The private sector and development are two sides of the same coin. Sustainable poverty reduction needs an efficient and dynamic private sector to unleash economic growth (pro-poor-growth): Private investments create new jobs, generate know-how and afford opportunities to earn income. A functioning private sector secures tax revenue, which is essential for providing various public services and maintaining a viable social welfare system. This is why Austrian Development Cooperation (ADC) aims to harness synergies between the private sector and development cooperation.

In Private Sector and Development, ADC adopts the following three approaches:

• Improving the framework for private-sector engagement in ADC partner countries
  At this intervention level, the concern is to frame the enabling economic, social and institutional environment for private enterprise. Central measures here are securing rule of law, fair rules for improving competitiveness and trade relations as well as infrastructure development.
• Direct private-sector promotion in ADC partner countries
  With the help of various instruments, the aim is to strengthen the market position of enterprises in partner countries, improve their information base and enable them to gain access to finance.
• Greater involvement of Austrian and European industry and commerce
  Successful economic relations between industrialised and developing countries make an important long-term contribution to improving the conditions of life for local populations. With its private-sector cooperation instrument , ADC provides support here. Another aim is to assimilate Austrian businesses better into the programmes of the EU’s common development policy.

The Private Sector and Development unit implements ADC objectives by promoting the economic activities of marginalised sections of the population, strengthening competition and trade in partner countries and supporting corporate social responsibility (CSR approach).