Engaging with the Private Sector for Development Presentation

Engaging with the Private Sector for Development Presentation at Camões Anna Rosengren and Bruce Byiers European Centre for Development Policy Management Lisbon, 25 th March 2014

Overview of presentation • Brief background – what private sector are we talking about? • Lessons from other EU Member States - Institution - Instruments - Challenges • The Political Economy of PSD • Implications for Portugal ECDPM Page 2

ECDPM Page 3

Three related but distinct agendas : • Private sector development Old agenda: domestic, enterprise growth, value -addition, exports, access to credit, business climate, firm-level skills, industrial policy etc. • Private sector investment for development New agenda: international, partnering with developed country firms, offset risk, link producers & suppliers • Private sector finance for development Input side – promote and leverage private sector finance ECDPM Page 4

Assumptions – development would happen 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 (or private) investments ECDPM Page 5

Lessons from other EU Member States • United Kingdom - The Engine of Development, 2008 • Germany - Forms of Development Cooperation involving the Private Sector, 2011 • Sweden - Collaborations with the private sector, 2011 • The Netherlands - The Good Growth Fund, 2013 ECDPM Page 6

Team Finland • Collaboration between Ministry of Employment, Ministry of Foreign Affairs and Ministry of Education and Culture + 70 teams abroad • Activities - Services supporting the internationalisation of business - Influencing the external environment - promoting FDI in Finland - Promoting Finland’s country brand ECDPM Page 7

Partnership models • Donor-led models • Coalition models • Business-CSO models • CSO-led models ECDPM Page 8

Mandate and motivation for actors ECDPM Page 9

PSD Instruments • Donor-led - Challenge Funds - Matchmaking facilities • Multi-stakeholder - Public-private dialogue - IDH - Grow Africa • Private-led - CSR - Base of Pyramid ECDPM Page 10

Challenges Donors • • • Additionality Donor attribution Project-level attribution Result and impact measurement Agent selection Fragile states Private Sector • Local markets and regulatory challenges • Market distances ECDPM Page 11

The Political Economy of PSD • Who leads who and what impact will that have on partnership structures? - Donor perspective - Private Sector perspective • The role of national institutions and governance systems. - Policy and operational perspective - Domestic resource mobilisation ECDPM Page 12

Other PSD question and issues • How to define and understand developmental outcomes? • Linkages between international investment and the local private sector • To what degree can we embrace pilot, experiments and failures using taxpayers money? ECDPM Page 13

Implications for Portugal • Alignment with current strategy? • Portugal’s PSD strategy ( 1 ) extend to more people and better able access to education and health and other basic social services ; ( 2 ) create and expand to more people and better conditions , access to employment opportunities and income; ( 3 ) foster more and better dialogue and joint action between the public and private sectors in the field of development cooperation. • Priority Sector? - Extractives ECDPM Page 14

Thank you www. ecdpm. org www. slideshare. net/ecdpm Page 15