Transcript A stronger role of the private sector in achieving inclusive and

A stronger role of the private sector
in achieving inclusive and
sustainable growth
in developing countries
Seminar on "Business opportunities for cooperation with
the EU in developing markets" organised by Polish MoFA
and PARP
Mariusz Tamborski, Directorate General for Development and Cooperation
EUROPAID – European Commission
Warsaw, 20 May 2015
ROLE of the
PRIVATE
SECTOR in
DEVELOPMENT
table of contents
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ECONOMIC AND POLITICAL CONTEXT
PRIVATE SECTOR COMMUNICATION
EU INSTRUMENTS –
OPPORTUNITIES FOR EU
ENTERPRISES
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Economic context - opportunities
 Private Sector provides 90 % of jobs in Developing Countries and thus it
is an essential partner in the fight against poverty.
 Global needs for developing countries are estimated at USD 1.5 trillion a
year while last year's Official Development Assistance (ODA) was USD
135 billion (OECD). Private capital flows are indispensable to bridge the gap,
in addition to domestic tax resources.
 The private sector is needed as investor in sustainable energy,
infrastructure, green economy and especially in sustainable agriculture and
agribusiness to feed 9 billion people by 2050.
 Huge opportunities: 5%-6% of GDP growth on average in developing
countries and emerging economies. On the African continent, the latest
figures show eight countries registering a growth rate of 7%, nine countries
at 6% and ten countries at 5%.
 But with challenges regarding…
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Economic context - challenges
 Business and investment environment
 Repatriation of profits
 Registration of companies
 Customs procedures
 Taxation…
 Access to finance mainly for SMEs
 Skills gap
 Lack of skilled labour
 Lack of experienced management capacity…
 Information gap
 Lack of information, knowledge and experience which retain from engagement or
give excessively risk adverse attitude to European enterprises.
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Political context - a change of paradigm regarding private sector
 International level:
 4th High Level Forum on Aid Effectiveness in Busan (2011) called for a more
direct engagement of the private sector in the area of development policy design,
resource mobilisation and the provision of goods and services which benefit the
poor.
 The post-2015 framework: conferences in Addis Ababa in July, New York in
September and COP 21 Climate change in Paris in December 2015. A way from
Millennium Development Goals (MDGS) to Sustainable Development Goals
(SDGs). The key role of the business in the post 2015 agenda.
 EU level:
 "Agenda for Change" (2011) sets new priorities: e.g. good governance,
sustainable growth and jobs. A need to engage more directly with private sector
partners in development cooperation.
 Policy document, Communication "A Stronger role of the Private Sector in
achieving inclusive and sustainable growth in developing countries" adopted by
the Commission on 13 May 2014.
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Structure of the Communication
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Proposed principles for strengthening the role of the
private sector in EU development cooperation
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Actions on PSD and PSE
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Tools for implementation
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EU Instruments – opportunities for EU
enterprises (examples)
 Policy dialogue to ensure a fair and level playing field for European
business in non - EU markets.
 International agreements such as Economic Partnership
Agreements (EPAs) with African, Caribbean and Pacific (ACP) countries
to improve the access to market for both European and partners'
countries accompanying with development and economic measures.
 Development Policy instruments (EDF, DCI, ENI) and programs
such National Indicative Programs (NIP), Regional Indicative Programs
(RIP), continental programs (e.g. Pan-African Program) and global
thematic programs established with developing countries on the basis
of their priorities:
 Measures aiming at improvement of business climate and based on win-win approach
 EU enterprises participating in tendering procedures.
 Access to finance for example through blending.
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Thank you!
Mariusz Tamborski
Sustainable Growth and Development Directorate
European Commission, DG DEVCO – EuropeAid
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