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Contributions from
the Column
Studies and reports
Donor harmonisation is still in the early stages
Somalia between hope and scepticism
Private sector as engine for development
Debating development and the private sector
11/2004 |
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[ Reconstruction of Afghanistan ]
Private sector as engine for development
Since 1990, Vietnam has managed to reduce the share of its population that must survive on less than a Dollar per day from 58% to 29%. However, with an average annual per capita income of $ 480, Vietnam remains a very poor country. The most important engine for development in Vietnam is economic growth, which amounted to more than 7% in 2003. The private sector plays a major role, which is particularly true of small and medium-sized enterprises. Germany and Vietnam agreed at government talks in mid-September to cooperate more intensively in the area of economic reforms. This year, funds totalling Euro 43 million were made available for German-Vietnamese development cooperation.
The talks centred on a structural adjustment credit, which will help Vietnam to reform the private sector. Germany is backing these political reforms, as are France and the Asian Development Bank. All summed up, Euro 120 million will be available in loans. The German share of Euro 20 million will go along with consulting services at the national and local level. According to the Development Ministry in Berlin, German-Vietnamese cooperation is thus taking a new direction.
A further focus of the talks was the subject of environmental protection. Vietnam is one of the countries with the largest biodiversity in the world. Plant and animal species must be protected – not least from the harmful effects of the economic boom. Both governments have agreed to a loan and specialist advice for a large national park in central Vietnam project. Numerous rare plants and animals live in the park’s sensitive ecosystem. Support measures are to ensure that the livelihood of the population on the fringes of the park will not be affected. (ell)
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