The private sector is recognized as a critical stakeholder and partner in economic development, a provider of income, jobs, goods, and services to enhance people’s lives and help them escape poverty. Multilateral development banks and bilateral development finance institutions play a significant role in supporting the private sector in developing countries. They provide critical capital, knowledge, and partnerships; help manage risks; and catalyze the participation of others. They support the kind of entrepreneurial initiatives that help developing countries achieve sustainable economic growth. This role is becoming increasingly important for development institutions, along with more traditional aid and loan programs to governments.
The report is a joint effort of 31 multilateral and bilateral development institutions that have significant programs to promote private sector investment and assistance. The content benefited from an extensive interchange of ideas and materials among all participating institutions. This report was initiated under the sponsorship of the Private Sector Development Institutions Roundtable, which is an annual meeting of the heads of IFIs focusing on private sector development, and was coordinated by the International Finance Corporation (IFC).