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How donors engage with business

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  1. How donors engage with business William Smith – Research Fellow November 2013

  2. Why donors engage with business • To modify business activity – which impacts on so many aspects of life and, sometimes, on a very large scale. • To raise private sector finance. • To harness private sector skills and technology. • To promote voice of non-state actors.

  3. 10 modes of engagement • Consultation and dialogue. • Issue based information exchange and networking platforms. • Promoting linkages between businesses. • Mobilising funds and expertise from business. • Advocating for positive business practices.

  4. 10 modes of engagement • Providing technical or management advice to companies. • Sharing investment risk to stimulate innovation. • Co-funding ‘shared value’. • Funding private sector research and development. • Contracting private sector entities to provide services.

  5. Business Development Exchange programme:“To inform the strategy of AusAid, other donors, and selected companies for business engagement to achieve specific development objectives”- Burma, Indonesia, Papua New Guinea, Vietnam- Agriculture, Gender violence, Mining, Vocational training- 2012-2016

  6. Indonesia: Gold Mining • How can AusAID work with large scale mining companies to: • Improve benefit sharing with local communities. • Resolve conflicts and develop positive relations with artisanal mining communities.

  7. Vietnam – Smallholder agriculture AusAIDis investing AUS$ 160 million in the Cao Lanh Bridge in the Mekong Delta – to improve access to market opportunities. How can AusAID engage with local businesses in the fruit and vegetable sector to address other constraints to investment ?

  8. Papua New Guinea: Gender violence AusAID has helped to establish the Business Coalition for Women to promote women’s empowerment in PNG. How can AusAID work with the coalition and member companies to help them address endemic violence against women ?

  9. ODI is the UK’s leading independent think tank on international development and humanitarian issues. We aim to inspire and inform policy and practice to reduce poverty by locking together high-quality applied research and practical policy advice.The views presented here are those of the speaker, and do not necessarily represent the views of ODI or our partners. Overseas Development Institute 203 Blackfriars Road, London, SE1 8NJ T: +44 207 9220 300 www.odi.org.uk w.smith@odi.org.uk