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

1. Principles for public-private partnerships – towards sustainability?
Lessons from SAGCOT, healthcare in Lesotho, and Better Factories Cambodia
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Sebastian Grosse-Puppendahl
Trade, Investment and Finance Programme
06 February 2018

2. 1. Context
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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)
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3. 2. Public-Private partnerships (PPPs)
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• 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
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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)
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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
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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
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7. Thank you!
sgp@ecdpm.org | @SebGroPup
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www.ecdpm.org
European Centre for Development Policy Management
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