Presentation at Camões Anna Rosengren and Bruce Byiers European Centre for Development Policy...

Presentation at Camões

Anna Rosengren and Bruce Byiers European Centre for Development Policy

Management

Lisbon, 25th March 2014

Engaging with the Private Sector for

Development

• 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

Overview of presentation

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• Private sector developmentOld agenda: domestic, enterprise growth, value-addition, exports, access to credit, business climate, firm-level skills, industrial policy etc.

• Private sector investment for developmentNew agenda: international, partnering with developed country firms, offset risk, link producers & suppliers

• Private sector finance for developmentInput side – promote and leverage private sector finance

Three related but distinct agendas :

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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

Assumptions – development would happen if only…..

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• 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

Lessons from other EU Member States

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• 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

Team Finland

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• Donor-led models

• Coalition models

• Business models

• Business-CSO models

• CSO-led models

Partnership models

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Mandate and motivation for actors

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• Donor-led - Challenge Funds - Matchmaking facilities

• Multi-stakeholder - Public-private dialogue - IDH - Grow Africa

• Private-led - CSR - Base of Pyramid

PSD Instruments

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Donors • Additionality • Donor attribution • Project-level attribution • Result and impact measurement • Agent selection • Fragile states

Private Sector • Local markets and regulatory challenges • Market distances

Challenges

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• 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

The Political Economy of PSD

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• 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?

Other PSD question and issues

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• 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

Implications for Portugal

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Thank youwww.ecdpm.org

www.slideshare.net/ecdpm

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