4TH HIGH LEVEL FORUM ON AID EFFECTIVENESS

EXPANDING AND ENHANCING PUBLIC AND PRIVATE CO-OPERATION FOR
BROAD-BASED, INCLUSIVE AND SUSTAINABLE GROWTH
A joint Statement for endorsement by representatives from the public and the private
sectors at the Fourth High-Level Forum on Aid Effectiveness
11 November 2011
The Fourth High-Level Forum on Aid Effectiveness in Korea promotes a more effective and catalytic
role of aid to leverage other forms and sources of support for development, including from
corporations and other private sector entities, in order to accelerate poverty reduction and boost
sustainable economic, social and environmental development.
It is in this regard that we, Ministers of developing and developed countries, representatives of
private sector entities and corporations and heads of multilateral and bilateral institutions and
regional organizations meeting in Busan, encourage greater cooperation between the public and the
private sectors, with the objective of better understanding our respective contributions towards
common development objectives, building on existing initiatives.
Representatives from the public and private sectors, as well as any additional development actors,
are therefore invited to express their support for this statement which builds on past months active
dialogue amongst a range of actors and entities, and is presented on the occasion of the Fourth
High-Level Forum on Aid Effectiveness.

ACKNOWLEDGEMENT
While recognizing the differing objectives of the private and the public sectors, and in particular
stressing that the responsibility and accountability for sustainable and inclusive development
ultimately lie with governments, this joint statement recognizes the critical importance of the forprofit private sector1 as a key engine of economic growth, job creation, innovation and sustainable
development.
The private sector is now widely acknowledged as a key partner in development, including through
establishing new enterprises, creating jobs, providing goods and services, generating income and
profits, and contributing to public revenues, which are critical to increasing countries’ self-reliance
and sustainable growth. This joint statement fully recognizes the diverse forms of engagement that
the private sector brings to support development, together with governments, donors and civil
society. These include core business activities, public private partnerships, social responsibility
activities, and cross-sector or multi-stakeholder partnerships for development.
This joint statement recognizes the important role played by governments and other public
development actors in enabling and leveraging these private sector activities. It stresses the
common objective across all partners to build on the various forms of private sector engagement,
including investment, capacity building, inclusive business models, knowledge sharing and
innovation and contributions to policy dialogue. It also recognizes the importance of developing
more conducive environments for entrepreneurship and private enterprise, domestic market

1

The “private” sector is a broad term that encompasses a range of diverse actors. It covers both formal and informal enterprise, micro,
small, medium, and large enterprises, local and global enterprise, private financial institutions, as well as business associations, including
women’s business associations.

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growth, participation in international trade, capital investment and realization of the full potential of
human capital in countries.
Recognizing the private sector as an equal, complementary partner in discussing and identifying
solutions and actions to promote development effectiveness, we jointly agree to the five shared
principles presented below, and together will consider possibilities for coordinated actions over
coming years that would positively impact on development. In promoting such coordination,
collaboration and effective country-grounded joint strategies and programming, we seek to turn the
diversity of development co-operation actors into an asset for the countries themselves, and not to
add to the current complexity and fragmentation of the development landscape.

FIVE SHARED PRINCIPLES
We, Ministers of developing and developed countries, representatives of private sector entities and
corporations and heads of multilateral and bilateral institutions and regional organizations,
recognize the importance of the following principles to maximize the benefit of coordination and
collaboration to support development:
(1) Inclusive dialogue for building a policy environment conducive to sustainable development: We
recognize that an inclusive dialogue between the public and private sectors is needed to improve
cooperation amongst all actors, develop synergies and generate new effective partnerships for
development. Governments should consult closely with the domestic and foreign private sectors in
order to create an enabling environment for development which promotes peace and stability, the
rule of law, enforcement of human rights, good governance with accountability and transparency,
the absence of corruption, adequate economic and social infrastructure, stable economic policy, an
educated workforce, clear property rights and enforceable contracts, enhances the competitiveness
of the local private sector and promotes equitable growth.
(2) Collective action: We believe that development requires the establishment of more permanent
interactive platforms for dialogue both at the country and global levels – where they do not exist - to
enable sustainable and competitive private sector development and the involvement of the private
sector in finding solutions to development challenges. Consultation with the private sector in the
elaboration of national and sector plans is a prerequisite to broadening country ownership of the
development process and ensuring inclusive growth, and expanding economic opportunity for all
segments of the population.
(3) Sustainability: We recognize that aid and other development efforts should scale up
development impact in a sustainable manner and align with local priorities and capacities. Public and
private activities should comply with relevant national laws and respect applicable international
norms promoting social, environmental, financial, economic as well as good governance progress2.
(4) Transparency: We recognize that long-term private sector development as well as effective
national budgeting and governance benefit from policies which are predictable and designed and
implemented in a transparent way. More progress can be made to encourage greater transparency
of public-private cooperation including Public-Private Partnerships, building on, where appropriate,
ongoing transparency and accountability initiatives3 in sectors which are critical to developing
2

Examples which might be applicable include: the ILO Tripartite Declaration of Principles concerning Multinational
Enterprises and Social Policy, the UN Global Compact, the OECD Guidelines for Multinational Enterprises and IFC
performance standards
3

Examples which might be applicable include: the Extractive Industry Transparency Initiative (EITI), the Natural Resource
Charter, the Kimberley process, the Forest Law Enforcement, Governance and Trade (FLEGT) initiative and the Construction
Sector Transparency initiative (CoST).

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countries’ economies. More transparency and a predictable institutional environment, including
effective and transparent procurement systems, are critical conditions to unlock the full potential of
private enterprise and open markets in a way that contributes to sustainable and equitable growth.
We believe that it is important to promote transparency of all players relevant for public private
cooperation including Public-Private Partnerships, including business, governments and international
organizations, subject to valid concerns about commercially sensitive information.
(5) Accountability for results: Our partnership should aim to foster discussion on options for
monitoring, reporting and evaluation of development results, measuring the sustainable impact of
public-private cooperation for development, including Public-Private Partnerships, and to sharing
the lessons learned from our partnership.

THE WAY FORWARD
On the basis of the shared principles mentioned above, representatives from the public and private
sectors encourage and engage in a new process for cooperation between governments and private
sector entities and they encourage all interested partners to join on a voluntary basis. This process
aims to be a key pillar in the new Global Partnership for Effective Development Cooperation on the
path to realizing all Millennium Development Goals and other development objectives. It aims to
develop concrete initiatives for improving understanding of the role of the private sector in
development and sharing lessons learned, in order to propose specific actions for greater
development effectiveness.
Within the coming months, interested public and private sector representatives who support the
Busan Joint Statement on “Expanding and enhancing Public and Private Sector Co-operation for
Development” will build on the momentum and contribute to informal informational exchanges with
a view to prepare a proposal, by June 2012, on how to further strengthen the dialogue and enhance
cooperation between the public and the private sectors at both country and global level, focusing on
sectors, global challenges and the Millennium Development Goals.
This process will be time-bound and supportive of broader arrangements related to the post-Busan
follow up and organization of the forthcoming Global Partnership for Effective Development
Cooperation. It will learn from and complement the activities of existing institutions and networks
for public and private sector dialogue at global, regional and country levels.
__________________________________________________________________________________

The two annexes below are distinct but complement the Busan Joint Statement in providing
illustrative selected examples of potential coordinated action and various partnership arrangements.
ANNEX 1: ILLUSTRATIVE SELECTED EXAMPLES OF POTENTIAL COORDINATED ACTION
The shared principles provide a basis for a range of coordinated actions that the public and private
sectors may agree to take in order to improve development effectiveness. The public and private
sectors should be encouraged to involve all actors and to share lessons learnt from their coordinated
actions by 2015, the Millennium Development Goals target year.
For example, these coordinated actions may focus on:

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- Transparent information on all flows and contributions to development.
Representatives of the public sector could:
 In close co-operation with the private sector, work to improve data collection and
dissemination on private aid, remittances, and Foreign Direct Investment flows having an
impact on development4
 At the country level, encourage broad accessibility to regular and transparent information
on all flows of Official Development Assistance, remittances, and private aid as part of the
regular national budget process in order to build the capacity of all parties to make better
use of the information for operational and policy decisions, while fully respecting
confidential business information.
 Fight corruption by broadening the support for, and deepening the implementation of,
existing transparency and accountability efforts such as the Extractive Industry Transparency
Initiative (EITI), the Natural Resource Charter, the Kimberley process, the Forest Law
Enforcement, Governance and Trade (FLEGT) initiative and the Construction Sector
Transparency initiative (CoST). We urge further global attention and debate in the area of
the governance of natural resources, including transparency of payments, and tracking of
mineral supply chains from conflict-affected and high-risk areas5. Governments should
implement and enforce relevant instruments developed by the United Nations and the
OECD for combating corruption.
 Promote increased transparency and competition in public procurement, particularly given
the increasing importance of private participation in infrastructure development through
modalities such as PPPs for delivery of public services, and to broadening support for
continued work in this area in the context of WTO - sponsored multilateral trade dialogue
and in other forums such as the G20 initiatives on infrastructure.
Representatives of Development Financial Institutions and the private sector could encourage
further disclosure of relevant information pertaining to private flows of funds affecting development
in the case of public-private partnerships that have a public development purpose, as long as
disclosure is in accordance with local laws and confidentiality arrangements. The public and the
private sector should continue to fight against bribery and corruption, including the prevention of
bribe solicitation and extortion.

- Building an enabling environment:
Representatives of the public sector could take steps to:
 Create an enabling environment for development, including peace and stability, the rule of
law, protection of human rights, good governance with accountability and transparency, the
absence of corruption, adequate infrastructure, stable economic policy, an educated
workforce, clear property rights and enforceable contracts that reduces informality and
enhances the competitiveness of the local private sector and promotes equitable growth.
This should be realized in close communication with the domestic and foreign private sector.
 Renew efforts toward improving countries’ policy and legal frameworks and regulatory
mechanisms, as well as strengthening skills and capacities of local private sector; and to
4

There are no precise figures on private flows given the diversity, lack of common agreed upon definitions and mechanism for capturing
data. The OECD DAC collects data – albeit with possible under-reporting – on 1) grants by private voluntary agencies; 2) private flows at
market terms; and 3) bilateral ODA through NGOs.
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4

Building on the OECD Guidelines Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict and High-Risk Areas

4TH HIGH LEVEL FORUM ON AID EFFECTIVENESS

improving access to financial services, local and regional markets, economic and social
infrastructure and other determinants of a good private sector climate.
 Lower barriers and create incentives for informal businesses to join the formal economy by
streamlining business registration processes, improving the regulatory environment and
procedures, reforming property rights systems and tax systems, and expanding access to
government services and other vital institutions.
 Build on best practice for using aid to leverage private sector investment. Engagement of
private sector participants and financing into countries and sectors where private capital is
scarce should be encouraged, through the effective, transparent blending of aid and
concessional lending with non-concessional resources, using sound principles to ensure
program sustainability and efficient resource use. Official agencies and Development
Finance Institutions should be used to provide critical knowledge and upgraded instruments
to improve risk management and catalyze the resources and talents from the private sector.

Representatives of the private sector could take steps to:
 Strive to seek effective forms of organization to be able to communicate the needs and
concerns of local business communities, including those of small- and medium-sized
enterprises, foreign investors, and the informal sector to governments and
intergovernmental organizations in order to help improve countries’ efforts in building
enabling environments for development and private sector-led economic growth and job
creation.
 Disseminate and promote voluntary sectoral and regional agreements on anti-bribery and
corruption measures, established among companies themselves. These can be effective
instruments to discourage the supply of, as well as demand for, bribes.
 Engage with governments in order to unleash the talent, creativity and potential of women
in the workplace. As the repository of half of all human talent and potential, women are an
underutilised and valuable resource, in developing and developed countries alike.
 Promote the corporate social responsibility of private enterprises.
 Engage with stakeholders, including the communities where they invest, their employees,
customers suppliers, trades unions, civil society organizations and human rights
organizations to share information, undertake collaborative projects, to speak out together
on issues of common concern and to together find ways to enhance the positive, and
eliminate or mitigate negative effects, of private sector development on affected
stakeholders
 Continue to undertake efforts to increase energy and material efficiency. The private sector
will continue to play a major role in the implementation of greener growth in many different
ways, including through the reduction of environmental impacts of production, efficient use
of natural resources, waste prevention, and the development of new products and services.

Both the public and private sectors should continue to support aid for trade and working towards
abolishing trade barriers, subsidies and other discriminatory frameworks.

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- Integrating the private sector in the local development context:
Representatives of the public sector could take steps to:
 Systematically seek the participation of representatives of the private sector in the global,
national and local dialogue in order to expand and enhance public and private sector
cooperation for development. Capacities of all sides, including business associations and
cooperatives, should be strengthened to engage the private sector.
 Promote broader market and value chain development approaches that bring together large
and small companies, government authorities, donors and other stakeholders in coordinated
and integrated efforts to support income generation, sustainable production and capacity
development.

- Broaden partnerships between the public and the private sector:
Representatives of the public sector could take steps to:
 Apply the lessons on what makes cooperation between the private and public sectors work,
including on Public-Private Partnerships including:
 Promote leadership and political commitment by governments to prepare the groundwork
to ensure public and private cooperation including PPPs are demand-driven, balanced and
sustainable. This includes effective policy, legal and regulatory frameworks, anchoring such
cooperation into national and sector plans and engaging local stakeholders and local
communities. This also requires capacities in the public sector to identify and transparently
select the best partners for public-private cooperation including Public Private Partnerships
and effectively manage the contractual and regulatory processes.
 Work towards shared objectives by building trust as well as sharing the risks. Shared
decisions should factor in risks and include the public sector, making available, as fitting, a
broad range of instruments, including financial and contractual instruments, with
appropriate terms, conditions and risks management which can mitigate the political,
economic and financial risks to encourage private investment in developing countries. The
valuable tools developed by official agencies and Development Financial Institutions should
be further expanded and upgraded to support public and private cooperation for
development including Public Private Partnerships.
 Encourage transparency and competition as a means to assure good governance of such
processes. Governments should ensure that public and private cooperation including Public
Private Partnerships are demand-driven and competitive in order to increase the chances of
innovation and bring benefits to the local private sector.

Representatives of the public and private sectors could work together to improve results
measurements6 by prioritizing “what to measure” and by harmonizing terminologies between the
private and public sectors. Focus should be placed more on measuring development impact over
inputs and outputs, and encouraging use of results as a way to improve performance rather than as
an end product.
6

Such an effort would build on existing guidance such as the OECD –DAC principles for evaluating development assistance, the Good
Practice Standards for Evaluation agreed by the Multilateral Development Banks, the Common Performance Assessment System
(COMPAS) and the Donor Committee for Enterprise’ Development’s (DCED) “Standards for measuring results in private sector
development”

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__________________________________________________________________________________
ANNEX 2: ILLUSTRATIONS OF VARIOUS PARTNERSHIPS ARRANGEMENTS
- Core business activities- Through developing inclusive business models with the poor as suppliers
(e.g. local content, value chain), as employees, and as customers (e.g. affordable health, education,
micro-banking)
 Role of business: Responsible core business; investor; innovator
 Role of government: Regulator; enabler
 Role of donors: Support to government to create good business enabling environment;
support to companies to develop inclusive business models (share risk)
 Role of civil society: Partner in certain inclusive business models (e.g. in adapting goods /
services to be appropriate for poor customer needs)
- Public Private Partnerships - private sector uses its core business to provide public goods /
infrastructure / services for a profit
 Role of business: Core business; investment and implementing partner
 Role of government: Regulator; partner
 Role of donors: Support to / capacity building of government to implement its role
 Role of civil society: Advisors; representatives of stakeholder groups in governance
structures
- Cross-sector or multi-stakeholder partnerships for development (e.g. around health, education,
skills development, shared infrastructure, regional economic development etc.) in which business
combines its resources and competencies with other sectors’ to develop the community / wider
society in which it operates: for the management of risk, reputation and social/legal license to
operate, and to have the social, business and physical infrastructure necessary to operate
effectively.
 Role of business: Partner (potentially both financial and implementing);
 Role of government: Partner (potentially both financial and implementing); champion;
regulator (usually only light touch if necessary at all);
 Role of donors: Partner (potentially both financial and implementing); facilitator / broker;
partnering capacity builder
 Role of civil society: Partner; champion; advisor

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SIGNATORIES TO THE JOINT STATEMENT (as of 28 November 2011)
The process leading to this Joint Statement was initiated and managed by the OECD.
The Joint Statement was formally endorsed by:
 Austria
 Belgium
 Business Call to Action
 Business and Industry Advisory Committee to the OECD
 Canada
 Caribbean Community (CARICOM)
 Common Market for Eastern and Southern Africa (COMESA)
 Confédération des Entreprises Citoyennes de Tunisie
 Confederation of Danish Industry
 Conseil Français des Investisseurs en Afrique
 Czech Republic
 CONNECT, Tunisia
 Denmark
 European Business Council on Africa and the Mediterranean (EBCAM)
 European Development Finance Institutions (EDFI)
 European International Contractors
 Finland
 France
 GAVI Alliance
 Global Business Coalition on Health (GBCHealth)
 Germany
 Global Fund to Fight AIDS, Tuberculosis and Malaria
 Global Partnerships Forum
 International Business Leaders Forum
 International Finance Corporation
 Japan
 Korea
 Mali
 Netherlands
 Omega Farms, Ethiopia
 Pan African Business Coalition on HIV and Health

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 Peru
 Portuguese Association for Economic Development and Cooperation
 Sanofi
 Spain
 Sweden
 Switzerland
 Tanzania private sector foundation
 United Nations Global Compact
 United States of America
 World Business Council for Sustainable Development
 Zambia

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