Herman Mulder's Blog

Tuesday, August 31, 2010

INTERNATIONAL DEVELOPMENT COOPERATION NEW STYLE: from government-to-government Aid to private sector-to-community Partnership, facilitated by governmental risk-sharing support ONLY if its development criteria are being met. We are working on a (pilot)"cookstove bond" for the purchase of efficient cookstoves and solar lanterns by some 200.000 poor households, to be repaid by affordable monthly micro-payments. The bond will be placed with (social) investors. The bond will have a government "wrap" (guarantee) that if it would not be fully repaid AND all pre-set social impact criteria have been met, the government will pay. A perfect form of complementarity of objectives and synergy of resources where they might be best used. This structure can also be used in other sectors than clean/renewable energy, such as sanitation, health, infrastructure, etc.
A governmental guarantee scheme (similar to the well-established and successful official export credit insurance/investment guarantee schemes) should offer opportunities to steer and accelerate the governmental agenda on climate (offer a carbon floorprice at, say, Euro35/ton until 2020), biodiversity, etc.
Multiple agendas by multiple stakeholders with everyone meeting his objectives: that's the challenge and opportunity: more binding&bundling across themes, sectors, societies! A new polder....?!

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