1. Presentation at Camões Anna Rosengren and Bruce Byiers European Centre for Development Policy Management Lisbon, 25th March 2014 Engaging with the Private Sector for Development

2. Brief background – what private sector are we talking about? Lessons from other EU Member States - Institution - Instruments - Challenges The Political Economy of PSD Implications for Portugal Overview of presentation Page 2ECDPM

3. Page 3

4. Private sector development Old agenda: domestic, enterprise growth, value-addition, exports, access to credit, business climate, firm-level skills, industrial policy etc. Private sector investment for development New agenda: international, partnering with developed country firms, offset risk, link producers & suppliers Private sector finance for development Input side – promote and leverage private sector finance Three related but distinct agendas: ECDPMPage 4

5. Private Sector Development … developing country businesses were able to startup and expand Private Investment for Development … there was a way to encourage more inwards investment to link with the local private sector Private Finance for Development …there was a way to bring in more finance for public (or private) investments Assumptions – development would happen if only….. ECDPMPage 5

6. United Kingdom - The Engine of Development, 2008 Germany - Forms of Development Cooperation involving the Private Sector, 2011 Sweden - Collaborations with the private sector, 2011 The Netherlands - The Good Growth Fund, 2013 Lessons from other EU Member States ECDPMPage 6

7. Collaboration between Ministry of Employment, Ministry of Foreign Affairs and Ministry of Education and Culture + 70 teams abroad Activities - Services supporting the internationalisation of business - Influencing the external environment - promoting FDI in Finland - Promoting Finland’s country brand Team Finland ECDPMPage 7

8. Donor-led models Coalition models Business models Business-CSO models CSO-led models Partnership models ECDPMPage 8

9. Mandate and motivation for actors ECDPMPage 9

10. Donor-led - Challenge Funds -Matchmaking facilities Multi-stakeholder -Public-private dialogue -IDH -Grow Africa Private-led -CSR - Base of Pyramid PSD Instruments ECDPMPage 10

11. Donors Additionality Donor attribution Project-level attribution Result and impact measurement Agent selection Fragile states Private Sector Local markets and regulatory challenges Market distances Challenges ECDPMPage 11

12. Who leads who and what impact will that have on partnership structures? -Donor perspective -Private Sector perspective The role of national institutions and governance systems. -Policy and operational perspective -Domestic resource mobilisation The Political Economy of PSD ECDPMPage 12

13. How to define and understand developmental outcomes? Linkages between international investment and the local private sector To what degree can we embrace pilot, experiments and failures using taxpayers money? Other PSD question and issues ECDPMPage 13

14. Alignment with current strategy? Portugal’s PSD strategy ( 1 ) extend to more people and better able access to education and health and other basic social services ; ( 2 ) create and expand to more people and better conditions, access to employment opportunities and income; ( 3 ) foster more and better dialogue and joint action between the public and private sectors in the field of development cooperation. Priority Sector? - Extractives Implications for Portugal ECDPMPage 14

15. Thank you www.ecdpm.org www.slideshare.net/ecdpm Page 15