Presentation Outline Introduction Methodology Overview of donor - - PowerPoint PPT Presentation
Presentation to IDRC February 22 nd , 2013 Presentation Outline Introduction Methodology Overview of donor strategies Modalities for engaging with the private sector Implementation considerations Recommendations and future
Introduction Methodology Overview of donor strategies Modalities for engaging with the private sector Implementation considerations Recommendations and future research Knowledge mobilization What next? Questions and answers?
Increasing focus on the private sector by OECD-DAC
International Commitments
Declining aid budgets
ODA in 2011 fell by 2.7% in real terms, breaking 14 years of
real growth in aid since 1997 Lack of comparative analysis
Initial mapping and exploratory assessment “[This research] helps fill a gaping hole in the aid debate”,
Erinch Sahan, Private Sector Policy Advisor, Oxfam GB
Objectives:
Survey key components of bilateral donor strategies on the
private sector;
Examine the extent to which commonalities and differences
exist across various strategies;
Assess how donors incorporate good development practices
(gender, sustainability, etc.) into their strategies; and
Identify examples of good practice based on findings.
Literature review January-July 2012 Framework analysis Restricted to OECD DAC Donors policies, including:
Strategy papers, policy documents, web sites on growth and
the private sector, different tools
Statements and public commitments Various ‘policy levels’ Links between growth, trade and poverty reduction, and
literature on growth
Piloted on Sweden, UK and US:
Further expanded (beyond just PS), and refined themes and
sub-themes
Limitations of the methodology
Based on policies, not practice Confined to bilateral donors given lack of research on them
relative to extensive literature on multilateral donors
No statistical analysis conducted (so no comparison of donor
allocations relative to respective normative frameworks)
Providers of South-South cooperation
Provide provisional baseline for traditional donors’
Policy Frameworks
Broad and varied range and depth of strategies - “themes” Generally provide guidance and direction (more than
programming)
Engaging with the private sector Promoting private sector development Partnering with the private sector for development Different access points (cross-cutting themes, individual
strategies, etc.)
Logic and assumptions on growth
Divergent views on the nexus between growth, development and
poverty reduction
Growth patterns matter, and distinguish donors…
Inequality, distributional impacts US, EU, Ireland, France, Belgium Pro-poor growth Switzerland, South Korea, Germany Green growth / ecological considerations South Korea, Germany, Japan, US
…but not so much (entry points; aid exit, self-reliant
Logic and assumptions on private sector
Overall, private sector seen as engine of growth and dev’t
IN GENERAL: Private sector investment improved markets jobs increased incomes and revenue social programs TWO APPROACHES: Partnering with the private sector for development versus supporting or promoting private sector development or both BUT NEEDS different donor responses for each approach (form follows function!)
Supporting the private sector: how much and where?
Publicly available information lacking or incomplete Different ways of defining or reporting on private sector
and/or growth programming
Understates amount of public finance going to private sector
(but also let’s not overstate how much!)
IN SUM: Lack of consistent, comparable and accessible data
In general:
Macro – business enabling environment economic, legal and regulatory foundations, public financial
management
Meso – making markets work market failures, competitiveness, market integration Micro – investing in businesses and people technical and financial support, infrastructure, training, thriving
workforce, environmental sustainability
Looked at donor commitments and modalities
Analysis of donor commitments
Validated our findings in the “logic and assumptions” about
“promoting” and “partnering” approaches
Typology to better understand approaches – market solutions
to growth and to development
Ownership, environment, human rights, etc. development
“add-ons”
Voluntary international CSR instead of binding national
legislation
National legislation=enabling environment for business Managing for results completely absent
Analysis of modalities
Macro level National policy dialogues and planning Promotion of international CSR standards Meso level Reflect partnership priority through use of PPPs, challenge and
innovation funds
Linkages between national (donor) and domestic (developing
country) firms
Micro level Individual as employee, producer and consumer Skills building, access to finance tools, integration into value chains
Which private sector
Mixed, but strong bias in favour of own, especially for partnerships
Financial and development additionality (see over) Cross-cutting policies (gender, environment, labour)
Mixed implementation
International norms and standards
Mixed implementation; not well integrated
Aid effectiveness principles?
Unclear, but doesn’t look good Investing in markets vs. effective institutions Potential for fragmentation
Financial additionality
Contributions should fill a necessary gap Assess financial need Promote investment in risk averse markets Gauge leverage potential of investment Encourage eligibility that favours domestic markets Assess opportunity cost
Development additionality
Resources should work towards eradicating poverty Clearly specific development outcome requirements of partnerships More comprehensive and transparent indicators and monitoring
framework
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Broad distribution in Canada and globally Pick-up by various blogs and sites
Duncan Green and Perspectives in Development &
Evaluation
Attac, C4D, CONCORD, Development Gateway, Eurodad,
ITUC, RoA, SD Cite, UNESCO IFAP, ECDPM
Op-ed in Vancouver Sun, Calgary Herald, Panel at CASID
annual meeting in Victoria
Austrian Research Foundation for Int’l Dev’t and
Meeting with CIDA
NSI current/future areas of research
Private sector partnerships in development Canada, aid and the private sector Value and risks in private sector partnerships
CCIC current/future areas of research
CCIC historical overview Mapping membership in terms of PS engagement, lessons
learned, and best practices
Survey, terminology Potential tools
Shannon Kindorney Researcher The North-South Institute 55 Murray Street, Suite 500 Ottawa, Ontario Canada K1N 5M3 Tel.: (613) 244-3058 Fax: (613) 241-7435 Email/Courriel: skindornay@nsi-ins.ca Website: www.nsi-ins.ca The North-South Institute thanks the Canadian International Development Agency for its core grant and the International Development Research Centre for its program and institutional support grant to NSI.
Fraser Reilly-King Policy Analyst Canadian Council for International Co-operation 450 Rideau Street, Suite 200 Ottawa, Ontario Canada K1N 5Z4 Tel.: (613) 241-7007, ext. 306 Fax: (613) 241-5302 Email/Courriel: freillyking@ccic.ca Website: www.ccic.ca The Canadian Council for International Co-operation thanks the Canadian Partnership Program of the International Development Research Centre for its program and institutional support.