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Development Co-operation Report 2016

The Sustainable Development Goals as Business Opportunities

image of Development Co-operation Report 2016

The face of development has changed, with diverse stakeholders involved – and implicated – in what are more and more seen as global and interlinked concerns. At the same time, there is an urgent need to mobilise unprecedented resources to achieve the ambitious Sustainable Development Goals (SDGs). The private sector can be a powerful promotor of sustainable development. Companies provide jobs, infrastructure, innovation and social services, among others. Increasingly, investments in developing countries – even in the least developed countries – are seen as business opportunities, despite the risks involved. The public sector can leverage the private sector contribution, helping to manage risk and providing insights into effective policy and practice. Yet in order to set the right incentives, a better understanding is needed of the enabling factors, as well as the constraints, for businesses and investors interested in addressing sustainable development challenges.

The Development Co-operation Report 2016 explores the potential and challenges of investing in developing countries, in particular through social impact investment, blended finance and foreign direct investment. The report provides guidance on responsible business conduct and outlines the challenges in mobilising and measuring private finance to achieve the SDGs.  Throughout the report, practical examples illustrate how business is already promoting sustainable development and inclusive growth in developing countries. Part II of the report showcases the profiles and performance of development co-operation providers, and presents DAC statistics on official and private resource flows.  

 

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Engaging the private sector in development co-operation: Learning from peers

Official development assistance is increasingly being delivered with and through the private sector. Valuable lessons are emerging from these experiences. The OECD’s Development Assistance Committee (DAC) has recently launched a survey and peer learning exercise with its member countries to tap into these experiences and identify good practice. Many insights are emerging already from the survey and the first three reviews – of Germany, the Netherlands and Sweden. These include the value of private sector partnerships beyond their financial contribution, and the critical importance of investing in in-house capacities and expertise to successfully develop and manage partnerships with the private sector. The final synthesis report will identify best practices and lessons to help all DAC members refine their engagements with the private sector, including appropriate tools and partnerships to leverage private sector resources and enhance development impact; and measuring and evaluating results, impact, additionality and the catalytic effect of private sector engagements.

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