Understanding and Enhancing the Role of Business in International Development

Political, private sector and development leaders broadly agree that business has a critical role to play in driving innovation, promoting inclusive and sustainable economic growth and improving human wellbeing. Foreign Direct Investment (FDI) flows to developing economies now account for over half of all FDI flows worldwide and developing countries’ national investment policies are increasingly driven by their development strategies. This is reflected in an upsurge in the promotion of business activities specifically targeted at achieving development objectives. However, more needs to be done to ensure that these activities are strategic and that donor, business, government and NGO efforts are informed by a more detailed understanding of where and how business can make the most effective contributions.