Private-sector solution to the refugee crisis

be leveraged to mobilise 300 billion euros of capital for the developing world, changing millions of people’s lives for the better. The model is straightforward: first, blend public, private, and charitable contributions; second, invest the funds under rigorous private-sector standards, rather than entrusting them to profligate public-sector actors who often treat donor money with contempt.

Such blended finance vehicles, though in their infancy, have already been shown to work well elsewhere in the world. A World Economic Forum survey found that every $1 of public money invested in such initiatives attracted as much as $20 of private investment. And this does not even account for the benefits implied by improved accounting, tendering, and reporting procedures – all by-products of greater privatesector involvement.

This approach is especially appropriate at a time when many European countries are struggling with sluggish growth and face tight fiscal constraints. Only four EU members now spend the globally agreed 0.7% of gross national income on development aid.

The good news is that European governments increasingly seem to recognise the need to tap the potential of the private sector to support development. Last month, at a European Parliament plenary session in Strasbourg, the European Commission threw its support behind my plan to put the private sector front and centre in development projects.

But establishing private-sector investment as a key component of Europe’s development strategy is just the first step. The Commission must now put words into action, which means engaging directly with the private sector and business communities. By stabilising Middle Eastern societies and advancing their economic development, Europe can help to stem the influx of migrants and asylumseekers today, while securing new markets, business opportunities, and partnerships tomorrow.