I spent a great couple of days earlier this week with representatives of civil society organizations (CSOs) from around the world who are members of our World Bank – Civil Society Consultative Group on Health, Nutrition, and Population. When it was launched earlier this year, we envisioned the consultative group as a forum for CSOs and our Bank-wide health team to share perspectives and discuss frankly any concerns we may have about our respective work in health, nutrition, and population, and to learn from one another. So it’s exciting to see this group beginning to move from theory to action.
I was at the Climate Investment Funds meetings in Cape Town last week with several other representatives from development banks, NGOs and governments to discuss results, impacts and the future of this financial mechanism. One of many themes cutting across meetings in Cape Town was the importance and challenge of engaging the private sector in climate finance. The private sector is by far the largest source of investment, the dominant provider of technology, and often essential for implementation of mitigation and adaptation measures. However, based on the discussions this week, it’s apparent there is much to learn about what is actually expected or sought from the business community. Here are some of my observations from the meeting:
- In my experience references to “the” private sector are common but largely meaningless and often confusing in failing to distinguish between entities as different as major multinational manufacturers, international financiers, and locally- based entrepreneurs. Some speakers even used the term more broadly to encompass markets, including policies directed at consumers.
- There are some unavoidable tensions between emphasizing country plans and priorities and the promotion of markets for climate-friendly products and services. This is particularly true in smaller and poorer countries. Control of donor resources is fundamental for many governments but sometimes difficult to reconcile with the flexibility, consistency, and speed required by investors. Public-private partnerships (the focus of a Cape Town session) is one solution but not always appropriate or workable. Finding models which can blend the two, as in the collaborative IFC/World Bank Lighting Africa project, will be increasingly important. The World Bank was able to build a relationship with energy ministries while IFC focused on helping businesses. Together, they have been able to address a wide range of issues from regulatory systems to that of supply chain development.
The government of Madagascar had asked for assistance in boosting economic activity, creating jobs, and reducing poverty in three key regional centers: Antananarivo-Antsirabe; Nosy Be; and Taolagnaro (Fort Dauphin).
The Port Reform Toolkit provides policymakers and practitioners with effective decision support in undertaking sustainable and well-considered reforms of public institutions that provide, direct, and regulate port services in developing countries. In particular the purpose of the Toolkit is to provide public officials with support in:
"It is true that economic and social objectives have long been seen as distinct and often competing. But this is a false dichotomy; it represents an increasingly obsolete perspective in a world of open, knowledge-based competition. Companies do not function in isolation from the society around them."
Please, hold the door, the Carrotmob is coming. If you are among the un-indoctrinated, please allow me to introduce you to the Carrotmob. “Carrotmob is a type of consumer activism in which businesses compete at how socially responsible they can be, and then a network of consumers spends money to support whichever business makes the strongest offer.” According to Brian Byrnes, regular contributor to CNN.com and author of “Argentine 'Carrotmob' stick up for green business” they are a “global movement that is built on the 'carrot-or-the-stick' concept. Carrotmob rewards -- rather than punishes -- small businesses for employing sustainable practices. Essentially, a Carrotmob is the opposite of a boycott.” Although the Carrotmob operates in the commercial sphere, they are working to increase, so called, public goods with other stakeholders in their community. Activities like those undertaken by the Carrotmob are an example of creative coalition building and help to begin to address one of the challenges of fostering a collective identity, maintaining both internal and external political efficacy.
- The World Region
- zero-sum game
- shared value
- SF Energy Watch
- private sector
- prisoners dilemma
- Political Efficacy
- michael Porter
- Mark Kramer
- Margaret Mead
- Harvard Business Review
- expand the pie
- environmental issues
- Competitive Advantage of Corporate Philanthropy
- commercial sphere
- Collective Identity
- Brian Byrnes
- Brent Schulkin
I couldn’t have been further away from Sudan last week - sipping fine green tea in a London private members’ club - but Sudan was one topic of conversation. I stumbled upon an organisation about to set up a development bank in the South of the country and, with a keen understanding of the operational environment, the focus will be on microfinance. Our discussion was just one of many I have had lately about the crucial role business plays in development and as I dip my toe (or ear) into the world of development communications, I meet more and more people who (like me) have Ashraf Ghani and Clare Lockhart’s cherished book “Fixing Failed States” tucked into their coats. Paddy Doherty of the above-mentioned development bank sums it up simply - “profitability ensures sustainability”.
This past Sunday, at an event co-hosted by the Hüsnü M. Özyegin Foundation, global business leaders came together to discuss the impacts of the ongoing economic crisis on women. The event culminated in the announcement of several new partnerships to support women around the world.
Highlights of the new partnerships and initiatives announced at the event include:
- The Özyegin Foundation and Goldman Sachs will expand the Goldman Sachs 10,000 Women program to Turkey.
- Boeing announced Forum member efforts to track and spend $2 billion over the next three years on goods and services from women-owned businesses in supply chains.
- Belcorp announced a partnership with the World Bank to train 50,000 women in financial literacy in Latin America.
- McKinsey presented their new research, “The Business of Empowering Women,” which maps out potential business sector contributions across women’s life cycles.
|An IFC investment helps provide clean, affordable water to underserved communities in developing countries.|
Many of the measures proposed in the World Development Report (WDR) 2010 will require substantial engagement with the private sector. The UN Framework Convention on Climate Change has estimated that more than 80 percent of the investment required for climate change mitigation and adaptation will have to be privately financed. For this to happen, the key requirement will be meaningful targets and supportive public policies.
One area in which private initiative will be critical is in the development and dissemination of new climate friendly technology. As the advance edition of the WDR states, "Technological innovation and its associated institutional adjustments are key to managing climate change at reasonable cost. . . . Mobilizing technology and fostering innovation on an adequate scale will require that countries not only cooperate and pool their resources but also craft domestic policies that promote a supportive knowledge infrastructure and business environment."
For several reasons, an increased focus on accelerating new technology is urgently needed.
From now on, there will be need to be a more nuanced relationship between public and private sectors to sustain growth, and regional sources of growth will become more diversified. These are two of the conclusions of MIGA's discussion panel on the post crisis outlook held on October 4 in Istanbul.
A panel of international experts, including the Colombian Minister of Finance Mr. Oscar Ivan Zuluage, MIGA's Executive Vice-President Izumi Kobayashi, and Nick Rouse, Managing Director of Frontier Markets Fund Managers, agreed on some aspects of the vision going forward, but had differing views on others.
Taking on a more proactive, energetic role, public authorities worldwide have played a large role in limiting the downside of last year's financial crisis, they agreed. In Eastern Europe and Central Asia, the International Financial Institutions Initiative (in which MIGA participated) to support recapitalization of these countries' banks drew mention as one example of this type of successful multilateral intervention.