How Private Sector and Government Enhance Global Sustainability?

This discussion post examines the critical role of the private sector in achieving global sustainability, emphasizing its financial instruments, strategic approaches, and real-world examples like the African Guarantee Fund. It also explores how governmental entities can effectively harness private sector investment, expertise, and management capabilities by creating a favorable business environment, providing financial incentives, and supporting the development of managerial and marketing skills. The post highlights the importance of government regulations, pre-conditions for private company growth, and international programs to enhance the private sector's contribution to sustainable development goals.

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DISCUSSION

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1. How essential is the private sector in reaching global sustainability? And give
examples
Business sustainability is one term which states whether any company is responding to
their long-term and short-term financial requirements without hampering others or self-
ability. Some people though restrict sustainable development needs with other environmental
issues while many firms use it synonymously with CSR. In both the cases, global
sustainability obliges every firm make intertemporal trade-offs so that intergenerational
equity is safeguarded. Using such approach, many private firms have indulged themselves in
global sustainability practices, including financial instrument tools like grants, loans and
guarantees besides non-financial goals such as technical assistance and policy dialogue
( Bansal & DesJardine, 2014). A more strategic approach undertaken by private firms
realising synergies across global mechanism and practices allows them with flexible
application of resources and mechanisms under different contexts.
Examples include non-financial private sector engagement tools like sustainable business
promotion, policy dialogues and engaging with other business associations that lay direct
partnerships. Flexibility tools at an international level ensure that private sector together
fulfil the purpose behind sustainable development goals and maximise positive impacts on
global partnerships. One real world example that can be given here is the African Guarantee
Fund, a multilateral private sector engagement mechanism which tries to solve the issues
related to inefficiencies, fragmentation and duplication of development assistance required by
African SMEs. Several development finance institutions and donors implement SME
programs like an uncoordinated manner, by offering support in regional levels and by pooling
available resources (OECD, 2016).

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2. How can governmental entities be more effective in harnessing private sector
investment, expertise, and management capabilities?
The success of private sector companies largely depends on the support and guidance
provided by its state or governmental entities. Due to state regulations, private firms can
generate easier and attractive work climate on one hand, while on the other side, government
entities can limit impactful factors behind the establishment or development of companies.
Although the states or governmental entities do not behave as an executive authority, they are
seen as an important administrative service for gaining success in business ( Dzafic &
Babajic, 2016). To develop a thriving business enterprise, government entities can support
partner countries to establish pre-conditions essential for private company growth including a
propitious business environment, facilitation of entrepreneurship and infrastructure. Other
than this, government entities can motivate the private sector to develop a business model for
the poor marketplace by initiating funds and investments, facilitate the integration of poor
producers along with making policies and institutional frameworks less complicated for
inclusive market development (OECD, 2015).
To harness the expertise, governmental institutions can focus upon programmes and
developmental tools used at an international level which can strengthen and improve private
companies work environment. To enable a developed environment for initiative and expand
businesses in developing nations, states can develop assistance agencies which support
interventions using government fund to update regulatory and legal environment, rationalise
administrative processes, improve competition, reduce risks and develop capacity. For
harnessing managerial capabilities, it is significant that the private sector is provided with
managerial, technical and effective marketing skills to enhance product diversity, raise
productivity and expand businesses globally. Here, governmental institutions need to build a
framework condition for private sector employment and growth opportunity (OECD, 2015).

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References
Bansal, P., & DesJardine, M. R. (2014). Business sustainability: It is about time. Strategic
Organization, 12(1), 70-78.
Dzafic, Z., & Babajic, A. (2016). The Role of the Government in Entrepreneurship
Development: Evidence from Bosnia and Herzegovina. Economic Review – Journal
of Economics and Business, 14(1), 68-79.
OECD. (2015, ). Deepening Private Sector Engagement in Aid for Trade. Retrieved from
https://www.oecd-ilibrary.org/docserver/aid_glance-2015-12-en.pdf?
expires=1586489035&id=id&accname=guest&checksum=9EE377955C5774FD5430
2E034C15A244
OECD. (2016). Private Sector Engagement for Sustainable Development: Lessons from the
DAC. Retrieved from https://www.oecd.org/dac/peer-reviews/Highlights-from-a-Peer-
Learning-Review.pdf