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Österreichische e ntwicklungspolitik 2013. private s ector Development Reiner, Christian/Cornelia Staritz (2013). Private sector development and industrial policy: Why, how and for whom?. In: ÖFSE (Hg.) Österreichische Entwicklungspolitik, Analysen ▪ Berichte ▪ Informationen mit dem Schwerpunktthema “Private Sector Development – Ein neuer Businessplan für Entwicklung?”, Wien, 53-61. Private sector develoPment and industrial Policy: Why, hoW and for Whom? Christian Reiner, Cornelia Staritz introDuction and argue that structural change is the central engine and outcome of economic development. They stress the exist- There has been a shift towards private sector develop- ence of substantial market, coordination and system fail- ment (PSD) in development approaches since the early ures which requires governments to shape the economy 1990s which stresses the important role of the private by interfering with markets, pursuing selective policies fa- sector in furthering economic development, generating voring certain sectors that are more productive and offer employment and reducing poverty. The focus on the pri- higher learning possibilities and externalities, or by being vate sector goes along with a shift in development think- directly involved in production activities (Amsden 1989). ing that started in the 1980s away from the central role of the state as the prime agent of development towards PSD programs (in accordance with general development the private sector, market forces and competition. In the policy) broadly followed the first camp opposing selective 1980s this shift was promoted by key international organ- interv