Synthesis Documents

The New Generation of PSD Programming: The Emerging Path to Economic Growth with Poverty Reduction, USAID AMAP, 2006

    This paper presents a conceptual framework for understanding the new generation of private-sector development (PSD) programming developed since the mid-1990s by USAID and other donors. The framework offers an exploratory model of PSD and defines the range of options open to donors seeking to accelerate and/or improve PSD in developing and transition economies. This paper is the third of five AMAP Business Development Services (BDS) Knowledge & Practice (K&P) Component D papers related to impact assessment of PSD programs. Its purpose is to lay the foundation on which to build an approach for conducting impact assessments of an array of PSD activities. To do so, it describes the impacts that PSD programs aim to achieve, strategies and programmatic approaches used to achieve these impacts, and the implications of these aims, strategies, and approaches for measuring their success. The paper ends by defining a learning agenda derived from the new generation of PSD programs.

    The paper has nine sections. Following the Introduction, section 2 defines the importance of PSD for economic growth and poverty alleviation. Section 3 then presents a model of PSD that, while perhaps implicit in recent intervention designs, has not been fully articulated before now. Sections 4 through 6 discuss the three major elements in that model: end-market demand, the business environment, and private-sector supply response. Section 7 describes the new generation of PSD programming and analyzes the major strategic issues that donors face when they design interventions intended to stimulate PSD. Section 8 discusses the varied settings in which PSD programs are implemented and their implications for program design. Finally, Section 9 defines a learning agenda for determining the effects of new generation PSD projects.

    Associated Activities and Documents
    Impact Assessment
    »Review of Impact Assessments of Selected Enterprise Development Projects, Sebstad, et al, DAI, July 2004
    »Inventory and Analysis of Donor-Sponsored MSE Development Programs, USAID AMAP, DAI 2005