Published on : 08 July 20212 min reading time
The European Commission issued a call for contributions to their proposed communication on ‘Strengthening the role of the private sector in achieving inclusive and sustainable growth in developing countries’. The Issue Paper touches on some of the most relevant topics in private sector development. It addresses key questions such as finance, skills training, green growth and support to small and medium-sized enterprises (SMEs), as well as important follow-on issues such as inclusive business and the private sector as a delivery channel. ODI’s submission, however, argues that the paper would benefit from a greater focus on the business regulatory environment, which the authors believe should be a key component of any private sector strategy. An effective business regulatory environment ensures effective growth of private enterprises by setting up clear and transparent rules and regulations, helps to provide incentives to set up systems and institutions that private actors require (such as good market information systems and an efficient financial sector), and helps create effective market and communication linkages between companies, civil society, governments and the private sector. These systems are also necessary for efficient and sustainable delivery of services through the private sector, such as healthcare or education. Read more here.