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Globoempresa SL - asistencia técnica More than twenty years in the design of internationalization processes

     
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Friday, September 7, 2012

Development cooperation and business (Part 1)

The International Development Cooperation is one of the main pillars of the foreign policy in developed countries and regions, often articulated through national agencies and multilateral organizations.

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The International Development Cooperation is one of the main pillars of the foreign policy in developed countries and regions, often articulated through national agencies and multilateral organizations.

In the case of Spain, we have the Spanish Agency for International Development Cooperation, AECID, and other regional agencies such as the Andalusian Agency for International Development Cooperation, AACID.

These actors, in its cooperation with emerging countries, are major bidders for works contracts and services. This makes the international development cooperation a market with enormous potential for Spanish companies and where the scope for growth is high.

Given the current economic situation and prospects of public procurement, this market seems to be one of the few options of business for Spanish companies of engineering, consulting and services with high added value. In fact, these companies are key to drag other investments, so they are called tractors sectors, which have regular suppliers to develop their projects.

One of the most common ways that governments of donor countries have used to position their companies in this market and facilitate its internationalization is the bilateral development cooperation. For example, it has been quantified that the German development cooperation can generate 140,000 jobs in the country, in addition to returning to the economy, as exports of goods and services, 1.8 euros for every euro invested.

The amount of funds that annually involves international cooperation is about 200,000 million USD. It is a mature market in which companies of surrounding countries have won bidding contracts for decades.

This work has also been very important from the point of view of the beneficiary countries. The strengthening of the productive sector and the improvement of infrastructure are considered key factors in the generation of wealth and employment, which has a high impact on reducing poverty levels in the beneficiary countries. Thus, companies have helped to increase the effectiveness of aid, which has provided the beneficiary countries with high added value services, and have enabled local companies and their human resources to acquire knowledge and methodologies that have increased their competitiveness.

Unfortunately, the Spanish cooperation policy has never promoted the role of the private sector, so it could have facilitated, through the implementation of projects, the acquisition of international references in the beneficiary countries that would enable to successfully tackle the market of international tenders. This was due primarily to a rejection of the traditional private sector and, in the case of the Andalusian cooperation; the sectors in which it operates are completely unrelated to the real needs of the local population of the beneficiary countries.