Bruce Byiers, Karim Karaki, Alfonso Medinilla - PowerPoint Presentation

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Bruce Byiers, Karim Karaki, Alfonso Medinilla

May, 4th 2016

CSO-business partnerships for development:

Issues & Challenges

Context of the study

4 dimensions

Lessons from ongoing case-studies and implicationsOverviewPage 2ECDPM

Partnerships on the riseCommercial and development alignment

Donors: PS4D… and own commercial interest?

CSOs: Sustainable/inclusive business… declining core-fundingBusinesses: Philanthropy, CSR… and social license to operate, sustainable value chainsHost government: economic transformation – more and better jobs… and political survivalLots of interest in impact – but what about the partnership’s processes? Context of the studyECDPMPage 3

4 dimensions framework

ECDPM

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Dairy cooperative partnership in Njombe,

Tanzania: Africa Milk Project

Dairy system improvement in Kenya : SNV Innovation FundMining partnership: QMM/Rio Tinto in Fort Dauphin, MadagascarMining partnership: Golden Star Oil Palm Plantation in Western GhanaOn-going case studies…

Origins and context

Social project to fight poverty and malnutritionIn the rural remote area

of Njombe, Southern Highlands, TanzaniaTurned into a market-based approach (IDC)In an area where there is no marketReconnect to the market with the support of the largest Italian dairy cooperative through a holistic approachThe AMP became a limited company to be handed over to the Tanzanian stakeholders (coop)Africa Milk Project: CEFA – IDC – Granarolo – Njolifa (coop)ECDPMPage 6

Origins of the Innovation Fund

Market-led, private sector driven programme in the dairy sector tackles the dairy

sector systemic issuesKenyan dairy sector the most developed in East Africa, strong infrastructure starting attracting FDI but politically sensitive sectorSystem Approach focusing on economic development with indirect social/institutional impactsMany donors involved in the sector: USAid, EU, Dutch, B&M Gates…SNV Innovation FundECDPMPage 7

Relation to core business and Activities

ECDPM

Page 8DimensionsAfrica Milk ProjectInnovation FundRelation to core business Philanthropy – social investment from PS => Could it be strategic? Strategic/core business from PS => Follows the demand driven nature of the fund, win-winNature of activities Production, marketing

and new business development => Holistic approach;

Production;

new business development

=> Targeted system approach; flexible role

Degree of Engagement and Governance

ECDPM

Page 9DimensionsAfrica Milk ProjectInnovation fundDegree of engagementPhilanthropic/Transactional Going beyond financial resources (knowledge; social network; reputation…)Transactional development value creationCommitting resources is not only a material issue;

Governance structures

From informal

to formal basis;

Inclusive

governance but…

Formal basis

Inclusiveness of the partnership’s governance

Dairy sector potential for inclusive development

Origins and context

ALWAYS matter – but needs to be more explicitly taken into account in designCommercially-driven partnerships should be thought of distinctly from social onesPure philanthropy can lead to commercially viable project in the short-run at leastFinance is part of the story but not allImplications for policy makersECDPMPage 10

Frontier country for mining

Titanium Ilmenite

mine since 2005 operational since 2009Partnerships to facilitate community engagementMalagasy NGOs (SAHA) and international NGOs (SFCG)Long history of miningIndustrial gold mining since early 1990sGolden Star Oil Palm Plantation (GSOPP)Partnership involving local communities, community leaders, NGOs and donor agenciesCSO-business partnerships in extractive industries: 2 case studiesECDPMPage 11

Disruptive effect on communities, environment, local economy, infrastructure

Social license (and stability) is not easily obtained

Companies have to engage with everyone (state, CSOs, communities, local private sector, IFIs)CSO-business cooperation in mining (1)Page 12

Impossible to distinguish between CSR (philanthropic intentions) and core business

interests(Avoiding) conflict is a major driver for change on both sidesMove towards

more direct engagement with communities (~level of engagement)CSOs as facilitatorsIsolation exacerbates challenges:Power imbalance Risk of instrumentalisation/loss of CSO credibilityManaging expectationsCSO-business cooperation in mining (2)ECDPMPage 13

Profitable 1000ha plantation  Flagship and award-winning CSR project

Relying on traditional authorities and opinion leaders and providing access to mining income (local content) or rents (tribute)

All aspects managed tightly by the company – hardly any community agency Not a neutral investment opportunity: which role for donor agency?Beneath the surface of a successful partnershipPage 14

Mining companies are not donor

agenciesCreative and profitable (CSR) initiatives are very attractive to donor agencies. (up scaling)

But major missing links that are inherent to partnerships in extractive industries:Mining partnerships require a realistic territorial strategy not simply a project logicDevelopment partners are in a position to address the local governance dimension in some of these contextsImplications for policy makersPage 15

Partnerships as part of the discussion on inclusive GVCs, PS

engagement and working with civil societyChallenges to address (with donor support): power

imbalances trust issues unequal benefitsRecognise informal aspects of partnershipPartnership not just about fin. ResourcesReactive ->adaptive-> transformational (Tennyson, 2016)Potential key => adaptive donors: ‘think sailboats, not trains’ (Kleinfeld, 2015) ConclusionsECDPMPage 16

Thank you

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