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T
HERE HAVE BEEN
tremendous advancements in recent years
to extract the benefits of information and communication
technologies for development (ICT4D). ICT gurus and
pundits are looking at the new technologies as a means to bridge
the oceans. However, much of their potential remains untapped
– especially with regard to public-private cooperation.
The German Government believes mainstreaming ICTs will
contribute to the efficient and timely achievement of international
development goals. In the thirty-year tradition of promoting tech-
nology for development, the German Federal Ministry for
Economic Cooperation and Development (BMZ)
1
therefore inte-
grates ICT components into bilateral development activities and
supports multilateral development initiatives, such as infoDev
2
and the Development Gateway.
3
The BMZ’s conviction lies in the fact that public private coop-
eration is necessary in order to mobilize the full potential of ICTs
for development: international and regional digital divides can
be overcome by introducing partnerships at various levels which
are duly supplemented with capacity building measures, promo-
tion of local content and ownership.
Partnerships for development cooperation – sharing
benefits and responsibility
Such partnerships rely on a continued process of mutual trust where
partners share a common goal and pursue this by distributing
responsibility and benefits equally. In recognition of the efficacy of
combining public long term planning and private entrepreneurship
to produce significant leverage effects, the BMZ supports develop-
ment orientated private sector initiatives: Long-term investment
capital is supplied to private enterprises in developing countries by
the DEG. In addition, the BMZ launched a strategy to integrate
public-private partnerships (PPPs) into its development activities in
1999 and commissions German development organisations such
as the GTZ and InWent, the German development bank KfW and
the development foundation SEQUA to implement jointly financed
projects with private sector companies.
4
How can the private sector – which seeks business returns – and
the public sector – which seeks social and economic prosperity, comple-
ment each other to increase the benefits of ICT for the poor?
Engaging in development partnerships with the private sector is
about creating synergies and amplifying the impact of develop-
ment activities. In the past, PPPs have:
• generated additional funds for development projects
• created new employment opportunities in developing countries
• set free additional, economic expertise, knowledge and tech-
nology transfer
• increased the sustainability of development projects.
Ideas for PPP-activities are audited carefully to see whether they
coincide with the development principles set by the German
Government, including a focus on developmental impacts, ecolog-
ical and social sustainability. The German Government intends to
sensitise companies to developmental aspects and their role in
the creation of social and economic parity. In joint ICT projects
with the private sector, added shareholder value is not the primary
target, but the provision of solid solutions towards development
issues, the creation of jobs, access to markets and fair prices.
However ICT4D partnerships also benefit the private partners
as ICTs are a profitable area and offer a wide range of business
opportunities. PPP are not only attractive for large enterprises,
but also cater towards small and medium businesses. For the
private sector stakeholders, PPPs offer a means to reduce invest-
ment risks and market entry barriers. Private investors are given
the chance to pioneer in new markets that offer room for inno-
vation and creativity. Experience has shown that, by engaging in
a PPP, the private stakeholder benefits from the:
The role of the private sector in
mainstreaming ICT4D
Romeo Bertolini, BMZ and Geraldine de Bastion, GTZ
Supplying rural areas with ICT-infrastructure: Wire-less can be more
Photo: Romeo Bertolini