Udvikling fra bistandsprojekt til multinational virksomhed under PSD programmet

Per Bjerre

Student thesis: Diploma thesis


In This Study I am analyzing Danidas use of PSD programs through the last three decades where it has been one of their main programs. During the entire period several evaluations has been made by different consultancy groups on behalf of Danida and they more or less reached the same results, that the PSD programs conducted by Danida has not reached its aims. I will be looking into why Danida has seen all its programs (PSD, B2B and DBP) as not living up to the expectation set up from the beginning, by using some of the known theories about when companies will be ready to set up a partnership or branch abroad. It will be by using the Revised Uppsala model to look into if the participating companies actually have been ready for going into the process of setting up a foreign branch at all and in an undeveloped country like the Danida Program countries all are. If it shows up that the participating companies not are in the right stage of their development process they will not be ready to take this step and will most likely fail. Another point that I will look into is the fact that Danida have as one of their main points that the companies are expected to seeking partnerships that are sustained and commercially viable beyond the period of Danida support. At the same time one of the main constructions that Danida was looking into was establishment of IJV a form that often are very provisional for the two mother companies only using it until the aims has been reached and then close it down again. Another of the points that Danida are requesting is Technology transfer from the Danish partner to the foreign partner for upgrading the technology used in the undeveloped country. By using the Mudambi Smile Model I will examine to what extend that it can be expected that a Danish company will transfer technology to a foreign partner and what type of technology will be kept in the mother company. Further I am analyzing when a country will be ready to have benefits of the FDI that is the idea behind PSD programs used as a very common Development tool in developing countries. If the countries don’t have the right Makro structure FDI will be more harmful than developing to the countries receiving it. It shows up that most of Danida Program Countries do not have all the needed structures to benefit from the investments made by the Danish companies, and that often are the reasons behind the unsuccessful use of the PSD programs in many of the countries. 5 In the case Fowler/Westrup that I am describing it is clearly shown, that when two companies follow the theories used in this study and the country do have the right Makro structure making it ready to work with the incoming FDI using PSD programs will be a way of developing undeveloped countries. The overall conclusion is that it will be possible to use PSD as a tool for developing undeveloped Countries but if we like Danida have the same program for all type of Countries without any changes it will not be a success. It will only be useable if the countries do have the right Makro structure being ready to absorb the technology coming in, having the right education level, the right infrastructure and offering the companies making FDI attractive conditions. In countries not being ready it will create more problems that development when companies try to start up and get involved with local companies just to find out that it does not come to work and then leave again, then the local companies often is left behind worse than before due to the changes made started up but not completed.

EducationsGraduate Diploma in International Business, (Diploma Programme) Final Thesis
Publication date2017
Number of pages84
SupervisorsHenrik Johannsen Duus