The private sector is a major driver of economic growth. This alone, however, is not enough to reduce poverty throughout an entire population. That is why Austrian Development Cooperation (ADC) always pays attention in its programmes and projects to the pattern of growth. It aims to make sure that improvements and gains benefit underprivileged sections of the population above all.

Women’s empowerment

Creating income opportunities brings about a sustainable improvement in the conditions of life for poor sections of the population in ADC’s partner countries. Above all, enabling women to gain access to the market and resources and hence to monetary income can save whole families from poverty, because women in particular often work in the subsistence economy and perform unpaid work.

Benefits of tax revenue

Higher tax revenue for the government is another benefit of private sector development. Primary education or health care for all are expensive to implement and call for public investments. To harness synergies between the private and public sector in the best possible way, Austrian Development Cooperation also supports business partnerships. Together with commercial enterprises, infrastructure is provided for energy and water supply in ADC partner countries, for example.

From an idea to a business

In ADC partner countries, starting up a business is often the only way to earn money, but it is not easy to get a commercial idea off the ground on the free market. That is why ADC’s main target group are micro, small and medium-sized enterprises (MSMEs). By increasing legal certainty, introducing labour market or fiscal legislation and other measures, ADC helps create an enabling environment for small entrepreneurs. Projects and programmes impart know-how on business management and the efficient organisation of production processes. In addition, ADC facilitates access to financial services for small entrepreneurs and everyone in need of seed capital to put their ideas into practice.

Value Chain Development

The ability of small enterprises to compete in (global) markets depends on their inclusion in local and regional networks and clusters. Hence, ADC supports the development of value chains in our partner countries that generate income opportunities and jobs for local entrepreneurs.

Regional and global trade

A global partnership for development (MDG 8) is only possible in an open, global trade and financial system based on rules. A major contribution to attaining this goal is cooperation between global institutions (WTO, UNO, ILO, etc.) and entrepreneurs and private sector lobbyists. Besides rules for cross-border transactions, transport and telecommunications, there is also a need for norms and standards for environmental protection, intellectual property, adequate working conditions and respect for human rights. Austrian Development Cooperation thus supports entrepreneurs and non-governmental organisations in partner countries so that they can voice and put forward their interests and concerns. This is the only way to ensure that everyone benefits from globalisation through fair trade relations and to achieve the Millennium Development Goals.