Minimising the risk of negative market distortions in private sector engagement

A practical framework

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This report reviews how Private Sector Engagement (PSE) interventions may give rise to negative market distortions, in three areas: 

  • reinforcing the market power of targeted companies at the expense of other firms
  • raising barriers to market entry
  • reinforcing information asymmetries

The Donor Committee for Enterprise Development's (DCED) working group on PSE commissioned this report as an initial step to explore ways to mitigate the risk of market distortions in PSE.