Consultation: Kampala Principles Toolkit For Development Partners

?  A warm welcome to all stakeholders! The consultation is now live. We look forward to your comments on the Kampala Principles Toolkit for Development Partners!

? Please remember to sign up to the Knowledge Platform here, before joining the consultation!

Sarah Neumann MY Z Kim Bettcher Janet Longmore JANE JAMIESON Lina Shamsadin Ian Brown Anar Mamdani MSimonds Vitalice Randa Hamza Earnan O Cleirigh Mariusz Tamborski Paola Simonetti Diego Lopez Nancy Silva Héctor Cortázar Frederik Lange Dorothea Wehrmann Hannes Öhler Esteves.Paulo Carlien van Empel Peter Rademaker Luciana Aguiar Daniel Gamboa Michael Pittelkow Sarah Deiss iantero John Simon Youssef Jaber Teodora Mihaylova Hilary Duff Arthur WOOD Arthur Wood Luis Roa luisroa 

?  This is a kind reminder to all stakeholders that there are five days left until the consultation will close on Monday, 28 February.

We are looking forward to receiving your comments. Your opinion is very valuable to develop targeted advice to stakeholders on the implementation of the Kampala Principles.

Sarah Neumann MY Z Kim Bettcher Janet Longmore JANE JAMIESON Lina Shamsadin Ian Brown Anar Mamdani MSimonds Vitalice Randa Hamza Earnan O Cleirigh Mariusz Tamborski Paola Simonetti Diego Lopez Nancy Silva Héctor Cortázar Frederik Lange Dorothea Wehrmann Hannes Öhler Esteves.Paulo CarlienvanEmpel_ILO Peter Rademaker Luciana Aguiar Daniel Gamboa Michael Pittelkow Sarah Deiss iantero John Simon Youssef Jaber Teodora Mihaylova Hilary Duff Arthur WOOD Arthur Wood Luis Roa luisroa 

Sub-Principle 1.A: Define National PSE Goals Through an Inclusive Process

PSE goals should not be housed only within a development co-operation policy on PSE. They should be reflected more broadly within development strategies. Public and private representatives jointly stated (hps://www.oecd.org/dac/effectiveness/49211825.pdf) in Busan in 2011 that “consultation with the private sector in the elaboration of national and sector plans is a prerequisite to broadening country ownership of the development process and ensuring inclusive growth.”

Among the reasons why consultation on PSE goals is important, it can deepen understanding of private sector roles and capabilities—both in development co-operation and sustainable development writ large.

Sub-Principle 1.B: Align and co-ordinate PSE through development co-operation with national priorities and strategies

As stated, the emphasis should be on alignment at the level of priorities and strategies. As a pitfall to avoid, be cautious about burdening private sector partners with bureaucratic requirements that divert energies from agreed priorities or reduce their flexibility in implementing solutions.

Sub-Principle 1.C: Invest in capacities for PSE through development cooperation

The attention to longer-term capacity building is important. Thus, capable local partners are those who can pursue their mission and partnerships free from over-dependence on development co-operation projects.

Besides helping various actors to understand “private sector engagement,” consider the mirror image of how engagement looks to the private sector. From the private sector’s perspective, the need is not to understand “PSE” but rather to understand how participating in development co-operation benefits them, what it requires, and how to navigate development partner and government systems and work with other actors.

Sub-Principle 2.A: Focus on maximising sustainable development results

As important as the leave-no-one-behind principle is, there are other aspects to maximizing sustainable development results. The private sector may participate in the creation of public goods or the defense of global commons. Market solutions can be highly scalable solutions. Leveraging resources of the private sector can help mobilize resources for other purposes.

The references to early project termination raise the questions of project governance and due process. Obviously, a project should serve its purpose. However, if development partners or governments “change their mind” about what they want to do—and drop a project to which the private sector has committed resources—this undermines the credibility of development co-operation partnerships and the willingness of the private sector to invest in them.

Sub-Principle 2.B: Ensure sustainable development results by aligning core business and development interests

In assessing shared purpose and interests, ensure that there is a clear statement of the specific business case or value proposition. Other development actors should be careful not to infer a business case that business itself has not articulated. Consider co-creation of projects with the private sector.

What would be an example of “transforming CSR activities into core business operations”? Can this work?

Encourage projects with social and environmental entrepreneurs, not “small social and environmental entrepreneurs.” We want social enterprises to grow and not encourage them to stay small.

Sub-Principle 2.C: Engage in partnerships according to international standards

It’s good to have the reference to national legal frameworks as well as relevant international standards.

Sub-Principle 3.A: Support and participate in inclusive dialogue and consultation

Consider adding a reference to community-level dialogue where applicable, especially to discover potential impacts on a community.

The bullet on existing dialogues and consultations seems to make multiple points and could be clarified. Is it about building on existing platforms (a good idea), celebrating them, or fixing them?

“Take time to convey the need to seek local perspectives to project participants.” – This could be phrased better. Also, who are the project participants if they are not local?

Sub-Principle 3.B: Promote inclusive, bottom-up and innovative partnerships and raise awareness of engagement opportunities

Certain points under 3.B concerning PSE opportunities could fit under 3.C.

Inclusive, bottom-up partnerships need not be only about smaller private partners. They can be about grassroots, locally owned, community level efforts. They can be about entrepreneurial initiatives (for example, the Bangladesh Kampala Principles case study).

Sub-Principle 4.C: Ensure Accountability 

This section ought to say more about mutual accountability among partners. Governance of partnerships and projects is important to establishing credible commitments and reducing risk for public and private partners alike. Collaboration agreements or MOUs among partners are often a good idea.

“Private sector partners [are] used to answer exclusively to their shareholders…” – This is a sweeping statement and isn’t necessary here. It certainly doesn’t describe Business Call to Action members, for example. Public corporations routinely report to securities regulators, while most smaller firms rely on debt not equity.

Sub-Principle 5.C: Share risks proportionately to incentivise private sector contributions to leave no-one behind 

“Does your project consider renegotiation of PSE contracts if project stakeholders ex-press legitimate concern over the balance and sharing of risks and returns?” – As commented above under 2.A, any arbitrary renegotiation of contracts will undermine the credibility of development co-operation. The better solution would be to conduct a proper risk assessment up front, and then within a contract, specify the terms by which a contract can be either terminated, under which conditions, recalibrated, or arbitrated.

“Inform private investors on the discrepancy between perceived and actual risk of investments” – What does this mean? Whose perceptions? Who is describing “actual risk”? Is this similar to the description of risk factors in a prospectus?

Final comments:

Strong, multi-stakeholder partnerships come into being through the work of champions, and the Kampala Principles are no different in this respect. It would be worth acknowledging the importance of identifying and cultivating Kampala Principles champions.

In reality, development partners often rely on contractors or other intermediaries and are a step removed from partnerships and project implementation. How can development partners fully realize their obligations and potential, as envisioned in this toolkit, when they work through intermediaries?

the problem is not measuring the performance of change and mapping out the existing system of deploying aid projects and programmes see visualize the cycle time and cost. Too much discussions and dialog about good things with a map that all can see of how ineffective and inefficient is our current ability to manage project/programmes cycle time and cost. Too much report in text not nearly enough visualization of existing capacity as a whole. 

Generally the guidelines are detailed enough . I was wondering whether in instances where the PSE engagement is strongly engraved other national policies, Like National Development Plans, do they need to develop a separate PSE Policy? My guess would be no but to put in place other mechanism to implement the existing policy, which I seem not to see in this tool kit.

Capacities of Private Sector providers need to be analysed and built, I do not see this coming out properly. In most developing countries, the capacity of Private Sector players to harness the available opportunities is still wanting. Private sector still at infantry stage if I may use that term'

Thanks for the clarification

The tool  kit is comprehensive and addresses most of the important aspects. However, as you well know in most partner states including Uganda the private sector need to be nurtured to be bale to contribute to the development agenda, we need therefore to have some kind of affirmative action in the capacity building of the private sector. I note some partners provide this support like the case of Guatemala quoted in the toolkit, but  can we ask DPs to provide a specific line of support to this noble cause. In Uganda we have a collaborative framework with the Private sector well spelt out but it is fully implemented? something you may need to interest yourself in. If there is not affirmative intervention to bring the capacity and interest of private sector in development cooperation to speed, little will be achieved. Private sector still looks at governments for tax waivers, but not looking at the other side of how Government can pool resources for development

Otherwise the tool kit is good to go