This sort of renegotiation creates a risk of breaking the initial commitment, changing rewards and risk allocation. Though theoretical economists would say that “in the long-term” renegotiation of incomplete contracts is unavoidable, PPP practitioners should do their best in order to avoid the need for renegotiation, while simultaneously preparing for renegotiation when it is the best solution in terms of public interest.
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Public-Private Partnerships (PPP): How can PPPs help deliver better services? New, free massive open online course (MOOC) course provides an understanding of the key principles of PPPs and the role of PPPs in the delivery of infrastructure services, particularly in emerging markets.
The World Bank Group’s twin goals of ending extreme poverty by 2030 and promoting shared prosperity can’t be achieved unless we see a huge boost in the quality and quantity of infrastructure services. Boost infrastructure and do it right and you can generate jobs and boost economic growth. Improving sanitation and access to clean water is essential to improve health outcomes.
According to World Bank President Jim Yong Kim, “Today, the developing world spends about $1 trillion on infrastructure, and only a small share of those projects involves private actors. Overall, private investments and public-private partnerships in developing countries totaled $150 billion in 2013, down from $186 billion in 2012. So it will take the commitment of all of us to help low- and middle-income countries bridge the massive infrastructure divide.”
Public-private partnerships (PPPs) can be an important way for governments to help supplement the role of the public sector in meeting the infrastructure deficit. But PPPs are controversial – there have been some high profile, expensive failures, and some stakeholders feel the private sector should not be involved in providing basic infrastructure services like water.
Building trust between citizens and governments is crucial to successfully address, in a collaborative and engaged manner, many of the issues that affect the everyday lives of citizens, like corruption, government inefficiency and lack of service delivery.
Recent data, however, has shown that .
In fact the 2015 Edelman Trust Barometer stated that the number of “truster countries” are at an all-time low, reflecting a general decline of people’s trust in institutions of governments, NGOs, business and media.
The Middle East and North Africa (MENA) is a rising middle-income region, and its citizens rightly expect quality public services. Yet too often they experience disappointment: students attending local schools are insufficiently prepared for the 21st century economy, and those needing health care too often find public clinics with no doctors or medicines.
Few in positions of authority are held accountable for such shortcomings. This situation both undermines the potential for improvement and heightens people’s unhappiness with the delivery system.
These are some of the views and reports relevant to our readers that caught our attention this week.
Tomorrow’s world: seven development megatrends challenging NGOs
As we move into 2015, many UK-based NGOs are wondering how to meet the challenges of a crucial year. What is the unique and distinct value that each organisation, and the UK sector as a whole, brings to international development, and how might this change in future? To help the sector get on the front foot we have identified seven “megatrends” and posed a few questions to highlight some of the key choices NGOs might need to make. At the end of next week we’ll be concluding a consultation with DfID on the future of the sector – all your thoughts are welcome.
Why emerging markets need smart internet policies
The Alliance for Affordable Internet (A4AI) has released its latest study into, well, the affordability of internet access. The study shows how big the challenge is on that front in emerging markets – for over two billion people there, fixed-line broadband costs on average 40 percent of their monthly income, and mobile broadband costs on average 10 percent of their monthly income. The United Nations’ “affordability target” for internet access is five percent of monthly income, so there’s clearly a ways to go in many developing countries. Almost 60 percent of global households are still unconnected and, unsurprisingly, those who can’t afford to get online tend to be poor, in rural communities and/or women.
For its tenth anniversary, the Mobile World Congress had more than 2,100 companies showcasing their innovations in front of record-breaking audiences: over 93,000 attendees from 200 countries.
The GSM Association (GSMA) also hosted a seminar program to educate conference participants on industry initiatives such as Connected Women programme: a timely undertaking that promotes gender diversity in the telecommunications sector.
Mobile identity offers a means of extending access to a vast array of services, such as mobile banking and mobile health, to everyone, particularly those who have been previously marginalized, including women and those living in poverty. The ability to get an identity that is verifiable online is a transformational capability that can grant access to banking, mobile payments and healthcare, as well as transportation and other advanced identity-based digital services.
At the most fundamental level, the planning and delivery of economic and social support programs relies on the government’s knowledge of its citizens: who they are, where they live, their social and economic circumstances, and so on. Utilizing mobile devices to register and validate an identity offers a compelling opportunity for governments and businesses to authenticate and then provide access to a broad range of digital services.
But today, with 17 goals and 169 targets, the SDGs are a big mouthful for the global development community to chew on, let alone to digest. Some see a risk that they will be simply unimplementable.
However, the problem becomes a little more manageable if we reflect on the means towards the goals. Not all of the goals are unrelated. Measures towards some targets can open up new ways to achieve others.
Consider, for example, target 16.9: By 2030, provide legal identity for all, including birth registration. These are actually two different, though related, targets as explained in the recent working paper by the Center for Global Development. Regardless the modalities to achieve it, the recognition of legal identity – together with its associated rights – is becoming a priority for governments around the world. Although there is no one model for providing legal identity, this SDG would urge states to ensure that all have free or low-cost access to widely accepted, robust identity credentials.
With legal identity – including name, nationality and recognized family relationships – one of the basic human rights set out in the Declaration of Human Rights and the Convention on the Rights of the Child can be achieved and target 16.9 can stand on its own merits.
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Our Top Ten blog posts by readership in 2014.
This post was originally posted on January 08, 2014
Inspired by Jeremy Adelman’s wonderful biography of Albert Hirschman (Worldly Philosopher: The Odyssey of Albert O. Hirschman, Princeton University Press, 2013), I’ve read and reread Hirschman’s masterpiece, Exit, Voice and Loyalty: Responses to Decline in Firms, Organizations, and States, (Harvard University Press, 1970) and his follow up essay “Exit, Voice, and State” (reprinted in The Essential Hirschman, Princeton University Press, 2013). Although Hirschman produced these works over 40 years ago, his simple model of flight (“exit”) or resistance (“voice”) in the face of unsatisfactory economic, political or social conditions remains highly relevant for policymakers and development practitioners concerned with eliminating extreme poverty, reducing inequality, and improving basic services accessible to the poor.
Hirschman’s ideas provide much cause for reflection within the context of present-day Indonesia. Indonesia has enjoyed over a decade of macroeconomic stability and economic growth. From 2000 to 2011 GDP expanded by 5.3 percent per year, and the official poverty count halved from 24 percent in 1999 to 12 percent in 2012. This period also saw notable improvements in health and education. Access to education has become more widespread and equitable. Girls are now as likely as boys to graduate from secondary school. In health, Indonesia is on track to meet Millennium Development Goals for reducing both the prevalence of underweight children under five years old, and the under-five mortality rate.
To maintain current growth rates and meet demands for infrastructure, developing countries will require an additional investment of at least an estimated US$1 trillion a year through 2020. In the Mashreq countries, the required infrastructure investment for electricity alone is estimated at US$ 130 billion by 2020, and an additional US$108 billion by 2030.
Public procurement is not among the most popular topics in development circles. However, consider just these three ways in which procurement is probably one of the most indispensable elements that make up a truly capable state:
First, without effective procurement, hospitals wait for drugs, teachers for textbooks, and cities for roads. Whenever a news item surfaces about drugs shortages in hospitals, schools without textbooks or failing road networks, the reader may be looking at a procurement problem. Without efficient procurement, money gets wasted on a very large scale. Many developing countries channel significant proportions of their budgets through the procurement system – even marginal savings can add up very fast. Third, public procurement is a part of the government that citizens see every day. Lack of transparency and corruption in procurement directly affects citizens, and the losses to corruption are estimated in the billions of dollars every year. Corruption in procurement is a big problem that affects rich countries as well.