Content

Business

Student in a metalwork class in Ethiopia funded by the humanitarian organisation Menschen für Menschen'. Copyright: Photothek.net

Sustainable economic development

Background: Sustainable economic growth –
a challenge for all

Broad-based economic growth is an important precondition for successful poverty reduction. That growth creates job opportunities that help the poor safeguard their livelihoods through their own efforts. Another important prerequisite is that growth processes generate positive effects that are not only temporary, but also long-term. Growth must be economically, socially and ecologically sustainable.

more

Economic policy: Creating a good environment for development

To stimulate economic growth and fight poverty in the long term, governments must create a condu­cive environment. This includes providing the private sector with sufficient opportunities to unfold its entrepreneurial potential. A good business climate can strengthen local companies' investment activities and attract international capital and know-how. Other key factors include the degree of macroeconomic stability, the political, legal and regulatory frameworks that are in place, and the quality of governance.

more

Promoting private businesses

Private businesses play a vital role in economic development. The private sector is usually the most dynamic economic sector, both in industrialised countries and in developing countries. In view of the worldwide downward trend in the number of public-sector jobs, new jobs are being created almost exclusively in the private sector.

more

Financial system development: Financial services for all

The financial system is the backbone of every economy. Its ability to perform and its stability are key to economic success. And it is often those sectors which are particularly crucial to economic success that lack sufficient access to financial services: agriculture, local government, and small and medium-sized enterprises. Against the backdrop of the global economic and financial crisis, stabilising financial systems has become an important development goal.

more

Perspectives: Vocational training and labour market

In order for their economy to be able to face the global competition in the long run, developing countries urgently need a trained workforce. In most cases, though, existing vocational training systems do not yet meet the social and economic requirements. The training is not good enough, many curricula are outdated and not very geared to practical needs; many countries also lack the necessary infrastructure.

more

Fighting unemployment and underemployment

Unemployment and underemployment are among the most serious development problems many developing and transition countries face. They are the direct cause of the poverty suffered by many population groups. Since 2008 the global financial and economic crisis has led to a sharp increase in unemployment and to the displacement of many regular jobs into the informal sector. According to figures published by the International Labour Organization (ILO), around 212 million people worldwide were unemployed in 2009. Youth and women are disproportionately affected by unemployment.

more

Further information

The following list contains a selection of links to documents and websites with further information on sustainable economic development.

more


Service-Links & Content-List

Ministry

What we do

Press room

Publications

Services

BMZ glossary
Close window

Facebook Twitter MySpace Favorites Mister Wong Google