CIDA-IDRC International Forum Bringing The Best Of The Private Sector to Development

1
CIDA-IDRC International ForumBringing The Best
Of The Private Sector to Development

Presentation by Nissim Ezekiel Montreal June 7,
2004
2
UNLEASHING ENTREPRENEURSHIPMaking Business Work
For The Poor

Report to the Secretary-General of the United
Nations March 1, 2004
3
ACTIVITIES SUPPORTING PRIVATE SECTOR DEVELOPMENT
Targeted at public sector players
Targeted at private sector players

• Setting broader standards (industry norms,
  corporate governance, sustainability)
• Lobbying for policy changes
• Promoting participatory process through social
  dialogue

• Business linkages and partnerships
• Investment, including foreign direct investment
• Mentorship for entrepreneurs

• Led by private sector players
• Companies
• Civil society organizations
• Foundations

• Led by public sector players
• Developing country governments
• Donor governments
• Development institutions

• Policy reform
• Policy advice
• Funding and delivering technical assistance
• Financial transfers (aid, loans)

• Public-private partnerships
• Public-private consultative bodies
• Privatization or contracting
• Investment promotion
• Direct business development services
• Direct financing

4
COMPONENTS OF THE PRIVATE SECTOR SEEN AS AN
ECOSYTEM
Domestic private sector ecosystem
Large Domestic Enterprises
MultinationalCorporations
Cooperatives
Small-MediumEnterprises
Microenterprises
5
SMEs BECOME MORE IMPORTANT AND INFORMALITY LESS
IMPORTANT AS COUNTRY GDP INCREASES
Source Meghana Ayyagari, Thorsten Beck, and
Asli Kunt, Small and Medium Enterprises across
the Globe A New Database (2003)
6
DETERMINANTS OF THE ENABLING ENVIRONMENT
Private Sector Growth

Pillars of entrepreneurship too often missing
Level playing field
Access to financing
Access to skills know-ledge
Rule of Law
Foundations of the private sector not yet in
place
Physical and social Infrastructure
Domestic macro environment
Global macro environment