Promoting Inclusive Market Development UNDP s Private Sector Strategy

Promoting Inclusive Market Development UNDP’s Private Sector Strategy Private Sector Division, Partnerships Bureau / BDP Casper Sonesson, Policy Advisor DRR/DCD Induction Workshop April 9, 2008 1

Outline o Partnerships Bureau overview o Private Sector and UNDP o The role of private sector in development o New UNDP Private Sector Strategy o Support from the Private Sector Division 2

Partnerships Bureau New York o Division for Resource Mobilization o Communications Office o Private Sector Division o Division for Foundations Affairs o Civil Society Organizations Division o Division for UN Affairs o Executive Board Secretariat o Multi-Donor Trust Funds Unit o Japan Affairs Unit Liaison Offices o Washington, Brussels, Geneva, Copenhagen, Tokyo 3

Private Sector and UNDP Strategic Plan 2008 – 2011 o o o Private sector as a recognized partner and stakeholder Markets, private sector and economic development as one important pillar / outcome under poverty reduction Markets and private sector referred to in each of UNDP focus areas New UNDP Private Sector Strategy o Promoting Inclusive Markets, 2007 Private Sector Division o o Matrix arrangement PB / BDP, 2007 Mandate to support and coordinate UNDP’s private sector activities, including partnerships and private sector development 4

A vibrant Private Sector is a key component in combating poverty Economic Growth is a pre-requisite for poverty alleviation The Private Sector Drives Economic Growth and generates: - Jobs - Entrepreneurship - Public revenues and distribution options - Provision of needed products and services - Solutions / contributions for MDG achievement Source: OECD 2004, Accelerating Pro-poor Growth Through Support for Private Sector Development 5

Evidence is emerging that core business assets need to be deployed in order to achieve core business objectives while including the poor R n CS Development tio nera e Pro-poor business benefits ew G N models / inclusive markets o aditi Tr R al CS n Philanthropy • Contribution of financial or in-kind resources to development projects Relevance to UNDP strategy priority areas: 5. CSR for inclusive markets and MDGs Policy dialogue / advocacy CSR / Social investment • Social investment that is strategic to the core business and that contributes to achievement of the MDGs 5. CSR for inclusive markets & MDGs • Dialogue which contributes to more effective governance institutions, rules, policies and processes • Enterprise solutions that accelerate and sustain access by the poor to needed goods and services and to livelihoods opportunities Business benefits 1. Policy & institutional infrastructure 1. Policy & institutions 2. Value chains 3. Pro-poor goods & services 4. Entrepreneurship 6

The targets of UNDP’s interventions: Empowering the poor as entrepreneur, employee, consumer “I have seen so many cases where this type of business does make a difference in all sorts of countries. It does give an income to poor people and it does give them hope. ” 200 direct employees, all from local communities Nancy Abeiderrahmane* Founder & CEO Tiviski Dairy Mauritania 1, 000 suppliers, mainly nomadic herders A successful business model: from collection, to processing, and to distribution 7 *one of 50 entrepreneurs from GIM Initiative

How UNDP PS Strategic Priority Areas can help overcome Nancy’s barriers 1 Nancy’s barriers Establishing the Policy and Institutional Infrastructure • Lack of government support and regulation of milk industry • International regulation as an hurdle to exportation 5 Promoting CSR in support of the MDGs and Inclusive Markets • Bad cultural perception towards milk selling • Dispersed sources of milk (nomadic herders) • Disorganized business sector with no pre-existing supply or distribution networks • Lack of business knowledge among the supply chain • Hostile climate and poor land transportation facilities 2 Facilitating Pro-Poor Value Chain Integration • Difficulty to secure financing 4 Fostering Inclusive Entrepreneurship 3 Facilitating Investments in Pro-Poor Goods and Services 8

UNDP Private Sector Strategy Promoting Inclusive and Sustainable Markets: ü- Profitability ü- Participation of the poor ü- Human development impact ü- Sustainability Implementation: Internal – New Private Sector Division, Regional Bureaus, Country Offices, Community of Practice External – Partnerships as a key approach to deliver, including strengthen links to UN agencies including cooperation with UNIDO, ILO, UNCTAD, ITC, FAO, others 9

UNDP Private Sector Strategy UNDP Examples Growing Sustainable Business – Unilever; SPAR Ghana – Cadbury sustainable cocoa Voluntary certification in supply chains 3 Investments in Pro-Poor Goods & Services Microfinance and inclusive finance (UNCDF / UNDP) Public-Private Partnerships for Service Delivery (PPPSD) Access to energy – LPG initiative 4 Inclusive Entrepreneurship Enterprise Africa Bulgaria - JOBS programme Angola Enterprise Programme (with Chevron) 5 CSR in support of the MDGs & Inclusive Markets Skills 2 Pro-Poor Value Chain Integration Finance Vietnam – new Enterprise Law Belarus – public-private dialogue on business constraints Law UNDP Private Sector Priority Areas 1 Policy and Institutional Infrastructure Core Advoca cy & Social Busin Dialogu Investments ess e UNDP-led Global Compact networks (40+ countries) Coca-Cola - water Oil & gas – governance, local development Microsoft, Cisco etc – ICT for development 10

Private Sector Division Support o Lead corporate strategy, policies and guidelines on work with PS o New Community of Practice 2008 - Knowledge management o Lead global programmes / approaches for PS work, e. g. - Growing Sustainable Business - Growing Inclusive Markets o Assist RBx and RCs to support PS strategy implementation o Support COs with designing and implementing country level PS strategies o Liaise with other UN agencies on PS issues, cooperation o Facilitate and manage PS partnerships at global level o Position and advocate for UNDP’s private sector work globally 11

Some Key UNDP-led Initiatives Growing Inclusive Markets (GIM) Spanish MDG Fund Research on low-income markets, disseminate knowledge and inspire action • Focuses on core business activities, Southern perspective • Platform for collaboration – 20+ stakeholders • First Global Report to be launched in 2008 • Tools for country research & reports üWindow on private sector development and public private collaboration for UN Country Team proposals • Growing Sustainable Business GSB engages the private sector in innovative partnerships grounded in market-based activities Working in more than 70 partnerships with the domestic and international private sector Operational in 19 countries MDG Call to Action Public-Private Partnership for Service Delivery Enabling environment for PPPs for local service delivery for the poor Capacity development for N/L gvts Quick Win PPPs for local service Exploratory new areas: Local content in extractive industry Voluntary certifications in supply chains World Business & Development Awards 12