As public-private partnerships increasingly become popular tools for development cooperation, development agencies should address key issues to ensure public funds diverted through such partnerships are not wasted and reach their target beneficiaries, according to the European Network on Debt and Development.
In its submission about PPPs to the Organization for Economic Cooperation and Development’s Working Party on Aid Effectiveness, Eurodad outlined the following recommendations for donors and international development agencies:
- Avoid using official development assistance for PPPs.- Review past failures and successes of PPPs in developing countries and consider alternative tools such as public-community partnerships or public-public partnerships.- Establish clear guidelines to ensure public money is channeled only to private sector initiatives that adhere to the best standards of responsible finance and those that are proven capable of delivering positive development outcomes.- Mainstream aid effectiveness principles in all PPPs.
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About the author
Ivy Mungcal
As senior staff writer, Ivy Mungcal contributes to several Devex publications. Her focus is on breaking news, and in particular on global aid reform and trends in the United States, Europe, the Caribbean and the Americas. Before joining Devex in 2009, Ivy produced specialized content for U.S. and U.K.-based business websites.
