Denmark has four strategic aims: Security; Migration; Inclusive, Sustainable Growth; and Freedom. These are outlined in more detail in The World 2030: Denmark’s strategy for development cooperation and humanitarian action (2017).
Private sector development (PSD) policy and strategy
Denmark works for sustainable and inclusive economic growth and employment creation. Inclusive growth is people-centred, creates equal access to resources and promotes employment. The nature of growth must be such that it does not negatively impact the environment or contribute to harmful climate change. Denmark emphasizes the promotion of market-based economic growth and employment creation in developing countries in order to foster inclusive and sustainable development that benefits the poor. It is a strategic priority in Denmark to work for a stronger private sector which will create economic growth. For further readings see the links below.
Partnership mechanisms for the private sector
Denmark’s priorities are: i) liberal trade regimes that meet the interests of developing countries; ii) multilateral initiatives for trade related capacity building and infrastructure at the global, regional and national level through the WTO, the World Bank and the EU; and (iii) bilateral initiatives for capacity building at the regional as well as national level.
Denmark is focused on flexible partnerships in its mission to fight poverty. One category of partners is the private sector; therefore, Denmark has a number of partnership mechanisms for PSD.
- Denmark Market Development Partnerships: Sponsoring partnerships between (at a minimum) a private business and a non-commercial partner
- Denmark Business Partnerships: Brokering links between companies; Financial support (grants); Technical Assistance (now being phased out)
- Denmark Business Finance: Financial support through interest-free loans
- Denmark Business Explorer: Financial support for investigating business opportunities (grants)
- Africa Enterprise Challenge Fund: Financial support (loans, grants)(multi-donor)
- Ghana’s Business Sector Advocacy Challenge Fund: Financial support (grants)
Transparency, effectiveness and results in PSD
The international community, including Denmark, has taken important initiatives in recent years to make development assistance more effective with evaluation being the key initiative. Since 1987 Denmark has published all its evaluations in order to inform the general public and political decision-makers of the results and processes of the Danish MFA, thus increasing transparency. Evaluating its programmes and policies makes the agency accountable for its results. At the same time, evaluations and their analyses are important tools for further increasing the effectiveness of Denmark’s work by improving approaches and methods.