1 / 7

Principles for Public-Private Partnerships: Towards Sustainability?

This article explores the challenges and lessons from case studies on public-private partnerships (PPPs) in the SAGCOT agricultural corridor, healthcare in Lesotho, and Better Factories Cambodia. It discusses the need for smart use of aid and public funding, leveraging private finance and investments, and the criteria and principles to ensure more developmental private sector engagement. The article also highlights the importance of compliance, balancing dual objectives, and transparency in PPPs.

normana
Download Presentation

Principles for Public-Private Partnerships: Towards Sustainability?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Principles for public-private partnerships – towards sustainability? Lessons from SAGCOT, healthcare in Lesotho, and Better Factories Cambodia ecdpm.org/dp194 Sebastian Grosse-Puppendahl Trade, Investment and Finance Programme 06 February 2018

  2. 1. Context Growing recognition that challenges are multi-faceted & complex, requiring collaborative, multi-stakeholder alliances betweenallsectors of society → public-private partnerships • Need for smart use of aid & public funding • Increasing focus on leveraging private finance and investments → e.g. EU External Investment Plan, OECD Blended Finance principles • majority of bi-/multilateral donors have PSE programmes 4 SDGs → economic growth, job creation & market development key factors in most donors’ support to developing countries → PSE/economic growth focus reflected in institutional set-up • criteria / principles to ensure more ‘developmental’ private sector engagement (PSE) ecdpm.org/dp194

  3. 2. Public-Private partnerships (PPPs) • PPPs implemented through wide range of departments (i.e. development, trade, DFIs etc.) & diverse definitions, categories • ‘Successful’ partnership → beyond private returns (financial viability), public returns key to ensure social, political & environmental sustainability • Challenge: balancing dual objectives!! Country bias: commercial interest → developed/stable markets BUT developmental needs more in poor/fragile countries e.g. 60% of PPP investments targeted to UMICs • However, more development principles/sustainability criteria in place governing PSE programmes (e.g. CAFOD et al. work) → reflects degree of convergence on appropriate PS behaviour → challenges remain! compliance & enforcement • To ensure compliance, donors must strike the right balance between legally binding regulations & softer measures → business incentives for voluntary principles vs. effectiveness ecdpm.org/dp194

  4. 3. Case study on agriculture: Southern Agricultural Growth Corridor of Tanzania (SAGCOT) • Interesting case: massive scale in terms of finance and geographical area → important lessons for other PPP frameworks / future PPPs • WEF flagship, mainly business-drivenpartnership, determining / influencingpower dynamics among differentstakeholders • Regional in nature → geographical area • Holistic approach, SAGCOT tries toaddress various gaps/issues, such as: • engaging local farmers, • raising overall agriculturalproductivity, thus contributing tobroader economic transformation and decreasing (rural) poverty, • increasing job creation, and • improving regional coordination towards food security/market dev • ensuring environmental sustainability ecdpm.org/dp194

  5. 3.1 Case study on agriculture: SAGCOT SAGCOT objectives and principles to achieve fair & inclusive Agricultural Green Growth • However: • Translation of policy (e.g. Greenprint) to practice? • Different actors, different language (e.g. incl, sust invest) → reports: environmental/social objectives controversial or at risk → Need for closer monitoring/independent assessment & review • Sustainable development principles → no mention of financial sustainability & demand for such investments • Conflicting interests → national/local elites & overall business environment constraints as negative factors for PPP to develop → Land conflicts, land management, land use: direct (negative) impact on PPP rather than positive one on FDI ecdpm.org/dp194

  6. 4. Conclusion Two concerns raised most frequently regarding development PPPs: → additionality & transparency • defining, ensuring, measuring additional impact due to public finance • availability of reliable information on the negotiation, the design, the implementation and the results of PPPs Analysis reflects wide & widening definition of PPPs + lack of data!!→ 2 basic questions for evaluating PPPs’ success & sustainability • Is the PPP the best tool to address the identified needs in a specific context, in comparison to the alternative options? • Does the PPP deliver what it promised to deliver? • Need to better understand the distribution of costs and benefits → greater transparency required based on available data → underlying PPP design to reflect likely power imbalances between powerful MNEs, smallholders & public sector in weak environments ecdpm.org/dp194

  7. Thank you! sgp@ecdpm.org | @SebGroPupecdpm.org/dp194 www.ecdpm.org European Centre for Development Policy Management

More Related