Public Private Partnerships (PPP) in BDS Market Development, GTZ, Vietnam, Finkel, 2003-5

    Governments, politicians, and development professionals recognise that they cannot solve the poverty issue by themselves. At the same time, companies realize that acting in a global economy means confronting new challenges that are easier met by building partnerships not only with other private sector players, but also with governments, institutions, and civil society. This is more vital than ever for businesses that are aware of their social and environmental responsibilities and increasingly understand that global, sustainable development is in their own best interest.

    GTZ's main goal with PPP is to promote the sustainable development of a country and it expects long-term commitment on the part of partner companies even though projects rarely last longer than a few years. GTZ sees these partnerships as projects of private companies, development agencies and local counterparts that are jointly planned, financed, and implemented with the aim of combining the interests of private companies with those of partner countries in such a way that both achieve their objectives more rapidly, effectively, economically, and sustainably.

    In Vietnam, the PPP apply modern methodologies and technologies to upgrade the quantity and quality of vocational training. GTZ and its partners also implement projects that bring direct benefit to farmers and local companies through cooperatiin with large multinationals interested in improving the quality and environmental impact of products they purchase in Vietnam. This brings new export markets to the farmers, guarantees better prices, and helps to build long-term trading relationships.

    And in private sector development, GTZ's development partnerships engage in building markets for business development services, such as quality and environmental management training, for local small and medium enterprises. A new and very relevant focus is social standards. In this area, GTZ is creating local consulting and certification capabilities intended to help local enterprises remain competitive in the global marketplace.

    For those coming here from the "What's New" page, a new report has been added, "Service Provision through Buyer Driven Value Chain Development Initiatives," (April, 2005) which describes why mulinational companies and buyers may be motivated to provide services to their suppliers in developing countries. The report provides two case studies from Vietnam.

    Summary of results
    The scale of this private-sector commitment has important side-effects: companies make important contributions to the development of partner countries. They transfer new technologies, train local specialists, boost the quality of local products, and create new jobs, sources of income, and stable trading relations. In other words, the private sector plays an increasingly important role for development policy both as a target group and as a cooperation partner.

    Associated Activities and Documents
    »Public Private Partnerships (PPP), GTZ, Viet Nam, 2006