About us

The Donor Committee for Enterprise Development is a gathering of many of the funding and inter-governmental agencies working for sustainable poverty alleviation through development of "the private sector" - the businesses, small and large, that provide the bulk of employment and prosperity worldwide. It was established informally in 1979, when its first members met at a meeting convened by the World Bank. Until 2005, the Committee was known as the "Committee of Donor Agencies for Small Enterprise Development".

Sustainable development can only be driven, in the long term, by a dynamic private sector; and external agencies can only contribute to that dynamism if their efforts are coordinated. In the quest for harmonisation and effectiveness, the Committee therefore works on:

defining best practice in priority themes, in participatory ways;
disseminating best practice and successful experiences between countries; and
increasing capacity of development practitioners to improve their effectiveness.

This technical focus contributes to realisation of the Paris Declaration on Aid Effectiveness, which aims to ensure that "donors' actions are more harmonised, transparent and collectively effective". It does so in ways that are distinctive; for example:

the Committee is led by its member agencies, responding to the shared interests and needs that arise as members work to serve their clients in government, the private sector and civil society in developing countries
the Committee develops best-practice guidelines based on the practical experiences gained in the field
the Committee includes among its membership bilateral donors, multi-lateral agencies (Development Banks, UN agencies and others) and private foundations
the Committee provides a forum where innovative thinking and approaches can be articulated and discussed
the Committee provides institutional memory to members and others, in private sector development

In addition, the Committee, through its Annual Meetings and Working Groups set up to tackle specific issues, provides an opportunity for staff of member agencies to get to know their peers, and expand their networks, in a constructive and positive atmosphere.

The activities of the Committee demonstrate the determination of many development agencies to coordinate their work, to learn from each others' achievements and to share knowledge with others, including through conferences and other major events. Staff of member agencies volunteer their time to participate, and to explore technical issues in-depth. The Committee has produced guidance that has shaped donors' behaviour. The Guiding Principles for Selecting and Supporting Intermediaries in Micro- and Small-Enterprise Finance (or "Pink Book"), issued by the Committee in 1995, played a pivotal role in the micro-finance 'revolution'; the document shaped the debate and contributed to the formation of the Consultative Group to Assist the Poorest (CGAP).

Similarly, the Guiding Principles for Business Development Services (BDS) - also known as the "Blue Book" - have shaped the debate since they were published in 2001, about how to support private sector development; the document is now available in 8 languages. In particular, it has pointed to the potential for donor agencies to consider whole systems of business support, and to identify market-based solutions that will assist local enterprises in self-sustaining ways. It has commanded wide attention and interest, and is now referred to in the funding guidelines of several member agencies. The Committee is currently focusing on Business Environment Reform and Linkages & Value Chains, and has Working Groups dedicated to those themes. In addition, it manages knowledge relevant to enterprise and private sector development for its agencies and their related networks, through on-line databases, a monthly newsletter and regular meetings. Future themes for the Committee may include ways of measuring the positive impacts of enterprise development, and how to expand the financial services available to small and medium-sized enterprises.

To respond to requests from staff in the field for more information and guidance, the Committee is also reaching out to a greater extent than in the past, directly to donor coordination groups dealing with enterprise development in the developing countries where we work. Through these groups, we plan to hold more events, provide more information and other support associated with the latest understanding about best practices. The Committee is currently co-Chaired by the Director of the IFC's SME Department the Head of Section for Economic Policy and Private Sector Development in GTZ; the Trust Fund is administered by the World Bank Group.

For more information, please contact the Coordinator. For a downloadable brochure, please click here.