This submission was provided to the Joint Standing Committee on Foreign Affairs, Defence & Trade to inform them on the context of private sector engagement in the Pacific island region.

Summary of key points

• Private sector growth is a key contributor to alleviating poverty 
• Interventions to promote growth must promote inclusivity and minimise risks associated with inequality 
• The private sector already ‘does’ development and has a shared interest in achieving ‘development outcomes’ 
• In order that aid can be used effectively and achieve value for money, donors need to be fully apprised of the context(s) in which they seek to operate 
• The private sector of the Pacific is not the same as the private sector of Australia 
• The private sector of one Pacific island country may differ significantly from the private sector of another Pacific island country owing to a number of factors 
• Interventions to support private sector growth in the Pacific island region should focus on ‘home-grown’ businesses not on businesses located in Australia 
• To develop the private sector, a diversity of markets needs to be identified and the significance of domestic markets should not be overlooked 
• There is much that we already know and this knowledge needs to be brokered and leveraged effectively to enhance future activities 
• To maximise available opportunities and alleviate the burden of transaction costs, bilateral and multilateral donors need to work together strategically 
• Regional ‘solutions’ should be approached with caution 
• Opportunities to work with sub-regional groupings should be explored