Thinking Beyond the Public Company
For the first time in over two centuries—since the start of the industrial revolution—the majority of the world’s economic growth took place in the developing world, driven in large part by China, India, and other Asian economies. According to the International Monetary Fund, most countries in the Organization for Economic Co-operation and Development will need to reduce deficits by at least four percent of gross domestic product by 2020 to meet their long-term targets for public debt.
We help clients to develop sustainable economic growth strategies and financial plans that help accelerate gross demotic product growth, trade, investments, and employment. We support comprehensive, country-wide strategies to improve productivity, assist in the creation and expansion of sectors, and generate urban and rural economic renewal. We have deep experience working in low- and middle-income countries, across a range of economic development challenges and sectors where we help promote economic growth, while protecting natural resources.
Maximizing Revenue from Government-Owned Assets
It’s been nearly three decades since Antoine van Agtmael coined the term “emerging market” to describe the waking giants of the developing world. During that time, we’ve come to think of emerging markets—including the so-called BRIC nations of Brazil, Russia, India and China—as immature states in which political factors matter at least as much as economic fundamentals for the performance of markets. As globalization came to seem more and more like a historical inevitability, the assumption among wealthy nations was that the injection of politics was a temporary stage that these developing economies would mature (each at its own tempo) into a state of grace in which economic balances, not politics, would drive local markets.
Governments everywhere face a daunting paradox. On the one hand, they operate in an increasingly complex environment and must deliver on an expanded set of global policy objectives. In a world characterized by macroeconomic uncertainty, rapid social change, and technological innovation, citizens’ expectations of what government ought to deliver are rising. On the other hand, governments are hampered by unsustainable debt burdens and shrinking budgets. The ratio of general government debt to gross domestic product for member states now exceeds one-hundred percent.
Government by design calls on public-sector leaders to favor the rational and the analytical over the purely ideological and to be willing to abandon tools and techniques that no longer work. Four principles are at its core: the use of better evidence for decision making, greater engagement and empowerment of citizens, thoughtful investments in expertise and skill building, and closer collaboration with the private and social sectors. Each of these principles is central to creating more effective yet affordable government.
We help public-finance institutions meet these challenges. Our work in public finance covers a wide range of topics, from examining macroeconomic trends and performing expenditure analysis to assessing and quantifying risk, redesigning IT infrastructure, and exploring new methods of revenue generation.
We support our institutional, public-private equity and principal investor clients in defining their business and investment strategy, including fundraising and limited partner communication. To execute these strategies successfully, we help our clients find the best organizational design and governance approach at fund, holding company, and portfolio levels, as well as provide functional capability training to actively drive value in portfolio companies. We also advise on various operational topics like risk management.
Public-Private Partnerships (PPP)
With its range of risk-return profiles, strong hedges against inflation, and attractive time frames for long-term investors, infrastructure is a compelling asset class for a wide range of investors. We assist public entities in framing the case for PPP participation, developing the economic model and risk transfer solution for PPPs, managing PPPs and their various stakeholders, designing and staffing government units to review and manage PPPs, and optimizing the PPP process.