Can Public and Private Sectors Work Together for the Poor?

Submitted by John Paul on August 10, 2005 - 14:22.
Published in: |


While discussing examples specific to GMOs and other agriculture technology, this paper addresses the broader question: are public-private partnerships (PPPs) simply a new development fad or a promising approach to achieving advances for the poor?

The article points out that while public-private partnerships are not essential to harnessing new technologies for the poor, private companies tend to have better equipment and facilities than the public sector, and the private sector controls some important intellectual property. The work will go much faster and the results will likely be more powerful if the private sector is involved.

The author highlights several factors that can make PPPs successful. It’s helpful for both parties to have a shared goal or interest in a particular outcome, and for the benefits of working together outweigh the costs of conducting and collaborating on the research. In some cases, partnerships benefit from the inclusion of a civil societ organization to increase transparency and legitimacy. Partnerships may also be more effective when they involve locally owned private firms, rather than large multinationals.

Challenges remain. The private sector can be frustrated by the slow pace of decisionmaking and action in the public sector, whereas the public sector sometimes distrusts the motives of those in the private sector. Also, partners must work out the terms of intellectual property rights in advance.

The full article is available here.


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Submitted by Tim Harford on August 16, 2005 - 10:46.
Public and private can also work together to cut red tape - the private sector helping design a reform program, and the government having the advantage of being able to explain their aims. We have a short post and a paper on this subject over at the Private Sector Development blog: http://psdblog.worldbank.org/psdblog/2005/08/competitiveness.html

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