Africa: EU Governments Fixation With Private Sector Could Compromise Commitment to People in Poverty Today EU Development Ministers agreed to boost the role of the private sector in development cooperation. Leading international NGOs ActionAid, Eurodad and Oxfam recognise the important role businesses can play in reducing poverty, but argue that placing the private sector at the centre of EU development policy shows ministers have failed to acknowledge its limitations. The NGOs are reacting to the EU Council Conclusions on A stronger role of the private sector in development cooperation: An action oriented perspective published today. EU governments are essentially giving the green light to increase practices such as using public money to leverage private finance. Hilary Jeune, Oxfams EU policy advisor, said: The private sector has an important role in helping to lift people out of poverty but we are worried EU governments are only seeing the good side of possible engagement. Development ministers seem charmed by the prospects of private finance flows and have failed to provide guarantees that ensure businesses will play by the rules and that their investment will benefit the poorest in society. Laura Sullivan, ActionAids European Policy and Campaigns Manager. said: Europe needs to invest more in the smallholder farmers and small and medium sized businesses that generate the kind of jobs needed to raise people out of poverty for good. Smallholder farmers are the real backbone of the private sector in Africa and the potential driving force behind lasting development that champions the poorest over the clamour to sustain economic growth. María José Romero, Policy and Advocacy Manager at Eurodad, said: The EU must recognise that leveraging private finance, and promoting public-private partnerships, entails many risks and is not always the best way to trigger development. A better policy would be to ask Southern countries to test the development impacts of these new proposals, putting developing countries back in the driving seat of their own development, where they belong. Instead, the EU should focus on putting its own house in order, starting with taking action to stop European companies dodging taxes, which costs the developing world dear.allafrica/stories/201412151081.html
Posted on: Fri, 16 Jan 2015 19:10:10 +0000