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Private sector development: Business plan or development strategy?

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  • Küblböck, Karin
  • Staritz, Cornelia

Abstract

Private sector development (PSD) has taken on an increasingly prominent role in international development cooperation. This note argues that the private sector has to play an important role in sustainable economic and inclusive development but points out three concerns for effective PSD interventions: PSD is not a 'technical solution' but there are different theoretical approaches to the question which policies support a sustainable and inclusive private sector. There is no 'one' homogenous private sector but important interest conflicts and the interest of foreign firms should not be equated with the interest of the local private sector and national development concerns. A pro-development international policy environment in particular in the areas of trade and investment policies is crucial for PSD which stresses the importance of donors' policy coherence.

Suggested Citation

  • Küblböck, Karin & Staritz, Cornelia, 2015. "Private sector development: Business plan or development strategy?," Policy Notes 14/2015, Austrian Foundation for Development Research (ÖFSE).
    • Handle: RePEc:zbw:oefsep:142015
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    References listed on IDEAS

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    1. Robert H. Wade, 2012. "Return of industrial policy?," International Review of Applied Economics, Taylor & Francis Journals, vol. 26(2), pages 223-239, November.
    2. Staritz, Cornelia, 2012. "Value chains for development? Potentials and limitations of global value chain approaches in donor interventions," Working Papers 31, Austrian Foundation for Development Research (ÖFSE).
    3. Michael Blowfield & Catherine S. Dolan, 2014. "Business as a development agent: evidence of possibility and improbability," Third World Quarterly, Taylor & Francis Journals, vol. 35(1), pages 22-42, January.
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    Cited by:

    1. Küblböck, Karin & Grohs, Hannes, 2019. "Blended finance and its potential for development cooperation," Briefing Papers 21, Austrian Foundation for Development Research (ÖFSE).
    2. Langthaler, Margarita, 2015. "The transfer of the Austrian dual system of vocational education to transition and developing countries: An analysis from a developmental perspective," Working Papers 53, Austrian Foundation for Development Research (ÖFSE).

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