Public Private Partnerships (PPP) are driven by synergy
Presentation by Amir Dossal
Executive Director, UN Fund for International
Partnerships,
Columbia University, 18 June 2004
Thank you for inviting me here to day to speak about partnerships. I understand many of you come from varied backgrounds with varied expertise, and I would like to share with you how to bring the strengths of diverse backgrounds together to work for the public good.
Let me start by saying public private partnerships are not new - in fact, the first such partnership recorded in this country was in 1652, when the Water Works Company of Boston began providing drinking water to citizens. And at the United Nations, we have been building partnerships for over 50 years. But as globalization and information technologies draw the peoples of the world closer, so do they knit together social, economic, political and cultural challenges. It is increasingly difficult to work in any one of these areas without considering the impact or repercussions in another. From this, a space has formed that did not exist before - a space where public private partnerships among governments, civil society, foundations and the private sector are gaining recognition as a promising approach for addressing social challenges.
I will share with you the words that the UN Secretary-General, Kofi Annan, delivered at the 1998 World Economic Forum: "Creating wealth, which is business's expertise, and promoting human security in the broadest sense, the UN's main concern, are mutually reinforcing goals. Thriving markets and human security go hand in hand. A world of hunger, poverty and injustices is one in which markets, peace and freedom will never take root."
These words are even more important in a post-September 11th world. What we witnessed on that day was not just a loss of lives from over 60 nations, but also the now inseparable links between politics and economics, between global markets and local cultures, and between public policy and private interest. Since then a complex world has become even more uncertain and the social and economic interrelationships more pronounced.
This was not always the case. Towards the end of the Cold War, the roles and responsibilities of governments, the private sector and civil society organization were well defined. However the past 15 years have seen an explosion of civil society organizations worldwide, the globalization of business, the revolutionary force of communications and information technologies - and this has changed the perspective on what governments can and should do. New networks between the public and private sectors have emerged from this revolution, re-defining - and at times clouding - the previously clear roles of government, business and civil society.
In light of these developments, private enterprise has an increasingly important role to play. Trade and technology transfer not only create business opportunities and wealth, but can also help to weave nations together. Even before September 11th global companies were being asked to think beyond the boardroom and bottom line, to act responsibly and contribute to broader societal goals. At the same time, companies with a global reach are finding new market opportunities by engaging in the developing world.
Public private partnerships provide quality services and infrastructure on a very cost-effective basis. Yet there is concern by some that such arrangements compromise the social good of a public sector endeavor, or serve more to better the image of a private sector partners than further a wider purpose. There is a fear that the intrusion of capitalism will diminish the pursuit of a public good.
My view is that you create greater wealth when you partner; you bring more resources to the table. By remaining vigilant about who your partners are and their motivations for working together - the risk of being compromised is very small in comparison to the potential gains for good.
True public private partnerships don't allow one partner to do very little yet reap praise for its social concern. A public private partnership begins with identifying a problem or issue, then asking who should address it. This doesn't allow a narrow view from any one partner - it is a collective analysis and plan. The result is about shared agendas and combined resources, risks, and rewards. It is a situation where the whole is greater than the sum of its parts.