International Finance Institutions and Development through the Private Sector

Publication | September 2011
International Finance Institutions and Development through the Private Sector

'Since the private sector generates most of the jobs, development institutions should focus on helping creating dynamic and sustainable private sector firms.'

- Lakshmi Venkatachalam, Vice-President, Private Sector and Cofinancing Operations, Asian Development Bank

The private sector is recognized as a critical stakeholder and partner in economic development, a provider of income, jobs, goods, and services to enhance People's lives and help them escape poverty. International Finance Institutions (IFIs) play a significant role in supporting the private sector in developing countries by encouraging entrepreneurial initiatives that help developing countries achieve sustainable growth. This role is becoming increasingly important for development institutions, along with more traditional aid and loan programs to governments.

This report is a joint effort of 31 multilateral and bilateral development institutions that have significant programs to promote private sector investment and assistance. The content benefited from an extensive interchange of ideas and materials among all participating institutions. The report was initiated under the sponsorship of the Private Sector Development Institutions Roundtable, which is an annual meeting of the heads of IFIs focusing on private sector development.


  • Preface
  • Executive Summary
  • Role of the Private Sector in Development
  • Role of the IFIs in Private Sector Development
  • Results and Case Studies
  • Conclusion
  • Annex: Profiles of International Finance Institutions with Private Sector Operations