Economic policy

© GIZ/Markus Kirchgessner

German development cooperation focuses on the quality of economic growth. Environmental and social issues are paramount.

Economic-policy approaches and instruments play an important role in the Sustainable Development Goals (SDGs) of the 2030 Agenda. They have a significant impact on not only the economic situation of the partner countries of German development cooperation, but also their social and ecological development. The basis to pursue the SDGs are stable framework conditions, efficient institutions, functioning markets and effective economic incentives.

However, the economic challenges and priorities of partner countries vary greatly. Some countries are still focused on poverty reduction and inclusive growth, while others have turned their attention to establishing industries, economic diversity, ecologically sustainable economic development and adapting to climate change. For some countries, topics such as equal opportunities, expansion of the middle class and job creation are gaining in importance due to displacement and migration and the digitalisation of the economy.

Against this backdrop, it is the quality of economic growth that provides the starting point for GIZ’s economic-policy advice, which covers the following topics:

  • Smart growth: Partners receive support in building an innovative, knowledge-based economy as the basis for improving productivity and competitiveness. Economic policy is based on scientific findings.
  • Green growth: The objective here is ecological sustainability. Economic development must not be to the detriment of future generations. GIZ provides advice on the transition to a green economy and supports environmentally friendly economic development that is both resource-efficient and adapted to the consequences of climate change.
  • Inclusive growth: GIZ supports its partners in their efforts to include all sections of the population in economic processes.
  • Integrated growth: GIZ advises partners who wish to create better framework conditions for the exchange of goods, services and investments across borders.
  • Resilient growth: Economic development in partner countries is often subject to considerable fluctuation. GIZ helps to improve stability and supports partner countries in reducing their vulnerability to economic crises.
  • Governance for growth: Strong institutions and transparent, participatory decision-making processes are essential for sound economic policy and quality growth. GIZ advises its partners on these issues.