Private sector development

and ict for development

The Why ? -- Purpose, Objectives, Incentives, PayoffsBigger upside over time (however define); Earlier/faster benefits

Better Risk (and Reward) equation; achieve together what can’t do

alone/whole bigger than parts

Increase Competitiveness -- Paradigm breakthroughs

Leverage, multiply, target resources – and focus competencies

Learning together > key payoff and ROI

Critical success factors: public + development + private sector

Key relationships, political cover

Power of the “idea”, not the money

Creating value, and leading the change/transformation process

Context/Game Changing Development Environments• Greater uncertainties/discontinuities • Speed of change + non-linearity – acceleration/compression

G- force• More complexity/interrelationships/new X-cutting key factors• Globalization, boundaries gone• More players and competition• People/skills more critical• Paradigm changes – power of culture, and cross-culture• Public/private/civil sectors -- converging interests• Standard business/financial data less relevant/available,

and quantifiable + info access/democratization• Old simple data/projections game doesn't work (e.g. ROI)• Newtonian Quantum world• Learning from change

Private Sector Development and ICT – Both Crucial

• The world is flat• Speed, power, access• Human Capital > empowerment > world knowledge• Bottom-up• Customer/client/market drivers• Information mgt > purposefulness• Ideas to action • Entrepreneurs changing communities + world

Role of Government• Enabling Environment• Economic governance• Regulatory empowerment• Competitiveness and innovation policies

Role of Private Sector• Innovation• Venture Development • Resources (all kinds) and investment• Commercialization

Economic Governance – Key Factors

Entry CostsLand Access & SecurityInformal ChargesSOE Bias (competition environment)Legal InstitutionsTime Costs of Regulatory ComplianceLeadership Pro-activityLabor TrainingTransparencyPrivate Sector Development Services

Provincial Competitiveness Index Sub-Indices

PCI Ranking

2006

Strategic partnership in Vietnam > TOPIC-64

Training Online Partnership in ICT for Communities (TOPIC 64)

Other Vietnam Public Private Partnerships• High Value Cocoa Industry Dev't in Vietnam SUCCESS

ALLIANCE MARS/Masterfoods, Cargill + USAID + GVN + ACDI-VOCA (Agri-Bus Dev' NGO)

• Wireless/Satellite Internet Broadband applications/"knowledge access" for remote/rural Last Mile Initiative Private: Intel + TD Com + Lign Up + WRI + SRA + SOLITECHPublic: USAID + AUSAID + GVN (MPT, VNPT, VDC, EVN, * VTF *)

• Infrastructure Financing/ Revenue Bonds Developing National Policy and Legal Framework

USAID + Venture/Invest Fund (Vietnam Partners; JP Morgan/CitiGroup) + HSBC + EDI + Min of Finance + State Securities Trading Centers + Hanoi and Ho Chi Minh City Investment Funds)

USAID Role and Approach – Social Venture Capitalist (PPP’s)

• Shared Values

• Whole bigger than parts – Achieve more together than separately

• Fundamentally about people – Using technology, info, skills, resources to enable people to transform their own lives

• Public sector Venture Capitalist > other sponsoring partners –need/opportunity, vision/value, champion and entrepreneurial team, partnership/deal development and structure, resources/commitments ($ and expertise), skills/human capital support, exit strategy, non-financial Return on Dev’t Investment –defining success, expansion strategy, future investors/funding –VTC, long term commercial sustainability

• Consultative process – client/counterpart needs/wants, convergent and shared interests, complementary skills/resources,leveraging each other’s contributions/capabilities, clear focused roles, team-building

Lessons Learned – Challenges/ Opportunities

• Technologies here and work (broadband strategies)• Understand difference between Public and Private roles• Shared visions/complementary goals/resources > public/private• Sufficient resources come in many forms• Limits > ONLY powers of imagination,• Power of ideas will galvanize resources• Applications and content the next frontier• Perceived value creation and willingness to pay• Commercialization, scaling-up, sustainability• Multiple needs/solutions/entrepreneurial competition• The Underserved, “Base of Pyramid” also a market• Business and Development > good partners

Creating Entrepreneurial Spirit/Process in Public Sector• Hire from private sector • Leverage resources, competencies etc• Priority on Economic governance/enabling enviro’mnt

and empowerment• Create PPP’s around shared dev’t and commercial

visions • Focus on human capital and value creation• Reward innovation and allow mistakes/learning (VC

model)• Share credit > everybody wins

Some New Frontier Development Factors

• Benefits of "early bird"• Forget the old data/statistics/projections crutches• What you can't quantify is more important • People and relationships Key• Higher uncertainty = higher returns; chaos even more• Learn by doing; get on the curve of transformation/change• What everyone learns is more powerful Return than $ • All about creating new “value”• Good deal better (than it looks); and bad deal worse (than looks)• “Not what we DON'T know that's the problem; but what we DO

know that ain't so“• Harness/leverage the powers of “culture”