Working with the private sector as partners in development
The private sector is the driving force behind economic growth and is essential to achieving meaningful development outcomes that raise people out of poverty and put them on the road to prosperity. It is the primary source of economic growth, job creation, government revenue to finance essential public services, and the goods and services required to improve people’s quality of life.
Many developing countries are not fully benefiting from the opportunities that can be generated by a robust private sector. Developing countries often have weak domestic private sectors, and do not have sufficient tools and policies in place to encourage private-sector-led economic growth.
The potential benefits of private financial flows are not being maximized to contribute to economic and social development outcomes. A lack of capital and investment to grow businesses, a lack of private sector ingenuity to provide solutions to specific social and health challenges, and inadequate leveraging of private sector entities by development agencies and partner countries, limit the potential for private sector activity to create opportunities for people most in need.
For these reasons, the Government of Canada is helping developing-country partners create the conditions for strong and sustainable private-sector-led growth through its Sustainable Economic Growth Strategy. The strategy’s three paths—building economic foundations, growing businesses, and investing in people—target the main prerequisites to achieving poverty alleviation through private-sector-led sustainable economic growth.
In addition, the Government of Canada is leveraging local, Canadian, international and multinational private sector actors of all sizes as part of its efforts to promote private-sector-led growth in developing countries. Recognizing that private enterprises have an important role to play in achieving lasting development impact, the Government of Canada is committed to strengthening its engagement with private sector actors as partners to help reduce global poverty.
The opportunities for collaboration are compelling. Canada has more than four decades of international development experience in a variety of areas in which the private sector can bring unique skills, resources, innovation and know-how to bear. By working with private sector actors that adhere to responsible business and investment practices, along with non-governmental organizations, multilateral institutions, and partner countries, Canada can contribute to the creation of jobs, mobilize private investment, unlock innovative solutions to intractable development challenges, and deliver products and services that improve the lives of people in poverty.