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Email this citationCIAO DATE: 01/06
The Private Sector in the Fight Against Global Poverty
Lael Brainard
August 2005
Executive Summary
In recent weeks, aging rockers have reclaimed young fans by joining movie stars, faith- based groups, and leaders of developing nations in a global campaign to "Make Poverty History." World leaders have taken note: the push is on for a massive boost in official assistance flows and the cancellation of official debt. But as preparations move forward for the first heads of state stocktaking of the Millennium Development Goals at the United Nations in September, scant attention is being directed at the most powerful engine of growth and poverty alleviation: the private sector. This despite the fact that the past two decades have witnessed an enormous shift in resources away from the public sector to private hands, and private flows to developing countries are now more than twice the level of public flows.
With the IMF producing fresh evidence for the naysayers in the long-simmering debate on whether official aid boosts or retards growth, the search continues for the silver bullet that separates vibrant societies from those caught in a downward spiral. There is no magic ingredient, of course; growth requires a confluence of factors, from strong institutions and transparent governance to effective public investments and a stable policy environment. Add a vibrant, dynamic private sector to the mix, and a poor country might finally see a different destiny around the corner.
The 2005 meeting of the Brookings Blum Roundtable focuses concretely on galvanizing the private sector in the fight against global poverty and insecurity. Although a complete discussion of the subject is beyond the conference's scope, the roundtable will examine key issues from a variety of angles, commensurate with the many ways in which the private sector influences development.
