The Private Sector and its role in Development - A trade union perspective TUDCN – Sao Paulo, March 2014

What is it? direct recipient of public aid, including ODA – for their investments and activities (subsidies and loans); contractor in implementing aid projects – through traditional public procurement procedures); a commercial and/or financial partner within a public- private partnerships – or through blending commercial loans with aid grants; provider of aid-equivalent development resources – private philanthropic foundations and corporate donations); and/or facilitator in networking and policy making processes – through business forums and networks.

ODA (USDbn)

ODA, 2006 base 100

The drivers – Business groups as “equal partners” of government – Leveraging and tied aid – Inclusive business

“Unleashing the Power of Business” Semantic shift from – Private sector development ("contribute to sustainable development“), to – Private sector for development ("true partner in development“, “systematic engagement of business”, “a two-way street”, “Development is about the business of business” Stating the obvious – “Business is operating as a partner in development when: Business aligns its investments with a country’s development priorities Social and environmental development”

Methodology & narrative Micro necessarily applies macro – “how to”, case study approach, “pockets of good practice” Subjective & disconnected from normative approach – Subjective, “vision, “beliefs”, "cultural divide" between business and government “alignment” – “achieve a ‘Level 4’ society in which public and private interests are more strongly aligned and in which collaboration across the sectors becomes the ‘new normal’.

Not about privatisation, but “not suggesting in any way a watering-down of the role of government”, “not a manifesto for privatisation” but: “a call to explore why companies might be strategically interested in development priorities and finding ways to engage them much more systematically through partnership” … PPPs & inclusive business what kind of employment, and in what fields? Water, Health, Energy, Finance

The inclusive business model & PPPs – To “demonstrate why public private partnerships for development (PPPD) are usually essential” – to address “underdeveloped public services, social challenges, lack of skills, regulatory hurdles, poor infrastructure, inefficient manufacturing or agricultural production and limited access to finance”. – To address “uncertainty” around the idea of business, through a partnership, appearing to get involved in delivery of a 'public good’ – Subtle difference between “PPP for D” & “Regulated PPPs”

Policy Priorities – Asserting the developmental role of the state – Upholding a rights-based approach to development through rule of law & social dialogue – Holding multinational businesses to account – Setting standards for aid effectiveness, measuring impacts and results – Supporting SMEs and entrepreneurship, tackling informality

Tax evasion & tax avoidance Tax avoidance – Legalised but « aggressive » tax planning – reform to intra-group transfer pricing regulation – mandatory disclosure country-by-country tax reporting. Tax evasion – illegal – Global forum standard – enforcing automatic exchange of information between tax authorities