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Private Sector Development

Why collaborate? Three frameworks to understand business-NGO partnerships

Kerina Wang's picture

Nowadays, forming strategic alliances across sectors has become the new operating norm. But the blurring of sectoral boundaries among governments, businesses and NGOs makes it increasingly difficult to assess functions traditionally performed by a certain sector, since conventional boundaries have dissolved, and power and influence are distributed in networks. One sub-set of such collaborations – business-NGO interactions – has attracted much attention, as NGOs begin to move away from their informal, social roles and venture into economic and political territories.

Business-NGO collaborations may come in many forms: NGOs could partner with firms to function as “civil regulators”, primarily by addressing market and government failures through the development of soft laws, social standards, certification schemes, and operating norms; leverage social capital to transfer localized institutional knowledge to firms; mobilize collective action between governments and firms; and serve as information brokers to connect otherwise disparate groups.

How do we assess business-NGO dynamics? Why are they are established? And in what forms are they governed? I source a few inspirations from business, political science, and public administration theories and offer three theoretical lenses through which we can examine business-NGO partnerships.

Is the (Developing) World Ready for the New Container Weight Regulations?

Perikilis Saragiotis's picture
A major change in the way containers’ weight is measured and certified, is fast approaching. As of July 1, 2016, all shipping containers will be required to verify their gross mass before they can be loaded onto a vessel. Previously, shippers could accept weight estimates, but now shippers are responsible for weighing cargo, prior to loading.

Firing up Myanmar’s economy through private sector growth

Sjamsu Rahardja's picture
Workers at a garment factory
Myanmar’s reintegration into the global economy presents it with a unique opportunity to leverage private sector growth to reduce poverty, share prosperity and sustain the nationwide peace process.
 
For much of its post-independence period, Myanmar’s once vibrant entrepreneurialism and private sector was stifled by economic isolation, state control, and a system which promoted crony capitalism in the form of preferential access to markets and goods, especially in the exploitation of natural resources. Reflecting this legacy, private sector firms are still burdened with onerous regulations and high costs, dragging down their competitiveness and reducing growth prospects.
 

Real-time data as an early warning signal

Fida Rana's picture

The risks inherent in public-private partnerships (PPPs) are real. These long-term projects require substantial investment: typically, PPP project funding structures constitute 70 to 80 percent debt, with the remaining coming from equity sources. Because of the nature of these projects, their loan repayment profile demands a longer tenor. In a practical sense, once lenders start disbursing funds to a PPP, the loans could remain on their balance sheet for around 20 years. This is a typical scenario.

For such prolonged engagement in PPP projects, lenders’ ability to monitor the project during the construction and operation phase becomes critical. The approach to monitoring we’ve been offered so far serves its purpose up to a point, but promising developments in real-time data monitoring have the potential to serve as effective early warning signals—assuring the success of a PPP in ways that could revolutionize certain sectors.

4 game-changing public-private partnership training tips

Michael Opagi's picture
 

Most public-private partnership (PPP) trainings open with speakers who review definitions of PPPs, outline their “Dos and Don’ts,” and illustrate the path to success with dazzling Power Point presentations. But at the International Finance Corporation (IFC)’s first PPP training seminar for representatives from fragile and conflict-affected states (FCS) earlier this year, we swore off business as usual in favor of an interactive discussion among participants. Throughout, we tailored the conversation to the expectations of participants, who already knew that our number one expectation was their active participation. 

As soon as we kicked off the meeting, participants were encouraged to loosen their ties and scarves, prepare to tell their stories, and engage with us on the journey. It was an unusual start to a rigorous three-day training – and it worked.

3 reasons why ‘Housing for All’ can happen by 2030

Gloria M. Grandolini's picture


By 2030, almost 60 percent of 8.3 billion people will live in cities, according to UN estimates.

Almost 1400 of the world’s cities will have half a million or more inhabitants.

Cities can connect people with opportunities, incubate innovation and foster growth, but they require urban planning, infrastructure, transport and housing.

'Winning the Tax Wars': Mobilizing Public Revenue, Preventing Tax Evasion

Christopher Colford's picture
"Winning The Tax Wars" conference


"When something such as the Panama Papers [disclosures on global tax avoidance] happens, we seem to be surprised. We should not be."
— Vito Tanzi, former leader of international tax policy at the International Monetary Fund; author of "Taxation in an Integrating World" (1995)

"Taxes are what we pay for civilized society," said the famed U.S. Supreme Court Justice Oliver Wendell Holmes Jr. So what does it say about society when it tolerates a skewed tax system that applauds tax avoidance, accommodates tax evasion, mocks the compliance of honest taxpayers and drags its feet on tax cooperation?

Those are some of the philosophical (and pointedly political) questions that are being debated this week at the World Bank, at a conference that has gathered some of the world's foremost authorities on international tax policy along with international advocates of fair and effective taxation.

If you can't make it in-person to the Bank's Preston Auditorium this week, many of the conference sessions are being livestreamed and the video will be archived at live.worldbank.org/winning-the-tax-wars

The livestreamed sessions include a pivotal speech by a determined tax-policy watchdog, former Sen. Carl Levin (D-Michigan) — the former chairman of the U.S. Senate's Permanent Subcommittee on Investigations — whose address on "Reducing Secrecy and Improving Tax Transparency" will be one of the highlights of the forum.

Coming just a week after a global conference in London on tax havens, tax shelters and abusive tax-dodging — a conference that highlighted some wealthy nations' lackadaisical approach to enforcing tax fairness —  this week's Bank conference, "Winning the Tax Wars: Protecting Developing Countries from Global Tax Base Erosion" will propel the fair-taxation momentum generated by the recent Panama Papers disclosures. That leaked data exposed the rampant financial engineering (by high-net-worth individuals and multinational corporations) to avoid or evade taxes.

Why cultural diversity matters to development

Ede Ijjasz-Vasquez's picture
Culture is an essential component of each and every society. It is the fabric that weaves communities together and gives them their unique identity. Acknowledging and factoring in cultural diversity is essential to working efficiently with our client countries and adapting interventions to the local context.
 
Embracing cultural diversity, especially through the preservation of cultural heritage assets, also brings tangible economic benefits. Preserving or repurposing historic landmarks in downtown cores, for instance, can make cities more vibrant, attract new firms, and foster job creation. In addition, the preservation of cultural assets plays a key part in supporting sustainable tourism, a sector that has significant potential for reducing poverty in both urban and rural settings.
 
On this World Day for Cultural Diversity for Dialogue and Development, Ede Ijjasz and Guido Licciardi tell us more about the role of culture and its importance to the World Bank's mission.
 
If you want to learn more about this topic, we invite you to discover our latest Sustainable Communities podcast.

Competition and poverty: How far have we come in understanding the connections?

Sara Nyman's picture


Women in a grain market in Kota, Rajasthan. 

Strengthening competition policy is an under-acknowledged but potentially cost-effective way to boost the incomes of the poor. Greater competition between firms has the potential to boost growth through its impact on productivity, and it is increasingly acknowledged as a driver of welfare in the long term.

Despite that fact, competition reforms are notoriously difficult to implement. One of the reasons is opposition from interested groups that stand to lose out from these reforms in the short term – and a frequent lack of evidence or voice on the side of those who could gain from the direct effects of more competition.
 
What is the evidence on the direct impact of competition on the poorest in society, and what do we still need to learn?

A recent review of the evidence by the World Bank Group (WBG) seeks to answer these questions. The review follows two basic ideas. First: Competition policy has the greatest impact on the poor when it is applied to sectors in which the poor are most engaged as consumers, producers and employees. Second: Competition policy should have a progressive impact on welfare distribution in sectors where less-well-off households are more engaged relative to richer households.

Several sectors stand out as being particularly important here. 
 
  • Food products and non-alcoholic beverages are by far the most important sector for poor consumers in terms of their share of the consumption basket. They also make up a relatively higher proportion of the consumption basket of the least-well-off households. (See Figure 1, below. Source: WBG computations based on household survey data.)
  • The retail sector is also important for consumers as the final segment of the food and beverages value chain. It is also a significant employer of the poor.
  • Services such as transport and telecommunications play an important dynamic role in combatting poverty and reducing inequality. Better informed and more mobile consumers are more able to switch suppliers, thus moderating suppliers' market power. Services are also an important input for entrepreneurs.
  • Other agri-inputs, such as fertilizer and seed, are key for the incomes of small agricultural producers. 

Why dialogue between government and the private sector is essential to fight climate change

Cecile Fruman's picture



The historic agreement reached in Paris at the 21st Conference of the Parties (COP21) last December sets out an ambitious plan for signatory countries to achieve specific targets for reduced greenhouse-gas (GHG) emissions. The Paris Agreement includes significant financial commitments and the establishment of structures and mechanisms by which countries will design and implement viable policies to meet agreed-upon goals.

COP21’s major message is one of collaboration: The Paris Agreement unites 177 nations in a single agreement to tackle climate change. Governments set the goal at COP21, but they will need action by the private sector to meet it. One cannot operate without the other.

Industries, which are responsible for 21 percent of direct GHGs worldwide, long resisted the idea of going green, fearing high costs. However, dramatic recent decreases in the cost of climate-friendly technologies, as well as the introduction of carbon pricing, has changed industry perspectives.

More and more businesses are now embracing climate-smart investments, and the driver of such change is, not least, self-interest. A recent study looked at a sample of 1,700 leading international firms and found that money put into reducing GHG emissions saw an internal rate of return of 27 percent – a clear indication that those investments are paying off.

The Science Based Targets initiative is one illustration of industry’s commitment to playing its part in decarbonizing the global economy. The initiative is a partnership between Driving Sustainable Economies, the UN Global Compact, the World Resources Institute and the World Wildlife Fund, helping companies determine how much they must cut emissions to prevent the worst impacts of climate change. So far, 155 companies have signed up for the initiative: Thirteen of them have successfully developed science-based targets which, by themselves, are projected to reduce emissions by 874 million tons of carbon dioxide – the equivalent of the yearly emissions of 250 coal-fired power plants.


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