2.1: Private Sector Engagement (PSE)
Private Sector Engagement (PSE)
The GPEDC supports evidence-based, inclusive dialogue and policies to scale up effective partnerships with the private sector at the country-level.
WHAT IS PRIVATE SECTOR ENGAGEMENT THROUGH DEVELOPMENT CO-OPERATION?
Private sector engagement through development co-operation (PSE) leverages the innovation potential of and additional finance from the private sector for sustainable development. The development co-operation community is scaling up its engagement with the private sector in order to build inclusive markets and value chains across key sectors to achieve the 2030 Agenda. Members of both communities are increasingly working together on areas of mutual interest that promote sustainable development with a special focus on reaching the furthest behind. The Global Partnership fosters inclusive dialogue among different actors to build trust and promote more effective partnerships.
The Kampala Principles
Different partners have highlighted a number of challenges with private sector engagement (PSE) through development cooperation. These include lack of safeguards on the use of public resources; insufficient attention to concrete results and outcomes (particularly for the benefit of those furthest behind); and limited transparency, accountability and evaluation of PSE projects.
Against this background, the Global Partnership 2016 Nairobi Outcome Document called for “unleashing the potential of development co-operation to attract inclusive private investment [by setting] clear effectiveness commitments as the development community engages in partnerships between governments, civil society and the business sector”. The GPEDC answered this call and addressed these challenges by developing the Kampala Principles on Effective Private Sector Engagement in Development Co-operation.
THE FIVE MUTUALLY REINFORCING PRINCIPLES ARE:
WORKING AT THE COUNTRY LEVEL
The development of the Kampala Principles was supported by extensive multi-stakeholder consultations and evidence, building on four country case studies – Bangladesh, Egypt, El Salvador, and Uganda – that resulted in a mapping of over 900 PSE projects, a series of in-depth interviews with diverse stakeholders and workshops to discuss study results in all four countries.
Evidence has shown that only 13% of PSE projects involve partner countries, 5% explicitly target poor or low-income populations and 16% clearly communicate results. Detailed findings across are summarised in a PSE issues paper.
While the five Principles, as a global public good, provide a blueprint for effectively engaging the private sector in development co-operation partnerships, more detailed guidance is needed to facilitate action and implementation by governments, their development partners, the private sector, civil society and trade unions on the ground.
The Global Partnership, as a multi-stakeholder platform that brings together all actors engaged in development cooperation, will address this need as part of its 2020-2022 Work Programme. It will advocate for broader uptake and implementation of the Kampala Principles through innovative advocacy and outreach and produce case studies and pilots, illustrating the Kampala Principles in action, as well as practical guidance for their implementation at country level.
Throughout the development process of the Kampala Principles, the Global Partnership benefited from the advice of a Business Leaders Caucus, a senior-level advisory group, composed of high-calibre business leaders from multi-national companies, large domestic firms and micro-, small- and medium-sized enterprises (MSMEs) from all regions, and different sectors.
The Caucus provided strategic advice and policy guidance to the Global Partnership on how the development co-operation community can more effectively work with the private sector to realise successful SDG partnerships.
In going forward, the Business Leaders Caucus will support bringing the Kampala Principles to life by identifying good practices, case studies and ‘Kampala Principles business champions’. Members of the group will advocate for the Principles within their own networks and at global and regional fora.
The Global Partnership will also explore new opportunities to work with diverse members of the business community in the implementation of the principles at the country level. If you would like to join these efforts, please contact firstname.lastname@example.org.