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How donors engage with business
William Smith – Research Fellow
November 2013
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.
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10 modes of engagement
1. Consultation and dialogue.
2. Issue based information exchange and networking platforms.
3. Promoting linkages between businesses.
4. Mobilising funds and expertise from business.
5. Advocating for positive business practices.
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10 modes of engagement
6. Providing technical or management advice to companies.
7. Sharing investment risk to stimulate innovation.
8. Co-funding ‘shared value’.
9. Funding private sector research and development.
10. Contracting private sector entities to provide services.
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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
Indonesia: Gold Mining
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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.
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Vietnam – Smallholder agriculture
AusAID is 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 ?
Papua New Guinea: Gender violence
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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 ?
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The views presented here are those of the speaker, and do not necessarily represent the views of ODI or our partners.
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