Improving Post-2015 Development Cooperation through Donor Support for Inclusive Business

The purpose of this chapter is to call for a better cohesion between development cooperation, on the one hand, and inclusive business, on the other. This contributes to the existing post recessionary debate on development cooperation, in which, (i) traditional aid and partnership effectiveness are being revised and, (ii) the role of the private sector in development is being emphasized. It builds on recent discussions that call for a more strategic use of development cooperation to leverage other development-oriented flows, particularly those coming from the private sector.

The chapter corresponds to a conceptual chapter. Results were obtained through the study and comparison of secondary sources and a literature review. It first explores donor-private sector relations, paying particular attention to the OECD Development Assistance Committee (DAC), and then moves on to the study of inclusive business in relation to development aid.

The study first reflects upon shifts perceived in development cooperation since the Great Recession, and analyses how foreign donors have engaged more widely with businesses for addressing global development challenges. The concept of inclusive business is then introduced, describing how although the development community acknowledges the potential of the private sector as a driving force for development, inclusive business have hitherto been developing, to a great extent, aside of broader development efforts. The final section presents a typology that proposes various ways in which donor agencies may integrate inclusive business support into their private sector programs.

The chapter is of use for both academics and practitioners with an interest in development cooperation and/or inclusive business.

Proposing a conceptual study that tends toward a greater cohesion between inclusive business and development cooperation is a contribution to the literature that has emerged on Base of the Pyramid markets since early 2000s. It is argued that such cohesion may prove valuable for the betterment of public-private relations, turning them more responsive to the challenges of sustainable development in the post-2015 world.