Private sector development

Towards the effective reduction of poverty

Without real progress in many sectors of the economy, the goal of long-term poverty reduction is unattainable. The growth of the private sector nationally and of well-functioning markets in developing countries is therefore an effective means of improving people's living conditions, especially the poor.

But what is the private sector? It is a basic organizing principle for economic activity in a market-based economy. Physical and financial capital is generally privately owned; markets, competition and profit represent drive resource allocation and production. The decisions and risks taken by individuals and businesses are proportional to the benefits that can be derived from them.

Our contribution will take the form of supporting urban and rural economic and market development. The goal is to help a wide variety of enterprises and producers prosper, both in the informal and official sectors of the economy, and to encourage the creation and operation of cooperatives and small artisan industries.

By increasing their revenues and production capacities, small enterprises and cooperatives can create employment and help local populations become more independent. Moreover, a business environment that encourages initiative and rewards individual and group efforts allows men and women from developing countries to realize their full potential and to contribute to the well-being of their community.

We are endeavoring to increase the participation of women in economic decision-making and to support the creation of regional and national networks that generate market opportunities for producers and business people. In addition, all our private sector development projects take into account environmental sustainability.

Projects in Africa and Asia

Private sector development is still a sector of intervention that is in its initial stages among partners.

In Botswana , we support efforts to produce and commercialize products made by and for people who are hard of hearing.

In Sri Lanka , a country whose socio-political climate is precarious and that was hard hit by the tsunami of December 26, 2004, we are working to promote the development of new businesses, such as food processing in fishing communities, and to support the creation of business development and loan offices.