Better Together

Promoting sustainable prosperity and growth for all

PwC’s 11th International Development Conference summary report

#PwCIDC2019 2 PwC’s 11th International Development Conference summary report PwC’s 11th International Development Conference summary report 3 Foreword

We are delighted to share with you our summary of PwC’s 11th International Development Conference, held in London on 6th of March 2019. The conference attracted over 250 international development practitioners from the UK and elsewhere, from a range of professional backgrounds including public sector, academia, civil society and the private sector. Under the overall theme of “Better Together: promoting sustainable prosperity and growth for all” we examined a number of key issues for international development including: the dynamic between trade and aid, aid post- Brexit, the new skills drive, technology- driven innovation and large-scale programme management. This report summarises the key messages that emerged from our discussions on the day. We would like to extend our sincere thanks to all of the speakers, panel members and attendees for ensuring this was such an engaging and thought provoking event. We hope you enjoy our report, and we look forward to continuing an ongoing conversation with you on topics that most matter to us in international development. If you have any queries, please don’t hesitate to get in touch with us directly. Dr David Armstrong PwC UK Partner, International Development Industry Leader

4 PwC’s 11th International Development Conference summary report PwC’s 11th International Development Conference summary report 5 6 PwC’s 11th International Development Conference summary report Contents

The case for aid 8

The skills drive 10

Seizing the opportunity 12

Smartphones and smart cities 16

Billions to trillions 18

Friends or foes? 20

Technology-enabled healthcare 22

The problem with major programmes 24

Combatting modern slavery 26

Aid post-Brexit 28

Closing remarks 30

PwC’s 11th International Development Conference summary report 7 The case for aid

Essential building blocks of a credible and effective international policy

Speaker A case for investing in driving sustainable development. Since 2015, the UK has become one of development the only five donor countries (the others being Denmark, Luxembourg, Norway, “Our latest inquiry provides a Sweden) meeting the internationally pertinent reminder of the increasing agreed commitment to spend 0.7% global humanitarian challenges of Gross National Income (GNI) on Stephen Twigg that we face. There are over 20 overseas aid. This commitment was Former MP and former Chair of the million internally displaced persons applauded internationally and built trust Commons Select Committee for among the UK’s international peers. International Development and refugees in Africa, half of which are children. Globally more DFID’s track record people are displaced today than While throughout its history DFID has Host at any time in the last 70 years. By 2030, 80% of the poorest people faced scrunity, through its vision and commitment it has improved the lives in the world will live in fragile and of many of the world’s poorest people. conflict affected countries; and It has played a vital role in lifting more climate change exacerbates further than a billion people out of extreme that fragility. If we are to tackle poverty over the last 22 years and DFID these challenges and meet the is recognised as a global leader in Prof. Myles Wickstead CBE Sustainable Development Goals international development. Visiting Professor, NED Development Initiatives, Kings College (SDGs), DFID must maintain a vision Importantly, DFID is recognised as London that is rooted in poverty reduction. a world leader on aid quality and All Official Development Assistance ranks highly on lists measuring donor (ODA) spending departments should performance. Yet despite progress, conform with the primacy of poverty the number of people living in extreme reduction.” poverty globally remains stubbornly Stephen Twigg, Former MP and former Chair of high in low income countries where the Commons Select Committee for Interna- poverty, hunger, gender and income tional Development inequality, poor health, environmental degradation and many other problems The session was opened with remain enormous challenges. Aid alone a powerful case for investing in will not be able to drive progress to development and considering the meet the 17 SDG goals by 2020. essential building blocks of a credible and effective aid policy for the UK. Further, the changing political environment, impact of Brexit, attacks The participants were reminded of on the 0.7% commitment and the the journey that the Department for breakdown of cross-party consensus International Development (DFID) has on foreign aid means we are facing made since it was set up in 1997 with its more challenges. core purpose of reducing poverty and

8 PwC’s 11th International Development Conference summary report The UK’s position in a The conclusion of a recent International The IDC works with the Independent changing world Development Committee (IDC) report on Commission for Aid Impact to oversee Rather than renouncing its current aid ODA, noted that “unilateral action by the UK aid. In the IDC’s inquiries a spotlight commitments, the UK should use its UK to develop and use its own definition is shone on the programmes that global weight to press other donors to would be an own goal”. The UK’s contribute to the reduction of poverty, meet them too. The UK’s commitment reputation as a leading development including the difference which the UK’s to 0.7% contributes significantly to the actor stems from its expertise and international development work makes UK’s global influence and ’soft power’. professionalism, its commitment to around the world. multilateralism and the international DFID’s strong multilateral partnerships system and its commitment to, and In a recent inquiry, it was revealed help expand the reach of UK delivery against, the 0.7% target, Twigg that there are over 20 million internally development to mobilise significant said. All three of these assets would be displaced people, including refugees resources and expertise to tackle damaged by trying to manipulate the in Africa – half of them are children. global challenges. The UK’s multilateral shared understanding of what aid is. By 2030, 80% of the poorest people in partnerships ensure that UK aid reaches the world will live in fragile and conflict more people, saves more lives and lifts Dealing with public affected countries; and climate change more countries out of poverty. attitudes to aid will only exacerbate There is evidence, however, that this situation. For many states, development is their the public is not convinced by the If these challenges are to be tackled top priority within the United Nations arguments for maintaining the and the SDGs met, the UK must (UN). Former UK Ambassador to the commitment to 0.7%. In a recent Aid maintain a vision that is rooted in UN, Sir Mark Lyall Grant, was cited on Attitudes Tracker (AAT) survey, 34% of poverty reduction. All ODA spending how crucial the foreign aid commitment respondents agreed that government departments should conform with the is for the UK to demonstrate “evidence should give aid “to help people in poor primacy of poverty reduction, with DFID of real intent to be a global power”. countries most in need”, with a further overseeing all ODA spending. Reducing the UK’s commitment to 24% agreeing that government should To row back on its commitments to international development would give aid “based on our own interests 0.7% and mutilateralism, DFID would therefore diminish the UK’s international and others’ needs equally.’’ Only 11% risk undoing years of experience and status, at a time when it is going agreed that government should give expertise. It would also harm the through its biggest post-war foreign aid “to promote the UK’s business and UK’s global standing and let down policy challenge. strategic interests.” UK taxpayers who rightly expect aid The 0.7% commitment helps to create At a time when the UK needs all the spending to be determined by evidence the conditions necessary for the private more to satisfy the public that its of effectiveness. But most importantly, sector to invest the kind of sums expenditure represents good value for it would let down the world’s poorest needed to achieve the SDGs. Billions money and is effective, decisions about people who we have pledged not to in investments from donor countries how to spend aid through multilaterals, leave behind. are necessary to pull in the trillions that DFID or other government departments, are required to meet the huge global should be based on evidence of their challenges that we face. relative effectiveness.

With the aid budget divided among This requires a continued commitment various government departments – with to transparency, openness to scrutiny DFID spending approximately 70% and a responsiveness to criticism of the total – it is important to uphold across all parts of government that the highest standards when it comes spend ODA. It is absolutely right that to ODA. Failure to pay attention to the UK government should be held this might create risks in three areas: accountable for its aid spending. As coherence, transparency and the focus in all areas of public expenditure, the on poverty reduction. British people are right to expect value for money. Keeping DFID as an independent department is key to ensuring that all More myth-busting is required and work UK aid is poverty-focused, effective and needs to be done to articulate the value transparent. The attempt to change the of the money that’s spent on aid. For current definition of ODA as determined every £100 made in the UK, only 70p by the Organisation for Economic Co- goes towards foreign aid. Yet according operation and Development (OECD) to opinion polls, the public often think Development Assistance Committee that the figure is closer to £7 or even which specifically excludes any £10, which shows that there’s a long assistance to high-income countries way to go in shifting public perception was challenged. closer to reality.

PwC’s 11th International Development Conference summary report 9 The skills drive

The role of education, government, and employers in driving prosperity

Panelists In PwC’s annual CEO Survey, skills are due to the lack of alignment between regularly identified as a crucial theme the curriculum and the changing underpinning growth, and the survey marketplace. She highlighted the explores how technology can help plug importance of investing in training skills gaps in the current ecosystem. programmes that are proven to be The skills revolution is also a top priority successful, posing the question: Rachel Glennerster annually at the World Economic Forum if traditional skills like record keeping, Chief Economist, Department for in Davos. These themes were also stock management, and marketing no International Development central to our international development longer hold relevance then what sort of conference, at which our panellists skills do people need to be trained up discussed the renewed drive for on today? Glennester believed that it is upskilling and the roles of education about basic but versatile skills such as providers, government and employers literacy and numeracy, life-skills in addressing the key challenges (e.g. negotiating) and mindset skills Lucy Lake, OBE associated with it. (e.g. entrepreneurship). Chief Executive, Campaign for Female Education (CAMFED) Skills and productivity Women’s empowerment Rachel Glennerster, Chief Economist and growth at the Department for International Lucy Lake, OBE, Chief Executive, Development (DFID), opened the Campaign for Female Education discussion by referring to work (CAMFED), drew our attention to how productivity and its low rates among the the G7 has recently prioritised women’s Julie Wallace poor. It is clear from various studies, she empowerment for economic growth. Global Head, Community Engagement, said, that improving skills can increase 33,000 young people join the job market Standard Chartered productivity, in turn helping to boost in Africa every 24 hours, Lake pointed earnings. There is a linkage between the out, but the supply of jobs does not low adoption of skills programmes and satisfy demand. We also need to ask high dropout rates. The effectiveness ourselves about the barriers to women of skills programmes can be hard to getting into jobs, Glennester said. The assess but as they are implemented, barriers are derived from a scarcity Asyia Kazmi there is a definite correlation with more of opportunities, early marriage and skilled people getting into work. As a isolation caused by living in rural areas. Global Education Policy Lead, Bill and Melinda Gates Foundation result, there can be a displacement of existing employed populations by new, Glennester argued that providing Chair and perhaps higher-skilled individuals. education by itself will not solve the challenge. Systemic gaps such as Glennester also discussed how financial resources must be bridged. traditional training programmes are often not as effective as they could be

Zlatina Loudjeva PwC UK Director, International Development Education and Infrastructure

10 PwC’s 11th International Development Conference summary report For example, CAMFED provides loans Panel discussion topics reducing unwanted pregnancies, sexual with zero financial interest, but asks for As the panel opened up for questions, assault and violence. It is clear that after interest to be repaid in social capital. the discussion focused on the poverty, low educational self esteem This includes working with climate leapfrogging effect of Information and is the main reason for school dropout, smart agriculture and going into local Communications Technology (ICT). the panel heard. There was a need to schools to teach entrepreneurship. The panelists agreed that there is tackle how to make young women feel Such schemes can result in a significant evidence that ICT can play a empowered when they take part 98% loan repayment rate. key role in skills development although, in school. in isolation, it often isn’t effective. Julie Wallace, Global Head of The final topic focused on effective Personalised learning and mobile skills Community Engagement at Standard cost management associated with skills programmes produce better results, Chartered, spoke about the bank’s programmes. It was clear from the start and once individuals are exposed to education programme, called Goal, of the discussion that effective skills these technologies they can transfer a global initiative to tackle inequality programmes often do not correlate their skills to future employment, and promote economic inclusion. with low costs. There was a need to the panel said. Goal aims to equip girls with the recognise skills programmes as a confidence, knowledge and skills they Building young girls’ confidence and long term investment. This meant that need to become economic leaders self esteem also came up. Recent years programmes needed support on an in their families and communities. have seen an uptake in the number of ongoing basis with the aim of limiting Goal is part of Standard Chartered’s initiatives helping girls with building dropouts and therefore limiting “money Futuremakers programme focused on confidence. Save the Children helps lost”. The life-cycle of education needed developing entrepreneurial mindsets, to start developing life skills training to expand beyond school and into helping disadvantaged young people at age nine by teaching kids how to lifelong learning in employment. to gain new expertise to improve their build confidence and speak up for chances of getting a job or starting themselves. The Bangladesh Rural their own business. Implemented by Advancement Committee development organisations around the world, the organisation’s life skills training programme teaches girls the critical programmes have proven effective by facts about health, communication, rights and managing their personal finances in order to help them transform not just their own lives, but those of their families and friends.

Our final panelist, Asyia Kazmi, Global Education Policy Lead at the Bill and Melinda Gates Foundation, focused on the transformative role of education, the importance of family support and sustainable resource utilisation. Kazmi underlined the points made by previous panelists about skills development, which should focus on three key areas: cognitive (foundational literacy and numeracy), social and emotional (leadership and relationships), and jobs (technological, managerial, scientific). In this context, it was important, Kazmi said, to provide both, pre-training and on-the-job training. Schooling can help to overcome economic barriers while training on the job helps address the needs of the business. There was also a need for more qualified teachers and trainers. Data collection, evaluation and monitoring plays a critical role in improving the provision of free and quality education, Kazmi said, supporting policy development and other interventions. Kazmi also pointed out the need for more diverse leadership. Currently 82% of investment decision-making lies in the hands of men.

PwC’s 11th International Development Conference summary report 11 Seizing the opportunity

Trade, aid and international development in 2019 and beyond

Speaker Trade and development are increasingly have an important role in promoting the interlocked as they have the ability to international trade system, championing complement each other and draw out free trade and securing prosperity for mutual benefits for partner states. To the UK and globally. seize the opportunity that this trend World Bank research confirms that as brings, UK government departments global trade increased over the last are collaborating, innovating and generation, it has taken over a billion John Mahon trying new ways of working to achieve people out of extreme poverty. Free Director General for Exports, a common goal of inclusive growth Department for International Trade flows of goods and services provide and prosperity for the UK and its structural support to economies and international partners. These themes Panelists drive growth. The DIT believes that were explored further by our key stimulating trade with developing speaker John Mahon, Director General countries has the potential to effectively for Exports at the Department for combat structural poverty, Mahon said. International Trade (DIT) and in a panel discussion with Graham Zebedee, While there are many challenges ahead, Director for Continuity, Wider Europe there are also great opportunities. Graham Zebedee Negotiations and Development in the Developing countries are growing faster Director, Trade Policy Group, UK, DIT; Joelle Jenny, UK Joint Funds than developed countries. Total trade Lead of Joint DIT/DFID Unit Unit for the Conflict, Stability and in goods and services (exports plus Security Fund; and Georgina Wright, imports) between the UK and ODA Senior Researcher on the Brexit team, eligible countries was £210.8bn in the Institute for Governement. four quarters to the end of Q2 2019. Opening speech: John Mahon, The DIT therefore has an opportunity Joelle Jenny Director General for Exports, DIT. to work in partnership with the FCO, DFID, non-governmental organisations Director, UK Joint Funds Unit The DIT focuses on advancing the and British businesses to be part of UK’s trade and investment agenda. the growth solution in developing The UK reached £675.5 billion worth of countries. We need to work together to exports in the year to end of October build inclusive growth using the range 2019, 47% of which were services. At of expertise the government and British the end of 2018, the stock of inward business can offer together, Mahon investment into the UK was £1.5 trillion. said. Georgina Wright This benefits British jobs, infrastructure, Senior Researcher, Institute of Government development and research, Mahon In 2018, during a UK delegation to Chair said. Considering that the UK is African countries (South Africa, Nigeria looking to leave the EU, the DIT has an and Kenya) the then Prime Minister set important role in developing the UK’s out the government’s ambition to use new trade policy which is a major driver Official Development Assistance (ODA) of global growth and prosperity. The for prosperity priorities in a speech DIT, as well as broader government, in Cape Town. This ultimately would Julie Leonard PwC UK Director, International Development Trade and Investment

12 PwC’s 11th International Development Conference summary report Panel presentations and discussion It was noted that trade arrangements The discussion focused on how can be used as an opportunity to government, businesses and other drive higher standards in developing stakeholders could deliver on countries. Examples of this included development and growth ambitions. environmental and labour rights Brexit was front of mind. Graham standards. However, Zebedee said Zebedee, Lead of Joint DIT/ DFID Unit, trade policy can be sometimes oversold who focuses on trade with developing as the answer to achieving significant countries as part of a joint DFID and structural changes in developing DIT unit, opened up by outlining the countries, and that it simply can’t “bear two main objectives of his team: one is that burden of expectation”. to make the process of leaving the EU maintain the UK’s strong commitment Zebedee then examined what aspects as smooth as possible and the other to poverty reduction while at the same of trade policy the UK would have to is to start looking to the future. As the time delivering national security, and consider as it leaves the EU to foster UK leaves the EU, the aim is to use the stimulating investment in jobs and trade with developing countries. same trade guidance that applies in inclusive growth, including that coming That included adoption of unilateral the EU in developing countries so that from activities by British companies. schemes, rules of origin, tariff where a business is operating across To deliver on this commitment, the DIT escalation, general administration, borders, it will not know the difference. is working alongside DFID and the FCO greater cross-government integration This was the “gold standard” of a to deliver a strategic shift in Africa on and alignment, gender equality, and smooth Brexit. It was worth noting that both prosperity and trade. programme delivery. the UK had inherited arrangements Looking at the scale of UK activity in from the EU. That meant that we According to the OECD, the UK spent Africa, the DIT currently spends £4-5 have trade agreements with countries £1.5 billion on Aid for Trade in 2017 and million on helping UK businesses trade across Africa, Caribbean and Asia, and it is an area that needed to be become with Africa, while DFID will spend the UK is a member of EU spending more coherent, Zebedee said. To over £4 billion. Both departments programmes focusing on trade stimulate engagement with developing complement each other and will facilitation with developing countries. countries and UK business, preference contribute to the prosperity of the The UK is also part of EU unilateral schemes needed to be communicated country and benefit the UK economy, schemes, by which the EU gives more effectively, differentiating the value Mahon said. preferential tariffs to poorer countries. proposition it offers. The UK’s objectives within that were to The British Prime Minister’s ambition ensure that these countries have access in that speech was for the UK to be the to the UK and that structural barriers to largest G7 investor in Africa by 2022. trade are removed. The UK’s Prosperity Fund, which is worth £1.2 billion, supports developing “There is no point in having countries achieve long term prosperity generous tariff agreements that by leveraging UK expertise, whether are met with excessive forms, through health, regulation, business procedures and lack of capacity.” environment or infrastructure expertise. Mahon cited the Oyster card travel Graham Zebedee, Lead of Joint ticket system in London as a potential DIT/ DFID Unit model for some of the more congested cities in the developing countries. The DIT also has a close partnership with UK Export Finance (UKEF), which helps finance exports and operates in many developing countries. It also develops new ways to deliver export finance to businesses. There was an opportunity for the DIT to work with international businesses to unpack the support even further, Mahon said. The DIT has encouraged UK businesses to engage with developing countries to build commercial partnerships, rather than relying on aid. Mahon said the DIT’s ambition was to help UK business engage with the whole world to benefit from the continuous exchange of ideas, people, human capital and financial capital.

PwC’s 11th International Development Conference summary report 13 The UK’s Prosperity Fund and its purpose Following Zebedee’s presentation, attendees heard from Joelle Jenny, Director of the UK’s Joint Funds Unit, National Security Secretariat, overlooking the Prosperity Fund, who explored how different ways of doing aid can help the poorest and help achieve global goals. This is specifically important as we consider the correlation between the slow down in aggregate global growth and the slow down in reducing poverty around the world. This forces the question of how can we innovate development aid to tackle some of the world’s biggest issues. Jenny affirmed that this is the rationale underpinning the Prosperity Fund.

The UK Prosperity Fund is a £1.2bn cross government fund which aims to support inclusive economic growth needed to reduce poverty in partner countries. It brings together the technical expertise from a number of government departments and core British industries to jointly design programmes to support growth within ODA eligible middle income countries. These countries are home to nearly 60% of the world’s poor (those living on less than US $2 a day). The Fund deliberately works with middle income countries (including China, India and Brazil) to reduce the levels of inequality and secondly to help remove barriers to trade.

The Prosperity Fund takes a different approach to aid. With its primary aim to alleviate poverty it also increasingly seeks partnership around trade. The objective of the Fund, according to Jenny, is to draw on UK expertise to promote competitive markets, trade, the rules based international system, and to remove barriers to growth in key sectors including healthcare, skills, infrastructure and financial services. This is especially pertinent in middle- income countries such as India and China, where they expect mutual beneficial partnerships, where they can access private sector expertise.

According to the IMF, 90% of global GDP growth is forecast to come from outside the EU over the next five years.

14 PwC’s 11th International Development Conference summary report PwC’s 11th International Development Conference summary report 15 Smartphones and smart cities

How technology is reshaping urban and rural livelihoods in India

Panelists “India is leading the most significant The Indian government is urban transformation of the 21st undertaking a range of initiatives century” and in the process is to transform cities, build centres “paving a new path to urban of growth, and achieve management through the power of development outcomes. digital technologies.” “In Delhi we see an air quality index Anna French, Deputy Head, DFID India which is hazardous, with some Krishna Joshi local rivers pretty much dead. India’s innovative rise Chair | PwC UK Consultant, Strategy& The solution to these challenges India is urbanising faster than ever lie in a world transformed by before, with estimates suggesting that digital technology, which India is by 2030, the urban population will grow to 600 million people. This has embracing.” placed not only a significant amount of Kiran Khatri, The Second Secretary at the Indi- pressure on cities to expand provision an High Commission in the UK of transport, water, and sanitation, but It is currently pursuing a range of Ranen Banerjee also presents huge opportunities. initiatives, many in partnership with PwC India Partner, Smart Cities Lead In recent years, India has led the way in the UK government, to enable its taking advantage of digital technologies technological transformation. to build the necessary capacity to Anna French, Deputy Head of DFID, support its rising urban population. India, spoke about the UK government’s In particular, the Indian Smart Cities perspective on the diversity and Mission was launched by the Prime complexity of challenges across the Minister of India in 2016 and targets 100 4,000 cities and towns in India. French Anna French Indian cities, with initiatives seeking to argued that enacting change within the Deputy Head, DFID India achieve more functional, inclusive cities complex governance structures requires that give a better standard of living to an understanding of an equally complex the urban population. underlying social fabric in cities. The Indian government, at both a national, The panel discussed how government federal and city level, is working to has supported India’s cities to become address the complexity of such projects the driving force for innovation. by engaging with different stakeholders Importantly it then covered how (e.g. academics, private sector) in their Kiran Khatri technologies can be applied to the early design. The Second Secretary at the Indian High 70% of India’s population who live in Commission in the UK rural communities, many of whom live There are also smaller, more “frugal” in poverty. The panel also discussed innovations that can have a substantial examples of smart cities initiatives and impact on people’s lives. French spoke what this means for the future of India’s about the “safety pin” app which is cities and rural communities. often used by women to inform others

16 PwC’s 11th International Development Conference summary report on their location, and Ranen Banerjee, despite significant government attempts Indian innovators to improve cities. PwC India Partner, discussed solutions to address them with technology. UK universities including Dundee, like a borer with cameras that are For instance, there are issues around Southampton, and Oxford have being deployed as social Public Private the productivity of farmers in rural been working with IIT Delhi for the Partnerships to better assess and solve communities which should be explored redevelopment of polluted rivers. Many sewer line blockages. This reduces further, and potentially overcome UK regions, such as the Sheffield City the risk to lives of sewerage cleaners through innovative adaptations of Region, are exploring how they might who would otherwise enter into the technologies. An example discussed collaborate with particular Indian cities dangerous sewers for clearing such was the use of the Internet of Things in particular mutually important sectors. blocks. devices in farmers’ sprinklers to detect moisture levels and activate sprinkling The Access India Programme is Improving livelihoods in rural according to need. This enhanced another good example of cooperation communities sophistication improves productivity, between both countries related to “Urban and rural are the two sides and helps to increase average income the smart cities space. Through this of the same coin. If you take care of levels, demonstrating the impact programme, UK companies are given support in accessing the Indian market. one side the other will automatically that innovations can have in poorer communities. With this support, many companies follow.” are coming up with innovative ideas Ranen Banerje, PwC India Partner, The use of cutting-edge technology in the areas of energy consumption Smart Cities has also supported rural communities and conservation, waste management to boost their resilience, for instance and smart buildings. Given the strong Ranen Banerjee discussed government when exposed to flooding. Technology developmental purpose, these areas attempts to use technology to address has helped in two forms, the panel are often where investment both demand and supply-side issues heard. Firstly, through immediate opportunities lie. for people dependent on agriculture warnings to people to directly save in rural communities. lives and secondly in the longer term It’s clear that cities are important as planning of infrastructure to ensure it they attract talent and innovation, drive Villages can become increasingly implements early warning systems. growth and have positive economic connected through a “spiral network” These have supported cities to build spillovers to neighbouring areas. The that can provide better access to resilience so that they can react quickly Indian smart cities initiatives have services for rural farmers who may to potential risks, and the UK and Indian made significant progress in delivering not be able to afford them individually. governments are focusing on this area better cities which support improved There are good examples of technical following the severe floods experienced livelihoods. However, this innovation interventions such as the “uberisation of in Kerala last year. should continue to be harnessed in tractors”. Such innovations demonstrate poorer, rural communities, and adapted a value transfer from innovations to meet different needs. If this is How smart cities work creates appropriate to cities which can spillover achieved, technology has the potential opportunities for UK trade to rural farmers. to change the lives of millions of people and investment across India. However, the panel also heard that There are instances of strong institutional issues remain prevalent collaboration between UK and

PwC’s 11th International Development Conference summary report 17 Billions to trillions

Towards a new approach to mobilising investment for Africa

Panelists In 2018, former Prime Minister Theresa “The [billions to trillions] target is May stated that the UK wants to be achievable in the longer term… but Africa’s number one investor from the if we genuinely have this ambition G7 by 2022, and that she wanted to to increase investment substantially, see Britain’s private sector companies we need to be pulling upon all taking the lead in investing “the billions different levers we have at our that see African economies growing by trillions”. disposal to make that happen.” Rachel Crawford Mark Dittmer-Odell, Director of Overseas Manages Emerging Markets At PwC’s Africa-focused panel, Investment in the Africa Network, Department for Village Capital representatives came together the CDC for International Trade Group which is the UK’s Development Finance Institution (DFI), and – the UK’s Regaining lost UK momentum development finance institution (DFI), While investment has grown significantly and Village Capital, a market enabler in the past two decades, momentum supporting investment intermediaries. has been lost. In order to realise the The panel concluded that the long-term goal of being the G7’s number one goal of increasing investment from Mark Dittmer-Odell investor by 2022 and beyond, the UK billions to trillions may be possible, Director of Overseas Direct government will need to pull on various Investment in the Africa but in the short term more needs to be levers in order to increase Network at the Department for done to leverage greater capital at the International Trade investment flows. right level for African Small and Medium sized Enterprises (SMEs) to help scale The UK is home to one of the biggest and mitigate risks, which in turn could financial hubs in the world with the City help the government, DFIs and the of London providing access to capital private sector work better together. markets globally. However, of the £8 trillion worth of assets managed in the The UK is one of the biggest investors City, less than one per cent finds its way in Africa with 2,000 UK businesses Pierre Van Hoeylandt into African markets. Director in the Intermediated Equity working in African markets, including Team of CDC Group plc some of the largest companies that To drive greater flows from the City, the form key roles in African economies, government has focused on helping such as BP, Diageo, and Vodafone. African companies and entrepreneur British businesses in Africa help drive ecosystems to be investment-ready. local economic prosperity through job This offers opportunities for British creation for African people, increase firms to invest in a continent with trade links and open up opportunities high economic growth rates, rapidly for British investors. developing markets and a young Jon Williams working age population. This offers Chair | PwC South Africa them the opportunity to expand their Partner, Cities and global supply chains into new future Urbanisation for Africa consumer markets. By the end of the

18 PwC’s 11th International Development Conference summary report century, 40% of the world’s population How to drive growth through growth. Intermediaries in Africa also will be in Africa (up from 17% today). a change in mindset enable foreign investors to access One of the solutions to drive growth and opportunities in Africa, by reducing However, both risk and scale mean investment is to focus greater attention their due diligence requirements. that Foreign Direct Investment (FDI) on the “missing middle”, as opposed to predominantly reaches the larger and Furthermore, investment coupled seeking out a small number of big ticket more developed economies in Africa, with affordable technical assistance investments that institutional investors raising questions about whether those to entrepreneurs and support would normally target. funds are reaching those most in need. organisations would help to drive scale The missing middle is made up of and attract more capital. One such The CDC invests $2 billion every year, SMEs, including rural cooperatives, example is CDC Plus, which provides with around two thirds invested in small manufacturing businesses, and technical assistance and grants to Africa, making it the largest investor in technology start-ups. Across African support investee companies reach areas such as trade finance and direct markets, despite extremely high levels commercial sustainability, scale and equity. As a frontier investor, CDC of unemployment, many economies are deliver greater impact. demonstrates investment opportunities, thriving thanks to entrepreneurs that and catalyses private sector investment. It is clear that the ambition of leveraging generate local economic growth. However, frontier investment comes investment from billions to trillions Yet this growth will not be scalable with various risks and challenges, is a challenging one. But where without access to capital. including rising sovereign debt levels government, private sector and support and increasing political risk, which Addressing this challenge requires organisations can work better together, can affect investment returns. a change of mind-set. There are these challenges can be overcome. a huge number of entrepreneurs Many solutions are already underway Constraints to greater investment that have potential but not all of the across the demand, supply and market in Africa right components to attract capital enablement areas. Whether through immediately. This means that if trade policy, entrepreneur support, Investment risk is one of the key or innovative financing models, reasons that annual FDI into Africa investors expect to be able to tick all the necessary boxes when looking opportunities exist for investors and remains lower than African diaspora entrepreneurs. Ultimately, these will remittances. This lack of scale also at opportunities now, they will be disappointed. However, for those willing drive sustainable growth and prosperity deters investment: the average across the continent. company size in Africa is far smaller to put in the work to get businesses to the stage where they could attract the than in developed markets. The UK has “There needs to be a change of 15,000 companies with revenues of over private equity firms or debt in the near future, then the pipeline becomes a lot mind-set… if investors expect to $50 million; Ethiopia has just 20 such be able to tick boxes when looking companies and Sierra Leone more attractive. at opportunities now, they may be has 10. Where deal flow is limited, entrepreneur disappointed… but for those willing Furthermore, most successful support organisations can also to put in the work… the pipeline large businesses in Africa need a help by identifying high potential becomes a lot more attractive.” multi-country presence to become entrepreneurs, supporting business Rachel Crawford, Emerging Markets, commercially successful businesses. development and ultimately finding the Village Capital Operating at a multi-country level right type of finance to drive business is difficult in a continent that has a lack of cross-continental transport To address the issues of risk and scale for entrepreneurs and infrastructure and six overlapping trade investors to Africa blocs. Less than a fifth of all African trade is between African countries. Continental trade agreements would open markets for business growth and investment opportunities Future business may be accelerated Entrepreneur support organisations could help businesses grow and be more ‘investment- by trade agreements that address ready’ as well as provide middle-man for investors looking for opportunities in African tariff and non-tariff barriers, opening countries up market opportunities and attracting Investors who are willing to put in business development support and due diligence would greater foreign investment. The African be met with greater investment opportunities Continental Free Trade Agreement Technical assistance support from DFI’s, Government and intermediaries would (AfCFTA), currently endorsed by 44 help businesses reach scale quickly of the 54 countries, offers significant benefits for the future growth of SMEs, and is estimated to be able to boost intra-African trade by 52% by 2022.

Expanding companies also depend on trade with the rest of the world, including the UK. Post-Brexit, the UK government has committed to ensuring trade continuity with African countries wherever possible, and has already signed a series of continuity agreements.

PwC’s 11th International Development Conference summary report 19 Friends or foes?

Harnessing the power of UK-China collaboration to drive global prosperity

Panelists The Official One Belt One lens. Through BRI, China has set out to drive prosperity domestically and Road routes internationally for mutual gain. There is an overlap between UK and “The Department for International Chinese aims and objectives. Trade are positioning London as the premier global centre for The Department for International funding and facilitating Belt and Trade (DIT) view on BRI Suwei Jiang Road projects. In addition to sector To this point the audience had an Chair | PwC UK Partner, China Business Group specific expertise, UK companies opportunity to watch a video of Richard Lead and Senior Advisor working with China on the basis Burn, British Trade Commissioner for of international best practice and China, who described the BRI as a great global standards can help BRI opportunity for the UK to win business deliver real benefits to the countries in partnership with China, given that UK companies are already well established involved.” in many countries covered by BRI, Richard Burn, British Trade Commissioner including Central Asia, Southeast Asia, Prof.George Ofori for China and South and East Africa. Expert in International Infrastructure and Project Management at the London South Bank University The Belt and Road Initiative (BRI) serves The UK was also well placed to work as a blueprint for China’s plans to with China to deepen infrastructure increase connections with the global cooperation in third markets. Burn economy. It has added fresh impetus to said that UK companies have a international cooperation and promises strong track record of supporting to create opportunities for companies economic growth and development across the globe. This session through infrastructure projects that Stephen Perry considered what this means for the Chairman of the 48 Group Club increase trade connectivity, improve UK and how international development access to public services and are also policy makers can leverage BRI to cost effective. He also said that the drive prosperity and social impact UK’s outstanding services sector, in outcomes across the globe. It offered particular the financial, professional a range of perspectives on the exciting and business services firms could add opportunities that BRI brings for the UK, unique value that few other countries China and third countries. Henry Tillman can match. Their emerging markets expertise made them well placed to Founder of Grisons Peak Investment Bank Suwei Jiang, PwC UK Partner, opened ensure that BRI projects are bankable, the session, highlighting that BRI is legal and sustainable, as well as a complex and multi-faceted issue, financially, environmentally and socially which could be considered through sustainable. multiple lenses. For the purposes of this session, the discussion would apply an international development Jinny Yan ICBC Standard Bank’s Chief China

20 PwC’s 11th International Development Conference summary report Burn said that for this reason DIT was Tillman outlined China’s BRI trading opportunity for developing countries positioning London as the premier routes that follow the ancient silk roads, to move “beyond aid”. Tillman added global centre for funding and facilitating and the six economic corridors that that Ghana is a good example of the BRI projects. In addition to sector- China has subsequently created, linking BRI having a positive impact on young specific expertise, UK companies them to trading partners across the workers through building skills in working with China on the basis of globe. He also outlined polar and pacific technology. international best practice and global routes, as well as a possible future standards could help BRI deliver real economic corridor that could be created Jiang then asked where the UK could benefits to the countries involved. through India and Nepal. He pointed to make the greatest contribution to The China Britain Business Council growing collaboration between Chinese development through leveraging estimates that the UK could gain £1.8bn President Xi Jinping and Indian Prime BRI. She asked how cooperation per year through greater participation in Minister Modi in 2018 and 2019. could be broadened beyond primary legal, technical and financial advisory infrastructure. work, but only if international best Tillman said that China’s direct Yan said that BRI is constantly evolving. practice is followed. investment in BRI countries has increased 7% annually, reaching Silk road e-commerce and the digital Burn concluded by saying that BRI was $16.7 billion in 2017. By the end of 2017, silk road are the next steps. While China a great opportunity for UK businesses Chinese companies had built 75 special is developing this initiative, the mutual to sell their goods and services into economic or industrial zones in 24 BRI benefit is key. Perry added that the full China, and to build closer relationships countries. capability of BRI will not be revealed for with Chinese companies. Engagement 40 years. with BRI would not only help China Jiang then chaired a panel discussion connect more with the world, but including Tillman, Stephen Perry, would connect the world more with Chairman of the 48 Group, Jinny Yan, the Chinese market. Export finance ICBC Standard Bank’s Chief China had already made up to £25bn worth Economist and Prof. George Ofori, a of export support available for UK BRI expert at the London South Bank companies seeking access to key University. BRI markets. Jiang posed the first question, Following Burn’s presentation, asking what social impact BRI is attendees heard from Henry Tillman, having locally. Prof. Ofori explained BRI expert and founder of Grison’s Peak that BRI provides the opportunity Investment Bank, who gave a short for learning in developing countries, overview of BRI and what the initiative increasing skills that are contributing to will mean for the global economy of sustainable development and tackling the future. unemployment. BRI provided an

PwC’s 11th International Development Conference summary report 21 Technology-enabled healthcare

Is immersive technology the answer to the globe’s surgeon shortage, even in remote and developing countries?

Panelists Education’s role in surgical and only one million students in training the healthcare outcomes shortfall is clear to see. Already hard- hitting, this statistic is only worsened by “If a man neglects education, he the consideration that only a very small walks lame to the end of his life.” subset of these students are expected to end up performing surgery. The philosopher Plato, fittingly quoted on the opening slide of this discussion The UN Sustainable Development led by Dr Zubin J Daruwalla, both an Goals 3 and 10, Good Health and orthopaedic surgeon and the head Dr Zubin J Daruwalla Wellbeing and Reduced Inequalities of PwC’s South East Asia Consulting respectively, will not be met without a Chair | Zubin is an orthopaedic Health Industries Practice. surgeon by training and leads PwC’s drastic transformation of the current South East Asia Consulting Health healthcare climate. The panel believed Daruwalla opened this session by Industries practice this could partially be addressed by touching on the idea that education is using technologies such as Virtual one of the most powerful instruments Reality (VR), Augmented Reality (AR) for reducing poverty and inequality, and Artificial Intelligence (AI), given the as it sets the foundation for sustained promise of their ability to revolutionise economic growth. The link between the way surgical training is delivered. education and economic prosperity In support of this theory, the audience is well proven, with countless studies Professor Shafi Ahmed were directed to a joint report* by confirming the correlation between the Associate Dean for medical students The Royal College of Surgeons and at the Royal London and St. two. Investment in education, on an Healthcare Education England, Bartholomew’s Hospitals individual and collective basis, leads which found surgical training would to improved economic prospects for be improved by developing surgical the person or society in which the skills earlier through focused training investment has been made. opportunities and simulations. The discussion moved to inequities in A 2017 a report from MASIE**, healthcare access, which Daruwalla a Learning, Technology and Innovation illustrated using a case study from the Dr Molly Gilmartin Centre, shows retention rates for Philippines, where although overall Doctor and NHS England learning delivered in an immersive Clinical Entrepreneur health has improved, the divide in environment are at 75%; drastically access to healthcare between socio- higher than the 5-20% retention economic groups remains substantial rates found in traditional modalities – a truth that spans every continent of learning such as reading and across the globe. Worldwide, there lectures. If quality education in this are over five billion people with no field was invested in, the returns for the access to safe or affordable surgery. population would be significant, An additional 2.2 million surgeons are the panel heard. Justin Ralph required to bridge this gap, but with Royal College of Surgeons in Ireland Chief Technology Officer in 2017

22 PwC’s 11th International Development Conference summary report Additionally, noted Daruwalla, Sharing tech learning in remote How development agencies can help technology is continuously evolving, developing countries In terms of development agencies the with prices constantly reducing as The panel considered how to ensure panel discussed what role they may newer, more efficient technologies tech learning and experience is shared play in promoting these technologies, come to market. VR may seem a luxury in more remote developing countries reaching out to remote areas and now, but the smartphone has travelled where technology is not readily emerging economies. from luxury status to being ubiquitous in available. Dr Molly Gilmartin, Doctor less than a decade. and NHS England clinical entrepreneur, One of the biggest learnings from shared her views on working in the working with development agencies, “People might argue that these UK and South Africa. She said it was Non-Governmental Organisations solutions are for developed clear that in emerging markets, it (NGOs) and governmental agencies was countries where we have good was necessary to consider the core that many of these actors operate in technology access and good infrastructure set-up to make tech- silos. The focus is often concentrated infrastructure, but actually, that’s enabled solutions scalable and more on firefighting and improving one not the case – it is in developing sustainable from a top-down level. element of a bigger challenge. countries and remote areas as well.” Understanding the local context, local To improve healthcare for different needs and pain points were vital to populations, both in conflict zones and Dr Zubin J Daruwalla, Lead South East Asia making tech work on the ground. also in poorer countries, development Health Industries Practice, PwC South East With less regulation and legislation agencies, private and public sector Asia relating to technology there is an need to collaborate more and work opportunity to test solutions in local at scale. Demonstrating how VR and AR environments and then provide the right Having small peer funding schemes could work regulatory structures around and executing on small projects will them, Gilmartin said. Following from this, Prof. Shafi Ahmed not have the same impact that smart (Digital Health Advisor and Surgeon) Dr Justin Ralph, Royal College of funding and collaboration with the conducted a full demonstration of Surgeons in Ireland Chief Technology right stakeholders can deliver, Ahmed how AR and VR platforms have been Officer (2017) suggested that developing said. They key was to empower the used to teach surgical procedures. opportunities for blended learning, end user: the population at hand or Dalawulla remarked that as a trainee combining simulation with textbook healthcare specialists. Gilmartin and doctor “you’re always at the back of learning could help make a real Ralph reiterated that developing a the room and it’s difficult to learn that difference. A surgeon simulating that grassroots approach and a sense of way.” Notably, Ahmed is one of the environment from an off-site location, agency, potentially with training around world’s most watched surgeons, having whether 100,000 miles or 1,000 miles leadership and management, can truly published a snapchat video of himself away, would help develop relevant skills. empower end users to find the tools performing surgery which garnered Simulations developed in a partnership they want to use. Health solutions over 100,000 view. model would become central to future needed to be positioned as tools that users can own and further develop. This With a gallbladder operation happening learning, Ralph said. sense of ownership was critical in both on the screen, Ahmed explained that VR sustainable and scalable technology creates an opportunity for students to Using social media platforms solutions. Patients and the end users get an unobstructed over-the-shoulder Ahmed added that the way to go needed to be at the heart of developing view of an operation that usually is to market, for most people around sustainable health solutions in order only the prerogative of one or two the world, is to have access to high to make a difference in meeting global members of each class. These virtual technology at low cost. The audience health challenges. worlds include interactive “hotspots” was reminded that smartphones lead with menus through which students to internet access and technologies like Footnotes can access advanced information Google Cloud, Google Lume, Chrome *Royal College of Surgeons, Improving that allows better understanding and and Facebook provide an enabling Surgical Training (IST) Report, October 2015 retention. As well as a full 360° view environment. For example, Ahmed of the operating room and procedure, did the first virtual operation from **MASIE Report 2017, National Training the experience is narrated with a full London using Google Cardboard, Laboratory explanation of the situation. Finally, VR $3, a smartphone and a free app. offers a personalised quiz that can be On that day, 55,000 students validated before the student finishes had an opportunity to learn. the exercise. Using social media such as Snapchat Importantly, AR and VR technology and Twitter can help advance offers functionality beyond training. knowledge, Ahmed said. People Real medical examinations can be are ready for it and we just need to delivered remotely which can provide demonstrate how to use that technology a more comprehensive assessment in in a safe and reliable way, he said. the “objective-structured examination” The capabilities of end users are more style. It can also save costs considering sophisticated and savvy than expected, the expense of getting all of the Ahmed added. necessary examiners together at any one time.

PwC’s 11th International Development Conference summary report 23 The problem with major programmes

Lessons from Pakistan on how to run them better

Panelists “Over budget, over time, over and innovative and promise transformational over again.” socio-economic impact. Examples include hosting the Olympics, the Bent Flyvbjerg, Saïd Business School, construction of major roads, buildings University of Oxford and railways, as well as the creation of On infrastructure programmes alone, new energy infrastructure like dams and global spend is somewhere around wind farms. $4.5 trillion, and the average overrun Gerard Newman on these infrastructure programmes Recent history is testament to some Chair | PwC UK Partner is 40%. Given that the success of roaring successes and the truly major programmes are so essential transformative impact that is on to the global development journey, offer. Getting a sequence of public our seeming inability to get them right infrastructure right enabled Singapore presents a significant macroeconomic to grow from a poor country in the problem. 1960s to one of the most advanced and resilient service economies, while The panel discussed why these Dubai’s rapid urbanisation has turned Dr Atif Ansar massive overruns might occur from an a patch of barren desert into a bustling Programme Director of the MSc in Major Programme Management at the Saïd academic, technological and practical metropolis in just 20 years. Business School at Oxford University perspective and put forward a case for a new approach to major programme The opportunity for huge development management which attempts to tackle exists and the conditions are ripe. the root of existing inefficiencies. This Money, energy and commodities are as approach was then explored in the affordable as they have ever been and context of the government of Punjab in labour is abundant. However, in spite Pakistan, whose track record of major of high demand for major programmes programme management is by no and their large size and frequency, Ali Ehsan means anomalous, but whose example performance is strikingly poor, with Senior Partner at OXON Global nevertheless provides useful insight into only one in 1000 delivering the benefits how much developing countries stand promised on time and to budget. For to gain by getting on top of their major developed countries, this cost of waste programmes. can perhaps be absorbed, but for developing countries where capital is Major programmes are defined as scarce, inefficiencies mean that fewer long term projects with budgets in the essential programmes can be financed. Graham Hill billions of dollars. They are often iconic, Oracle’s CEGBU Alliance Director

24 PwC’s 11th International Development Conference summary report “90% of megaprojects fail to meet cost, schedule or performance objectives. This is even worse than the dismal record for information Portfolio Project Project Project Closure Project Procurement Management Planning Execution & & Transition to Evaluation systems and technology projects.” Monitoring Operation David Pells, Managing Editor, PM World Capacity and Capability Building Journal Technology The government of the Punjab in Pakistan provides an example of To remedy these challenges, 10 short stored on common data models can the challenges of managing major and medium term projects were allow for very easy access to the right programmes in developing countries. proposed to encourage the adoption data through dashboards which can To set the scene, Pakistan is a country of leading practices, tools and skills in even be viewed on mobile devices. with a population exceeding 200 million six domains. This accountability can only serve to people, 54% of which are under the increase the rigour and transparency age of 25. A very high digital coverage The expected outcome of these with which major programmes are of 97% means that the government is projects is a 10-15% reduction managed, further reducing waste. under a lot of pressure to deliver good in waste or overruns. For the jobs and growth for its young, ambitious Government of Punjab, this equates Through the panel’s experience of and vocal population. PwC has to between $650 million and $950 working in Pakistan, the context and predicted that Pakistan will be within million that can be put towards management capability of which is the top 20 most powerful economies achieving other necessary goals. Proper reflective of so many other developing by 2030 and GDP growth over the last management of their budget and an countries, they have found that the few years has hovered between 5-6%. increased success rate of their projects solution requires a new way of thinking. Foreign investment is steadily entering would also have the effect of increasing Sponsors of major programmes the country, with China investing $46 the confidence of foreign investors, must not continue to consider billion over 15 years and Saudi Arabia further cementing best practice capability, technology and programme promising $20 billion over 2019-22. behaviours. management in isolation from one another but all three must be tackled in This is reflected in the fact that “Running major programmes is parallel. Major programmes are at the in Punjab, the largest province in more like running small companies heart of the human development story – Pakistan with a population of 110 than like managing large projects.” if we can get them right, the million, the Planning and Development world will change. Department’s budget has increased Gerard Newman, PwC UK Partner from $750 million in 2008 to $6.5 billion The success of these projects relies on in 2018. At first glance this is promising a dedicated effort to increase capacity news but the department’s portfolio of and capability in the department as live projects has increased from 1,800 well as a thoughtful and appropriate to nearly 9,400 over the same period of approach to the use of technology. time. The challenge is that this fivefold Alongside good management structures increase in work had not been matched and behaviours, this demands strong by a similar increase in capability planning, management and reporting leading to projects that were over capabilities that are commonly found budget, over time, over and over again. in the private sector but are too often lacking in the management of major The panel found that the challenges and programmes. Having information causes of the department’s problems could be grouped into five categories:

• Portfolio Management – There was no asset database or any supporting tools • Underfunded Projects – There were more projects than there was available funding • Project Planning – Planning was superficial – it excluded risk, key stakeholders and structured methods • Project Management and Monitoring – There was a lack of risk management and change controls • Lack of Technical Capabilities – There was a lack of strategic Human Resources thinking and planning.

PwC’s 11th International Development Conference summary report 25 Combatting modern slavery

How public, private and ‘ground truth’ data can work together to provide an evidence base for change

Panelists “Modern slavery is a brutal abuse, The first part of the discussion focused denying people of their dignity, on how big data can contribute to safety and freedom.” social good. In recent years a lot of data science research has been done Kevin Hyland, OBE, The Independent Anti- through merging academic advances Slavery Commission with private sector organisations for In 2017, the British Prime Minister public good. Goulding shared highlights launched a global call to action to from the work the Rights Lab (University Mark Thompson eliminate the borderless scourge of of Nottingham) has been conducting Chair | PwC UK Director, Sustainability forced labour, modern slavery and to leverage big data for good. While and Climate Change human trafficking, while doubling the historcially data related to modern UK’s aid spending on modern slavery to slavery was very hard to track due to £150 million. Just one year on, 77 states the lack of population information, today have endorsed this call to action. we have an opportunity to use data But more needs to be done to tackle the proxies as a substitute, he said. root causes of slavery in key source and transit countries. In Goulding’s view, rapid urbanisation Dr James Goulding brought opportunities to do things differently. In countries such as Director, N/LAB, University of Nottingham, This panel examined the opportunities and Data Program, Rights Lab that data analytics and Artificial Tanzania or India, urbanisation has Intelligence (AI) can provide to combat led to the emergence of new data-rich slavery, recognising that agencies and environments. Most people are now community groups need more insights phone users which means there’s a to help target scarce resources into huge pool of unused data trails. We can preventative work. Led by international use new data sources, Goulding said, to data analytics expert Dr James link them up to existing surveys. Anjali Mazumder Goulding, this highly visual session This approach to data streams can identify vulnerability areas key to Assistant Research Professor, Department introduced highlights from recent of Statistics Carnegie Mellon University, work in Dar Es Salaam through a new combating slavery. and Rutherford fellow, Alan Turing Institute interface “Insight Tiles”, which allows integration of diverse public and private As an example, women not owning data sources. The session explored phones in a community may be an how data can be “ground-truthed” by indicator of slavery in the same way community groups to add to its richness as mobility patterns may be good and reliability as an evidence base indicators of poverty. If we can get for change. some “ground truths”, we can use machine learning and AI models to find the link between the truths and our

26 PwC’s 11th International Development Conference summary report proxy data, Goulding explained. It was developed an extensive network of Mazumder recognised that there is important to keep in mind that AI is only university partners from across the no single way of solving this global useful if it is part of a socio-technical UK and launched a number of major challenge. Collaboration between system. Tools such as vulnerability partnerships with industry, public and academies, NGOs and the private maps can help build a better view of non-governmental organisations. sector was vital, but there was also how to guide resources, for example, to a need to be aware of data sharing identify best locations for safe houses. Mazumder shared highlights from her restrictions. A responsible data expertise on the use of AI in justice, ecosystem with engaged stakeholders It is clear that collaboration and security and human rights. In modern combined with learnings from the partnerships between universitites, slavery, AI has played a huge role in survivors of slavery was needed NGOs, local communicaties, identifying and solving the problem, to inform the future approach to government departments and the she said. Traditional thinking used to eradicating slavery. private sector is key to tackling focus on how to estimate the number of modern slavery. Universities and slaves. If we want to eradicate modern national institutes play a key role in slavery by 2030, she said, we would driving progress. be looking at helping 9,000 people a day. To achieve this, anti-slavery Since 2015, the Alan Turing Institute, a organisations needed to go beyond national institute for data science and simply identifying the volume of people. AI, has played an important part in Data science and AI can assist in driving advances in these technologies. identifying modern slavery patterns by With government funding from working closely with law enforcement Engineering and Physical Sciences agencies and NGOs to provide methods Research Council (EPSRC) and five and tools needed to identify and prevent founding universities, the Institute has slavery, Mazumder said.

PwC’s 11th International Development Conference summary report 27 Aid post-Brexit

Challenges and opportunities

Speaker When posed the question ‘Do you Since 2000, the number of out-of- think that international development school children of primary school efforts and cooperation with the EU will age has nearly halved and the aim to definitely be worse post-Brexit?’ the eliminate gender inequality in primary, Permanent Secretary of the Department secondary and tertiary education in for International Development, developing countries has more or Matthew Rycroft’s answer is a firm and less been achieved. Such facts are resounding ‘no’. Indeed, his conviction astounding. However, over and above Matthew Rycroft in this response is such that, far from these statistics, in Rycroft’s opinion the Permanent Secretary, being worse, he actually believes that greatest “untold story of our generation” Department for International “the UK is, and will continue to be, a is the fact that, in the last twenty years, Development development superpower post-Brexit.” the proportion of the global population According to Rycroft, Brexit will have a living in extreme poverty (less than Host negligible influence on the impact and $1.90 a day) has nearly halved. In China, effectiveness of the UK’s international where progress in this issue has been aid efforts. particularly radical, the proportion has fallen by 41.3 per cent in just 20 “Step-by-step, year-by-year, the world is years. As of 2017, the Chinese national improving. Not on every single measure figure on extreme poverty stood at every single year, but as a rule. Though just 0.7 per cent. Broadly speaking, Thomas Pedrick the world faces huge challenges, we this phenomenal progress has not just PwC UK Director, International have made tremendous progress. This lifted China out of extreme poverty, Development Governance and Public is the fact-based worldview.” but also the entire continent of Asia. Sector Reform Hans Rosling, Factfulness: Ten Reasons We’re Evidence suggests that Latin America is Wrong About The World – And Why Things Are moving in the same direction too. Such Better Than You Think realities therefore lend weight and hope to the claim that the ‘original source Rycroft’s resolute confidence in this of all human suffering is about to be matter is born of his observations in eradicated.’ three interrelated areas, the first being the way in which the world has changed To Rycroft, these figures serve to and continues to change for the better. highlight three important truths. Firstly, international development can and Consider, for example, the following does have a positive impact. Rycroft’s global statistics. Today, 80% of one- view is that “a very significant chunk” year-old children have received at of such incredible global improvement least one vaccination, meaning that is, in large part, thanks to international almost all human beings alive today development. Secondly, the eight have some access to basic healthcare. Millennium Development Goals (MDGs) Since 1990, the maternal mortality ratio agreed in 2000 by the 191 UN member has dropped by 45% and child mortality states of the time were, broadly has dropped by 50%. And this is depite speaking, effective. population growth.

28 PwC’s 11th International Development Conference summary report Though some objectives, such as Another considerable change affecting of Theresa May’s statement, made in the aim to achieve universal primary the UK is that of public opinion. South Africa in 2018, that development education, were more successful than The UK spends 0.7% of its gross would be put “at the heart” of the others, namely the goal to ensure national income every single year on UK’s international agenda. This environmental sustainability, the MDGs International Development. We are the announcement, though seemingly small, demonstrated the potential influence of only G20 country to consistently give is in fact quite important. Particularly in International Development on people this amount. As Rycroft sees it, this its early years, DFID was deliberately around the world and the success annual contribution forms an amazing separate, as it was seen to be “doing that can be achieved with effective part of our international reputation, and its own thing.” Therefore, this strategic International Development Partnerships. is considered to be quite remarkable shift to centrally position DFID in Thirdly, the agreement in 2015 of the by “even our toughest enemies” a collaborative, cross-government Sustainable Development Goals (SDGs), within the UN. Yet, within the UK, this effort is dramatic. This change has, in which seek to fulfil the unfinished same admiration is not felt, or at least turn, sparked three further shifts that ambitions and tackle the same issues expressed, in the same way. To Rycroft, the department will be making. The as the MDGs, but in a much more it is essential that we bridge this gap in first of these relates to geography. comprehensive manner by tackling recognition. To do so, communication As Rycroft explains, we could shrink underlying causes as well as presenting between everyone working in the sector, the geographical breadth of our symptoms, is one of the “single best including politicians, and the general international efforts to focus purely things” the UN has ever done. public must be improved. The general on the global population who are still public must be told what their hard- considered to be extremely poor, the “I would love for Brexit to be the earned taxpayers’ money is spent on, vast majority of whom live in Sub- moment when, as a country, we why it is spent on this, and why it is a Saharan Africa. However, in alignment have a national conversation about good thing. with the SDGs, we must work not just what our values are, what we stand to resolve the presenting symptom of for, and in particular, connect The notion that International poverty, but the underlying root causes Development detracts from national with what we’re good at as a too. In this way, we can aim to create prosperity must be dispelled. Indeed, country. And we are really good at a lasting break in the cycle of poverty. as Rycroft states, “it is actually possible This will require us to continue our International Development. And so, to work to end poverty at the same work across a variety of regions. The we should make more of it.” time as promoting our own country. second of these departmental shifts Matthew Rycroft, Permanent Secretary at the There need not be a tension between relates to functions. Drawing from the Department for International Development those two things.” For example, around previous point, DFID should aim not just Whitehall the term ‘national interest’ to provide healthcare and education, The second interrelated area which has a three-part definition, centred on but to actually understand and confront engenders Rycroft’s confidence in our prosperity, our security and our the issues which prevent countries from the stability of UK aid post-Brexit, influence. Rycroft believes it is entirely being able to provide these necessities is the way in which the UK within possible to commit ourselves to work themselves, such as issues of instability, Europe is changing. Of course, on international issues, whilst also conflict, lack of justice, corruption, poor the most notable change currently tapping into at least one of these three transparency and poor governance. affecting the UK/ Europe landscape core elements of national interest. Our is Brexit. And yet, despite Brexit’s work in Sierra Leone to end Ebola, he Lastly, DFID will shift in terms of its almost characteristic turbulence and believes, is proof of this. This work not instruments. Increasingly, International uncertainty, Rycroft remains sure that, only saved lives, but also prevented a Development is becoming reliant on in the vast majority of outcomes, there global health risk from reaching the UK, partnerships: partnerships between the will not be a dramatic change in terms thus improving our security. public and private sector, and between of international development. The the UK and other nations. The aim is to Government’s preparedness for “all “New priorities will represent a move away from the traditional sense of plausible scenarios, and quite a lot of fundamental strategic shift in the international aid, and to help countries implausible scenarios as well,” coupled way we use our aid programme, to “grow themselves out of poverty”. with the broad ideological alignment putting development at the heart of This change is both what countries between the UK and Europe on the our international agenda – not only in the developing world want and it is topic of international development, fuels protecting and supporting the most expected to deliver more successful Rycroft’s hopes that, regardless of the and longer lasting results. outcome, cooperation and collaboration vulnerable people, but bolstering can and will continue. As he explains, states under threat, shaping a global UK aid post-Brexit therefore, at least if we reach a deal, a future partnership economy that works for everyone, from Rycroft’s perspective, can be more can be negotiated during the transition and building co-operation across or less guaranteed to continue relatively period. If we do not reach a deal, it has the world in support of the rules- uninterrupted. Thanks to a shared already been agreed that the UK and based system.” alignment between the UK and the EU the EU will carry on working together on as regards International Development, Theresa May, Prime Minister’s Speech in Cape matters of International Development. the scope of work that lays ahead to Town, 28 August 2018 As Rycroft explains, “even the fulfil the ambitions of the SDGs, and staunchest of Brexiteers agrees that the The final area which inspires Rycroft’s DFID’s newly central positioning in the objectives of both the EU and of the UK assuredness in the UK’s International UK political landscape, Rycroft feels in terms of International Development Development efforts post-Brexit lies certain that the UK will continue to play are pretty aligned.” in how DFID is changing. Specifically, an integral role in the world of how it is changing as a direct result International Development.

PwC’s 11th International Development Conference summary report 29 Better Together

Closing remarks

Speaker “Our job is to find a new way of Simon Maxwell, Senior Research framing the development narrative Associate at the Overseas Development that recognises the imperative of Institute, joined us to conclude our delivering Sustainable Development International Development Conference Goals (SDGs) but also looks out 2019. Maxwell highlighted the the window at the world as it is and responsibility we all have as leaders how it’s changing. It’s not just about to shape the development debate and Simon Maxwell poverty now. That is important, but champion it beyond the development Senior Research Associate, Overseas is it about deep structural change in community. If we don’t do it, who will? Development Institute (ODI) the world economy, about disruption Maxwell urged the audience to leave the and dislocation, about losers as well conference with a commitment to stand as winners.” by development which is currently Simon Maxwell, Senior Research Associate, under threat. Overseas Development Institute (ODI) Maxwell highlighted that the conference featured two important although different narratives. The first and dominant narrative was related to delivering the SDGs, fixing shortfalls and delivering evidence. The second narrative related to thematic areas and global trends such as climate change. Climate change is strongly linked to the new industrial revolution which is going to sweep through the world economy and have a “If we don’t do it, significant impact on livelihoods. Are we ready for that? Maxwell drew on a comparative example, by reminding us that in 1960, the Port of London had a throughput who will?” of 60 million tonnes and yet 10 years later this had fallen to zero due to the disruption caused by the introduction of containers. Automation and use of digital technologies with a combination of cheap processing power has similar

30 PwC’s 11th International Development Conference summary report potential to sweep away millions of think about how aid is going to be used indicated that he was arrested in 1805 as traditional jobs in the UK and developing in the future and how we can go beyond a highwayman and then was deported to countries. The impact of automation aid to work in true partnership. Australia where he was murdered. will no doubt create opportunities as Concluding, Maxwell shared a personal “My ancestor was a man who well as challenges. We were reminded story about one of his ancestors, John experienced the kind of disruptive to explore and investigate historical Maxwell. John was an outworker in change that we’ve spoken about examples of disruption and the impact of Nottingham who made stockings today and I would like to think global trends on UK towns, for example, for the London market and was very we can do better by those who Blackpool, once the UK’s tourist hotspot. exposed to changes within the fashion experience disruption today,” While many turn to technology for industry. In the late 1770s, his business Simon Maxwell, Senior Research Associate, solutions, we cannot expect people in was disrupted by a new trend where Overseas Development Institute (ODI) developing countries to be reliant on people stopped wearing stockings and applications that have been developed began wearing trousers. As a result, in other countries. We need these the outwork industry in Nottingham applications to be locally relevant collapsed. In parallel, food prices shot and implemented within the countries up and local riots began. Sadly, the last themselves, Maxwell said. We need to record of John Maxwell that was found,

PwC’s 11th International Development Conference summary report 31 Contact us

Dr David Armstrong PwC UK Partner, International Development Industry Leader T: +44 (0) 77 1368 0266 E: [email protected]

Aga Sala PwC Senior Manager, International Development T: +44 (0) 77 0129 7011 E: [email protected]

32 PwC’s 11th International Development Conference summary report PwC’s 11th International Development Conference summary report 33 34 PwC’s 11th International Development Conference summary report PwC’s 11th International Development Conference summary report 35 At PwC, our purpose is to build trust in society and solve important problems. PwC is a network of firms in 158 countries with more than 236,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com/UK.

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