The major role of the private sector in developing countries is recognized by most countries in the developing world, donors and multilateral financial institutions. The importance of support to private sector development was confirmed in late 2011 through the Agenda for Change in the European Union and the Busan Partnership Agreement.
This broad consensus stems from a relatively straightforward line of reasoning: stimulating the private sector in developing countries generates economic growth there. And economic growth is, in turn, an important pillar in the quest for sustainable development and the fight against poverty.
Belgium supports various activities in this domain:
- In recent years the funding provided by the Belgian Investment Company for Developing Countries (BIO) has risen sharply;
- a dedicated budget line has been established, geared towards boosting companies’ capacity in developing countries;
- the Trade for Development Centre was founded in 2009, replacing the former Fair Trade Centre;
In addition, DGD funds activities designed to support the private sector in developing countries through government organisations, NGOs and multilateral cooperation.