Brokering Trust: A Framework for Accelerating Digital Innovation in Developing Countries
It is well documented that businesses are always on the lookout for ways to promote innovation and development while ensuring successful outcomes. A new framework developed at Cambridge Judge Business School, called Brokering Trust to Accelerate Innovation, can help bridge the gap between the private sector and governments in low- and middle-income countries.
This framework introduces a neutral third-party, such as a university like Cambridge, that acts as an honest broker between governments and the private sector to encourage private sector involvement in development projects. Digital innovation is the key to bringing prosperity to lower and middle-income countries, and this framework can ensure better outcomes by providing a credible and neutral institution to act as a mediator.
Piloting the framework
The framework has been piloted in Peru and Ethiopia in initiatives that include digital education, hospital efficiency, and vehicle solutions for rural farmers. The success of these pilots demonstrates the viability of the new model.
The framework co-authored by Professor Jaideep Prabhu of Cambridge Judge requires a suitable private sector partner, a responsive government champion, and a well-selected project using five criteria: demonstrated effectiveness elsewhere, appropriate scale, an incentive to learn by the private sector partner, built-in monitoring, and evaluation, and leveraging of digital infrastructure.
The report with the first results of the initiative supporting the implementation of the Digital Ethiopia Strategy 2025 was presented on January 24th in Addis Ababa, Ethiopia. The Prime Minister's Digital Advisor and the companies involved was present.
This framework is designed to broker projects between government champions and innovative companies that seek high social impact. Having a third-party broker could be the key to getting many projects off the ground given uncertainties and other issues facing both private companies and governments. As a senior executive, you can leverage this framework to promote innovation and development while ensuring successful outcomes in low- and middle-income countries.
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