One of the main goals of international cooperation (IC) is poverty reduction. To reach this goal and have a lasting impact in the countries concerned, partnerships with the private sector are essential.
The innovative drive, expertise, distribution channels and investment opportunities of private-sector companies make them invaluable to the implementation of IC activities.
Together with the rest of the international community, Switzerland supports the United Nations 2030 Agenda with its 17 Sustainable Development Goals (SDGs). To meet these goals, all stakeholders in development-related fields must be included in the relevant international processes early on. That is why Switzerland relies on the expertise of other actors – multilateral organisations, private companies and foundations, NGOs, universities and research institutions – when undertaking its international cooperation (IC) work, which has also become one of its strengths.
Involving businesses can free up additional funds and provide wide-ranging expertise and practical experience that the international community can benefit from. The private sector is the biggest employer around the world; poverty cannot be eradicated without it. Because of this, Switzerland is committed to stable business environments, favourable investment climates, and basic education and vocational training that makes young people employable.
Cooperation with the private sector comes with stringent conditions:
- Social, environmental and governance standards must be adhered to
- The private operator would not have made socially or environmentally sustainable investments (or would have made fewer) without access to public funds
- There is no market distortion.
The Swiss Agency for Development and Cooperation (SDC) has been implementing this cross-sectoral approach for several years. In 2006, it completed an overall assessment and analysis of its private-sector partnerships to date. The findings included the importance of developing projects together with private-sector partners, staff training on specific requirements for joint projects, and the option to review the flexibility of different methods of project implementation with private operators depending on geographical location. The findings are being implemented on a gradual basis.
The SDC also relies on partnerships with the private sector for water-related issues. An example of this is the three-year memorandum of understanding with Nestlé, which was adopted in 2017.
“The general public is now demanding that private companies play their part in bringing about change and act responsibly. The enormous resources and innovative capacity of private companies are increasingly seen as an opportunity to involve a diverse range of private sector players in solving the global challenges of our time” explains SDC Deputy Director-General Thomas Gass.
Collaborative projects are carried out by third-party or multi-partner organisations such as NGOs and research institutes. This means that the SDC supports the project partners rather than the private sector directly.
Original source: SDC
Published on 25 May 2020
