Pro-poor growth

Pro-poor growth and the private sector

Private sector development is an important engine of growth. Indigenous business, especially small to medium sized enterprises (SMEs), are important if growth is to be effective at reducing poverty. These publications look at the conditions for successful improvement in the policy and legal environment for such businesses.

OECD, 2004, ‘Accelerating Pro-Poor Growth through Support for Private Sector Development. An Analytical Framework’, Organisation For Economic Co-operation and Development, Paris
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White, S. and Chacaltana, J., 2002, ‘Enabling Small Enterprise Development Through a Better Business Environment: Donors Experiences in Supporting Reforms in Business Environment’, Committee of Donor Agencies for Small Enterprise Development Working Group on Enabling Environment, Technical Document, World Bank, Washington
Over the past decade, international donor agencies have placed greater emphasis on supporting reforms to enable the development of small and medium-sized enterprises (SMEs). However, there is still little co-ordination of their work. This report from the Committee of Donor Agencies for Small Enterprise Development reviews recent experiences in an attempt to define best practice and to identify areas for potential co-operation and further research.
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This report reviews donor practices for encouraging better business environments for SMEs, and identifies the conditions which have led to success in this area of donor policy.

Mbeki, M. 2005, ‘Perpetuating poverty in Sub-Saharan Africa: how African Political Elites Undermine Entrepreneurship and Economic Development’. International Policy Network, London
Most countries in sub-Saharan Africa have experienced declining growth and increasing poverty since independence. This can be attributed to Africa’s political elites, who have driven their economies backwards by misusing their countries’ economic surplus. This paper published by International Policy Press examines the consequences of the exploitation of the state by Africa’s political elites. It argues that a vibrant private sector is essential for economic growth, but the development of entrepreneurship is constrained by Africa’s political elites.
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