Peace Through Commerce: Partnerships as a New Paradigm __________________________________________...

Peace Through Commerce:Partnerships as a New Paradigm

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Producing Generic Medicines in Afghanistan:Opportunities and Challenges

of a Multistakeholder Partnership_________________________________________

Brigitte H. Scherrer - Project Manager

University of Notre Dame, Indiana, USANovember 12-14, 2006

THE POSITIVE POTENTIAL OF THE PRIVATE SECTOR

2“The Positive Potential of the Private Sector”

What we do

A) Private sector development in post-conflict and developing regions drawing on private sector support and the facilitating abilities of International Organizations

B) Conceive, develop and coordinate Public-Private or Private-Private Partnerships

C) Training programs and seminars for IO’s and NGO’s on how to work with the private sector

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Outline

1. Post-Conflict Reconstruction: Importance of Private Sector Development and engagement

a) The Civil Society Sector‘s limited capacity and the role for business in post-conflict reconstruction- Three roles of corporate economic peacebuilding: commercial, semicommercial and noncommercial

b) Three examples of successfully established businesses in Afghanistan since 2002/03:- Telecommunications: Roshan- Beverage: Coca-Cola Company- Financial services: Afghanistan International Bank (AIB)

2. The Partnering Process in theory: General principles - Rationale for cooperation - Different phases in the partnering process - Opportunities and Challenges

3. The Partnering Process in practice: Afghan Generic Medicines - a Multistakeholder Partnership

- The look ahead in 2002: Enthusiasm and dynamism- Overview 2002-06- The look behind in 2006: Open challenges and next steps

4. Evaluation and Lessons Learned - Assess the different partnering phases in practice - 6 critical considerations: nature of the partnership, presence on the ground, potential and limits of CSR-activities, time frames, financial/budgetary considerations, hostile context) - Lessons learned

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Why Partnerships?

Only with comprehensive and widespread cross-sector

collaboration can we ensure that sustainable development

initiatives are imaginative, coherent and integrated enough to

tackle the most intractable problems.

The „core business“ of each sector – Public, Private and

Civil Society - leads to quite different Priorities, Values and

Attributes.

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Why Partnerships?

By working together, partnerships can provide:

- Innovative approaches- Access to more resources- Dynamic new networks- Greater understanding – more integrated and stable society

Partnering is a mechanism for sustainable social,economic, and/or environmental development – it is not an end in itself!

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Different phases in the Partnering ProcessDifferent phases in the Partnering Process

1. Identify: project opportunities and potential project partners

2. Agree: on goals, objectives, expected outcomes and core principles

3. Plan: programme activities and responsibilities of each partner

4. Mobilise: cash and non-cash resources

5. Manage: the partnership / project

6. Implement: the project on the ground, according to the pre-set objectives

7. Measure: the effectiveness, impact and outcomes of the project

8. Assess: the impact of the partnership

9. Review: the partnership and allow for partners to leave and new ones to join

10. Terminate: build sustainability or agree on appropriate conclusion

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Afghan Generic Medicines Project

"The BHF believes that the best way to demonstrate the benefits of private sector cooperation with humanitarian organizations is by developing actual, sustainable

projects on the ground."

From Theory to PracticeFrom Theory to Practice

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Afghan Generic MedicinesAfghan Generic Medicines

A Project History on PPP: 2002-2006

The Project Partners:

The Business Humanitarian Forum (BHF): initiator, 2002

German Investment and Development Corporation (DEG): 2005

DHL and Deutsche Post World Net (DPWN): 2004

European Generic Medicines Association (EGA): 2002

The United Nations Development Programme (UNDP), Afghanistan: 2002

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A Project History: 2002-2006

2002

- BHF organizes a Contact Meeting on Post-Conflict Reconstruction in Afghanistan

- The EGA joins the BHF within its CSR-programme „Access to Medicines“

2003

- Local partner/entrepeneur is identified by the BHF and UNDP Afghanistan

- MoU is signed between the BHF, the Afghan Partner, EGA and UNDP

- First hurdle – property rights/land ownership: Challenge to locate and purchase the land

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2004

- Groundbreaking ceremony: construction start

- DHL/Deutsche Post World Net (DPWN) joins the project within its CSR-activity

- „Baz International Pharmaceutical Company Ltd.“ (BIPC) is registered with the „Afghanistan Investment Support Agency“ (AISA)

2005

- The German Investment- and Development Corporation (DEG) concludes a 2-years PPP-Project with the partners

- Production machinery arrives at Kabul airport

- BHF: Continuing discussions with the Afghan Ministry of Public Health, WHO, and other relevant actors

- BHF conducts a market study on the pharmaceutical sector in Afghanistan

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2002 and Beyond

Site of the Generic medicines plant near Kabul in 2002 (left) and built factory in 2006 (right)


Ground-breaking ceremony, June 2004 Dr. Karim Baz, BIPC owner, lays the ceremonial foundation stone.

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2006

- Construction of the factory is finalised

- Generators are being installed: no/very limited electricity available

- Negotiations with various potential co-investors

- BHF assists local partner in identifying a general manager and staff for the factory

- BHF assists in developing a marketing & sales strategy

Next step

- Production start and training of the Afghan technicians foreseen for the beginning of 2007

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Generic medicines factory under construction, Oct 2004

Interior of the factory, June 2005

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Project Outputs and Sustainability


Job creation: employment for approx. 100 Afghans

Production of 13 „essential medicines“ (identified by WHO)

The factory will house a quality control testing laboratory

The project will be monitored and evaluated by the BHF and the EGA over the next 2 years.

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Evaluation / Lessons learnedEvaluation / Lessons learned

Make it a „business case“, instead of a purephilanthropic activity – 6 critical considerations:

1. Clear definition of the nature, objective and goals of the Partnership

2. Presence on the ground3. Potential and limits of CSR-activities4. Time horizon: importance of long-term commitments5. Financial / budgetary considerations6. Hostile context

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Evaluation / Lessons learnedEvaluation / Lessons learned

Challenges in a post-conflict setting –

6 critical considerations:

1. Dealing with whom?

2. Managing security arrangements

3. Tackling corruption

4. Rebuilding trust

5. Creating cross-sector dialogue and partnerships

6. Ensuring accountability

17“The Positive Potential of the Private Sector”

For further information, please contact

Brigitte H. Scherrer

E-Mail: [email protected]

Phone: +41-78 77 88 255

or consult our Website:

www.bhforum.org

Thank you for your attention.

http://www.bhforum.org/

Peace Through Commerce: Partnerships as a New Paradigm __________________________________________...

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