DIIS Policy Brief

Public Sector Strengths in Development Deserve Attention

Business Outreach Should Build on Agencies’ Distinctive Advantages

This policy brief argues that the expertise, networks, and convening role of governments are key assets in efforts to expand business involvement to promote sustainable development goals. In addition, development cooperation providers have the potential to adopt a systemic perspective that can contribute to improving the framework conditions in partner countries. These public sector advantages should provide a point of departure for partnership development approaches.

In many donor countries, the interest in expanding private sector engagement in development has increased in recent years. Denmark is no exception. The Danish government’s emphasis on the role of aid in providing seed capital to foster business engagement signals a need for shifting skill sets in the Ministry of Foreign Affairs to manage new cooperation approaches. As new initiatives to increase and improve private sector development contributions take hold, it is thus relevant not only to monitor project results but also the changes that the initiatives imply for aid management.

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Engaging with Business as a Partner for Development
Development agencies should not lose sight of their strengths