A report laying out innovative new ways to mobilise private capital in the fight against global poverty was approved by MEPs today.

A report laying out innovative new ways to mobilise private capital in the fight against global poverty was approved by MEPs today.

The European Parliament’s Development Committee backed proposals by ECRW Development Spokesman Nirj Deva which seek expand the way the EU partners with the private sector.

Areas where private sector resources could supplement public funds in developing countries include healthcare, education, water and sanitation.

Mr Deva’s Private Sector and Development report emphasises that local small and medium-sized businesses can flourish and become a driving force of the local economy if properly incentivised.

“This represents a new approach to development,” said the MEP for South East England. “Until now the EU has not entered into public private partnerships outside of infrastructure projects. If we took a broader approach and encouraged private sector involvement in areas where taxpayer contributions are simply not sufficient, we stand a much better chance of fulfilling some of the most challenging sustainable development goals.

“Both the potential and the need for private sector participation in tackling poverty is undeniable. The private sector is ideally suited to providing a sustainable base for mobilising domestic resources, which is the foundation of any aid programme.”

Mr Deva insists that over regulation of private firms involved in such schemes must be avoided it his ideas are to succeed.

The report will now be considered at a future session of the European Parliament.