United Nations: Members of a UN (United Nations) 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 Globalisation, Ernesto Zedillo and former President of Mexico. Among its members was Rajat Gupta, senior partner worldwide Mc Kinsey and Co of India.

In its report, the Commission calls for expansion in sustainable private sector investment so that it becomes the main driver of accelerated growth essential for reducing poverty.

"We need to build a true development coalition in which all the actors play mutually supportive roles Governments, public development agencies, the private sector, civil society organisations and labour unions," UN Secretary General said while launching the report yesterday (Mar 1, 2004).

Domestic private initiative and entrepreneurship, particularly within the small and medium enterprise sector and the informal sector should be encouraged, the report said. But it regretted that they are largely trapped in "disabling business environment".

It calls on the Governments to create an enabling environment for a competitive private sector to develop, including strong rule of law and a level playing field for all.

Private sector players driven by market-based incentives, it said have the capacity to contribute to important development goals. Multinational companies in particular stand to benefit from nurturing links with local entrepreneurs and small companies.

This, the members explained at press conference was something demonstrated in the Indian experience.

"Visit the tiniest town in the poorest country on market day and you will see this incipient private sector in action. The Commission aims to place the ambitions of these local businesses at the heart of the world's development settings," Prime Minister Martin explained.