View from the field The private sector will not solve the poverty problem, but the poverty problem will not be solved without the private sector either! Whether they are farmers, artisans or factory workers, most people who live in poverty earn a considerable part of their income in the market. They simply have no choice. Their biggest problem is not the market as such, but the mere fact that they have to participate in it under extremely difficult – and often blatantly unfair – conditions. They lack both access to credit and the knowledge or technology they need to improve their business. They miss structural links to the market, have little legal protection, and have to settle for poor wages or prices as a result. In short: they face a host of constraints and have few options to improve their business and negotiate a route out of poverty for themselves and their families. “The market is not perfect, but it is indispensable in the fight against poverty.” t-shirts. Under the due diligence principle, companies have the duty to take measures to prevent such abuses in their supply chains and take action against them. Only then will growth be inclusive and benefit those who need it the most. How do you see organisations like SNV adding value to inclusive growth and private sector SNV has long supported small producers to strengthen their position. We have created market-based solutions for the poor and organised them to help bolster their negotiating position. We team up with bigger corporate players to expand the market and support small farmers and entrepreneurs to make use of these new sales channels to access local and overseas markets. We assist in the transfer of new technologies, improve the skills of producers and organise access to high-quality inputs and services or capital to enable the necessary investments. Such (public-private) partnerships with national and international firms offer new, often unexplored, opportunities for sustainable development. They provide chances to improve quality, increase productivity and expand the markets of small entrepreneurs. And this contributes to satisfying a steadily growing demand for food and other consumer goods. development efforts? The participation of NGOs like SNV in local, national and international policy processes is essential in order to make sure that the measures taken are effective and that they promote inclusive development. NGOs also have a key role to play as a watchdog, holding government and the private sector accountable when they fail to address important issues. SNV is a professional organisation with long-term partners in developing countries and access to a strong and diverse network of development experts. Its focus on food security, water and sanitation and energy offers ample opportunity to liaise with the private sector and support inclusive economic growth. > It is good news that Minister Ploumen recognises these opportunities and is making the resources available to strengthen the resilience and expand the economic horizons of small entrepreneurs while stimulating investment in poverty alleviation by the corporate sector. However, as much as economic growth can create the preconditions for sustained development, it doesn’t automatically translate into improved living conditions for poor people. Although globally much progress has been achieved, too many countries still score poorly on social indicators: from maternal mortality rates, to literacy and access to sanitation. Experience teaches us that the private sector is especially interested in enhancing productive activities – however, realising a more comprehensive development agenda and zero poverty within one generation requires the public sector to take an active role in formulating and implementing adequate policies, while also making sustained investments in education, health and infrastructure. With this in mind, at SNV we will continue to work with national and local governments to help them meet these needs, improving their performance across the vital agriculture, renewable energy and water, sanitation & hygiene sectors. Allert van den Ham, Chief Executive, SNV JULY 2013 CONNECT #2 11 Pagina 10

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