The document discusses private sector development in Australia's aid program. It notes that private capital flows, remittances, and trade contribute far more to developing economies than official development assistance. Australia's aid program aims to promote private sector growth in developing countries by engaging businesses in the design and delivery of aid investments, innovative financing approaches, public-private partnerships, and improving regulations. The program also supports global economic growth and facilitates trade, investment, and partnerships between Australian and developing country businesses.

1. Private Sector Development in the
Australian Aid Program
Common Goals: Partnering Business, Government and
Community, ANZBA Corporate Social Responsibility
Conference, Vientiane, 24 November 2014
John Williams, Australian Ambassador to the Lao PDR

2. Finance flows to developing countries
US$890 billion – private capital flows
US$400 billion – remittances
US$134 billion – ODA
US$70 billion – philanthropic aid
• 52% of global FDI flows in 2012 were absorbed by
developing economies
• 30% is the contribution of value added trade to the
GDP of developing economies (cf 18%)
• 85% of employment opportunities in developing
countries are created by SMEs

3. Engaging the Private Sector
All new investments will explore innovative ways to
promote private sector growth, or engage the private
sector in achieving development outcomes
The target includes engaging the private sector in:
• the design or delivery of investments
• innovative approaches to project financing
• public-private partnerships
• improving the regulatory environment for private
sector participants
• addressing other constraints to economic growth

4. Australia’s Economic Diplomacy Agenda
Trade – Pursue trade liberalisation through bilateral, regional and
global trade agreements that open up new markets for Australian
exporters and sustain a strong, rules-based architecture for
global trade.
Growth – Support global growth, including by using Australia’s
aid program and other measures to promote economic reform
and infrastructure, and through regional and global economic
cooperation fora.
Investment – Promote investment into Australia and Australian
investment internationally.
Business – Advance the interests of Australian business
overseas, the development of a stronger private sector in our
region, and promote Australian tourism.

5. Australia’s Aid Policy Framework

6. Building better business enabling environments

7. The Kangaroo Bridge…

9. Direct partnerships with business
- Carnival Cruises, Vanuatu

10. Business
engagement -
Oil Search Health
Foundation,
Papua New Guinea
A midwife educator
demonstrates the neonatal
resuscitation procedure during
an Emergency Obstetric Care
training session. Photo: Oil
Search Health Foundation