Private sector development for an inclusive society

Abstract

This chapter introduces a model for analysing the inclusive sustainable private sector development in emerging economies. To develop this model, a framework based on cluster competitiveness is considered. For effective private sector development it is important to have a variety of private sector activities in order to have different pockets of power. In this way, 'a level playing field' can be better organised, resulting in more fair and equal competition (Acemoglu & Robinson, 2012). This model is composed of three layers: a base layer relating to three environmental foundation actors, a second layer consisting of four societal actors, and a third layer with five economic foundation actors. These layers are all crucial for the development of inclusive sustainable business, which is at the top of the pyramid. It is essential to develop the private sector in a way that it can provide for more decent jobs, absorb more youth into the workforce, and create the innovations needed for a sustainable society. Developing the private sector in the context of a shift towards a green economy could bring together two potentially conflicting objectives, i.e. creating a competitive private sector and (simultaneously) contributing to the development of a sustainable society. Building strong localised triple helix platforms (government, university, and business) is fundamental for developing a private sector that can contribute to the emergence of a sustainable society.