Development

Partnership antidote to national growth
Times of Zambia April 2008
By DOREEN NAWA

PARTNERSHIPS have been common features in all societies throughout human existence. Unless one chooses to live the life of a hermit, partnerships are inevitable, be it in political, economic, technological,social or cultural arenas.
Zambia will in July this year host the Smart Partnership International Dialogue, an initiative aimed at creating a stage for constructive discussions between governments, the private sector and other stakeholders in the quest to overcome poverty in Africa and other developing countries.
Last year, President Levy Mwanawasa announced in a vote of thanks at the official closing of the Eighth Langkawi International Dialogue (LID 2007) that Zambia would from July 28 to 31 host the Dialogue conference to be held at the Mulungushi Village in Lusaka under the theme ‘Towards the Smarter Globe’.
During the LID 2007, Dr Mwanawasa noted that events such as LID forum enabled governments and other stakeholders to create necessary contacts for the development of the continent.
He urged his counterparts, particularly those from Asia, to encourage industrialists and other investors to take advantage of the next Smart Partnership Dialogue to explore investment potential in Zambia.
“May I take advantage of this opportunity to request my fellow leaders, especially from Asia, to bring as many of their captains of industry as possible for the next Dialogue in Lusaka and see the vast investment potential,” said Dr Mwanawasa in his closing remarks.
He told the delegates that Zambia offered vast investment opportunities for foreign businesses in areas of mining, tourism, manufacturing and other sectors of the economy.
Dr Mwanawasa hoped that Zambia could be a haven of investment considering that the LID Forum emphasised the need to promote networking, hence the need to ensure that Smart Partnership principles extended beyond government officials to include the ordinary people in wealth creation.
The president also challenged the private sector to seriously consider investing in Africa as the continent was poised to become the next destination, after China and India, where ‘big money’ could be made.
There is an international drive by the Commonwealth Partnership for Technology Management and the Malaysia Industry-Government Group for High Technology to promote the “Smart Partnership” philosophy as the management practice of the future.
In that regard, the smart partnership is a partnership between governments and the private sector; a partnership within government, a partnership between private sector entities, or similar partnerships between countries, which are designed to create synergy and result in a “win-win” situation.
The Malaysian concept of Smart Partnership refers to the maximising and balancing of benefits for both parties and for all, regardless of the level of contribution towards the partnership.
This concept was introduced in 1995 during the first LID held in Malaysia and is based on the idea of “win-win” and “prosper-thy-neighbor” policy guided by the universal values of trust, respect, understanding, good faith and fair play.
The “win-win” approach seeks to build a solid foundation for pursuing mutual peace and prosperity based on common interests and shared values; emphasising on economic, social and cultural cooperation.
The approach recognises national interests and the reality that these interests do differ and sometimes even collide. Therefore, it seeks to find compatibility in seemingly conflicting interests.
It does not seek to resolve differences or advance national goals through the exercise of power or the use of force or coercion.
It seeks to resolve differences through dialogue and peaceful negotiations and de-emphasises threats or power-based resolutions.
Smart Partnership also means that member states should seek peace, prosperity and harmony not only for themselves but also in their relations with other nations and regions of the world.
Countries should seek to build their economies and prosper their people through maintaining the strongest of trade, investments and financial links with other nations and regions of the world.
It is all about creating social and economic capital and not military powerhouse.
Partnerships are essential to exploiting economic opportunities effectively in today’s changing environment.
At the same time, they are an important tool that can be used to make private sector-led “pro-poor growth,”which is inclusive and, therefore, sustainable.
The public sector is the engine of policy change while the private sector is the engine of economic growth and together renew economic growth in the region.
Recession has bottomed out, output is expanding, foreign reserves are up, and exchange rates are stable.
These good signs, if backed by consistently sound development and economic management, are likely to lead to a lasting recovery and fast growth.
Private Sector Development Association chairperson Yusuf Dodia says Zambia cannot achieve the required development alone hence the need for the country to partner with other developing nations.
Mr Dodia notes that Zambia may have the resources but capital is needed to finance the traditionally large and growing infrastructure needs in most sectors.
He further states that in the quest to expand the economy and allow Zambia to develop socially and economically in sectors like mining and energy, the country needs help.
“For Zambia to develop and expand the economy, and be able to provide infrastructure at the desired rate for development purposes, it needs a stronger partnership with other countries on the continent and the region,” he says.
Mr Dodia further says that the development and continuing refining of a shared vision of the work to be accomplished is key to a successful partnership.
Besides Malaysia, other developing countries also have their own examples of how smart partnerships contribute to nation-building and national development.
For instance, Zambia has adopted the Public/Private Partnership concept aimed at attracting investment inflows to key economic areas like tourism, mining, agriculture and energy, thereby achieving sustainable development.
With the focus on economic development and the attainment of the Millennium Development Goals (MDGs), Mr Dodia says partnerships are vital to a country like Zambia whose financial backbone is not strong.
In the wake of the lack of technical know-how, capital is also required to support corporate and financial restructuring, privatisation, and new markets that are opening up in earlier protected sectors.
Sustainable development has been defined as development that is likely to achieve a lasting satisfaction of human needs and improvement of human life.
In practical terms, this requires sustainable, private sector-led economic growth.
However, what is important is the combination of private sector resources, drive and entrepreneurial talent on one hand and the provision of a policy, legal, and regulatory environment emphasising fairness, social cohesion and transparency.
Partnership is broad and blends both the productive and social cohesion aspects of sustainable development.
It encompasses both the role of the government in establishing an enabling environment and that of the public and private sectors as active partners in the provision of economic services.
This combination generates growth that is inclusive and pro-poor. Partnerships, as tools to achieve such a meeting of public and private interests, can be an important instrument for pro-poor economic growth, and have a lasting impact on poverty reduction and raising living standards.
For Smart Partnerships to be successful, it is also essential for the partners to have a clear understanding of each other’s strengths and limitations.
It helps the partners to develop a more realistic expectation of each other’s potentials and contributions as well as minimising the possibility of unreasonable demands.
Furthermore, by taking into consideration the relative strengths and weaknesses of the partners, special programmes can be developed to speed up the development process and reduce the gaps between them.
The advantage of partnerships is that they allow a nation or society to attain benefits way beyond what could be achieved as individuals.
It is in such an environment that the best business opportunities are to be found.