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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


  • 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



New Generation CSR

Pro-poor business

models / inclusive


Policy dialogue /


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

Traditional CSR

CSR / Social


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


  • 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




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


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



  • 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


the Policy and





Inclusive Entrepreneurship




Value Chain


Facilitating Investments

in Pro-Poor Goods

and Services


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






Advocacy & Dialogue

Social Investments

UNDP Private Sector Strategy

UNDP Examples

Policy and Institutional Infrastructure


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


Microfinance and inclusive finance (UNCDF / UNDP)

Public-Private Partnerships for Service Delivery (PPPSD)

Access to energy – LPG initiative

Investments in Pro-Poor Goods & Services


UNDP Private Sector Priority Areas

Enterprise Africa

Bulgaria - JOBS programme

Angola Enterprise Programme (with Chevron)

Inclusive Entrepreneur-ship


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


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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