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Private sector as catalyst for development

By Lars Thunell | China Daily | Updated: 2011-12-06 07:56

When experts gathered in Busan, South Korea, from Nov 29 to Dec 1, for the Fourth High Level Forum on Aid Effectiveness, the private sector, for the first time, had a seat at the table. This could be the turning point where we recognize the mutually supportive roles of the private and public sectors in promoting development.

Although the debate on the balance between traditional development assistance to the public sector and donor support of the private sector continues, multilateral and bilateral development banks have increased their financing of the private sector fourfold over the last decade, boosting their annual combined investment from $10 billion to over $40 billion.

Recently the International Finance Corporation, the largest multilateral development bank focusing on the private sector, coordinated with 30 other multilateral and bilateral development finance institutions on a study- International Finance Institutions and Development through the Private Sector - which found that public and private sector cooperation for development is a "virtuous circle".

Private sector as catalyst for development

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