- Knowledge base
- Policy question
A new report, Private Sector Engagement for Sustainable Development: Lessons from the DAC was recently published by the Organisation for Economic Co-operation and Development (OECD). Despite presenting important and relevant reflections on working with and through the private sector to achieve development objectives in four member countries, the report does not adequately recognize that supporting the private sector through Official Development Assistance (ODA) should go beyond promoting (Global North) investments in developing countries. Consequently, this is yet another report about the private sector in development that fails to include the perspective of the private sector in and from the South, making it another case of ‘talking about them, without them’.
The Organisation for Economic Co-operation and Development (OECD) recognizes that Development Assistance Committee (DAC) member countries are increasingly developing partnerships with the private sector to achieve development objectives. The new report, Private Sector Engagement for Sustainable Development: Lessons from the DAC, published late November 2016, aims to identify good practices and lessons learned when working with and through the private sector from four DAC countries: the Netherlands, Germany, Finland and USA.
The report is not ground-breaking, as the role of the private sector in development has been recognized and practiced by many countries, including the Netherlands, for decades (see for e.g. Kazimierczuk 2015). Some earlier publications have also reviewed and compared policies linking development assistance with private sector development (see for e.g. Bieckmann, F. (2013) and Magnetti, P. (2013)). However, the fact that the OECD is highlighting the role and importance of the private sector in development cooperation is an important signal to the international community that it is time to take this issue more seriously. Moreover, the report addresses a number of very relevant issues:
Despite addressing these issues, the OECD report has failed to include the voices of the private sector, particularly from the private sector in and from the South. Furthermore, the report does not provide space to discuss failures of the private sector development policies. At this stage, assuming that all activities of the private sector are beneficial is rather naïve, as some practices have already been proven harmful. Very solid and clear regulations that enforce sustainable and inclusive business practices on national and international levels are extremely important, yet this issue is given no urgency in the report.
Furthermore, the report ignores the fact that promoting private sector through ODA should be more than merely promoting (Global North) investments in developing countries. We need to move a step further and ensure clear development outcomes that are feasibly linked to international and national poverty reduction strategies. For this purpose, greater attention must given to the following:
To conclude, the OECD succeeded in reminding the international community that the private sector has played an important role in development and if adequately regulated, can positively contribute to achieving development objectives. However, the voice of the private sector, especially the private sector in and from the South, is blatantly missing. Are we not yet fed up of constantly ‘talking about them, without them’?
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ISSC, the Institute of Development Studies (IDS) and UNESCO
U Rösler, D Hollman, J Naguib, A Oppermann and C Rosendahl