Private sector development and ict for development

1. Private sector development and ict for development

2. The Why ? -- Purpose, Objectives, Incentives, Payoffs • Bigger 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

3. 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

4. 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

5. 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

6. Economic Governance – Key Factors

7. PCI Ranking 2006

8. Strategic partnership in Vietnam > TOPIC-64 Training Online Partnership in ICT for Communities (TOPIC 64)

9. 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 + SOLITECH • Public: 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/Citi Group) + HSBC + EDI + Min of Finance + State Securities Trading Centers + Hanoi and Ho Chi Minh City Investment Funds)

10. 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

11. LessonsLearned – 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

12. 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

13. 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”