South-South Development Cooperation in Latin America: What Role for the Private Sector?

The international development community has become increasingly concerned with the role of the private sector in development. Historically, developed countries - the traditional providers of official development assistance - have sought to promote private sector development in developing countries. More recently, however, there has been an increasing focus on partnership with the private sector to address development challenges. While research on traditional donor approaches to the private sector is emerging, much less is known about the role of the private sector in South-South Development Cooperation (SSDC). This article seeks to begin addressing this gap by examining the theoretical and de facto roles given to the private sector in SSDC, using the Latin American region as a case study. The region provides a useful case because of its density of development cooperation initiatives, relatively high degree of institutionalization in areas relating to political and economic cooperation, and diversity in terms of size and levels of development across countries. Drawing from Kindornay and Reilly-King’s (2013) categorization of traditional donor approaches to the private sector as a basis for analysis, the article looks at how SSDC providers in Latin America engage the private sector. By reviewing policies and activities in the region, the article shows where SSDC providers in Latin America and traditional donors are engaging in similar activities for private sector development. It also shows that, unlike traditional donors, providers of SSDC in Latin America have yet to embrace the private sector as a key partner in development.