* Read the blog in 80+ languages with the translator widget on the right side of the page!
The exchange of knowledge and technology among countries of the global South to accelerate development has gained new impetus over the past years. Most South-South cooperation, however, focuses on government-to-government initiatives, thereby overlooking the potential contribution of non-state actors, particularly private sector organizations and networks.
The exchange of knowledge and technology among countries of the global South to accelerate development has gained new impetus over the past years. Most South-South cooperation, however, focuses on government-to-government initiatives, thereby overlooking the potential contribution of non-state actors, particularly private sector organizations and networks.
Within the South-South and triangular cooperation framework, chambers of
commerce, business associations, private foundations, universities and
financial institutions have been developing innovative solutions to development challenges. Many
are investing in knowledge and skills
development to build productive capacities and integrate the disadvantaged to
the market. Others are developing innovative business and financial instruments
to foster entrepreneurship. These initiatives are being exchanged by private entities directly or in collaboration with governments through
Public-Private Partnerships (PPPs).
In Latin America and the Caribbean, the Multilateral
Investment Fund (MIF) has been using the vast repository of knowledge generated
by private entities to boost development in the region. Launched in 2009,
the South-South Knowledge Transfer Program replicates successful MIF projects
by capturing knowledge derived from those initiatives and reusing it in other
institutions facing similar development challenges. Between 2009 and 2014, 11
projects in areas like value chain development, youth entrepreneurship, microfinance and business incubation were funded. These projects provided
direct benefits to 45 public and private organizations, 150 additional local institutions,
350 technical staff, and more than 3,500 individuals in 17 countries.
In
Colombia, the MIF supported the Chamber of Commerce of Cartagena (CCC) develop methodologies,
technical assistance initiatives, and training programs to enhance small retailers
businesses. The service sector accounts for approximately 50% of Colombia’s gross
domestic product and employs 60% of the economically active population.
Approximately 700,000 neighborhood shops provide more than one million jobs,
and account for 62% of the sector’s businesses. Yet, Colombian retailers face
numerous challenges such as limited business education, inadequate facilities,
and unfamiliarity with the laws governing businesses. CCC and MIF helped over
300 retailers move from survival strategies to efficient and profitable
businesses.
The
Chambers of Commerce of Ibagué, Cauca, Guajira, and Quibdó, who had been
exposed to CCC methodologies, expressed their interest to
learn more from the experience. These chambers had started similar initiatives,
but they were mostly ad hoc efforts
with little impact on the ground. Working with CCC and the South-South Knowledge Transfer Program was therefore an
opportunity to develop more structured and systematic initiatives based on a
previously tested experience. In Cauca, the project helped increase sales by
20% and USD20 million were reinvested to expand and/or modernize businesses. In
La Guajira, the microenterprise development program was incorporated into the
portfolio of the Chamber of Commerce and is being replicated in other sectors.
Through the various initiatives supported so far, the South-South Knowledge Transfer Program has learned that the limited availability of best
practices and mechanisms in matching the supply and the demand for knowledge and technology hinder more pro-development initiatives by the private sector. Acquiring, adapting, and
applying the knowledge generated by
private entities is a medium-term process, and recurrent interaction is
necessary in all relationships. Hence, the program has been combining one off
activities (i.e. trainings and visits) and support services (i.e. technical
assistance, advisory, mentoring, and online communities) over time to advance
and strengthen partners’ learning process.
One example was the transfer of the Uruguayan Ingenio’s
expertise in supporting startup businesses to other business incubators in El Salvador, Panama and Paraguay. The
transfer consisted of a sequence of training and mentoring activities in each
participating country designed to match specific partners’ needs. The transfer also included reference materials and networks to enhance personal ties and contact
opportunities beyond the project life span. The project originally intended to create
a virtual learning community to deepen networking among the four partners, but the lack of a communication and knowledge
management strategy as well as funds to maintain the IT system and manage the
community after the end of the project limited the results of this particular effort.
The knowledge generated by private-sector entities and networks has the potential to become innovative development experiences that can be replicated and scaled up. South-South and triangular cooperation should build on this knowledge to catalyze change of greater
magnitude, including through public-private partnerships. More information on private sector-led experiences and public-private partnerships in development should be collected to enhance knowledge exchange instruments and the adaptation of these experiences to the local context.
