Source: Business Fights Poverty
Philippe Scholtès and Tim Wall consider the new forms of partnership required to implement innovative business models that respond to commercial imperatives, while also delivering on the development front.
In the last two decades, increasing economic growth rates in many developing countries have reshaped the global economy and opened up new opportunities for learning and entering into new activities and sectors. Developing countries are not only accumulating valuable sources of capital and labour but they are also improving their skills and capacities to innovate.
Such continuous changes in the global economic landscape have been characterized by a shift of wealth towards the East and South, shaping new forms of promoting, as well as financing, development. However, leading technology and knowledge towards sustainable growth and moving up the value chain is still a challenge for most of the developing world.
Productive business activities are central to development. A strong private sector is a key driver of local economic growth, knowledge and technology generation, job creation and the provision of fundamental goods and services. Therefore, both developed and developing economies are increasingly realizing the necessity of engaging the private sector as an integral and dynamic agent of development, in order to sustainably address the most pressing global and national challenges. This is central to continuing negotiations for the development agenda that is to replace the Millennium Development Goals (MDGs) beyond 2015.