Private Sector Participation and Support of International Development Objectives

Francisco M. Hernandez


Discussions on private sector engagements to support international development has long been a challenging topic of discussion amongst international development actors, in part due to a lack of understanding on how private resources can be leveraged to support development objectives. Today, the methodologies and approaches to private investments show better linkages to market value chains and better meet the goals and objectives of all stakeholders. Though private sector efforts may vary in scope and reach, those private investments considered to be most successful share a common characteristic - a genuine understanding of community stakeholders’ needs and goals, and a thorough understanding of the business’s profit opportunities through the partnership. Sustainable economic growth and vitality require shared value partnerships to provide a value chain linkage at the intersection of community need, business profitability and market demand. As private sector participation is considered within a developing or emerging market, the coordination of investments and activities to create sustainable processes is central to economic growth. Organized approaches to meet the challenges faced by the development community increase the likelihood of success, and limit the risk of implementing unsustainable programs.

Keywords: Shared Value, Value Chain, Return on Investment, Development, Economic Growth, Private Sector

JEL Classification: I25, O11, O19, E24

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