Private Sector Development

Operational Priorities

ADB pursues private sector development in four operational priorities

1. Governance in the public and private sectors, including privatization of state-owned enterprises
2. Financial Intermediation, through financial sector reform, promotion of long-term capital markets, local currency financing, and support for small- and medium-sized enterprises
3. Public-Private Partnerships in physical and social infrastructure, as well as agricultural and rural sector development
4. Regional and Subregional Cooperation to support inter-developing member country cooperation toward common goals

Governance

Effective governance is essential for the encouragement of private sector investment. ADB supports effective governance in the public and private sector through

• public sector governance reforms
• commercialization and private sector participation
• corporate governance initiatives

View ADB's Governance website.

Top

Financial Intermediation

Well functioning financial systems are critically needed to promote private sector participation. Many developing member countries (DMCs) need to increase their capacity to provide adequate financing for private sector-led growth. In particular, they need to strengthen their financial institutions and create diversified financial markets.

We facilitate effective financial intermediation through development of

• financial institutions and markets
• local currency financing
• investment funds
• small- and medium-sized enterprises

Top

Public-Private Partnerships

Public and private sector activities should complement each other in the overall development effort of our developing member countries. Forming effective public-private partnerships can lower the risks and costs associated with investments. We proactively promote such partnerships in

• physical infrastructure
• social infrastructure
• agricultural and rural sector

Top

Regional and Subregional Cooperation

Regional and subregional cooperation has emerged as an increasingly important development strategy in Asia. A key area of involvement for ADB, regional and subregional cooperation involves encouraging specific linkages of complementary activities across borders to create a region or subregion of economic growth.

ADB concentrates on facilitating investments in subregional infrastructure projects that provide essential means for trade and investment linkages. For investors, such projects represent new types of business opportunities - and new types of risks: their transborder nature requires appropriate mechanisms to support project preparation and financing.

We prepare and finance subregional projects that involve private sector participation, and assist in risk management by helping address nonphysical barriers to the movement of goods, services, and people. Examples include initiatives related to trade and investment facilitation, and cross-border training and standards certification and accreditation.

In addition, we serve as a center of excellence and clearinghouse for information and ideas on subregional cooperation at the policy, program and project levels.

Visit ADB's Regional Cooperation website.