Memorandum submitted by the Department
for International Development (DFID)
EXECUTIVE SUMMARY
The private sector contributes to economic growth
through providing jobs and incomes, and products and services.
Through these outputs the private sector provides opportunities
to enhance the participation of poor people in improving their
economic and social well-being. Governments and donors, working
alongside civil society and the private sector, have important
roles to play in reducing constraints that prevent the development
of the private sector.
In December 2005, DFID published a booklet on
Working with the private sector to eliminate poverty[1],
which illustrates in more detail the many ways in which DFID is
active in private sector development. This booklet is an important
complement to this Memorandum, as it provides a fuller picture
of the range of DFID activities involving the private sector.
This Memorandum looks more briefly at key areas
of private sector development (PSD) which the UK Government see
as important for improving the development climate facing PSD
and growth in developing countries. These areas include: the investment
climate, the financial sector, agriculture, infrastructure, trade,
and making markets work better for the poor. Examples of DFID
activities are provided in each section.
The Memorandum also notes the private sector's
own engagement in development activities across sectors such as
health, education, utilities and finance. The private sector is
also involved in development issues that cut across many sectors
such as corruption, HIV and AIDS, environment, and international
standards. The information provided in this section is additional
to that in the DFID booklet.
In the last five years, donor agencies such
as DFID have searched out new aid instruments that can contribute
to private sector development, and that can be relevant in difficult
environments, such as "fragile states". Donors have
also become much more interested in achieving coherence of approaches,
and lesson learning, internationally. The Memorandum concludes
with points on future priorities for DFID.
INTRODUCTION
1. At its broadest level, development is
about achieving economic growth and poverty reduction. Economic
growth offers the best prospect for escaping poverty, and poor
people want jobs or self-employment to enable them to have a better
life and with less vulnerability to shocks.
2. Nine out of ten jobs in developing countries
are in the private sector. Poor people are the private sector,
whether farmers in agriculture, microentrepreneurs in informal
markets, or employees in small businesses. Yet amongst some in
the development community, and in some governments, there is a
mistrust of the private sector. And there can be hostility to
the integration of business to business regional and international
trade. This is not in the interests of poor people.
3. The UK Government recognises the vital
role of private sector development (PSD), and the part that governments,
the private sector, and civil society can play in ensuring that
the private sector contributes to economic growth, job creation,
incomes, and the provision of goods and services. This Memorandum
addresses the issues raised by the terms of reference for the
IDC Inquiry into PSD, and has been produced by DFID, with contributions
from the Treasury, DTI, DfES, and DWP.
4. This note is organised as follows. Section
A briefly looks at the links between growth and private sector
development. Section B outlines the main policy issues around
key elements of private sector development: the investment climate,
the financial sector, agriculture, infrastructure, trade and markets.
Section C looks at how the private sector is engaging in development
itself, and Section D looks at aid instruments that can be used
by donors to encourage PSD. Section E looks at coherence of PSD
activities between and within donors.
A. GROWTH &
THE PRIVATE
SECTOR
What can the private sector do to reduce poverty?
5. The term "private sector" often
conjures up the image of large businesses engaged in commerce
or manufacturing. This definition is too narrow. Instead, the
term should be understood to encompass all private actors—individuals,
partnerships, co-operatives and businesses—engaged in risk
taking to earn profits and incomes. As such, it includes the smallholder
farmer as well as the very large, multinational corporation.
6. The private sector has two roles to play
in reducing poverty through "pro-poor growth". The first
is to contribute to economic growth, which is usually a prior
requirement for sustained poverty reduction. Growth requires productive
investment, a well-functioning financial sector, entrepreneurship,
and a vibrant private sector. The second role is to facilitate
poor people's participation in growth. The private sector provides
the vast majority of jobs, creating opportunities for people to
apply their talents and improve their incomes. But these opportunities
are not equally spread. Decisions in the private sector determine
whether, for example, these opportunities are open to women, and
whether different ethnic groups are treated equally.
7. "Pro-poor" growth is defined
with reference to how fast on average the incomes of the poor
are rising. The private sector can contribute to pro-poor growth
through the development of opportunities and industries which
employ poor people[2].
What are the constraints on the private sector
in developing countries and how can they be addressed?
8. Private enterprises face numerous constraints
in developing countries. These are often the result of either
inaction or misguided action by the state. For example, governments
may not allow markets to develop, may introduce burdensome regulations,
or may fail to build support for necessary reforms. Enterprises
may also be negatively affected by political or macroeconomic
instability, weak property rights, poor infrastructure, an underdeveloped
financial sector, or corruption.
9. Tackling these constraints requires a
concerted effort on the part of governments and development partners
such as civil society and international donors. Maximising the
contribution of the private sector to growth and poverty reduction
usually requires action in the following five areas (OECD 2005[3]):
— providing incentives for entrepreneurship
and investment;
— increasing productivity via competition
and innovation;
— harnessing international economic
linkages;
— improving market access and functioning;
and
— reducing risk and vulnerability.
10. Other sources classify influences on
growth and PSD as occurring at 3-4 different levels, typically
"macro", "meso", and "micro" levels[4].
"Macro" level issues include political stability, sound
macro-economic management, good governance conditions, and an
enabling investment climate. "Meso" levels refer to
the availability of underpinning resources for growth and PSD,
including a functioning financial sector, good infrastructure,
education and health systems, and a functioning labour market.
"Micro" levels refer to government and donor interventions
to support PSD, with more recent recognition that this should
be done in a non-distortionary manner.
B. CHANGING THE
DEVELOPMENT CLIMATE
TOWARDS PROMOTING
PSD & GROWTH
Improving the Investment Climate
11. A good investment climate benefits everybody—firms
of all sizes (both domestic and foreign), employees, consumers
and users of infrastructure, finance and property (World Development
Report 2005 (WDR 2005)). This is why DFID places such priority
on working with developing country governments, the private sector,
civil society, and other donors to support investment climate
reforms—getting the conditions right for PSD. The bulk of
investment in developing countries—some 80%—is domestic
investment, and hence the importance of an investment environment
that is good for local large, medium, small and micro businesses.
12. The WDR 2005 is an up-to-date analysis
of the importance of a good investment climate for growth and
poverty reduction, of what constitutes a good investment climate,
and of how developing country governments in partnership with
donors and the private sector can build good investment climates.
DFID worked closely with the World Bank Team during preparation
of the WDR2005—contributing case studies, running workshops
with the World Bank and providing funding for global dissemination
of the WDR key messages.
13. DFID is working to improve the investment
climate in developing countries for domestic and foreign businesses,
and to facilitate private sector development and entrepreneurship
more generally. Much of our work is designed to respond to the
major constraints that businesses face in such countries. Whilst
our country-level responses are informed by best international
practice, each programme is carefully designed to fit local circumstances:
no "one size fits all".
14. DFID is seen as a leading donor on investment
climate reform. We work at both the country and international
levels, and our Investment Climate programmes span a wide range
of interventions, covering all of the WDR "basics" and
beyond. Often, we work with other donors and, where the work does
not engage directly with the private sector, it is nevertheless
informed by the results of business surveys/consultations—such
as the World Bank's in-depth country Investment Climate Assessments
(ICAs) or the Commonwealth's Business Environment Surveys (BES),
both of which DFID supports.
15. The private sector is playing an increasingly
significant role in helping governments reform their investment
climates. Civil society too can play a positive role on investment
climate reform—such as in advocacy for the adoption of competition
regimes that benefit consumers and the poor. On the policy side,
the private sector provides much of the "raw data" for
serious surveys like the World Bank ICAs, and engages in constructive
dialogue with governments to help prioritise reforms that will
overcome the key impediments to investment and PSD.
16. Investment climate reform has significant
impact. For example, on the regulatory side:
— DFID support for the Kenya deregulation
programme led to annual savings to the economy of £64 million
and reduced business transaction costs by up to 70% in 32 local
authorities.
— The Uganda Streamlined Business Registration
pilot project in Entebbe resulted in 75% lower business compliance
costs, reduction of business registration time from two days to
30 minutes, a quadrupling of business registrations, and 40% higher
revenue collection for that municipality.
— In Ukraine, simplification of procedures
reduced business registration time in a regional pilot programme
by 50%, increased the numbers of businesses by 250%, and increased
revenue for the local government significantly.
— In Mozambique, customs reform led
to substantial increases in government revenues—from 49%
(approx US$ 45 million) in year one to 175% three years later.
Clearance of goods after the reforms was up to 40 times faster
than the pre-reform rate.
Mobilizing the Financial sector
17. The financial sector stimulates investment,
underpins private sector development, promotes technological progress,
and increases productivity and growth. Access to finance is a
crucial component of PSD for firms of all sizes, including potential
microentrepreneurs looking for new livelihood opportunities. Yet,
in African countries more than 90 percent of the population is
financially excluded.
18. In many countries, semi-formal channels
such as microfinance institutions (MFIs), play a role in providing
financial services to the poor. But MFIs generally cannot mobilise
funds on a large scale in the way that more traditional financial
institutions can, and they have only limited coverage. As a result,
they are reaching only a minority of the bankable population.
A widening of financial services provision by commercial banks
is necessary to tackle this problem on an adequate scale.
19. Banks are a principal source of domestic
investment, providing credit to small and medium enterprises.
Their previous reluctance to lend to small enterprises in developing
countries is now changing, and some international and developing
country banks are moving into microfinance—for example,
Equity Bank in Kenya, which has received assistance from DFID,
now serves half a million people.
20. Private sector investment vehicles such
as the CDC Group plc have helped to boost private sector investment
in developing countries. As a private equity fund-of-funds, CDC
invests its capital in enterprises—serving as a pioneer,
entering difficult emerging markets where private capital is reluctant
to invest, providing enterprises with much-needed access to capital,
improving their management and, over a period of years, putting
them onto a sound economic footing. DFID has supported other investment
initiatives such as AfriCap, which provides funding for investment
in microfinance intermediaries.
21. DFID and other donors are helping in
many ways, including:
— establishing country-level programmes
to help improve the policy, legal, institutional and regulatory
framework for financial sector development. (DFID has "umbrella"
financial sector programmes in a number of African and Asian countries,
in some cases managed jointly with the World Bank and other donors);
— stimulating innovation/use of technology
that results in improved access to financial services for poor
people. The proposed Africa Enterprise Challenge Fund, endorsed
by the Commission for Africa, would provide a significant stimulus
to innovation.
— supporting the collection of financial
access indicators and data, in order to incentivise and benchmark
policy reform. (DFID is working in partnership with the World
Bank to agree headline indicators on financial access); and
— encouraging improved mechanisms for
diaspora to send money back to their home countries, and also
to invest there. (DFID has initiated remittance country programmes
to help do this, including the Bangladesh remittance country partnership
launched by the Secretary of State in 2005).
Raising Agricultural productivity through PSD
22. In most developing countries, farming
and other agri-businesses are small in scale and are vulnerable
to a variety of risks and investment policy conditions, yet collectively
they account for the biggest share of private sector activity.
Some 70% of poor people are engaged in agriculture globally, as
entrepreneurs and employees. The sector is often highly political,
manipulated by vested interests. Dismantling of large parastatals
in many countries has left a void presently unfilled by the private
sector. Productivity is hampered by poor policy and legal and
regulatory systems (including over-protective legislation, insecure
tenure, unpredictable and ad-hoc state interventions like input
subsidies and export bans).
23. Domestic and regional markets for agricultural
produce have untapped potential. And better private sector development
in agricultural and agri-dependent enterprises has significant
potential to alleviate poverty. So, donors help national governments
improve the climate for agriculture by helping them to create
improved policy frameworks, regulatory environments and associated
spending plans (especially on basic rural infrastructure and agricultural
research). Such improvements are made in dialogue with the private
sector and other organisations that represent the voice of those
engaged in agriculture.
24. DFID is supporting countries:
— to reform agricultural regulations
(eg in India),
— to address agricultural product standards
(eg in Ethiopia),
— to build agricultural markets by
improving poor people's access to agricultural market information
(eg in Bangladesh), agricultural inputs (eg advice and distribution
networks in Malawi), and storage facilities (eg Kenya), and
— to disseminate productivity-enhancing
technologies held by the private sector under intellectual property
rights (eg through PPPs brokered by the African Agricultural Technology
Foundation in Kenya).
25. DFID published its new Agricultural
Strategy Paper in December 200[5].
This emphasises the need to increase agricultural productivity,
particularly for labour-intensive, small-scale agriculture with
its strong links to growth in other areas.
Supporting land and other property rights
26. Property rights have a major role to
play in supporting the interests of poor people within a proper
legal framework. In Peru around 90 per cent of businesses have
no title to their property, making it difficult to borrow and
invest. In Vietnam, rural households received increased rights
when land was de-collectivised, making it worthwhile for them
to invest in their land, raising production and growth.
27. DFID recognises and endorses the need
for property rights, and contracts more widely defined, to be
enforceable. For poor people the most important aspect of property
rights is usually access to and security of tenure over land and
living places. DFID provides support to develop or reform land,
property and legal institutions to enable secure access to land.
For example, in the case of Guyana, DFID has been the principal
donor over a seven to eight year period supporting reform and
change in the Guyana Lands and Survey Commission.
28. Internationally, DFID is providing support
to the UN High Level Commission on Legal Empowerment of the Poor,
which will target significant issues on legal rights to property
and other assets. The Commission aims to promote the extension
of the rule of law to ensure that poor people have formal titles
to land and property, as well as the right to use it.
Re-emphasising the importance of Infrastructure:
29. Reliable infrastructure is a key requirement
for PSD. Since its peak in 1997, infrastructure investments have
dropped by half and private investors still remain cautious with
regard to emerging markets. Transport costs in Africa are twice
that of Asia. The cost of moving a container between Accra and
Lagos is three times the cost of moving it to Europe. The role
for donors such as DFID is to help address these problems by encouraging
governments to increase public investment in infrastructure, and
to tackle the constraints to private sector participation, with
a focus on underserved markets and sectors.
30. Where properly regulated, the provision
of infrastructure by the private sector can lead to improvements
in efficiency, innovation, and the expansion of affordable services
to the poor. However the real issue for donors is not public versus
private infrastructure provision, but too little infrastructure
provision. Some developing countries do not identify infrastructure
as a priority for poverty reduction, partly due to the bad experience
of some privatisations in the 1990s and partly because the donor
shift towards budget support for poverty reduction has limited
the opportunities for expanding support to PSI.
31. Donors, individually and collectively,
could do more to encourage the private sector to develop infrastructure,
by: resisting the proliferation of new PSI facilities and scaling
up support to existing ones; increasing donor support to project
development; increasing focus on the infrastructure priorities
of poor people; increasing attention on the political economy
of PSI; increasing assistance to address the specific needs of
domestic small and medium scale service providers; and better
evaluating the impact of PSI.
32. DFID supports several multi-donor facilities
that help governments, where appropriate, to harness private sector
investment and participation in infrastructure, including:
— technical assistance to support policy
reform, improve regulatory systems and develop local capacity
(eg the Public Private Infrastructure Advisory Facility);
— the development of projects suitable
to attract private sector investors and partners (eg DevCo and
InfraCo);
— efforts to address credit and capital
market failures including loans—both hard and local currency,
and guarantees for high risk projects (eg the Emerging Africa
Infrastructure Facility, and GuarantCo); and
— performance-based subsidies to ensure
commercially viable projects reach the poor (Global Partnership
on Output-Based Aid).
33. In terms of leverage, DFID has spent
about £100 million over six years on these facilities, which
has mobilised $1.5 billion of extra investment in poorer countries.
DFID will do more to encourage private sector participation in
infrastructure by scaling up support to existing facilities, especially
in the area of project development where the intention is to treble
our commitment over the next three years. DFID will also be doing
more to help indigenous small and medium scale service providers
through these existing facilities. These initiatives will increase
employment opportunities and so have impact on poor people.
Improving the opportunities for PSD through International
Trade
34. Trade reform results in increased trading
activity by the private sector. In East Asia, for example, trade
reform has been one of the key ingredients of rapid economic growth
and poverty reduction during the past few decades. The 2004 DFID
White Paper renewed the UK's commitment to support reductions
in barriers to trade and to building the capacity of the private
sector in developing countries to take advantage of the new trade
opportunities.
35. The Doha World Trade Organisation Ministerial
Declaration in 2001 committed WTO members to offer Trade Related
Technical Assistance and Capacity Building (TRCB) to developing
countries to benefit from opportunities generated by the multilateral
trading system. TRCB assists recipient countries to:
— develop trade strategies and ICs
which are conducive to their private sectors increasing exports;
— stimulate trade by domestic firms
and encourage investment in trade-oriented industries; and
— participate in and benefit from the
institutions, negotiations and processes that shape national trade
policy and the rules and practices of international commerce.
Since 1998 DFID has committed £181 million
to TRCB.
36. As well as being a beneficiary, the
private sector has the potential to contribute to trade policy
reform. Private business can play an important advocacy role,
assist in the policy design process by providing expertise and,
through facilities like the Investment Climate Facility for Africa,
can even help finance expensive reforms (such as trade facilitation
or complex regulatory changes). Dialogue between the private sector
and government is desirable at all stages.
37. In our technical assistance and capacity
building work, DFID has been endeavouring to heighten private
sector representation and participation. For example, in the context
of our aid to enable trade facilitation, we are supporting meetings
of the Boksburg Group of developing countries at which private
firms and government officials discuss best options for multilateral
reforms. Also, as follow-up to the Commission for Africa, the
UK Government supported the creation of Business Action for improving
Customs Administrations in Africa (BAFICA), a small informal business
contact group on customs and trade facilitation reform.
38. In the context of our work with other
donors around the Integrated Framework for trade assistance, DFID
recognises that trade reform—while leading to large overall
gains—also involves winners and losers. The UK Government
has committed to provide £100 million per year in aid for
trade by 2010, whilst recognising that the Doha Development Round
requires much more progress than achieved in Hong Kong.
Making markets work better for the poor (MMW)
39. The "making markets work"
approach seeks to understand the impact of markets on poor people,
and to advocate and promote systemic changes which will improve
this impact. Markets affect poor people as consumers of goods,
as producers and employees, and for selling and buying goods and
services. Markets may fail the poor through market practices which
deny or limit access to poor people. In "making markets work"
terms, markets work well for the poor when they expand the choices
accessible to poor people, and produce outcomes which benefit
the poor.
40. For business support services, such
as accountancy, training, marketing, information and technology
advice, donors should work with developing country governments
to ensure programmes of support are focused as far as possible
on facilitating and catalysing the private sector itself to provide
business services on a commercial basis, rather than these being
provided on a highly subsidised, costly and unsustainable basis
by government.
41. Making Markets Work approaches challenge
donors to think about the systematic impact of their interventions
in terms of market distortion rather than enhancement. The state
has a vital role to play, especially where there are undeveloped
or missing markets. DFID is supporting market development programmes
in a number of countries, including South Africa (ComMark programme),
Nigeria (PropCom), Bangladesh (Katalyst), and Vietnam (Asian Development
Bank lead with DFID support).
C. THE PRIVATE
SECTOR'S
ENGAGEMENT IN
DEVELOPMENT
42. The private sector has a vital direct
role to play in development. As well as the need for more enterprise
to drive growth and poverty reduction, firms—through their
goods, services, general expertise and ways of doing business—play
a significant part in improving quality of life and supporting
development. This section will look at the ways in which companies
are working to support development by deepening and widening markets,
and by addressing key development issues which are influenced
by the ways businesses operate.
43. The private sector includes private
economic actors of all sizes—domestic and international,
small and large. Companies that are contributing to development
in ways that go beyond core growth and enterprise areas are often
larger businesses. However, companies of all sizes can contribute,
and government action can help to facilitate this. Businesses
can also contribute through joint approaches, both through national
business associations like Chambers of Commerce, or through international
initiatives, such as Business Action for Africa. DFID works with
business membership organisations, such as BAA, to jointly facilitate
the impact of the private sector on development.
Deepening and widening markets
44. Developing country markets are beginning
to be more attractive to small and larger companies, including
business to business activities, and business to consumer activities
such as so-called "bottom of the pyramid" approaches.
These approaches refer to the potential at the "bottom of
the pyramid"[6]
which comprises the 2 billion people worldwide living on less
than $2 a day, compared to markets that service relatively well
off people.
45. Bottom of the pyramid approaches argue
that there are significant market opportunities for companies
in providing the goods and services poor people need. Examples
include household goods such as soap sold in small amounts, financial
products such as cheap banking services, and potentially higher
value products such as low priced patented medicines.
46. Below we will look at a number of key
sector development areas that the private sector is increasingly
involved in: health; education; utilities; and financial services.
There is much that is relevant in the "bottom of the pyramid"
approach, as companies move to make products available to poorer
consumers. Expanding the private sector's role can be controversial,
for example in water privatisation. DFID, in collaboration with
other donors, supports governments reforming or privatising public
enterprises (see section on Public Sector Reform in the DFID &
Private Sector booklet). While DFID recognises that private sector
involvement is not always appropriate, businesses can play an
important part in the provision of basic services and achievement
of the MDGs.
Health
47. The private sector plays a significant
role in international health, including in the development and
delivery of medicines and other health products and provision
of health services. HMG has worked to encourage and support this
involvement, for example to incentivise private investment in
vaccine R & D and manufacturing capacity for vaccines for
diseases that disproportionately affect developing countries.
48. One key mechanism has been through global
health public private partnerships. These have been set up to
develop new medicines, drugs, vaccines or diagnostics relevant
to the developing world, or to increase access to existing health
treatments and diagnostics. The Global Fund to fight AIDS, TB
and malaria (GFATM), the Global Alliance for Vaccines and Immunisation
(GAVI), Stop TB and Roll Back Malaria all have significant private
sector involvement from pharmaceutical, diagnostics and health
commodity companies, as well as companies whose staff are affected
by disease and ill-health.
49. HMG has provided direct financial and
technical support to these partnerships. HMG has also developed
innovative financing proposals, including the International Finance
Facility for Immunisation that leverages finance from capital
markets to develop underused vaccines and to support the roll-out
of much needed vaccination programmes in developing countries
through GAVI.
50. As well as involvement in health partnerships,
the global research-based pharmaceutical industry is playing an
important part in making its medicines available in developing
countries. In March 2005 DFID jointly published with the Departments
of Trade and Industry and of Health Increasing people's access
to essential medicines in developing countries: a framework for
good practice in the pharmaceutical industry,[7]
containing recommendations for the industry (and clear commitments
by the government) to help to increase access to medicines in
developing countries. Since publication DFID has held a number
of meetings with the pharmaceutical industry to take forward recommendations
on increasing investment in research and development for diseases
disproportionately affecting developing countries, making medicines
more affordable in developing countries, and working in partnership
to support health delivery.
51. In developing countries the private
sector—formal and informal—is often the major provider
of health services. The public-private boundary is increasingly
blurred and there is great scope for greater private sector involvement
in healthcare provision. For instance, the private sector is increasingly
involved through contracting out delivery of district services
and family planning services. However, the private sector is often
poorly regulated and works outside government plans. DFID works
with governments to build capacity to plan and provide healthcare
and to work with and regulate the private sector.
Education
52. Governments have an essential role to
ensure that people have the skills they need to enter work, and
that there is an efficient labour market. In addition to a priority
focus on the primary education sector, DFID at country level has
supported vocational and other skills development programmes,
including in the area of youth employment. The DfES is also active
in Ghana on entrepreneurial training. The Youth Employment Network,
supported by the UK Government, brings together governments, youth,
employers and workers to tackle the challenge of youth employment.
This theme is also behind the DFID supported World Development
Report 2007 under the leadership of the World Bank.
53. Private sector institutions, as well
as charities and community groups, are significant providers of
education services in the poorest countries of the world. The
private sector is playing an increasing role, particularly in
large urban areas in Asia, where research suggests that they have
often been able to provide comparative quality education at a
lower per student cost than the state.
54. DFID has indirectly supported private
sector institutions, charities and community groups through multilateral
partners. Increased demand, particularly for secondary and tertiary
education in low income countries, which cannot be met by government
in the short to medium term, is being met with increased provision
by both for profit and not for profit organisations. In Pakistan,
for example, the World Bank encouraged sponsorship of community-supported
skills in Sindh province, and in Africa has adopted a similar
approach to supporting the African Virtual University. DFID has
also worked with the British Council in the Council's support
for private sector involvement in vocational education and training.
Utilities (Water, Sanitation, Energy, Telecommunications)
55. Despite progress in some countries,
public water and sanitation services are failing millions of poor
people. Significant further investment is required to provide
infrastructure and build capacity. In the main the public sector
is in the lead here, but the private sector is an additional source
of finance and technical expertise. The major constraint to the
private sector doing more is the lack of an enabling environment
to encourage investment. Many governments lack the capacity to
negotiate appropriate contract terms or to regulate the private
sector in a transparent and predictable way. DFID helps to build
capacity to manage and regulate the private sector where governments
ask for our assistance.
56. High profile public failures of large
water concessions have resulted in many international companies
regarding the risks as too high for limited returns. Whilst investment
by multinational companies has been declining, the domestic private
sector is proving of much greater importance, in particular small
scale providers which tend to reach those unserved by large utilities
(eg in urban slums). DFID increasingly focuses on working with
the domestic private sector, small scale and informal service
providers to encourage private sector involvement that is pro-poor.
57. Without reliable energy, economic growth
is constrained and individual health and livelihoods compromised.
As well as strengthening their own capacity to plan and operate
energy services, many governments are interested in harnessing
the resources and expertise of the private sector, including by
creating the conditions for attracting foreign and local private
enterprise. DFID is working with other donors, international financial
institutions and the private sector to coordinate initiatives
and pool resources to support large new investments. This includes
working through international multi-donor facilities such as the
Public Private Infrastructure Advisory Facility (PPIAF), which
helps governments to improve policies, laws, regulations and institutions
to better harness private participation in energy and other infrastructure
services.
58. Mobile telephony has been a great private
sector success story in development. At the end of 2003 there
were 6.1 mobile telephone subscribers for every 100 inhabitants
in Africa, compared with 3 fixed line subscribers per 100[8].
Research indicates a positive correlation between mobile phone
penetration and economic growth as consumers access information
on goods and services, and producers find better market information.
Finance
59. Financial exclusion is a major constraint
on development. This is dealt with under Section B above, but
it is important to note here that financial services companies,
including international banks, are increasingly looking at expanding
provision of banking services and other financial products to
poor communities, including in terms of microfinance. HMG has
been working with financial services companies on a variety of
issues, including microfinance, improving the flow of remittances
and provision of social Insurance.
60. The poor need to be insured against
life events and shocks which trap them in poverty. Private insurance
coverage in developing countries is very limited and many of the
poorest are excluded by unaffordable premiums. Governments, donors
and NGOs can subsidise the expansion of insurance to the poor.
The financial sector can also facilitate social assistance programmes,
such as cash transfers, where the private sector can be used in
delivery.
Private firms supporting key development issues
61. Private firms can have wider impact
through contributing to key development issues connected to their
ways of doing business. These include, for example: promoting
better public private dialogue; addressing corruption; working
to tackle the effects of HIV and AIDS; promoting environmental
standards; working to international guidelines on human rights
and sustainable development; and support for labour standards
and protecting human rights. The sections below illustrate where
HMG is involved in encouraging responsible ways of working in
and with the private sector.
Public private dialogue
62. Public-private discussions can help
governments design and implement reform strategies that lead to
accelerated economic growth. Constraints to effective dialogue
include lack of trust between government and the private sector,
limited government understanding of the private sector, and limited
representative capacity of business associations. DFID and other
donors have helped the private sector to engage more effectively
with governments through, for example, support to private sector
membership forums.
Corruption
63. Companies can have a negative impact
on development if they engage in irresponsible practices, notably
corruption. The World Bank estimates that corruption costs around
0.5% of global GDP each year. The UK Government encourages companies
to commit to relevant leading codes and initiatives on transparency
and corruption, eg the Extractive Industries Transparency Initiative
(see below), the UN Global Compact, and the OECD Guidelines on
Multinational Enterprises. Companies should ensure they have robust
anti-bribery systems in their corporate governance structures.
Also misuse of revenues from the private sector—sometimes
illegal— can fund conflicts and strengthen regional factions
at the cost of central government capacity and state-level stability.
64. The Government has taken a number of
steps to help fight corruption. The Anti-terrorism, Crime and
Security Act 2001 gave UK courts jurisdiction over bribery and
corruption committed overseas by UK nationals or private sector
bodies incorporated under UK law. The UK supports the UN Convention
Against Corruption (UNCAC), the first global convention designed
to tackle corruption. The necessary legislation to make the UK
compliant with UNCAC is now in place. We expect to formally ratify
it early in 2006. DFID also provides a wide range of support to
African countries working to tackle corruption. Both the Crown
Prosecution Service and the Serious Fraud Office provide assistance
to foreign authorities.
65. The Extractive Industries Transparency
Initiative (EITI) was launched by the Prime Minister in 2002.
A DFID-led partnership of leading oil, gas and mining companies,
NGOs and producing and consuming countries, it seeks to challenge
some of the problems associated with natural resource exploitation,
including corruption, by increasing transparency of payments from
extractive companies to governments and government-linked bodies.
By increasing public knowledge of revenue levels, it aims to empower
citizens and institutions to hold governments and companies to
account. 20 countries have endorsed the principles of EITI and
11 are currently at various stages of implementation.
HIV and AIDS
66. AIDS is one of the greatest global threats
to reducing poverty. The ILO has estimated that nine out of ten
people infected with HIV worldwide are adults in their professionally
productive prime. The work force is being severely depleted in
many countries through death or illness, and as people care for
sick relatives or attend funerals. The private sector has responded
in a number of different ways, led by large multinational companies.
For instance, Diageo has pledged to provide all HIV-positive staff
in Africa, and their dependants, with antiretroviral therapy (ART)
for life, whilst Anglo American has launched a partnership with
the Global Fund to extend prevention and treatment programmes
to local communities in South Africa. DFID is working with large
and smaller companies and business coalitions to promote the spread
of good practice.
Environment
67. The private sector can have a significant
effect on the environment. Responsible environmental and social
performance underwrites sustained economic growth, development
and poverty reduction, whereas poor environmental management can
exacerbate conflicts, poverty and corruption, and undermine development
efforts.
68. The poor are frequently affected by
companies' poor environmental performance. DFID supports the development
of public policy that encourages best practice and the safeguarding
of sustainable use of resources. The regulatory environment should
establish minimum performance standards, leaving market mechanisms
and co-regulatory measures to encourage improved resource efficiency
and environmental management. Engagement with World Bank-led guidance
for the private sector, such as through the Extractive Industry
Review, and IFC safeguard revisions, has encouraged improved environmental
performance. In addition, through its support for the World Bank-hosted
Communities and Small Scale Mining (CASM) programme, DFID has
helped develop environmental management guidance for small and
medium-sized enterprises, for example on mercury free-gold processing.
69. Another example of DFID's support for
better environmental management is the Illegal Logging Programme.
This works to challenge demand for illegally harvested wood products,
and supports industry's efforts to tackle the problem. Action
includes the adoption of a responsible purchasing policy by members
of The Timber Trade Federation, which specifies procurement of
legal timber, and a "trade roadshow" in West and Central
African countries where company to company discussions were facilitated.
International standards
70. There are a range of international guidelines
promoting responsible business and new ways of working. The UN
Global Compact was launched by Kofi Annan in July 2000. It is
a voluntary UN agreement where companies commit to uphold and
promulgate a set of ten principles covering human rights, labour
rights, environmental protection and combating corruption. There
are currently over 1,700 signatories to the Compact.
71. The Voluntary Principles on Security
and Human Rights (VPs) were developed by the UK, US, extractives
companies and NGOs and provide guidance to strengthen human rights
in extractives company security arrangements in many developing
countries. The OECD Guidelines for Multi-National Enterprises
are designed as a baseline for corporate behaviour to help multinationals
to design their own codes of conduct. The guidelines are voluntary,
but include a mechanism which allows individuals or organisations
to raise potential breaches of the guidelines with national governments.
72. The UK Government's objective is to
see UK businesses, operating at home and abroad, take account
of their economic, social and environmental impacts, and act to
address key sustainable development challenges wherever they operate.
The UK recently published an international strategic framework
to promote Corporate Social Responsibility (CSR), which aims to
set out the overall objectives and priorities for CSR internationally,
including a focus on practical measures.
Labour standards, decent work, and human rights
73. The UK Government supports the promotion
of the ILO core labour standards, as set out in the 1998 ILO Declaration
on Fundamental Principles and Rights at Work, which cover freedom
of association and the right to collective bargaining; the elimination
of forced and child labour; and the ending of discrimination in
employment. DFID provides direct support to the ILO's technical
assistance programmes such as its Special Action Programme on
Forced Labour.
74. Poor people should be able to participate
in decisions that affect their lives and it is important that
they have the freedom to organise themselves in associations which
promote their interests. Trade Unions can be vital advocates in
promoting human rights, core labour standards, and responsible
business. DFID encourages collaboration with free and democratic
labour organisations, and has recently launched a guidance note
for DFID country teams entitled "How to work with Trade Unions",
offering practical advice on working with local trade unions as
partners in development.
75. Whilst the primary responsibility for
enforcing international labour standards rests with government,
companies have a responsibility to ensure compliance in their
own operations and supply chains. Most poor people in developing
countries work in the informal economy, but international businesses
supply chains link with many small local enterprises, and this
can be a powerful influence for wider change. DFID promotes a
partnership approach to labour standards. DFID helped to establish,
and continues to support, the Ethical Trading Initiative. This
is an alliance of business, trade unions and NGOs, which works
to improve the labour standards of the workers in supply chains
of the corporate members by implementing a code of conduct incorporating
the ILO core standards.
76. Companies have a wider responsibility
to conduct their business ethically, particularly in relation
to human rights. Initiatives supported by HMG, which companies
also support, include the UN's Global Compact and the Voluntary
Principles (see above). The 2004 UN Commission on Human Rights
asked the Office of the High Commissioner for Human Rights to
compile a report on existing standards and initiatives, including
the UN draft Norms on the Responsibilities of Transnational Corporations
& Other Business Enterprises with Regard to Human Rights.
HMG believes more work is needed to identify a way forward and
has supported the appointment of a Special Representative of the
UN Secretary General to identify and clarify standards of corporate
responsibility and accountability for business with regard to
human rights, as well as an elaboration of the role of States
in effectively regulating and adjudicating the role of business.
D. AID MECHANISMS
TO SUPPORT
PRIVATE SECTOR
DEVELOPMENT
77. DFID has pioneered a number of mechanisms
to encourage private sector investors to be more involved in low-income
countries, and to stimulate the development of the private sector.
PSD is critical as the private sector has far greater potential
resources than donors such as DFID, in terms of finance, human
resources, and regional and international networks and presence.
Mechanisms used by DFID to promote private sector development
that are highlighted in this section include:
— Improving the policy and operating
environment for enterprises: in Africa primarily through the Investment
Climate Facility.
— Encouraging private sector and financial
sector innovation and investment in poor people in low income
markets—in the "base of the pyramid": through
challenge funds and investment fund mechanisms.
— Improving access to financial services,
including credit, transaction banking, and payments: through the
FIRST Initiative and country-level sector-wide programmes.
— Funding development finance institutions
specialised in PSD: for example the International Finance Corporation.
78. More could be done to incorporate the
private sector into the delivery of development, including through
building the capacity of domestic small enterprises. In fragile
and crisis-affected states, for example, where state delivery
capacity may be weak, private sector firms can be providers of
services, and the jobs created by the private sector are essential
for the livelihoods of those affected by crises. Mechanisms such
as poverty reduction budget support may not be appropriate in
such situations due to lack of state capacity, lack of political
will, or unacceptably high fiduciary risk, and private sector-specific
instruments may well have a role to play.
Poverty Reduction Budget Support
79. An important primary aid instrument
for DFID is Poverty Reduction Budget Support (PRBS), including
support through sector programmes such as in education and health.
Budget support is well suited to supporting macro stability (key
for the private sector to thrive), and potentially also to building
the capacity of government agencies to support PSD. There is,
though, a need to focus on the enabling environment rather than
just public expenditure, and to ensure that relevant ministries
are involved, eg Ministry of Trade as well as Education and Health.
Clearly budget support is not appropriate as direct private sector
support.
80. The OECD Development Assistance Committee
(DAC) joint evaluation of General Budget Support, which DFID leads,
will report in March 2006 and is testing, amongst other things,
the effects of budget support on growth and income poverty reduction.
Poverty Reduction Strategy Processes (PRSPs) have often not emphasised
the growth sector, but this is improving. "While only 60%
of the earliest PRSPs (14 of 25) noted a prominent role for growth,
this has increased to 80% (13 or 16) for the period July 2003
to June 2004. Over the last year all six new PRSPs have incorporated
growth as a central pillar in their strategies." (2005 Review
of the Poverty Reduction Strategy Approach—presented to
the World Bank Development Committee in September 2005)
81. A common feature of the growth strategy
in PRSPs is the primacy given to the role of private sector development
and improvements in the investment climate, including macroeconomic
stability. Sixteen of 21 PRSPs reviewed (by ODI) emphasized the
need to support SMEs, and fourteen emphasized the promotion of
foreign direct investment.
82. With regard to DFID country programming
more broadly, DFID Country Assistance Programme guidance does
signal the need to include the private sector in analysis and
dialogue to inform country strategies and programming choices.
The private sector is also an important area of analysis in "Drivers
of Change" studies.
83. DFID currently provides PRBS in only
16 countries. In most of DFID's PSA countries therefore, other
aid instruments will be more appropriate to encourage private
sector development. Even in countries where DFID does provide
PRBS, PSD can be promoted by other aid instruments that deal more
directly with the private sector, and with the institutions and
environment that supports its growth. This includes other financial
aid instruments, such as global funds, sector programmes and projects,
as well as non-financial aid instruments, such as technical cooperation
and policy dialogue. Some of these instruments used by DFID are
outlined below.
Investment Climate Facility
84. The Investment Climate Facility (ICF)
aims to facilitate the removal of real and perceived obstacles
to doing business in Africa. This will involve encouraging support
for change, working with governments to formulate business-friendly
policies and regulation, working with the institutions responsible
for administering regulation to improve their capacity and capability,
improving platforms for dialogue between government and business,
and improving the information and services available to governments
and investors.
85. The ICF is an independent trust with
strong African representation on the Board of Trustees. It is
managed according to business principles. The ICF will work with
African governments, regional organisations, donors, companies
and civil society to prepare and finance initiatives to improve
the investment climate at national, regional and at a continental
level.
86. The ICF has eight priority areas to
focus on (property rights and contract enforcement, business registration
and licensing, taxation and customs, financial markets, infrastructure
facilitation, labour markets, competition, corruption and crime).
In addition, a key part of the ICF's remit is to support the recommendations
that arise from the Africa Peer Review Mechanism (APRM) process
in relation to the investment climate. Activities funded under
the ICF are likely to include: research and analysis; legislative
review and reform; capacity building of institutions such as land
registries, company registries and commercial courts; pilot projects
(such as streamlined business registration systems); and facilitation
of better public-private dialogue.
Challenge Funds
87. Whilst improving the environment and
investment climate for business is seen as crucial, there is still
a vital role for a mechanism that can engage more directly with
the private sector, and stimulate or catalyse businesses to act
in a certain way that is pro-poor. The review and evaluation of
existing challenge funds over the past year has found that challenge
funds are an effective mechanism for doing so.
88. Challenge funds provide grants on a
competitive, transparent basis to the private sector, to stimulate
private sector development and leading edge innovation. Their
focus is to encourage pro-poor activity in sectors/products/markets
that would not have taken place without the public funding. Challenge
funds are particularly well suited to addressing situations—common
to much of Africa for example—in which the market is slow
and/or fails to deliver without public sector assistance.
89. The Financial Deepening Challenge Fund
(FDCF) is an example of a successful DFID challenge fund facility.
Its purpose is to improve access to financial services for poor
and previously excluded groups in Africa and South Asia. The fund
provided grants of £50,000—£1 million to private
sector firms, in a competitive and transparent manner, for project
proposals which met clearly defined criteria reflected in DFID's
priorities to improve access to financial services. FDCF had a
requirement for a leverage ratio of at least one, and in practice
was able to stimulate about twice as much private sector investment
as the amount of DFID grant funding. In Uganda, the FDCF supported
a leasing company to develop a new leasing product for small and
medium-sized enterprises. In Tanzania, the FDCF has supported
the development of a "smartcard" which enables customers,
including those who had not used banks before, to increase their
access to cash and to reduce their banking costs.
90. The Commission for Africa and the G8
(2005) deliberations highlighted that private enterprise is a
prime engine of growth and development. A number of initiatives
were recommended to boost economic growth, including an Africa
Enterprise Challenge Fund (AECF). The AECF has a target capitalisation
of $100 million over the seven years it is expected to be operational.
It is likely to focus on up to three sectors, for example financial
sector, agribusiness, and possibly one other. Based on the assumption
that average grants will be around $800,000, this capitalisation
should enable around 100 projects to be funded. The AECF will
be multi-donor funded. The fund will begin operations when at
least $50 million has been committed from donor funders. DFID
has committed £12 million in principle to the AECF.
Investment funds and initiatives
91. A leading instrument to help private
sector activity in poorer countries is CDC. Created as a PLC (public
limited company) from the former Commonwealth Development Corporation
in 1999, it was then extensively reorganised, with the bulk of
its operational capacity being de-merged into a new fund management
company called Actis Capital in 2004.
92. By investing in companies, Actis shows
that these businesses can be profitable and worthwhile, and then
private buyers can be attracted to acquire them. CDC's capital
is then released to reinvest elsewhere in a similar way. Through
this "demonstration effect", CDC is not only providing
direct benefits, from use of its own capital, but is also attracting
increasing flows of third-party capital to markets that desperately
need it. This mobilisation of capital for poorer countries is
arguably CDC's most important function.
93. Since the 2004 reorganisation, CDC's
total net assets increased from £982 million in 2003 to £1,494
million by 30 September 2005, and are forecast to reach £1,535
million by the end of 2005, well ahead of their business plan
budget. Over the period 2003-05, it is expected to have mobilised
nearly US$490 million (some £275 million) in third-party
investment in developing country markets.
94. DFID also supports a number of initiatives
to harness the role of the private sector in the financing and
delivery of public services, examples being the International
AIDS Vaccine Initiative and the African Agricultural Technology
Foundation.
95. The diaspora from developing countries
can be a significant source of financing, know-how and trade links
for developing country private sectors. Remittances to developing
countries in 2004 were estimated by the World Bank to be $126
billion, which is about two and a half times as large as net official
aid flows. The UK's outflow of remittances to developing countries
is estimated by DFID to be at least £2.7 billion in 2004,
which is not far short of the UK aid budget of £3.8 billion.
DFID has an active agenda to encourage remittance flows to low
income countries, and to make remittances more accessible and
less costly for poorer recipients.
96. The diaspora also have a role as investors.
The experience in countries as different as India and Sierra Leone
show that in certain circumstances, diaspora entrepreneurs can
become early risk-takers, because of their skills and resources,
their networks in their country of adoption and country of origin,
and their special motivation, not only driven by short term profit
but also by a long term vision mixing social and financial agendas.
This is dependent in large part on there being an investment climate
sufficiently favourable to allow for investment by diaspora. DFID
is exploring options for working in this emerging area.
Financial Sector Reform and Strengthening Initiative
(FIRST)
97. FIRST is a US$66 million multi-donor
programme, supporting capacity building and policy development
projects in the financial sectors in developing countries. More
specifically, FIRST provides technical assistance grants for short
and medium-term projects in the areas of financial sector regulation,
supervision and development.
98. DFID has committed £20 million
to FIRST over six years (2002-08) and is by far the largest donor
to the project; the other donors are the World Bank and the IMF;
the Canadian International Development Agency of Canada (CIDA),
the State Secretariat for Economic Affairs of Switzerland (SECO),
the Ministry of Foreign Affairs of the Netherlands (MFA), and
The Swedish International Development Cooperation Agency (Sida).
DFID currently chairs the FIRST Initiative.
99. FIRST has supported PSD in a number
of areas, including:
— helping develop domestic capital
markets that can mobilise and transform local savings in productive
assets;
— encouraging risk management mechanisms
such as insurance or capital markets that can help protect the
livelihoods and assets of the poor; and
— strengthening corporate governance
of banks, to shore up investor confidence.
Funding to development finance institutions
100. DFID's support to bilateral and multilateral
Development Financial Institutions such as the International Finance
Corporation, the Multilateral Investment and Guarantee Agency,
the European Investment Bank and the European Development Finance
Institutions (CDC for the UK), is also a central plank of its
PSD strategy. These institutions provide equity finance, debt
finance and guarantees to the private sector, and have a clear
role to play in supporting early stage investment phases, post-conflict
countries and fragile states, infrastructure financing and projects
that need patient capital.
PSD in Fragile States
101. Fragile states are an increasingly
prominent area of DFID engagement. The private sector can be both
a cause of fragility and a potential solution. For example, the
mismanagement of revenues from natural resource extraction can
fuel conflicts and corruption, but the creation of jobs and trade
links can underpin peace settlements and post-conflict reconstruction.
DFID has an emerging workstream on the private sector in fragile
and crisis-affected states, which seeks to improve DFID understanding
and programming
102. The following donor interventions have
helped the private sector contribute to stability and development:
large scale public works programmes in post-conflict situations;
micro-finance; remittance initiatives; community-driven development
projects; technical assistance to governments on legislation and
customs and tax regimes; one-stop shops for investors (simplification
of business regulation); financial sector restructuring; monetary
policy advice including currency and Central Bank reform; the
Extractive Industries Transparency Initiative (EITI).
103. DFID and other donors are exploring
the potential for building on this positive experience through
such aid instruments as:
— extending EITI to other sectors;
— including economic issues in peace-building
agreements;
— including the role of private and
financial sector in aid frameworks like PRS's;
— political risk insurance for private
investors (Multilateral Investment Guarantee Agency);
— reducing policy and infrastructure
barriers to remittances;
— strengthening the capacity of regulators
to introduce financial transparency and clamp down on abuses such
as money laundering;
— local content requests for donor
contractors (ie sub-contracting and capacity-building for local
firms);
— subsidisation of first investors
who generate positive externalities for others (eg the challenge
fund concept); and
— survey of investment constraints,
for example the recent World Bank-led Investment Climate Assessment
in Afghanistan.
104. DFID plans to produce a Policy Note,
building on lessons learned by DFID country offices and development
partners in fragile and crisis-affected states such as Afghanistan,
Sierra Leone and Somalia.
E. DONOR COHERENCE
IN PRIVATE
SECTOR DEVELOPMENT
105. At the international donor level, there
are a number of existing initiatives that bring donors together
in terms of policy and practice in PSD. At the microfinance level,
the Consultative Group for Assistance to the Poor (CGAP), is a
multidonor organisation based at the World Bank. On enterprise
development, there is the Committee of Donor Agencies for Enterprise
Development. Within OECD for the past three years there has been
a DAC group working under the title of PovNet, looking at private
sector, agriculture, and infrastructure policy around growth and
PSD specifically.
106. In addition to these wide groupings,
there are sector groups and various partner organisations in,
for example, microinsurance, agricultural research, and urban
infrastructure.
107. On the private sector side, a recent
development has been the coming together of the Business Action
in Africa group, arising from the private sector contributions
to the Commission for Africa process.
108. Within DFID, at the level of policy,
Policy Division's (PD) Growth & Investment Group works through
partnerships with other PD Groups, or sector-specific or geographical
departments, such as the International Financial Institutions
Department, and Africa Policy Department.
F. CONCLUDING
POINTS ON
DFID & PSD
109. "The primary responsibility for
achieving growth and equitable development lies with developing
countries .. and any approach to PSD should be grounded in the
realization that the savings, investment and innovation that lead
to development are undertaken largely by private individuals,
corporations, and communities"[9].
The UK Government agrees with this view, and is seeking increased
opportunities to encourage the interface between governments and
the development community, and the private sector itself.
110. DFID's Working with the Private
Sector to Eliminate Poverty highlights a series of guiding
principles in designing and implementing its programmes with the
private sector, so that DFID:
— acts as a catalyst and facilitator,
rather than intervening directly in market operations,
— recognises that partnership is the
best approach to development,
— collaborates with private sector
representatives in developing and implementing programmes,
— recognises that strengthening the
business environment impacts positively on all businesses,
— aims to understand the characteristics
of the countries in which we work,
— identifies more effective routes
for increasing the access of the poor to essential services, and
— holds to the underlying principle
that markets must be made to work for the poor.
111. DFID is committed to building on current
experience of working alongside the private sector through EITI
(on governance and transparency), large and international banks
(on remittances and access to finance), and in other sectors (infrastructure,
health, and others). Through encouraging private-public sector
partnerships at the domestic level, and co-operation at the international
level, the UK will look to contribute to private-public sector
initiatives such as Business Action for Africa and the Investment
Climate Facility for Africa, in addition to international groupings
active in private sector development.
112. Progress here will require strong institutions
and capable states. Strong institutions matter and their presence
largely explains the difference in growth performance between
different states. But it also requires an effective state to create
the right environment for PSD. Hence promoting PSD is one part
of the UK Government's agenda to work on contributing to and achieving
strong, stable, and successfully growing states.
March 2006
1 DFID & The Private Sector: working with the
private sector to eliminate poverty, DFID 2005. Back
2
DFID Pro-Poor Growth Briefing Notes. Back
3
Accelerating Pro-Poor Growth through Support for Private Sector
Development. OECD 2004. Back
4
Wealth of the Poor: Eliminating Poverty through Market and Private
Sector Development: Sida studies No. 14 2005. Back
5
Growth and poverty reduction: the role of agriculture. DFID 2005. Back
6
C.K. Prahalad, The Fortune at the Bottom of the Pyramid,
University of Michigan Business School, 2004. Back
7
Increasing people's access to essential medicines in developing
countries: a framework for good practice in the pharmaceutical
industry, DFID, DTI, and DH March 2005. Back
8
Moving the debate forward: Vodafone policy paper series,
March 2005. Back
9
UN Commission on Private Sector & Development: Unleashing
Entrepreneurship: Making Business Work for the Poor 2004. Back
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