Abstract

The aim of this paper is to elaborate a framework for analysing policies and instruments adopted by international co-operation to promote the development of the private sector in developing countries. First of all, the paper presents a brief overview of donors' dominant approach in the past two decades and then an analysis of the most recent trends in this field. Both concerning non financial and financial services to the firms, there is a wide consensus on the need of strengthening local supply institutions, promoting their sustainability and effectiveness. Donors should sustain on the supply side, the development of a well functioning and transparent market for services, avoiding interventions which generates long term distortions and on the demand side should help firms in identifying their needs and the best way to satisfy them within the market.