Policies for promoting the private sector's role in development

Recent global social and economic shocks have demonstrated that it can “no longer be business as usual” in the development world. Aid budgets are being cut or are drying up, with developing countries facing a shortfall of funds. This is coupled with the realisation that decades of development aid have not lifted countries out of poverty and that while still crucial in the combat against poverty, official development assistance (ODA) alone will not solve world challenges. All eyes are therefore on the private sector as a new engine for economic growth and opportunities.
 
The Development Policy Forum (DPF) debate on the role of the private sector in development cooperation took place ahead of the High-Level Forum on Aid Effectiveness organised in Busan at the end of 2011. Participants discussed the current development cooperation landscape, different types of private sector intervention, the ‘pros’ and ‘cons’ of the private sector as a new development player and its impact on the development agenda.

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