The Changing Development Order

The Millennium Development Goals, which expire in two years, established a successful framework for the world to address poverty, health, hunger, and education. As discussions commence on the post-2015 global development agenda, it would be helpful to rethink the private sector's role.

DUBAI – The Millennium Development Goals established a successful framework for the world to address fundamental social issues such as poverty, health, hunger, and education. As discussions commence on the shape and scope of the global development agenda that will succeed the MDGs, which expire in 2015, it would be helpful to consider the role of the private sector and rethink the international community’s overall approach to development.

Economic development is the best way – indeed, the only way – to achieve sustainable poverty reduction. It creates a virtuous circle. Growth creates jobs, and jobs reduce poverty.

The private sector has a key role to play. Private-sector capital flows now dwarf traditional public-sector aid flows. For example, of the $200 billion in total US resources dedicated to development in 2010, 87% came from private flows. By contrast, in the 1960’s, official overseas development assistance accounted for 70% of capital flows into developing countries.

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