Publications on Partnerships with business to promote PSD
Partnering with the private sector by sharing knowledge, costs and risk in projects that achieve both commercial and development goals, is a central element of the PSD strategies of DCED member agencies. This page provides a list of reports, research and evaluations related to donor partnerships with the private sector, with a focus on partnerships for economic opportunities for the poor. The DCED has also published a series of publications on the topic itself:
- In 2013, the DCED has published a review of experience in donor partnerships with business aimed at PSD. It provides a overview of different partnership models and focuses on aspects that have received little attention so far: assessing additionality, measuring results and ways to enhance partnership effectiveness.
- This was followed by the publication of Guidelines on Measuring Results in Challenge Funds, based on the DCED Standard. The Guidelines provide advice on issues such as how to design a practical results measurement system, and how to share responsibilities between the business and the fund manager. The DCED organised a Webinar on Measuring Results in Challenge Funds.
- In 2014, the DCED published a guide on Demonstrating Additionality in challenge funds and other cost-sharing mechanisms. It summarises eight practical criteria and principles that can help agencies to credibly show additionality in their partnerships with business in line with current good practice.
Overview documents: engaging the private sector for development
- Multinational enterprises and economic development in host countries: What we know and what we don’t know, United Nations University, 2016: This paper reviews the literature on the effects of inward FDI in developing and transition economies. It examines the recent divergence between MNEs and Foreign Direct Investment, as MNEs are increasingly able to control value chains without ownership through equity.
- Private Capital for Sustainable Development: Concepts, Issues and Options for Engagement in Impact Investment and Innovative Finance: The report summarises the findings of a study on the strategies and tools available to donor agencies and their partners to leverage and deploy private capital for sustainable development.Reviewing experience with funds and investment vehicles in the fields of innovative finance and impact investing, the study is intended to inform the future engagement of Danida and other bilateral donor agencies in these fields.
- From looking good to doing good. Mapping CSO-Business Partnerships, ECDPM, 2015: This study provides a mapping of some of the key characteristics of CSO-business partnership and identifies four key dimensions to classify them: the relation to core business; the degree of partner engagement; the partnership activities; and the governance structures.
- De-coding public-private partnerships for development, ECDPM, 2014: Growing experience from a range of different partnership mechanisms highlight numerous challenges and opportunities for development actors. This paper seeks to identify these key issues to stimulate discussions on the challenges and opportunities for public-private partnerships to finance and achieve sustainable development post-2015.
- How donors engage with business, ODI, 2013:This paper explores different formats and approaches for donor engagement with business.
- What practical approaches/frameworks are there for effectively delivering subsidy to private sector entities for development purposes?, EPS PEAKS Helpdesk Request, 2013: The use of subsidies to the private sector by donors can distort markets.This paper provides a summary of the major market failures that donors seek to address through subsidies, identifies approaches for delivering subsidies (including matching grants and challenge funds) and describes a framework for identifying the appropriate instrument and format of subsidy.
- Investing in the Business of Development. Bilateral Donor Approaches to Engaging the Private Sector. North-South Institute and CCC, 2012: This paper offers a mapping and exploratory assessment of bilateral donor strategies on the private sector and economic growth in order to identify emerging themes.
- Common or Conflicting Interests? Reflections on the private sector (for) development agenda, ECDPM Discussion Paper, 2012. This Discussion Paper gives an overview of recent donor commitments relating to the private sector – distinguishing between private sector development, donor support to productive investments, and using donor funds to leverage private sector finance – and the questions these raise for development.
- Partners in development: How donors can better engage the private sector for development in LDCs, UNDP and others, 2011. This paper takes stock of existing donor programs aimed at engaging the private sector in development activities, identifies shortcomings and promising approaches, and offers recommendations on how donor programs can attract more public-private collaborations into LDC environments.
Donor partnerships with business to promote private sector development: Current research and practice
- USAID’s Public-Private Partnerships. A data picture and review of business engagement, Brookings, 2016. This paper utilizes partnership data recently released by USAID to draw conclusions on the nature of PPPs, the level of business sector engagement, and draws on interviews to describe corporate perspectives on partnership with USAID.
- Desk Study of Sida’s Experiences from Private Sector Collaboration, Sida, 2016: This report reviews the experiences of Sida in collaborating with the private sector, in particular through its Business for Development (B4D) programme, and puts lessons into the context of international experiences.
- Now open for business: Joint Development Initiatives between the Private and Public Sectors in Development Cooperation, EBA, 2015: This report provides a mapping of existing Joint Development Initiatives in Sweden, reviews their relevance with respect to the different objectives of aid set out by Sweden, and discusses how they can become more effective in delivering aid objectives.
- Public-Private Partnerships in global value chains. Can they actually benefit the poor?, Duke University for USAID, 2015: This report examines partnerships in three global value chains – cocoa in India, coffee in Rwanda and horticulture in Kenya – which had varying degrees of success in reaching the poor.
- Trends in Public-Private Partnerships and Inclusive Business Models for Improving Food Security and Rural Development Through Agriculture, Carana Corporation, 2014: This study provides an overview of current international trends in how donors are engaging with the private sector and developing inclusive business models in pro-poor value chains.
- Moral Hazard? ‘Mega’ public-private partnerships in African Agriculture, Oxfam Briefing Paper, 2014: While noting the development potential of partnerships, this report highlights the lack of robust evidence on their benefits, and that risks for the poor are often overseen, in particular in large-scale PPPs.
- Promoting ethics when partnering with the private sector for development, North-South Institute, 2014: This report presents a review of ethics in OECD-DAC and UN policies for partnership with the private sector. The report seeks to identify which ethical principles have been, or can be, applied to partnerships with the private sector for development, and how development actors act to promote ethical principles.
- Enterprise challenge funds for development: rationales, objectives, approaches, Australian National University, 2014: This paper distinguishes between different characteristics as well as objectives of enterprise challenge funds, and contrasts different instruments and approaches for achieving them.
- Centrally managed donor funds and facilities to promote business engagement, ODI, 2014: This paper reviews a number of these centrally managed donor funds and facilities, and discusses their objectives and modus operandi, as well as lessons learnt in relation to their implementation.
- Meeting the challenge: How can enterprise challenge funds be made to work better, EPS PEAKS Topic Guide, 2014: This topic guide reviews the recent experience of challenge funding and examines the evidence of their impact and overall effectiveness. It also proposes the means by which additional future challenge funds can be strengthened in the future.
- Risky Business: Promoting Private Sector Development in Post-Conflict States. Lessons from the Africa Enterprise Challenge Fund, KPMG, 2014: This paper discusses how the post-conflict windows of the Africa Enterprise Challenge Fund dealt with obstacles such as the heightened risks, limited local capacity and higher costs of engagement faced in conflict-affected environments.
- Challenge Funds in International Development. Research Paper, TripleLine Consulting, University of Bath and Knowledge Transfer Partnerships, 2013: This paper draws on a review of fifty challenge funds being in order to explore variation in their characteristics. A distinction is drawn between business oriented ‘enterprise’ challenge funds and civil society or social development challenge funds, and between relatively ‘light touch’ and ‘hands-on’ approaches to their management. The paper concludes with suggestions for further research.
- From Paper to Practice. Learning from the Journeys of Inclusive Business Start-ups, Sida, 2013: The report explores the journey of companies supported by the grant programme Innovations Against Poverty in 2012-2013. It offers lessons on what works and what doesn’t in base of the pyramid markets.
- Choosing who to partners with: Approaches to Screening Out Companies with Negative Social and Environmental Impacts. Private Sector Development Synthesis Note, DCED, 2013: Development agencies are increasingly interested in partnering with businesses to support private sector development (PSD) in developing countries. But how can they avoid partnering with businesses that have negative environmental and social impacts, and that could damage their reputation in the public eye? This note is an initial scoping of the criteria and mechanisms in use, as well as common challenges.
- Matching Grant Schemes and Systemic Approaches for Private Sector Development – Are they complementary? Private Sector Development Synthesis Note, DCED, 2013: Matching grant schemes and Systemic Approaches are both popular in PSD. They can look similar on the ground, where both use ‘partnerships’ in the form of cost-sharing with a company to stimulate investment. Yet the two approaches differ significantly in other ways. This Note offers a short but systematic reflection on how (or whether) the two approaches are complementary
- Challenge Funds. A guide based on Sida’s and other actors work using Challenge Funds in development assistance/ as a method for development, Sida, 2013: This note gives examples of different kinds of challenge funds, provides lessons learned and discusses some principles which are essential in setting up and managing such funds.
- When Business Meets Aid: Analysing Public-Private Partnerships for International Development, Australian National University, 2013: The purpose of this paper is to provide greater clarity about the several purposes that might be served by public-private partnerships for development, and about the main practical questions that must be considered in connection with different partnership categories.
- Donor partnerships with business to promote PSD – What can we learn from experience?, DCED, 2013: The paper provides a structured overview of different partnership models and focuses on donors’ experiences in assessing additionality and measuring results as well as lessons on how to achieve better development outcomes.
- Models for Trade-Related Private Sector Partnerships for Development, North-South Institute, 2013: This study aims to better understand how partnerships with the private sector can be used to support and improve economic growth outcomes through trade. It includes examples of 30 trade-related partnerships and their (preliminary) results.
- The challenge fund aid modality: Assessing the potential for tackling gender challenges in development, UNU WIDER Working Paper, 2013. This paper compares the use of Challenge Funds by the UK’s Department for International Development and Sweden’s International Development Agency to address gender challenges.
- Challenge Funds as Private Sector Development Tools: Progress and Potential, KPMG, 2012. This document provides a brief overview of challenge fund characteristics and lessons learnt.
- An Analysis of Hidden Variables Influencing the Challenges and Opportunities of Implementing R&D and Value Chain Agricultural Public-Private Partnerships in the Developing World, William Boland, 2012: This working paper provide a practical perspective on what is required to create and operationalise these PPPs in agriculture; explores the incentives, constraints, enablers, and hidden costs associated with creating and managing agricultural PPPs in the developing world; and determines the characteristics that separate upstream research and development PPPs from downstream value-chain PPPs.
- Public-Private Partnerships to enhance SPS capacity: What can we learn from this collaborative approach?, IDB, 2012: This study focuses on public-private collaborations in the area of food safety, animal and plant health, and agricultural trade. It describes and analyses the emergence, operation and performance of selected SPS-related partnerships from both developing and developed countries.
- Can public-private partnerships leverage private investments in agricultural value chains in Africa?, in World Development, Vol.40/1, 2012. Buy online
- Sida, Innovations Against Poverty Programme (2011): Small Grants Applications Analysis: This document summarises information about grant applications at one of Sida’s public-private partnership programmes, Innovations against Poverty, including the origin, size and sectors the applying companies.
- Poulton, Colin (2009): An Assessment of Alternative Mechanisms for Leveraging Private Sector Involvement in Poorly Functioning Value Chains, FAO.
Results Measurement, Reviews and Evaluations of Partnership Programmes
A list of published reviews and evaluations of programmes partnering with individual companies to promote pro-poor business models through cost-sharing or technical support can be found below.
To view the DCED’s Practical Guidelines for Measuring Results in Challenge Funds (2013), click here. For more information on results measurement tools for donor partnerships with business, please refer to the Practical Tools page.
- Evaluation of the Danida Business-to-Business Programme 2006-2011, Danish Ministry of Foreign Affairs, 2014: The Evaluation concerns Danida’s Business-to-Business programme (B2B), which was implemented from 2006 to 2011. The B2B programme provided grant support of up to DKK 5 million to 445 partnerships between Danish companies in 19 countries. Further information and annexes are available here.
- Riding the wave of sustainable commodity sourcing. Review of the Sustainable Trade Initiative IDH 2008-2013, Netherlands Ministry of Foreign Affairs, 2014:The Sustainable Trade Initiative IDH was set up in 2008 as a multi-stakeholder initiative of private companies, non-governmental organisations (NGOs), trade unions and the Dutch government with the aim of improving smallholder production systems, market integration and enhancing sustainable sourcing from developing countries. This review assesses progress made after six years.
- Evaluation of the Responsible and Accountable Garment Sector Challenge Fund, Oxford Policy Management, 2014: From 2010 to 2013 RAGS supported twelve projects by providing matching grants to organisations concerned with labour conditions in the garment sector in developing countries. Grantees included private businesses, trade unions and members of both ethical and fair trade movements. This DFID-commissioned review assess RAGS in terms of relevance and rationale; effectiveness; efficiency; results and impact and sustainability. In addition, the evaluation considered what would have happened in the absence of RAGS.
- Adding Value to Innovation. Lessons from Donor Support to inclusive business from the Business Innovation Facility Pilot, Business Innovation Facility, 2013: This report, documents lessons from the BIF pilot on what worked well and what didn’t in inclusive business support.
- Review of the Business Innovation Portfolio 2013. Assessing results and trajectories of inclusive businesses at the end of a three year pilot, Business Innovation Facility, 2013: The purpose of this document is to share the full findings on results from the BIF portfolio. It covers facts and figures in detail and includes reflections and summarised findings.
- Responsible and Accountable Garment Sector Challenge Fund (RAGS). Working together for a responsible RMG sector – Lessons learned, Maxwell Stamp PLC, 2013: This the final report of the DFID-funded RAGS Challenge Fund which ran from 2010 to 2013.
- Women’s Economic Empowerment. Practice and Policy Implications from the Enterprise Challenge Fund, AusAID Enterprise Challenge Fund, 2013: This paper seeks to identify promising practices in women’s economic empowerment achieved through the design and implementation of the ECF, including the private sector’s own initiatives that resulted in women’s economic empowerment outcomes
- AusAID Enterprise Challenge Fund for the Pacific and South-East Asia. A report on the outcomes of the ECF Portfolio Investment for 2012, Coffey International, 2012: This ECF Annual Portfolio Report documents the progress of 21 business grants to develop commercially sustainable projects that benefit disadvantaged communities.The report looks outside the projects to additional investments being made, changes in the wider market system and the lessons learned to date.
- Review of the Business Innovation Facility Project Portfolio 2012. Year two of the three year pilot, Business Innovation Facility, 2012: This document summarises the key findings across the aggregated portfolio at the end of the Business Innovation Facility’s Year 2 (July 2012). The analysis is based on various data sources from a total of 33 selected cost-sharing projects and feedback provided by service providers.
- Evaluation of the Finnpartnership Programme, 2006-2011, KPMG, 2012: This evaluation identifies the results, development effects, effectiveness and sustainability of the Finnpartnership programme. It also analyses the synergy between the Programme and Finnfund and the possibility to merge Finnpartnership in the regular activities of Finnfund.
- Evaluation of PSOM/PSI 1999-2009 and the MMF, For the Netherlands Ministry of Foreign Affairs Department of Sustainable Economic Development (DDE), Triodos Facet, 2010: This is an evaluation of two business instruments of the Dutch Ministry of Foreign Affairs, the Programme for Cooperation with Emerging Markets, which later led to the Private Sector Investment Programme, and the Matchmaking Facility. The basic research questions used in this evaluation relate to an assessment of the efficiency, effectiveness and relevance of the PSOM/PSI and MMF programme and projects as well as the efficiency and effectiveness of the EVD as the agency which implements both programmes.
- Enterprise Challenge Fund Mid-term Review, for AusAID, Springfield, 2009: This independent mid-term review of the AusAID-funded Enterprise Challenge Fund (ECF) was conducted to assess the efficiency and effectiveness of the pilot program. The review included site visits to ECF funded projects in Fiji, Vanuatu and Laos, stakeholder consultations and desk studies of relevant documentation.
- Evaluation of the Public-Private Development Partnership Program of the Austrian Development Agency, Global Public Policy Institute, 2009 (English Summary): This report summarises the results of an evaluation of ADA’s business partnership programme between 2005 and 2008.
- Independent Review of IFC’s Development Results in 2008. IFC’s Additionality in Supporting Private Sector Development, IEG, 2008: This 2008 review of IFC’s additionality includes useful lessons and categorisations with relevance for challenge funds and similar mechanisms providing grants and technical support to businesses.
- Evaluation of the Global Development Alliance, USAID, 2008: USAID published a full evaluation of its PPP programme, the Global Development Alliance.
- Discussion Document. DFID Business Linkages Challenge Fund (BLCF). Assessing Achievements and Future Directions, Deloitte, 2004: This document reviews the achievements of the DFID-funded Business Linkages Challenge Fund, which was operational 2001-2005.
Case studies of partnerships projects
- Lessons from WING Cambodia. Prepared for the AusAID Enterprise Challenge Fund, 2013.
- Models for Trade-Related Private Sector Partnerships for Development. Preliminary Report, North-South Institute, 2012: This study includes examples of 30 trade-related partnerships and their (preliminary) results. Projects included meet a clear set of criteria: they have at least one development intermediary (non-governmental organization, bilateral donor, or international finance institute), buyer (usually an importer in a developed country), and seller (exporter from a developing country).
- Case Study of the African Cashew Initiative – Focus: Ghana. Lessons from working with new and multiple partners – Emerging Results, DCED, 2012.
- The Economics of M-Pesa, William Jack and Tavneet Suri, 2010.