You are here: Home Knowledge Base Economy Building Thriving Companies in Low-Income Economies Solutions Leverage public investment through public-private partnerships on commercially viable projects.
Symposium 2010

Solution for Building Thriving Companies in Low-Income Economies

The Challenge

Post-conflict economies and many low-income countries, such as Bangladesh, Haiti and Rwanda, offer prospects for high returns. But inward investment flows beyond oil and mining have remained scarc ...

Post-conflict economies and many low-income countries, such as Bangladesh, Haiti and Rwanda, offer prospects for high returns. But inward investment flows beyond oil and mining have remained scarce and have taken a substantial hit as a result of the global crisis.

Leverage public investment through public-private partnerships on commercially viable projects.

Given the huge need for capital, public capital has to be geared up by private capital, giving rise to public-private partnerships. Specifically, public capital from bilateral or multilateral donors can take up part of the risk involved in investing in low-income countries, thereby encouraging private firms to follow suit. The resulting partnerships can deliver high returns provided that they invest in commercially viable projects.

There are two caveats: first, the implementation of public-private partnerships frequently becomes very complex; and second, providing public capital on a significant scale may come at the expense of cutting donor money in other important areas such as health or education.

    Related Solutions

    Solution
    Symposium 2010

    Encourage investment in financial and physical infrastructure and raise the quality of the labor force to reduce the costs of doing business.

    Encourage investment in financial and physical infrastructure and raise the quality of the labor force to reduce the costs of doing business.

    Encourage investment in financial and physical infrastructure and raise the quality of the labor force to reduce the costs of doing business.

    Polity, Business
    Solution
    Symposium 2010

    Speed up the process of diversification away from purely commodity-driven growth.

    Speed up the process of diversification away from purely commodity-driven growth.

    Speed up the process of diversification away from purely commodity-driven growth.

    Polity, Business
    Solution
    Symposium 2010

    Where substantial economies of scale remain unexploited, scale up national stock exchanges by creating regional financial hubs.

    Where substantial economies of scale remain unexploited, scale up national stock exchanges by creating regional financial hubs.

    Where substantial economies of scale remain unexploited, scale up national stock exchanges by creating regional financial hubs.

    Polity, Business
    Solution
    Symposium 2010

    Encourage signaling of good governance through the rapid pursuit of efficiency, transparency and accountability in government.

    Encourage signaling of good governance through the rapid pursuit of efficiency, transparency and accountability in government.

    Encourage signaling of good governance through the rapid pursuit of efficiency, transparency and accountability in government.

    Polity, Business