Members of a UN Commission on 'Private Sector and Development' have commended the model of economic reforms followed by India, which has led to multinational corporations becoming instruments of development along with domestic industry and entrepreneurs.
In the developing world, some countries, like India, have been "very successful" in achieving rapid growth and overcoming poverty over the past 20 years, they said.
The primary responsibility for development lies with the developing nations themselves. The rich countries should do their part but, more frequently than not, policy failures could be found in developing nations themselves, the Commission said in its report "Unleashing Entrepreneurship: Making Business Work for the Poor."
The Commission, convened by Secretary-General Kofi Annan, has stressed the need for developing local entrepreneurship and making necessary changes in the local laws that would make foreign investors comfortable and attract investment.
The primary responsibility for achieving growth and equitable development lies with the developing countries, the report said, adding, "this responsibility includes creating the conditions that make it possible to secure the needed financial resources for investment."
The 15-member Commission was co-chaired by Canadian Prime Minister Paul Martin and Director of Yale University's Center for Study of Globalization Ernesto Zedillo and former President of Mexico. Among its members was Rajat Gupta, senior partner Mckinsey and Co.
