Professional Documents
Culture Documents
April 2014
Published by World Economic Forum,
Geneva, Switzerland, 2014
4 Foreword
5 Introduction
8 Part I
8 A. Latin America Today
10 B. Innovative Public-Private Partnerships: Concepts
and Emerging Trends
15 C. Partnership Enablers: Tools, Practices and
Opportunities for Empowering iPPPs
66 Part III
66 A. Key Success Factors
67 B. Policy Recommendations
68 C. Conclusions
70 Acknowledgements
70 Members of the Global Agenda Council on
Latin America
72 Appendices
72 1. Methodology and Case Selection Criteria
73 2. Authors and Affiliations
74 Endnotes
Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America 3
Foreword
The steady economic growth the notion that in an ever-connected Marisol Argueta de Barillas
experienced by Latin America over the world, no actor can deliver maximum Senior Director, Head of Latin
America, World Economic Forum
past decade has allowed countries in the social benefit alone. The Council believes
Forum Lead, Global Agenda Council
region to step up efforts to achieve that there are additional benefits to on Latin America
development objectives and to reinforce sharing practices described here as a way
state-run public programmes aiming to of underpinning confidence in well- Fernando J. Gómez
bring about much-needed social structured partnerships, as inspiration for Associate Director, Latin America,
transformations. Nevertheless, Latin other countries in the region and beyond World Economic Forum
American economies still face the to replicate and build upon these models, Council Manager, Global Agenda
Council on Latin America
challenge of guaranteeing sustainable, and as a window into the ingenuity of the
inclusive, good-quality growth and region. With this report, the Council has
development to satisfy the demands of a made a valuable contribution to the
better-informed and increasingly well- definition of the regional agenda,
educated population. To respond to these anticipating important trends and issues
challenges, institutions are now redefining in the region. It reflects the diversity of
their “default” roles and, perhaps more Council Members’ experiences and
importantly, their modes of operation. views, and their understanding of local
interests.
Public-private partnerships have therefore
emerged in the social and sustainable The World Economic Forum is proud to
development arena as efficient models for support the Global Agenda Council’s
the provision of public services and social commitment to the improvement of Latin
entitlements to the Latin American America. We are grateful to the authors of
citizenry. The region is now accumulating these case studies, to the Members of the
valuable experience, as shown by the Global Agenda Council and their
many well-functioning alliances among organizations, and to the teams at the
governments, the private sector, civil Forum who made this report possible. We
society and other stakeholder groups that would like to extend special thanks to
make the most of capital investments, Enrique García Rodríguez, Chair of the
especially in the areas of social and Council, and to Alicia Bárcena Ibarra,
human capital development. Vice-Chair of the Council. Their leadership
and the commitment of their teams are an
In this report, the members of the Global
inspiration to us.
Agenda Council on Latin America have
chosen to illustrate, through a series of
brief case studies, the creativity and
commitment displayed throughout the
region in the design and execution of
innovative public-private partnerships in
areas such as education, health and
environmental sustainability. These
studies highlight the benefits of
capitalizing on the strengths of the
different sectors in question, and support
4 Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America
Introduction
The ongoing paradigm shifts in the world change, the loss of biodiversity, financial divided in terms of quality between private
economy, the emergence of new global stability, and the need for identifying new and public services, thus perpetuating
concerns over recent decades, and the patterns of production and consumption, intergenerational poverty and exclusion.
magnitude of the economic and financial call for new solutions at the global,
In spite of the positive achievements of the
crisis begun in 2008-2009 have further regional and national levels.
past decade, the region is fraught with
challenged traditional views of the role of
Over the course of the past decade, Latin structural gaps, the most pressing of
the state, the private sector, civil society
America also experienced significant which include its high levels of inequality,
and community organizations as well as
changes in its societies, growth trends segmented access to education and
traditional models for cooperation
and development paths. The dynamic health, urban and territorial segregation,
between them. In industrialized countries,
growth cycle from 2002 to 2012, driven by low levels of productivity and investment,
the economic and financial crisis and the
a favourable external climate, enabled and limited productive and technological
subsequent eurozone debt crisis have led
significant progress in the social sphere, innovation capacities. Following a
to one of the worst economic depressions
chiefly in terms of reducing poverty and, predicted economic slowdown, new
in recent history, placing increasing
to a lesser extent, extreme poverty and expectations from the region’s people and
pressure on public finances and job
inequality. It was also sustained by a traditional social burdens are therefore
markets and further questioning the
combination of sound economic and likely to further test the resilience of its
sustainability of traditional welfare models.
social policy-making from governments societies, the overall sustainability of the
By contrast, between 2008 and 2012, the and accompanied by improvements in the current growth models and the ability of
countries of the global South – particularly labour market and real wages which public and private actors to address these
China and the other BRICs (Brazil, Russia, enabled greater resilience to external issues. New constraints created by the
India and China, taken together) and rapidly shocks. The emergence of a “new middle changing global context, such as a
growing emerging economies – emerged class”, albeit very different from that of reduced fiscal space, limited access to
as key drivers of global growth. These industrialized countries and still vulnerable financial flows and to traditional
trends, together with the dynamism of to falling back into poverty, has enabled instruments of development finance or
South-South trade and cooperation, have significant progress in terms of providing deteriorating terms of trade and levels of
contributed to a relative shift in traditional households with access to a more international reserves, are likely to place
balances of power and centres of wealth. diversified basket of consumer goods. more pressure on governments and call
for innovative solutions.
The recent launch of mega-regional trade However, it has also given rise to new
negotiations is a sign that industrialized demands and higher expectations New efforts and approaches must
countries have quickly reacted to this regarding the provision of quality goods therefore be urgently devised to take
development and that regionally and services, which have fallen short in stock of the changes that have taken
integrated blocs will be increasingly areas such as education, health and place among all actors of society.
significant on the global stage in the public transportation and therefore pose Changes at the global and regional level
coming years. In parallel, the social unrest new challenges to public and private have renewed debate on and interest in
in various parts of the world and the decision-makers. On the one hand, the the role of the state and policy-making, in
growing expectations of citizens for notion that the state has enabled greater particular whether to pursue state-led
greater equality within a rights-based equality and promoted a rights-based economic policy or enhance collaboration
framework, inclusive growth and better approach has become widely recognized between the state and private actors.
ways of providing quality public goods by the region’s societies and citizens. On Societies have called for new forms of
and services have stressed the need for the other, in spite of the different leadership, sufficient institutional capacity,
new models of governance and growth. development models currently in use in the right forms of governance and creative
Finally, global concerns including climate the region, its societies are still clearly thinking to address these challenges.
Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America 5
Civil society and local communities have roads, or large-scale research and Enrique García Rodríguez
become increasingly well-organized and development (R&D) projects means that President and Chief Executive Officer, Development
Bank of Latin America (CAF)
connected at the global, national and local success is contingent on collaboration
Chair, Global Agenda Council on Latin America, World
levels. They have been able to raise the between public and private stakeholders. Economic Forum
voice of citizenship and have progressively In various innovative success stories, the
developed into significant and reliable state has been a powerful driver and risk Alicia Bárcena Ibarra
Executive Secretary, United Nations Economic
stakeholders. Their contribution to policy taker at the early stages of development.3 Commission for Latin America and the Caribbean
analysis and debates is increasingly Thanks to the social dynamism and (ECLAC)
relevant, and they have become key innovation of Latin America, creative PPPs Vice-Chair, Global Agenda Council on Latin America,
actors in helping devise innovative have emerged in recent years and provide World Economic Forum
6 Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America
Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America 7
Part I A. Latin
America Today
8 Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America
Figure I.1 : Latin America and the Caribbean: GDP Growth, 2004-2013 Most countries in the region have also
(Percentages) benefited from favourable labour market
conditions that have led to a reduction in
7,0 informality, an increase in “quality” job
6,0 creation and a rise in average real wages.
5,4
This combination of factors, along with the
5,0 implementation of active and innovative
4,0
social policies – particularly conditional
3,4
cash transfers (CCT), which were
3,0 progressively replicated throughout the
2,0
region and beyond in the 2000s – have
enabled a reduction in income inequality
1,0 for the first time in decades.
0,0 These developments have also enabled
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 the emergence of a “new middle class” in
- 1,0
many countries of the region, since a
- 2,0 significant share of the population has
Source: Economic Commission for Latin America and the Caribbean (ECLAC), on the basis of official figures.
been lifted out of poverty. While this
population now has access to a more
diversified basket of consumer goods and
services, new demands have been made
Figure I.2 : Latin America and the Caribbean: Poverty and Indigence, 1980-2013
for access to other goods and services of
(Percentages of the population) a higher quality, particularly in sectors
60 pertaining to social and urban
Percentages
0 30
1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
1993 1995 1997 1999 2001 2003 2005 2007 2009 2011
Source: Economic Commission for Latin America and the Caribbean (ECLAC), on the basis of official figures.
Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America 9
Such a prospect makes it all the more In this context, it is important to note the Then… how to respond?
urgent to carry out structural reforms to fundamental differences between private
To confront these challenges, Latin
address the most serious gaps: the worst and public resources, which obey a
America needs to pursue a greater
income distribution in the world, different logic and respond to different
degree of economic diversification,
persistently high levels of informality and incentives. ODA is granted and provided
supported by policies promoting
of structural heterogeneity, vulnerability to according to set criteria and development
innovation and strengthening productive
external shocks, unequal access to needs, and is contingent on dialogue
links. This requires difficult reforms to
education and social protection and between donor and recipient. Private
boost productivity, improve education and
shortcomings in terms of innovation and flows, on the other hand, respond to
strengthen government capacity to
productivity. The limited improvements market incentives and are mostly driven
address social needs. In the social
made in productivity in most of Latin by profit motives; this in turn requires
sphere, the countries of the region must
America are partially explained by rigid public policies to create a positive
devise and put into place a second
labour market regulations, which have investment environment and set the
generation of policies that go beyond
fostered a large informal sector with a vast appropriate incentives. A key challenge is
conditional cash transfers, as social
array of small and unproductive firms and therefore how to blend private and public
issues and progress cannot be
very few dynamic large and medium- resources to generate innovative ways to
addressed by social policies alone. The
sized firms. One of the biggest challenges combine the different funding methods
following is required:
in the region, then, is how to promote and achieve the required leverage to
dynamic entrepreneurship in start-ups to maximize the impact of development -- Sounder macroeconomic
create small and medium-sized finance. management, to limit social setbacks
enterprises with high growth potential. To during economic crisis and favour
Latin America is also the most urbanized
address these challenges, Latin America growth with job creation
region of the developing world, with nearly
needs to pursue a greater degree of
80% of its population living in urban areas. -- Lower inflation rates at the national
economic diversification, supported by
One in three Latin American people lives level, to temper vulnerability to volatile
policies promoting – not forcing –
in cities with upwards of a million international prices of primary goods
innovation and strengthening productive
inhabitants, which take up a large share of and food products
linkages. This requires difficult reforms to
financial, technological and educational
boost productivity, improve education and -- More balanced public finances, to
resources. The sustainability of urban
strengthen government capacity with a allow building fiscal space to sustain
development remains a challenge in terms
view to addressing social needs. Cross- public spending and consolidate social
of housing, transport and commuting,
cutting global challenges such as energy policies
pollution, citizen security and so on.
independence, climate change, loss of
-- Investment and savings, to boost fixed
biodiversity, sustainable growth, and Finally, global challenges such as climate
capital formation, infrastructure and
access to global financing also need to be change, environmental sustainability and
innovation
addressed. the need for more sustainable patterns of
production and consumption also need to -- A sustained period of high economic
In terms of access to financial flows,
be addressed. Latin America’s significant growth, to support the creation of
efforts need to be made and new
natural heritage and abundant natural formal jobs and the rise of labour
approaches must be devised to take
resources6 need to be managed in an incomes, keeping a focus on
stock of the significant changes that have
environmentally sustainable manner. As employment as the master key for
taken place in respect of the actors,
climate change intensifies, the equality
instruments and mechanisms in the
consequences are likely to become more
development finance sector. On the one
serious and to threaten the social,
hand, the traditional reliance of Latin
economic and environmental
America and the Caribbean on official
development of Latin America and the
development assistance (ODA) flows as a
Caribbean. The possible consequences
source of development funding has been
include decreases in agricultural
decreasing in recent years,4 thus raising
productivity in some areas; a significant
the importance of private flows. In addition
deterioration in the quality, quantity and
to the growing importance of private
availability of fresh water; damage to
flows, new actors have appeared in
coastal areas; more widespread
international cooperation: emerging donor
bleaching of coral and the death of coral
countries other than the members of the
reefs; increased economic damage from
Organisation for Economic Co-operation
intense weather events; and the extensive
and Development’s Development
loss of biodiversity.
Assistance Committee (DAC) and private
donors such as NGOs and philanthropic
institutions.5 As Prada (2012) has stated,
private flows currently account for close to
90% of financial flows to countries in Latin
America and the Caribbean, whereas
official flows comprise slightly above 10%.
10 Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America
B. Innovative and requires overcoming ideological,
cultural and organizational barriers, they
addressed. This collaboration is reflected
in the design and consolidation of
Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America 11
1. The state 2. The private sector An increasing number of corporate
foundations also stress the importance of
In the current context of a shifting In the case of the private sector,
going beyond welfarism and focusing on
paradigm, the role of the state remains businesses have become more interested
community development by identifying
vital in designing, fostering and in pushing for greater involvement in
and supporting social development and
implementing social covenants, regulatory solving social problems both in
social innovation projects, mostly at the
frameworks, incentives, policies and industrialized and (increasingly) in
sub-national, local and community levels.
innovative partnerships with the private emerging countries, thereby going
For example, the members of Red
sector and civil society actors to beyond traditional corporate social
eAmerica,14 a network of 76 Latin
encourage progress in society, the responsibility to touch on issues such as
American corporate foundations, runs the
economy and the productive sector within poverty, inequality, fair trade or the
“transformadores” contest to identify and
a rights-based approach. To forge a new environment, which are progressively
disseminate innovative community-level
social contract facilitating the exercise of becoming part of their corporate values.
practices aimed at reducing poverty and
citizenship in all its dimensions, the state More importantly, the business case
inequality. The Brazil-based Lemann
must encourage the transformational through which the private sector seeks to
Foundation15 develops innovative
agenda through a combination of position itself among more vulnerable
initiatives to provide increased access to
coherent economic and productive sectors of society by providing them with
education, from primary to university
development policies and provide for an goods and services and to address
levels, including the “Science without
inclusive social safety net. It must also issues of environmental sustainability is
borders” project aimed at fostering
work towards universal employment with quickly gaining acceptance as a new
research, technological development and
full rights, universal social protection and source of value creation.
innovation by increasing tertiary outbound
capacity building. An essential
More recently, some business sectors mobility.
precondition of integrated development is
have therefore stressed the importance of
a politically legitimized state capable of
rethinking their business models by taking 4. Civil society, NGOs and local
achieving that goal in the long term and of
such issues into consideration, reaching communities
engaging and coordinating economic and
towards more vulnerable sectors of
social agents. This entails taking initial Over the past decade, NGOs and
society and the “bottom of the pyramid”11
risks related to funding or kick-starting organized local communities from civil
(BOP), which had been traditionally
innovative and successful initiatives to be society have become very significant
underserved, thus turning social and
run by the private sector. stakeholders in the analysis and debate of
global development issues into business
issues related to sustainable
Additionally, the characteristics and opportunities. As Prahalad (2011) and
development, the environment and the
expectations of “the new middle class” Yunus (2013) have stated, developing
rights of the most vulnerable sectors of
and the need for innovative mechanisms, innovative approaches to reach the BOP
society. These actors have progressively
greater sustainability and new sources of and reshaping business models towards
become more informed, organized and
financing for the provision of quality goods sustainable social impacts can be
relevant in raising public interest and in
and services in the social and facilitated by building and generating
formulating and implementing concrete
environmental spheres increasingly “ecosystems” which include large
initiatives addressing economic, social
require the state to devise new corporations, SMEs, micro-
and cultural rights-based issues in sectors
generations of policies and tools at all entrepreneurs, NGOs and the public
as diverse as education, health, food
levels of government: national, regional, sector as collaborators.
security, the rights of indigenous
local and community. The state remains
populations and young people, access to
the key actor in forging social covenants 3. Corporate and private philanthropic
water, and the impact of extractive
with other relevant social stakeholders foundations
industries. They have benefited from
with a view to achieving greater equality
Corporate and philanthropic foundations improved institutions and the inclusion of
and intergenerational sustainability, chiefly
help bridge the gap between the their concerns on the public agenda, and
in the areas of productivity and
corporate world and the fight against in some cases have developed solid
investment, employment and fiscal policy.
poverty at the national or community partnerships with academia and donor
Such a vision requires the ability to
levels. Today, financial flows from private institutions, thus reflecting the growing
integrate these actors into broader
philanthropy to the developing world awareness of citizens and societies as a
public-private policy frameworks in,
outweigh the monetary contributions of all whole of their rights and responsibilities
among others, the macroeconomic,
governments combined.12 Some global regarding sustainable development.
industrial, science and innovation, social
private foundations, such as the Bill and
and environmental spheres. It also Moreover, as Rey de Marulanda has
Melinda Gates Foundation, have become
requires more closely monitoring stated (ECLAC, 2010), the Latin American
global players, addressing key social
innovative mechanisms established by and Caribbean region is currently
challenges, particularly with regard to
public authorities, private institutions, civil witnessing an “explosion of creativity and
health and education. In Latin America,
society and communities, or a social innovation” from civil society, whose
the Kellogg Foundation, the Ford
combination thereof, and providing a main driving forces are NGOs and local
Foundation and Ashoka traditionally
framework for their evaluation to assess communities. NGOs have become key
support pioneering projects and research
the potential for scaling and replicating the actors in implementing social
in identifying innovative initiatives and
most successful mechanisms. programmes and initiatives. In the same
conceptual frameworks.13
vein, local communities, such as
indigenous peoples, rural populations and
other vulnerable groups have become
relevant social and political actors,
participating directly in the formulation
12 Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America
and provision of innovative and integrated Avina’s strategies are aimed at great emphasis on the use of results-
approaches to their local and territorial developing, promoting and enhancing based management tools for measuring
development. Under this logic, collaborative processes that involve a the relevance and efficiency of the
governments may often find it more variety of participants from different processes, assessing the impact of the
efficient to partner with or rely on NGOs sectors and multiple points of view. It initiatives on public policy agendas and
and communities in implementing some maintains a balanced critical mass of civil devising exit strategies to ensure
of their social programmes and initiatives, society, private sector and government sustainability among stakeholders. Two
because they benefit from greater actors that share a vision for the future, recent public-private initiatives – on
legitimacy, have particular skills or are adopt innovative social methodologies post-earthquake reconstruction in Chile’s
more likely to deliver the expected results and converge in shared agendas of action central-south region and on the
and outcomes. Such partnerships can to influence joint decision-making for the transnational approach to deforestation in
prove to be more productive and more better and to drive social change. Avina the Amazon biome – offer examples of
efficient than initiatives that public adds value to collaborative processes in specific work carried out by Avina
authorities implement independently. order to pave the way for these social Foundation.
Interestingly, many of the case studies changes – actual improvements in Source: AVINA, for further information: http://www.avina.net
clearly suggest that organized people’s quality of life or in the
communities have been empowered and environment through political, institutional,
are demanding to take the lead in both the technological, scientific or cultural
design and implementation of transformations – that will lead to systemic
programmes and potential iPPPs. changes in communities, cities and 5. Universities, think tanks and
countries, which will in turn have an research centres
impact on sustainable development. It Universities, think tanks and research
does so by contributing contextual centres play an important role in the
intelligence drawn from unique promotion and development of iPPPs. By
approaches and innovative knowledge, analysing iPPPs in progress, these
fostering the convergence of stakeholder institutions identify causes and factors
interests, visions and goals. It helps that contribute to the success or failure of
coordinate the efforts of diverse actors by partnerships between governments and
building trust and creating productive links the private sector, and assist in the
that leverage their joint work, and helps its improvement of these relationships.
Fundación Avina: Example partners introduce and advance a Furthermore, academia and research
common vision and shared agendas of
of an Integrated action in different areas.
centres provide, through their case
studies, a holistic overview of PPPs
Vision of Development Based on a Systemic changes are changes that worldwide, validating models applied in
PPP in Latin America effectively challenge the status quo, are specific countries that could be replicated
resilient and can scale up impact, thus elsewhere. In other words, they provide
Fundación Avina was established in 1994 affecting structures and the prevailing the private and public sectors with a
by Swiss entrepreneur Stephen conditions, beyond isolated events or benchmark for best practices in PPPs.
Schmidheiny with the initial goal of developments. They are necessary to
strengthening initiatives from social and Their participation extends beyond merely
achieve sustainable development, which researching and documenting to acting as
business leaders in Latin America to is by definition capable of being sustained
promote sustainable development in the a partner in iPPPs. Foreign and local,
in the long term. Such changes are private and public universities play an
region. As a dynamic organization that is complex, reflecting an infinite number of
constantly learning and changing with the important role today in the improvement of
variables that go beyond the linear logic of education in Latin America through their
times, Avina now looks outside the region cause and effect and are cross-cutting in
to identify opportunities to impact global partnership with the different governments
nature, because they are not limited to any and by facilitating the access of low-
sustainable development from Latin one sector or area. Two types of changes
America, by creating favourable income students and vulnerable
are key to the region: increasing the value populations to learning institutions. PPPs
conditions for diverse actors to join forces of public goods, that is, of what belongs
in contributing to the common good. involving universities and research centres
to all citizens, because the more public have been strengthening the social
These opportunities are selected on the goods there are, the less inequality there
basis of their relevance for sustainable infrastructure by improving the technical
will be; and the transition towards a new skills of the labour force.
development, their potential for regional economy that preserves natural wealth
and global scalability, the existence of and contributes to social progress. An interesting coordinated effort is the
gaps in collaboration between the various Social Enterprise Knowledge Network
stakeholders – as by reducing this gap, Avina’s efforts are focused on a portfolio (SEKN), a network for collaboration
the collaborative processes can be of regional and global opportunities among 10 of the most prestigious
strengthened – and the presence of developed together with its partners and business schools in Iberoamerica. Its
tipping points. That is, conditions that adapted to the specific conditions of the mission is to push back the frontiers of
ensure that specific actions will have an 21 countries in which it operates. The knowledge and practice of social projects
impact on the processes of areas of action currently covered include through joint research, shared learning
transformation. access to water, the Amazon biome and case-centred teaching, as well as
strategy, energy, the extractive industries, capacity building for management training
inclusive recycling, migration, public institutions serving their communities.
institutions, sustainable cities and the
South American Chaco. Avina places
Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America 13
6. Regional and multilateral institutions and linked to the priority needs of levels. More recently, the Global
developing countries in a more systematic Partnership for Effective Development
a. The United Nations
manner. Lastly, robust accountability Co-operation,19 promoted by the
The United Nations is a global and mechanisms at the global, regional and Governments of the United Kingdom,
regional facilitator of neutral dialogue on national levels will be critical in increasing Indonesia and Nigeria, places emphasis
and analysis of peace, security, human the effectiveness of the renewed global on bringing together key stakeholders
rights and the development agenda partnership.18 from governments, donor institutions and
among the governments of member the private sector to enhance international
b. Development banks
states and other relevant stakeholders cooperation and aid practices globally
(academia, the private sector and civil Regional financial institutions (RFIs) also and supporting the formulation of a
society). In 2000, Secretary-General Kofi have specific characteristics which make post-2015 development agenda in this
Annan launched the United Nations them particularly valuable. They provide a respect.
Global Compact,16 a strategic policy sense of ownership of resources and of
initiative geared towards the business their destination, given the governance of 7. Social entrepreneurs and social
community and committed to aligning its those institutions. RFIs are also familiar innovators
operations and strategies with universally with the region’s specific characteristics, a
Over the past decade, social innovation
accepted principles in the areas of human fact that facilitates dealings with local
and entrepreneurship have developed
rights, labour, the environment and the authorities. RFIs have shown their ability,
from an emerging initiative into a key issue
fight against corruption. By taking part, contingent on their lending capacity, to
on the business and social development
business, a primary driver of globalization, act and respond in a timely manner when
agendas, both in industrialized and
can contribute to opening up new required. These features have allowed
developing countries. Social enterprises
markets and fostering progress in trade, subregional institutions to project an
balance a social mission with financial
technology and finance for the benefit of image of trust and confidence. Moreover,
viability and sustainability, existing
economies and societies as a whole. The given the incomplete character of the
between the public sector and private
Global Compact is a leadership platform existing global financial architecture, RFIs
markets in both the developed and
for the development, implementation and can bridge existing gaps. The region
developing world. As Nick O’Donohue,
dissemination of responsible and sustain- should strengthen the capacity and scope
Vice-Chair of the Global Agenda Council
able corporate policies and practices. of subregional development banks to
on Social Innovation, has said, “We need
With nearly 8,000 corporate participants encompass the provision of trade finance,
to unleash a whole new wave of social
in over 140 countries, the Global Compact an area in which these banks have been
entrepreneurs and help existing models
is the world’s largest voluntary corporate playing a role, albeit a modest one.
with proven impact grow to scale much
sustainability initiative. In developing the Subregional development banks also
more effectively. If we get this right, the
Millennium Project and its related Millen- need to cooperate more effectively with
economic historians of the future will look
nium Development Goals (MDGs) in 2002, development banks at the national level.
at this generation of leaders and be
the United Nations not only displayed a Various initiatives implemented by the
grateful. They took the risk and
targeted roadmap for development but World Bank, the Development Bank of
transformed the prevailing model. They
also placed significant emphasis on the Latin America and the Inter-American
helped create a world that enriched the
need to build global partnerships for Development Bank’s Multilateral
many and not just the few.” In Latin
development (MDG8) in order to contrib- Investment Fund and social innovation
America, initiatives focusing on social
ute to achieving such goals. programme, some of which are included
innovation and social entrepreneurship
in the case studies showcased in this
As the report of the United Nations are more recent but are growing quickly.
report, are noteworthy examples.
System Task Team on the post-2015
development agenda, A renewed global c. Other global and regional conveners
partnership for development,17 states:
Global organizations such as the World
“MDG8 has played a central role in
Economic Forum, the Clinton Global
galvanizing aid, increasing market access,
Initiative (CGI) or the Clinton Climate
providing debt relief and improving access
Initiative also play a key role in identifying
to ICT and essential medicines and other
and bringing together actors from
forms of support [….] Yet MDG8 also has
governments, international organizations,
important gaps and systemic shortcom-
the private sector and civil society. The
ings and there is a large discrepancy
Forum has progressively established itself
between its initial level of ambition and its
as one of the foremost organizations
implementation.” Furthermore, a renewed
fostering public-private and
global partnership will need to strengthen
intergenerational dialogue, and
global governance by addressing
coordinating and integrating stakeholders
weaknesses in international arrangements
involved in the decision-making process.
for collective decision-making. For
More recently, CGI has also stressed the
reasons of accountability, multistakehold-
importance of seeking new solutions to
er partnerships could also be main-
traditional and emerging development
streamed under each thematic goal, thus
issues, thereby serving as a catalyst for
strengthening the links between goals
fundraising to finance innovative initiatives
and the means of achieving them. This
and projects. These conveners serve as
structure would better reflect the contribu-
platforms for collaboration between
tions of voluntary and single-purpose
governments, businesses and civil society
partnerships, which could be coordinated
at global, regional, national and local
14 Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America
Partnership In the current context, following the global
financial and economic crisis and the
Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America 15
3. Innovative financing mechanisms Eggers, W. and Paul Macmillan (2013),
The Solution Revolution, How Business,
As mentioned earlier, new trends in
Government and Social Enterprises are
development finance provide new
Teaming Up to Solve Society’s Toughest
opportunities to combine public and
Problems, Harvard Business Review
private capital flows, with due account for
Press.
the specific nature of each. Given that
some players have the potential to Graves, C. (2005), The Never Ending
increase their role in development finance, Quest: Dr. Clare W. Graves Explores
there is space for new mechanisms Human Nature, ECLET Publishing.
through which public policies can
Mazzucato, Mariana (2013), The
generate a climate conducive to private
Entrepreneurial State, London, Anthem
capital investment and establish an
Press.
incentive scheme to steer it towards
development objectives. New initiatives McKinsey & Company, Committee
using public resources to mobilize Encouraging Corporate Philanthropy
investment towards development (2010), “Shaping the future: Solving social
objectives have appeared in industrialized problems through business strategy”.
countries. One such example is
Prada, Fernando (2010), World Bank,
development impact bonds, which turn
Inter-American Development Bank, and
social problems into opportunities for
Subregional Development Banks in Latin
investment. On a different level, emerging
America: Dynamics of a System of
crowd-funding practices may also
Multilateral Development Banks, Asian
represent innovative funding mechanisms
Development Bank Institute.
for civil society and local communities.
These may provide an inspiring example Prahalad, C.K. (2011), The Fortune at the
for Latin America. bottom of the Pyramid, Pearson Prentice
Hall.
16 Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America
Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America 17
Part II Case 1.
University for All
Case Studies (ProUni)
Executive Summary
ProUni aims to promote access to tertiary
education for low-income students with
the support of private tertiary institutions
in Brazil (incentivized by tax exemptions).
From its beginning in 2005 until the first
semester of 2013, the programme has
provided more than 1.8 million
scholarships. To ensure that low-income
students apply to the programme, the
Ministry of Education has established
partnerships with other government
agencies and non-profit organizations to
provide widespread free access to the
Internet. The government has also
implemented monitoring procedures by
cross-checking information available in
different databases to ensure that only
eligible students participate in the
programme.
Geographical scope: Brazil
Thematic area: Tertiary education
Description
In Brazil, less than 15% of young people
between 18 and 24 years of age are
enrolled in tertiary education institutions,
according to data collected by the
National Institute for Educational Studies
and Research (INEP).21 This percentage is
lower in the north and north-east of Brazil,
the poorest regions of the country, where
only 10% of young people attend tertiary
institutions.22 These data reveal the
magnitude of the challenge of achieving
goal 12 of the national educational plan23
(PNE), i.e. to increase the percentage of
the young population enrolled in tertiary
education institutions in Brazil to 33% by
2020. It is noteworthy that Brazil is in a
worse position than several other Latin
American countries. According to the
global innovation index (GII),24 which
includes indicators ranking countries in
terms of their openness to innovation,
higher education is considered crucial for
economies to increase productivity. Brazil
was ranked 64th out of 142 countries in
the 2013 GII, owing to its relatively poor
performance in indicators such as human
capital and research (75th). While
Argentina and Chile were ranked 14th and
18 Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America
23rd in tertiary enrolment respectively, Figure II.1 : Population Aged 18 to 24 Years Old Attending Tertiary Education in
Brazil was ranked 82nd. In fact, even Brazil, 2011
lower-middle-income countries, such as (Percentages)
Bolivia and Paraguay, were better ranked
than Brazil concerning tertiary enrolment. 25,0%
Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America 19
Figure II.2 : ProUni Tax Exemption, 2006-2013 helps low-income students with the
(Reaisa) application process. CIEE, together with
other governmental agencies (such as
800 GESAC), assists in the application
Million BRL
20 Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America
Whereas in 2006 the scholarships cost Reproducibility unoccupied. For the government, the
R$ 1,146.92 (about US$ 500) per new programme was cost efficient, with no
As discussed above, ProUni is a relatively
recipient, in 2012 it was only R$ 253.68 need to transfer resources to the private
cost-efficient programme that could be
(approximately US$ 110).37 However, it is sector.
replicated in other developing countries. It
important to note that, until 2011, tax
is important to verify both whether the Additionally, it is important to ensure that
exemptions were calculated on the basis
country has a wide range of private the partnership will be a long-term one
of the number of scholarships offered by
tertiary institutions and whether such and that monitoring and evaluation
the private tertiary institutions rather than
institutions have a substantial number of mechanisms will be implemented to
the actual number claimed. This
vacant places that could be used in the ensure the quality and effectiveness of the
discrepancy was identified by the TCU in
welfare programme to facilitate the access programme. To foster the long-term
its report of 200938. Thus, the cost of
to higher education for students from partnership with the private sector, ProUni
ProUni incoming students per year was
low-income families. In the case of Brazil, established that the tax exemptions would
actually higher than the amount provided.
the high tax burden made it possible to continue every year for as long as the
For instance, rather than costing R$
encourage private institutions to private tertiary institutions maintained
292.92 in 2010 (about US$ 127), the
participate in the programme through tax scholarships for students registering in
scholarships cost R$ 462.79 (about US$
exemptions. Thus, it is also essential to previous enrolment rounds, and provided
200) per new incoming ProUni student.39
choose an economic incentive that is not scholarships for new ProUni students
This state of affairs was remedied by No.
only cost-efficient for the government, but according to the formula of one full
Law 12,431, of 14 June 2011. As stressed
also attractive to the private sector. scholarship for every 10.7 students
by the 2012 report of TCU, 40 the tax
enrolled at the institution. Moreover, the
exemption is now calculated on the basis
private tertiary institution must sign a
of scholarships actually provided, and not Recommendations 10-year contract, renewable for an
the number offered by the institution.
additional 10 years. ProUni also
Nevertheless, it can be said that, even To plan and implement an innovative PPP, established a monitoring mechanism that
considering the greater cost of the it is essential to take into account the consisted of cross-checking information
programme before the advent of Law No interests of the social group targeted, how available in different official databases to
12,431/2011, the programme is still expenditure on the new programme ensure that only eligible students would
cost-efficient. ProUni would therefore would affect the government’s budget participate in the programme.
appear to facilitate access to tertiary and what economic incentives could be
education while providing value for offered to attract the private partners. In It is possible to state that ProUni is a
money, meeting with the approval of the other words, an innovative PPP must successful initiative to open up access to
private institutions by providing tax combine these three factors to give rise to higher education. There are, nonetheless,
exemptions and enabling the federal a “win-win situation”. In the Brazilian case, some problems regarding the illegibility of
budget to be balanced (Catani and Hey, the low number of young people aged some students and the inflation of tax
2007). 18-24 years old attending tertiary educa- exemptions by the private tertiary
tion was alarming (i.e. less than 15%), and institutions before the passing of Law No
became an issue of public interest. Given 12,431/2011.
the high tax burden, a policy based on tax Keywords/tags: Brazil, ProUni, tertiary
exemptions was attractive to the private education, private universities, tax
sector, since it would be able to pay less exemption, scholarships
taxes and places that had previously been
Scholarships 112,275 138,668 163,854 225,005 247,643 241,273 254,598 284,622 162,329 1,830,267(100%)
Full 71,905 98,698 97,631 99,495 153,126 125,922 129,672 150,870 108,686 1,036,005 (57%)
Partial 40,370 39,970 66,223 125,510 94,517 115,351 124,926 133,752 53,643 794,262 (43%)
Source: Prepared by the authors, on the basis of information from ProUni, available at http://prouniportal.mec.gov.br/.
Table II.2 : Cost of New ProUni Scholarships Granted per Year (2006-2012)
(Millions of reais)
2006 2007 2008 2009 2010 2011 2012
New scholarships granted per year 138,668 163,854 225,005 247,643 241,273 254,598 284,622
Cost of new ProUni scholarships 1,146.9 253.68
506.70 379.58 389.37 292.92 237.35
per year (in R$ and US$) (US$ 500) (US$ 110)
Source: Prepared by the authors, on the basis of information from the Federal Revenue Office and ProUni.
Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America 21
References Receita Federal (2011), “Demonstrativo
dos Gastos Tributários 2012”, August
Catani, Afrânio Mendes and Ana Paula [online] http://www.receita.fazenda.gov.br/
Hey (2007), “A educação superior no publico/estudotributario/
Brasil e as tendências das políticas de BensTributarios/2012/DGT2012.pdf.
ampliação do acesso”, Atos de pesquisa Accessed on 14 September 2013.
em educação 2, No. 3: 414-429.
Receita Federal (2012), “Demonstrativo
Corbucci, Paulo Roberto (2007), Desafios dos Gastos Tributários 2013”, August
da educação superior e desenvolvimento [online] http://www.receita.fazenda.gov.br/
no Brasil, Instituto de Pesquisa publico/estudotributario/
Ecônomica Aplicada (IPEA). BensTributarios/2013/DGT2013.pdf.
Accessed on 14 September 2013.
Somers, Patricia, Marilia Morosini, Miriam
Pan, and James E. Cofer Sr. (2013), Receita Federal (2005), “Demonstrativo
“Brazil’s Radical Approach to Expanding dos Gastos Governamentais Indiretos de
Access for Underrepresented College Natureza Tributária – (Gastos Tributários)
Students”, Fairness in Access to Higher 2006”, September [online] http://www.
Education in a Global Perspective, receita.fazenda.gov.br/publico/
SensePublishers, pp. 203-221. estudotributario/BensTributarios/2006/
DGT2006.pdf. Accessed on 14
Related websites /online material:
September 2013.
INEP (Instituto Nacional de Estudos e
TCU (Tribunal de Contas da União) (2009),
Pesquisas Educacionais) (2011), “Resumo
“Relatório de auditoria operacional:
Técnico do Censo da Educação Superior
Programa Universidade para Todos
2011” [online] http://download.inep.gov.br/
(ProUni) e Fundo de Financiamento do
educacao_superior/censo_superior/
Ensino Superior (FIES). Relator Ministro
resumo_tecnico/resumo_tecnico_censo_
José Jorge, Brasília [online] http://portal2.
educacao_superior_2011.pdf. Accessed
tcu.gov.br/portal/page/portal/TCU/
on 8 September 2013.
comunidades/programas_governo/
MEC (Ministério da Educação) (2009), areas_atuacao/educacao/
“Processo de supervisão encerrra 1,766 Relat%C3%B3rio%20de%20auditoria_
bolsas e desvincula instituições” [online] Prouni.pdf/ Accessed on 16 September
http://portal.mec.gov.br/index.php?Itemid 2013.
=86&catid=212&id=14681:processo-de-
TCU (Tribunal de Contas da União) (2012),
supervisao-encerra-1766-bolsas-e-
“Acórdão 637/2012” [online] http://portal2.
desvincula-instituicoes&option=com_
tcu.gov.br/portal/page/portal/TCU/
content&view=article. Accessed on 8
comunidades/programas_governo/
September 2013.
areas_atuacao/educacao/RELATORIO_
MEC (Ministério da Educação) (2010), PROUNI.pdf. Accessed on 16 September
“Indicadores – Educação Superior. 2013.
“ProUni – Bolsas ocupadas” [online] http://
gestao2010.mec.gov.br/indicadores/
chart_70.php. Accessed on 16
September 2013.
PNE (Plano Nacional de Educação)
[online] http://portal.mec.gov.br/index.
php?option=com_
content&id=16478&Itemid=1107.
Accessed on 8 September 2013.
PROUNI (Programa Universidade para
Todos) [online] http://prouniportal.mec.
gov.br/. Accessed on 8 September 2013.
Receita Federal (2012), “Demonstrativos
dos Gastos Tributários: estimativas bases
efetivas 2009 (Série 2007 a 2011)”, March
[online] http://www.receita.fazenda.gov.br/
publico/estudotributario/
BensTributarios/2009/DGTAC2009.pdf/.
Accessed on 8 September 2013.
22 Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America
Case 2. devised in which educational
infrastructure was to be built as part of the
their homes. This led to a high turnover of
teachers and the serious problem of the
Description La Estrellita
Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America 23
The project also sought to give institutions Contracts had to provide for clearly It was also necessary to convince
enough autonomy to take an active role in established rates on an annual basis prestigious private schools to participate
their students’ academic performance. (initially indexed each year) and in the project. They were encouraged to
Traditional public schools had no disbursement dates. To ensure that future do so for reasons of social responsibility
autonomy over teachers or over the payments were made, the concession and because the conditions of the
distribution of funds and, thus, had little agreement requires the city council’s contract protected them against any
leeway to intervene. Consequently, approval of planned future allocations financial risk. Although schools showed
services were provided in this project by throughout the term of the contract. The great confidence in their ability to produce
entities that could ensure both the council has approved allocations until good results, they were concerned for the
autonomy of the organization and the 2014. potential impact on their academic
quality of teaching. The staff members reputation of a possible adverse outcome
Likewise, quality results are scrutinized by
hired had to provide proof of their of the project. Nonetheless, certain
clearly established indicators, and there
expertise in the field of education. Schools schools with a clear social focus agreed
are clear stipulations governing the
that demonstrated their ability to develop to take part, such as those operated by
conditions for contract termination and
high-quality educational processes were religious communities or the
auditing. The approved terms for
asked to cooperate under the umbrella of compensation funds41 and several of the
contracts allow institutions to disclose the
non-profit organizations that had city’s elite schools, one of which belonged
results of students who have completed
contracts with the city’s Secretariat of to a prestigious university.
all levels from preschool to middle school
Education. Finally, the concession model
(a 12-year cycle). Once the contract Finally, operators were selected for the 25
was chosen, which ensured a sufficiently
expires, it may be extended or terminated, schools established. They began
strong tie with the city, both in terms of
depending on the results obtained by the operating primary classes in the first year
time and money (to overcome the threats
school. of the programme and high school
of political changes). This type of contract
classes in the second.
requires a public invitation to tender as a
Sustainability factors
prerequisite, to ensure transparency in the
allocation of resources and recruitment, One of the biggest challenges in Results, Outcomes and
looking to come up with the best establishing schools in targeted areas
proposals. It also provides for long-term was finding land on which infrastructure Impact of the iPPP – Key
contracts. could be developed legally. Schools had Success Factors
to be placed in areas that were populated
Investment in infrastructure was the The project began to show benefits at an
by “invasions” or illegal takeovers, and
state’s responsibility, considering that early stage: the development of
many such settlements were without
schools should become architectural infrastructure, accompanied by other
utilities and not officially a part of the city.
landmarks in the recovery of their actions performed by the state, managed
Overall, they were areas of high
neighbourhoods. It was decided that the to produce major physical transformations
population density, where it was
contracts should be signed with non- in these neighbourhoods, especially in the
necessary to find an acre of undeveloped
profit foundations, institutions capable of immediate environment of the schools.
land with access to utilities that could be
finding additional resources to provide This responded to the local
built on legally. These problems were
services. Choosing schools with administration’s city normalization and
overcome with the participation of various
outstanding results guaranteed a good integration plan. Differences in the
city agencies. The Treasury guaranteed
outcome. The public invitation to tender relationship of schools with surrounding
the funds for construction and proceeded
laid down the basic conditions for the communities were also evidenced.
to come up with the design, with clear
institutional educational project and Traditionally, public schools (with certain
specifications for teaching requirements
teaching methods. A financial proposal noteworthy exceptions) were isolated from
and architectural quality. In the process, it
was included, but it was determined that surrounding marginalized communities as
was possible to engage the best
the costs could not exceed average public a result of supposed security concerns or
architects in the country, in a time of a
sector spending per student in Bogota. difficulties faced by teachers in accessing
major crisis in the construction business.
Pursuant to Law 115 of 1994, it was remote locations. Additionally, the ability of
decided that, unlike in many public The city council had to give its approval these institutions to involve other
schools, the establishments should for future funding to guarantee the institutions allowed them to offer
operate in a single shift, to allow for resources needed over the length of the educational services to the community
extracurricular activities within the facilities concession. Here, the project met with outside normal school hours (in evenings
as well as to provide much needed the opposition of the public teachers’ and at weekends). The high demand for
attention to the surrounding communities. union. The main argument against it was these schools has shown that they have
It was established that the Secretary of the supposed privatization of education, been accepted by the community. Other
Education would administer the student although education in these schools was advantages began to emerge later. The
registration process at these institutions, free and funded by the state. Finally, well maintained nature of these buildings
using the same criteria applied to all public funding was approved. The discussion was one: while new infrastructure with the
education, where the main criteria for the did not lead to industrial action by unions, same characteristics operated under the
allocation of places is the proximity to essentially because the project did not traditional public sector model
schools. This allowed for greater entail any reduction in public education deteriorated significantly in the first year of
community involvement with the and the sites chosen represented a good use, the careful use and good
institution and minimized transportation alternative for teachers. Communities also maintenance of the infrastructure by
costs. expressed their support. concession schools was remarkable.
Finally, after a number of years, systematic
evaluations were performed. The World
24 Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America
Figure II.3 : Averages at the common core in Bogota, 2005 - 2009 References:
Concession schools vrs. all Public schools
Barrera, Felipe (2006), “The Impact of
50 Private Provision of Public Education:
Average Score Common core
Public
Concession
Bank’s42 findings (data from 2004) show Extension of the project to the country
lower dropout rates in these schools at large – reproducibility
compared to city-run public schools.
As of 2006, the project was extended
Likewise, analysis of the results in reading
nationwide, as other cities had
and math tests shows better results in
marginalized populations with similar
concession schools than in similar public
problems as those in Bogota, as a result
schools. It also shows a more rapid
of the displacement of rural communities
improvement in annual results. Juan
to cities that did not have an adequate
Bonilla,43 using data from 2008, confirms
education system to accommodate them.
the positive impact of concession schools
This addressed a request from the High
on student learning, especially in
Constitutional Court for the Executive to
mathematics, where they display results
provide quality basic services to
up to 6% better than in traditional public
populations displaced as a result of the
schools. A comparison of attainment in
Colombian conflict.
state examinations of 11th-grade pupils in
concession schools against all public Cities with high displacement rates were
schools in 2009 is shown in Figure II.3. determined. On account of the country’s
decentralized education system,
These results are very significant,
incentives were established for local
because this version of the state
authorities that wished to develop the
examination included all students in all
project, since funding of the infrastructure
schools throughout the country, under a
is provided by the central government.
law that made them mandatory.
Quality conditions were set similar to
Furthermore, since the socio-economic
those that had been developed in the
background of pupils is not considered,
schools of Bogota, but capacity was
this fulfils one of the objectives of the
extended by 30%. The local authority is
project, which is to provide quality
obliged to provide the land, which must
education to children from lower-income
be in an area where displaced persons
families. It is important to note that this
make up the majority of the population.
test serves as an entrance examination in
Service providers are guaranteed
a large proportion of the universities in the
payment on the basis of commitments by
city. Pupils graduating from concession
the central government to make transfers
schools are therefore better able to
calculated according to the number of
access higher education than the average
children served. The cost per pupil paid to
pupil graduating from a public school.
providers is equivalent to the cost of
national transfers made for the same
purpose.
Currently, 43 projects are being
developed that will serve more than
60,000 students in 20 cities across the
nation. There are four schools in operation
and others are in various stages of
progress. In January 2011, another 17
came into service.
Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America 25
Case 3. ExE is innovative through its involvement
of the private sector in the country’s public
Strategy for implementation
Human Capital in Schools: ExE seeks to
Empresarios por education system. While Colombia’s law
does not allow for-profit institutions to
improve the human capital of schools by
strengthening the skills of teachers and
la Educación provide education services, and while
private, for-profit schools are not
managers through special programmes
and initiatives, such as Ser + Maestro®,
(ExE) permitted, ExE has created an alternative
way of involving the private sector as an
Rectores Líderes Transformadores, and
Marco de Estrategicas Educativas para la
active participant in education.
Equidad (MEPE). ExE also works to
further engage individuals in the education
Geographical scope: Colombia Description system, and has a corporate volunteering
programme through which staff from
Thematic area: Education ExE focuses on primary and secondary member companies play an active role in
education in the regions where it operates: schools’ management. Finally, member
Antioquia, Atlántico, Bogota and Cundi- companies also organize cooperation
Executive Summary namarca, Bolivar, Caldas, Cauca, Quindio, programmes with schools that supply
Through Empresarios por la Educación Risaralda, Santander, and Valle del Cauca. students to go on work placements in
(Entrepreneurs for Education – ExE), the these companies.
Created in 2002, ExE fosters the active
Ministry of Education of Colombia and participation of the private sector in the Public Policy in Education: ExE liaises
regional education secretariats are improvement of Colombia’s education with local-level committees, such as
working closely with the local business system. It is influencing education policy by Comités Empresariales de Apoyo a las
community to improve education in the helping to identify goals and develop new Secretarias de Educación, as well as with
country’s public schools. The programme strategies to implement them. It is promot- the Ministry of Education’s Advisory
focuses on co-responsibility, i.e. on ing better management practices by Board, on which a number of ExE’s own
providing an opportunity for the public training school managers and their teams board members serve. Member
and private sectors to work collaboratively while also providing post-training support. It companies also meet regularly with the
to merge their strengths and bring them to is bringing innovations to teaching by Minister of Education.
bear to improve education. ExE works preparing new educational curricula that
regionally to channel and mobilize the will be used throughout the country. Lastly, Financing scheme
leadership, experience and resources of great emphasis is placed on establishing
the private sector to support effective ExE has two sources of income. The first
and implementing mechanisms for is made up of contributions received from
education policy and efficient monitoring, evaluating and enhancing the
management of schools. companies, individuals and foundations,
effectiveness of individual programmes and the other is from national or international
Progress has been made towards initiatives. All ExE programmes are carefully cooperation partnerships.
increasing the number of children in developed through the comprehensive
school in Colombia; today, 87% of boys evaluation of existing initiatives and, once During 2012, ExE raised a total of 2.4
and girls nationwide are enrolled in put in place, ExE programmes are billion pesos (US$ 181 million). Its expens-
primary schools. Nevertheless, the low continually measured for quality assess- es for the year totalled 2.2 billion pesos
quality of education remains a major ment of their ability to improve education, (US$ 166 million), generating a surplus of
hurdle to the country’s continued devel- education management and training. 205.6 million pesos (US$ 15 million).
opment and growth. The country ranked Key Public Stakeholders: Ministry of
52 out of 65 in the 2009 PISA survey, and
dropout rates remain high, with only 40%
Education, regional secretariats for Results, Outcomes and
education in 12 regions.
of students enrolled in primary education Impact of the iPPP
completing the 12th grade. Key Companies and Foundations:
Avianca, Bimbo, British Council, To achieve its goals, ExE works closely
Education levels also vary dramatically Bucaramanga Chamber of Commerce, with the government using a three-
across different regions. In rural areas, Comfandi, Vallecaucana Commission for pronged strategy to improve the quality of
which have historically been affected by Education, Compania Energetica del education, mobilize public and private
military conflict, education levels are Occidente, Consejo Privado de sector individuals from member
particularly low. Between 1996 and 2003, Competitividad, Coomeva, Federation of companies and impact public policy.
guerrillas, paramilitaries and public agents Colombian Coffee Growers, Argos, Each element of its strategy is monitored
attacked 71 schools in such areas. Public Fundacion Bancolombia, Fundacion to continually measure development,
investment in primary and secondary Bolivar Davivienda, Fundacion Cavalier progress and effectiveness, and make
(K-12) education has also been irregular. Lozano, Fundacion Nutresa, Fundacion adjustments as needed.
From 1994 to 1996, spending increased Siemens, Fundacion Sura, Fundacion
from 3.09% of GDP to 5.03%, but in 1999, Its initiatives work in various ways to
Telefonica, Fundacion Terpel, gasNatural, improve quality. For example, its Ser +
it dropped to a mere 2.74% owing to Ingenio Risaralda, Intel, Juan Manuel
austerity measures. Between 2000 and Maestro® initiative focuses on manage-
Ruiseco Vieira, Madeal, Metrex, ment and skills training for school adminis-
2004, education spending again Microplast, Qualificar, Rehabilitar,
increased, from 3.6% to 5.1%. However, trators and teachers. To date, 1,116
TransOriente, Tipiel, Surtigas, Unica individuals have been trained through the
such erratic spending leads to
inconsistent education policies, affecting Key International Organizations: programme. Its Ola Escolar initiative works
the availability of key resources. Inter-American Development Bank, British with foundations to raise money to
Council, Community of Madrid complete major infrastructure projects for
26 Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America
schools, including repairs, renovations Sustainability factors Clear and consistent time-specific
and construction work. To date, 11 such metrics must be in place to monitor the
ExE’s activities are sustainable because
major projects have been completed, status and quality of programmes’
the programme is heavily focused on
benefiting over 4,500 children across improvements. Programme evaluation
oversight. ExE closely tracks the progress
Colombia. ExE also continues to innovate should follow a timeline of, for example,
of school managers and their teams for
to make an impact on quality of education. two years, with close tracking of goals for
over two years to ensure that the
In April 2012, it launched a new pro- improvements. Firms must consistently
management training provided is put into
gramme to strengthen foreign language evaluate their own performance; this
practice. Through SIIPE, a new
teaching, and today over 400 teachers are experience should be shared with school
information system being developed by
going through the pilot programme, which officials who must also develop consistent
ExE, member companies that have
has proven highly successful in raising standards for measuring impact and
contributed to the programme are now
levels of proficiency in English, and shows progress. Through the adoption of
able to keep track of how their
great promise for future students. information technology programmes like
investments are being spent, allowing for
ExE’s SIIPE, which collects information on
Recognizing the importance of commu- transparency and ensuring that funds
public education programmes and
nity involvement for education, ExE works invested go to schools’ priorities.
increases public spending transparency,
to mobilize an active volunteer force
The focus on interpersonal exchanges is governments can monitor new initiatives
dedicated to improving management in
also critical to the programme’s and companies can track investments
schools. Today, ExE has over 440
sustainability. Face-to-face relationship made in education. ExE’s focus on
volunteers who have worked with more
building between the public and the information gathering and assessment is
than 290 educational institutions and
private sector at all levels through ExE – important to follow in exporting models for
139,000 members of the educational
from the national advisory board of the improvement.
community, including school administra-
Ministry of Education to the private training
tors, teachers, parents and students. Keywords/tags: K-12 education, school
programmes for teachers – ensures a
management, Colombia, policy
Finally, ExE endeavours to influence policy deep, long-term dedication to and
on education, including by working closely engagement with the issue.
with the national government and having References
ExE board members serve on the Reproducibility in other countries
Education Ministry’s advisory board to De Carvalho, Andre, Looi, Yiwen, Saad,
Given ExE’s recognized success in
foster progress in priority issues for Fabio, Sinatra, Joseph (2013), “Education
Colombia, the initiative has supported the
educational policy. For example, in 2011, in Colombia: Is there a Role for the Private
development of similar foundations in Latin
at the request of the Minister of Education, Sector?” [online] http://knowledge.
America. Peru and Guatemala now have
ExE partnered with McKinsey to conduct wharton.upenn.edu/article.
their own Empresarios por la Educación
an assessment of the current state of cfm?articleid=3152.
programmes that follow a similar model to
Colombia’s education relative to
that of Colombia. A number of other Latin Empresarios por la Educacion (2012),
international standards. The results led to
American countries have started to “Informe de Gestion 2012-2013” [online]
the development of a national policy that
replicate the work of ExE through similar
works to accelerate education reforms. http://fundacionexe.org.co/wp-content/
programmes, including Ecuador, Mexico,
Honduras, El Salvador, Nicaragua, uploads/2013/07/IDG2012_13-BAJA.pdf.
Key Success Factors Panama and the Dominican Republic. Empresarios por la Educacion (2013),
“Informe Ejecutivo 2013” [online] http://
ExE has helped to establish a lasting fundacionexe.org.co/wp-content/
relationship between public schools and Recommendations uploads/2011/09/Informe-Ejecutivo-2013.
the private sector in the country around pdf.
Local and national education ministries
education, which has traditionally fallen
should encourage greater private sector Mora, Jose-Gines “Public-Private
within the sphere of influence of the public
involvement in determining the plans and Partnerships in Latin America: A Review
sector. Leading figures and businesses
goals of schools and in ensuring effective Based on Four Case Studies” [online]
from the private sector have great
resource allocation. The private sector, http://www.hks.harvard.edu/pepg/PDF/
potential to inject fresh ideas into educa-
based on efficiency within a competitive events/MPSPE/PEPG-05-08Mora.pdf.
tional systems, to bring their political
market, has a long history of implementing
capital to bear to prioritize education in Novelli, Mario (2010), “Education, Conflict
quality controls and effective operations
policy-making and to provide resources and social (In)justice: Insights from
that are natural in the business environment
and fiscal support to financially strapped Colombia”, Education Review, vol. 61, No.
but are often lacking in public education. It
educational systems. Their involvement is 3. August, 271-285 pp.
also has the expertise and human resourc-
a valuable asset and much needed
es to work with schools, and should follow Novelli, Mario (2009), “Colombia’s
catalyst for improvements in public
the model of ExE initiatives like Ser + Clasroom Wars: Political Violence Against
education, particularly in management.
Maestro® and Rectores Líderes Transfor- Education Sector Trade Unions”,
Moreover, because the programme madores to provide management and Educational Review, September.
concentrates on human capital and leadership training programmes for public
interpersonal exchanges, it is able to school managers to increase efficiency and Related website / online material:
increase mutual understanding between enhance productivity. School managers
Empresarios por la Educación Website:
the sectors and to help school managers must be trained to prioritize spending,
http://fundacionexe.org.co/?page_id=65.
and teachers be more receptive to reform/build school infrastructure, and
increasing efficiency in management ensure that schools provides an environ-
systems. ment conducive to learning.
Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America 27
Case 4. Key success factors were the bottom-up
strategy followed by the Ministry of
Academic TVE programmes were
outdated in terms of providing the skills
28 Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America
technical and technological academic The Ministry of Education followed two According to the programme’s evaluation
programmes that catered for the needs of lines of action: first, the promotion, reports, its main outcomes and effects
the productive sector and fostered establishment and management of new are:
progress in territorial development and alliances, which entailed a selection
-- There has been a successful paradigm
science and technology. The alliances process based on geographic location
shift from a traditional to a “hybrid
were located in 27 geographical and strategic productive sector criteria
system”, which has broadened the
departments of Colombia and served four and a process called “Multiplication of
consensus on the economic and social
sectors of the economy: agriculture, Knowledge”, in which participating
value of competency-based technical
agro-industry, industry and manufacturing alliances provided their experience to
education, programmes coordinated
and services. other potential alliances in different
with secondary education and on
sectors and regions. The second line was
To formalize the partnership, the alliances public accountability for meeting
focused on quality assurance, including
had to acquire legal status, which entailed industry training needs.
the definition of methodologies to guide
defining their geographical scope, ranging
alliances in the drawing up and -- The engagement of industry was
from one to multiple territorial depart-
implementation of academic consistently evident through the
ments. The projects implemented had a
programmes. The Ministry of Education design, selection and incorporation of
duration of one to four years, depending
also carried out continuous quality competencies and modules into most
on when they were granted funding. All
monitoring to identify key issues requiring new academic programmes.
actors involved – tertiary and secondary
specific actions and provided technical
education institutions, regional and local -- Strong support from the private sector
assistance covering academic, financial
officials, producer associations and firms has been secured for the new
and legal aspects of the projects.
– had to join forces to design, develop, coordinated programmes, stretching
secure accreditation for, and implement To finance the alliances’ projects, the from secondary level through to
new practical, competency-based Ministry of Education established a universities, resulting in high levels of
academic programmes, which provided competitive fund of US$ 25 million and enrolment in TVE.
direct employability skills in line with granted, on average, half a million dollars
-- Students who would never have
international standards. However, the to each alliance. In addition, alliances
contemplated pursuing higher
responsibility for leading the process of were required to provide co-funding of
education, particularly in more distant
systemic change was given to the 30%; yet, in the event, their total
regional areas, have been enrolled,
managers of private educational institu- contribution was four times the amount
enabling them to join the workforce. As
tions, who were given a comparatively provided by the fund.
the available data shows, 67.2% of
small amount of funding and tight
graduates are employed in the formal
timelines, to develop new institutional
capability, manage complex processes of Results, Outcomes and sector, with an average monthly
starting salary of over US$ 500.
organizational change and engage more Impact
directly – and with greater accountability
– with the industries, markets and The alliances drew up 293 competency- Key Success Factors
communities that they served. based academic TVE programmes, of
which 263 were accredited by the Bottom-up strategy: Rather than
The 40 alliances comprised 97 unions
National Commission for Quality imposing complex policy and rule change
and/or private producer associations, 129
Assurance in Higher Education from the top, the Ministry of Education
companies, 19 research and develop-
(CONACES). These programmes opened employed a bottom-up strategy that led to
ment and innovation centres, 63 higher
up 42,958 new places in higher education a successful grass roots involvement of
education Institutions and 532 secondary
(HE), and through coordination with managers and leaders, teachers, parents,
education institutions in 245 municipali-
schools and the provision of technical and administrators, students, industry
ties. The role of the productive sector was
financial assistance to them, 175,186 associations, individual companies and
to guide the design of occupational
school students benefited from the different levels of government working
profiles according to their needs, which
programme, of which 57,111 undertook together for a common set of goals. This
were incorporated into the practical
professional technical programme has provided a sound platform for
academic programmes designed by the
modules. Table II.3 summarizes the main ongoing systemic reform.
education institutions. In turn, regional and
results by economic sector.
local governments were responsible for
supporting these partnerships through
the development of local policies and
proactive management. Several alliances Table II.3 : Results by Economic Sector
also counted on the support of research
centres and other training agencies to Agriculture Agro-industry Industry and Services
manufacturing
integrate their experience and know-how
concerning TVE. --10 alliances --7 alliances --13 alliances --10 alliances
--48 programmes --40 programmes --84 programmes --95 programmes
--31,395 secondary --35,207 secondary --43,163 secondary --65,420 secondary
students attended of students attended of students attended of students attended of
which 12,497 were in which 15,468 were in which 10,806 were in which 18,340 were in
coordinated coordinated coordinated coordinated
programmes programmes programmes programmes
--9,134 new places in HE --7,806 new places in HE --8,987 new places in HE --17,031 new places in HE
Note: Of these academic programmes, 31% are classified as virtual or distance education.
Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America 29
Budget autonomy: The Ministry of Reproducibility in other countries Another recommended action is the
Education provided the autonomy for the development of an adequate policy
Although this initiative was launched and environment including the provision of
alliances to freely allocate the funds
implemented within a particular policy mechanisms and tools such as
granted, as long as they followed the
environment – i.e. ad hoc legislation, methodologies, guidelines, standards,
regulations set out by the Ministry of
political support, and institutional monitoring and evaluation systems and
Education.
arrangements and mechanisms for institutional arrangements. These are
Regular institutional strengthening and reform assistance and sustainability – that essential for ensuring that partners carry
monitoring and evaluation: In addition to conditions its replication, the initiative’s out their activities in accordance with the
the monitoring and technical assistances principles could be followed in the existing technical standards and financial
provided by the Ministry of Education, the formulation of other countries’ innovative regulations.
alliances themselves made significant partnership projects. A short discussion
efforts and invested considerable follows: A permanent communications channel
resources in professional development between the government and the
Following a bottom-up approach is participating parties also should be
programmes to support their members in
strategically important for triggering established to ensure that timely
key areas. The Ministry of Education also
coordinated actions among main adjustments can be made and additional
required the alliances to carry out
stakeholders while ensuring the neces- support can be provided to the partners.
self-evaluations, which enabled them to
sary legitimization of the project’s
take control of their actions and Lastly, to ensure the sustainability of the
objectives. Actions requiring inputs from
outcomes. partnerships, governments should
the target population or potential recipi-
ents can benefit most from this approach. establish from the inception of the project
Sustainability factors the funding sources mechanisms,
Decentralized resource allocation: Given including the partners’ co-funding.
Social benefits of TVE: To ensure a
its contribution to achieving efficient and
growing flow candidates enrolling in TVE, Keywords/tags: Technical and vocational
effective resource allocation, this principle
the Ministry of Education implemented a education, partnerships, Ministry of
should be replicated in public-private
dissemination and advertising campaign Education of Colombia
partnerships with the necessary
entitled “Pursuing a career in a technical
monitoring and accountability measures.
or technological sector gives you a place
in life”, that informed school graduates of Self-evaluation culture: The decision of the References
the potential benefits of pursuing these Ministry of Education to invest the
careers. By working on the demand side, alliances with the responsibility for Box Hill Institute (2009), “Proyecto
the Ministry of Education has contributed carrying out their own impact evaluations Fortalecimiento de la Educación Técnica y
to overcoming students’ reluctance to opt enabled them to take control of their Tecnológica en Colombia: Evaluación de
for these careers. actions and outcomes. The availability of Medio Término”, unpublished.
methodological guidelines and training
Institutional development and good Box Hill Institute (2011), “Proyecto de
facilitates replication of this feature in other
governance: The programme’s Fortalecimiento a la Educación Técnica y
initiatives and places.
component “Institutional strengthening of Tecnológica en Colombia.
the Ministry of Education and higher Leadership and institutional development: Sistematización y Prospectiva”,
education governing bodies” developed These actions should also be replicated in unpublished.
institutional capacity within the Ministry of any other partnership initiative because of
Forero Cárdenas, M (2012), “Educación
Education and local education authorities, their crucial role for providing an adequate
Técnica y Tecnológica para el Empleo”,
and supported the process of policy environment and regular support to
paper presented at the Ibero-American
decentralization of higher education the partnerships in their tasks execution.
Seminar on Vocational Training and
institutions that were still attached to the
Education, Lima, 23-24 April.
Ministry of Education. Thus, the alliances
counted not only on the support of the Policy Recommendations Ministerio de Educación Nacional (2010),
Ministry of Education in terms of technical “Informe Final Proyecto de Fortalecimiento
assistance but on existing key institutional As a first concrete action to embark on an a la Educación Técnica y Tecnológica en
arrangements that set an adequate policy innovative partnership, governments Colombia”, unpublished.
environment, such as quality assurance should assess the advantages of pursuing
systems, organization networks and partnerships to tackle specific Related website / online material:
policy guidelines for major programme development issues as was carried out in
this case in Colombia, given the significant https://www.dnp.gov.co/CONPES.aspx
reforms.
investments of material resources, efforts
http://www.mineducacion.gov.co/1621/
A planned second phase: Since the and time required for partnerships
w3-propertyvalue-48167.html:
programme was considered a pilot, the formulation and implementation. This step
Fortalecimiento de la Educación Técnica
Ministry of Education integrated part of its is also crucial for ensuring government
Tecnológica – Ministerio de Educación.
activities into its regular work programme, ownership.
which ensured budget funding for
continuing and enhancing the work of Second, ex ante conversations among
alliances. the potential partners are necessary to
identify to what extent their interests are
aligned and the extent of their institutional
and financial capacity to carry out actions
according to the objectives and standards
set for the project.
30 Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America
Case 5. A look at women’s economic autonomy in
the region shows that one in three women
In sum, there are numerous studies both
within and outside the region that take
Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America 31
The project adopted a participatory Four technical meetings took place in Key Success Factors
implementation strategy based on 2013, each with the participation of
constant communication with between 30 and 40 representatives from Throughout the implementation of this
stakeholders and the establishment of the public and private sectors. The initiative, governments and ECLAC have
dialogue and consensus-building which meetings allowed firstly a discussion of made unstinting efforts to engage in a
harnesses the knowledge and experience the current situation and available process of continuous learning by taking
of both the public and the private sector in programmes and support, and on board lessons learned in the
the selected countries, bringing together subsequently engaged stakeholders in workshops and seminars that examine
different disciplines, institutions and social working groups to develop and design an the specific characteristics, contexts and
actors. The aim of including a intervention strategy to improve the institutional constraints in each country.
multidisciplinary approach, entailing a economic situation of women in Costa Key success factors identified have been
public-private partnership, favours the Rica. An implementation plan for the the necessity to engage the private sector
adoption of common approaches and strategy is now being finalized. In parallel in the assessment and design of public
strategies and creates synergies. to this work, a survey was launched with policies in which all sectors have a role,
the support of women’s associations to reinforcing the need for dialogue and
In Costa Rica, the principal stakeholders
map the situation of women consensus building both within different
involved from the public sector are the
entrepreneurs, and provide these women sectors of the government and between
Ministry of Economy, Industry and Trade
with a voice in the design of the public the government and the private and the
(MEIC) and the National Women’s Institute
policy recommendations. Over 800 non-profit sectors. The engagement of
(INAMU), which, together with the Ministry
responses were received and analysed. different stakeholders in the development
of Agriculture, have been leading the
The progress made in Costa Rica was of new policy recommendations is key to
project implementation. During the course
shared with other countries at the XII their ownership. Throughout this process,
of the project, the Ministry of Science,
Regional Conference on Women in political leadership by the leading
Technology and Telecommunications
October 2013. Future activities include the ministries has proved to be key in
(MICITT) and the Ministry of Labour and
design and launch of a Web portal to ensuring that all actors participate and are
Social Security also joined the initiative.
centralize all the information relating to engaged, as well as for the sustainability
From the private sector, key
policies and programmes strengthening of the dialogue and proposals developed.
representatives include private companies
women’s autonomy in Costa Rica, with
such as Wal-Mart and Intel, as well as the
the aim of making it more accessible to Sustainability factors
national chamber of commerce, the
potential beneficiaries.
chamber of industry and the chamber of By employing a strategy that engages all
technology, as well as associations of The project in El Salvador was launched relevant stakeholders from the public and
women leaders and entrepreneurs and on 2 May by the Minister of Economy private sectors, the initiative has built trust
the Business Association for together with the National Institute for and led to ownership of project objectives
Development. Women’s Development (ISDEMU). Since by the participating actors, and has struck
then, three technical meetings have taken the right balance between processes and
In El Salvador, the initiative has been led
place with 40 representatives of different results. The project aims to promote
by the Ministry of Economy and the
ministries as well as civil society. The sustainability on three levels: political,
National Institute for the Development of
meetings served to give visibility to the through the Regional Conference on
Salvadoran Women (ISDEMU) as well as
work being done on women’s economic Women in Latin America and the
the Technical Secretariat of the
empowerment and improve coordination Caribbean; technical, by strengthening
Presidency, which joined a few months
among different sectors. As a result of national capacities of both the public and
into the project. From the private sector,
work carried out at the meetings, a report the private sector and their coordination,
the Chamber of Commerce and Industry
has been drafted and is in the process of as well as ensuring knowledge sharing;
and a number of key civil society actors
being published. The meetings also and social, expressed through the
have become involved.
served to secure a national-level participation of organizations of women
agreement including key policy workers and entrepreneurs which
Results, Outcomes and recommendations on how to increase promotes the continuity of the project and
women’s economic autonomy. Progress its results.
Impact of the iPPP made was shared with other countries at
the XII Regional Conference on Women in
In Costa Rica, a first meeting with
October 2013.
approximately 40 representatives of the
public and private sectors was held on 18
February 2013, which opened the
dialogue on the role of women in the
Costa Rican economy and some of the
key barriers they face in finding quality
employment. The project was officially
launched on 10 May by the Minister of
Economy and Minister of Agriculture
together with INAMU, following a high-
level dialogue between these ministries
and key selected representatives of the
private sector.
32 Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America
Reproducibility in other countries The project also revealed the need to
strengthen official statistics on women’s
Originally, the project was planned to be
economic autonomy, especially with
implemented in Costa Rica and El
regard to economic indicators and data
Salvador, with a view to sharing lessons
and key issues such access to credit,
learned with other countries in Central
productive assets including land and
America through the Council of Ministers
technology.
of Women of Central America and the
Dominican Republic (COMMCA), part of
the Central American Integration System References
(SICA). Over the course of 2013, the two
participating countries shared their
experiences at the XII Regional Related websites / online material:
Conference on Women in Latin America See [online] www.cepal.org/cgi-bin/
and the Caribbean, held in October 2013 getProd.asp?xml=/mujer/noticias/
in the Dominican Republic, as well as the noticias/7/50077/P50077.xml&xsl=/mujer/
related subregional preparatory meetings tpl/p1f.xsl&base=/mujer/tpl/top-bottom.
which took place in May 2013. As a result xslt
of the shared experience of Costa Rica
and El Salvador, two countries – Panama See [online] www.eclac.
and Peru – specifically asked ECLAC to org/12conferenciamujer/noticias/
replicate the experience. In Panama, paginas/0/49920/Mayi-Antillon-
project activities began in October 2013 presentacion-mesa-redonda-DP-CRM_
and the first meetings of public and private XII.pdf
sector representatives took place in See [online] www.elfinancierocr.com/
January and February of 2014. In Peru, pymes/Costa-Rica-estimara-produccion-
the project was launched in November nacional_0_207579939.html
2013 with a cross-sector commitment
signed by the Ministers of Women and http://www.mimp.gob.pe/index.
Vulnerable Populations, of Productivity, of php?option=com_content&view=article&i
International Commerce and Tourism, of d=4504:ministerio-de-la-mujer-presento-
Labour and Employment Promotion, and proyecto-que-favorece-empoderamiento-
of Economy, who agreed to work together y-autonomia-economica-de-la-
to implement the initiative, and the first mujer&catid=54:noticias-en-
bilateral meetings with the Chamber of texto&Itemid=445
Commerce of Lima, the Association of
Exporters and the Association of Women
Entrepreneurs of Peru.
Policy Recommendations
The response from governments
participating in the XII Regional
Conference on Women was very
supportive of this initiative, to the extent
that a specific request was included in the
Consensus of Santo Domingo in which
countries: “Urge the Economic
Commission for Latin America and the
Caribbean, through the Division for
Gender Affairs, to carry forward action to
promote production development and
women’s economic autonomy by raising
the profile of women engaged in
production activities and designing and
implementing an integrated, inter-agency
and intersectoral approach for the
support of women entrepreneurs, women
producers and businesswomen within
value chains” (Article 68).
Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America 33
Case 6. Global Description reluctant to invest the time and money
required to support personnel seeking
34 Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America
workforce. Skilled administrative available to any applicant meeting the Sustainability factors
personnel are required to fill critical needs selection criteria of both parties. For No negative environmental concerns are
positions in ports, business centres and general applicants, Cornell and IFARHU anticipated as a result of this programme.
free trade zones. While Latin America’s have each agreed to co-sponsor 50% of a However, the partnership will provide
economic inequalities are among the student’s tuition expenses. students from Panama with access to a
most extreme in the world, and are wide range of research and teaching
The innovative nature of this PPP is rooted
reflected in very poor education for all but resources at Cornell focused on
in the distribution of financial and
the wealthiest, Panama has even more environmental sustainability, including the
operational risk across both stakeholders
severe challenges. As Mattson and Teran Atkinson Centre for the Environment, the
(Cornell University and the Government of
argue, no other Latin American nation Johnson Graduate School of
Panama). Financial co-investment
“combines greater wealth than several Management’s Centre for Sustainable
expanded graduate educational
European nations and almost double-digit Global Enterprise, and the Cornell NYC
opportunities for low-income and
economic growth with one of the worst Tech Campus. This will enable students to
government applicants. In addition to
education systems in the world. Except learn and implement sustainability best
financial co-investment, from an
Panama.” practices in Panama and throughout Latin
operational perspective, Cornell created a
specialized degree programme for civil America.
Innovative model of iPPP
servants that was tailored to Panama’s
In the Cornell University-Government of needs, and adjusted the time to degree Reproducibility in other countries
Panama model, Cornell developed a completion from four to three semesters Reproducibility in other Latin American
memorandum of understanding that for civil servants. countries is anticipated to be high. Many
established two degree tracks for countries either maintain a government
obtaining the Master’s degree in public agency or office similar to IFARHU that is
administration (MPA) from the Cornell Results, Outcomes and responsible for overseeing grants for
Institute for Public Affairs (CIPA). The first Impact of the iPPP higher education, or work closely with
track is designed for civil servants in the non-governmental organizations that
Panamanian government with five or The Cornell University-Government of
sponsor such programmes. Cornell is
more years of relevant experience in Panama model was approved by both
currently in discussions with potential
public service. Applicants through the civil parties in April 2013. After the agreement
government or NGO counterparts in
service track receive full tuition was signed by President Martinelli and
Costa Rica and Brazil to replicate this
sponsorships through the Institute for the representatives of Cornell University, a
programme. A major obstacle is funding:
Training and Use of Human Resources delegation from Cornell travelled to
not all governments will be able to commit
(IFARHU), a government agency that Panama to meet with IFARHU
to the type of funding arrangement that
provides scholarships to citizens of representatives and finalize recruitment
was developed in the Cornell University-
Panama seeking undergraduate and and selection logistics. Parties anticipate
Government of Panama model. In these
graduate degrees abroad. CIPA has the first cohort of students from Panama
cases, a triangulated funding approach
committed to funding an internship or to begin their MPA course in the first
involving government, the private sector
research project undertaken between the quarter of 2014.
and academia might be required to
first and second years of study, as well as sponsor students. Other potential
an assistantship that would enable civil obstacles to reproducing this programme
servants to support advanced research Key Success Factors may emerge in the MOU development
undertaken by Cornell faculty members. stage. There were a number of legal
Key success factors include shared
Given Panama’s interest in developing values of flexibility and efficiency, as well issues concerning liability, intellectual
human capacity in technology and as a comprehensive buy-in among property and controlling jurisdiction that
infrastructure, CIPA created a specialized, stakeholders. Operational flexibility required resolution before Cornell
intensive degree focus that provides allowed both parties to make University counsel and counsel from the
training in transportation project design, accommodations and concessions to Government of Panama would finalize the
management, and evaluation. ensure the cost and effectiveness of the agreement. There are two potential
Traditionally, the MPA degree at Cornell is partnership. Because this initiative was sources of incompatibility in this regard:
a two-year, four-semester course of spearheaded by President Martinelli, incompatibility between academic and
studies. In this programme, applicants aspects of the MOU that were public sector protocols on these issues,
through the civil service track are able to controversial from the government’s and cultural incompatibility between the
complete the degree in three semesters of perspective were efficiently negotiated United States and counterparts on these
coursework, with the fourth semester and resolved. Likewise, internal issues.
spent completing an in-service research stakeholders at Cornell, including
project in Panama. This three-semester university administration, CIPA
option was developed as a means of administration and area studies
making the arrangement more cost- programmes, worked collaboratively to
effective for the Government of Panama, ensure an equitable distribution of
and reducing the amount of time civil benefits and risks. Administrative issues
servants spend out of service. Cornell and that remained problematic were
IFARHU established a cap of six students addressed by peer-level collaboration
per year sponsored through the civil between Cornell and IFARHU
service track. In addition to the civil representatives.
service track, Cornell and IFARHU
developed a general application track
Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America 35
Policy Recommendations References
Cornell University and the Government of Bartik, Timothy and George Erickcek
Panama have taken the lead in developing (2008), The Local Economic Impact of
an innovative global university partnership ‘Eds and Meds’: How Policies to Expand
model. If designed in the spirit of Universities and Hospitals Affect
distributing benefits and risks equitably, Metropolitan Economies, Washington,
these partnerships can make tremendous D.C., Brookings Institute.
contributions to human development and
De la Torre, Augusto, Eduardo Levy Yeyati
local capacity building. Most of the
and Samuel Pienknagura (2013), “LatinAm
challenges for developing new
ericaandtheCaribbeanasTailwindsRecede
partnerships of this kind can be resolved
:InSearchofHigherGrowth”, LAC
by developing shared frameworks
Semiannual Report, World Bank,
between universities and government
Washington, D.C.
partners on potentially controversial legal
issues. Cornell’s Office of the Vice- Devol, Ross (1999), America’s High-Tech
Provost for International Affairs and Economy: Growth, Development, and
Cornell University counsel have Risks for Metropolitan Areas, Santa
developed a range of useful resources for Monica, Milken Institute.
understanding academic concerns
Lennox, L. (2013), “CIPA Spring News
regarding the risks of these partnerships:
Letter” [online] http://www.cipanewsletter.
http://www.international.cornell.edu/
com/cipa-forges-historic-agreement-with-
international-agreements. Online resource
panama/.
gateways can promote best practices and
common legal frameworks, and Martinelli, Ricardo (2013), Development in
counterparts can sponsor local or Panama, CIPA Colloquium, Ithaca, NY
regional conferences to provide academic [online] www.cornell.edu/video/panama-
administrators and government president-ricardo-martinelli-at-cornell.
counterparts the opportunity to network
Martinelli, Ricardo (2013), “Round Table
and deepen relationships.
Cornell Program Infrastructure Policy”.
Since the availability of funding is
Mattson, S. and A. Teran (2011),
inconsistent across universities and
“Education trap threatens Panama’s
governments, counterparts should
economic boom”, Reuters [online] www.
actively solicit co-investment from private
reuters.com/article/2011/09/06/us-
donors. The next development in this type
panama-education-
of PPP might be a triangulated model,
idUSTRE7857D420110906.
with students jointly sponsored by
government, the private sector and Roy, Roberto (2013), Round Table
universities. Furthermore, government Discussion on Infrastructure with Cornell
stakeholders should think strategically Faculty, Panama Presidential Palace,
about their investment in these Panama City.
partnerships to ensure high return. For
Shaffer, David and David J. Wright (2010),
example, counterparts might make
How Higher Education Institutions are
funding conditional on the student
Working to Revitalize Their Regional and
returning to their native country (to prevent
State Economies, Albany, Rockefeller
human capital flight). Above all, this model
Institute.
requires an entrepreneurial spirit and
comprehensive buy-in among Skorton, David (2008), “Higher Education:
stakeholders to overcome the often One of the U.S.’s Strongest Diplomatic
significant bureaucratic and logistical Assets,” Cornell Alumni Magazine.
obstacles to partnership.
Trani, Eugene (2010), The Indispensible
Keywords/tags: Education, higher University, Lanham, Rowman & Littlefield.
education, Panama, human capacity
building, workforce development,
public-private partnership
36 Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America
Case 7. Digital of 5 December 2007, which was passed
as a result of this reform, seeks to foster
The Uruguayan health system underwent
major reforms in terms of its design and
Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America 37
Achieving these goals will facilitate Innovative public-private partnership basis and are grouped into a federation
coordination of the FSD project with the (PPP) model that is governed autonomously with
different public and private stakeholders geographical decentralization of the
The project provides for the implementa- executing units across the country.
involved in electronic health initiatives in
tion of three information systems in the
Uruguay. This initiative is therefore aligned The vision of reform process is to integrate
FEMI care network: the telemedicine
with one of the main pillars of the health the two systems gradually, with a closer,
network and balanced scorecard (for all
reform system: complementarity and more complementary relationship and
FEMI institutions) and the electronic clinical
integration of services. with the community, education centres
record in the emergency, epicrisis and
Uruguay currently has a population of outpatients departments of five FEMI and non-governmental organizations.
3,286,314, of whom 40% live in the capital institutions and two ASSE hospitals. Competition for customers will be on the
Montevideo and 60% in the interior. The Capacity building will be carried out at both basis of adjustments and mutual benefits,
National Integrated Health System of ASSE and FEMI to provide operational which will improve, through concerted
Uruguay is made up of subsectors support to the units set up during the actions, social solidarity and the
comprising service providers from the functioning phase and to integrate the rest responsibility of the system in terms of
public and private sectors. The network of of the executing units that did not take part providing healthcare.
the Public Health Services Administration in the pilot experiment into the system.
(ASSE) is the principal public entity in the Implementation strategy
The electronic clinical record system
country and comprises hospitals, health
generates data that serve as inputs for The use of new information tools, among
centres and polyclinics. It provides health
administrative and clinical management. them the electronic clinical record,
services for a population of 1,192,580, or
The care facilities in administrative centres modifies the current clinical care
approximately 36% of the total population.
in the rural interior and in core centres in processes and in many cases involves a
The private sector includes non-profit
other rural areas will share human, reengineering of processes that is not
organizations, with 47 comprehensive
physical and technological resources so expected to complicate medical
prepaid healthcare providers, 12 of which
that the clinical records will be maintained procedures. Experience in this regard
have their headquarters in Montevideo
in a standardized, user-friendly way. suggests that when such projects fail, it is
and the rest in the interior. Twenty-three
usually because health professionals
belong to FEMI, which has 800,000 users Since national integrated health system refuse to adopt the tools or because the
or 25% of the population of the interior, users can, voluntarily or depending on the institutional guidelines are too weak to
who are served by a network of 34 social insurance system, participate in the push through the necessary change.
general hospitals, 87 polyclinics and a system in a variable or ad hoc manner,
referral centre in Montevideo, which they will have a unified electronic health To address this issue, the FSD Project
caters for more complex diseases. record belonging to them in any hired a consultancy to outline the strategy
eventuality. This will enable analysis of for implementing the change, define the
Currently, FEMI has eight institutions that
epidemiological indicators or indicators of organizational context in which the project
use electronic clinical records in the areas
the provision of services and costs would be developed, detect strengths
of emergency care, epicrisis and
relating to the same population or and possible interferences or obstacles,
outpatients services, and two public
geographical area. This is innovative since identify appropriate components for use
hospitals that use them to provide
there are currently at least two different in handling the change, and prepare
emergency services. The entire care staff
large-scale data systems used in the guidelines for communication and human
of the 10 emergency services were
public and private sectors, without management of the change. In light of
trained to use them, and two months after
mentioning public and private sub- these recommendations, a
the system was set up in the emergency
systems that are not covered by this multidisciplinary team was formed with
facilities, it had met the approval of 80% of
initiative. members of ASSE and FEMI and the
senior care staff. Furthermore, a user
technological partner. This team included
survey of the electronic clinical record The institutions involved are, on the one members with different profiles: health
system showed that 87% of the 143 hand, public hospitals, that essentially managers with decision-making power;
doctors and nurses surveyed responded provide state-financed, hospitalized technical directors; doctors; computer
that they were satisfied or very satisfied. healthcare and are open to the general programmers; project directors; medical
public without discrimination. They record experts; and development and
operate as a social, solidarity-based implementation teams that used
public service and include training recognized project management
services at the Faculty of Medicine of methodologies to carry out the survey
Uruguay, and have the same exercises of the care processes, adapted
characteristics as hospitals elsewhere in the systems to the processes in question,
Latin America. The FEMI institutions, on validated progress and initial production
the other hand, trace their origins to the methods, and provided training in the use
medical unions of the country’s interior of the systems to training staff, end users
and have been developed over the past and first-level medical staff.
60 years. FEMI health centres provide
hospitalization and outpatients’ services
and are funded by more than 70% by the
national integrated health system. They
are comparable to social security systems
regulated by sectoral laws and
agreements signed with the state. All
these institutions operate on a non-profit
38 Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America
Financing is provided within the Key Success Factors Sustainability factors
framework of the project through locally Sustainability is understood to be the
generated funds of the 23 FEMI member Success will depend on whether capacity to continue providing services
institutions and non-refundable loan funds technology that may be effective in other and initiatives generated under the FEMI
from the IDB Multilateral Investment Fund sectors of the society proves efficient and Digital Health Project after the support
(MIF). The operation amounted to US$ 3 effective in the health sector, and provided by FOMIN/IDB comes to an end.
million, financed on an equal basis by the particularly in emergency services. The project design provides for the
two entities. Once the electronic clinical continuity and maintenance of a coordina-
The effectiveness of the proposal is
record provider had been selected, tion unit, wholly financed by the central-
contingent on, among other things, its
through an international public invitation to ized FEMI office, as a benchmark for the
acceptance by the health system and
tender, and once the agreement for maintenance and future development of
society, and on its impact on social
installation in the two public hospitals had this new technology. This unit will provide
well-being based on knowledge of actual
been signed, the latter pledged to provide planning, evaluation and security functions
production and consumption of services,
US$ 150,000 in kind. These contributions and will also be responsible for selecting
costs and the epidemiological map. Given
translate into man-hours of the medical and including those standards that allow
that, on average, 25% of daily
and technical staff tasked with analysing for maintenance of integration through
consultations in the system are with the
care processes, adapting the original interoperability and medical terminology.
emergency services, the information
systems to make them compatible with
provided is significant for setting priorities In this regard, the focus should be on
the electronic clinical record, validating the
and earmarking resources. This building technical, institutional and
electronic clinical record system, training
undertaking may be expected to be financial capacities and on coordinating
trainers and end users, and providing
effective provided that this finding can be networks to give continuity to the
first- level support for medical staff.
integrated into clinical and administrative processes and maintain existing benefits.
However, no account was taken of the
management and that this knowledge
hospitals’ requirements to adapt their The project’s legal viability and expansion
enables improvement in the quality of care
facilities to accommodate rented are governed by the regulatory framework
and the security of the patient at a
infrastructure and to install networks, existing in the country. Thus, a legal
reasonable or sustainable cost.
equipment or cables; the total estimated framework must be developed to provide
contribution in kind for this project will, in The technology selected is sufficiently guarantees and safeguard the rights of
fact, be twice as high. flexible, globally acceptable and should citizens and establish clear rules in the
prove to be sustainable over time. relations between the different social
Acceptance by users is linked to the actors. This framework includes Decree
Results, Outcomes and academic training mechanisms that can No 396/03 of September 2003, which
Impact be put in place to help train health deems the electronic clinical record to be
professionals. The FEMI Digital Health valid in legal medical terms; Law 18.331 or
Multidisciplinary teams made up of Project (PFSD) is currently developing a Protection of Personal Data and Habeas
professionals and technical staff from 180-hour medical information diploma as Data Act, which recognizes the right to the
both the public and private spheres have a pilot experiment for FEMI staff. A new protection of personal data; Law 18.600 of
successfully been integrated. To date, the module open to members of both the September 2009, which recognizes the
proposed objectives of setting up the public and private system is being admissibility and legal validity of the
systems in the two public hospitals have proposed for the coming year with an electronic document and electronic
been successfully met, as recognized by option to upgrade the diploma to a signature; and Article 72 of Law 17.930
the ASSE and MIF authorities. postgraduate diploma or a Master’s. establishing the Electronic Government
The two organizations have decided to FEMI considers that the economic and Information Society Agency (AGESIC),
extend the pilot experiment to their other support and knowledge transfer received which manages the national project
institutions. FEMI is committed to from FOMIN/IDB, along with the actual referred to as Salud.uy, whose specific
pursuing this project and is in the process project management, has been a key goals include the definition and introduc-
of drawing up a sustainability plan. ASSE factor in the results obtained and brings tion of a single electronic clinical record.
has presented an expansion project to the credibility and trustworthiness to the The economic and financial sustainability
rest of its emergency services and is organizations (and related entities) that of this Electronic Clinical Record is
confident that assistance and support will facilitate the promotion of the benefits of ensured by FEMI through the actual
be forthcoming from MIF. this technological implementation and contributions of its institutions, plus 3% of
If both of these expansion projects come organizational reform. the amount paid by the national health
to fruition, emergency clinical records will fund to health service providers with ICT
be successfully established at 57 hospital projects validated by the Ministry of
facilities in the country, divided between Public Health. Under ASSE, a project
Montevideo and the interior, covering with funding from FOMIN/IDB has been
approximately 60% of the national approved for the extension of this
population. experiment to the rest of the ASSE
emergency network.
A technical work team has been devel-
oped with knowledge and skills and
systematized, well-documented method-
ologies. It applies best practices in the
management of electronic health projects.
Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America 39
Reproducibility in other countries -- Suppliers of reliable and secure
systems that guarantee market
The process followed during this project
permanency should be selected.
represents the most logical and most
widely accepted course of action both Keywords/tags: Improvement of
nationally and internationally, as reflected healthcare processes, connectivity,
in international standards and best semantic and syntactic interoperability,
practices of health project management. medical knowledge, quality, efficiency,
This project requires a decision to be security, social responsibility, standards,
taken at the government level regarding medical terminology
use of these technologies, a conviction of
the possible improvements ICTs could
bring, and it must be technically feasible References
given the communication networks and
integration needs. Related websites / online material:
Other experiences of innovative public- See [online] http://www.eclac.cl/socinfo/
private partnerships fostering the use of noticias/paginas/3/44733/newsletter12.
ICTs in the health sector are related to the pdf
development of telemedicine virtual
networks47 in the region. These help to See [online] http://sos.ucv.ve/ and http://
broaden the coverage and quality of www.eclac.cl/publicaciones/xml/7/49897/
health and sanitary specialized SOSTelemedicinaVenezuela.pdf.
knowledge as well as improve research See [online] http://www.sueiidiss.org
and capacity building. Two examples are
provided by the “Red Universitaria de
Telemedicina (RUTE)” network in Brazil
and the “SOS Telemedicina”48 network in
the Bolivarian Republic of Venezuela,
involving government authorities, public
university hospitals and health centres,
academic institutions and the private
sector.
Policy Recommendations
-- Analyse current or historical information
systems and health records in
epidemiological, demographic and
economic terms and their cost, as
measured by effectiveness, efficiency,
quality and security indicators.
-- Governments and public authorities
need data, information and knowledge
that enable them to prioritize health
needs and allocate resources.
-- Governments should assume
responsibility for ICT governance and
making the corresponding
recommendations and regulations.
-- Criteria used to select technology
should be consistent with those used
by academic bodies.
-- ICT user training of a sufficient quality
and quantity should be provided at
different operative levels.
-- The purposes of these technologies
should be communicated to all levels.
-- Long-term, sustainable financing
should be secured in advance, since
these are long-term projects.
40 Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America
Case 8. vulnerable to earthquakes and other
natural disasters. Secondly, it is innovative
University of Central America, UCA) and a
local non-governmental foundation, the El
Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America 41
The Japanese government, through JICA, Furthermore, in collaboration with El shared experiences of recent tragic
has facilitated this initiative throughout the Salvador’s “Chagas disease project” and earthquakes became an underlying
process of formulation, execution and JICA, the TAISHIN project also introduced driving force in uniting them in this
progress monitoring. It assisted partners the technique of mixing cement plaster triangular cooperation programme. In El
in both managerial and financial aspects into adobe, which is effective in preventing Salvador, the aftermath of earthquakes
of the initiative including the provision of the insect that spreads Chagas disease specifically highlighted the reality of
necessary equipment and facilities for (the “kissing bug”) from encroaching into low-income groups residing in social or
Taishin experiments, by sending experts the walls and floors of adobe houses. The self-constructed housing as the most
from Mexico, Peru and Japan and inviting introduction of such an improved, yet affected population due to the inadequate
Salvadorans for short-term training as well low-cost technique to make adobe construction methods used.
as long-term fellowships. Partner building methods more earthquake- The need for the Taishin programme’s
institutions in Japan include the Building resistant and repellent to insects is know-how was then stressed at the
Research Institute, the International particularly beneficial for low-income emergency consultative group meeting for
Institute of Seismology and Earthquake groups. Following the satisfactory results reconstruction, and repeated with the
Engineering (IISEE). Some national of these pilot projects, manuals and formulation and launch of a national
universities have also been engaged in the training materials on the quake-resistant development plan after the meeting. At
programme with the provision of training construction methods were developed the meeting, donors including the IDB
opportunities in Japan as well as the and distributed widely. Several training pledged support, which included policy
fellowship opportunities in partnership events for their dissemination have also actions on housing issues with the
with JICA. been organized. provision of temporary housing and other
In addition, there were other notable related schemes such as special housing
loans. The policy environment
Results, Outcomes and achievements, which were not fully
surrounding this initiative was further
envisaged at the beginning of the project.
Impact of the iPPP One such achievement was the consolidated by the formulation and
organizational change in the management launch in 2004 of “Safe Country (2004-
All planned activities for the transfer and
of the housing sector. Partly inspired by 2009)” a coherent government
adaption of Taishin assessment
this tripartite programme, the Ministry of development plan, soon after the start of
technology to the National University of El
Housing and Urban Development’s Taishin. The plan clearly stressed the
Salvador and the UCA have now been
Bureau of Housing (VMVDU), the national importance of the role of the state in
completed. These two universities are
policy-maker in the housing sector, ensuring adequate access to houses for
now capable of carrying out scientific
voluntarily took the initiative to establish the people in low-income brackets. The
seismic capacity assessments using
the Department of Standard Formulation demand for Taishin know-how was also
large-scale laboratory equipment and
and Investigation (UNICONS) and the El evident among implementing
facilities provided by Japan. As part of the
Salvador Construction Institute (ISC), with organizations. One such indication was
Taishin programme, in collaboration with
a view to modernizing the country’s the construction of a building by the UCA,
FUNDASAL, the two university
construction industry. UNICONS is which could accommodate the facilities
laboratories have already finished testing
currently reviewing relevant regulations for the experiments using its own
the four low-cost housing construction
and drafting standards pertaining to the financing. In this case, Mexico played the
methods. It is also noteworthy that in
four construction methods. role of supplying knowledge to El
2012, both universities established a
Salvador via CENAPRED, its national
Master’s degree programme in
disaster prevention centre.
earthquake engineering, which takes Key Success Factors
advantage of the capacity and expertise
Sustainability factors
the universities have built up through the The key factors behind notable
Taishin initiative. Although the adoption of achievements of the Taishin initiative Earthquake-resistant low-cost housing
these programmes is not wholly include: the strong demand for know-how based on the Taishin model is highly
attributable to Taishin, this nevertheless matched by the provision of appropriate sustainable because committed public
shows that the universities are now in a knowledge; the engagement of major key and private partners, together with
position to offer such postgraduate stakeholders committed to the cause; universities and NGOs, are collaborating
programmes in a field closely related to and institutional innovations for effective through an established institutional
that in which Taishin provided its knowledge transfer and mutual learning. set-up. Furthermore, Taishin construction
expertise. methods are now about to be enshrined
The demand for know-how was matched as standards by Vice-Ministry for Housing
Secondly, the project succeeded in by the timely and adequate provision of and Urbanization. Taishin’s commercial
refining the four low-cost housing arrangements for exchanges of relevant sustainability is facilitated by these
construction techniques to make them experience. The desire to acquire relevant standards and by the active participation
more earthquake resistant. In knowledge on safe earthquake-resistant of private enterprises and, as mentioned
collaboration with FUNDASAL, the project housing in the post-earthquake period in above, the association of the construction
undertook an experimental housing the country was matched by the supply of industry.
construction pilot project, based on the know-how and technology from Mexico
refined quake-resistance methods. With and Japan. Prior to the earthquakes in El
regard to the soil cement method – one of Salvador, Mexico had acquired and
the four technologies appropriate for use adapted know-how from Japan over the
in building low-cost housing – the project years, following its tragic earthquakes in
improved the soil-based cement by the mid-1980s. In other words, the fact
adding locally available volcanic ash. that all three countries in this initiative had
42 Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America
Reproducibility in other countries affected families. This initiative deliberately Policy Recommendations
placed emphasis on a participatory
The following are some examples of
approach involving affected families, local Some countries in Latin America have
reproducibility in other countries.
municipalities and private firms to shown themselves to be forerunners in
-- Assistance to Nicaragua: From 2010, elaborate and carry out the recovery and devising solutions to such urgent issues
the UCA and other El Salvadorian development plan aimed at reactivating as earthquake-resistant affordable
organizations started to jointly host the local economy, and kick-started the housing for low-income families after
specialist training programmes for the design and reconstruction of private years of effort. Innovative solutions,
Nicaraguan counterparts on the housing. including know-how, technologies, and
Taishin techniques as part of the good practice cannot be achieved
Its socially innovative features rely on the
ongoing project in Nicaragua for the overnight. Moreover, such knowledge is
following factors:
improvement of earthquake-resistant not available in traditional donor countries.
housing construction technologies. -- A decentralized and participatory
On the other hand, many of the innovative
process for the design, organization
-- Assistance to the Dominican Republic solutions should be based on both
and implementation of the
and Haiti: A special seminar was academic research and experience of
reconstruction through 22 working
organized in the Dominican Republic in practical application for dissemination.
groups, directly placing the affected
March 2011 to disseminate the El This process could be facilitated by an
families at the centre of the process
Salvadorian experience to innovative partnership among public and
and involving municipal government
counterparts of the Dominican private actors as explained above. This
representatives and local firms for the
Republic as well as Haiti, which were type of innovative public-private
supply of material (logging, hardware
affected by an earthquake in January partnership should be encouraged by
store, roofs, etc.)
2010. public policies.
-- Fine-tuned emergency housing using
Keywords/tags: Low-cost earthquake
high-quality construction materials to
resistant housing affordable for low-
ensure sustainability and safeguard
income families, reinforced adobe, soil
people’s livelihoods (resistance,
Multistakeholder PPP for ventilation, space); they were adapted
cement, Chagas disease, resilience,
Post-Earthquake Emer- to family requirements through the
South-South/triangular cooperation,
public-private partnership
gency Reconstruction and participation of families in both the
design and the building of their homes
Economic Reactivation in
Chile
at a reasonable cost References
-- An immediate impact to kick-start local
Hosono, Akio (2013), “Scaling Up
In the immediate aftermath of the economic recovery with the
South-South Cooperation through
earthquake that struck south-central Chile development of eight plans for job
Triangular Cooperation: The Japanese
on 27 February 2010, a successful creation to involve affected inhabitants
Experience”, Getting to Scale for Billions
innovative PPP was set up for an in the productive process – thus also
of Poor, Chandy Laurence, Akio Hosono,
emergency economic reactivation and implying direct impact on their income
Homi Karas and Johannes Linn,
housing reconstruction programme in the – and by relying on four locally
Brookings Institution.
Maule and Bio-Bio regions. It involved a developed community “building
broad range of actors that teamed up in a factories” and local private firms related IDB (Inter-American Development Bank)
flexible and efficient ecosystem, including to construction; the systematic use of (2001), Poverty Reduction and Promotion
the United Nations, as a multilateral donor monitoring and evaluation practices of Social Equity: Report on Activities in the
organization, through its International with stakeholders and beneficiaries year 2000 and An Action Plan in the Areas
Organization for Migration (IOM) in Chile; of Special Emphasis, Washington, D.C.
-- The initiative enabled the construction
representations of the Government of
of 1,472 houses of 30 m2 and may JICA (Japan International Cooperation
Chile at the national, regional and local
provide a positive example of Agency) (2009), “Proyecto TAISHIN:
levels; two NGOs; families and individuals
sustainability and replicability in the Informe Final de Proyecto Mejoramiento
affected by the loss of their housing and
post-natural disaster reconstruction de la Tecnología para la Construcción y
jobs; and various private local firms related
and recovery process in the region and Difusión de la Vivienda Popular Sismo-
to the housing and construction sector.
beyond Resistente Taishin”.
After the earthquake, the United Nations Source: AVINA.
Saito, Shinobu (2012), “The Taishin
quickly made a call for projects to be
Triangular Initiative in Central America:
financed by its Central Emergency
Co-creating Quake-Resistant
Response Fund (CERF), a humanitarian
fund established by the UN General Construction Methods for Popular
Assembly in 2006 to enable more timely Low-Cost Housing”, Scaling Up South-
and reliable humanitarian assistance to South and Triangular Cooperation,
those affected by natural disasters and Hiroshi Kato (ed.).
armed conflicts, managed by the IOM in
Chile. In this framework, Fundación AVINA
and Fundación Proyecto Propio, two
NGOs, devised an inclusive local
development recovery and reconstruction
plan aimed at providing housing to
Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America 43
Case 9. Description trees and forest”, on the other, are major
challenges in the Amazon rainforest.
44 Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America
Fruta-fruta Co. has been selling 12 Sustainability factors private actors as explained above. This
different kinds of tropical fruit juice in type of innovative public-private
Agroforestry based on the Tome Acu partnership should be encouraged by
affiliated shops in Tokyo since 2002.
model is highly environmentally public policies.
Brazil’s largest cosmetics company,
sustainable as a result of its innovative
Natura, has been providing financial and Keywords/tags: Agroforestry, Amazon,
model developed over years of efforts by
technological support to foster the spread rainforests, South-South/triangular
farmers with the scientifically and
of agroforestry techniques in Brazil and cooperation, public-private partnership
technological support of the national
other Amazon basin countries.
agricultural research corporation,
BMBRAPA. Its commercial sustainability
Results, Outcomes and is facilitated by the organic certification, References
and by private enterprises, as mentioned
Impact of the iPPP above.
Hosono, Akio (2013), “Scaling Up
South-South Cooperation through
The feasibility of the Tome Acu model was Triangular Cooperation: The Japanese
Reproducibility in other countries
confirmed by a study which has shown 25 Experience”, Getting to Scale: How to
ha of agroforestry under this model yields The project is considered to be very easy Bring Development Solutions to Millions of
the same income as 1,000 ha of cattle to replicate in other Amazon Basin Poor People, in Laurecne Chandy Akio
ranching. The former therefore produces countries. This model has been shared Hosono, Homi Karas and Johannes Linn
40 times as much from 25 ha than the with various countries by means of (eds.), Brookings.
latter from the same amount of land. South-South or triangular cooperation by
Piekielek, Jessica (2010), “Cooperativism
Moreover, the former creates jobs for 10 the Brazilian Cooperation Agency (ABC)
and Agroforestry in the Eastern Amazon:
to 20 workers with 25 ha while the latter and JICA. In 2006, JICA, along with
The Case of Tome Acu”, Latin American
needs 50 to 75 ha to create a job for one Embrapa eastern Amazon, launched the
Perspectives 2010 37:12, SAGE.
worker (Yamada, Masaaki 2003, p. 105). five-year third country training programme
EMBRAPA Eastern Amazon has carried (TCTP) to host seminars to expand Smith, Nigel, Jean Dubois, Dean Current,
out in-depth research on agroforestry.52 agroforestry skills to neighbouring Ernst Lutz and Charles Clement (2008),
Economically viable species adapted to countries such as Bolivia, Colombia, Agroforestry Experiences in the Brazilian
the local environment have been Ecuador, Peru and Venezuela. These Amazon: Constraints and Opportunities,
developed and distributed to farmers. In seminars highlighted the Tome Acu model Washington, D.C., World Bank
one of its recent research projects, and included a visit to agroforestry fields
EMBRAPA Eastern Amazon found striking UNEP (United Nations Environment
in Tome Acu. Based on the experience of
similarities between the characteristics of Programme) (2011), Towards a Green
this TCTP, in 2011 Brazil and Japan
local “agroforest” soils and those of the Economy: Pathways to Sustainable
launched a new TCTP programme
natural forest soil of the Amazon rain Development and Poverty Eradication,
entitled “international training course on
forest. As such, agroforestry is helping the Nairobi.
agroforestry systems technology” as part
Amazon ecosystem to recover and of the five-year Japan-Brazil partnership Yamada, Masaaki (2003), “Amazon
safeguarding farmers’ livelihoods. programme (JBPP). In the northern tropical rain forest and agroforestry”,
regions of Bolivia, where the rate of Geography (June 2007) (in Japanese)
poverty is high, a project to increase the
Key Success Factors added value of farming products is being
Yamada, M. and H.M.L. Osaqui (2006),
“The Role of Homegardens in
carried out by Bolivia, Brazil and Japan. In
Key success factors appear to be the Agroforestry Development: Lessons from
this project, Brazilian experts in
development of innovative solutions, and Tome Acu, A Japanese Brazilian
agroforestry are being sent to Bolivia to
the provision of coordinated public and Settlement in the Amazon”, Tropical
share agroforestry technologies and
private support to farmers, especially Homegardens: A Time-Tested Example of
practices, including those gained through
through partnerships among the agricul- Sustainable Agroforestry, B.M. Kumar and
the Tome Acu model.53
tural cooperatives, local government, P.K.R. Nair (eds.), Springer.
EMBRAPA, local NGOs and private
enterprises, as well as through the Policy Recommendations Related websites / online material:
international cooperation of JICA. This has
Related websitesjica-net.jica.go.jp/
led to a virtuous circle of rainforest Some countries in Latin America have
lib2/07PRDM008
conservation through environmentally become forerunners in developing
friendly agroforestry, the coordinated solutions to such urgent issues as the
certification of agroforestry products and conservation of ecology and the
their sale and marketing, and has environment after years of effort.
improved the income and livelihoods of Innovative solutions, including know-how,
farmers. Among other things, it should be technologies and good practices, cannot
highlighted that the project promoted with be achieved overnight. Moreover, the
partnership among local municipal relevant know-how is not available in
offices, an agricultural cooperative traditional donor countries. On the other
(CAMTA), Embrapa Eastern Amazon, hand, many of the innovative solutions
POEMA and JICA, the organic certifica- should be based on both academic
tion of products facilitated by SAMBA- research and experience of practical
ZON, a US-based customer of CAMTA, application for dissemination. This
and the active participation of private process could be facilitated by an
enterprises in sales and marketing efforts. innovative partnership among public and
Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America 45
Case 10. The curtailed the overall development of
Lambayeque. While the region as a whole
major driving force for development in the
region. This boost to the productive
46 Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America
This irrigation component will open up a efficient use of the money obtained in the The cost of the water transfer component
new area of 38,000 hectares for agro- auction of the aforementioned of the Olmos Project totalled US$ 299
industrial activities and will improve 5,500 38,000-hectare area. The participation million, from which CAF financed US$ 50
hectares already in use by the rural and support of a multilateral organization million through a direct loan to CTO and
community of Santo Domingo de Olmos. such as CAF – in close coordination with US$ 77 million through a co-financing
The main value chains expected to benefit PROINVERSION, the Agency for the loan scheme with the Republic of Peru.
from this project are: sugar cane (for the Promotion of Private Investments for Peru, The rest of the funding was obtained
production of ethanol), asparagus, grapes as the governmental entity responsible for through equity contributions and a bond
and citrus, while poultry and cattle milk the promotion of this PPP – was essential issue by the company, as well as a loan
are also considered to be potentially to ensure that the project was feasible . from the Central Bank of Peru. However,
benefitted. Furthermore, the project is the cost of the irrigation component is
The main stakeholders involved in the estimated to be US$ 258 million, with US$
also expected to attract new capital to the
iPPP are the national and regional 128 million secured through the issuance
area. This will eventually lead to the
governments, the private sector, the of bonds (supported by CAF with a partial
development and use of modern
multilateral financial system (through CAF), guarantee of US$ 50 million), US$ 13
technological processes.
and farmers from the local community. million provided by contributions from the
As already stated, the expected increase PEOT is at the head of the organizational shareholders of the company and US$
in the demand for labour will attract new structure, representing the regional 117 million obtained from the capacity
workers and their families to the Olmos government of Lambayeque, and is payment (i.e. the fixed portion by way of
area, leading to the creation of a new responsible for monitoring and right of use of the infrastructure to be
urban centre. To address this situation, supervising the Olmos project. The built). In the case of this component, the
the Peruvian Government, in association concessions are granted to private added benefit of State involvement was its
with CAF, designed a comprehensive companies through public invitations to contribution related to the land´s public
urban system for the new city – named tender which have the financial support of auction and that part of the funding was
Charles Sutton, after the engineer who the national government and CAF. achieved through a bond issuance by the
foresaw the project in 1920 – and is concessionary backed by a partial
Once a concession is granted to a private
intended to become a model for city guarantee. The grant component was
company, it has the responsibility to carry
planning in Peru. The design includes promoted by Proinversión.
out and maintain work on the component
urban development that will lead to a
it was assigned by PEOT. The first
transformation of production,
component (water transfer) was granted
environmental sustainability, institutional
to Concesionaria Trasvase de Olmos Results, Outcomes and
strengthening and public safety.
Moreover, this city will host a research and
(CTO) in 2004, which has been mandated Impact of the iPPP
to operate the service for a period of 20
innovation centre for agricultural The main objective of the Olmos Project is
years and will charge a tariff for the
businesses, in an effort to promote to reduce the poverty levels of the region
transfer of water. The second component
technological development in a pivotal and to increase the quality of life of its
(energy generation) was granted to
sector for the Peruvian economy. inhabitants, through the creation of new
Sinersa (Sindicato Energético SA) in 2010,
which will operate the hydroelectric plant jobs and the establishment of a
Innovative model of iPPP productive area.
in perpetuity and will charge a tariff for the
The projected entailed the development of sale of energy. The State will receive 4.7% Among the expected results and
an agribusiness sector, as well as of the sales of Sinersa, resources that will outcomes of the iPPP, a key target is
watershed management, energy be reinvested in the project. Finally, the growth in annual agricultural output of
generation and irrigation in the third component (irrigation) was granted US$ 345 million, while the new land is
Lambayeque region. The regional to H2Olmos (an Odebrecht company) in expected to generate US$ 1 billion-worth
government of Lambayeque, through the 2010 to operate the service for a period of of total agricultural exports. This increase
PEOT, and with the support of the national 25 years, in return for the right to charge a in the annual production will raise local
government, encouraged the tariff for the irrigation service. The new public revenues by US$ 130 million, while
development of the Olmos project lands to be irrigated by the project were national public revenues will increase by
through an innovative public-private auctioned and sold in a public US$ 82 million. On the other hand, the
partnership involving the granting of international auction to private companies project is expected to create 15,600 new
self-sustaining concessions to private for a total of US$ 180 million under a jobs, of which 11,500 are direct jobs in the
companies, which require no funding or concession to operate them in perpetuity. agricultural and agro-industrial sector, and
guarantees from the Peruvian state. The Part of the earnings emanating from the 4,100 are indirect jobs related to urban
concessions were granted for all the sale of the newly irrigated land will be services. The total number of inhabitants
components of the project in a novel area deposited in the trust, and the rest will be of the new city is projected to be some
such as irrigation. One of the most left for the concessionary. 62,500 by 2021, which will require the
innovative aspects of this project was the construction of 21,000 new homes, 44
issuance of bonds for a greenfield initiative schools and five health centres. These
with the guarantee of a multilateral new homes will generate an additional
financial institution. It is also noteworthy US$ 4.2 million annually in municipal and
that this project was the first of its type to property taxes.
be financed in local currency and that it
was considered for the project finance of
the year award. Another feature of this
iPPP is the creation of a trust, whose
trustee is the PEOT, in order to ensure the
Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America 47
Key Success Factors Reproducibility in other countries
The Olmos Project is an integrated effort
One of the main key success factors of
between different levels of government,
the Olmos Project has been cooperation
private companies, citizens and
and coordination between the three levels
multilateral organizations to achieve a
of government – national, regional and
social goal that will benefit a large amount
local – that has enabled the creation of a
of local people, but will also positively
regional development strategy that is in
impact the whole country. This kind of
line with national interests. Additionally,
irrigation projects with a national scope is
the technical and financial support of CAF
easily replicated in other countries,
has been fundamental developing the
especially those with similar conditions.
various components of the project, from
financial support for the water transfer The concession scheme for the entire
component to technical studies for the project, with the support and supervision
irrigation and urban plans. of the government, is also a noteworthy
feature that is easy to replicate in other
The social responsibility that has prevailed
countries. Close cooperation between the
throughout the project is another key
public and the private sector can give rise
success factor. The families that were
to large-scale projects that in other
affected in the first stages of the project
circumstances are hard to develop. The
were relocated to new areas with an
incentives that are associated to the
educational centre and complete housing
concessions encourage the private sector
modules with basic services. In addition, a
to participate in this kind of project that,
training programme was established for
with the supervision of the public sector,
young farmers that encompasses
can have numerous positive results.
management and modern irrigation
systems, as well as new agricultural
technologies. Finally, the farmers that Policy Recommendations
currently live in the Olmos region will reap
the benefits of the project with the -- To create a specialized institution
construction of irrigation infrastructure at related to the promotion of private
no cost; they will have to pay for only the investments in high-impact social
water they use. Another success factor sectors
was the development of a capital market
by issuing local currency by means of an -- To promote and to establish a stable
innovative structure. and reliable legal and regulatory
framework
Sustainability factors -- To establish the appropriate institutions
to successfully carry out the PPP
The scheme used in the innovative
agenda
public-private partnership of this project is
self-sustaining. The concessions to the -- To promote independent and technical
private companies require no direct professional regulators in the
investment or guarantees from the institutions involved
Peruvian state. However, the participation
and coordination of the different actors -- To coordinate the different actors
involved in the project have been key to its involved in the project
success. Nonetheless, the Peruvian Keywords/tags: Irrigation, partnerships,
government is working closely with the Proinversión Perú
companies involved in the project, giving
them technical advice and financial
support in developing each of the
components described above.
48 Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America
Case 11. Description the current Amazonian rainforest may
vanish. According to recent declara-
Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America 49
To achieve these impact goals, favourable This initiative is supported by funding from hundreds of federal prosecutors,
conditions were created so that diverse Fundación Avina and the Skoll municipal managers, university students,
actors could together contribute towards Foundation, which signed an alliance rural labour unions, cooperatives and
the common good of the Amazon, with a pledging to match one another’s funding NGOs.
focus on collaborative processes. This on a 1:1 basis. In addition, Fundación In Brazil, the U$ 1 billion Amazon fund to
strategy allows the building of a common Avina has a close relationship with other avoid deforestation has been set up, and
vision for the future, looking for ways to foundations, and other organizations are Brazil’s voluntary commitment to binding
positively influence decision-making to often called upon to pool their resources targets for emissions reductions has now
create social changes. These changes with funds invested by the Skoll-Avina been enshrined in Brazilian law. Dozens of
can be political, institutional, alliance. This underlying rationale of municipalities that formerly had poor track
technological, scientific or cultural in aligning investments and leveraging records in terms of deforestation, such as
nature and at a large scale. Leadership is partners’ strengths has attracted a Alta Floresta, are now using IMAZON’s
essential to innovate processes, considerable amount of new resources in blueprint for green municipalities, recently
innovation is essential to improve results support of the goal of holding the line on enacted in state law, with a view to
and face adversity, and diversity is deforestation in the Amazon, allowing the complying with regulation and avoiding
needed to integrate the majority of alliance to enhance its financial influence further government sanctions. In so
postures. by a factor of five. doing, they are pioneering ways of
The whole strategy is built considering all providing local development with
minimum impact on forests. The Skoll-
the different stakeholders as essential to Results, Outcomes and Avina alliance has worked to disseminate
better address the challenges the
Amazon biome faces. Each strategic line Impact of the iPPP this model in other similar initiatives
of action and initiative combines different outside Brazil, such as in Bolivia, Ecuador,
The RAISG network has consolidated its
kinds of stakeholders, depending on the Colombia and Peru, which have their own
capacity to independently map strategic
intended results. specific characteristics, but follow the
information on deforestation and other
same logic as the green municipalities
The Skoll-Avina alliance’s strategy is pressures on the nine-country Amazon.
programme.
chiefly implemented through Fundación RAISG provides strategic information,
Avina’s local presence and network of which can be used by the hundreds of At regional level, Skoll-Avina’s allies have
allies in all the countries listed above. members composing the Latin American negotiated with UNASUR/COSIPLAN to
Fundación Avina has a history of almost network of environmental prosecutors to gain approval for the creation of the
20 years working with sustainable improve law enforcement, or by ARA Citizen Participation Forum. UNASUR has
development in the Latin American region, (Articulación Regional Amazónica) also decided to hold a series of meetings
which has helped it to build a network of members to advocate better policy- next year, the first of which will aim to set
approximately 5,000 ally organizations. making. Some of this information is also out guidelines for citizens and hold a
Considering only organizations that focus used by www.oecoamazonia.com, the debate to raise awareness on social
and work on the Amazon biome, it has a first news media outlet in the region with actors information and participation
network of 146 allies. By knowing the local the specific aim of using reporting to mechanisms.
context and having close relationships promote an un-fragmented, multi-country
ARA has grown to more than 50
with all the main stakeholders from each vision of the Amazon simultaneously in
organizations, bringing together the most
country – from civil society, government or three languages. RAISG member
prominent national players concerned
the private sector – a favourable IMAZON has developed a geotechnology
with deforestation. It has mapped
environment for the construction of a centre providing state-of-the-art
Millennium Development Goals
collaborative process is fostered. deforestation mapping training to
throughout the Amazon, and involved the
Amazon Cooperation Treaty Organization
in publishing them. In Brazil, Forum
Diagram II.2 : Skoll-Avina Alliance Stakeholders Amazônia Sustentável has now has 239
members from all sectors of society, and
Latinamerican Network today is the main forum for discussing
of Environmental Prosecutors development models in the Amazon. Both
UNASUR/COSIPLAN ARA and Forum Amazônia Sustentável
Satellite Monitoring NGOs
bring together the most important
Environmental
Ministries RAISG – Amazon Network networks for discussions on the Amazon
for Socioenvironmental as an integrated, interdependent biome,
Georreferenced Data and on how to work collaboratively in
ARA Regional – Civil PAN - FT – Forest
Society Network focused safeguards Transparency order to hold the line on deforestation.
International NGOs
on a Pan-Amazon vision
Companies working
at the Amazon Local NGOs
TM – Territorial
Management
Other financing
organizations Local Governments
50 Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America
Key Success Factors Policy Recommendations
-- Fundación Avina’s local presence Governments:
means it is familiar with the local
-- National legislation to punish those
context and actors.
responsible for deforestation by
-- Its relevant network of quality allies blocking access to credit, and
work at the local level in all pan- legislation to incentivize good forestry
Amazon countries. practices and environmental services
-- Its pan-Amazonian vision integrates -- Training for local staff responsible for
countries and cultures. taxation of deforestation
-- It promotes open dialogue between -- Legislation to guarantee social and
actors. environmental safeguards for local
people
-- There is local government leadership
and commitment to sustainable -- Rules for financial institutions regarding
development. transparency and safeguards
-- It involves the capacity of local Private sector:
partners.
-- Commitment to best practices at the
-- There is trust and a common purpose Amazon biome
among stakeholders.
-- Commitment to work together with the
-- There is donor proximity to local state and civil society to discuss and
communities and openness to risk. better address the issue of
deforestation
Sustainability factors
Keywords/tags: Conservation, Pan-
Collaborative processes are built together Amazon, integration
with civil society, the private sector and
governments at local and regional levels.
Its close relationship with other References
organizations provides funding. The real
commitment of the private sector, Amazonian Network of Georeferenced
government and the civil society will Socio-Environmental Information (RAISG)
ensure a reduction in deforestation. (2012), “Amazonia Under pressure”.
Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America 51
Case 12. In the area of international trade,
requirements such as carbon footprint
Description
Source: Economic Commission for Latin America and the Caribbean (ECLAC), on the basis of official figures.
52 Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America
unit. The measure of CO2 is obtained by More importantly, this requirement also -- Identify and disseminate good
multiplying the emissions from each of the goes hand-in-hand with the growing practices related to environmental
six gases by their respective potential to awareness among producers and footprints with a positive impact on
global warming after 100 years. consumers of, and sensitivity to, the need export development along with
to take into consideration their carbon contributing to environmental
The measurement of the carbon “footprint” management and sustainability
footprint in order not only to make their
and the progressive development – and
production patterns more efficient and In each country, specific food sectors
potential harmonization in the European
competitive but also to enhance their likely to need to adjust their export
Union – of environmental-labelling
business and environmental sustainability. strategies to industrialized countries’
measures are part of these requirements
Various countries of Latin America which market requirements were selected.
and becoming increasingly prevalent in
are net food exporters therefore need to Private sector actors included chambers
many countries, although still on a
take account of these requirements and of commerce, business associations and
voluntary basis. In the area of international
incorporate them into their production and private companies, whereas public actors
trade, such requirements have a direct
export strategies to avoid facing entry included ministries and public institutions
effect on imported goods, which must
barriers to their exports and losing market related to international trade, export
comply with them in order to avoid loss of
share in these export destinations. promotion, and the environment, as well
market access. For food exporting
countries of the developing world, which is In sum, such an approach implies turning as academia. Partnerships between the
the case of many Latin American coun- the above-mentioned issues into a private sector and public export
tries, such requirements can translate into positive agenda in which both industrial- development agencies were seen as a
non-tariff barriers for their products. ized and developing countries benefit from key element in achieving a common
Various countries of Latin America which climate change-related concerns. In this understanding of climate change-related
are net food exporters therefore need to framework, measuring and reducing the issues and requirements. The ECLAC
take into account these requirements and carbon footprint associated with the project included capacity building on
incorporate them into their production and processes of production and export of methodologies for measuring the carbon
export strategies to avoid facing entry agrifood products should be seen as an footprint of food and agricultural products,
barriers to their exports and losing market opportunity for exporting firms to improve and incorporation of these aspects into
share in key export destinations. their image and avoid losing access to key export development strategies.
destination markets on the one hand and The pivotal stakeholders involved in the
The measurement of the carbon footprint
identify and start addressing inefficiencies project are export promotion agencies,
associated with the production and
in their production processes and value which are often public-private entities,
distribution of goods and services has
chains on the other. The latter may imply bringing together export sectors from
been identified as a relevant indicator for
identifying quality and efficiency gains business with public authorities related to
assessing contributions to climate change
such as reducing energy consumption, international trade and export develop-
through GHG emissions. It is also an
optimizing logistics and distribution ment. An addition to these institutions,
important indicator to inform consumers
processes, and overall cost reductions representatives from the private agrifood
whose awareness of climate change and of
and improved competitiveness. sector and the ministries of trade are often
the need to reduce carbon emission is an
increasingly significant factor in the involved. In each country, a specific
Characteristics of PPP public-private roundtable, coordinated by
selection of goods and services, mainly in
industrialized countries. Such requirements Over the 2012-2013 period, ECLAC the export promotion agency, was set up
may progressively turn into non-tariff trade implemented the project, “strengthening to bring together these actors and
barriers as goods and services with more capacities of governments and food promote long-term sustainability of the
significant contributions to carbon emis- exporters to adapt to the requirement of national export promotion and interna-
sions are likely to see their access to climate change” in collaboration with the tional trade strategies in the framework of
industrialized markets limited. In some Development Account of the United the climate-change agenda.
industrialized countries, various initiatives Nations. The Commission has worked To turn the climate change-related
have already put in place environmental- closely with governments and representa- requirements into a positive agenda of
labelling schemes informing on the carbon tives of food exporting sectors in Hondu- climate change, public and private actors
footprint of goods and services. ras, Colombia, Ecuador, Nicaragua, Peru involved in export development have
and the Dominican Republic to support the placed emphasis on shifting towards the
The agriculture and transport sectors
development of innovative public-private following objectives:
account for a significant share of
partnerships in the agrifood sectors to:
emissions and are therefore likely to be -- To increase their knowledge of
affected by climate change-related -- Enhance the capacities of actors to non-tariff environmental barriers to
requirements and restrictions on imported measure and reduce the carbon food imports such as measurement of
products. Given that Latin America is a footprint associated with their the carbon and environmental
major provider of agrifood products to production patterns and value-chains footprints and traceability
industrialized countries (more than 33% of
-- Turn the climate change agenda into a -- To incorporate and put into practice
US agricultural imports in 2011 and
positive agenda for improving methodologies for measuring their
possibly up to 40% in 2013), measuring
competitiveness and business carbon and environmental footprint
the carbon footprint is a key element of
sustainability aimed at increased measurement
any export strategy in this sector to avoid
participation in global value chains
facing the so-called “green protectionism”
of industrialized countries. -- Adjust production patterns towards
greater efficiency and environmental
sustainability
Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America 53
-- To adapt their production patterns to -- Enabled dialogue and exchanges of -- Creating environmental or sectoral
improve their international experiences have been held at ECLAC “labels” of sustainability and
competitiveness and ensure sustained international seminars, bringing environmental management
market access by complying with together experts and stakeholders
-- Positioning brands internationally.
import requirements and non-tariff from Latin America and other regions
environmental barriers
In each of the four countries, public-
-- To rethink their production patterns to private roundtables and workshops have Results, Outcomes and
enhance their business strategies and been established as the key institutional Impact of the iPPP
contribution to sustainable mechanism to sustain dialogue, capacity
management building and formulation of strategies. Private sector
Table II.4 provides a summary of the -- Positioning the issue of climate change
From the environmental perspective,
actors involved in each country.
these projects: -- Inclusion of environmental concerns in
In each country, this public-private business strategies
-- Can contribute directly to emissions
roundtable conducted specific “case
reduction -- Capacity building for 800 private firms
studies” to measure the carbon footprint
-- Serve as an incentive for the business of exported goods, either with external on climate change and exports; 55
sector to improve market access to resources or through self-funding companies were able to measure the
export destinations and commit to arrangements. The development of carbon footprint of their export goods
environmental protection public-private mechanisms in these areas and identify measures to adapt their
has been instrumental in: production process in order to comply
-- Increase competitiveness with export market requirements
-- Measuring and reducing carbon
-- Differentiate products -- Strengthen industry associations
footprints
The project has: -- Addressing environmental issues in
-- Addressing and assessing
-- Engaged in capacity building initiatives for environmental requirements in export collaboration with the public sector and
government representatives and the destinations, identify joint strategies
private sector on issues related to climate Public sector
-- Improving the branding and corporate
change and international trade, as well as
image of specific companies and -- Placing the issue of carbon footprint on
carbon footprint and food exports
industries the policy agenda
-- Promoted 55 carbon footprint case
-- Identifying areas of inefficiency in the -- Training for state institutions in
studies of nine export products in six
production processes, supply chains, measuring the environmental footprint
countries to serve as a benchmark for
logistics and transportations, etc. and providing a comparative analysis
public and private strategies related to
carbon emissions and exports -- Identifying opportunities for increased of main export goods from the agrifood
competitiveness of specific agrifood sectors: capacity building of 200 public
-- Analysed and shared with the project’s officials on climate change and exports
products,
stakeholders 11 Latin American best-
practice cases of public and private -- Making traceability progressively -- Identify structural issues related to the
initiatives for dealing with carbon emis- compulsory production patterns that affect the
sions; this study also examined two carbon footprint: energy mix, transport
-- Fostering innovation and infrastructure, etc.
best-practice cases from outside the
region: the French environmental labelling -- Introducing other environment -- Improve collaboration and trust with
pilot project (Grenelle Law) and a bench- management tools (e.g. water footprint) the private sector
mark food industry initiative in Spain into agrifood sectors
-- Identify areas of improvement for
public policy in the area of trade and
climate change
Main food sector --Stevia --Shrimp palm oil --Coffee --Bananas --Palm oil --Citrus fruit
--golden berry --cocoa --cocoa --asparagus
Direct --ProExport (public) --CORPEI --CEI --CEI-RD --SNV --Promperu
counterpart --(public-private) --(public-private) --(public) --(international --(public)
development agency)
National --Ministry of --Ministry of --Ministry of Industry --National Council for --Ministry of Agriculture --Ministry of Trade and
ministries and Environment and environment and Trade Climate Change --Ministry of Foreign Tourism
other entities Sustainable --Ministry of Industry --Ministry of Energy Relations --Ministry of
Development and Production and Mining Environment
--Proecuador
Private sector --ASOCOLFLORES --National Chamber of --ADOEXPO --ANDI --ADEX
representatives --Bogota Chamber of Aquaculture --ADOBANANO
Commerce --National Cocoa
Commission
54 Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America
Key Success Factors -- Disseminating information on
environmental good practices and
-- Common design and understanding of successful initiatives related to trade
the “positive agenda” of climate and climate change
change and the carbon footprint
-- Having a third party (ECLAC) promote
requirement
the PPP as the modality to address
-- Identification of key actors in the trade-related carbon footprint
agrifood export sectors calculation and mitigation
-- Common methodology and training -- Promoting the leading role of a national
entity with both public and private
-- A third party (ECLAC) promoted the
stakeholders
PPP as the way in which to address
trade-related carbon footprint -- Considering the project outcome as
calculation and mitigation relevant by both public and private
partners
-- Leading role of a national entity with
both public and private stakeholders Keywords/tags: Carbon footprint, export
development, climate change
-- Project outcome was considered
relevant by both public and private
partners References
Sustainability factors Frohmann, Alicia, Sebastián Herreros,
Nanno Mulder and Ximena Olmos (2012),
-- Relevance of climate change-related
“Huella de carbono y exportaciones de
issues in the public sector and
alimentos. Guía práctica”, Project
business associations
Documents, No. 503 (LC/W.503),
-- Leading role of a national entity with Santiago, Chile, ECLAC [online] www.
both public and private stakeholders cepal.org/publicaciones/xml/2/48422/
Huelladecarbonoyexportaciones.pdf.
-- Financial support of carbon reduction
projects through public and private Frohmann, ALicia and Ximena Olmos
funding (2013), “Huella de carbono, exportaciones
y estrategias empresariales frente al
Reproducibility in other countries and cambio climático”, Project Documents,
sectors No. 559 (LC/W.559/Rev.1), Santiago,
Chile, ECLAC [online] www.cepal.org/
-- Peru (cocoa, coffee)
publicaciones/xml/5/51365/
-- Ecuador (cocoa, tuna, bananas) Huelladecarbono.pdf.
Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America 55
Case 13. In the area of agricultural development,
the availability of accurate and
In Latin America, agricultural production
accounts for a significant share of GDP
56 Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America
ECLAC has identified examples in which station registers information and data in stations, co-financed by the public
countries of the region have set up real time on the following variables at the innovation fund CORFO. In 2009, it
successful and innovative Public-Private local level: rain, temperature, humidity, launched a master plan to increase its
Partnerships aimed at improving the solar radiation, wind speed and direction, scale and coverage with funding from
production and dissemination of data and soil humidity. Based on this information, it Innova CORFO and the Agrarian
indicators related to climate change with produces related indicators including Innovation Foundation (INIA-Chile) of the
the support of ICTs. As described below, evapotranspiration, barometric pressure, Ministry of Agriculture of Chile which
in Mexico, Chile and Colombia, different dew point and heat units and cold hours. helped it expand to 185 automatized
actors have teamed up through innovative The system enables to access recent and stations and cover 95% of fruit production
institutional arrangements in order to historical statistics as well as recent areas in the country. As in the previous
enhance the generation and efficient cumulated and average data, maximum case, every five minutes stations register
dissemination of accurate agro-weather and minimum figures, etc. and compile data and information on
information to enhance the capacities of seven key parameters: temperature,
In this scheme, the pivotal institution is the relative humidity, rain, atmospheric
their agrifood producers. In each case,
Fundación “PRODUCE”,54 a non-profit pressure, global radiation and wind speed
synergies have been identified among
organization grouping producers of the and direction. The information is
agriculture sector and related
agro-industrial and agrifood chains, which disseminated in real time and is made
corporations, public authorities at the
coordinates their work with that of national available online and via GPS. The network
national and local levels, weather-
and regional government authorities, was designed to be a public good
forecasting, academic and research
research centres, and specific sectoral providing free access to easily interpreted
institutions to turn these information
representatives. It places particular data. It works through the ongoing
systems into a public good. The cases of
emphasis on enhancing the use of new association of FDF, INIA-Chile and the
Chile and Mexico highlight the benefits of
technologies. Regarding the specific Chilean weather forecasting directorate
collaborative action between public and
network of agro-climate stations, it is and currently has 235 automatic stations
private institutions in the generation of
responsible for carrying out the following transmitting information by GPRS, of
agro-weather information. In the case of
actions: which 91 are owned by agriculture
Colombia, it represents a consortium of
institutions working in the field climate -- Maintenance and operation of the producers and agrifood companies.
change with strong emphasis on network Inter-institutional network on climate
information sharing and efficient use of change and food security in Colombia
-- Repairing or updating of stations
resources aiming at shared achievements. (RICCLISA)
-- Training and capacity building of
Innovative models of PPP technical personnel RICCLISA was founded in 2009 based on
the recommendations of a national
National network of state agro-climate -- Fund-raising and partnerships with workshop on climate and agrifood sectors
stations in Mexico from states’ institutions held by the Ministry for Agriculture and
Mexico and Central America have been -- User support (state governments, Rural Development with the participation
increasingly vulnerable to the volatility of producers, agrifood groups) of more than 100 specialists and experts
weather conditions and extreme natural from a broad range of public and private
The network of climate stations currently entities. Among the needs identified at the
events over the past decade which, in
has 5,500 high-quality stations including workshop were the development of a
turn, has implied a significant increase in
complete data series, of which 3,500 network aimed at reducing the existing
the costs of loss and damage. In Mexico
report on daily basis to the National institutional vulnerability which resulted in
alone, the patterns of rain in different
Oceanic and Atmospheric Administration a lack of coordination between climate
seasons have for instance evolved
(NOAA). Regarding adaptation to climate programmes on the one hand and
dramatically: the autumn-winter cycle in
change and risk management, it has also agriculture-related policies and
2010-2011 represented one of the worst
set up a catastrophic insurance system requirements on the other, along with the
droughts in recent history which affected
aimed at supporting the most vulnerable inefficient pooling of human, technical and
800,000 hectares of cultivated land. The
and low-income producers in the case of financial resources, as well as isolated
drought of 2011 represented an historical
extreme natural disasters affecting knowledge and use of data and
record which affected 2.56 million acres,
agriculture. A federal subsidy accounts for information.
led to a loss of 6 million tons of crops, and
75% to 90% of the insurance premium.
caused dams and reserve utilities to Table II.5 provides a summary of various
Basic agriculture insurance aimed at
operate at 18% of their capacity. Other examples of initiatives related to
reimbursing farmers affected by climate-
examples include structurally lower implementations of ICTs in agriculture to
related events.
temperatures in fruit production areas of deal with adaptation to climate change
the North of the country or a record early Agroclima.cl network in Chile (CC):
cold and freezing vague in February 2011.
The Agricultural Development Foundation
The national network of state agro-climate (FDF) is private non-profit technological
stations in Mexico, which was launched institution created in 1992 by producers
initially in 2000 with 10 stations, currently and exporters of fresh fruit. The initiative
encompasses 825 stations and benefits was launched with the objective of
from overall investment of MXP 80 million. overcoming technical limitations in a
The network’s objective is to provide participatory manner. Among its current
information to agriculture producers responsibilities, it runs and manages the
fine-tuned to the needs and virtual online network Agroclima. FDF
characteristics of local conditions. Each began its activities in 1997 with 12
Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America 57
Table II.5 : Implementing ICTs in Agriculture to Adapt to Climate Change (CC) Key Success Factors
Addressing drivers of Building response Managing climate risk Confronting climate Key success factors are dialogue in the
vulnerability capacity change framework of a long-term partnership
--Zoneamento agrícola --Agroclima” --Agricultura/riego de --Sistema de alertas between public and private actors to
implementations
de risco climático” --Description: Networks precisión” tempranas identify relevant data to be measured,
--Description: Public of agro-climate stations --Description: Tests, Centroamérica”
loans and private training, promotion,
identified and disseminated. The local,
--Countries: Chile and --Description: Network
insurance to farmers Mexico (other countries technological that integrates data regional and territorial dimensions are key
based on climate risk possibly have similar development and from multiple sources factors and must bring in specific
zoning developed by a funding of PA/PI tools on disaster (floods,
pool of agricultural
initiatives)
droughts, hurricanes, agricultural sector representatives and
--Institutions: INIA, --Countries: Argentina
research institutions and Chile earthquakes and local authorities together with national
Dirección volcanoes) assessment
--Country: Brazil Meteorológica, --Institutions: INTA, telecommunications authorities and
and warning in Central
--Institutions: Embrapa, farmers’ organizations Fundación CIDETER America countries private companies. A sound and flexible
Brazilian Ministry of and private companies (Argentina); INIA,
Agriculture, several (Chile); Fundación CORFO (Chile) --Institutions: UN-WFP, institutional design enabling the
universities, public Produce, agricultural --Advantages: Local
US institutions (NASA), coordination of the different actors within
banks, private research institutes University College
development/ London, national focal a long-term framework has proved key to
insurance companies (Mexico) adaptation of foreign points the development of the network and
--Advantages: --Advantages: Open PA/PI technologies,
Incorporates climate data generation, feed development of --Advantages: ensured the following:
risk variables to other CC projects and clusters of national Supranational network
investment decisions can also support private producers of --Drawbacks: PPP not -- Human resources and capacity
and to public loan farmers’ decision- these technologies. balanced, strongly building
policies in agriculture, making. --Drawbacks: PPP not public.
with an additional --Drawbacks: PPP not balanced, strongly -- Economic and financial sustainability
impact on mitigation clear/innovative in the public.
strategies Mexican case -- Quality, accuracy and relevance of
--Drawbacks: PPP not (Fundación Produce is
clear/innovative. Private financed by the Federal
information and data
insurance companies state and farmer’s
use risk indicators but associations, but they -- Timely dissemination
not sure they are not stakeholders
participate in its
development process.
Reproducibility in other countries
--Other possible case --Other possible case --Other possible case --Other possible case As mentioned in the present case, such
studies: studies: “Modelación studies: AQUACROP studies: “Ayuda a experience is replicable in all countries of
“Infraestructura de de los impactos del – FAO (Worldwide) América Latina y el
datos espaciales” cambio climático en la Caribe para la gestión the region.
(CIREN, Minagri, agricultura” (Embrapa de los riesgos de
CONAF, FIA – Chile) – Brazil) desastres naturales” Keywords/tags: Agriculture, ICT, climate
--“Red Interinstitucional (BID) change
de Cambio Climático y
Seguridad Alimentaria
- RICCLISA” (MDAR,
DNP, Cenicafé, References
Universidades, others
– Colombia) Chavarría, Hugo (2012), “Las TIC en las
--“Todo Chile --“Platicar: Plataforma de --“SoftwareTriguero, instituciones públicas para la agricultura
Small-scale implementations
Source: ECLAC. Framework based on International Institute for Sustainable Development (2011), “The Strategic Application of
Information and Communication Technologies to Climate Change Adaptation in Africa”.
58 Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America
Case 14. Project Juntos is now being replicated in
three cities in Brazil and has the goal of
Innovative model of PPP
The strategic model of Project Juntos PPP
Innovation in expand to a total of 10 municipalities
within three years.
(Figure II.6) is designed to allow philan-
thropic investors to finance the develop-
Public Services ment of innovative and strategic pro-
grammes concerning local governments
Description
in Brazil (“Project Despite Brazil’s bumpy but positive
that would not otherwise be carried out.
Comunitas, as coordinator and proponent
Juntos”) economic growth over recent years,
surpassing the United Kingdom for a brief
of the project, firstly chooses a municipality
(i.e. mayor) willing to be a partner and work
moment as the seventh largest economy together with the private sector and the
in the world, Brazil stills ranks as the 17th technical partners selected to implement
Geographical scope: Municipalities in most unequal country, according to the four strategic actions, as described below.
Brazil GINI Index. This level of social (1) Fiscal efficiency
discrepancies is evident in comparisons
Thematic area: Healthcare, education, between the two cities taken as examples The initial focus of Project Juntos is
e-Government, design thinking, fiscal here. The city of Curitiba has a Human providing fiscal gains for the municipality,
efficiency Development Index (HDI) score of 0.823 by increasing revenues (without raising
– better than Portugal – while Ingazeira in taxes) and reducing expenditure (without
Pernambuco has an HDI of 0.608, a decreasing social entitlements). This
Executive Summary similar level to Namibia. Just like Ingazeira, process is carried out by a specialized
“Progress is only possible through Brazil has another 1,608 municipalities management consultancy firm, Falconi, in
cooperation. Project Juntos is an example ranking below this African country in an 18-month project, which generates, on
of this: how coordinated actions between terms of social development. average, significant increases in the city’s
the private and public sectors can bring investment. A steering committee made
Three principal reasons for this situation lie up of the mayor himself and his senior
innovative solutions focused on citizens.” in a lack of investment capacity by personnel meets weekly to oversee and
– Fernando Henrique Cardoso, Former municipalities, often owing to bad engage with the fiscal programme.
President of Brazil and partner of Project management; the scarcity of public staff
Juntos technical expertise to implement (2) Strategic planning
innovative, or merely efficient public In parallel to the fiscal efficiency pro-
Juntos Project is the largest coalition of services; and a lack of public leaders with
Brazil’s most prominent business leaders gramme, Project Juntos also conducts
a true commitment to results, strategic planning sessions with the mayor
focused on innovating and improving local transparency and social change.
government and public service and his key personnel. This process
management. It represents an innovative Project Juntos focuses on having a real establishes governance practices, key
PPP model that brings together impact in those structural and human success metrics and priorities for public
philanthropic capital, technical expertise development problems. services in education and healthcare,
and public leadership to develop new which will be implemented with the
services in areas such as education and increased investment capacity, generated
healthcare, designed and co-created for by the Fiscal Efficiency programme.
and together with citizens.
The project, led by Comunitas, a non- Figure II.6 : The Strategic Model of PPP
partisan civil society organization, focused
its work on the municipal level, with the
main objectives: to increase fiscal Business Funding Comunitas Coordination
Leaders (Civil Society) funding of Technical Partners
efficiency and the investment level of the
city, design and co-create new public
Strategic Actions
services, in a collaborative effort with
citizens and build leadership and
managerial capacity among the senior Fiscal Strategic Public Service Human
Technical
staff of the municipality. Partners Efficiency Planning Innovation Development
In its first project, with the city council of
Campinas (a city of 1 million inhabitants),
the undertaking succeeded in increasing
the municipal investment budget by 182%
(from R$ 77 million to R$ 217 million
Healthcare
annually), without tax increases or a Policies
reduction in social entitlements. It has also Local
Government
led a public service co-creation process Education
between the municipal staff and citizens, Policies
through design thinking workshops and Source: Comunitas.
an Open-Innovation Web platform.
Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America 59
(3) Public service innovation Comunitas, finally, conducts screening Fourth phase: Implementation – Public
and due diligence processes in order to service innovation
The next strategic action focuses on
identify a local political leader, i.e. a mayor, The fourth phase runs in parallel with the
mobilizing and engaging citizens and the
who meets a set of pre-defined criteria third and breaks down into four different
municipal public staff to design and
complete ethical profile, a commitment to steps, according to Tellus’ design thinking
co-create innovative public services,
action and results, openness to and open innovation methodology. Firstly,
based on preliminary diagnostics and the
transparency and innovation and has Tellus runs a diagnostic in order to assess
strategic planning done with the
recently been elected on a first mandate the quality of public services and the
consultancy firm. Also, Project Juntos
(which allows possible project continuity). feasibility of, and potential for,
utilizes Open Innovation Web platforms to
enables thousands of citizens to generate improvements in both education and
Strategy for implementation healthcare. Next, during the deep dive
ideas and proposals on how to enhance
public services. This strategic action is Comunitas, as proponent and coordinator moment, Tellus engages – by means of
implemented by Tellus, an organization of Project Juntos, establishes a schedule design thinking workshops and an open
that specializes in Design Thinking and with five clear phases, for each chosen innovation platform – public agents,
Open Innovation for public services. city to implement the project. citizens and other relevant stakeholders to
collaborate and co-create possible
(4) Human development First phase: Establishing an initial support solutions to those areas. The third step
network involves prototyping those solutions and
Finally, the fourth strategic action of the
project involves developing human Comunitas has being working on various then implementing in it full scale. Finally,
capital, i.e. the leadership and managerial different collaborative projects in recent the whole innovation process is
skills of the senior public officials. The years, which has helped the organization systematized by Tellus so other
renowned not-for-profit organization build a strong support network of Brazilian municipalities can replicate it easily.
Centro de Liderança Pública (CLP) is the business leaders. With the initial support Fifth phase: Replicating to other
partner appointed to conduct a series of of this network, Comunitas was able to municipalities
workshops and practical courses to foster secure 100% of Project Juntos funding,
a managerial culture, focused on results without the need to rely on governmental The experience drawn from Comunitas
and leadership. sources. over the first project implemented in the
city of Campinas in January 2013, the
The first city to start implementing the Second phase: Selecting the right mayor strong role-model effect and the initial
project was the city of Campinas, in Brazil, results generated within six months of the
Comunitas then draws up a political map
which became a partner in January 2013. kick-off have been sufficient arguments to
of municipalities in Brazil and their
In May and August 2013, two new cities inspire other mayors, local business
respective elected mayors, cross-
started replicating the project model, with figures and philanthropists to replicate the
checking multiple sources of information
the support of local investors and innovative PPP model of Project Juntos. In
in order to screen and compile a list of
philanthropists. fact, in September 2013, two new cities
political leaders that fit the four
aforementioned main criteria. From this besides Campinas began implementing
Stakeholders involved and the project.
shortlist, Comunitas must identify for its
organizational structure
network at least one local and one Financing scheme
Project Juntos is proposed and strategic supporter each willing to commit
coordinated by Comunitas, a not-for-profit at least 25% of the financing of the project The financing of the project was wholly
civil society organization created in 1995 for that municipality. This financing (100%) drawn from private investors, with
with the purpose of contributing to Brazil’s decision finally determines which mayor philanthropic capital, which ensures
social development by strengthening and city is chosen to start implementing flexibility in hiring the technical partners
collaboration across different sectors. the project. This process takes from four and avoids political and partisan
to six months. influences that could undermine
Comunitas is responsible firstly for Comunitas’ credibility as an impartial
leveraging the resources necessary to Third phase: Implementation – Fiscal partner.
fund the project, which comes from the efficiency and strategic planning
widest possible network of collaboration The total average budget needed for
The initial phase of implementation, implementation of the entire PPP project
between Brazilian business leaders:
conducted by Falconi, is focused on is R$ 2 million, or US$ 800 million, per
CEOs, family business members and their
working together with the mayor and year for each city. The financing scheme
respective foundations. This network of
senior staff, through a weekly steering is divided among three different
supporters provides philanthropic capital
committee meeting that aims to identify categories of partners: Comunitas
to fund Comunitas contracts with Project
opportunities to increase municipal provides 50% of the financing, which
Juntos technical partners – Falconi, Tellus
revenues and decrease expenditure. comes from its own support network; a
and CLP – three of the most prominent
Ensuring results in the short-term helps strategic sponsor, one of the members of
consultancies in Brazil specializing in
gain the confidence of the mayor and Comunitas support network, provides
implementing the strategic actions
cement his commitment to the project. 25% of the resources; the local support
described above with the municipality and
Together with the strategic planning, this network, a number of entrepreneurs and
its citizens.
phase lasts for 18 months, and initial fiscal philanthropists that reside in the chosen
optimizations and results are seen within city, provides the remaining 25% of the
six months of kick-off. financing.
60 Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America
Results, Outcomes and Key Success Factors Reproducibility in other countries
Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America 61
Case 15. Description The reason for this difference is that
broadband operates with very high
Figure II.8 : Households with Internet Access by Income Quintile, Data to 2011
(Percentages)
90
80
70
60
50
40
30
20
10
0
CHL
ARG
ECU
VEN
COL
PER
CHL
VEN
COL
ECU
PER
ARG
CHL
VEN
COL
PER
ECU
ARG
CHL
COL
VEN
PER
ECU
ARG
CHL
COL
VEN
PER
ECU
URY
PRY
URY
PRY
URY
PRY
URY
PRY
URY
PRY
BRA
BRA
BRA
BRA
BRA
ARG
Q1 Q2 Q3 Q4 Q5
Source: Economic Commission for Latin America (ECLAC), on the basis of household surveys.
62 Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America
In the context of the Regional Broadband This initiative has been supported in Chile The main telecommunications firms in the
Dialogue, studies have been conducted to by “Fundación País Digital”, a non-profit region have participated in Dialogue
identify the cost determinants in the region foundation grouping private network events, such as Telefónica, Telmex,
and assess how the related costs can be operators and telecom companies with CISCO, AKAMAI, Google, Yahoo
reduced. One relevant factor is the region’s the aim of coordinating efforts by the Research, Huawei and Ericsson, in
high dependence on international Internet public and private sectors with a view to addition to various institutions linked to the
traffic and limited direct connectivity with developing a common national digital sector such as AHCIET, REGULATEL,
other regions. An estimated 85% of Internet agenda. It brings together the private ICT ISOC, LACNIC, ICANN and EuroIX.
traffic passes through the United States, industry and governments and regulators
which drives up the final price of the service to design and implement public policies
by around 20% to 40%. Estimates indicate by national ministries, and regional and Results, Outcomes and
that an average reduction of 10% in the local governments, with the purpose of Impact
price of a broadband service would result in broadening access to digital connectivity
a rise of almost 19% in the penetration rate. and scaling up the use of ICTs. Its areas of In view of the goal set by the Dialogue, the
action are: smart cities; education and main result was the formulation of policies
Reducing the region’s dependence on and proposals for reducing the
digital development; incentives for the
international traffic would thus result in dependence on international traffic. At the
development and use of ICTs in
lower costs and higher levels of national level, proposals and policies were
production processes. Its initiatives range
broadband penetration. geared towards determining the
from the development of technical
dialogue roundtables between public and conditions for attracting content hosting,
private actors to the design and by, for example, establishing content
implementation of specific projects. distribution networks (CDN) through
Opportunities Related to companies such as Google which are
responsible for a very significant
Cloud Computing proportion of the traffic that is accessed
The mass development of broadband, from the region. In addition, as an
Innovative PPP model
together with progress in virtual data and outcome of the discussions and studies,
information storage may pave the way for The goal is to cut the cost of broadband in public policy recommendations have
a new information technology (IT) supply the region by reducing dependence on been formulated for the development of
model: cloud computing. This new international Internet traffic. Internet exchange points (IXPs), which
paradigm appears particularly relevant some countries, such as Bolivia, had
Characteristics of the PPP, with emphasis
and attractive in terms of cost efficiency, already incorporated into legislation.
on its innovative features: The Regional
given its ability to combine savings with Broadband Dialogue is a forum for At the regional level, options for improving
greater flexibility in the management of the cooperation and public-private debate connectivity between countries were
IT requirements of companies and that focuses on very concrete and specific analysed and the Dialogue is working with
governments. Cloud computing enables themes on which action can be taken in the South American Infrastructure and
reducing entry barriers and therefore the short term. Meetings of the Dialogue Planning Council (COSIPLAN) of the
provides easier market access for new take place in two settings: an open forum Union of South American Nations
players. As such, it will generate innova- in which governments, firms, academics (UNASUR) to support the establishment
tion and creation opportunities for new and other organizations in the sector of a fibre-optic ring to link up the countries
players and new business models and participate, and a closed forum, in which of South America. In addition, in the
modify the landscape for all economic representatives of the telecommunications framework of the Dialogue, meetings have
sectors requiring IT services, which may sector of the governments of the region been held between government
in turn become powerful tools for reduc- discuss the policies to be adopted and representatives of the countries of the
ing access gaps. Like any paradigm decide on the priorities. Only in a region and representatives of the
changer, cloud computing also poses multistakeholder environment can the European Commission to discuss the
challenges in terms of its implementation technical and technological options be possibility of laying a new undersea cable
in ICT environments that are used to fully understood. to connect Europe directly with South
having “everything under control”. America.
Currently, issues related to data mobility, Stakeholders involved and organizational
privacy and security limit the expansion of structure: ECLAC is the technical Broadband tariffs have fallen significantly
cloud computing services and must be secretariat of the Regional Broadband since the Dialogue was set up. For a fixed
analysed thoroughly by public and private Dialogue and is responsible for broadband connection with a download
actors. In this context, ECLAC and the conducting studies and organizing the speed of 1 Mbp, the tariff measured as a
European Commission have launched a Dialogue’s meetings and events. Eleven proportion of average per capita income
public-private dialogue initiative aimed at governments in the region are fell by an average of 64% in a nine-country
seeking solutions to these issues that are represented in the Dialogue – Argentina, sample during the period December 2010
of concern for the industry, governments Bolivia, Brazil, Chile, Costa Rica, to May 2013. The sharpest drop was seen
and users. This initiative will enable the Colombia, Ecuador, Mexico, Paraguay, in Ecuador, where tariffs fell by 84%.
formulation of proposals for common Peru and Uruguay – and the International
visions and actions between business Telecommunication Union.
and governments from Latin America and
the European Union in order to accelerate
the adoption of cloud computing and
favour sectors with limited access to the
benefits derived from new technologies.
Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America 63
Another important result was the
generation of information that was
transparent and comparable at the
regional level on the impact of international
traffic on broadband costs and quality
and tariff trends. In this regard, the
Regional Broadband Observatory (ORBA)
was set up, which is responsible for
generating and analysing that information.
Policy Recommendations
-- The problem and the objectives should
be clearly defined.
-- The tasks to be carried out by each
person should be clearly identified from
the beginning.
-- If a PPP is possible, it should be
institutionalized and the process
formalized.
-- The source of financing must be
sustainable.
Keywords/tags: Broadband,
telecommunications, social inclusion
References
De León, Omar (2012), “Desarrollo de la
conectividad nacional y regional en
América Latina”, Project Documents, No.
502 (LC/W.502), Santiago, Chile, ECLAC.
ECLAC (Economic Commission for Latin
America and the Caribbean) (2013), The
Digital Economy for Structural Change
and Equality (LC/L.3602), Santiago, Chile.
ECLAC (2012), “Estado de la banda ancha
en América Latina y el Caribe, 2012.
Informe del Observatorio Regional de
Banda Ancha (ORBA)”, Project
Documents, No. 505 (LC/W.505),
Santiago, Chile, ECLAC.
Jordán, Valeria, Hernán Galperin and
Wilson Peres (eds.) (2013), Broadband in
Latin America: Beyond Connectivity
(LC/G.2583-P), Santiago, Chile, ECLAC.
64 Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America
Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America 65
Part III A. Key Success
Factors
66 Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America
the policy to be implemented, bringing
fresh ideas to the table that reflect their
reducing the burden on any single actor.
When possible, the establishment of B. Policy Rec-
unique voices and perspectives. It is
important to be aware of and capitalize on
financing mechanisms or frameworks
ensuring medium- to long-term ommendations
any synergies between the parties commitment and continuity of work
involved and seek the development of a should be considered to avoid
long-term relationship of trust. Structuring dependency on political cycles, among
PPPs, particularly in the social and other objectives. As mentioned in this report, the different
environmental spheres, requires levels of the state should retain a key role
Furthermore, programmes focused on in supervising, providing incentives,
overcoming prejudices and establishing a
the social domain must be adaptable, maintaining regulatory frameworks and
culture of dialogue to set common goals.
given the dynamic nature of the field. The ensuring the provision of quality goods
It is also important to take stock of the
actors involved must be willing to accept a and services. The state must also be
comparative advantages and roles of
certain level of operational flexibility and to involved in identifying new opportunities
each actor involved in the partnership and
make accommodations or concessions and governance mechanisms to deliver
identify the most relevant skills that they
to ensure the effectiveness of the initiative. these goods and services jointly with the
can bring to the partnership. In the same
Adaptability and flexibility are particularly private sector, seeking higher levels of
vein, a common understanding needs to
important in overcoming bureaucracy and outcome, impact and sustainability.
be reached of whether actions are most
possible obstacles during the
appropriate at the local, regional, national, In the first place, government agencies at
implementation of social policies. Indeed,
transnational or global level. Given the the national, regional and local levels can
PPP initiatives have shown the
cultural heterogeneity of the actors play a vital role by stepping up monitoring
importance of the role played by
involved, it is critical to spend time framing and evaluation of existing innovative
governments in the creation of new
the policy and its implementation phase to practices to assess their scalability and
institutional frameworks to address social,
establish a clear picture of the balance of whether they can be replicated elsewhere
productive or environmental issues,
power, the responsibilities of each party through policies, programmes and
expanding the outreach of programmes
and potential conflict zones. public-private partnerships. Further efforts
with less bureaucracy by integrating them
In short, a key factor for success in a PPP into long-term national plans or strategies. should therefore be made to standardize
is how to address the cultural The creation of specific institutional oversight and field evaluation practices
heterogeneity of actors from different mechanisms to ensure the articulation of and to widely disseminate their results
organizational backgrounds. Therefore, it the different public and private among government and business actors,
is essential to not only focus on the goals stakeholders over time is essential in this particularly from the local to the national
and structure of the policy, but also foster regard. Reliance on or creation of a levels. Multilateral organizations, the
reciprocal understanding among the specific institutional setting – picking the academic sector, local communities and
actors. Other relevant factors to be pivotal and most legitimate actors – can civil society actors are powerful partners
assessed when identifying specific actors significantly facilitate the channelling and to support evaluation and dissemination
to be involved include leadership capacity sustainability of resources, regular exercises.
and influence, governance, legitimacy, convening of the different stakeholders Public authorities should also aim to
prestige, functions, skills and abilities, and and provision of progressive training and generate greater incentives and create
the availability of resources, both human capacity building activities. favourable climates for actors from
and financial. business, communities and civil society to
Finally, the implementation of results-
Although partnerships among these based tools, cost-effectiveness analysis, share ideas regarding potential
actors are not obvious and imply evaluation mechanisms and constant partnerships and new forms of policy-
overcoming organizational and cultural monitoring are also essential to ensure the making and programme creation in the
shortcomings, they can ultimately provide continuous improvement of PPP projects social, productive and sustainable
a qualitative leap in terms of process and in Latin America. PPP projects bring development spheres. Such efforts can
in contributing to social and sustainable together multiple parties with diverse be provided through traditional incentives
development. The setting up of a interests, and different evaluation tools are such as tax exemptions, as in the case of
collaborative network structured across therefore needed to monitor their ProUni mentioned in this report. There is
governments at different levels, private progress. The implementation of a also much scope for encouraging
sector, civil society, community, non-profit bottom-up – rather than a top-down – innovative financial mechanisms, such as
organizations and academic institutions strategy is essential to obtaining feedback social impact bonds which could have
will not only multiply sources of funding from the target populations and to making significant potential for development in the
but also extend the outreach of programmes more transparent and their region. Multilateral development
programmes, reaching vulnerable or actors more accountable. PPP initiatives, institutions can also act as a catalyst, not
marginalized populations that otherwise by and large, place emphasis on a only providing financing, but also helping
would not have access to the participatory approach involving the to create an appropriate environment for
programmes. affected population, local municipalities these different actors to share their views
and private firms to carry out the and knowledge and translate the
To ensure the financial sustainability of the relationship into need partnerships.
programmes. Some initiatives adopt a
partnership, governments, the private
decentralized and participatory process
sector and any other actors involved
for the design, organization and
should determine the funding sources at
implementation of programmes, thereby
the inception of the programme. The
putting the target population at the centre
participation of multiple actors enables
of the process.
co-funding partnerships to be created,
Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America 67
As further incentives, public-private
spaces bringing together a combination C. Conclusions reciprocal understanding of the ways of
thinking and working of the different
of actors and skills are increasingly being actors involved. Each actor embodies a
created to foster the exchange of ideas on specific mental model, internal paradigm
innovative approaches, the generation of and system of values and, what is more, a
integrated visions and trust. Innovation vision of the world. Various existing
laboratories – geared to both social and Bridging Cultural Gaps to models may facilitate this process by
production sectors – providing convening helping make an accurate diagnosis and
opportunities and equipped co-working
Optimize iPPPs cultural mapping of groups and
spaces as well as training and capacity Building public-private partnerships individuals, such as those proposed by
building activities are interesting platforms among government, business and civil cultural anthropologist Jean Gebser
in this respect and help to generate small society is no easy task, as it requires (Schuschny, 2007), the dynamic spiral
ecosystems that may foster public-private overcoming prejudices and fostering a model of the humanist psychologist Claire
partnerships.55 In the same vein, social culture of dialogue and consensus- Graves (2005) and the integrated
innovation contests and crowdsourcing building that necessitates identifying a set approach of Ken Wilber (2001). These
platforms are being promoted to enable of common goals. It also implies defining models or conceptual maps propose an
public authorities and the private sector to the respective comparative advantages integrated approach to psychological,
identify potentially scalable projects from and roles of each actor working together sociological and cultural perspectives in
civil society, communities and youth instead of separately. Traditionally, there the framework of value systems or visions
organizations. These approaches could has been a natural divide in areas of of the world. They can also help identify
be further encouraged. action and world view, but these visions and prevent possible bottlenecks or
have evolved as all actors have cultural inadaptabilities among actors.
A fourth area of potential development is
for governments to establish, in progressively moved closer to Therefore, the effectiveness of the design
consultation with the private sector and understanding the need for a new and formulation of a PPP requires prior
civil society actors, regulatory dialogues state-market-society equation to address cultural diagnosis. Interaction among the
and institutional frameworks that deepen development issues. actors involved may even be facilitated by
common understanding of specific Developing a partnership requires not specialists who take into careful
development issues, define shared values only dialogue and consensus-seeking consideration assertive knowledge and
and provide clear schemes for relying on among actors involved in solving a methodologies to enable actors to
other actors in the implementation of development problem, but also participate in a manner that maximizes
specific policies and programmes with a establishing a dynamic process that their potential.
long-term vision. In the social sphere, and involves a broad set of factors: political It has been shown that Latin America is
health services the quality of education will, political structure, institutional among the most innovative regions in the
really can rise in a solid, well-regulated framework, balance of power among world in terms of social development
framework through new forms of public- actors, the quality of leadership involved, practices and, to a lesser extent,
private partnerships. In the area of new and the related visions and need for sustainable development. The region’s
technologies and the information society, urgency that sustain the partnership an longstanding shortcomings in the public
regional dialogue on broadband is a ensure it is successful, balanced and provision of quality goods and services in
powerful tool for keeping governments up sustainable. The preparation process the social sphere have given rise to an
to date with technological developments must carefully take into account these innovative and entrepreneurial mindset
and adapting their regulatory frameworks factors through a strategic analysis of the among its societies, particularly from
accordingly, without losing sight of their actors involved in the PPP, have a clear actors at the community and local levels.
commitment to providing quality public picture of the balance of power, respective This should provide an incentive for
goods and services. Long-term agendas and of possible conflict zones, governments, business and civil societies
partnerships are required for the analyse key resources, define the to seek new sources of value creation
implementation of programmes using the methods of supervision and allocation of geared to societal, human and social
most appropriate skills of each actor. resources and clearly determine the development in a rights-based approach
accountability of the different actors in the to create an enabling environment for the
partnership. Other relevant factors to be generation of more innovative public-
duly assessed when identifying the actors private partnerships.
to be involved are capacity to influence,
governance, legitimacy, prestige,
functions, skills and abilities and the
availability of resources, both human and
financial.
Lastly, an underlying but key aspect to
take into account in a PPP is the cultural
complexity of setting up a partnership
between different actors with different
organizational backgrounds. When
designing a PPP, it is therefore essential to
place emphasis not only on the objective
and content of the issues to be addressed
by the partnership but also to foster
68 Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America
Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America 69
Acknow-
The preparation of this report was
supervised by Enrique García Rodríguez,
President and Chief Executive Officer of
the Development Bank of Latin America
ledgements
(CAF), and Alicia Bárcena Ibarra,
Executive Secretary of ECLAC, United
Nations, respectively Chair and Vice-Chair
of the Global Agenda Council on Latin
America of the World Economic Forum,
jointly with Marisol Argueta de Barillas,
Senior Director, Head of Latin America,
World Economic Forum, and Fernando J.
Gómez, Associate Director, Latin
America, World Economic Forum..
The report was coordinated, compiled
and edited by Alicia Bárcena Ibarra,
Executive Secretary of ECLAC, United
Nations, and Romain Zivy, Economic
Affairs Officer in the Office of the
Executive Secretary at ECLAC.
It was prepared collectively with the
members of the Global Agenda Council
on Latin America.
70 Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America
Authors of the Case Case 12. Inclusion of Carbon Footprint Lourdes Casanova, Senior Lecturer in
Measurement in Export Development Management, Samuel C. Johnson
Studies Strategies: Alicia Frohmann, Ximena Graduate School of Management, Cornell
Case 1. University for All (ProUni): Lourdes Olmos and Romain Zivy, ECLAC University
S. Casanova, Senior Lecturer in Case 13. Enhancing the Production and Marcelo Cortês Neri, Minister of Strategic
Management, Samuel C. Johnson Dissemination of Weather-related Affairs of Brazil
Graduate School of Management, and Indicators to Adapt Agricultural
Barbara Marchiori de Assis, Master of Akio Hosono, Director, JICA Research
Production to Climate Change by Means
Public Administration Candidate 2014, Institute, Japan International Cooperation
of ICT: Adrián Rodríguez, Mônica
Cornell Institute for Public Affairs, Cornell Agency
Rodrigues and Romain Zivy, ECLAC
University Kellie Meiman Hock, Managing Partner,
Case 14. Innovation in Public Services in
Case 2. Concession Schools in McLarty Associates
Brazil (“Project Juntos”): Antonio Ermirio
Colombia: Cecilia María Velez White, de Moraes Neto, Co-Founder, Vox Capital Susan L. Segal, President and Chief
President, Jorge Tadeo Lozano University, Executive Officer, Council of the Americas
Colombia Case 15. Regional Broadband Dialogue:
Mario Castillo, Chief, Innovation and New Antonio Ermirío Moraes Nieto, Co-
Case 3. Empresarios por la Educación Technologies Unit, Division of Production, Founder, Vox Capital
(ExE): Susan L. Segal, President and Productivity and Management of ECLAC,
Chief Executive Officer, Council of the Cecilia María Velez White, President,
and Edwin Fernando Rojas, Coordinator,
Americas Fundación Universidad de Bogotá Jorge
Regional Observatory on Broadband
Tadeo Lozano
Case 4. Partnerships for Progress and (ORBA) of the Division of Production,
Inclusion, Strengthening Technical and Productivity and Management ECLAC Humberto Luis Ribeiro, Secretary of
Vocational Education in Colombia: Commerce and Services, Ministry of
The report benefited from the valuable
Olympia Icochea, Senior Executive/ Development, Industry and Foreign Trade
inputs and comments from Olga Lucia
Vice-Presidency of Social Development, of Brazil
Acosta, Vianka Aliaga, María Elisa Bernal,
Latin American Development Bank (CAF) Caridad Canales, Ana Ferigra Stefanovic, José Juan Ruiz Gómez, Chief Economist
Case 5. Promotion of Productive Andrés Fernández, Sebastián Herreros, and General Manager, Research
Development through the Inclusion of Martin Hilbert, James Ireland, Juan Pablo Department Inter-American Development
Women in Quality Employment in Central Jiménez, Valeria Jordán, Rodrigo Bank
America: Sonia Montaño, Chief, and Ana Martínez, Marco Ortega, Wilson Perés,
María del Rocío Ruiz Chávez,
Ferigra Stefanovic, Division for Gender Andres Schuschny, Sally Shaw, Guillermo
Undersecretary for Competitiveness and
Affairs, ECLAC Sunkel, Cecilia Vera, Pamela Villalobos (all
Business Regulation, Secretariat of the
of ECLAC), Andrés Rugeles (Development
Case 6. Global University Engagement: Economy of Mexico
Bank of Latin America – CAF), Marcus
Thomas O’Toole and Alvaro Salas-Castro, Fuchs, Carlos March, Guillermo Scallan, Alejandro Poma, Managing Director,
Cornell Institute for Public Affairs (CIPA), Nias Vadhat (Fundación Avina), Margareth Grupo Poma
Cornell University Flores (Red eAmerica), Juan Luis Nuñez
Fernando Zavala, President, SABMiller,
Case 7. Digital Health Project of the (Fundación País Digital) and Laura
Peru
Federation of Internal Medicine (FEMI): Lattanzi (SOCIALAB).
Alvaro Vero, Director, and Ana Barbiel, The document was edited by the ECLAC Research Analyst
Coordinator, Digital Health Project of the Publications and Web Services Division.
Federation of Internal Medicine (FEMI), Lisa Ventura, Associate, Global Agenda
Uruguay Councils, World Economic Forum
Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America 71
Appendices 1. Methodology
and Case
Selection Criteria
Necessary Conditions
Authenticity
-- Does the initiative involve both private
(or philanthropic) and public capital?
-- Can the benefit in either economic,
social and/or sustainable development
or human capital be clearly identified?
Impact
-- Does the initiative have tangible impact
in its target area?
Robustness
-- Is the value of the initiative recognized
by a broad range of stakeholders?
Sustainability
-- Can the environmental, social and
economic sustainability of the initiative
be verified?
Transparency
-- Is the execution of the initiative a
transparent and open process?
Differentiating Criteria
Innovation
-- Is this a model known in a
conventional, known area but applied
in a different field?
-- Does it involve a novel partnership
element (financing, actors, timeframe,
deliverables, quality) that is new to an
established area?
-- Has it required the establishment of
new sets of performance dimensions
(quality criteria) which maximize value
delivered?
Impact
-- Does the initiative have tangible impact in
additional areas beyond the main target?
Diversity
-- Are non-conventional stakeholders
participating, beyond the parties
normally engaged in projects with
similar objectives?
Transferability
-- Is the model portable so that it can be
transferred to other countries?
Reach
-- Is the initiative a response to major
inequality risks in the region?
72 Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America
2. Authors Akio Hosono
JICA Research Institute, Japan International
Edwin Fernando Rojas
Coordinator, Regional Observatory on Broadband
and Affiliations
Cooperation Agency (ORBA)
E-mail: Hosono.Akio@jica.go.jp Division of Production, Productivity and Management,
ECLAC
Jaime Rodríguez E-mail: edwin.rojas@cepal.org
Principal Executive/Vice-President of Social
Development
Alicia Bárcena Development Bank of Latin America (CAF)
Executive Secretary E-mail: erodriguez@caf.com
ECLAC, United Nations
E-mail: secretarioejecutivo@cepal.org Carlos Narvaez
Principal Executive/Department of Structured Finance
Romain Zivy Development Bank of Latin America (CAF)
Economic Affairs Officer E-mail: cnarvaez@caf.com
Office of the Executive Secretary
ECLAC, United Nations Cecilia Barja
E-mail: romain.zivy@cepal.org Fundación AVINA
E-mail: cecilia.barja@avina.net
Lourdes S. Casanova
Senior Lecturer of Management Juliana Strobel
Samuel C. Johnson Graduate School of Management Fundación AVINA
Cornell University E-mail: Juliana.strobel@avina.net
Member of the Global Agenda Council on Latin America
of the World Economic Forum Alicia Frohmann
E-mail: lourdes.casanova@cornell.edu Division of International Trade and Integration
ECLAC, United Nations
Barbara Marchiori de Assis E-mail: alicia.frohmann@cepal.org
Master of Public Administration Candidate 2014
Cornell Institute for Public Affairs Ximena Olmos
Cornell University Division of International Trade and Integration
E-mail: bm524@cornell.edu ECLAC, United Nations
E-mail: ximena.olmos@cepal.org
Susan L. Segal
President and Chief Executive Officer Mario Castillo
Council of the Americas, USA Chief, Innovation and New Technologies Unit
Member of the Global Agenda Council on Latin America Division of Production, Productivity and Management
of the World Economic Forum
ECLAC, United Nations
E-mail: ssegal@as-coa.org
E-mail: mario.castillo@cepal.org
Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America 73
Endnotes
28. There are concerns that ProUni could perhaps help entrench 46. This is a non-governmental organization made up of public
social bias by channelling academically qualified students and private stakeholders involved in electronic health. For
from low-income families towards less prestigious private further information, see [online] http://www.sueiidiss.org.
tertiary education universities, rather than finding ways to
47. For more information, see [online] http://www.eclac.cl/
democratize access to the most renowned public universities
in Brazil by means of affirmative action. Additionally, most socinfo/noticias/paginas/3/44733/newsletter12.pdf.
private tertiary institutions are located in the wealthiest regions 48. See [online] http://sos.ucv.ve/ and http://www.eclac.cl/
of the country (the south, south-east, and central-west). As a
1. See the World Economic Forum’s reports on strategic consequence, while the wealthiest regions have publicaciones/xml/7/49897/SOSTelemedicinaVenezuela.pdf.
infrastructure. approximately one private institution per 9,000 people 49. This note was prepared by Akio Hosono, JICA (Japan
between 18 and 24 years of age, the north and north-east International Cooperation Agency) Research Institute. The
2. See “Breeding Latin American Tigers” ECLAC/World Bank, have less than one private tertiary institution per 16,000
2010, and ECLAC, 2008. author would like to thank the JICA Brazil Office for its
people between 18 and 24 years of age, according to valuable comments on an earlier version of this note. Any
information obtained in the INEP further education survey of errors or omissions are the responsibility of the author.
3. See Mariana Mazzucato, The Entrepreneurial State, 2013. 2011. Nonetheless, it is noteworthy that in 2012, Brazil passed
Law No 12,711/2012, regulated by Decree 7,824/2012, which 50. One major reason that illegal logging is difficult to stop is
4. Over time, ODA flows to Latin America and the Caribbean states that 50% of students accepted in federal universities
have declined significantly, as a share of overall ODA flows, as because rain forests are both vast and hard to access and
must be from public high schools. Fifty percent of these patrol. However, Brazil’s National Institute for Spatial
a percentage of regional GDP, and as a share of total financial students must be from families whose per capita income is up
flows. The region’s share of global ODA flows has fallen from a Research, the Brazilian Institute of Environment and
to 1.5 minimum wages. The deadline for compliance with this Renewable Natural Resources (IBAMA), the Japan Aerospace
peak of 10% in 1996 to 5.6% in 2011 (latest available data). requirement is set for 30 August 2016. ProUni is one of several
The share fluctuated between 12% and 15% during most of Exploration Agency (JAXA) and JICA have together achieved
programmes launched by the federal government to facilitate a breakthrough in patrolling using satellite monitoring.
the 1960s. the access of low-income students to tertiary education. Although the Brazilian satellite monitoring system was very
5. At the global level, the amount from private donors amounts 29. According to information obtained from the citizens
advanced, since Brazil used optical sensors, observation was
to nearly US$ 60 billion per year, equivalent to almost half the hindered by the heavy clouds often present during the rainy
information system of the Ministry of Education, on 22 July season, when most illegal logging took place. Since then, the
net ODA disbursed in one year by DAC donor countries. 2013 in response to a personal request by the author on 29 observation system has been dramatically improved with the
April 2013. use of Pulsar radar mounted on an advanced land-observing
6. The Latin American and Caribbean region is home to
one-third of the world’s freshwater reserves and 12% of its 30. Exchange rate of 21 November 2013 (US$ 1.00 = R$ 2.3067). satellite (ALOS) of JAXA, a system that is not affected by
arable land, one-third of world production of ethanol, around See [online] http://www4.bcb.gov.br/pec/conversao/ clouds and that operates 24 hours a day regardless of the
25% of the production of biofuels and 13% of oil production. conversao.asp. Accessed on 21 November 2013. weather. JAXA began providing satellite images to the
Global mineral reserves in the region include: 65% of lithium, Brazilian institute in 2007. The institute relays this information
49% of silver, 44% of copper, 33% of tin, 32% of 31. IBOPE. “Sumário Analítico – Pesquisa de Opinão Pública sobre to the federal police and to the Chico Mendes Institute for
molybdenum, 26% of bauxite, 23% of nickel, 22% of iron and o Programa ProUni e Assuntos Relacionados à Educação.” The Biodiversity Conservation, both of which are involved in
22% of zinc. The region also accounts for 48% of world study was obtained from the citizen information system of the monitoring and managing the Amazon. Thanks to improved
output of soybean and 21% of the global area of natural forest, Ministry of Education (on 31 May 2013) in response to a real-time data, Amazon deforestation has been decreasing,
and has an exceedingly rich biodiversity. personal request by the author on 29 April 2013. reaching its lowest ever point from 2009 to 2011. See Hosono,
A. (2013). As for sharing Brazil’s experiences and innovative
7. Such a vision is outlined in ECLAC’s call for a new equation 32. TCU. “Relatório de Auditorial Operacional – Programa solutions, based on Pulsar radar on the ALOS, with other
between state-market-society to bridge the traditional and Universidade para Todos (ProUni) e Fundo de Financiamento countries that face similar challenges through SSC/TrC, see
structural gaps that still hamper the region’s development. ao Estudante do Ensino Superior (FIES),” 2009. See [online] Aida, Y. and C. Kobayashi (2012).
See: Time for Equality. Closing gaps, opening trails (2010). http://portal2.tcu.gov.br/portal/page/portal/TCU/
51. This and the following paragraphs are based on information
comunidades/programas_governo/areas_atuacao/
8. “Strategic Infrastructure Steps to Prepare and Accelerate educacao/Relat%C3%B3rio%20de%20auditoria_Prouni. provided by JICA-Net (http://jica-net.jica.go.jp/
Public-Private Partnerships” (2013), World Economic Forum. pdf/. Accessed on 21 September 2013. lib2/07PRDM008, 2008).
9. “Breeding Latin American Tigers” (2008), ECLAC and World 33. TCU. “Acórdão 637/2012.” See [online] http://portal2.tcu.gov. 52. Embrapa Eastern Amazon and JICA have implemented
Bank and ECLAC (2010). br/portal/page/portal/TCU/comunidades/programas_ research cooperation projects on agroforestry.
10. See The Entrepreneurial State. Debunking Private vs Private governo/areas_atuacao/educacao/RELATORIO_PROUNI. 53. Web Page, JICA Brazil office 20120207.
pdf. Accessed on 21 September 2013.
Sector Myths (2013), Mariana Mazzucato.
54. See [online] http://www.fps.org.mx.
34. IBPT. “Carga Tributária Brasileira em 2012” (2013). See [online]
11. C. K. Prahalad (2011), The Fortune at the Bottom of the Pyramid.
http://www.contribuinte.org.br/img/uploads/novelty/ 55. See the examples of Movistar Innova in Santiago, Chile, Ruta
12. Eggers and MacMillan (2013). estudo/559/CargaTributaria2012IBPT.pdf. Accessed on 21 N in Medellin, Colombia, and CIADE in Jalisco, Mexico.
September 2013.
13. For instance, every year from 2004 to 2009, the Kellogg
35. MEC. “Processo de supervisão encerra 1.766 bolsas e
Foundation and ECLAC organized a “social innovation contest”
in Latin America and the Caribbean, which identified and desvincula instituições” (2009). See [online] http://portal.mec.
analysed 4,800 initiatives contributing to achieving the MDGs at gov.br/index.php?Itemid=86&catid=212&id=14681:proces
the local and community levels (http://www.cepal.org/dds/ so-de-supervisao-encerra-1766-bolsas-e-desvincula-
Innovacionsocial/). Ashoka has also implemented its instituicoes&option=com_content&view=article. Accessed on
“changemakers” programme (http://www.changemakers.com). 21 September 2013.
14. See [online] http://www.redeamerica.org and http://www. 36. TCU. “Acórdão 637/2012.” See [online] http://portal2.tcu.gov.
redeamerica.org/PremioLatinoamericano. br/portal/page/portal/TCU/comunidades/programas_
governo/areas_atuacao/educacao/RELATORIO_PROUNI.
15. See [online] http://www.fundacaolemann.org.br. pdf. Accessed on 21 September 2013.
16. See [online] http://www.unglobalcompact.org and http:// 37. Exchange rate as of 21 November 2013 (1 US$ = R$ 2.3067).
www.unglobalcompact.org/docs/news_events/8.1/GC_ See [online] http://www4.bcb.gov.br/pec/conversao/
brochure_FINAL.pdf. conversao.asp. Accessed on 21 November 2013.
17. See [online] http://sustainabledevelopment.un.org/content/ 38. TCU. “Relatório de Auditorial Operacional – Programa
documents/833glob_dev_rep_2013.pdf. Universidade para Todos (ProUni) e Fundo de Financiamento
ao Estudante do Ensino Superior (FIES),” 2009. See [online]
18. See [online] http://www.cepal.org/rio20/noticias/ http://portal2.tcu.gov.br/portal/page/portal/TCU/
paginas/6/48936/2013-123-Sustainable_development_WEB. comunidades/programas_governo/areas_atuacao/
pdf. educacao/Relat%C3%B3rio%20de%20auditoria_Prouni.
pdf/. Accessed on 21 November 2013.
19. See [online] http://www.effectivecooperation.org.
39. Exchange rate as of 21 November 2013 (1 US$ = R$ 2.3067).
20. See [online] http://www.povertyactionlab.org. See [online] http://www4.bcb.gov.br/pec/conversao/
conversao.asp. Accessed on 21 November 2013.
21. More information is available in the INEP report “Resumo
Técnico do Censo da Educação Superior 2011”, see [online] 40. TCU. “Acórdão 637/2012.” See [online] http://portal2.tcu.gov.
http://download.inep.gov.br/educacao_superior/censo_ br/portal/page/portal/TCU/comunidades/programas_
superior/resumo_tecnico/resumo_tecnico_censo_ governo/areas_atuacao/educacao/RELATORIO_PROUNI.
educacao_superior_2011.pdf. pdf. Accessed on 21 September 2013.
22. In 2009, the monthly average income per capita of the 41. Compensation funds are tax-funded institutions financed by
north-east was almost half (R$ 396.00 = US$ 171.67) of the worker payroll contributions to provide welfare services to its
monthly average income per capita of the south-east of Brazil affiliates (chosen by companies). They have developed
(R$ 759.00 = US$ 329.04). See [online] http://www. high-quality schools for their affiliates and have become
todospelaeducacao.org.br/. Exchange rate of 21 November enthusiastic participants in the project, as a form of social
2013. See [online] http://www4.bcb.gov.br/pec/conversao/ responsibility.
conversao.asp. Accessed on 21 November 2013.
42. Barrera, Felipe, “The Impact of Private Provision of Public
23. The PNE is currently pending in Congress (Substitute to the Education: Empirical Evidence from Bogotá’s Concession
Bill 8,035/2010). Schools”. World Bank Policy Research Working Paper 44121,
February, 2006.
24. See [online] http://www.globalinnovationindex.org/content.
aspx?page=gii-full-report-2013#pdfopener. 43. Bonilla-Angel, “The effects of Charter School on Academic
achievement, Evidence for Colombia”, February, 2010.
25. Exchange rate of 21 November 2013 (US$ 1.00 = R$2.3067).
See [online] http://www4.bcb.gov.br/pec/conversao/ 44. According to a new World Bank report on Latin America, the
conversao.asp. Accessed on 21 November 2013. region will grow 3.5% in 2013, a slight increase from last year’s
3% growth, but significantly below the 5% annual growth
26. INEP. “Sobre o ENEM.” See [online] http://inep.gov.br/web/ rates of the past decade (de la Torre et al, 2013).
enem/sobre-o-enem. Accessed on 9 September 2013.
45. Article 2 of this law states: “It is incumbent upon the Ministry
27. Bill initially proposed by the Executive branch to implement of Public Health to implement the National Integrated Health
ProUni. See [online] http://www.abmes.org.br/abmes/public/ System, which will coordinate public and private
arquivos/publicacoes/Cadernos13.pdf. Accessed on 21 comprehensive healthcare providers identified in article 265
September 2013. of law No. 17. 930 of 19 December 2005.”
74 Creating New Models : Innovative Public-Private Partnerships for Inclusive Development in Latin America
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