Private Sector Development as Part of Strategy in International Development Essay

4176 WordsSep 25, 201317 Pages
------------------------------------------------- International cooperation and development Karina Grosheva “Role of the private sector in the development process” ------------------------------------------------- ------------------------------------------------- Table of Contents 1. Private sector in the development process 2. Raising transparency and attractiveness for investment activities in the developing countries * Lowering political risk * Building sound fiscal/monetary discipline and capital controls * Enhancing taxation policies * Enhancing access to capital markets and financing * Financing SME ------------------------------------------------- 1. Private sector in the development process The performance of the foreign aid programs implemented by World Bank and IMF over the past decade has shown positive results. The indicators used to measure these results include GDP per capita growthand a percentage of the population living below the extreme poverty indicator of 1.25 USD per day. But these programs still do not appear sufficient enough to achieve the Millennium Development Goals. In this paper I will not argue the optimistic approaches of increasing amount of the foreign aid but rather focus on the empowerment of small entrepreneurship and access to capital markets for larger businesses as alternative paths for the development. The proliferation of the democracy and trade liberalization undertaken in the last couple of decades in Africa did not build a strong foundation. The targeted poverty reduction programs were wiped out by food price shocks. The examples of the outstanding economic growth and poverty declines are usually caused by setting the market and business incentives or the intervention of the private sector. There is no better ways to help

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