Economics Report: Private Sector & Sustainable Development

This economics report examines the evolving role of the private sector in sustainable development, transitioning from a development tool to a key development agent, particularly in the context of global value chains. The report highlights the increasing influence of the private sector, often in contrast to the growing challenges faced by civil society. It further explores the role of public-private partnerships (PPPs) as a mechanism to improve public assets and services, especially where governments lack sufficient funds, and how the private sector contributes to urban service delivery, infrastructure development, and innovative spatial planning. The report emphasizes the benefits that governments can derive from private sector investment, along with the need for strategic approaches to meet the infrastructure needs of an urbanized world, and references key literature in support of its analysis.

Running head: ECONOMICS
Economics
Name of the Student
Name of the University
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Table of Contents
Answer to question 1:.................................................................................................................2
Answer to question 2:.................................................................................................................2
Reference List:...........................................................................................................................4

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Answer to question 1:
The central role of the private sector in sustainable development has shifted towards
the new development where the private sector is no longer considered to be a development
toll but instead they are regarded as the development agent. The unprecedented power of the
private sector has changed the development system globally. Private sector has turned out to
be the key development actors because of their control in the global value chain (Taussig,
2013). Accordingly, relief presenters progressively target to recruit the private sector as the
development partner in order to mobilise private investment to invest in developing countries.
Meanwhile, the growing influence of the private sector has gone in hand with the
crisis in civil society space. While the civil society internationally is becoming more global
driven, diverse and inclusive of gender, its member is facing increasing obstacles in several
context of the countries. However, several nations have reported regarding the serious threats
to civic freedoms (Bernanke et al., 2015). The circumstances that overseas assistance play a
less central role than the private finance for numerous countries has encouraged few
governments to track the CSOs, especially when they are found to get in the way of the deals
amid the governments and the private sector.
Answer to question 2:
For governments that is seeking to expand its infrastructure, the government sector
and private sector partnership provides an option that lies somewhere amid the public
procurement and privatisation. Ideally, the public private partnership brings forward the
competencies, efficiencies and capital in improving the public assets and services when the
government does not have sufficient funds (Goodwin et al., 2015). The engagement of the
private sector has been pivotal in the success of the several urban services delivery projects

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not only in the advanced economies but also in the delivery of the service projects in the
emerging economies.
The public private partnership has enable the development and the management of the
infrastructure along with the provision of public private service is considered as the strategic
way of meeting the growing infrastructure needs of the urbanized world. The government
entities can be more successful in harnessing the private sector investment by offering
multiple benefits in the implementation of the transformation strategies by assisting the
public sector in providing additional investment as the private sector capital and economic
development (Sunley, 2017). The private sector helps in bringing innovative approaches in
the spatial planning with human centred urban design by assuring greater efficiency and time
commitments.

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Reference List:
Bernanke, B., Antonovics, K., & Frank, R. (2015). Principles of macroeconomics. McGraw-
Hill Higher Education.
Goodwin, N., Harris, J.M., Nelson, J.A., Roach, B. & Torras, M., (2015). Principles of
economics in context. Routledge.
Sunley, P. (2017). Principles of economics.
Taussig, F. W. (2013). Principles of economics (Vol. 2). Cosimo, Inc..