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The 'New Minimalist Approach' to Private-Sector Development: A Critical Assessment

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  • Tilman Altenburg
  • Christian von Drachenfels

Abstract

Recent literature on private-sector development emphasises the need to establish a 'level playing field' and tends to disregard selective supportive interventions. The most commonly highlighted elements are administrative simplification and effective property rights policies, with business services largely left to private providers - what we call the 'new minimalist approach' (NMA). However, the NMA is based on certain unrealistic assumptions and is barely backed by empirical evidence. A range of complementary public policies is needed to create competitive sectors and overcome internal constraints, especially in small-scale economies. Copyright 2006 Overseas Development Institute.

Suggested Citation

  • Tilman Altenburg & Christian von Drachenfels, 2006. "The 'New Minimalist Approach' to Private-Sector Development: A Critical Assessment," Development Policy Review, Overseas Development Institute, vol. 24(4), pages 387-411, July.
  • Handle: RePEc:bla:devpol:v:24:y:2006:i:4:p:387-411
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    References listed on IDEAS

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    1. Hannes Öhler & Peter Nunnenkamp, 2014. "Needs-Based Targeting or Favoritism? The Regional Allocation of Multilateral Aid within Recipient Countries," Kyklos, Wiley Blackwell, vol. 67(3), pages 420-446, August.
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    6. Iñaki Aldasoro & Peter Nunnenkamp & Rainer Thiele, 2010. "Less aid proliferation and more donor coordination? The wide gap between words and deeds," Journal of International Development, John Wiley & Sons, Ltd., vol. 22(7), pages 920-940.
    7. Kimura, Hidemi & Mori, Yuko & Sawada, Yasuyuki, 2012. "Aid Proliferation and Economic Growth: A Cross-Country Analysis," World Development, Elsevier, vol. 40(1), pages 1-10.
    8. Peter Nunnenkamp & Hannes Öhler & Rainer Thiele, 2013. "Donor coordination and specialization: did the Paris Declaration make a difference?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 149(3), pages 537-563, September.
    9. Sumner, Andy, 2012. "Where Do The Poor Live?," World Development, Elsevier, vol. 40(5), pages 865-877.
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    Cited by:

    1. Naudé, Wim, 2011. "Entrepreneurship is Not a Binding Constraint on Growth and Development in the Poorest Countries," World Development, Elsevier, vol. 39(1), pages 33-44, January.
    2. Florence Crick & Mamadou Diop & Momadou Sow & Birame Diouf & Babacar Diouf & Joseph Muhwanga & Muna Dajani, 2016. "Enabling private sector adaptation in developing countries and their semi-arid regions – case studies of Senegal and Kenya," GRI Working Papers 258, Grantham Research Institute on Climate Change and the Environment.
    3. Mirjana Radovic-Markovic, 2012. "Analysis of the Level of Development of Private Sector in Serbia During the Last Decade," Book Chapters, Institute of Economic Sciences.
    4. Tilman Altenburg & Wilfried Lütkenhorst, 2015. "Industrial Policy in Developing Countries," Books, Edward Elgar Publishing, number 14726, April.
    5. Abla Abdel-Latif & Hubert Schmitz, 2010. "The Politics of Investment and Growth in Egypt: Towards A New Approach," Working Papers 546, Economic Research Forum, revised 09 Jan 2010.
    6. Küblböck, Karin & Staritz, Cornelia, 2014. "Private sector development: Business plan or development strategy?," Working Papers 51, Österreichische Forschungsstiftung für Internationale Entwicklung (ÖFSE) / Austrian Foundation for Development Research.
    7. repec:pal:eurjdr:v:29:y:2017:i:2:d:10.1057_s41287-016-0010-2 is not listed on IDEAS
    8. Hampel-Milagrosa, Aimée & Loewe, Markus & Reeg, Caroline, 2015. "The Entrepreneur Makes a Difference: Evidence on MSE Upgrading Factors from Egypt, India, and the Philippines," World Development, Elsevier, vol. 66(C), pages 118-130.

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