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Economic growth and employment
The topic of private sector development (PSD) is eliciting an increasingly positive response in international circles and among those involved in development policy. Although the private sector's role in reducing poverty has been widely recognised since the 1980s, the past decade has seen an increasing number of voices viewing PSD as the key to success, also in fragile contexts and areas affected by conflict. In its recently published strategy on “Fragility, Conflict and Violence (2020-2025)”, the World Bank also assigns private sector development a central role in its future work in such contexts. However, since PSD is still a comparatively young and complex development area, which has not been tried and tested much, there is a question around its potential to promote peace and reduce fragility and how this potential can be realised.
How can the private sector contribute in fragile contexts? (PDF, 38 KB, non-accessible)
Since the UN Conference on Financing for Development 2015 in Addis Ababa, there seems to be no doubt that the private sector plays a central role in financing the Sustainable Development Goals. However, in order to mobilise the resources required from the private sector, an enabling business environment needs to be created, including incentives for investment.
The current issue of Development in Brief discusses by which means an enabling business environment can be achieved in developing countries and highlights the support which can be provided by development cooperation.
The importance of a good business environment for a thriving private sector
In the past, the problem of youth unemployment was primarily viewed as an urban phenomenon, meaning that strategies designed to tackle this problem were mainly focused on urban areas. Only lately, most recently at the G20 Conference on the future of rural areas, has there been more consensus that an important part of the cause of unemployment can also be found in rural areas and measures to stimulate rural job creation can therefore play a key role in solving the problem.
The current issue of Development in Brief summarises the state of the debate, describes the close correlations between rural and urban youth unemployment and outlines potential approaches to solving the problem in rural areas.
Solutions to youth unemployment: rural areas are just as important as cities
The financing of small and medium-sized enterprises is traditionally a significant focus of German Financial Cooperation (FC). At present, it represents 40 % of the total financial-sector portfolio in FC and so plays by far the greatest role ahead of micro, as well as energy and environmental financing (27 % and 18 % respectively of the total volume). There is also considerable general interest in this sector, because of its major significance in terms of the development and stabilisation of national economies.
PDF for download:
SME Financing: Successful Cornerstone of Financial Cooperation (PDF, 648 KB, non-accessible)
Decent employment and income are key to sustainable development. Therefore, the promotion of decent jobs is a direct or indirect target of many projects of German development cooperation. With a strong focus on impacts, the assessment of employment effects of projects is becoming even more important.
PDF for download:
Employment Effects of Financial Cooperation: Results of an Estimation Model
Decent employment and income are key to sustainable development. Therefore, the promotion of decent jobs is a direct or indirect target of many projects of German development cooperation. With strong focus on impacts, the assessment of employment effects of development cooperation projects is becoming even more important.
PDF for download:
Employment Effects of Financial Cooperation: An Estimation Model
