Private Sector Development Forum

Presentations for the early afternoon sessions if available are posted by speaker - click on their name. If not, please request a copy by writing to ESaintfort@ifc.org.

BUSINESS REACHING THE POOR: THE ASIAN EXPERIENCE IN EXPANDING MARKET OPPORTUNITIES

Business is a key driver of lifting people out of poverty both through the opportunities it creates and the services it provides. While there is growing literature on the need for business to reach the bottom of the "pyramid," there is still a need for recognized best practices. This session examined the experiences of firms operating in Asia that have successfully targeted poor populations. Exciting examples include the rapid spread of mobile telephony, the expansion of banking services, and new ways of marketing and providing consumer goods. Panelists explored the potential of such change to expand opportunities for the poor in the formal and informal markets in Asia. Key questions addressed included: Do new technologies and business models really provide solutions for the poor, particularly those most disadvantaged? What does this mean for those companies still operating in traditional ways? What is the incentive for companies to target poor populations in corporate strategy? What lessons can multinational firms and companies in other regions learn from Asian companies on how to reach out to new markets among poor populations, and vice-versa? What are the challenges for policy-makers and regulators to encourage the private sector to offer these new services and better meet the needs of poor populations as consumers and producers?

Panelists:

Shanta Devarajan, Chief Economist, South Asia Region, World Bank Group

Yogesh Deveshwar, Chairman, ITC, India

David Housego, Executive Director, Shades of India, India

Rupert Keeley, President and Chief Executive Officer, Visa International, Asia and Pacific Region, Singapore

C. K. Prahalad, Professor, Stephen Ross School of Business, University of Michigan, United States

Moderator:

William Laufer, Associate Professor, The Wharton School, University of Pennsylvania, United States

Organizers:

Simon Bell, South Asia Region, World Bank Group; and Michael Jarvis, World Bank Institute, World Bank Group

EMERGING CHAMPIONS: SOUTH-SOUTH AND SOUTH-NORTH FOREIGN DIRECT INVESTMENT (FDI)

Private sector capital flows into the developing nations have achieved record levels in 2005 and 2006. Meanwhile, foreign direct investment between developing nations is growing at five times the rate of investment into these economies from industrialized countries. South-south FDI accounts for an estimated one third of all FDI going into developing countries. The main actors in this dynamic new facet of the broader globalization trend are so-called 'Southern Multinationals' - companies from developing countries that are globalizing their operations both in other developing countries and in developed economies. Distinguished panelists from southern and northern multinational companies discussed the challenges, opportunities, and policy implications presented by these developments. Key questions addressed included: What are the key drivers of South-South investments on the one hand and South-North investments on the other from the corporate perspective; given these rivers, in which locations and in which sectors will the next wave of such investments take place? What are the risks to brand and reputation of South-South and South-North investments from the corporate perspective? What are the key investment climate factors that impact South-South investments? What should host governments in frontier countries do to attract a greater share of such investments? What role can the World Bank Group and other development banks play in facilitating more such investments with strong developmental impact?

Panelists:

Andrei Bougrov, Managing Director, Interros, Russian Federation

Ting Chan, Corporate Development Director, Hutchison Telecom, Hong Kong (China)

Francisco Luzón, Executive Vice President, Grupo Santander, Spain

Alan Rosling, Executive Director, Tata Sons, India

Jackson Tai, Vice Chairman and Chief Executive Officer, DBS Group Holdings and DBS Bank, Singapore

Moderator:

Richard Frank, Chief Executive Officer, Darby Overseas Investment Ltd., United States

Organizers:

Reyaz A. Ahmad, Global Manufacturing & Services Dept., IFC, World Bank Group; Thomas Davenport, Foreign Investment Advisory Services, IFC, World Bank Group; and Charles Blitzer, International Capital Markets Department, International Monetary Fund

WILL PUBLIC-PRIVATE PARTNERSHIPS IN INFRASTRUCTURE LIVE UP TO THEIR PROMISE?

The rise and fall of investment levels in private infrastructure projects in developing countries is by now a familiar story. From low levels of under $20 billion in the early 1990s, investment boomed on the back of privatization of telecoms and power in Latin America and, to a lesser extent, greenfield power generation investments in East Asia, reaching a peak of $114 billion in 1997. However, economic crises in East Asia and Latin America, and conflicts between public and private parties in the context of specific PPP transactions, led to higher capital costs and perceptions of risk. This experience has led both governments and the private sector to re-evaluate the risks and rewards involved in private participation in infrastructure. At the same time, rapid growth in Asia continues to place a strain on existing infrastructure stocks, and many governments in the region are looking to increase the role that PPPs play in meeting critical infrastructure needs. A panel of distinguished policymakers and practitioners discussed the lessons of the last decade and how they may be used to design PPPs that are sustainable, affordable to the government and consumers, and profitable to investors. Key questions addressed included: Are the levels of government support to PPPs, including guarantees and risk-bearing, appropriate or too expensive? What can governments do to reduce this support yet still bring in the private sector? What is the role of public-private dialogue in the design of PPP transactions? What steps can be taken to reduce public resistance motivated primarily by anti-private/foreign investor ideology? What steps can be taken to use public scrutiny of PPP transactions as a monitoring tool? Japan's Policy and Human Resources Development (PHRD) Fund has provided assistance in developing this session.

Panelists:

Boediono, Coordinating Minister for Economic Affairs, Department of Finance, Indonesia Kiran Grandhi, Group Executive Council Member, GMR Group, India Olivia Lum, Group Chief Executive Officer and President, Hyflux, Ltd. Singapore

Moderators:

Hiroto Arakawa, Executive Director, Japan Bank for International Cooperation, Japan Katherine Sierra, Vice President and Head of Network, World Bank Group

Organizers:

Christian Delvoie, East Asia and Pacific Region, World Bank Group; Clive Harris, South Asia Region, World Bank Group; Toshio Nagase, Planning and Coordination Division, Japan Bank for International Cooperation (JBIC), Japan; Miho Ota, Planning and Coordination Division, Japan Bank for International Cooperation (JBIC), Japan; and Hadi Soesastro, Centre for Strategic and International Studies, Indonesia

THE CLIMATE OF 2030 – IMPACT ON DEVELOPMENT AND BUSINESS TODAY

In the years ahead, climate change will have an impact on the daily lives of human beings in one way or another. Shifting weather patterns and a rise in sea level will accentuate flood and drought cycles, increasing the frequency and force of weather-related hazards. In turn, this will increase the incidence of vector borne diseases. As is often the case, natural disasters transform themselves into human disasters with increasing economic and social costs. Nevertheless, climate change remains low on the list of priorities of most developed and developing countries. For most policymakers, the uncertainties of local impacts and other current pressing needs make climate change a distant problem. Equally for the private sector, the impacts may seem unclear. While some industries such as the insurance industry may already be feeling the impact of climate change in its bottom line especially in developed countries, the challenge lies in responding to increased regulations and a growing public perception about the private sector's responsibility in ensuring a better future. Panelists presented a scenario of the world in 2030, showcasing how predicted changes in climate patterns will affect economies and people in both the developed and developing world. After setting these future trends, a highly interactive debate focused on the opportunities and solutions that policymakers, technology developers, and the business community are putting in place today to mitigate the effects and adapt to the impacts of climate change tomorrow. Key questions addressed included:   How will climate change affect food security, energy, and economic growth, with an emphasis on developing countries? What policy options and actions are needed to mitigate climate change effects and adapt to shifting weather patterns? What is the role of the private sector in addressing climate change issues?

Panelists:

Valli Moosa, President, World Conservation Union (IUCN), Switzerland Rajendra K. Pachauri, Director General, The Energy and Resources Institute (TERI) and Chairman, Intergovernmental Panel on Climate Change, India Graeme Sweeney, Executive Vice President, Renewables, Hydrogen & CO2, Shell International Renewables, B.V., The Netherlands Don Ye, President and Chief Executive Officer, Tsinghua Venture Capital, China

Moderator:

Ralph Begleiter, Rosenberg Professor of Communication and Distinguished Journalist in Residence, University of Delaware, United States

Organizers:

J. Warren Evans, Environment Department, World Bank Group; and Aimilios Chatzinkolaou, Environment and Social Development Department, International Finance Corporation, World Bank Group