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The ‘New Minimalist Approach’ to Private‐Sector Development: A Critical Assessment
Author(s) -
Altenburg Tilman,
Von Drachenfels Christian
Publication year - 2006
Publication title -
development policy review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.671
H-Index - 61
eISSN - 1467-7679
pISSN - 0950-6764
DOI - 10.1111/j.1467-7679.2006.00331.x
Subject(s) - private sector , public economics , public sector , scale (ratio) , empirical evidence , property rights , business , psychological intervention , field (mathematics) , industrial organization , public relations , economics , political science , microeconomics , economy , economic growth , psychology , philosophy , physics , mathematics , epistemology , quantum mechanics , psychiatry , pure mathematics
Recent literature on private‐sector development emphasises the need to establish a ‘level playing field’ and tends to disregard selective supportive interventions. The most commonly highlighted elements are administrative simplification and effective property rights policies, with business services largely left to private providers ‐ what we call the ‘new minimalist approach’ (NMA). However, the NMA is based on certain unrealistic assumptions and is barely backed by empirical evidence. A range of complementary public policies is needed to create competitive sectors and overcome internal constraints, especially in small‐scale economies.