A thriving private sector that provides decent jobs and generates revenue is an essential component of a successful development strategy. International donors are currently very interested in increasing aid to the private sector, whether to build it, leverage support, deliver projects or a combination of all three. But is all aid to the private sector appropriate, and if yes, is it being delivered effectively, reflecting international aid agreements?
Lack of transparency around aid devoted to the private sector, and particularly around the building and leveraging strategies makes it hard to evaluate the amount of money given to the private sector and its impact. This discussion paper tries to shed some light on this issue, identifying the different roles the private sector play in development and development cooperation while identifying some initial recommendations so as to make this aid more effective.