The 21st Century has seen extraordinary progress in information communication technologies (ICTs). Yet these advances have left out the majority of the people in developing nations. Poor people in particular, continue to lack access to technology and are unable to profit from its benefits. By themselves, neither the private or public sector of developing countries, nor donor agencies seem capable of extending ICTs to those still unaffected by technological advances. To overcome constraints, public-private partnerships (PPPs) appear to be a more appropriate model for delivering these services.

Under the DFID funding programme ‘Knowledge and Research in Engineering Sectors’ the Commonwealth Policy Studies Unit (CPSU) conducted a study to identify the factors shaping successful pro-poor partnerships in the ICT sector. The researchers drew information form a web-based survey of ICT-focused partnerships and from four area case studies in Bangladesh and Tanzania.

ICTs have the potential to empower poor people in a number of ways through increasing access to and facilitating information flows. In economic terms ICTs can generate direct income and generally lead to higher productivity by reducing transaction costs for communication services. However, ICTs require significant investment in appropriate infrastructure as well as the provision of affordable services and a certain amount of training. As a result, the necessary investment exceeds the capacity of most organisations with poverty alleviation agendas. Market-driven strategies, on the other hand, tend to focus on the most profitable areas and exclude the poor.

Partnerships between different organisations provide a viable alternative. Combining their specific strengths and resources they are more likely to extend access to the poor. In recent years, the number of partnerships in the ICT sector has increased significantly. This trend is driven by corporate and public sector and civil society initiatives. Out of 28 projects surveyed in more than 20 countries, partnerships between private companies (local and multinational), civil service organisations (CSOs), donor agencies and national public sector organisations were identified. Partnerships have also grown more diverse. Civil society organisations represented 48 per cent of organisations making up the PPPs.

Nevertheless, partnership building and maintenance is often complex. Management remains a challenge due to conflicting interests and unclear understanding of objectives and responsibilities. The researchers illustrate the following policy issues:

• Many partnerships stress commercial incentives and do not take sufficient account of public or civil society goals focusing on poverty reduction.
• The majority of ICT partnerships with a poverty alleviation agenda have not succeeded in delivering access to the extremely poor.
• For ensuring effectiveness, which organisations make up a partnership is less important than a clear understanding of individual partners’ roles and responsibilities.
• Restrictive government policies inhibit the growth of partnerships in the ICT sector.

These findings highlight various factors affecting the development of ICT partnerships. The researchers identify several implications with regard to the internal structure of partnerships, their impact on target groups and the overall regulatory environment in which partnerships function.

• Organisations that have been successful in working with the extremely poor should play an essential role in partnerships to reach deeper into the ranks of the poor.
• Within partnerships objectives should be carefully determined to minimise internal conflicts. Additionally, outcomes need to be monitored to determine whether they benefit the poor.
• Policy makers should be alert to the potential of partnerships, well informed about their operation and help create a supportive environment that can also adequately regulate such arrangements.

The study emphasised that partnerships can provide a viable alternative to deliver ICTs to the poor. However, they are not the only solution for every situation as only under particular circumstances can they be effective.

Source(s):
'Factors Shaping Successful Pro-Poor ICT Public-Private Partnerships: Inception Phase of a Study in Commonwealth Developing Countries' by A Murray, X Duran, and Keith Yeomans 2002
For project details see infrastructure connect - Factors influencing successful PPPs in the ICT sector in developing countries Full document.

Funded by: DFID (IUDD) 8066

id21 Research Highlight: 8 October 2004

Further Information:
Xavier Duran
Commonwealth Policy Studies Unit
Institute of Commonwealth Studies
University of London
28 Russell Square
London WC1B 5DS
UK

Tel: 44(0) 207 862 8823
Fax: 44(0) 207 862 8820
Contact the contributor: x.h.duran@lse.ac.uk

Institute of Commonwealth Studies, University of London, UK

Other related links:
'E-commerce for development is over-hyped'

'Public-Private Partnerships: getting water and sanitation services to Asia’s poor'

'Women’s voices get a boost: accessing technologies for empowerment'

'Missing the connection? Using ICTs in education'

ICT and Poverty Reduction - UNDP

ICT in poverty reduction - One World articles