Private Sector and development: a global responsibility?

Transcription

1 Private Sector and development: a global responsibility? - the EU Communication on the role of Private sector and Development - The conclusions of the Foreign Affairs Council - Points of Departure of Concord Europe - Key issues to be taken care of - The way forward

2 Private Sector and development: a - Ad Ooms global responsibility? - Chair of Taskforce on Private Sector and Development Concord Europe - Senior accountmanager European Union at ICCO Cooperation, The Netherlands, - Download ICCOnomics, an e-book on doing business the right way

3 Communication on the Role of the Private Sector in Development

4 EuropeAid Why a Communication on the role of the private sector in development? The new EU development vision ('Agenda for Change') calls for making the private sector a partner in development cooperation. The Communication formulates in more operational terms how this can be achieved. The EU committed at the Busan High-Level Forum on Aid Effectiveness to more effective public-private collaboration for development. The Communication follows up on this commitment. The last Communication on the private sector dates back to The new Communication updates our private sector development strategy in light of a changing world. The private sector plays a central role in many areas of EU development cooperation. The Communication provides a strategic framework for mainstreaming private sector development and engagement across sectors. Interactions between donors and the private sector have intensified and became more complex. The new Communication defines principles and criteria to guide the EU s engagement with the private sector. 4

5 EuropeAid Stakeholder consultations (Oct March 2014) EU Member States: EU Expert Group meetings; national events; CODEV meetings European Private Sector: General and sectoral dialogue; meetings with associations, companies Civil Society / NGOs: EESC Exploratory Opinion; Policy Forum with CSOs and LAs; consultation meeting with CSOs and private sector; EDD side event Partner countries: Regional consultation events in Uganda, Cameroon, South Africa; 28 national consultations at EU Delegations in Africa, Asia, Latin America. Approx. 200 written contributions from Member States, International Organisations, private sector, NGOs, individual experts, partner countries and EU Delegations. Consultations report available at documents/psd-consultation-report-may-2014_en.pdf 5

6 EuropeAid Proposed principles for strengthening the role of the private sector in EU development cooperation 6

7 EuropeAid Actions on PSD and PSE 7

8 EuropeAid Tools for implementation 8

9 EuropeAid Council Conclusions on the Communication (ii) On 12December 2014: 2nd set of Council Conclusions under Italian Presidency. "Council conclusions on a stronger role of the private sector in development cooperation: An action oriented perspective" Focus on: (a) endorsement of the principles and the criteria for direct support to the private sector proposed by the Commission; (b) use of innovative financial instruments and mechanisms (like blending); (c) structured dialogue with the private sector and inclusive business models; (d) corporate social responsibility; (e) further coordination among the EU and its MS, including programs of financial institutions in supporting private sector development and engagement 10

10 EuropeAid The way forward EU framework of principles and criteria Work with Member States on common framework of principles and criteria for private sector development support and partnerships. Implementation of actions Private sector development support objectives and priorities integrated in EU programmes of period Actions and private sector dialogue in field of sustainable energy, agriculture, infrastructure and green sectors implemented jointly with respective thematic units. Further work with Financing Institutions and Member States on development of EU blending facilities. 11

11 Points of departure Concord Europe - EU support to and cooperation with private sector must contribute to fighting poverty and inequalities, promoting human rights, sustainable development and economic justice. - Economic growth and job creation alone is not enough. Development is aimed at eradication of poverty and to contribute to a world where people can live in justice and dignity. - development impact, not financial gain or just economic, should be the guiding principle - CONCORD believes that when public money is used, it should be used to serve public goals and objectives, and should be controlled by public means.

12 Key Issues: A clear framework of principles - It is critical to ensure that the private sector s contribution to development is fully integrated into the development effectiveness approach. - The EU should prioritize to design a specific EU framework setting out key principles and benchmarks for the private sector s engagement in development co-operation. - Such framework should ensure a proper adherence to social, environmental, fiscal, human rights, and transparency and accountability standards as a precondition for support to private sector actors in development.

13 Key Issues: due diligence procedures for screening private sector - The EU should ensure the development of due diligence procedures for screening private sector companies seeking to benefit directly or indirectly from public support. - The EU has responsibility to ensure that these companies meet a number of minimum standards in areas such as human rights, environmental impact, labor conditions and others - compliance with these standards needs to be monitored and met throughout the whole life cycle of projects

14 Key Issues: financing modalities for supporting the role of the private sector - PPPs are not a solution to be applied across all development contexts - Blending grants and loans must still prove its financial and development additionally, it should also free additional money. - We have serious concerns with regards to using limited ODA resources for blending and private finance leveraging mechanisms. - We should preserve the role of ODA as a unique public, predictable, counter-cyclical source of finance for developing countries aiming at improving the lives of people living in poverty.

15 Key Issues: the economic transformation of developing countries requires policy coherence - CONCORD calls the EU to ensure that its policy framework only supports positive behavior of the European companies operating in developing countries and that its public and investment policies are coherent with the objectives of development cooperation. - Especially need to tackle tax evasion and illicit financial flows - Developing countries not only need financial support, but also policy space to nurture the private sector and to harness its development potential (by local, multicountry or regional interventions)

16 Key Issues: implementation guidelines and an action plan - the EU should develop implementation guidelines and an action plan with timelines setting out how it intends to implement the policies and actions outlined in in the Communication on the role of the private sector in development and the council conclusions following it. - more guidance is needed with regards to Private Public Partnerships and in general, the use of public finance to mobilise private flows - including the blending of loans and grants to make sure that these modalities are aligned with development effectiveness principles, contribute to the objectives of inclusive and sustainable development and poverty reduction and are implemented in a transparent and fully accountable way.

17 The way forward: a structural multistakeholder Dialogue On 3 October 2014 CONCORD facilitated a sharing and learning session on cooperation and partnerships models of CSO s, Cooperatives and private sector actors. Key messages identified were: - Profit making can be an element, but is not the most important aspect of a partnership, mutual trust between the partners is crucial - Goals should be well defined and reflect long term needs and sustainability of the actions, - Private sector partners need to align their business to the common goals - Community gains should be clear and strict environmental, social and governance criteria should be fulfilled

18 The way forward: a structural multistakeholder Dialogue CONCORD believes in the value added off setting up structural dialogue platform on European, sectoral and regional level, but only if it is not a dialogue for dialogue, but a genuine dialogue between partners and stakeholders to contribute to concrete steps in the way to eradicate poverty and increasing development impact Participation and a real involvement of the population targeted in such a dialogue is a must.

19 The way forward: implications for NGO s, threats or opportunities? - Development not an unique area for NGO s - Less money for NGO s? - Changing and additional roles for NGO s - NGO s have to reflect on their role and added value - -it s no more business as usual