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Paths Out of Poverty : The Role of Private Enterprise in Developing Countries

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  • International Finance Corporation

Abstract

Following on the work of previous, recent publications - Voices of the Poor, and the World Development Report 2000/01 - this report provides missing mechanisms by which people, and countries emerge from poverty, arguing that income, results to the extent that democracy, opportunity, and other positive factors encourage the productive units in the economy, i.e., private enterprises. It focuses on the sources of economic, and social mobility that lift people out of poverty: competition, deregulation, liberalization, and open trade, forces that weaken the nexus of privilege, that perpetuate poverty in many countries. Private enterprise as an engine of upward mobility, requires the proper support from the state, though extreme views - both the Marxist view of capitalist firms, and the extreme neoclassical model of a level playing field that makes lobbying ineffective - are clearly off base. Rather, the report reviews doing business and reducing poverty, based on the rule of law, and the establishment of sound economic policies. As well, innovations, supported by an adequate infrastructure, and the right privatization, and deregulation process, are factors conducive to sustainable economic expansion.

Suggested Citation

  • International Finance Corporation, 2000. "Paths Out of Poverty : The Role of Private Enterprise in Developing Countries," World Bank Publications - Books, The World Bank Group, number 14041.
  • Handle: RePEc:wbk:wbpubs:14041
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    Cited by:

    1. Topalli Margerita & Papavangjeli Meri & Ivanaj Silvester & Ferra Blerta, 2021. "The Impact of Foreign Direct Investments on Poverty Reduction in the Western Balkans," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 15(1), pages 129-149, January.
    2. Cynthia Benzing & Hung Manh Chu & Gerard Callanan, 2005. "A Regional Comparison Of The Motivation And Problems Of Vietnamese Entrepreneurs," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 10(01), pages 3-27.
    3. Hung Manh Chu & Cynthia Benzing & Charles Mcgee, 2007. "Ghanaian And Kenyan Entrepreneurs: A Comparative Analysis Of Their Motivations, Success Characteristics And Problems," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 12(03), pages 295-322.
    4. Hodge, Graeme, 2002. "Private Sector Development Strategy: Some Critical Issues," Centre on Regulation and Competition (CRC) Working papers 30610, University of Manchester, Institute for Development Policy and Management (IDPM).

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