The paradigm surrounding international development is undergoing a profound structural shift. For decades, the dominant model positioned state actors and multilateral donors as the primary architects of development cooperation, with the private sector relegated to a secondary role—either as a commercial contractor or a donor through corporate social responsibility.
Today, the scale of global challenges, particularly across the African continent, demands a radically integrated approach. Achieving the Sustainable Development Goals (SDGs) by 2030 requires trillions of dollars annually—a sum no public treasury can (or intends to) mobilize alone. This reality has driven new strategic frameworks for several organisations, including the European Union – a major donor and at the same time a development actor - notably with the European Union’s Global Gateway strategy. Aiming to mobilize over €300 billion in investments— half of which targeted toward African infrastructure, green transition, energy, and digital connectivity—the Global Gateway explicitly positions private sector investment as a core engine of sustainable geopolitical and economic partnerships. Other organisations, as well as bilateral donors, are following the same trend, adopting strategies and designing financial tools able to catalyse private capitals to ‘complete’ (decreasing) public development aid. The United Nations have in a way launched this trend by bringing the private sector around the table as key actors when defining the SDGs; this is the case now also for national development plans, designed by governments in close dialogue with private actors, expected to contribute significantly to financing such plans.
However, as scholars and practitioners of international relations and political economy, we must critically examine not just the scale of capital mobilized, but the underlying conceptual, normative, and regulatory frameworks governing private sector engagement.
The Moral Imperative: Reframing Worth and Value
Mainstream economic theory and international relations have long operated on the implicit assumption that the primary measure of an entity's value - be it an individual, a corporate or a sovereign nation - lies in its capacity to accumulate material wealth and project power. Success is traditionally calculated through growth metrics, gross domestic product (GDP), market share, or return on investment (ROI). Yet, this relentless drive for accumulation has too often generated hyper-competition and fragmentation, leading to injustice and conflicts. Integrating ethical and spiritual perspectives offers a necessary counterweight to this reductionist worldview, challenging the foundational premise of material accumulation by asserting that true honour, happiness, and progress lie in enlightenment, justice, and the determination to advance the universal good. The following quote explains it well:
“…the honor and distinction of the individual consist in this, that s/he among all the world’s multitudes should become a source of social good. Is any larger bounty conceivable than this, that an individual, looking within himself, should find that s/he has become the cause of peace and well-being, of happiness and advantage to his fellow men?” (The Secret of Divine Civilization, Abdu’l-Bahà)
When we extend this lens to international finance and development, capital stops being the goal and becomes merely an instrument. Progress is no longer measured by profit margins, but by how effectively our financial frameworks build trustworthy relationships, foster human capacity, serve global justice, and contribute to the collective well-being of humanity – rather than by the capacity to amassing fortunes.
When applied to development partnerships, this perspective demands a fundamental shift in how each actor is valued:
The Individual is seen not as a passive consumer or cheap labour, but as an active protagonist endowed with potential to contribute to the advancement of civilization.
The Enterprise is evaluated not by profit margins but by its alignment with local needs and its contribution to social cohesion and well-being.
The Nation or Regional Block is measured by its capacity to enable mutual flourishing rather than by commercial dominance or market expansion.
Legislative Accelerators: From CSR to Binding Norms
Shifting deeply entrenched paradigms is never easy, especially when measuring "soft" ethical values is far more complex than tracking standard financial metrics. It requires political commitment, supported by legal frameworks that can accelerate this shift. The European Union is actively codifying this paradigm shift into binding legal frameworks, making mandatory some most relevant responsible business practices, so far only ‘recommended’ (while agreed upon by multi-lateral organisations such as OECD or ILO). This regulatory evolution forces private market actors to realign their core operations with responsible and ethical imperatives; some major examples:
The Corporate Sustainability Due Diligence Directive (CSDDD): The CSDDD represents a landmark legal shift from voluntary Corporate Social Responsibility (CSR) to mandatory due diligence across global value chains. By requiring large companies operating in the EU to identify, prevent, mitigate, and remedy adverse human rights and environmental impacts throughout their upstream and downstream operations, the CSDDD legally disrupts purely extractive corporate behaviour. In Africa, this shifts supplier dynamics from cost-minimization toward long-term human safety, environmental stewardship, and fair labor standards. While the legislative journey of this norm has not been easy and finally resulted as much less ambitious than its initial draft, it still provides a first attempt to translate EU values into legislation relevant for private sector to be a reliable like-minded partner.
Corporate Sustainability Reporting Directive (CSRD): By standardizing ESG disclosures, the CSRD compels firms to measure value through non-financial metrics—making environmental impact, worker dignity, and community well-being visible alongside financial balances.
EU Deforestation Regulation (EUDR) & Forced Labour Ban: These regulations enforce a market-entry requirement tied directly to ethical conduct, effectively using trade leverage to uphold global commons and human dignity.
These policies demonstrate how public regulation can reshape business incentives, pushing corporate actors toward a new way to see themselves as a mechanism for societal progress rather than isolated wealth extraction. Not longer the ‘bad guys’, but key partners bringing the essential knowledge, skills, strategy and finance required to close the development gap. And while some ‘bad guys’ can still be around, regulations are there not to let them survive.
Conclusions
This evolving intersection of policy, corporate ethics, and global development requires engagement from both academic and professional communities:
For IR & Political Economy Scholars: We must move beyond classic realist or market-liberal frameworks. Applying constructivist and normative lenses allows us to better understand how ethical and spiritual values, together with legal mandates shape state and corporate conduct in global governance.
For Development & Policy Practitioners: The operational priority must be ensuring that compliance does not become an administrative burden for our partners, in Africa and beyond. Blended finance instruments, public-private dialogue platforms, and technical assistance must be deployed to help local enterprises meet sustainability standards, and not because demanded by Europeans but because it becomes clear that these standards and reasonable business practices benefit their countries more than anyone else. Practitioners must ensure that private sector engagement moves beyond risk mitigation to actively foster local capacity generation and social impact.
By replacing the doctrine of wealth accumulation with a commitment to collective well-being and civilizational advancement, scholars and practitioners can jointly shape development partnerships capable of fulfilling the promise of the SDGs and advancing a more equitable international order.