Transcript Title of presentation to go here - CCIC

Presentation to IDRC
February 22nd, 2013
Presentation Outline
 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?
Introduction
 Increasing focus on the private sector by OECD-DAC
donors

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
Methodology
 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.
Methodology (cont.)
 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
Methodology (cont.)
 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’
engagement
Overview of donor strategies
 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.)
Overview of donor strategies (cont.)
 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


Pro-poor growth


US, EU, Ireland, France, Belgium
Switzerland, South Korea, Germany
Green growth / ecological considerations

South Korea, Germany, Japan, US
 …but not so much (entry points; aid exit, self-reliant
state)
Overview of donor strategies (cont.)
 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!)
Overview of donor strategies (cont.)
 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
Modalities for engaging with the PS
 In general:
 Macro – business enabling environment


Meso – making markets work


economic, legal and regulatory foundations, public financial
management
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
Modalities for engaging with the PS
 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
Modalities for engaging with the PS
 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

Implementation considerations
 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
Implementation considerations
 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

Recommendations
1.
2.
3.
4.
5.
6.
Enhance tracking, disclosure and comparability of
PS funding
Deepen and strengthen implementation of AE
principles
Support democratic ownership of agenda
Develop common criteria for assessing which
private sector to engage, including on PPPs
Establish indicators to ensure financial
additionality and a monitoring framework
Demonstrate clear development additionality
Future research
Broader scoping of the range of financing tools
donors are using to engage the private sector in
development
2. How donor policies are being implemented in
practice
3. Impact of these interventions
4. South-South cooperation and triangular
cooperation in support of this
1.
Knowledge mobilization
 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
Canadian Journal of Development Studies
 Meeting with CIDA
What next?
 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
Thank you!
Fraser Reilly-King
Policy Analyst
Shannon Kindorney
Researcher
Canadian Council for International Co-operation
450 Rideau Street, Suite 200
Ottawa, Ontario Canada
K1N 5Z4
The North-South Institute
55 Murray Street, Suite 500
Ottawa, Ontario Canada
K1N 5M3
Tel.: (613) 241-7007, ext. 306
Fax: (613) 241-5302
Email/Courriel: [email protected]
Website: www.ccic.ca
Tel.: (613) 244-3058
Fax: (613) 241-7435
Email/Courriel: [email protected]
Website: www.nsi-ins.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.
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.