On Oct. 16, I spent an afternoon listening to thoughtful panels on blended finance, innovative partnerships, and catalytic capital at Devex Impact House, on the sidelines of the World Bank annual meetings in Washington, D.C. The concept of “return on investment” was undoubtedly part of the conversations, but what I wanted to see more of is a deeper, more candid discussion about profit itself.
For an occasion so invested in engaging the private sector, development groups and NGOs were hesitant to hint at a key element of partnership with the sector — the very purpose for which private enterprise is founded: Seeking profit through value creation.
The silence saddened me. It indicates a greater problem in global development organizations: They may support the idea of partnering with the private sector while being morally uncomfortable with attaching themselves to a for-profit motive. Yet what enables such partnerships to work is a mutual benefit that, in the case of any corporation, is based on making a profit.