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Preparing a public-private partnership law: observations from the international experience

Published by: ADB


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This working paper provides observations from an international perspective that are relevant to preparing and strengthening public–private partnership (PPP) laws in developing Asia, with an emphasis on East Asia. The observations are derived from a careful analysis and practical experience of the PPP legal framework in a variety of countries. Laws and guidance from many countries have been reviewed to identify common content and trends in how these have evolved in the light of implementation experience. The analysis identifies a broad consistency as to what are considered to be desirable and undesirable elements in the overall PPP legal framework, while recognizing that the distribution of content between a PPP law and supporting legal instruments and guidance varies between countries. It suggests issues to be considered and addressed when finalizing a PPP law but leaves open how these should be resolved.

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General Information

SDGs Goal 17: Partnerships for the goals
Published
2016
Thematic Area
Public private partnerships
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Revitalize the global partnership for sustainable development

The Sustainable Development Goals (SDGs) can only be realized with a strong commitment to global partnership and cooperation. While official development assistance from developed countries increased by 66 percent between 2000 and 2014, humanitarian crises brought on by conflict or natural disasters continue to demand financial resources and aid. Many countries also require Official Development Assistance to encourage growth and trade.

The world today is more interconnected than ever before. Improving access to technology and knowledge is an important way to share ideas and foster innovation. Coordinating policies to help developing countries manage their debt, as well as promoting investment for the least developed, is vital to achieve sustainable growth and development.

The goals aim to enhance North-South and South-South cooperation by supporting national plans to achieve all the targets. Promoting international trade, and helping developing countries increase their exports, is all part of achieving a universal rules-based and equitable trading system that is fair and open, and benefits all.

Strengthening global solidarity is one of 17 Global Goals that make up the 2030 Agenda for Sustainable Development. An integrated approach is crucial for progress across the multiple goals.

Learn more about the targets for Goal 17.

[format] => full_html [safe_value] =>

Revitalize the global partnership for sustainable development

The Sustainable Development Goals (SDGs) can only be realized with a strong commitment to global partnership and cooperation. While official development assistance from developed countries increased by 66 percent between 2000 and 2014, humanitarian crises brought on by conflict or natural disasters continue to demand financial resources and aid. Many countries also require Official Development Assistance to encourage growth and trade.

The world today is more interconnected than ever before. Improving access to technology and knowledge is an important way to share ideas and foster innovation. Coordinating policies to help developing countries manage their debt, as well as promoting investment for the least developed, is vital to achieve sustainable growth and development.

The goals aim to enhance North-South and South-South cooperation by supporting national plans to achieve all the targets. Promoting international trade, and helping developing countries increase their exports, is all part of achieving a universal rules-based and equitable trading system that is fair and open, and benefits all.

Strengthening global solidarity is one of 17 Global Goals that make up the 2030 Agenda for Sustainable Development. An integrated approach is crucial for progress across the multiple goals.

Learn more about the targets for Goal 17.

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The SDG Fund response

SDG Fund bridges the efforts of different development partners such as UN agencies, national and local governments, businesses, civil society, and academia.

All SDG Fund programmes are cooperative or joint in nature, which means UN agencies coordinate with one another and their national partners to establish integrated responses that address community-wide issues such as poor access to potable water, child nutrition, income generation for vulnerable populations, and gender parity at the institutional level. 

Sustainable development must be inclusive and people-centered. Efforts to increase the effectiveness of development cooperation should be based on basic principles of country ownership, inclusive partnerships, transparency and accountability.

For example,

  • The SDG Fund has introduced the use of matching funds that are provided by national and local governments, international donors and the private sector. This increases sustainability, impact, national ownership and the potential to scale up.  55% of the overall SDG Fund programme budget comes from matching funds.
  • To contribute to developing strong public-private partnerships, the SDG-F established a Private Sector Advisory Group formed by business leaders of major companies from various industries worldwide. These leaders are helping the SDG Fund build a roadmap for how public-private alliances can provide large-scale solutions for achieving the SDGs. Its aim is to collaborate and discuss practical solutions pertaining to the common challenges of contemporary sustainability. The Advisory Group is committed to identifying areas of common interest and deciphering the best methods of UN-private sector engagement, as well as offering suggestions for how to work more effectively at the country level.
  • A clear interest in South-South Collaboration is being incorporated from the inception of programmes. For example, in Paraguay the SDG-F is supporting the creation of a national observatory on the Right to Food in order to improve food security, nutrition policy-making and implementation. The initiative is promoting the exchange of experiences with countries that have already established similar mechanisms. In Tanzania, the SDG-F is supporting the national government to build and scale-up a pro-poor and child-sensitive national social protection system. The programme is promoting South-South Cooperation among countries that have implemented similar schemes in order to build the capacities of the Minister of Finance.
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The SDG Fund response

SDG Fund bridges the efforts of different development partners such as UN agencies, national and local governments, businesses, civil society, and academia.

All SDG Fund programmes are cooperative or joint in nature, which means UN agencies coordinate with one another and their national partners to establish integrated responses that address community-wide issues such as poor access to potable water, child nutrition, income generation for vulnerable populations, and gender parity at the institutional level. 

Sustainable development must be inclusive and people-centered. Efforts to increase the effectiveness of development cooperation should be based on basic principles of country ownership, inclusive partnerships, transparency and accountability.

For example,

  • The SDG Fund has introduced the use of matching funds that are provided by national and local governments, international donors and the private sector. This increases sustainability, impact, national ownership and the potential to scale up.  55% of the overall SDG Fund programme budget comes from matching funds.
  • To contribute to developing strong public-private partnerships, the SDG-F established a Private Sector Advisory Group formed by business leaders of major companies from various industries worldwide. These leaders are helping the SDG Fund build a roadmap for how public-private alliances can provide large-scale solutions for achieving the SDGs. Its aim is to collaborate and discuss practical solutions pertaining to the common challenges of contemporary sustainability. The Advisory Group is committed to identifying areas of common interest and deciphering the best methods of UN-private sector engagement, as well as offering suggestions for how to work more effectively at the country level.
  • A clear interest in South-South Collaboration is being incorporated from the inception of programmes. For example, in Paraguay the SDG-F is supporting the creation of a national observatory on the Right to Food in order to improve food security, nutrition policy-making and implementation. The initiative is promoting the exchange of experiences with countries that have already established similar mechanisms. In Tanzania, the SDG-F is supporting the national government to build and scale-up a pro-poor and child-sensitive national social protection system. The programme is promoting South-South Cooperation among countries that have implemented similar schemes in order to build the capacities of the Minister of Finance.
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Finance

  • Strengthen domestic resource mobilization, including through international support to developing countries, to improve domestic capacity for tax and other revenue collection
  • Developed countries to implement fully their official development assistance commitments, including the commitment by many developed countries to achieve the target of 0.7 per cent of ODA/GNI to developing countries and 0.15 to 0.20 per cent of ODA/GNI to least developed countries ODA providers are encouraged to consider setting a target to provide at least 0.20 per cent of ODA/GNI to least developed countries
  • Mobilize additional financial resources for developing countries from multiple sources
  • Assist developing countries in attaining long-term debt sustainability through coordinated policies aimed at fostering debt financing, debt relief and debt restructuring, as appropriate, and address the external debt of highly indebted poor countries to reduce debt distress
  • Adopt and implement investment promotion regimes for least developed countries

Technology

  • Enhance North-South, South-South and triangular regional and international cooperation on and access to science, technology and innovation and enhance knowledge sharing on mutually agreed terms, including through improved coordination among existing mechanisms, in particular at the United Nations level, and through a global technology facilitation mechanism
  • Promote the development, transfer, dissemination and diffusion of environmentally sound technologies to developing countries on favourable terms, including on concessional and preferential terms, as mutually agreed
  • Fully operationalize the technology bank and science, technology and innovation capacity-building mechanism for least developed countries by 2017 and enhance the use of enabling technology, in particular information and communications technology

Capacity building

  • Enhance international support for implementing effective and targeted capacity-building in developing countries to support national plans to implement all the sustainable development goals, including through North-South, South-South and triangular cooperation

Trade

  • Promote a universal, rules-based, open, non-discriminatory and equitable multilateral trading system under the World Trade Organization, including through the conclusion of negotiations under its Doha Development Agenda
  • Significantly increase the exports of developing countries, in particular with a view to doubling the least developed countries’ share of global exports by 2020
  • Realize timely implementation of duty-free and quota-free market access on a lasting basis for all least developed countries, consistent with World Trade Organization decisions, including by ensuring that preferential rules of origin applicable to imports from least developed countries are transparent and simple, and contribute to facilitating market access

Systemic issues

Policy and institutional coherence

  • Enhance global macroeconomic stability, including through policy coordination and policy coherence
  • Enhance policy coherence for sustainable development
  • Respect each country’s policy space and leadership to establish and implement policies for poverty eradication and sustainable development

Multi-stakeholder partnerships

  • Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology and financial resources, to support the achievement of the sustainable development goals in all countries, in particular developing countries
  • Encourage and promote effective public, public-private and civil society partnerships, building on the experience and resourcing strategies of partnerships

Data, monitoring and accountability

  • By 2020, enhance capacity-building support to developing countries, including for least developed countries and small island developing States, to increase significantly the availability of high-quality, timely and reliable data disaggregated by income, gender, age, race, ethnicity, migratory status, disability, geographic location and other characteristics relevant in national contexts
  • By 2030, build on existing initiatives to develop measurements of progress on sustainable development that complement gross domestic product, and support statistical capacity-building in developing countries
[format] => full_html [safe_value] =>

Finance

  • Strengthen domestic resource mobilization, including through international support to developing countries, to improve domestic capacity for tax and other revenue collection
  • Developed countries to implement fully their official development assistance commitments, including the commitment by many developed countries to achieve the target of 0.7 per cent of ODA/GNI to developing countries and 0.15 to 0.20 per cent of ODA/GNI to least developed countries ODA providers are encouraged to consider setting a target to provide at least 0.20 per cent of ODA/GNI to least developed countries
  • Mobilize additional financial resources for developing countries from multiple sources
  • Assist developing countries in attaining long-term debt sustainability through coordinated policies aimed at fostering debt financing, debt relief and debt restructuring, as appropriate, and address the external debt of highly indebted poor countries to reduce debt distress
  • Adopt and implement investment promotion regimes for least developed countries

Technology

  • Enhance North-South, South-South and triangular regional and international cooperation on and access to science, technology and innovation and enhance knowledge sharing on mutually agreed terms, including through improved coordination among existing mechanisms, in particular at the United Nations level, and through a global technology facilitation mechanism
  • Promote the development, transfer, dissemination and diffusion of environmentally sound technologies to developing countries on favourable terms, including on concessional and preferential terms, as mutually agreed
  • Fully operationalize the technology bank and science, technology and innovation capacity-building mechanism for least developed countries by 2017 and enhance the use of enabling technology, in particular information and communications technology

Capacity building

  • Enhance international support for implementing effective and targeted capacity-building in developing countries to support national plans to implement all the sustainable development goals, including through North-South, South-South and triangular cooperation

Trade

  • Promote a universal, rules-based, open, non-discriminatory and equitable multilateral trading system under the World Trade Organization, including through the conclusion of negotiations under its Doha Development Agenda
  • Significantly increase the exports of developing countries, in particular with a view to doubling the least developed countries’ share of global exports by 2020
  • Realize timely implementation of duty-free and quota-free market access on a lasting basis for all least developed countries, consistent with World Trade Organization decisions, including by ensuring that preferential rules of origin applicable to imports from least developed countries are transparent and simple, and contribute to facilitating market access

Systemic issues

Policy and institutional coherence

  • Enhance global macroeconomic stability, including through policy coordination and policy coherence
  • Enhance policy coherence for sustainable development
  • Respect each country’s policy space and leadership to establish and implement policies for poverty eradication and sustainable development

Multi-stakeholder partnerships

  • Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology and financial resources, to support the achievement of the sustainable development goals in all countries, in particular developing countries
  • Encourage and promote effective public, public-private and civil society partnerships, building on the experience and resourcing strategies of partnerships

Data, monitoring and accountability

  • By 2020, enhance capacity-building support to developing countries, including for least developed countries and small island developing States, to increase significantly the availability of high-quality, timely and reliable data disaggregated by income, gender, age, race, ethnicity, migratory status, disability, geographic location and other characteristics relevant in national contexts
  • By 2030, build on existing initiatives to develop measurements of progress on sustainable development that complement gross domestic product, and support statistical capacity-building in developing countries
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Public and private institutions are converging towards the achievement of development results. One of the SDG Fund priorities is to facilitate this convergence, leading to a shared responsibility in development challenges.

The SDG Fund’s private-sector strategy has two goals: involving businesses in each of our programmes in the field from the start and creating a global business advisory council.

To better align public-private partnerships for sustainable development, the SDG Fund has established a Private Sector Advisory Groupformed by business leaders of major companies from various industries worldwide. 

The experience of the MDG-F suggests that public-private partnerships can contribute to achieving development goals, capacity building, wealth distribution, and sustainable economic growth.

The private sector is understood as micro-, small, medium, and large companies, self-employed workers, business associations, unions, chambers of commerce, and foundations.

For example, the SDG Fund programmes took into account the following criteria for designing programmes regarding public private partnerships:

  • Has the project included the private sector in its design and implementation?
  • Does the project include solutions to development challenges through core business activities and initiatives that include low-income groups in value chains and as producers, suppliers, employees, and consumers?
  • Does the project facilitate discussion between the public and private sectors and civil society on a specific development theme or industry sector?
  • Does the private sector include micro-, small, medium, and large size companies?
  • Does the project promote entrepreneurial activities of disadvantaged or low-income persons?
  • Does the project promote public and private sector representatives’ joint decisions?
  • Is a results-based management approach used in the design of the project?
  • Does the project include measurable activities and indicators related to the number and size of private institutions participating in the program?
  • Does the project include measurable joint activities between private institutions/private sector and public sector?
  • Does the program aim to enable companies to improve and develop corporate social responsibility? Does it include synergies with current corporate social responsibility initiatives?

More information on the SDG Fund Private Sector Advisory Group: link.

For further information, see:
Document HR/PUB/11/04, Guiding Principles on Business and Human Rights, prepared by the Office of the High Commissioner on Human Rights

[summary] => [format] => full_html [safe_value] =>

Public and private institutions are converging towards the achievement of development results. One of the SDG Fund priorities is to facilitate this convergence, leading to a shared responsibility in development challenges.

The SDG Fund’s private-sector strategy has two goals: involving businesses in each of our programmes in the field from the start and creating a global business advisory council.

To better align public-private partnerships for sustainable development, the SDG Fund has established a Private Sector Advisory Groupformed by business leaders of major companies from various industries worldwide. 

The experience of the MDG-F suggests that public-private partnerships can contribute to achieving development goals, capacity building, wealth distribution, and sustainable economic growth.

The private sector is understood as micro-, small, medium, and large companies, self-employed workers, business associations, unions, chambers of commerce, and foundations.

For example, the SDG Fund programmes took into account the following criteria for designing programmes regarding public private partnerships:

  • Has the project included the private sector in its design and implementation?
  • Does the project include solutions to development challenges through core business activities and initiatives that include low-income groups in value chains and as producers, suppliers, employees, and consumers?
  • Does the project facilitate discussion between the public and private sectors and civil society on a specific development theme or industry sector?
  • Does the private sector include micro-, small, medium, and large size companies?
  • Does the project promote entrepreneurial activities of disadvantaged or low-income persons?
  • Does the project promote public and private sector representatives’ joint decisions?
  • Is a results-based management approach used in the design of the project?
  • Does the project include measurable activities and indicators related to the number and size of private institutions participating in the program?
  • Does the project include measurable joint activities between private institutions/private sector and public sector?
  • Does the program aim to enable companies to improve and develop corporate social responsibility? Does it include synergies with current corporate social responsibility initiatives?

More information on the SDG Fund Private Sector Advisory Group: link.

For further information, see:
Document HR/PUB/11/04, Guiding Principles on Business and Human Rights, prepared by the Office of the High Commissioner on Human Rights

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Joining efforts and sharing responsibilities of governments and business to achieve sustainable development.

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Joining efforts and sharing responsibilities of governments and business to achieve sustainable development.

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The observations are derived from a careful analysis and practical experience of the PPP legal framework in a variety of countries. Laws and guidance from many countries have been reviewed to identify common content and trends in how these have evolved in the light of implementation experience. The analysis identifies a broad consistency as to what are considered to be desirable and undesirable elements in the overall PPP legal framework, while recognizing that the distribution of content between a PPP law and supporting legal instruments and guidance varies between countries. It suggests issues to be considered and addressed when finalizing a PPP law but leaves open how these should be resolved. [format] => [safe_value] => This working paper provides observations from an international perspective that are relevant to preparing and strengthening public–private partnership (PPP) laws in developing Asia, with an emphasis on East Asia. The observations are derived from a careful analysis and practical experience of the PPP legal framework in a variety of countries. Laws and guidance from many countries have been reviewed to identify common content and trends in how these have evolved in the light of implementation experience. The analysis identifies a broad consistency as to what are considered to be desirable and undesirable elements in the overall PPP legal framework, while recognizing that the distribution of content between a PPP law and supporting legal instruments and guidance varies between countries. 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