Private Sector Engagement Provided by Emerging Economies

The promise and potential of private sector engagement (PSE) in activities supported by development cooperation has garnered significant interest and importance. This recent salience mirrors the broad recognition that key international agreements – such as the 2030 Agenda – necessitate efforts and contributions beyond what governments alone can provide. Nonetheless, PSE through development co-operation provided by emerging powers has had a long and rich history; one that has been characterised by complex cooperation modalities that are driven by a number of objectives. However, despite this long-established practice there exists a clear lack of evidence on, and understanding of, PSE supported by emerging economies. In addressing this gap, the purpose of this paper is threefold. First, it proposes a typological framework to conceptualise how emerging economies support PSE in partner countries through development co-operation. Second, it explores how stakeholders regard issues related to the effectiveness of PSE at the country level. Third, based on the framework and these findings, it concludes with a set of key issue areas that are pertinent concerning the effectiveness and impact of PSE by emerging economies.