The objective of development is to produce a sustainable society. A society which creates wealth, is just, is safe, and is inclusive. A society that generates a living income for current households without jeopardizing future generations. How this can be achieved is not yet clear, but much is known from research and also from practice.
The private sector is increasingly praised as an engine of economic growth. This belief has led to significant efforts to develop the private sector in developing countries. Development partners prioritize private sector development, and governments are pushed to do the same and provide huge incentives to attract investment. However, this has not been without controversy. China's success, largely due to the use of state-owned enterprises, has shown that the state can still play an important role in the production of private goods and services.
This book does not attempt to act as an arbiter in this debate. We recognize the roles of both the state and the private sector, but we also recognize that these roles must be balanced, and the balance should be based on the context of each country. Achieving a balance between the state and the private sector requires a strong civil society that controls both the state and the private sector and promotes the further development of society. Everyone must play their role and all actions must be orchestrated through various institutions. We try to provide some insights on how this can be achieved.
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