Presentation at Camões Anna Rosengren and Bruce Byiers European Centre for Development Policy Management Lisbon, 25 March 2014

1. 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

2. • 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
Page 2ECDPM

3. ECDPM Page 3

4. • 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
Three related but distinct
agendas :
ECDPM Page 4

5. 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…..
ECDPM Page 5

6. • 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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7. • 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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8. • Donor-led models
• Coalition models
• Business models
• Business-CSO models
• CSO-led models
Partnership models
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9. Mandate and motivation for actors
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10. • 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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11. 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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12. • 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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13. • 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
ECDPM Page 13

14. • 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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15. Thank you
www.ecdpm.org
www.slideshare.net/ecdpm
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