DFID's PSD strategy's three pillars of access, competition and engagement have become more urgent and relevant as a result of the global economic crisis. The M4P market based approach is also of greater importance. Yet it is also clear that DFID and its donor and country partners must develop policy responses that take account of the changed context.

The output from this study will be a research paper for DFID and its partners examining the adjusted policy needs and priorities relating to the global economic downturn.

Six issues have been identified that demand further in depth study, and appropriate policy recommendations:

• Responding to regulatory pressures
• Responding to reduced access to finance and markets
• Business partnerships
• Analysis of current policy focus
• Responding to opportunities and the end of the downturn
• Identifying further research needs