In the past two decades, multistakeholder partnerships have been on the rise. With the perceived failure of intergovernmental organizations to get things done, the international system has turned toward partnerships. Allowing for collaboration with private actors, they are increasingly seen as the governance model du jour. They're praised for being democratically legitimate, thanks to their inclusion of a range of public and private stakeholders—most notably the inclusion of developing countries and civil society that had hitherto been excluded from international policy-making processes. My comments address three topics: (1) the rise of partnerships in context, (2) the reasons for their rise, and (3) challenges.
Partnerships in Context
The rise of partnerships shouldn't be viewed in isolation; rather, it's part of a larger evolution taking place in the international system. A system characterized after World War II by “international organization”—constituted by states, intergovernmental organizations, and treaties—has evolved since the 1990s to a system of “global governance,” constituted by a range of governmental and nongovernmental actors (such as civil society organizations, NGOs, multinational companies, and industry associations), informal institutions and rules that fall short of binding treaties (soft law, informal law, global regulation). This process has also been called by Joost Pauwelyn and collaborators a shift from formal to informal lawmaking and institutions. In this age of global governance, governments no longer collaborate solely with other governments or in intergovernmental organizations but also with private actors through informal institutions such as transgovernmental regulatory networks (e.g., Basel Committee on Banking Supervision), private standard-setting bodies (e.g., GLOBALG.A.P.) and multistakeholder partnerships (e.g., Global Fund to Fight AIDS, Tuberculosis and Malaria; ICANN). The rise of partnerships is, therefore, best seen in this context, and as a development that is part of a larger evolution in the way the international system is governed.
Historically, multistakeholder partnerships, that is, partnerships among governments, civil society, and the private sector, emerged from within the multilateral system. The 1992 Rio Declaration introduced the idea of a “global partnership” among states, civil society, and the private sector, and the UN Millennium Goals set out to “Develop a Global Partnership for Development.” Increasingly, partnerships emerge independently in diverse policy fields, be it sport (World Anti-Doping Agency), trade (Kimberley Process on Blood Diamonds), or the Internet (ICANN). Some of the most influential are in global health, such as the Global Fund to Fight AIDS, Tuberculosis and Malaria, and GAVI Alliance. The Global Fund to Fight AIDS, Tuberculosis and Malaria, set up in 2000, was among the first multistakeholder partnerships and has served as a model for many later partnerships.
The partnership trend isn't revealing any signs of slowdown, and most likely we will see more of them in the future. Reflecting this partnership trend, Goal 17 of the Sustainable Development Goals (SDGs) is to “[r]evitalize the global partnership for sustainable development,” calling on countries to work through multistakeholder partnerships at the national and international levels.
Drivers Behind the Rise in Multistakeholder Partnerships
Three main factors explain the rise in partnerships and their benefits: the perceived failure of the traditional intergovernmental organizations (IOs), private actors and effectiveness, and democratic legitimacy.
The Perceived Failure of Traditional IOs
First, the perceived failure of intergovernmental organizations to effectively achieve their goals triggered a search for new institutional models. With their universal consensus requirements, bureaucratic demands, and failure to produce results, intergovernmental organizations were perceived as inefficient and ineffective, leading to a loss of confidence. Also, the rise of neoliberal ideas encouraged the search for more effective institutions. For example, the loss of confidence in the WHO's effectiveness in improving childhood vaccination were among the main drivers behind GAVI's establishment.
Private Actors and Effectiveness
Second, there was a growing sense that cooperation with private actors was necessary to tackle global problems. Private actors—be they multinational companies, industry associations, civil society, or NGOs—provide resources, often in the form of expertise and knowledge that governments lack and depend on. The private sector's technical and scientific expertise is needed for standard-setting, and their inclusion also increases compliance with and implementation of policies. Civil society organizations are plugged in locally, allowing for better local input, ownership, and ultimately better policies and their implementation (rather than “top-down” imposition of policies). Thus, in contrast to intergovernmental organizations, partnerships are perceived as improving capacity, ownership, implementation, and consensus among governmental and private actors, leading to more effective management of global problems.
Democratic Legitimacy
Finally, thanks to the inclusion of stakeholders who are affected by international policies, partnerships are perceived as boosting democratic legitimacy. Individuals have traditionally been considered subsumed within the states, and it has been the state's obligation to represent its citizens at the international level, say by “diplomatic protection” principles. However, this is an idealized and unrealistic view of governments. In practice, governments often do not properly represent their citizens; in fact, their interests on international matters are often conflicted rather than aligned (think say of a developing country wishing to receive assistance from the World Bank for a development project that will require population resettlement). Thus, the inclusion of stakeholders in partnerships improves the democratic responsiveness of the governing body toward those governed. For example, the World Commission on Dams, a partnership that set environmental and social policies for dam construction projects, included communities directly affected by dam projects, which, arguably, improved its democratic legitimacy. Similarly, ICANN's openness to the community at large, and the Global Fund and GAVI's openness to civil society, arguably make them more democratic than their multilateral peers.
Thanks to developing country membership, partnerships are also perceived as more democratic toward developing countries. Many intergovernmental organizations are formally universal, yet de facto governed by a “club” of developed countries. By giving developing countries a seat at the table, partnerships are, arguably, more responsive to the interests of those affected, leading to greater democratic legitimacy.
Challenges
Partnerships, thanks to the inclusion of weaker stakeholders (such as civil society and developing countries) alongside the traditionally powerful actors (developed countries and their industries), are often praised for their democratic legitimacy and perceived as a relatively ideal form of international governance. A critical look suggests, however, that we should not take partnerships at face value. Despite the benefits mentioned above, certain challenges hide under the surface. Lacking an international legal framework, partnerships act within a regulatory void, leaving matters of equality and fairness to the parties' discretion; as a result, participation between “competing” commercial and public interest interests and between developed and developing countries is often imbalanced; moreover, rules for managing the risks of private sector engagement are largely lacking. If not addressed properly, these challenges may erode partnership legitimacy and undermine their promise. Since many new initiatives take the form of partnerships, we should be mindful of these difficulties, which so far have not received enough attention. I'd like to focus on two main challenges. These two challenges are related and overlap, yet for analytical purposes I distinguish between them:
Imbalanced Participation and Hidden Power Asymmetries
While partnerships have the promise of being “democratic” and leveling out power inequalities—and they have certainly done so to some extent—power asymmetries within partnerships remain. The partnership model, in itself, is not a guarantee of equal participation of diverse stakeholders. Power asymmetry between commercial and noncommercial and between developed versus developing countries remains. This asymmetry introduces the risk of “information” or “representational capture”; that is, capture that occurs subtly through imbalance in the representation of competing information and interests. In such cases, the partnership is more likely to adopt an industry or developed country friendly point of view if those are the only, or the primary, people from whom it hears. This may lead to decisions that prioritize their interests over the interests of the weaker stakeholders or over the public interest.
Imbalanced participation and power asymmetries between commercial and public interests, or between developed and developing countries, come in various forms. Asymmetry may be obvious, such as when different stakeholders have different amounts of seats. The more complex yet prevalent situation is when different sectors have equal seats, yet inequalities are caused by capacity gaps. Developing countries and civil society simply may not have the resources or the expertise needed to participate effectively. As a result, the ideas that inform, and ultimately shape, decisions originate from high-income countries or their industries.
Risks of Business Sector Engagement
More specifically, collaboration with the business sector introduces a set of risks that have largely been ignored. Under the guise of democratic governance, partnerships that include the business sector (which is very often the case) introduce risks of conflicts of interest, undue influence on policy making, or granting certain businesses a competitive advantage over excluded businesses. Moreover, the partnership model, perceived as more democratic, grants a false impression of legitimacy—behind which business actors can hide, enabling them to whitewash their brand or product, while influencing policy and the agenda in line with their business interests. The private sector may try to manipulate the partnership's agenda to fit its special interests, as has been the case in IMPACT, under the guise of combatting counterfeit drugs, where the pharmaceutical industry has been advancing its IP enforcement agenda. Other partnerships in fields as diverse as investment, the Internet, and food have been similarly criticized for being industry influenced. A legal framework for managing collaboration with the private sector and the involved risk has yet to be developed.
To conclude, the multistakeholder model in of itself is not sufficient in safeguarding deliberation from power and wealth, and in fact introduces the risk of advancing corporate interests at the cost of the global public interest. Partnerships have many advantages. But, if unmanaged, they risk being a facade for corporatism, undermining the public interest in the public goods that they regulate.
Judging by the prevailing partnership narrative (e.g., in the context of the SDGs where partnerships are promoted), this problem has not received sufficient attention. Most partnerships run their business free of any constraints on these issues. Inspiration for dealing with this problem can be found in the WHO's recently released “Framework for Engagement with Non-State Actors” (FENSA), which sets policies for managing the risks associated with private sector engagement. An online, publicly available register of nonstate actors engaging with the WHO is intended to improve transparency, though only time will tell whether this framework will mitigate undue influence of the private sector. Somewhat addressing these concerns, the Global Fund and ICANN have also introduced new conflicts-of-interest policies.
Finally, a question from the audience: How do we determine which stakeholders should have a seat on a partnership? My response: there are two main guiding criteria. First, speaking to the democratic purpose of partnerships, we should ask: Who are the most affected stakeholders? Second, speaking to the effectiveness of partnerships, we should ask: Who are the stakeholders who can contribute most to the partnership? Although more nuance would be required in the actual application of these criteria, they set out a basic framework when approaching member selection.
To conclude, for partnerships to keep their democratic promise, and to prevent partnerships from falling prey to corporate interests under a democratic pretense, better partnership regulation is needed.
