Development Co-operation Directorate (DCD-DAC)

Private sector engagement in development co-operation

 

The OECD Development Assistance Committee (DAC) is developing approaches to increase private sector participation in development outcomes. The ambitious 2030 Agenda requires increased resources and innovation. Public actors leading development co-operation will need to engage with the private sector to be able to achieve the agreed goals.

The OECD-DAC is playing a key role to ensure that the private sector contributes to the delivery of the Sustainable Development Goals (SDGs). This includes leveraging private investment for the SDGs and improving the quality of this investment.

 APPROACHES AND TOOLS TO FURTHER PRIVATE SECTOR ENGAGEMENT 


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COLLATING EVIDENCE AND EXPERIENCE OF PRIVATE SECTOR ENGAGEMENT

The OECD-DAC provides policy guidance on areas of private sector engagement that could be further developed.  The peer learning review of working with and through the private sector reviews the approaches of DAC members in order to identify most effective best practice. These lessons will also complement thematic approaches of leveraging private sector participation in areas such as Aid for TradeGreen GrowthInfrastructure and local private sector development. Practical guidance is also being developed on financing instruments on financing instruments to leverage and engage the private sector through work on blended finance and social impact investing.

 

TRACKING HOW DEVELOPMENT FINANCE MOBILISES PRIVATE INVESTMENT 

The OECD DAC measures and monitors non-ODA financial flows, including instruments that engage the private sector, and their mobilisation effect. These efforts support both the peer learning and thematic streams by giving policy makers quantitative guidance when developing policies, strategies and budgets. Another major area of work is the development of a new measure called “total official support for sustainable development” (TOSSD) which will ensure private sector instruments and finance is more coherently part of the development finance landscape in the future.

 

BRINGING TOGETHER PUBLIC AND PRIVATE SECTOR ACTORS
To support this transition to new ways of working, the Sustainable Development Investment Partnership (SDIP) will demonstrate how to work effectively with the private sector, through work streams that will be used to inform policy settings on areas where knowledge and experience has not be effectively harnessed at the international level in order to bring best practice to bear. Private sector actors are also being engaged through ongoing partnerships such as the International Dialogue for Statebuilding and Peacebuilding.