This paper from Eurodad looks at whether the private sector development addresses the challenges faced within pro-poor development, and draws on past experience of privatisation, especially within the context of privatisation. It emphasises that the sequencing of private sector development policies is crucial and that there are variables that need to be thoroughly considered before embarking on any pro-poor development strategies adapted to the particular country context. These variables include: institutional capacity in the country; the design and efficiency of the country's regulatory framework; distributional mechanisms and safety nets in position to mitigate and minimise negative impacts of reform.