Select Committee on International Development Fourth Report


The role of the private sector as the driver of economic growth has perhaps been neglected by donors, who have tended to focus on securing poverty reduction through aid to social sectors. More recently, Private Sector Development has been given a higher profile on donor agency agendas, including DFID's. The Committee, therefore, decided to conduct an inquiry into the role of the private sector, and specifically the role that donors can play, in encouraging PSD. We received written memoranda from more than 50 individuals and organisations, including companies, Non-Governmental Organisations (NGOs), academic institutions, consultancies, co-operatives, business forums, public private partnerships, UN agencies and other multilateral organisations, as well as from individuals. We held eight evidence sessions at Westminster between February and May 2006.

We are grateful to all those who submitted evidence, and those who assisted us in other ways. We would like to thank especially the following individuals and organisations who gave oral evidence: the Rt Hon Hilary Benn MP, Secretary of State for International Development; Sharon White, Director of Policy Division, DFID; William Kingsmill, Head, Growth and Investment Group, DFID; Gavin McGillivray, Head, International Financial Institutions Department, DFID; Richard Boulter, Head of Profession, Enterprise Development, DFID; Tony Venables, Chief Economist, DFID; Richard Laing, CEO, CDC Group; Robert Annibale, Global Director, Citigroup Microfinance Group; Professor Adrian Wood, University of Oxford; Sunil Sinha, Director, Emerging Market Economics; Joe Matome, Company Secretary, Debswana Diamond Company; Jay Naidoo, Chairman, Development Bank of Southern Africa; Peter Cameron, Fellow, Institution of Civil Engineers (ICE) and Chairman of ICE's Appropriate Development Panel; Petter Matthews, Executive Director, Engineers Against Poverty; Lord Brett, Director, International Labour Organisation (ILO) London; Dan Rees, Director, Ethical Trading Initiative (ETI); Albert Tucker, independent consultant and former Director of Twin Trading; Michael Pragnell, Chief Executive, Syngenta; Dr Andrew Bennett, Executive Director, Syngenta Foundation for Sustainable Agriculture; Professor Keith Palmer, Chairman of Emerging Africa Infrastructure Fund and of Infraco, Non-Executive Director of Guarantco; Bob Fitch, Project Director, Financial Deepening Challenge Fund, Enterplan; Ann Grant, Vice-Chair, Standard Chartered Capital Markets Ltd; Sue Clark, Director of Corporate Affairs, SABMiller, former Chair of Business Action for Africa; Walter Gibson, Head of Global Health through Hygiene Programme, Unilever; Andrew Hollas, Head, Africa Markets, PricewaterhouseCoopers; Stirling Smith, Co-operative College; Sumi Dhanarajan, Head of Private Sector Team, Oxfam; Dominic Eagleton, Policy Officer, ActionAid and Dr Claire Melamed, Trade and Private Sector Policy Manager, Christian Aid.

We are particularly grateful to those organisations and individuals from developing countries, and/or with close links to developing countries, who took the time to engage with the inquiry. We greatly value their input and look forward to more input from developing countries in future inquiries.

We would like to thank our Specialist Advisers, Zahid Torres-Rahman, Director, Inspiris Limited and Dr. William Kalema, Board Chairman of the Development Finance Company of Uganda and member of the Commission for Africa. We would also like to thank all those who took part in informal discussions with the Committee, including Jim Tanburn, consultant and Coordinator of the Donor Committee for Enterprise Development, Michael Klein, Vice President for Private Sector Development, World Bank and the International Finance Corporation and Hernando de Soto, Institute for Liberty and Democracy, Peru.

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Prepared 23 July 2006