Content

Business

Workers in Mexico producing a car body. Copyright: Photothek.net

Supporting the private sector –
reducing poverty

Background: Everyone benefits from successful cooperation

Solving the social, ecological and economic problems faced by developing countries is a challenge that cannot be met by the state alone. What is required is intensive cooperation between all sections of society. Governments, civil society and the private sector must assume joint responsibility and take concerted action. Private sector companies wield major influence over the globalisation process. They play a key role in helping shape the social and cultural environment, as well as the conditions under which work, production and consumption take place. Their engagement and creativity also generate results in areas where the state wields barely any influence for political, economic or logistical reasons. This is why they are essential partners for German development cooperation.


Development policy with a profit – development partnerships with the private sector

An alliance between development policy and the private sector with mutual benefits - is that possible? The idea works, and has been tried and tested. Since the PPP Facility was launched in 1999, more than 3,000 such arrangements have been established worldwide. In these development partnerships the state and private companies cooperate as equals. Both expect to benefit from the partnership, and both meet their share of the costs of implementing the projects.


Chambers and business associations – identifying joint strengths

Dialogue between governments and the private sector is a key element of development cooperation. Both parties can benefit from this process and bring their own experience and knowledge to bear. Trade associations, chambers of crafts and other professional associations are partners of German development policy. They can make a big contribution at local level to improving the economic climate.


Promoting Corporate Social Responsibility

Through its business activity any enterprise affects the conditions under which its staff live and work, as well as affecting its clients, the natural environment and the economic environment. In today's modern setting, the responsibility that goes along with this is an important corporate policy issue. Corporate Social Responsibility forms part of the vision of sustainable development on which German government policy is based. To build frameworks for action together with the private sector and improve people's lives in developing countries, BMZ supports private-sector engagement for sustainable development.


Further information

The following list contains links to a selection of documents and websites with further information on cooperation with the private sector.



Service-Links & Content-List

BMZ glossary
Close window