The field of Private Sector Development (PSD) has been changing in important ways in the last few years; what are those changes, and how should we be reacting? This article reviews the good news, the less good news, and the exciting new developments and opportunities; in particular, it argues that practitioners need to document their work better than they do at present, if policy choices are to be more evidence-based. Similarly, practitioners should think more about achieving measurable impacts at the national level. The article draws partly on the presentations made at the Annual ILO Seminar in Chiang Mai in September 2006, documenting in particular the concluding presentation by the author at that Seminar. It is written for all those working in areas such as value chain development, making markets work for the poor, BDS and small enterprise development.

ADE (2005) Evaluation of European Community Support to PSD in Third World Countries, Brussels, http://www.mmw4p.org/dyn/mmw4p/bdssearch.details?p_phase_id=495&p_xml:lang=en&p_phase_type_id=4 http://www.mmw4p.org/dyn/mmw4p/bdssearch.details?p_phase_id=495&p_xml:lang=en&p_phase_type_id=4

AusAID (2006) Australian Aid: Promoting Growth and Stability, A White Paper on the Australian Government's Overseas Aid Program. Canberra. http://www.ausaid.gov.au/publications/whitepaper/index.html http://www.ausaid.gov.au/publications/whitepaper/index.html

Bannock, Graham et al. (2002) ‘Indigenous PSD and regulation in Africa and Central Europe: A ten-country study’.

Beck, Thorsten, Asli Demirguc-Kunt and Ross Levine (2004) ‘SMEs, growth and poverty: cross-country evidence’, World Bank, Washington DC.

Clemensson (2006) ‘Presentation at the ILO Seminar on developing value chains and service markets, on behalf of the Donor Committee Working Group on Business Environment Reform’, Chiang Mai. http://www.mmw4p.org/dyn/mmw4p/bdssearch.details?p_xml:lang=en&p_phase_id=497&p_phase_type_id=6 http://www.mmw4p.org/dyn/mmw4p/bdssearch.details?p_xml:lang=en&p_phase_id=497&p_phase_type_id=6

Commission for Africa (2005) http://www.commissionforafrica.org Dalberg (2006) ‘From talk to walk: ideas to optimise development impact’, Task Force on Capacity for Programme Delivery, under Clinton Global Initiative, http://www.dalberg.com/taskforce.pdf http://www.dalberg.com/taskforce.pdf

DFID (2006) Alleviating World Poverty: Making Governance Work for the Poor, London, http://www.dfid.gov.uk/wp2006/default.asp http://www.dfid.gov.uk/wp2006/default.asp

Dollar, David, and Aart Kraay (2001) ‘Growth is Good for the Poor’, Development Research Group, World Bank, Washington DC.

Duggan, William R. (2002) Napoleon's Glance: The Secret of Strategy, First Nation Books. EBRD (2006) Business Environment and Enterprise Performance Survey (BEEPS), London http://www.ebrd.com/pubs/econo/beeps.htm http://www.ebrd.com/pubs/econo/beeps.htm

Fairbanks and Lindsay (1997) Plowing the Sea: Nurturing the Hidden Sources of Growth in the Developing World, Harvard Business School Press.

House of Commons (2006) ‘International Development Committee enquiry into PSD’, Fourth Report of Session 2005-06, London, http://www.publications.parliament.uk/pa/cm/cmintdev.htm http://www.publications.parliament.uk/pa/cm/cmintdev.htm

International Business Forum (2005) ‘Fighting poverty: A business opportunity. Business and the MDGs: an active role for globally responsible companies’, New York, http://siteresources.worldbank.org/CGCSRLP/Resources/report_IBF05-screen.pdf http://siteresources.worldbank.org/CGCSRLP/Resources/report_IBF05-screen.pdf

Lübker, M., Smith, G. and Weeks, J., (2002) ‘Growth and the Poor: A comment on Dollar and Kraay’ Journal of International Development, 14, 555-571. http://siteresources.worldbank.org/DEC/Resources/LubkerSmithWeeks.pdf#search=%22lubker%20soas%22 http://siteresources.worldbank.org/DEC/Resources/LubkerSmithWeeks.pdf#search=%22lubker%20soas%22

OECD (2006) OECD DAC Development Cooperation Report 2005, Paris, www.sourceoecd.org/developmentreport www.sourceoecd.org/developmentreport

Palmade, Vincent (2005) ‘Industry-level analysis: the way to identify the binding constraints to economic growth’, SED Vol. 16 No. 4

Reardon, Thomas, C. Peter Timmer, Christopher B. Barrett, Julio Berdegue (2003) ‘The rise of supermarkets in Africa, Asia and Latin American’, American Journal of Agricultural Economics, 85 (5).

Silva-Leander (2005) ‘Making sense of investment climate surveys’, paper presented at the Cairo Conference of the Donor Committee for Enterprise Development, DFID, London, http://www.businessenvironment.org/dyn/be/docs/69/Session1.1LeanderDoc.pdf http://www.businessenvironment.org/dyn/be/docs/69/Session1.1LeanderDoc.pdf

Subramanian (2006) ‘Presentation to the Working Group on Linkages and Value Chains of the Donor Committee for Enterprise Development’, Vienna. http://www.enterprise-development.org/events/event.asp?eventid=36 http://www.enterprise-development.org/events/event.asp?eventid=36

Unilever Indonesia and Oxfam UK (2005) Exploring the Links Between International Business and Poverty Reduction, http://www.unilever.com/ourcompany/newsandmedia/unileverindonesia.asp http://www.unilever.com/ourcompany/newsandmedia/unileverindonesia.asp

Voeten (2002) ‘Management training effects on women entrepreneurs who own and manage micro and small enterprises’, Maastricht School of Management/Vietnam, http://www.mmw4p.org/dyn/mmw4p/bdssearch.details?p_phase_id=250&p_xml:lang=en&p_phase_type_id=4 http://www.mmw4p.org/dyn/mmw4p/bdssearch.details?p_phase_id=250&p_xml:lang=en&p_phase_type_id=4

World Bank (2004, 2005, 2006) Doing Business, http://www.doingbusiness.org/ http://www.doingbusiness.org/

World Bank (2005) Paris Declaration on Aid Effectiveness, High Level Forum, Paris, www1.worldbank.org/harmonization/Paris/FINALPARISDECLARATION.pdf www1.worldbank.org/harmonization/Paris/FINALPARISDECLARATION.pdf

Zandniapour, L., J. Sebstad and D. Snodgrass (2004) ‘Review of Impact Assessments of Selected Enterprise Development Projects’, AMAP BDS, Washington DC.

ADE (2005) Evaluation of European Community Support to PSD in Third World Countries, Brussels, http://www.mmw4p.org/dyn/mmw4p/bdssearch.details?p_phase_id=495&p_xml:lang=en&p_phase_type_id=4 http://www.mmw4p.org/dyn/mmw4p/bdssearch.details?p_phase_id=495&p_xml:lang=en&p_phase_type_id=4

AusAID (2006) Australian Aid: Promoting Growth and Stability, A White Paper on the Australian Government's Overseas Aid Program. Canberra. http://www.ausaid.gov.au/publications/whitepaper/index.html http://www.ausaid.gov.au/publications/whitepaper/index.html

Bannock, Graham et al. (2002) ‘Indigenous PSD and regulation in Africa and Central Europe: A ten-country study’.

Beck, Thorsten, Asli Demirguc-Kunt and Ross Levine (2004) ‘SMEs, growth and poverty: cross-country evidence’, World Bank, Washington DC.

Clemensson (2006) ‘Presentation at the ILO Seminar on developing value chains and service markets, on behalf of the Donor Committee Working Group on Business Environment Reform’, Chiang Mai. http://www.mmw4p.org/dyn/mmw4p/bdssearch.details?p_xml:lang=en&p_phase_id=497&p_phase_type_id=6 http://www.mmw4p.org/dyn/mmw4p/bdssearch.details?p_xml:lang=en&p_phase_id=497&p_phase_type_id=6

Commission for Africa (2005) http://www.commissionforafrica.org Dalberg (2006) ‘From talk to walk: ideas to optimise development impact’, Task Force on Capacity for Programme Delivery, under Clinton Global Initiative, http://www.dalberg.com/taskforce.pdf http://www.dalberg.com/taskforce.pdf

DFID (2006) Alleviating World Poverty: Making Governance Work for the Poor, London, http://www.dfid.gov.uk/wp2006/default.asp http://www.dfid.gov.uk/wp2006/default.asp

Dollar, David, and Aart Kraay (2001) ‘Growth is Good for the Poor’, Development Research Group, World Bank, Washington DC.

Duggan, William R. (2002) Napoleon's Glance: The Secret of Strategy, First Nation Books. EBRD (2006) Business Environment and Enterprise Performance Survey (BEEPS), London http://www.ebrd.com/pubs/econo/beeps.htm http://www.ebrd.com/pubs/econo/beeps.htm

Fairbanks and Lindsay (1997) Plowing the Sea: Nurturing the Hidden Sources of Growth in the Developing World, Harvard Business School Press.

House of Commons (2006) ‘International Development Committee enquiry into PSD’, Fourth Report of Session 2005-06, London, http://www.publications.parliament.uk/pa/cm/cmintdev.htm http://www.publications.parliament.uk/pa/cm/cmintdev.htm

International Business Forum (2005) ‘Fighting poverty: A business opportunity. Business and the MDGs: an active role for globally responsible companies’, New York, http://siteresources.worldbank.org/CGCSRLP/Resources/report_IBF05-screen.pdf http://siteresources.worldbank.org/CGCSRLP/Resources/report_IBF05-screen.pdf

Lübker, M., Smith, G. and Weeks, J., (2002) ‘Growth and the Poor: A comment on Dollar and Kraay’ Journal of International Development, 14, 555-571. http://siteresources.worldbank.org/DEC/Resources/LubkerSmithWeeks.pdf#search=%22lubker%20soas%22 http://siteresources.worldbank.org/DEC/Resources/LubkerSmithWeeks.pdf#search=%22lubker%20soas%22

OECD (2006) OECD DAC Development Cooperation Report 2005, Paris, www.sourceoecd.org/developmentreport www.sourceoecd.org/developmentreport

Palmade, Vincent (2005) ‘Industry-level analysis: the way to identify the binding constraints to economic growth’, SED Vol. 16 No. 4

Reardon, Thomas, C. Peter Timmer, Christopher B. Barrett, Julio Berdegue (2003) ‘The rise of supermarkets in Africa, Asia and Latin American’, American Journal of Agricultural Economics, 85 (5).

Silva-Leander (2005) ‘Making sense of investment climate surveys’, paper presented at the Cairo Conference of the Donor Committee for Enterprise Development, DFID, London, http://www.businessenvironment.org/dyn/be/docs/69/Session1.1LeanderDoc.pdf http://www.businessenvironment.org/dyn/be/docs/69/Session1.1LeanderDoc.pdf

Subramanian (2006) ‘Presentation to the Working Group on Linkages and Value Chains of the Donor Committee for Enterprise Development’, Vienna. http://www.enterprise-development.org/events/event.asp?eventid=36 http://www.enterprise-development.org/events/event.asp?eventid=36

Unilever Indonesia and Oxfam UK (2005) Exploring the Links Between International Business and Poverty Reduction, http://www.unilever.com/ourcompany/newsandmedia/unileverindonesia.asp http://www.unilever.com/ourcompany/newsandmedia/unileverindonesia.asp

Voeten (2002) ‘Management training effects on women entrepreneurs who own and manage micro and small enterprises’, Maastricht School of Management/Vietnam, http://www.mmw4p.org/dyn/mmw4p/bdssearch.details?p_phase_id=250&p_xml:lang=en&p_phase_type_id=4 http://www.mmw4p.org/dyn/mmw4p/bdssearch.details?p_phase_id=250&p_xml:lang=en&p_phase_type_id=4

World Bank (2004, 2005, 2006) Doing Business, http://www.doingbusiness.org/ http://www.doingbusiness.org/

World Bank (2005) Paris Declaration on Aid Effectiveness, High Level Forum, Paris, www1.worldbank.org/harmonization/Paris/FINALPARISDECLARATION.pdf www1.worldbank.org/harmonization/Paris/FINALPARISDECLARATION.pdf

Zandniapour, L., J. Sebstad and D. Snodgrass (2004) ‘Review of Impact Assessments of Selected Enterprise Development Projects’, AMAP BDS, Washington DC.

ADE (2005) Evaluation of European Community Support to PSD in Third World Countries, Brussels, http://www.mmw4p.org/dyn/mmw4p/bdssearch.details?p_phase_id=495&p_xml:lang=en&p_phase_type_id=4 http://www.mmw4p.org/dyn/mmw4p/bdssearch.details?p_phase_id=495&p_xml:lang=en&p_phase_type_id=4

AusAID (2006) Australian Aid: Promoting Growth and Stability, A White Paper on the Australian Government's Overseas Aid Program. Canberra. http://www.ausaid.gov.au/publications/whitepaper/index.html http://www.ausaid.gov.au/publications/whitepaper/index.html

Bannock, Graham et al. (2002) ‘Indigenous PSD and regulation in Africa and Central Europe: A ten-country study’.

Beck, Thorsten, Asli Demirguc-Kunt and Ross Levine (2004) ‘SMEs, growth and poverty: cross-country evidence’, World Bank, Washington DC.

Clemensson (2006) ‘Presentation at the ILO Seminar on developing value chains and service markets, on behalf of the Donor Committee Working Group on Business Environment Reform’, Chiang Mai. http://www.mmw4p.org/dyn/mmw4p/bdssearch.details?p_xml:lang=en&p_phase_id=497&p_phase_type_id=6 http://www.mmw4p.org/dyn/mmw4p/bdssearch.details?p_xml:lang=en&p_phase_id=497&p_phase_type_id=6

Commission for Africa (2005) http://www.commissionforafrica.org Dalberg (2006) ‘From talk to walk: ideas to optimise development impact’, Task Force on Capacity for Programme Delivery, under Clinton Global Initiative, http://www.dalberg.com/taskforce.pdf http://www.dalberg.com/taskforce.pdf

DFID (2006) Alleviating World Poverty: Making Governance Work for the Poor, London, http://www.dfid.gov.uk/wp2006/default.asp http://www.dfid.gov.uk/wp2006/default.asp

Dollar, David, and Aart Kraay (2001) ‘Growth is Good for the Poor’, Development Research Group, World Bank, Washington DC.

Duggan, William R. (2002) Napoleon's Glance: The Secret of Strategy, First Nation Books. EBRD (2006) Business Environment and Enterprise Performance Survey (BEEPS), London http://www.ebrd.com/pubs/econo/beeps.htm http://www.ebrd.com/pubs/econo/beeps.htm

Fairbanks and Lindsay (1997) Plowing the Sea: Nurturing the Hidden Sources of Growth in the Developing World, Harvard Business School Press.

House of Commons (2006) ‘International Development Committee enquiry into PSD’, Fourth Report of Session 2005-06, London, http://www.publications.parliament.uk/pa/cm/cmintdev.htm http://www.publications.parliament.uk/pa/cm/cmintdev.htm

International Business Forum (2005) ‘Fighting poverty: A business opportunity. Business and the MDGs: an active role for globally responsible companies’, New York, http://siteresources.worldbank.org/CGCSRLP/Resources/report_IBF05-screen.pdf http://siteresources.worldbank.org/CGCSRLP/Resources/report_IBF05-screen.pdf

Lübker, M., Smith, G. and Weeks, J., (2002) ‘Growth and the Poor: A comment on Dollar and Kraay’ Journal of International Development, 14, 555-571. http://siteresources.worldbank.org/DEC/Resources/LubkerSmithWeeks.pdf#search=%22lubker%20soas%22 http://siteresources.worldbank.org/DEC/Resources/LubkerSmithWeeks.pdf#search=%22lubker%20soas%22

OECD (2006) OECD DAC Development Cooperation Report 2005, Paris, www.sourceoecd.org/developmentreport www.sourceoecd.org/developmentreport

Palmade, Vincent (2005) ‘Industry-level analysis: the way to identify the binding constraints to economic growth’, SED Vol. 16 No. 4

Reardon, Thomas, C. Peter Timmer, Christopher B. Barrett, Julio Berdegue (2003) ‘The rise of supermarkets in Africa, Asia and Latin American’, American Journal of Agricultural Economics, 85 (5).

Silva-Leander (2005) ‘Making sense of investment climate surveys’, paper presented at the Cairo Conference of the Donor Committee for Enterprise Development, DFID, London, http://www.businessenvironment.org/dyn/be/docs/69/Session1.1LeanderDoc.pdf http://www.businessenvironment.org/dyn/be/docs/69/Session1.1LeanderDoc.pdf

Subramanian (2006) ‘Presentation to the Working Group on Linkages and Value Chains of the Donor Committee for Enterprise Development’, Vienna. http://www.enterprise-development.org/events/event.asp?eventid=36 http://www.enterprise-development.org/events/event.asp?eventid=36

Unilever Indonesia and Oxfam UK (2005) Exploring the Links Between International Business and Poverty Reduction, http://www.unilever.com/ourcompany/newsandmedia/unileverindonesia.asp http://www.unilever.com/ourcompany/newsandmedia/unileverindonesia.asp

Voeten (2002) ‘Management training effects on women entrepreneurs who own and manage micro and small enterprises’, Maastricht School of Management/Vietnam, http://www.mmw4p.org/dyn/mmw4p/bdssearch.details?p_phase_id=250&p_xml:lang=en&p_phase_type_id=4 http://www.mmw4p.org/dyn/mmw4p/bdssearch.details?p_phase_id=250&p_xml:lang=en&p_phase_type_id=4

World Bank (2004, 2005, 2006) Doing Business, http://www.doingbusiness.org/ http://www.doingbusiness.org/

World Bank (2005) Paris Declaration on Aid Effectiveness, High Level Forum, Paris, www1.worldbank.org/harmonization/Paris/FINALPARISDECLARATION.pdf www1.worldbank.org/harmonization/Paris/FINALPARISDECLARATION.pdf

Zandniapour, L., J. Sebstad and D. Snodgrass (2004) ‘Review of Impact Assessments of Selected Enterprise Development Projects’, AMAP BDS, Washington DC.

ADE (2005) Evaluation of European Community Support to PSD in Third World Countries, Brussels, http://www.mmw4p.org/dyn/mmw4p/bdssearch.details?p_phase_id=495&p_xml:lang=en&p_phase_type_id=4 http://www.mmw4p.org/dyn/mmw4p/bdssearch.details?p_phase_id=495&p_xml:lang=en&p_phase_type_id=4

AusAID (2006) Australian Aid: Promoting Growth and Stability, A White Paper on the Australian Government's Overseas Aid Program. Canberra. http://www.ausaid.gov.au/publications/whitepaper/index.html http://www.ausaid.gov.au/publications/whitepaper/index.html

Bannock, Graham et al. (2002) ‘Indigenous PSD and regulation in Africa and Central Europe: A ten-country study’.

Beck, Thorsten, Asli Demirguc-Kunt and Ross Levine (2004) ‘SMEs, growth and poverty: cross-country evidence’, World Bank, Washington DC.

Clemensson (2006) ‘Presentation at the ILO Seminar on developing value chains and service markets, on behalf of the Donor Committee Working Group on Business Environment Reform’, Chiang Mai. http://www.mmw4p.org/dyn/mmw4p/bdssearch.details?p_xml:lang=en&p_phase_id=497&p_phase_type_id=6 http://www.mmw4p.org/dyn/mmw4p/bdssearch.details?p_xml:lang=en&p_phase_id=497&p_phase_type_id=6

Commission for Africa (2005) http://www.commissionforafrica.org Dalberg (2006) ‘From talk to walk: ideas to optimise development impact’, Task Force on Capacity for Programme Delivery, under Clinton Global Initiative, http://www.dalberg.com/taskforce.pdf http://www.dalberg.com/taskforce.pdf

DFID (2006) Alleviating World Poverty: Making Governance Work for the Poor, London, http://www.dfid.gov.uk/wp2006/default.asp http://www.dfid.gov.uk/wp2006/default.asp

Dollar, David, and Aart Kraay (2001) ‘Growth is Good for the Poor’, Development Research Group, World Bank, Washington DC.

Duggan, William R. (2002) Napoleon's Glance: The Secret of Strategy, First Nation Books. EBRD (2006) Business Environment and Enterprise Performance Survey (BEEPS), London http://www.ebrd.com/pubs/econo/beeps.htm http://www.ebrd.com/pubs/econo/beeps.htm

Fairbanks and Lindsay (1997) Plowing the Sea: Nurturing the Hidden Sources of Growth in the Developing World, Harvard Business School Press.

House of Commons (2006) ‘International Development Committee enquiry into PSD’, Fourth Report of Session 2005-06, London, http://www.publications.parliament.uk/pa/cm/cmintdev.htm http://www.publications.parliament.uk/pa/cm/cmintdev.htm

International Business Forum (2005) ‘Fighting poverty: A business opportunity. Business and the MDGs: an active role for globally responsible companies’, New York, http://siteresources.worldbank.org/CGCSRLP/Resources/report_IBF05-screen.pdf http://siteresources.worldbank.org/CGCSRLP/Resources/report_IBF05-screen.pdf

Lübker, M., Smith, G. and Weeks, J., (2002) ‘Growth and the Poor: A comment on Dollar and Kraay’ Journal of International Development, 14, 555-571. http://siteresources.worldbank.org/DEC/Resources/LubkerSmithWeeks.pdf#search=%22lubker%20soas%22 http://siteresources.worldbank.org/DEC/Resources/LubkerSmithWeeks.pdf#search=%22lubker%20soas%22

OECD (2006) OECD DAC Development Cooperation Report 2005, Paris, www.sourceoecd.org/developmentreport www.sourceoecd.org/developmentreport

Palmade, Vincent (2005) ‘Industry-level analysis: the way to identify the binding constraints to economic growth’, SED Vol. 16 No. 4

Reardon, Thomas, C. Peter Timmer, Christopher B. Barrett, Julio Berdegue (2003) ‘The rise of supermarkets in Africa, Asia and Latin American’, American Journal of Agricultural Economics, 85 (5).

Silva-Leander (2005) ‘Making sense of investment climate surveys’, paper presented at the Cairo Conference of the Donor Committee for Enterprise Development, DFID, London, http://www.businessenvironment.org/dyn/be/docs/69/Session1.1LeanderDoc.pdf http://www.businessenvironment.org/dyn/be/docs/69/Session1.1LeanderDoc.pdf

Subramanian (2006) ‘Presentation to the Working Group on Linkages and Value Chains of the Donor Committee for Enterprise Development’, Vienna. http://www.enterprise-development.org/events/event.asp?eventid=36 http://www.enterprise-development.org/events/event.asp?eventid=36

Unilever Indonesia and Oxfam UK (2005) Exploring the Links Between International Business and Poverty Reduction, http://www.unilever.com/ourcompany/newsandmedia/unileverindonesia.asp http://www.unilever.com/ourcompany/newsandmedia/unileverindonesia.asp

Voeten (2002) ‘Management training effects on women entrepreneurs who own and manage micro and small enterprises’, Maastricht School of Management/Vietnam, http://www.mmw4p.org/dyn/mmw4p/bdssearch.details?p_phase_id=250&p_xml:lang=en&p_phase_type_id=4 http://www.mmw4p.org/dyn/mmw4p/bdssearch.details?p_phase_id=250&p_xml:lang=en&p_phase_type_id=4

World Bank (2004, 2005, 2006) Doing Business, http://www.doingbusiness.org/ http://www.doingbusiness.org/

World Bank (2005) Paris Declaration on Aid Effectiveness, High Level Forum, Paris, www1.worldbank.org/harmonization/Paris/FINALPARISDECLARATION.pdf www1.worldbank.org/harmonization/Paris/FINALPARISDECLARATION.pdf

Zandniapour, L., J. Sebstad and D. Snodgrass (2004) ‘Review of Impact Assessments of Selected Enterprise Development Projects’, AMAP BDS, Washington DC.