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 Sector
Private Sector Development, Trade and Regional Integration
European Commission DG DEVCO - EuropeAid
EuropeAid
AGENDA
 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
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EuropeAid
Finding a common language…
Private sector
engagement for
development
Multistakeholder
alliances
Private sector
development
support
Development
Partnerships /
challenge funds
Private-Public
Dialogue
Blending
Private
sector
trade and
investment
PPPs
Donors,
Public Sector
Companies
Private-Public Collaboration
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EuropeAid
Finding a common
language…
Civil Society
Organisations
Watchdog of industry
Implementation
partner
Multistakeholder
alliances
Donors,
Public Sector
Providing expertise
on local situation
Companies
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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
Objectives of the communication
 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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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
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• . Concentrate on high impact (in terms of job) sectors
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 Integration
European Commission, DG DEVCO – EuropeAid
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