South-South Cooperation and Public-Private Partnership for Development by Bader Al Dafa Under Secretary General Executive Secretary, UNESCWA October 2007

CONTENTS 1.South South Cooperation Overview 2.SSC in the ESCWA Region: Opportunities and Challenges 3.Potential Areas of Cooperation 4.Public Private Partnerships: A.Role of Governments B.Private Sector Involvement 5.Role of ESCWA in SSC A.Operational Framework B.Key Activities

1. South South Cooperation (SSC) Overview Cooperation among developing countries, in range of fields, for the transfer of knowledge, goods, skills, technologies, and good practices; Complementary, not a substitute, to North–South Cooperation; Builds on notion that developing countries share common concerns and expertise; Mobilizes under-utilized resources (human, financial & natural) in countries of the South to meet development goals including MDGs; Broad Scope: includes cooperation between governments, public- private partnerships, and civil society organizations.

2. SSC in the ESCWA Region Well Rooted in the Region: First Regional Preferential Trade and Investment Agreement (1957); Arab Multilateral and Bilateral Development Banks/Funds have contributed over $80 Billion in development assistance in 30 yrs; Qatar established The South Fund for Development and Humanitarian Assistance and pledged US $20 million; Intra-regional Trade reached $92 billion (11.4% total), Investment flows $5.8 billion, ODA $15 billion;

2.SSC in the ESCWA region (contd) Opportunities Significant Increase in Intra-regional trade Promotion of Regional Blocs: GAFTA, GCC, Arab Common Market Increase in inter-regional initiatives, economic cooperation and trade with Asian, African and Latin American countries. Challenges - Low Intra Arab Investments -Few Regional Preferential Trade and Investment Agreements (8 in total as compared to 39 in Latin America) -Conflict and political instability -Corruption and unfavorable business environments

3. Potential Areas for SSC Trade and Foreign Direct Investment Infrastructure (roads, bridges, public utilities) Information and Communication Technology Water Management Energy & Alternative Energy Resources Transport & Tourism Social and Economic Policy Agriculture and Rural Development

4. Public Private Partnerships: A Tool for SSC Important tool used within the SSC framework, often referred to as Triangular Cooperation, to promote development especially for the construction of infrastructure and the delivery of services. Utilizes the expertise, efficiency and funds from the private sector and the legal authority and strategic vision of the public sector. Requires: - Institutional and legislative reforms in each country; - Dynamic and innovative private sector which is able to contribute to economic development;

4A. Role of Governments National Level Regional and Global levels Appropriate economic, regulatory, institutional and legal frameworks Adoption of efficient privatization policies Encourage private sector to be involved in South-South economic cooperation Strengthening the relationship in areas of trade and market access among South-South Establishment of networking in areas such as chambers of commerce, exhibitions, etc Facilitation of transportation, telecommunication Cooperation in international negotiations such as WTO issues. Cooperation in fighting corruption Exchange of expertise Cooperation in protection of environment. Removal of double taxation.

4B. Private Sector Involvement Undertake Private joint ventures in non- traditional sectors Promote networking among private sector organizations Promote partnerships in the areas of education, science and technology Strengthen business-to-business (B2B) relations

5B. Key ESCWA Activities 1.Trade: Enhance inter-regional trade Raise awareness on trade issues, trends, & best practices Prepare member countries on trade negotiation issues Assist in the Integration of capital markets 2.Foreign Direct Investment: Promote policies to attract FDI and mobilize domestic resources Implement FDI database project in ESCWA member countries. 3.Tourism: Promote cooperation in south south projects

4.Information and Communication Technology: Partnership initiative on Broadband for Development and Arabic domain. 5.Water and Energy: Support the Arab Integrated Water Resources Management Network Launch of Arab Water Utility Association and establishment of Arab Water Council Electrical Grid Interconnection 6.Transport: Development of the Integrated Transport System-ITSAM Maritime Transport Cooperation