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2 - The Bottom of the Pyramid (BOP) and the Private Sector: A Value Chain Research Approach
- Edited by Meine Pieter van Dijk, Jacques Trienekens
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- Book:
- Global Value Chains
- Published by:
- Amsterdam University Press
- Published online:
- 19 January 2021
- Print publication:
- 15 July 2012, pp 31-42
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Summary
Introduction
The global debate on poverty alleviation is increasingly framed in terms of enabling economic opportunities for the poor, in order to create sustainable economic growth in developing countries (World Resources Institute, 2007). Perhaps the most significant consequence of this shift is the increasing conviction that the private sector should be engaged in the challenge to create economic growth in developing countries. Economic and political developments, in particular, globalization and the increased influence of markets and private investments worldwide, have added to the belief that mobilizing existing private sector financial and intellectual resources is vital in order to achieve sustainable development, reduce poverty and reach ambitious development targets such as the Millennium Development Goals (MDGs) (Dicken, 2003; Wheeler and McKague, 2002).
This conviction, however, is not new, nor is it based on idealism. In the 1994 World Investment Report for example, multinational corporations (MNCs) are described as the main vehicle for the achievement of economic stability and prosperity in developing nations, as they stimulate growth and improve the host countries’ international competitiveness (UNCTAD, 1994). A relevant indicator of the importance of the private sector for developing countries is the fact that private sector investment in these countries has been growing for decades. In recent years, Foreign Direct Investment (FDI) by MNCs in developing countries has increased rapidly. For example, it increased from 20 billion USD in 1990 to 240 billion USD in 2000. In the years that followed FDI declined until 2003, but is currently on the rise again. In contrast, Official Development Assistance (ODA) to developing countries today totals about 55 billion USD annually, and has been declining slightly over the last decade. In the mid-1990s, FDI surpassed ODA, and today the sheer scale of foreign direct investment versus ODA has demanded that the role of MNCs in development be taken seriously (Wheeler and McKague, 2002; Dicken, 2003).
The private sector has merited further action in development for a long time. However, a catalyzing moment did not occur until the World Summit on Sustainable Development in Johannesburg in 2002, when emphasis was placed on the role of the private and public sectors as key partners in solving problems on a global scale and improving the standard of living of the world's poor.
9 - Business-community Partnerships: The Link for Sustainable Local Development?
- Edited by Meine Pieter van Dijk, Jacques Trienekens
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- Book:
- Global Value Chains
- Published by:
- Amsterdam University Press
- Published online:
- 19 January 2021
- Print publication:
- 15 July 2012, pp 201-234
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- Chapter
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Summary
Introduction
Governments in African countries are struggling on how best to focus on sustainable local economic development. How can communities benefit from investments within their area? What can the government do to promote linkages between the communities and business, and what can the communities themselves do to make effective use of local investments in their region? Partnerships are increasingly being promoted as vehicles for addressing development challenges. It is assumed that partnerships contribute to economic development when they are working towards a set of policies, programs, and activities which initiate and contribute to broader processes (Pfisterer et al., 2009).
There is need for further investigation on the outcomes and impacts of partnerships, as well as the factors contributing to their effectiveness. Although the concepts of partnership and sustainable development are linked discursively, there is little empirical evidence linking the two. It is only recently that empirical evidence for the effectiveness of partnerships in the field of development became a research focus. So far the range of assessments has given rise to contradictory assessments. Some cases provide best practices (Fiszbein and Lowden, 1999), while other studies analyze more critically the effectiveness of partnerships (Visseren-Hamakers et al., 2007). The understanding on how partnerships function and under what conditions needs to be enhanced.
Sustainable local development (SLD) is the central focus of this research. Local economic development is “a process in which partnerships between local governments, community and civic groups and the private sector are established to manage existing resources to create jobs and stimulate the economy of a well defined area” (Helmsing, 2003). It emphasizes local control, using the potentials of human, institutional, physical and natural resources (Rylance, 2008). Sustainability includes the concepts of intra- and intergenerational equity and quality of life (Warhurst, 2005). Sustainable development is development that meets the needs of the present while having the intent of allowing future generations to meet their needs as well (WCED, 1987). Aspects such as equitable access to quality education and health care, and the contribution of the partnership to environmental sustainability must be taken into account.
This study will assess community-business nature-based tourism partnerships in northern Tanzania.