Private-Sector Engagement (PSE): Deepening the Roles of Private Sector in Tackling Development Challenges

Changes in the global development context have increased the alignment of interests between the private sector and development actors. On their own, donor agencies are unable to fulfill their goals for sustainable development. There is growing recognition within the private sector of the need for, and benefits of, investing in the developing world. At the same time, governments are expanding efforts to diversify their economies and connect with capital for investment. In addition, the increasing scale, length, and frequency of disasters and conflicts around the world means that humanitarian actors alone can no longer address the complex needs of crisisaffecting people. The confluence of these trends provides a watershed opportunity for development agencies such as USAID, their partner governments, and civil society to increase collaboration with the private sector to support countries on their Journey to Self-Reliance. To capitalize fully on this opportunity and reach their goal - ending the need for assistance - it is imperative that they increase and deepen collaboration with the private sector.