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Microeconomics

One question, eight experts, part two: Fernando Crespo Diu

Fernando Crespo Diu's picture

To gain a better understanding of how innovation in public-private partnerships (PPPs) builds on genuine learning, we reached out to PPP infrastructure experts around the world, posing the same question to each. Their honest answers redefine what works — and provide new insights into the PPP process. This is the question we posed: How can mistakes be absorbed into the learning process, and when can failure function as a step toward a PPP’s long-term success?

Our second response in this eight-part series comes from Fernando Crespo Diu, Director of UTAP, the Portuguese PPP unit.

Although not a desirable outcome, failure is always the first step of the learning process toward more successful projects, in terms of implementation, value for money, and financial and fiscal sustainability. There is an enabling prerequisite for the learning process, particularly given the complexity and long duration of PPP arrangements: the establishment of institutional arrangements that provide stable, professional and fully dedicated teams of experts within the structures of the public sector.

A central PPP unit — ideally located in the Ministry of Finance — should participate in all stages of a project lifecycle, from structuring to contract management, allowing continuous feedback and dialogue between contract management and public teams. In such an environment, the role of external advisors has to be carefully planned, as they provide key skills along the project lifecycle, but must not substitute those tasks where knowledge must be developed, stored and used by the public sector.

'I Explained It to My Daughter, and She Understood'

Tom Grubisich's picture

If Sergio Margulis didn't grow up to be an environmental economist, he could have, no doubt, become an equally successful stand-up comic.  Who else could get some laughs when trying to explain the econometrics of climate-change adaptation?

The occasion was the recent World Bank-sponsored panel discussion on the draft report "The Costs to Developing Countries of Adapting to Climate Change," of which Margulis was co-author.  Of course, Margulis' primary intention wasn't to get his audience to laugh, but to understand a complex but increasingly important issue that's going to occupy global attention for perhaps the rest of the century as developing and developed countries try to put a ceiling on more global warming.

Margulis, Lead Environmental Economist with the World Bank's Environment Department, was joined at the panel by report co-author Urvashi Narain, Senior Environmental Economist at the World Bank; Otaviano Canuto, Vice President and Head of the Poverty Reduction and Economic Management (PREM) Network at the World Bank, and Warren Evans, Director of the World Bank's Environment Department, who moderated the standing-room-only event.

Here's the video of the discussion.  (Sorry we couldn't embed it.)