Investment and advisory: Case studies for private sector development in Papua New Guinea and China

Abstract

The importance of the private sector in fostering economic development has been widely accepted. However, little has been written on the effectiveness of aid's support for private sector development. This paper presents case studies of how the International Finance Corporation, a member of the World Bank Group, supports two private institutions in Papua New Guinea and China to increase the access to finance to underserved groups. It will also highlight the benefits of IFC's combined approach of investing in the companies (investment services) and providing technical assistance (advisory services) to build organizational capacity.