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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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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

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  • 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

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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

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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

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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

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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

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The targets of UNDP’s interventions: deployed in order to achieve core business objectives while including the poorEmpowering 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

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How UNDP PS Strategic Priority Areas deployed in order to achieve core business objectives while including the poor

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


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UNDP Private Sector Strategy deployed in order to achieve core business objectives while including the poor

  • 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

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Law deployed in order to achieve core business objectives while including the poor





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


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Private Sector Division Support deployed in order to achieve core business objectives while including the poor

  • 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

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Some Key UNDP-led Initiatives deployed in order to achieve core business objectives while including the poor

  • 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