Private Sector Engagement for Sustainable Development

Lessons from the DAC

image of Private Sector Engagement for Sustainable Development

Members of the OECD Development Assistance Committee (DAC) are increasingly working with the private sector in development co-operation to realise sustainable development outcomes. To learn from this experience, the DAC introduced a peer learning review on working with and through the private sector in development co-operation. Private Sector Engagement for Sustainable Development: Lessons from the DAC examines the politics, policies and institutions behind private sector engagement, the focus and delivery of private sector engagements, private sector engagement portfolios, effective partnership and thematic issues including risk, leverage and ensuring results. Drawing on the practical experiences of DAC members, the report highlights good practice, provides a typology of private sector engagement and outlines key lessons. It highlights the importance of aligning private sector engagements to overall development co-operation strategies and aid effectiveness principles. It also looks at investing in institutional capacities, developing a suite of flexible mechanisms for private sector engagement, and adopting appropriate systems to monitor, evaluate and report on the results of partnerships with the private sector.

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Focus and delivery of private sector engagement strategies in development co-operation

This chapter examines the focus of private sector engagement strategies and their delivery. It begins with a discussion of the difficulties related to capturing a full picture of private sector engagements in development co-operation. DAC members target countries eligible for official development assistance (ODA) or focus on specific target countries in their private sector engagements. They also tend to target economic infrastructure and services as the top sector for engagement. Though private sector engagement is possible in all countries and sectors, the review revealed the importance of aligning the geographic and thematic focus of private sector engagements with overall strategies for development co-operation. This approach ensures coherence across development co-operation programming and ensures that donors have the necessary expertise and resources to effectively engage with partners. To ensure effectiveness and relevance, private sector engagement tools should be catered to country type and context.


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