Common or Conflicting Interests? Reflections on the theme of Private Sector Development for Job Creation - A Debate Franklyn Lisk University of Warwick, UK and CREPOL ACRIA 4, Abidjan 4-5 July 2013

Job Creation - Why the Private Sector ? Conceptual Framework- perception, logic -Driver of economic growth -Structural transformation to sustainable development -Employment impact ECOWAS Economies- current situation -Size and structure of the private sector Stakeholders – vested interests -international, regional and national policy analysts; donors; business organisations

Private Sector Development (PSD) – Which Private Sector? Two conceptualisations of PSD -”promoting the development of the private sector “(indigenous actors – domestic resource mobilisation; MSMEs, informal sector ) -”engaging the private sector for development” (international actors –FDI, ODA; large infrastructure projects, extractive industries) Two approaches – different development outcomes? different employment impacts? Common or conflicting interests? Jobs; inclusive growth; industrialisation; sustainable development

The Private Sector and Jobs : Where should the focus be? Private sector-led development in ECOWAS economies – what to measure and how -Size and dynamism of the private sector and economic linkages -Investment and consumption patterns -Private sector as wage employer -Human capital – skills development -Technology and innovation -Comparative advantage versus competitiveness

Employment and development Impact of PSD – Two Scenarios MSME model -jobs and income-earning opportunities; inclusive growth and poverty reduction; sustainable development -drawback on revenue generation know-how to support economic transformation and growth FDI model -injection of capital and technology to promote economic growth and modernisation -constraint on development of domestic private sector

Two Approaches : Common or Conflicting Interests? Towards a convergence – Not an ‘either or’ case: Achieving economic growth and structural transformation through investment, business expansion and employment -Directing investment towards MSMEs (access to credits, technology); -Leveraging international finance (FDI and ODA) for employment-oriented development agenda and to fill gap between domestic saving and investment -Strengthening economic linkages between two approaches -Tax justice and containing capital flight – case of the extractive industries

What Governments should do to realise job potential of PSD Knowledge and advice for clarity, focus and priority on policies and programmes for PSD Commitment and action on development of MSMEs as a major development strategy – remove constraints and facilitate expansion Leverage external financial flows for unleashing employment potential of infrastructure development and industrialisation Optimise complementarities between the two approaches to PSD – working together and strengthening linkages Engage macroeconomic policies to increase employment content of growth- globalisation, regional integration, fiscal consolidation