Hercules or Sisyphus? Building capacity in the Asia-Pacific

The Australian Strategic Policy Institute has today released a new Strategic Insight publication, Hercules or Sisyphus? Building capacity in the Asia–Pacific by Roland Rich, the author of several books on democratisation and development.

The report recommends a broadening of Australia’ aid program for regional countries to facilitate the development of vital private sectors as the key to economic development.

‘Continuing to strengthen governments and civil societies in developing countries that have a weak private sector is not a recipe that can lead to national success. It ignores the critical necessity for a viable private sector.’

The report argues that a new strategy is needed to involve the private sector directly to help build the capacity of the business sector in developing countries.

The report recommends a ground-breaking strategic approach; amending the Australian tax rules to encourage companies to become directly involved in building private sector capacities in developing countries by allowing them to deduct from their taxable income the full costs incurred in providing such assistance.

‘Taxpayers in donor countries will not have to pay for this initiative. It is not to be funded from public money. Nor does it require additional bureaucratic machinery for implementation. Its major strength is that it is not a public sector initiative’ according to the report.