Publication

This policy brief is directed at development finance institutions supporting private companies in developing countries and reviews what can be considered the three main debates or challenges of the role of the private sector in development cooperation. First it looks at the major debate on how to ensure the development effects of donor-supported domestic investment in developing countries. Then it considers the concept of private sector additionality in promoting development. In a third section, it looks at how to institutionalize the contribution of private companies to socioeconomic development. A final section presents some conclusions.