Brussels, 14/05/2014 (Agence Europe) - The European Commission believes that the role of the private sector as a driving force for economic growth and creator of around 90% of jobs in developing countries, should be strengthened in an effort to guarantee inclusive development in EU partner countries. The new communication on the private sector the Commission adopted on Tuesday 13 May, calls for the EU to develop a framework for strategic action to guarantee that private-sector activities in developing countries have a positive impact on the whole of society, particularly women, young people and the poorer sections of society.
Development Commissioner, Andris Piebalgs, said that the challenge was ensuring that businesses find an enabling environment to invest more, and more responsibly, in developing countries to help everyone enjoy the economic opportunities which the private sector can bring.
Piebalgs is therefore proposing: - 12 concrete actions in order to improve regulatory business environments in partner countries, support business development and increase access to finance with a focus on micro, small and medium-sized businesses in the formal and informal sector (currently 60 to 80% of companies in developing countries are informal enterprises); - actions in the sustainable energy field, sustainable agriculture, infrastructure and the green sectors, where private sector engagement can effectively complement and add value to EU development assistance, including through the use of blending (combining grants and loans); - promoting responsible investment in developing countries, sustainable trade or inclusive investment into low-income markets are also highlighted as a key priority to maximise private sector positive impact on development; - increased EU support for raising productivity and working conditions in the informal economy and help countries move to a formal economy, where possible. This could be done through the provision of training and expertise to informal support organisations, such as producer associations, or contributing to a safer working environment and easier access to markets, finance, infrastructure and social services.
The Agenda for Change adopted in 2011 sets out new guidelines and EU development aid priorities. It recognises that the private sector is an essential partner in development policy. (AN)