How multi-stakeholder partnerships drive sustainable development

It feels as though every year, as we approach the World Economic Forum's Annual Meeting in Davos, the need for multi-stakeholder partnerships becomes more and more critical. When we gather in January to confront the big global challenges of this moment – the promise and fears of Artificial Intelligence and biotechnology, the reality of a globalized economy and protectionist reactions, a lack of social cohesion and the impacts of climate change – we acknowledge the need for business leaders, policymakers and civil society to come together. Not only to tackle these challenges but also for growth, progress and development that is sustainable and equitable.

Cross-sector collaboration is crucial for tackling challenges that no single entity can solve alone. This is because bringing together diverse perspectives – combining different viewpoints, skills and knowledge can lead to more innovative and creative solutions. The variety of resources contributed by a variety of stakeholders - funding, technology, expertise, data or insights – combined can lead to even greater impact on an issue. And lastly, an increased sense of legitimacy, trust and accountability can arise when you have multiple stakeholders involved, thus inspiring even more contributors and lead to greater scalability and sustainability of initiatives over time.

Partnership models can take several forms. Public-private partnerships combine the strengths of government entities such as regulatory capacity, policy-making and public mandate with the private sector’s expertise, efficiency and financial resources. Multilateral initiatives bring together multiple countries and international organizations to address issues that go beyond national boundaries. Partnerships with Non-Governmental Organizations (NGOs) concentrate on humanitarian aid, environmental conservation and other challenges that need specialized, local knowledge or community-driven solutions.

Regardless of the type of partnership, what makes them successful is remarkably consistent. Members of the coalition must align on a common purpose with a shared vision and tangible goals. The environment within the collaboration must be one where open communication, transparency and accountability are common values that are upheld regardless of the roadblocks encountered along the way. And when the inevitable roadblocks do appear, they must be sufficiently flexible and agile to change course and adapt to an evolving reality.

Looking at practical examples of multi-stakeholder partnerships can inspire imitators. At the World Economic Forum, we launched the Edison Alliance in 2021 to accelerate digital inclusion and ensure the widespread participation of 1 billion people globally in three key areas of the digital economy: healthcare, education and financial services by 2025. Some leaders of this global movement include Ericsson, which partnered with Bharti Foundation to deploy a STEM programme for 300 students in India which has since expanded to 4 additional schools. Ericsson also partnered with Universiti Technologi Malaysia and Digital Nasional Berhad to educate students in Malaysia on 5G and emerging technology, reaching 1200 students in its first year.

The First Movers Coalition aims to drive demand for emerging technologies that are essential for achieving net zero emissions by 2050. Bringing together companies committed to purchasing low carbon products and services accelerates the development and deployment of these technologies. The coalition focuses on heavy industry and long-distance transport – those that are difficult to decarbonize – to create market signals that encourage innovation and investment in sustainable solutions. The heart of this coalition is public-private partnership in which governments provide the policy support and incentives while private companies commit to buying and scaling up the use of these technologies.

Women spend 25% more time in poor health than men. Every $1 invested in women’s health unlocks $3 in economic growth and addressing the women’s health gap would boost the global economy by $1 trillion annually – a 1.7% increase per capita in GDP, according to data from the Forum and the McKinsey Global Health Institute. This is why the World Economic Forum established the Global Alliance for Women’s Health. This Alliance brings the public and private sectors together to unlock investments and financing models, encourage innovation and set a new global agenda for women’s health. One of the ways in which the Alliance is helping to close the women’s health gap is through the Gender Health Equity Index being developed by Kearney. This index will help organizations promote gender health equity across their value chain by defining the baseline and sharing targeted recommendations. They will publish these benchmarks and track progress each year through an annual publication.

Despite these inspiring examples, public-private partnerships are not without their challenges. With such a diverse set of stakeholders, it can be difficult to align on shared goals and priorities. It can be even more challenging to determine how to establish clear metrics, share the risks, ensure accountability and transparency, navigate legal and regulatory issues, navigate political and economic uncertainty and maintain financial viability. Ensuring sustained engagement and long-term commitments requires strong leadership and exceptional communication skills — especially when navigating cultural differences. But by studying those successful examples and incorporating the lessons learned, future public-private partnerships can have a better chance of success and likelihood of delivering meaningful outcomes.

The challenges of sustainable development are too complex, interconnected and urgent for any single entity to address alone. By fostering collaboration among governments, business, civil society and academia, a collective approach can produce more comprehensive, inclusive and lasting solutions that promote a more sustainable and equitable future for all.