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Principles for public-private partnerships – towards sustainability?
Lessons from SAGCOT, healthcare in Lesotho, and Bette...
1. Context
2
Growing recognition that challenges are multi-faceted &
complex, requiring collaborative, multi-stakeholder a...
2. Public-Private partnerships (PPPs)
3
• PPPs implemented through wide range of departments (i.e.
development, trade, DFI...
• Interesting case: massive scale in terms of finance and geographical area
→ important lessons for other PPP frameworks /...
SAGCOT objectives and principles to achieve fair & inclusive
Agricultural Green Growth
• However:
○ Translation of policy ...
4. Conclusion
Two concerns raised most frequently regarding development PPPs:
→ additionality & transparency
● defining, e...
Thank you!
sgp@ecdpm.org | @SebGroPup
ecdpm.org/dp194
www.ecdpm.org
European Centre for Development Policy Management
7
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Principles for public-private partnerships – towards sustainability? Lessons from SAGCOT, healthcare in Lesotho, and Better Factories Cambodia

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ecdpm.org/dp194
Sebastian Grosse-Puppendahl
Trade, Investment and Finance Programme
06 February 2018

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Principles for public-private partnerships – towards sustainability? Lessons from SAGCOT, healthcare in Lesotho, and Better Factories Cambodia

  1. 1. Principles for public-private partnerships – towards sustainability? Lessons from SAGCOT, healthcare in Lesotho, and Better Factories Cambodia ecdpm.org/dp194 Sebastian Grosse-Puppendahl Trade, Investment and Finance Programme 06 February 2018
  2. 2. 1. Context 2 Growing recognition that challenges are multi-faceted & complex, requiring collaborative, multi-stakeholder alliances between all sectors of society → public-private partnerships • Need for smart use of aid & public funding • Increasing focus on leveraging private finance and investments → e.g. EU External Investment Plan, OECD Blended Finance principles • majority of bi-/multilateral donors have PSE programmes 4 SDGs → economic growth, job creation & market development key factors in most donors’ support to developing countries → PSE/economic growth focus reflected in institutional set-up • criteria / principles to ensure more ‘developmental’ private sector engagement (PSE) ecdpm.org/dp194
  3. 3. 2. Public-Private partnerships (PPPs) 3 • PPPs implemented through wide range of departments (i.e. development, trade, DFIs etc.) & diverse definitions, categories • ‘Successful’ partnership → beyond private returns (financial viability), public returns key to ensure social, political & environmental sustainability • Challenge: balancing dual objectives!! Country bias: commercial interest → developed/stable markets BUT developmental needs more in poor/fragile countries e.g. 60% of PPP investments targeted to UMICs • However, more development principles/sustainability criteria in place governing PSE programmes (e.g. CAFOD et al. work) → reflects degree of convergence on appropriate PS behaviour → challenges remain! compliance & enforcement • To ensure compliance, donors must strike the right balance between legally binding regulations & softer measures → business incentives for voluntary principles vs. effectiveness ecdpm.org/dp194
  4. 4. • Interesting case: massive scale in terms of finance and geographical area → important lessons for other PPP frameworks / future PPPs • WEF flagship, mainly business-driven partnership, determining / influencing power dynamics among different stakeholders • Regional in nature → geographical area • Holistic approach, SAGCOT tries to address various gaps/issues, such as: ○ engaging local farmers, ○ raising overall agricultural productivity, thus contributing to broader economic transformation and decreasing (rural) poverty, ○ increasing job creation, and ○ improving regional coordination towards food security/market dev ○ ensuring environmental sustainability 3. Case study on agriculture: Southern Agricultural Growth Corridor of Tanzania (SAGCOT) 4 ecdpm.org/dp194
  5. 5. SAGCOT objectives and principles to achieve fair & inclusive Agricultural Green Growth • However: ○ Translation of policy (e.g. Greenprint) to practice? ○ Different actors, different language (e.g. incl, sust invest) → reports: environmental/social objectives controversial or at risk → Need for closer monitoring/independent assessment & review • Sustainable development principles → no mention of financial sustainability & demand for such investments • Conflicting interests → national/local elites & overall business environment constraints as negative factors for PPP to develop → Land conflicts, land management, land use: direct (negative) impact on PPP rather than positive one on FDI 3.1 Case study on agriculture: SAGCOT 5 ecdpm.org/dp194
  6. 6. 4. Conclusion Two concerns raised most frequently regarding development PPPs: → additionality & transparency ● defining, ensuring, measuring additional impact due to public finance ● availability of reliable information on the negotiation, the design, the implementation and the results of PPPs Analysis reflects wide & widening definition of PPPs + lack of data!! → 2 basic questions for evaluating PPPs’ success & sustainability A. Is the PPP the best tool to address the identified needs in a specific context, in comparison to the alternative options? B. Does the PPP deliver what it promised to deliver?  Need to better understand the distribution of costs and benefits → greater transparency required based on available data → underlying PPP design to reflect likely power imbalances between powerful MNEs, smallholders & public sector in weak environments 6 ecdpm.org/dp194
  7. 7. Thank you! sgp@ecdpm.org | @SebGroPup ecdpm.org/dp194 www.ecdpm.org European Centre for Development Policy Management 7

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