Concord’s Preliminary Reaction to the European Commission Communication.

Preliminary Reaction
CONCORD finds that support to private sector in development should contribute to fighting poverty in all its dimensions, injustice and inequalities, promoting human rights, sustainable development and dignity for all. The EU needs to ensure that EU private companies operating on the ground do no harm, behave in a sustainable way and pay their fair share of taxes. When using private sector financing for development purposes the EU must make sure that human rights and public interest are safeguarded.
Key messages:
• EU support to and cooperation with private sector must contribute to fighting poverty and inequalities, promoting human rights, sustainable development and economic justice. Economic growth and job creation alone is not enough.
• CONCORD welcomes some positive points in the communication such as support to the informal and microfinance sectors; strengthening medium and small enterprises, empowering women entrepreneurs and workers.
• Local actors and markets in partner countries must be prioritized
• PPPs are not a solution to be applied across all development contexts
• Blending grants and loans must still prove its financial and development additionally
• Multi-stakeholder approaches and mechanisms should be established to pre-assess, monitor and evaluate private sector initiatives in a transparent way and that intended beneficiaries are centrally involved in these processes.