European Union

IB Policies Around the World

Within the European Commission, the Directorate-General for International Cooperation and Development (DEVCO) is in charge of development policy in a wider framework of international cooperation, adapting to the evolving needs of partner countries.

Over the last decade, European Commission support for private sector development has averaged EUR 350 million per year and the current Multiannual Financial Framework for 2014-2020 contains approximately EUR 2 billion for private sector development. This, combined with development assistance from Member States, makes the EU a key player in supporting local private sector development in partner countries.

The key policy document is the Commission Communication - A Stronger Role of the Private Sector in Achieving Inclusive and Sustainable Growth in Developing Countries. The Communication highlights 12 concrete actions where the Commission believes it can add value and effectively complement actions by Member States and development partners on private sector cooperation. The actions target better regulatory environments in partner countries, business development and access to finance, especially for job-creating micro, small and medium-sized businesses. Another recent Commission Communication is the Achieving Prosperity through Trade and Investment updating the 2007 Joint EU Strategy on Aid for Trade. The Communication highlights the importance of trade as an instrument to poverty reduction and jobs creation through trade and investment. It puts a strong focus on inclusiveness by targeting the least developed countries, and countries in situations of fragility.

One of the Commission’s recent key private sector priorities is the External Investment Plan (EIP), which sets out a coherent and integrated framework to improve investment in Africa and the European neighbourhood in order to promote decent job creation as well as, inclusive and sustainable development. This is done through the three pillars, providing a guarantee, technical assistance and promoting a conducive investment climate. One of the EIP windows are focused on Micro, small and medium enterprises, including inclusive aspects such as targeting women entrepreneurs, as well as having a focus on fragile states.

Development Cooperation Factsheets

France

The french development approach targets both social and inclusive businesses though financial investment in the whole ecosystem
Policy and Government

United Kingdom (UK)

The Department for International Development (DFID) administers UK’s overseas development aid. DFID works with other UK government departments, which also spend UK overseas development assistance in line with the government’s UK Aid Strategy.
Policy and Government

Sweden

Sweden supports inclusive business initiatives bilaterally and regionally as well as globally. The main objective of Sweden’s development cooperation for sustainable economic development is to improve the opportunities of poor people to contribute to, and benefit from, economic growth.
Policy and Government

Spain

Private sector promotion has gained significance in Spanish development cooperation, which now seeks to make this sector a partner in achieving its development objectives.
Policy and Government

Luxembourg

Luxembourg’s development cooperation has maintained a twenty-year commitment to actively support the development of inclusive finance, recognising that these tools constitute important mechanisms for poverty reduction. More recently, the dynamism of the private sector has been playing an increasingly important role in development affairs.
Policy and Government

Italy

Inclusive business methodology has been promoted through the results of a research lead by DeLab, the Italian member of the BoP Global Network. The first public call addressed to the private sector actors has been launched by AICS in July 2017. The call is focused on innovation, inclusive business, profit-noprofit partnership, sustainability.
Policy and Government

Germany

The Federal Ministry for Economic Cooperation and Development (BMZ) is responsible for devising the strategies for Germany’s development policy and, beginning in 2008, started to take up a wide range of initiatives specific to inclusive business models.
Policy and Government

Finland

MFA Finland supports Finnish companies’ partnerships, business opportunities and investments in developing countries through development cooperation funding and a multitude of services under the auspices of Team Finland network. The aim is to promote partner countries’ economic, social and environmental development.
Policy and Government

European Union

Within the European Commission, the Directorate-General for International Cooperation and Development (DEVCO) is in charge of development policy in a wider framework of international cooperation, adapting to the evolving needs of partner countries.
Policy and Government