Evaluation Synthesis - Private Sector Engagement

Abstract

Cooperation between development policy actors and the private sector is becoming increasingly important, among other reasons because the development community anticipates that it will mobilise additional resources for achieving the Sustainable Development Goals (SDGs). Until now, however, the only research on whether the goals of such cooperation have been achieved has taken the form of evaluations and academic studies on individual projects and instruments. This evaluation synthesis attempts to fill this gap by systematically analysing the available evidence on private sector engagement within German and international development cooperation. Overall, the evaluations and studies included in the analysis report mainly positive effects on investors and donors, intermediaries, partner countries and target groups. However, various analyses, including an assessment of the quality of the evaluations, suggest that a positive-results bias is present. The evaluation synthesis puts forward recommendations on defining indicators, on measuring and assessing impacts and additionality, on knowledge management, and on considering the transaction costs involved in cooperating with private sector actors.