Support for Private Sector Development - Summary and Synthesis of Three Sida Evaluations

Anders Danielson
Serier – Sida Studies in EvaluationDescription:
Sida Studies in Evaluation 03/05 / Sida recently commissioned a thematic series of three evaluations of its approach to private-sector development (PSD) support. The present report summarizes and synthesizes central findings of the evaluations, in order to highlight major lessons learnt. It concludes that comprehensiveness and sequencing of measures are crucial aspects of a successful approach to PSD support. In general, support should first be directed to the development of an enabling environment at the macro level before the focus is turned to removing market obstacles at the micro level. The report stresses, however, the importance of context-specific analyses of the environment and obstacles to PSD and a consequent adaptation of PSD support in each country case.
Whereas there clearly has been a lack of a coherent PSD approach within Sida in the past, Sida has recently adopted policy guidelines for its future PSD support. Still, within Sida as well as internationally, learning about how to successfully support PSD is likely to be a continuous process. This summary and synthesis report aspires to make a contribution to that end.