This issue of eVALUation Matters examines the challenges and opportunities as well as the emerging trends of private sector development.
A robust private sector is widely recognized by the international development community as an engine of sustainable and inclusive economic growth. Donor support for private sector development varies: While some donor institutions focus on the enabling environment for private sector growth, others focus on providing direct and indirect financing to private enterprises. Each approach has its own benefits, weaknesses, and risks. What does development evaluation tell us about the different approaches and their outcomes? What works, what does not work and why? More importantly, what are the challenges in evaluating private sector development assistance and what can we do about them? What are the good practices that can be emulated?