Private sources now represent nearly 90 percent of financial flows to developing countries. The private sector creates nine out of ten jobs in the developing world and provides an important pathway for partner countries to achieve self-reliance. It is also the driving force behind many new innovations that help solve development problems. To foster greater collaboration between USAID and the private sector to advance development, USAID officially launched its new Private Sector Engagement (PSE) policy in December 2018.
In Peru, USAID has a long history of partnering with the private sector to implement enduring solutions that help address some of the most complex development challenges. The launch of the PSE policy helps USAID pivot closer to unleashing the power of the private sector to achieve shared development objectives. USAID/Peru endeavors to create new and build on existing partnerships that further common priorities across multiple sectors. Promoting sustainable forest management and green businesses that balance economic growth with biodiversity conservation is paramount for successful PSE. In rural economies once dominated by coca cultivation, USAID’s successful track record in harnessing private sector interests and resources in remote and underserved areas is bolstered by joint investment in improved governance.
USAID/Peru will pursue other opportunities to partner with the private sector as it implements its new five-year strategy, 2020-2025.