What needs does the Swedish business community have – have you taken these into considerations when developing the programmes (such as IAP)?
There is a keen interest both in the business community, among research organisations and in the public sector to pursue a Swedish-based BoP programme as well as a PPP programme. A close dialogue with actors within the Swedish business community (Swedish Trade Council, Svensk projektexport, Svenskt Näringsliv etc.) has been ongoing during the development of the tools.
The programmes SPPP and the IAP are designed to meet the preferences of the business community and incorporates international experiences as well as Sida’s former experience. The main objective is however poverty alleviation.
Are applications from Sida’s programmes open only for Swedish companies?
No, none of the programmes will be tied to Swedish interests. International actors are encouraged to apply.
How do the programmes relate to DAC and Paris declaration?
As within programme based approaches (PBAs), the first option is always to work within exsiting programmes, through the national public finance structures and in line with national priorities. If this, for some reason is not possible or reasonable, other options will be seeked, also this in line with the theory of PBAs. Key principles such as ownership, rights based approach are equally important within this type of support as in any other form of support.
Is it right/ is Sida allowed to finance operations where the needs are identified by business community in developed countries?
The IAP support is meant to be distributed to the companies – but these contributions are by catalytic size. It is an important criteria and component that the innovations and ventures supported are properly aligned with the needs at these markets. (This is why Sida can offer e.g. grants for networking with local stakeholders to do needs assessments).
The SPPP is aimed at bigger projects and the contribution is not distributed direct to the company – but to complementary “missing links”. The SPPP is going to apply to projects that fall under the Paris declaration commitments and the Swedish country strategies’ sector focus. They will require cooperation among Sida, local national ministries and agencies, Swedish Embassies, local organizations and business. These projects require alignment with
- Local national plans (such as poverty reduction strategies)
- Swedish Country Strategies in terms of sector focus
- Formal approval and commitment from local organizations, such as ministries, NGOs etc.
Is the overall purpose to foster economic development and growth?
The B4D Programme and the B4D toolbox are designed to work as a mean for strengthening development within various sectors (health, energy, food security etc.) Mobilising capacity and resources within the business sector can be seen as method to reach Sida’s overarching developmental goals.
What size of companies is Sida aiming at collaborating with?
Some of the tools – as the IAP – are aimed mainly for smaller companies or entrepreneurs. Although the BoP concept is recognized and applied by many MNEs – these companies often have the resources to enter new markets for example. Smaller innovators – need strategic and catalytic contribution.
Sida’s Private Public Partnership Programme is mainly aimed for bigger companies or to consortia of companies. Contributions within this programme are not distributed to the company – but to efforts complementing a venture that enable people living in poverty to take advantage of the venture and thereby creating pro-poor growth.
What is the Base of the Pyramid (BoP) about?
The BoP concept – today a field where international and bilateral aid agencies, NGOs and private companies are jointly elaborating, developing and implementing the idea, also called Inclusive Business or Inclusive Market Development. The idea is that major corporations need to focus on the '4 billion' at the base of the pyramid who live on less than US$ 2 per day in developing countries. Meeting the needs of these consumers and including them as producers and distributors offers both business opportunities and developmental benefits. A presumption is also that poor people do have money – or need to consume, which makes the low-income markets important for business development.
Why launch all the programmes without thoroughly developing the policies first?
The B4D toolbox takes an action based learning approach in exploring new ways of collaborating with the private sector. The rationale behind this is that some methods are best developed by implementation (rather than theoretical modeling), and systematic evaluation to continuously make improvements. It is hence important to develop proper impact assessment systems. Sida is now taking part of, and contributes to, the international experiences within this field.
There is an urgent need for new alliances in order to combat global challenges and for example reaching the MDGs.
Isn’t there a risk that people get to rely on the “good” companies to ensure fulfillment of their basic needs – does working through the private sector really ensure a democratic development?
The rights based approach is continuously crucial. Projects shall strengthen key principles such as participation, transparency and accountability. Operations should support and complement existing local democratic and institutional management systems rather than be contra productive to these.
This means that Sida is supporting ventures where vulnerable groups of people get to rely on an individual corporation for their children to go to school for example.
Traditional long term development assistance is of course continuously important too. The work with B4D and private sector is only yet another additional way of mobilising resources in order to reach developmental goals.
