Private Sector Development in the Australian Aid Program

Common Goals: Partnering Business, Government and Community, ANZBA Corporate Social Responsibility Conference, Vientiane, 24 November 2014

John Williams, Australian Ambassador to the Lao PDR

Finance flows to developing countriesUS$890 billion – private capital flows

US$400 billion – remittances

US$134 billion – ODA

US$70 billion – philanthropic aid

• 52% of global FDI flows in 2012 were absorbed by developing economies

• 30% is the contribution of value added trade to the GDP of developing economies (cf 18%)

• 85% of employment opportunities in developing countries are created by SMEs

Engaging the Private Sector

All new investments will explore innovative ways to promote private sector growth, or engage the private sector in achieving development outcomesThe target includes engaging the private sector in: • the design or delivery of investments• innovative approaches to project financing• public-private partnerships• improving the regulatory environment for private

sector participants • addressing other constraints to economic growth

Australia’s Economic Diplomacy AgendaTrade – Pursue trade liberalisation through bilateral, regional and global trade agreements that open up new markets for Australian exporters and sustain a strong, rules-based architecture for global trade.

Growth – Support global growth, including by using Australia’s aid program and other measures to promote economic reform and infrastructure, and through regional and global economic cooperation fora.

Investment – Promote investment into Australia and Australian investment internationally.

Business – Advance the interests of Australian business overseas, the development of a stronger private sector in our region, and promote Australian tourism.

Australia’s Aid Policy Framework

Building better business enabling environments

The Kangaroo Bridge…

Direct partnerships with business - Carnival Cruises, Vanuatu

Business engagement -Oil Search Health Foundation,Papua New Guinea

A midwife educator demonstrates the neonatal resuscitation procedure during an Emergency Obstetric Care training session. Photo: Oil Search Health Foundation