Benefits

The Global Clearinghouse FfD Tools are designed to mobilize the enormous resources of the private sector for investment in developing countries, thereby creating jobs and reducing poverty. The Tools are also cost-effective means in which the public and private sectors can collaborate to overcome impediments and create an improved business-enabling environment.

Working together, the three FfD Tools provide the following benefits:



Overall Benefits & Benefits for the General Public
  • Promote an open, transparent decision-making process, thereby enhancing transparency, accountability and governance
  • Leverage scarce public sector resources and increase access to private sector expertise and resources to overcome impediments and implement development plans, with better results in investment, economic growth, and job creation
  • Encourage direct public-private sector collaboration and consultation on issues and solutions, thereby enhancing the business-enabling environment, job creation and poverty reduction
  • Reduce public sector costs, inefficiencies, and miscalculations in policy, thereby helping government better realize its development objectives
  • Reduce likelihood of economic and financial crisis given public sector commitment to improve business climate and governance
  • Facilitate access to critical information resources, thereby mobilizing private sector investment to enable economic growth, infrastructure improvements, job creation and poverty reduction
  • Enable improved donor coordination and aid effectiveness by promoting an alignment between donor support and public sector objectives and plans
  • Facilitate creation of partnerships (international, domestic; public, private)

Public Sector Benefits
  • Enable the cost-effective dissemination of critical information resources, opportunities and success stories
  • Promote the efficient identification of impediments and possible remedies
  • Streamlines public sector ability to resolve private sector issues efficiently and quickly
  • Enhance government ability to openly consult with private sector on draft plans, projects, policies, laws and regulations before adoption, with greater potential for positive outcomes
  • Mobilize private sector expertise and support for needed changes in governmental and other processes
  • Improve intra-governmental coordination across government agencies, increasing overall management efficiency
  • Heighten investor confidence, through the public sector's demonstrated commitment to improved business environment and governance

Private Sector Benefits
  • Facilitate private sector coordination through the ability to disseminate opportunities, develop business alliances and form working groups to overcome specific impediments
  • Provide private sector with the ability to give direct, constructive views to public sector on issues and possible remedies, either on the record or anonymously
  • Encourage private sector to recommend possible solutions to issues, such as infrastructure or access to capital, soliciting support from governmental, multilateral and donor agencies
  • Improve access to enabling information resources provided by government, development agencies, and the private sector, such as sources of capital, marketing toolkits, risk mitigation products, and statistics

Donor Benefits
  • Permit first-hand knowledge of priority issues impeding investment
  • Facilitate the reduction of redundant donor efforts by openly working with other donors to harmonize policies around specific issues and needs (Donor Mesas)
  • Enhance ability to implement the Paris Declaration of "aid effectiveness" with direct access to candid communication on issues and solutions