Definitions

Private Sector Development (PSD)

Promoting economic growth and reducing poverty by supporting competitive markets and efficient services for labor, capital and infrastructure through sustainable investments such as:

• Commercial enterprises, value chain linkages, and financial service providers;
• Increased capacity/know-how;
• Institutional and enabling environment strengthening and legal, regulatory and enforcement reforms; and
• Integrating private sector participation in public sector projects.

Private Sector Engagement (PSE)

Deepening the impact of compact programs by:

• Consulting non-government actors to understand key growth sectors, obtain insights into program design and identify opportunities for collaboration during compact development and implementation; and
• Stimulating trade and investment opportunities to catalyze private sector interest, mobilize additional capital and foster commercial activity that complement MCC’s own direct compact interventions.

Private Sector Participation (PSP)

The overarching principle by which private sector is involved in providing services or infrastructure assets traditionally provided by the public sector.