Development Partnerships with the Private Sector


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Development Partnerships with the Private Sector

  1. 1. Development Partnerships with the Private Sector Private Sector CooperationDeutsche Gesellschaft für Internationale Zusammenarbeit – GIZ Dr. Jörg Lohmann, Colombia, 16 April 2012 30.04.2012 Seite 1
  2. 2. Contents Background of Development Partnerships Background and Procedures Project examples 30.04.2012 30/04/2012 Seite Page 2
  3. 3. Background of Development Partnerships 30.04.2012 30/04/2012 Seite Page 3
  4. 4. Background – Coalition Agreement Intensive involvement of and close cooperation with the private sector are designed to sustainably fight poverty and structural deficits in line with the MDGs. Strengthening cooperation with the private sector gives development policy a new strategic thrust and makes it more effective. Expansion/protection of the private sector through Development Partnerships. Efforts to conserve biodiversity and protect the climate and the environment are based on equitable cooperation with developing and emerging countries. 30.04.2012 30/04/2012 Seite Page 4
  5. 5. GIZ – Partnering with the Private Sector Development Corporate cooperation Development objectives objectives partnerships Networks politics, the economy and society Acts as a partner for enterprise Establishes contacts with local and regional decision-makers 30 years of experience in virtually all sectors Works for and with the economy Balances out different interests Manages complex processes 30.04.2012 30.04.2012 Seite Page 5
  6. 6. Development PartnershipsDevelopment partnerships with private enterprise BMZ initiated programme in 1999 Joint projects by GIZ and privately owned companies In more than 70 emerging nations and developing countries Over 1,200 partnerships to date GIZ’s activities cover a wide range of sectors from ‘A’ for anti-AIDS measures to ‘W’ for water, and include energy, environment, trade and health. 30.04.2012 30.04.2012 Seite Page 6
  7. 7. ODA and FDI in developing countries700.00600.00 US$ 583 billion500.00 (2008)400.00300.00200.00 US$ 119.8 billion (2008)100.00 0.00 ODA FDI 30.04.2012 30.04.2012 Seite Page 7
  8. 8. Development Partnerships benefit allstakeholders Companies benefit Development cooperation benefits  sustainable and long-running neutrality, integrity and credibility projects since these are in the sectoral, country-specific and economic interests of the private intercultural know-how company networks and contacts with  mobilisation of private sector governments, agencies and investments in development policy NGOs projects coordination, mediation and  creation of job opportunities and cooperation skills income for local population local project planning and  transfer of expertise management structures  mainstreaming of development financial and human resources themes in the private sector  shift in the way development cooperation is perceived by the private sector 30.04.2012 30.04.2012 Seite Page 8
  9. 9. The GIZ does not offer… subsidies export promotion venture-capital measures low interest loans 30.04.2012 30.04.2012 Seite Page 9
  10. 10. General PPP Criteria Compliance: Every Development Partnership has to comply with the development-policy principles of the German Government. Complementarity: Public and private contributions must be mutually complementary, i.e. cooperation must enable both partners to achieve their objectives more cost- efficiently, effectively and swiftly. Subsidiarity: Public support for the Partnership measure is only given if the private partner would not otherwise implement the PPP and if the PPP is not a legal necessity. Competitive neutrality: The measure must not distort competition. Private sectors own contribution: The company has to make a substantial contribution to the measure that can be assessed in monetary terms. 30.04.2012 30.04.2012 Seite Page 10
  11. 11. Development Partnerships areparticularly good for developing and formulating standards and guidelines that impact on the private sector conducting education and training measures in areas relevant to business transferring expertise and technology improving the value chain carrying out activities that go beyond the company’s core business activities (e.g. social and ecological standards, occupational safety and protection, HIV/AIDS prevention) 30.04.2012 30.04.2012 Seite Page 11
  12. 12. develoPPP.deBackground and Procedures 30.04.2012 30/04/2012 Seite Page 12
  13. 13. BMZ’s Partnership ProgrammeIdeas competitions for projects (maximum EUR 193,000 from public funds) develoPPP.topic develoPPP.innovation develoPPP.alliance 2012: Resource Vocational - Ideas competitions without - Highly significant strategicGreen City: and Climate training, educ thematic requirements alliances (several partners orUrban Protection ation, qualific - Particular innovative in several countries)Development ation approaches - Structure-buildingProtection Energy - Particular entrepreneurial development results commitment - Project’s total volumeRaw amounts to at least EURMaterials 750,000RuralDevelopment with GIZ with DEG with sequa with GIZ with DEG with GIZ with DEG 30.04.2012 30.04.2012 Seite Page 13
  14. 14. Three Opportunities – One ProgrammeThe PPP programme is based on three elements: develoPPP.topic  Selected topics develoPPP.innovation  Innovative private sector proposals  Entrepreneurial creativity develoPPP.alliance  Particularly groundbreaking PPPs that involve several partners, countries and larger investments  Outside the scope of the ideas competition  Extend far beyond a single company’s reach 30.04.2012 30.04.2012 Seite Page 14
  15. 15. GIZ Ideas Competitions – How they work Due Date  Current competitions are published on the GIZ website 15th May 2012 Competition III Competition II Competition I 1. Companies hand in a participation form, including a  15th May 2012 short description of their proposal.  In cooperation with GIZ staff in 2. Development partnership team assesses the Head Office and abroad proposal’s eligibility on the basis of given criteriaStep 1 3. Companies are informed about the results of the  Private Sector Cooperation Unit selection process. 4. The company and GIZ develop a detailed project concept, including a precise cost calculation.  Companies and Development Partnership teams 5. After checking and adjusting the concept, the company and GIZ agree on a contract.  Contracts division, PrivateStep 2 6. Once the contract is signed, the partnership proposal Sector Cooperation Unit is ready for implementation. 30.04.2012 30.04.2012 Seite Page 15
  16. 16. Strategic Alliances – Criteria* Quantitative Criteria Qualitative Criteria Supra-regional orientation: Minimum of 2  Above-average significance and countries* ‘beacon’ character Minimum of 2 private partners  Integration of meso and macro-level stakeholders and above-average Total project volume: at least EUR structure-building and sustainable 750,000 (cooperation contract) results  Multi-stakeholder approach  Broad-based effectiveness and positive results for large sections of poor or disadvantaged population  High level of innovation  Potential for replication/ best practices*A strategic alliance must meet a total of at least six  Links to bilateral TC priority area in atof the criteria listed here, at least two of which must least one partner countrybe quantitative ones. 30.04.2012 30.04.2012 Seite Page 16
  17. 17. Project Examples 30.04.2012 30/04/2012 Seite Page 17
  18. 18. A Selection of our private partners worldwide: 18 30.04.2012 Seite Page 18
  19. 19. Costa Rica Challenge  The protected areas in Costa Rica are separated through settlements andBiological corridors agricultural areas.for conservation and  The natural flora and fauna is out of order.biodiversity ApproachChiquita  Creation of biological corridors between the fragmented nature conservancies.04/2005 – 02/2010  Training of the local population in sustainableVolume: 550 000 € agricultural practices.Public: 250 000 € Impact  Strengthening of the biodiversity.  Raised environmental awareness of the people in Costa Rica.  Alternative opportunities for work (e.g. tourism).  Strengthening of Chiquita’s CSR. 30.04.2012 Page 19 4/30/2012 Seite
  20. 20. Latin America ChallengeEast Africa  Many countries do not have sufficient know- how or financial means to fight theAdaptation for greenhouse to climate  The economies of these most affectedchange (AdapCC) countries depend heavily on agriculture. ApproachCafédirect  Evidence of regional effects of climate change on coffee and tea sector are analyzed03/2007 – 11/2010 in Kenya, Mexico, Nicaragua and Peru.Volume: 820 000 €  Development of local adaption strategies.Public: 420 000 € Impact  Preparation of smallholder farmers for climate change through joined strategy development and implementation trainings.  Preservation of sustainable tea and coffee cultivation for Cafédirect’s value chain. 30.04.2012 4/30/2012 Seite Page 20
  21. 21. Mexico Challenge  Low level of training among Mexican workers.  No vocational training offered for metrology.Environmental andMetrologicalCompetence Centre ApproachKalibrix  Practical training of industrial trainees and employees at Querétaro in metrology and01/2008 – 11/2010 environmental management.Volume: 530 000 €Public: 260 000 € Impact  Mainstreaming of modern metrology and environmental management methods at the University of Querétaro.  Improved level of training among national personnel, ensuring companies’ competitiveness. 30.04.2012 4/30/2012 Seite Page 21
  22. 22. Worldwide Challenge  Structural overproduction of coffee led to a severe price crisis.Common Code for  The livelihood of more than 100 millionthe Coffee people is threatened.Community (4C) Approach  Develop a code of conduct setting out basic standards for the coffee sector.Deutscher  Build up and consolidate organisationalKaffeeverband structures in small farming enterprises. Impact  3.5% of global coffee supply produced in line with the criteria given in the code of conduct.  54% of global coffee producers worldwide have joined the 4C initiative. 30.04.2012 4/30/2012 Seite Page 22
  23. 23. Republic of Congo Challenge  Periodic bloody conflicts continue to the present day in Congo‘s regions of North andOrganic Cocoa South Kivu.Production  The livelihood of the people is mostly destroyed. ApproachEsco Kivu  Cultivating cocoa and mixed cultivation plants.04/2008 – 03/2011  Training the farmers for modern productionVolume: 1.0 million € standards for the certification.Public: 300 000 €  Sensitisation to HIV/AIDS and tuberculosis. Impact  By 2011 12 000 farmers will be trained to grow organic cocoa environmentally friendly.  At the 2009 Chocolate Salon in Los Angeles dark chocolate bars from Esco Kivu’s beans scored second. 30.04.2012 4/30/2012 Seite Page 23
  24. 24. ContactThomas SchneiderCooperation with the Private SectorTel:: +49 (0) 6196/79-2318Fax: +49 (0) 6196/79-2318Email: thomas.schneider@giz.deInternet: 30.04.2012 30.04.2012 Seite Page 24