In focus “Aid can serve as a catalyst for much greater sustainable private investment in developing countries that provides jobs, knowledge and lasting progress.” Your new policy has a strong focus on private sector development, but how can we make sure that this development is inclusive and benefits those at the ‘base of the pyramid’? What support structures and services are needed to make growth inclusive – especially in rural areas? The market is not perfect, but it is indispensable in the fight against poverty. And while growth alone does not combat inequality, it is a precondition for sustainable welfare for all. This means we need to engage the private sector. We should seize the opportunity to let aid encourage much larger private investment and trade activities that benefit both people and the environment, create jobs and transfer knowledge and skills. For the bottom billion, investment in smallholder agriculture is crucial. This is the most effective way to alleviate hunger and poverty, while at the same time building the foundations for further economic development. Local farmers, who are mainly women, are given support to produce for companies like Heineken and FrieslandCampina and make the transition from the informal to the formal economy. Securing the right to use land is an important precondition for this. To boost development we are investing in an enabling environment for economic activity: helping to create infrastructure, support labour unions, provide vocational training, strengthen financial services, and so on. And we must make sure businesses fully shoulder their social responsibility, demanding they adhere to the OECD guidelines and addressing their shortcomings. A clear case in point is the appalling conditions in which textile workers in Bangladesh risk their lives to make our jeans and 10 CONNECT #2 JULY 2013 Pagina 9

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