Helping Developing Economies Grow: the UK Government Approach

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By Geoffrey Chongo: Head of Programmes, Jesuit Centre for Theology Reflection

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The last week of February has been an eventful week for me. I have had a rare privilege of participating in a trade out of poverty event in Parliament, an event that was graced by the Minister of State for International Development, Mr. Alan Duncan. My role in the event was to give a Zambian perspective as a response to the UK’s new approach of supporting developing countries’ economic development agenda.

The UK’s new focus on economic growth through private sector development is welcome. Like they have rightly put it, economic growth is an important means of raising people’s incomes and reducing poverty in the developing world – it creates jobs and opportunities for poor people to support their families and build more stable futures. However, I hasten to say that from my experience, the manner of this growth will determine whether it will raise incomes and reduce poverty in an equitable way. Growth alone is not sufficient to reduce poverty unless it is guided so that it is inclusive. Otherwise it creates other concerns like income inequality.

UK Government should therefore ensure that the growth it supports is inclusive by way of including small businesses, where most poor people work, in its growth approach. Small businesses should be consulted on the support that the UK Government intends to give to private sector development so as to incorporate their needs.

It is also important to note that small businesses in developing countries particularly Zambia have developed entrepreneurial mindsets and thus any support given to them is not likely to be treated as aid simply for consumption but for applying in their small businesses. Reflecting on the blog comments on the article that we wrote on how to achieve pro-poor economic development it is evident that the role of small businesses in equitable economic development cannot be ignored. Small businesses’ challenges need to be addressed if they have to be helped out of poverty.

It was interesting to see Government agreeing to an open discussion on a very important government policy. It is my hope that CAFOD will continue to work in this area to effectively influence government policies as they relate to the poor.

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