2nd Annual Conference of the Private Sector Development Research Network

The coronavirus pandemic has brought a disruption of economic activity that has no precedent in this century, leaving millions of workers unemployed and a collapse of trade, investment and financial markets over the course of a few weeks. This crisis has highlighted the importance of coordinated public and private sector responses, how access to timely data and analyses is critical for decision-making, and the role of Development Finance Institutions (DFIs) in helping fill financing gaps during these difficult times.

This crisis has also showcased how private sector decision-making operates, and, most importantly, how flexible and agile firms can be under difficult circumstances. As the world recovers from the pandemic, it’s essential to take stock of lessons learned and use them to build a private sector that is more resilient and sustainable. Some research questions raised by current events are: What will the role of technology be for firms in the future? For example, digital infrastructure and internet services enable the use of technology in everyday business activities, including fintech, online businesses, telemedicine, etc. How does innovation influence firm performance and resilience? Supporting the private sector to harness innovation, while keeping a focus on enhancing sustainability, can put firms back on track to thrive, including implementing managerial practices that promote social inclusion and create good quality jobs.

Other important issues to consider are firm risk-management practices as well as support programs and policies to help firms manage risk. Evidence from the Aspen Network of Development Entrepreneurs suggests that 42 percent of small businesses are at risk of failure and a quarter have downsized operations significantly in response to uncertainty. Also, improving service delivery to the poor and increasing access to finance for small businesses is more important than ever. Finally, the role of globalization to promote development through the private sector and identifying those firms that have greater systemic impact is essential.

This virtual conference offers an opportunity to bring together staff of DFIs and donor agencies involved in private sector development with academics who study private firms and markets, from the fields of economics (such as industrial organization, international trade and investment), finance, business and development studies. It aims to provide a forum to present and discuss research, data, analysis and evidence from DFIs, think-tanks, and academic institutions; to set the agenda for future research relevant to global development challenges and the work of DFIs; and to foster research collaboration between DFIs, think tanks and academic institutions. It is intended for researchers who are interested in influencing practice and who are curious about how practitioners perceive the problems that they face, and for practitioners who want to learn from researchers.

The event will focus primarily on the actions and behaviors of private firms, investors, and markets rather than on government policy. It is differentiated from other conferences because of the markets it aims to focus – low income and low-middle income economies, but also the institutions it aims to engage in dialogue – DFIs, think tanks and universities with an active research agenda on private sector development. However, insights for policy and regulation of markets and firms are within scope.