2006
DOI: 10.1111/j.1467-7679.2006.00331.x
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The ‘New Minimalist Approach’ to Private‐Sector Development: A Critical Assessment

Abstract: Recent literature on private‐sector development emphasises the need to establish a ‘level playing field’ and tends to disregard selective supportive interventions. The most commonly highlighted elements are administrative simplification and effective property rights policies, with business services largely left to private providers ‐ what we call the ‘new minimalist approach’ (NMA). However, the NMA is based on certain unrealistic assumptions and is barely backed by empirical evidence. A range of complementary… Show more

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Cited by 38 publications
(29 citation statements)
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“…On the other hand, even extreme reductions in costs fail to encourage compliance among the majority of informal firms, owing to low benefits, limited ambitions, mistrust of governments, and the possibility of high recurrent costs of formalisation (Zinnes, 2009). This is consistent with arguments that the focus on registration costs emphasised historically by many donors is inadequate, as it neglects the need for proactive support for small firms (Altenburg & von Drachenfels, 2006;Arruñada, 2007).…”
Section: Strengthening Firm Incentives Capacity and Collective Actionsupporting
confidence: 82%
“…On the other hand, even extreme reductions in costs fail to encourage compliance among the majority of informal firms, owing to low benefits, limited ambitions, mistrust of governments, and the possibility of high recurrent costs of formalisation (Zinnes, 2009). This is consistent with arguments that the focus on registration costs emphasised historically by many donors is inadequate, as it neglects the need for proactive support for small firms (Altenburg & von Drachenfels, 2006;Arruñada, 2007).…”
Section: Strengthening Firm Incentives Capacity and Collective Actionsupporting
confidence: 82%
“…The issue of government intervention vs non-intervention as a policy imperative in the diffusion of technologies is part of a wider debate, but in the main 'selected intervention' has emerged as a viable option (World Bank, 2005;Altenburg & von Drachenfels, 2006). In the context of developing economies and e-government the first three major challenges identified by the World Bank's Centre for Democracy and Technology -infrastructure development, law and public policy, and the digital divide -are all areas in which government leadership and resources are required.…”
Section: Developing Countriesmentioning
confidence: 99%
“…Firm strategy and private sector development: In recent years, private sector development has become a key objective for developing country governments and donor agencies alike, and a broad literature on private sector development initiatives has evolved (see, for example, Gibbon and Schulpen, 2002;OECD, 2006). Much of this private sector development thinking has focused on formal institutions such as investment approval procedures, judicial systems to enforce property rights and contracts, and business-friendly labor regulations (Altenburg and von Drachenfels, 2006). However, as pointed out by the institutional strategy literature, developing country firms (DCFs) are often working through informal and network-based channels to circumvent internal resource constraints and external institutional constraints (Peng, 2003;London and Hart, 2004).…”
Section: Areas Of Convergencementioning
confidence: 99%