Planned Commission Communication on the role of the Private Sector

in Development

A contribution to the reflexion on

How to Innovate International Cooperation

Milan - 6 december 2013

Gabin Hamann, Head of SectorPrivate Sector Development, Trade and Regional IntegrationEuropean Commission DG DEVCO - EuropeAid

EuropeAid

Finding a common language: Terms and definitions in EU support to private sector development and engagement

Global policy context of the proposed Communication

Objectives of the Communication

Timeline and next steps

Issues and questions for consultation

AGENDA

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EuropeAid

Companies Donors,Public Sector

Finding a common language…

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Private-Public Dialogue

Blending

Private sector development support

Private-Public Collaboration

PPPs

Development Partnerships /

challenge funds

Multi-stakeholder

alliances

Private sector engagement for

development

Private sector

trade and investment

EuropeAid

Finding a common language…

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Companies

Donors,Public Sector

Multi-stakeholder

alliances

Civil Society Organisations

Watchdog of industry

Providing expertise on local situation

Implementation partner

EuropeAid

Global policy context of the proposed Communication

Agenda for Change: Calls for making the private sector a main partner in development Aims for greater use of blending to mobilise private capital Strengthening private-public collaboration in other sectors

(e.g. energy, agriculture, infrastructure)

Busan HLF on Aid Effectiveness: Recognizes central role of the private sector in development and

encourages closer private-public engagement for development.

Post-2015 global agenda and Rio+20 (SDGs): Private sector as main partner in developing and implementing

post-2015 agenda. Role of private sector in transition to a green economy.

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EuropeAid

Update the EU Private Sector Development support strategy ;

Explore ways to enhance the effectiveness of EU PSD support though closer engagement with the private sector and based on recommendations from EU PSD evaluation;

Explore the value-added of a framework for structured dialogue and coordinated EU action with private sector on development issues (e.g. European platform for PS engagement);

Identify opportunities and approaches for private-public collaboration in sectors such as energy, infrastructure and agriculture;

Identify ways to use EU blending mechanisms to support local private sector development and mobilize private sector funding for development;

Elaborate on role of the private sector in a post-2015 framework.

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Objectives of the communication

EuropeAid

Timeline

Oct.2013: Approval from Secretary General and inclusion of roadmap in 2014 agenda planning of Commission

Nov. 2013: First stakeholder consultations with • Member States and non-EU donors• Private Sector (BDI, informal dialogue with business);• EDD (brainstorming session on Communication)• CSOs (Policy Forum on Development)• DEVCO internal and Inter-Service Consultation groups

Dec. 2013 - March 2014: Consultations in EU and partner countries

March 2014: Submission of final draft to Inter-Service Consultation

April2014: Adoption by College

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EuropeAid

Issues for consultation - Policy forum, Brux 28/11

Issue 1: EU support to local private sector development

What should be future priorities of EU PSD support?

How to support micro-enterprises and workers in the informal sector?

Issue 2: The role of the European private sector in development

What can the European private sector do to contribute to inclusive and sustainable growth in developing countries?

Should the EU engage with the European private sector to increase its impact on development? If so, in what form?

What are the risks of engaging with the private sector, and what principles have to applied to manage these risks?

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EuropeAid

Issues for consultation (continued)

Issue 3: Introducing a people-centered and rights-based approach

What instruments exist and should be promoted to implement such an approach?

Should companies be part of the post-2015 framework, and what should be their role and responsibility?

Issue 4: Enhancing dialogue with the private sector

Should more private sector actors be represented in the EU's structured dialogue with CSOs? (EU and partner countries)?

Should the EU establish separate mechanisms for dialogue with the private sector? Should NGOs be included? For what purpose?

Do you have good or bad examples of country-level private public or multi-stakeholder (policy) dialogue?

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EuropeAid

Issues for consultation (continued)

Issue 5: The private sector as “delivery channel” for development

What risks and opportunities do you see in the private provision of public goods and services (like energy, transport, health)?

How and when can multi-stakeholder alliances be an effective model for the private provision of goods and services to the poor?

Do you see risks in creating, wherever possible, opportunities for local private sector in EU sectoral programmes (e.g. agriculture, health, environment, employment)?

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EuropeAid

Short feed back from the discussion

• . Business enabling improvement is key • . Support Public-private dialogue, inclusive, include social partners

including at country level is key• . High expectation in relation to a right based approach in relation to

business and PSD, • . PS has to stick to aid effectiveness principles (ownership,

transparency, accountability …)• . Impact assessment is important: have to know what works and not• . Blending and ppp balance positive and negative aspect• . Go further than minimal international standards• . Support decent employment• . Potential of cooperatives and social enterprises• . Potential of value chains and (fair) trade • . Concentrate on high impact (in terms of job) sectors

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EuropeAid

EDD 26/27 - Multistakeholder partnerships: CSOs & Private Sector, joint agents for change?

• Cross-sector collaboration for development cooperation is rapidly increasing

• Inclusive growth, economic as well social, starts with a bottom up approach

Recommendations for successful partnerships:

• Openness and trust are key for success- motives should be well identified before starting any interaction

• Based on their motives and on their skills, the actors of a partnership can adopt different roles, which should also be well identified to avoid a blurring of identities.

• Keeping the various roles distinct would be a way to overcome the risk of drifting towards practices that would not comply with the original mindset.

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EuropeAid

Conclusions of the round table discussions

• Key factor : trust building

• Money channelled through private sector to be additional

• CSOs natural interlocutors/intermediaries for private sector. Area of cooperation, rather than competition.

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Thank you!

Would you like to further contribute in writing?Please send submissions to EUROPEAID-C4@ec.europa.eu.

Unit C4 - Private Sector Development, Trade, Regional IntegrationEuropean Commission, DG DEVCO – EuropeAid

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