CHALLENGES OF A MULTI-ACTOR COOPERATION FOR A BETTER DEVELOPMENT

A conference organized in Madrid has allowed analyzing the opportunities and difficulties related to a necessary multi-actor Alliance, aimed to create greater impacts

Author: Fernando Varela and Mélanie Romat

Last January 19th, a conference entitled “Towards a more effective Development Cooperation: the necessary alliance of all actors” took place in Madrid, organized by La Caixa Foundation, ICEX and the Club of Exporters and Investors. The conference, divided in two thematic blocks, was planned with the aim to analyze the contribution of business before the development’s challenges we are currently facing.

Several professionals from the private sector, NGOs and institutions have participated to the seminar’s round tables, which allowed analyzing in details the connections created between these different areas over the past years.

The first relevant aspect highlighted during the conference is the necessary implication of private sector to achieve a broader development.

The key role that can be played by business has been underlined, especially in terms of innovation and in the provision of “expertise” and resources. Thanks to the collaboration of the private sector, NGOs and institutions can increase their scope, promoting changes that offer a wider impact. On the other hand, civil society organizations can support the company in its adaptation to local environment, so that its processes, products and/or services can be interlinked in a harmonious way with local actors. Furthermore, the benefice is mutual and the company can take advantage of this synergy, improving its reputation, stability and retention of talent.

The contribution of business to development is more and more perceived as a must, and new cooperation modalities are appearing to meet an increasing and diversified demand, coming from different types of situations. In the area of finance, we assist to the emergence of new models, for example blending which offers a hybrid funding mixing public and private funds.

Despite the obvious positive impact generated by these alliances, several speakers have insisted on the difficulties than can appear when time comes to establish a collaboration business-NGO, due to their differences of cultures.

Thus, an essential aspect is to clear preliminary suspicions from the beginning through a constructive dialogue, understanding the interests and approaches of all the stakeholders, leading to the definition of goals and consensual actions. Without an understanding platform among all the parts, based on a mutual trust, it is very difficult that initiatives can succeed.

It is also important to integrate the notion of development directly to the “core business” of the company and do not limit it to a lateral aspect or a mere social investment, disconnected from its main activities. A way to achieve it is to analyze the value chain of the company, checking the ways of doing with a development and sustainability approach. In other words, we can reach the same business goals and expand the local value of the company (for example through the contribution of SME to supply and distribution chains, contracting local staff or creating alliances with NGOs).

Taking this aspect into account, benefits can be relevant if we manage to create a real rapprochement and a common project among the different actors.

An interesting case displayed during the conference is the collaboration between the company Ikea and the organism UNHCR which offers a successful example of multi-actor collaboration. In this case, Ikea has provided resources and capacity for innovation instead of funds, to develop a new prototype of shelter, more adapted to the needs of refugees – who can live several years in the same camp-. This alliance has enabled a quality leap for UNHCR’s reception infrastructures. Ikea, on the other hand, positions itself as a company contributing to development, with its positive effects in terms of image as well as employees and clients’ loyalty.

This example shows us that both actors (business and NGO) can take benefit of a well-structured collaboration, and in this framework it can be helpful to know the modalities of cooperation presented by Ignasi Carreras, from the Social Innovation Institute of ESADE, in a study on collaboration between business and NGO with high social impact, presented during the seminar. The four modalities identified are: 1. Join efforts and gain efficiency 2. Improve the quality of social intervention 3. Create social innovation and entrepreneurship capacity 4. Promote local and global changes.

The debate couldn’t ignore the role played by public administration in this context, and the participation of representatives from AECID (Spanish Agency for International Development Cooperation), ICEX and the IBD (Inter-American Development Bank) offered an opportunity to present their action.

Multi-actor alliance is clearly recognized as essential by a part of public administration, and several Programmes are being developed to create bridges between private sector, academic area, NGOs and institutions. The AECID is acting in this sense, with several initiatives such as the launching of a call for projects of Innovation for Development, requiring an alliance between business-university-NGO, with the aim to promote the creation of synergies among the different actors. ICEX is also active in this area, promoting through its numerous connections and offices all over the world the identification of opportunities of collaboration allowing business and NGOs to act at a local level. On the other hand, the IDB promotes this kind of collaborations thanks to its offices of Strategic Alliances with several actors.

Along the event, a special mention has been made to the need of creating replicable models that can be systemized and converted into best practices. Lastly, it is essential to create tools enabling the measurement of impact on development of the actions implemented.