KAMPALA PRINCIPLE 5:CSOs_SUBP 5.A

Sub-principle 5.A

Ensure that a private sector solution is the most appropriate way to reach those furthest behind

 

Why is it important?

 

International CSOs

Local CSOs

When official development assistance (ODA) is used to support PSE, it should do so with the aim to trigger investments that businesses would not make otherwise, to make them happen more quickly, at a wider scale and better in terms of development outcomes, the climate agenda and ensuring intentionality when it comes to leaving no one behind. In short, public support should be additional to what would have happened anyway. In some cases, market-based solutions might not be able to reach the intended beneficiaries, for example the poorest and most vulnerable populations in a country. In these cases, there could be other ways the private sector’s role could be explored in a partnership to find a comparative advantage. International CSOs have a role in monitoring and campaigning for the effective use of ODA by all donors and ensuring it is spent to support those most left behind and the climate agenda. They can demand a clear theory of change and inclusive consultations with local actors to help identify sectors and projects where a private sector solution is appropriate. When ODA is used to support PSE, it should do so with the aim to trigger investments that businesses would not make otherwise, to make them happen more quickly, at a wider scale and better in terms of development outcomes, the climate agenda and ensuring intentionality when it comes to leaving no one behind. In short, public support should be additional to what would have happened anyway. In some cases, market-based solutions might not be able to reach the intended beneficiaries, for example the poorest and most vulnerable populations in a country. In these cases, there could be other ways the private sector’s role could be explored to find a comparative advantage, including clear support to inclusive participation to those with fewer resources and dealing with greater discrimination. Local CSOs have a role in monitoring whether the necessary processes have been carried out to assess whether a private sector solution is the most appropriate.
 

Colour code:

Yellow = implementation role

Orange = watchdog role

Black = implementation and watchdog role

Self-reflection questions
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International CSOs

Local CSOs

  • What advantages and risks, especially to beneficiaries, does a private sector solution carry? Has the project description answered this question?
  • Does the project include a theory of change that explicitly states the development challenge trying to be addressed and how the involvement of the private sector will benefit those furthest behind?
  • Does the project examine alternative solutions to the development challenge from actors other than the private sector? 
  • Does the project include an ex ante additionality assessment that specifically highlights how the project will meet the needs of those furthest behind? Are there mechanisms in place to ensure course correction?
  • What advantages and risks, especially to beneficiaries, does a private sector solution carry? Has the project description answered this question?
  • Does the project include a theory of change that explicitly states the development challenge trying to be addressed and how the involvement of the private sector will benefit those furthest behind?
  • Does the project examine alternative solutions to the development challenge from actors other than the private sector? 
  • Does the project include an ex ante additionality assessment that specifically highlights how the project will meet the needs of those furthest behind? Are there mechanisms in place to ensure course correction?

Actions to consider
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International CSOs

Local CSOs

  • Ensure public and private accountability vis-à-vis expected development results of PSE projects, based on an agreed-upon rationale at the policy and project level.
  • Ensure the rationale for working with the private sector in specific projects is clearly communicated.
  • Ensure business models are inclusive and sustainable. 
  • Collect case studies. 
     
  • Ensure public and private accountability vis-à-vis expected development results of PSE projects, based on an agreed-upon rationale at the policy and project level.
  • Ensure the rationale for working with the private sector in specific projects is clearly communicated.
  • Ensure business models are inclusive and sustainable. 
  • Collect case studies. 
     

Pitfalls to avoid
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International CSOs Local CSOs

      DON’T…

  • Limit your engagement on monitoring the quantity and quality of ODA provided to private sector instruments and limit the analysis to if and how they could potentially reach those left behind. 

      DON’T…

  • Not recognise that there is a role for private sector actors in development co-operation. 
  • Neglect to speak out when communication is unclear on the selection and added value of business partners in development programmes and policies. 

COUNTRY-LEVEL EXAMPLES

Help us build our knowledge base! If you have any good examples, please share them with the GPEDC Joint Support Team via info@effectivecooperation.org 

Resources

Help us build our knowledge base! If you have any good examples, please share them with the GPEDC Joint Support Team via info@effectivecooperation.org 

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