Private sector involvement makes aid more effective
A recent article on the Guardian UK’s “Poverty Matter’s Blog” written by Peter Davis, a research fellow in the ODI’s private sector and markets programme, highlights the importance of private sector involvement on aid effectiveness.
The article refers to a diverse set of studies – e.g. a strategy paper for the Dutch foreign ministry, research carried out by Unctad, the Indian government and the UK’s Department for International Development (DfID), etc. – which all similarly conclude that the private sector plays a primary role in the process to lift countries out of poverty.
Mr. Davis notes that while considerable effort has been put into many development initiatives over the past decade and a half, private sector development remains peripheral to most donor activity. He argues that we need to recognise that donors and companies perform different roles in the development process, and that a more joined-up complementary approach is needed. By engaging more strategically with the corporate sector, donors will be better able to leverage their limited resources, and to demonstrate that their efforts genuinely contribute to pro-poor growth.