Private sector development and ict for development

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Private sector development and ict for
development
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The Why ? -- Purpose, Objectives, Incentives,
Payoffs
Bigger upside over time (however define)
Earlier/faster benefits Better Risk (and Reward)
equation achieve together what cant do
alone/whole bigger than parts Increase
Competitiveness -- Paradigm breakthroughs Leverag
e, multiply, target resources and focus
competencies Learning together gt key payoff and
ROI Critical success factors public
development private sector Key relationships,
political cover Power of the idea, not the
money Creating value, and leading the
change/transformation process
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Context/Game Changing ?Development Environments

• Greater uncertainties/discontinuities
• Speed of change non-linearity
  acceleration/compression
• G- force
• More complexity/interrelationships/new X-cutting
  key factors
• Globalization, boundaries gone
• More players and competition
• People/skills more critical
• Paradigm changes power of culture, and
  cross-culture
• Public/private/civil sectors -- converging
  interests
• Standard business/financial data less
  relevant/available,
• and quantifiable info
  access/democratization
• Old simple data/projections game doesn't work
  (e.g. ROI)
• Newtonian ? Quantum world
• Learning from change

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Private Sector Development and ICT Both Crucial

• The world is flat
• Speed, power, access
• Human Capital gt empowerment gt world knowledge
• Bottom-up
• Customer/client/market drivers
• Information mgt gt purposefulness
• Ideas to action
• Entrepreneurs changing communities world

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Role of Government

• Enabling Environment
• Economic governance
• Regulatory empowerment
• Competitiveness and innovation policies
• Role of Private Sector
• Innovation
• Venture Development
• Resources (all kinds) and investment
• Commercialization

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Economic Governance Key Factors
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Strategic partnership in Vietnam gt TOPIC-64
Training Online Partnership in ICT for
Communities (TOPIC 64)
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Other Vietnam Public Private Partnerships

• High Value Cocoa Industry Dev't in Vietnam ?
  SUCCESS ALLIANCE
• MARS/Masterfoods, Cargill USAID GVN
  ACDI-VOCA (Agri-Bus Dev' NGO)
• Wireless/Satellite Internet Broadband
  applications/"knowledge access" for remote/rural
  ? Last Mile Initiative
• Private Intel TD Com Lign Up WRI
  SRA SOLITECH
• Public USAID AUSAID GVN (MPT, VNPT,
  VDC, EVN, VTF )
• Infrastructure Financing/ Revenue Bonds ?
  Developing National Policy and Legal Framework
• USAID Venture/Invest Fund (Vietnam
  Partners JP Morgan/Citi Group) HSBC EDI
  Min of Finance State Securities Trading Centers
  Hanoi and Ho Chi Minh City Investment Funds)

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USAID Role and Approach Social Venture
Capitalist (PPPs)

• Shared Values
• Whole bigger than parts Achieve more together
  than separately
• Fundamentally about people Using technology,
  info, skills, resources to enable people to
  transform their own lives
• Public sector Venture Capitalist gt other
  sponsoring partners need/opportunity,
  vision/value, champion and entrepreneurial team,
  partnership/deal development and structure,
  resources/commitments ( and expertise),
  skills/human capital support, exit strategy,
  non-financial Return on Devt Investment
  defining success, expansion strategy, future
  investors/funding VTC, long term commercial
  sustainability
• Consultative process client/counterpart
  needs/wants, convergent and shared interests,
  complementary skills/resources, leveraging each
  others contributions/capabilities, clear focused
  roles, team-building

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Lessons Learned Challenges/ Opportunities

• Technologies here and work (broadband strategies)
• Understand difference between Public and Private
  roles
• Shared visions/complementary goals/resources gt
  public/private
• Sufficient resources come in many forms
• Limits gt ONLY powers of imagination,
• Power of ideas will galvanize resources
• Applications and content the next frontier
• Perceived value creation and willingness to pay
• Commercialization, scaling-up, sustainability
• Multiple needs/solutions/entrepreneurial
  competition
• The Underserved, Base of Pyramid also a market
• Business and Development gt good partners

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Creating Entrepreneurial Spirit/Process in Public
Sector

• Hire from private sector
• Leverage resources, competencies etc
• Priority on Economic governance/enabling
  enviromnt and empowerment
• Create PPPs around shared devt and commercial
  visions
• Focus on human capital and value creation
• Reward innovation and allow mistakes/learning (VC
  model)
• Share credit gt everybody wins

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Some New Frontier Development Factors

• Benefits of "early bird"
• Forget the old data/statistics/projections
  crutches
• What you can't quantify is more important
• People and relationships Key
• Higher uncertainty higher returns chaos even
  more
• Learn by doing get on the curve of
  transformation/change
• What everyone learns is more powerful Return than
  
• All about creating new value
• Good deal better (than it looks) and bad deal
  worse (than looks)
• Not what we DON'T know that's the problem but
  what we DO know that ain't so
• Harness/leverage the powers of culture