Private sector and development: common or conflicting interests?
“Profit and developmental objectives can be obtained together, but more needs to be understood about where the alignment of interests takes place” explain ECDPM’s Bruce Byiers and Anna Rosengren in a new discussion paper on the private sector’s role in development. But before we can identify common interests, it is important to be clear about what we mean by "engaging the private sector". The paper distinguishes between “private sector development” - focusing on domestic economies of poor countries - and engaging the “private sector for development” - making international business contribute to inclusive growth. Although there are overlaps, these two forms of engagement operate through different channels and thus have different practical implications and impacts. A clear understanding of reasons behind past successes and failures should form the basis of ongoing policy discussions.
 
UN proposes new ways to raise USD 400 billion a year for development
Substantial amounts of money are needed to address global challenges, but low levels of domestic savings and limited access to private capital flows in developing countries and fiscal pressures in donor countries makes raising sufficient financial resources difficult. Innovative sources of development financing might be a way to fill the gap. The World Economic and Social Survey 2012: In Search of New Development Finance, released this week, analyses current and proposed mechanisms for innovative development finance such as coordinated taxes on carbon emissions, air traffic, and financial and currency transactions. The report confirms their potential, but concludes that realizing this requires strong political will, new types of international agreements and changes in global governance.
 
How can Tanzania stop losing tax revenue
A new report estimates that Tanzania is losing around USD 1 billion a year in revenues through tax evasion, capital flight and tax incentives. Lost revenue could be used to double the education and health budgets and triple spending on agriculture, argues the report. This would also allow Tanzania to reduce its reliance on foreign aid. The report makes several recommendations to the government for a more radical approach to raising sufficient tax revenues. An effective tax system is also vital in light of future income from Tanzania’s recently-discovered oil and gas.

Engaging African diasporas for peace: cornerstones for an emerging EU agenda
A more proactive and strategic EU engagement with African diasporas in order to tap into their specific knowledge and experience could help to adapt EU policies in the field of peace and security, argues a new paper from the Institute for Security Studies. Initiatives can range from very loose forms of interaction like information sharing or informal dialogue to the involvement of groups in concrete projects or formalised forums. Better coordination within the EU institutions and with EU Member States could lead to a more coherent conflict analysis and the mainstreaming of diaspora engagement. The Joint Africa-EU Strategy’s Peace and Security Partnership and EU regional strategies for the Sahel and the Horn of Africa can also provide frameworks to address the role of diasporas. A more profound and systematic approach could also be developed the paper argues.
  
EU policymakers: who is who and what can they do?
The European Peacebuilding Liaison Office updated its overview document mapping roles and responsibilities of EU policymakers relating to peacebuilding and conflict. It also outlines of the division of labor between the different actors involved. As the document has been prepared as a resource for civil society organisations working on conflict, it also identifies opportunities for advocacy work.

Additional Articles in the Weekly Compass-Extended Version

• “Can Policymakers Stem Rising Income Inequality?”ask David Coady and Sanjeev Guptaon the IMF Public Finance Management Blog.
• On his blog, Chris Blattman comments on a new book by William Easterly and Ross Levine looking into the European Origins of Economic Development. 
• A new UNDP publication discusses the roles and opportunities for the private sector in Africa's agro-food industry.
• A new working paper by the World Bank on regionalizing infrastructure for deepening market integration focuses on the case of East Africa.  
• A commentary by Sir Ronald Sanderson about the Economic Partnership Agreement between the EU and the Caribbean was published on bilaterals.org.
• “Doing business to fight poverty?” is the question behind the evaluation of the Belgian Investment Company for Developing Countries undertaken by the NGO 11.11.11.
• The International Peace Institute published a policy paper entitled “Organized Crime, Conflict, and Fragility. A New Approach.”
• The Failed States Index “belongs in the policy dustbin” says ODI’s Claire Leigh on The Guardian’s Poverty Matters blog.
• The United Nations published the Millennium Development Goals Report 2012 outlining what it would take to achieve the MDGs in time.