why the private sectormatters more than ever
The world paid a steep price or deects in the globalfnancial system. In the economic crisis that ensued, mil-lions o people were pushed back into poverty. In manycountries, public confdence in the virtues o privatemarkets dwindled. Yet prosperity cannot be restored and sustainedwithout a major contribution rom the private sector.The private sector provides more than 90 percent o jobs, creating opportunities or people to improvetheir lives. The private sector drives innovation, andprovides the goods and services needed to sustainand improve living standards. The private sector is alsothe main source o tax revenues, contributing to publicunding or health, education, and other services.These contributions are more important than everin the wake o the crisis, when governments ace evengreater constraints in serving their societies. Theresources needed to alleviate poverty and advancedevelopment are too vast or governments to provideon their own. The World Bank estimates the internationalfnancing needs o developing countries at $1.1 trillionin 2010 — most o which is expected to come rom pri-vate investors. In addition, more than 80 percent o theinvestment needed or climate-change mitigation andadaptation is expected to come rom private sources.Today, most developing countries recognize thecritical role o the private sector in development andpoverty reduction. Developing countries account or agrowing share o the global economy. They have a vitalinterest in getting private sector development right.So does the rest o the world.
IFC is a member of the World Bank Groupcreating opportunitywhere it’s needed most