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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. Outline. Partnerships Bureau overview Private Sector and UNDP

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UNDP’s Private Sector Strategy

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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


Undp s private sector strategy

Outline

  • Partnerships Bureau overview

  • Private Sector and UNDP

  • The role of private sector in development

  • New UNDP Private Sector Strategy

  • Support from the Private Sector Division


Undp s private sector strategy

Partnerships Bureau

  • New York

  • Division for Resource Mobilization

  • Communications Office

  • Private Sector Division

  • Division for Foundations Affairs

  • Civil Society Organizations Division

  • Division for UN Affairs

  • Executive Board Secretariat

  • Multi-Donor Trust Funds Unit

  • Japan Affairs Unit

  • Liaison Offices

  • Washington, Brussels, Geneva, Copenhagen, Tokyo


Undp s private sector strategy

Private Sector and UNDP

  • Strategic Plan 2008 – 2011

  • 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

  • Promoting Inclusive Markets, 2007

  • Private Sector Division

  • Matrix arrangement PB / BDP, 2007

  • Mandate to support and coordinate UNDP’s private sector activities, including partnerships and private sector development


Undp s private sector strategy

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


Undp s private sector strategy

Evidence is emerging that core business assets need to be deployed in order to achieve core business objectives while including the poor

Development

benefits

New Generation CSR

Pro-poor business

models / inclusive

markets

Policy dialogue /

advocacy

  • Enterprise solutions that accelerate and sustain access by the poor to needed goods and services and to livelihoods opportunities

Traditional CSR

CSR / Social

investment

  • Dialogue which contributes to more effective governance institutions, rules, policies and processes

Philanthropy

  • Social investment that is strategic to the core business and that contributes to achievement of the MDGs

  • Contribution of financial or in-kind resources to development projects

Business

benefits

Relevance

to UNDP strategy priority areas:

5. CSR for inclusive markets and MDGs

5. CSR for inclusive markets & MDGs

1. Policy & institutional infrastructure

1. Policy & institutions

2. Value chains

3. Pro-poor goods & services

4. Entrepreneurship


Undp s private sector strategy

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.”

Nancy Abeiderrahmane*

Founder & CEO

Tiviski Dairy

Mauritania

1,000 suppliers, mainly nomadic herders

200 direct

employees, all from local communities

A successful business model: from collection, to processing, and to distribution

*one of 50 entrepreneurs from GIM Initiative


Undp s private sector strategy

How UNDP PS Strategic Priority Areas

can help overcome Nancy’s barriers

1

5

  • Nancy’s barriers

  • Lack of government support and

  • regulation of milk industry

  • International regulation as an hurdle to exportation

  • 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

  • Difficulty to secure financing

Promoting CSR in

support of the MDGs

and Inclusive Markets

Establishing

the Policy and

Institutional

Infrastructure

4

Fostering

Inclusive Entrepreneurship

2

Facilitating

Pro-Poor

Value Chain

Integration

Facilitating Investments

in Pro-Poor Goods

and Services

3


Undp s private sector strategy

UNDP Private Sector Strategy

  • Promoting Inclusive and Sustainable Markets:

  • - Profitability

  • - Participation of the poor

  • - Human development impact

  • - 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


Undp s private sector strategy

Law

Finance

Skills

Core

Business

Advocacy & Dialogue

Social Investments

UNDP Private Sector Strategy

UNDP Examples

Policy and Institutional Infrastructure

1

Vietnam – new Enterprise Law

Belarus – public-private dialogue on business constraints

Growing Sustainable Business – Unilever; SPAR

Ghana – Cadbury sustainable cocoa

Voluntary certification in supply chains

Pro-Poor Value Chain Integration

2

Microfinance and inclusive finance (UNCDF / UNDP)

Public-Private Partnerships for Service Delivery (PPPSD)

Access to energy – LPG initiative

Investments in Pro-Poor Goods & Services

3

UNDP Private Sector Priority Areas

Enterprise Africa

Bulgaria - JOBS programme

Angola Enterprise Programme (with Chevron)

Inclusive Entrepreneur-ship

4

UNDP-led Global Compact networks (40+ countries)

Coca-Cola - water

Oil & gas – governance, local development

Microsoft, Cisco etc – ICT for development

CSR in support

of the MDGs & Inclusive Markets

5


Undp s private sector strategy

Private Sector Division Support

  • Lead corporate strategy, policies and guidelines on work with PS

  • New Community of Practice 2008

  • - Knowledge management

  • Lead global programmes / approaches for PS work, e.g.

  • - Growing Sustainable Business

  • - Growing Inclusive Markets

  • Assist RBx and RCs to support PS strategy implementation

  • Support COs with designing and implementing country level PS strategies

  • Liaise with other UN agencies on PS issues, cooperation

  • Facilitate and manage PS partnerships at global level

  • Position and advocate for UNDP’s private sector work globally


Undp s private sector strategy

Some Key UNDP-led Initiatives

  • Growing Inclusive Markets (GIM)

  • 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

    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

    World Business & Development Awards

  • Spanish MDG Fund

  • Window on private sector development

  • and public private collaboration for UN

  • Country Team proposals

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


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