News from 2020-06-16 / KfW Research, KfW Development Bank

How can the private sector contribute in fragile contexts?

Development in Brief

The topic of private sector development (PSD) is eliciting an increasingly positive response in international circles and among those involved in development policy. Although the private sector's role in reducing poverty has been widely recognised since the 1980s, the past decade has seen an increasing number of voices viewing PSD as the key to success, also in fragile contexts and areas affected by conflict. In its recently published strategy on “Fragility, Conflict and Violence (2020-2025)”, the World Bank also assigns private sector development a central role in its future work in such contexts. However, since PSD is still a comparatively young and complex development area, which has not been tried and tested much, there is a question around its potential to promote peace and reduce fragility and how this potential can be realised.

How can the private sector contribute in fragile contexts?