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The objective of development is to produce a sustainable society. A
society which creates wealth, is just, is safe, and is inclusive. A
society that generates a living income for current households
without jeopardizing future generations. How this can be achieved
is not yet clear, but much is known from research and also from
practice. The private sector is increasingly praised as an engine
of economic growth. This belief has led to significant efforts to
develop the private sector in developing countries. Development
partners prioritize private sector development, and governments are
pushed to do the same and provide huge incentives to attract
investment. However, this has not been without controversy. China's
success, largely due to the use of state-owned enterprises, has
shown that the state can still play an important role in the
production of private goods and services. This book does not
attempt to act as an arbiter in this debate. We recognize the roles
of both the state and the private sector, but we also recognize
that these roles must be balanced, and the balance should be based
on the context of each country. Achieving a balance between the
state and the private sector requires a strong civil society that
controls both the state and the private sector and promotes the
further development of society. Everyone must play their role and
all actions must be orchestrated through various institutions. We
try to provide some insights on how this can be achieved.
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