DYNAMIC, broad based, well functioning and socially responsible private sector in Least Developed Countries (LDCs) is seen as a valuable instrument for increasing investment and trade.
This was said in Dar es Salaam by the Economic and Social Research Foundation (ESRF) Executive Director, Dr Bohela Lunogelo, at the meeting of the team of experts on development challenges and tracking the effective implementation of international commitments to the LCDs.
"The private sector is an essential component in generating economic growth and eradicating poverty as well as serving as an engine for industrialisation and structural transformation," he said. He said private sector is a key to steady, inclusive and equitable economic growth as well as sustainable development in LDCs.
Given the nature of LDCs economies, the development of small and medium sized enterprises holds a promising opportunity for the emergence of a vibrant business community. However, structural constraints like infrastructure bottlenecks have limited the growth of private sector.
Tanzania has already enacted the Public Private Partnership Act No.18 of 2010 deliberately to ensure that the two sectors jointly contribute to economic growth, in the effort to end the abject poverty in the society.
Dr Lunogelo said agriculture investments particularly in the Southern Agriculture Growth Corridor of Tanzania (SAGGOT) is typical example of projects implemented by the PPP programme and has been showing positive progress.
In an interview, the retired ambassador, Mr Marten Lumbanga, said PPP was a significant instrument in attaining real development particularly on the service industry whose contributions has remained low. "Service industry is one of the largest sectors in the world and could contribute immensely to Tanzania's development if there are serious plans set forth to create win win situation," he said.
The LDCs currently consist of 49 countries with a total population of 880 million, where 75 per cent still living in abject poverty are characterized by constraints like low per capita income and human development as well as economic growth.
The LDCs thus represent the poorest and weakest segment of the international community. It is from this perspective that a programme of action for the LDCs was set forth during the fourth United Nations Conference held in Istanbul, Turkey in 2011 to track down the implementations of the development partners' commitments.