Businesses operating in developing countries should use their influence to strengthen national government systems, rather than bypassing them if progress is to be made on global poverty reduction.

The recommendation is made in a new briefing published today by IDS. Private Foundations, Business and Developing a Post-2015 Framework calls on the private sector to be included in discussions about a replacement for the Millennium Development Goals (MDGs). It particularly highlights the positive role businesses could play in strengthening national government systems.

The briefing is published as government ministers, civil society leaders and UN officials meet in New York for the UN Development Cooperation Forum on 5 – 6 July. The Forum is set to review trends in development cooperation (development aid) and includes a roundtable on the role of private philanthropic organisations in development.

Dr Noshua Watson, IDS Research Fellow and author of the briefing will be attending the roundtable. Dr Watson also presented at a UN Special Policy Dialogue on private philanthropic organisations in advance of the 2012 Forum. She said:

“It is crucial that businesses and private foundations are given a place at the table during discussions around a new global development framework to replace the MDGs in 2015. The development landscape is radically changing and private foundations and businesses are playing an increasingly important role – both as donors and in delivery of development programmes. Integrating the private sector won’t be straightforward, but it is essential if a new framework is to make a real difference to global issues such as climate change and food security.”

Key recommendations include:

• Businesses should use their influence to strengthen national government systems instead of bypassing them.
• Businesses and private foundations must be included in global public policy forums.
• Private foundations should continue investing in innovative projects and should work more closely with civil society.
• Businesses should learn from aid agencies’ best practice and avoid duplicating existing development projects.

Download the In Focus Policy Briefing: Private Foundations, Business and Developing a Post-2015 Framework