1. Development-oriented & commercial instruments to engage the private sector 5th Informal Donor Dialogue meeting ECDPM, Economic Transformation & Trade Programme Brussels, 20 th of October, 2015 Private Sector (for) Development

2. Outline Background of the study Context Introduction Analytical approach Public support instruments Similar challenges Differences Opportunities Conclusion Questions for the discussion Page 2 ECDPM

3. Private sector key for development Public instruments: development cooperation vs. other public instruments ECDPM mapping in the context of PS4D → Unique overview of both development AND commercially-oriented public support instruments Background of the study ECDPMPage 3

4. Developing countries promote their own development Donors increasingly engage with PS4D Simultaneously, donors support their private sector to internationalise pure development cooperation vs. economic diplomacy But there are trade-offs and challenges!... … and at the same time opportunities of commercially-oriented instruments Context ECDPMPage 4

5. Growing donor driven PS4D agenda Private sector interest -Support to access new markets in foreign countries -Risk mitigation Donor interests -mobilise European businesses so to make development more effective -access to foreign markets -economic exchange -benefits of businesses operating in market competition Introduction ECDPMPage 5

6. DCED categories of partnerships and engagement with the private sector DCED -Match-making mechanisms -Funding mechanisms -Technical support programmes - Proposed categories for development & commercially- oriented instruments: 1.Matchmaking/business facilitation 2.Financial support/cost sharing 3.Technical assistance/advisory services Analytical approach ECDPMPage 6

7. Public support instruments ECDPMPage 7 Development-orientedCommercial MatchmakingBCtA, GIF, Finnpartnership, NL MF COSME, SME Internationalisation Portal, Clusters Financial support DFIs, AECF, GIF, DeveloPPP.de, IDH/DGGF, Danida BE ECAs, COSME, H2020 SME Technical assistance BCtA, DeveloPPP.de, Finnpartnership Export helpdesk, H2020 SME, EU MS’ support programmes

8. Financial: ○ Accountability to taxpayers ○ Financial know-how and capabilities Transparency: ○ Results and development impact and their measurement ○ Data availability and access for public Practical: ○ Targeting the ‘right’ companies ○ Distortionary/driving biz out the market ○ Instruments design as private sector is diverse Sustainability: ○ Implementation and monitoring ○ Standards to avoid harmful investments ○ Achieving sustainable and responsible business conduct Similar challenges Page 8 ECDPM

9. Objectives and motivations to work together Underlying criteria at times Geographical focus Development instruments’ challenges ○ tied aid? ○ additionality/attribution of results ○ scaling-up ○ pressure to disburse funds? Commercial instruments’ challenges ○ sustainability → doing no harm to development (social, human & environmental rights) ○ limited positive impact on development Differences ECDPMPage 9

10. Better data publicly available and accessible → to inform about objectives, progress, outcomes and impact Criteria and principles of sustainability → Need for more coherent application across instruments Harnessing opportunities to better learn from each other’s sustainability criterias Reform of ECAs Unification of private sector support in one ministry? Opportunities Page 10 ECDPM

11. Challenges and opportunities are similar Main differences: objectives, criteria and targeted countries Increased synergy and coherence feasible Private sector support could be more development-friendly through: ○ more coherent sustainability criteria ○ better evaluation and learning opportunities ○ increasing transparency Conclusion Page 11 ECDPM

12. How to best combine development objectives with economic diplomacy interests? What are the key distinctions that need to be made between these different types and their role and objective? How best to foster synergy and avoid duplication? What are the key lessons from public instruments to support private sector, between those with development objectives and those with commercial interests? What kind of criteria and evaluations are required to build on the synergies between both sets of instruments? Is there an added value to acting at a European level to link commercial and development-focused instruments? Questions for the discussion Page 12 ECDPM

13. Thank you www.ecdpm.org www.slideshare.net/ecdpm Page 13 ECDPM