How the EU plans to get the private sector to 'play by the rules' of development. As the European Union continues its push for enhanced private sector involvement in its development work, many wonder whether businesses will agree to sacrifice part of their profit in order to meet development goals, or even just align themselves with EU aid objectives in partner countries.
EU Commissioner for International Cooperation and Development Neven Mimica certainly understands these concerns. In an interview on the eve of this week’s European Development Days, he stressed to Devex that involving the private sector is “crucial” to meeting the sustainable development goals, given “scarce” public resources that are “insufficient to finance all the investments needed in developing countries.” The collective resources of the private sector are “far bigger” than the development budgets of even larger donors like the EU and its member states, the commissioner stressed. But that doesn’t mean that business should just take over development efforts altogether. Call for ‘robust measures’ to prevent aid abuse in Africa.
Robust measures aimed at preventing Irish companies from becoming involved in human rights abuses in Africa are “urgently needed”, according to a report published today.
In recent years, the private sector’s role in international development, particularly through investment, trade and policy design, has increased and altered the traditional “aid” concept. However, concerns for conduct of business in Africa generally has led to calls for further clarity on how Irish activity can be overseen. A new report commissioned by Trócaire says that, given the increased emphasis on promoting Ireland’s economic interests in developing markets, “robust mechanisms for policy coherence for development and for the prevention of potential human rights abuses by private companies are urgently needed”.
Ireland and Africa: Our Partnership with a Changing Continent. Resource curse?
Business & Human Rights. CSOs and Business: Joint Agents for Change. Private profit for public good? - Eurodad. Donor governments and multilateral institutions have provided grants and loans to private companies operating in developing countries for decades.
However, since the 1990s the scale of this support has increased dramatically. In 2010 external investments to the private sector by IFIs exceeded $40 billion.