation Presentation Transcript

  • Engaging the Private Sector in International Cooperation European Centre for Development and Policy Management (ECDPM) October 2012 www.ecdpm.org/dp131
  • Common or Conflicting Interests? Reflections on the Private Sector (for) Development Agenda www.ecdpm.org/dp131ECDPM Page 2
  • ECDPM Page 3
  • Push: Crisis, aid squeeze & “value for money”ECDPM Page 4
  • Push: job cuts, competition & “new models”ECDPM Page 5
  • Pull: Learning from the private sectorECDPM Page 6
  • “We want to engage the private sector”ECDPM Page 7
  • “...and help our own…” •  UK: “bring private sector ideas, innovation and investment into the heart of what we do...” •  NL: “Dutch interests first, more so than in the past....PPPs, business instruments and economic diplomacy can lead to gains in both commercial profit and poverty reduction.” •  DK: ”… strategic priority in Danish development cooperation to work for a strong private sector…important that Danish business participates actively..."ECDPM Page 8
  • ECDPM Page 9
  • “Many ways to skin a cat” Business level: Sectors: International Agricultural smallholders Large domestic Large-scale agricultural producer SMEs Manufacturers/processors Micro-household based Export-led industries Multinational enterprises Extractive sector firms State-owned enterprises Service providers National monopolies Informal traders Associations Business models: Business constraints: "Raw" capitalism Credit access Core business models Infrastructure Base of pyramid/social businesses Fair Trade Capacity and education level Corporate Social Responsibility Business linkages People-centered business Labour regulations Cooperatives Market exclusion Business climateECDPM Page 10
  • 3 categories of Private Sector EngagementECDPM Page 11
  • If only….. Private Sector Development … developing country businesses were able to startup and expand Private Investment for Development … there was a way to encourage more inwards investment to link with the local private sector Private Finance for Development …there was a way to bring in more finance for public investments and the private sectorECDPM Page 12
  • Private Sector Development Category 1: Private Sector Development •  Economic transformation •  Regulatory reforms •  Making credit accessible to firms •  Industrial policy Mixed results •  Endogenous and exogenous conditions •  The political economy of economic transformationsECDPM Page 13
  • Private sector characterisation High Rent Competitive Exports Rentiers Magicians Domestic Powerbrokers Workhorses Source: Pritchett, 2012, OECD Conference, Paris 28 Feb 2012ECDPM Page 14
  • Private Sector for Development Category 2: Private Sector Investment for Development •  Less clarity on agenda and processes •  Definition of developmental additionality •  From CSR to "core business model" •  What donor tools available? •  How to identify tipping points – trade-offs •  Defining the developmental aspect? •  What do firms say?ECDPM Page 15
  • Private Sector for Development Category 3: Private Sector Finance for Development •  Blending to bring in further private finance •  Release public debt pressure and shared risk burden •  Various purposes e.g. PPPs or increasing finance access •  Challenges - PPPs need to be commercially viable - Risk management and balancing - Legal environment - Capacity to use effectivelyECDPM - Primarily a lack of finance? Page 16
  • Common or conflicting interests?ECDPM Page 17
  • Common interests(?) •  Private Sector: Image and reputation, CSR, risk absorption, high entrance costs, unfair competition from subsidised firms •  Donors: financial crisis and decreasing ODA, new positive grand narrative •  Partner governments: employment creation, raised productivity, inclusive growth, improved business climate, new types of investment, debt burden, interest groups, rents(?) •  NGOs and CSO’s: people centredECDPM business…. Page 18
  • Conflicting interests •  Tied aid and subsidies •  Risk-sharing balance •  Opportunity costs of finance •  Policy Coherence for Development (PCD) •  Profitability vs optimal developmental outcome •  National ownership •  National vs local conflicts •  Impact assessmentsECDPM Page 19
  • How to gauge developmental impact? •  Donor support evaluations •  Firm-level own evaluations •  Some diffuse criteria/measures (e.g. UN, WBCSD, EIB, individual co.s etc) •  What purpose of such a measure? •  How balance development requirements with "efficient business"? •  What incentives to prove developmental impact?ECDPM Page 20
  • Concluding remarks If development is the ultimate goal, then: •  Potential to find synergies •  Need to identify the trade-offs and cut-offs •  Agree on better ways to measure & identify impact •  Improve PS-donor-gov-CSO communication and mutual understanding •  Regulate expectations and understand the mandate and capacity of the otherECDPM Page 21
  • Thank you www.ecdpm.orgBruce Byiers bby@ecdpm.org www.slideshare.net/ecdpm Page 22