undp’s private sector strategy
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UNDP’s Private Sector Strategy
Promoting Inclusive Market Development
Private Sector Division, Partnerships Bureau / BDPCasper Sonesson, Policy AdvisorDRR/DCD Induction Workshop
April 9, 2008
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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
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Partnerships Bureau
New York o Division for Resource Mobilizationo Communications Officeo Private Sector Divisiono Division for Foundations Affairso Civil Society Organizations Divisiono Division for UN Affairso Executive Board Secretariato Multi-Donor Trust Funds Unit o Japan Affairs Unit
Liaison Officeso Washington, Brussels, Geneva, Copenhagen, Tokyo
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Private Sector and UNDP
Strategic Plan 2008 – 2011
o Private sector as a recognized partner and stakeholder o Markets, private sector and economic development as one important pillar / outcome under poverty reductiono 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 Matrix arrangement PB / BDP, 2007o 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
Source: OECD 2004, Accelerating Pro-poor Growth Through Support for Private Sector Development
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
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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
Pro-poor business models / inclusive
markets
Developmentbenefits
Business benefits
Policy dialogue / advocacy
Philanthropy
CSR / Social investment
• Dialogue which contributes to more effective governance institutions, rules, policies and processes• Contribution of
financial or in-kind resources to development projects
• Social investment that is strategic to the core business and that contributes to achievement of the MDGs
• Enterprise solutions that accelerate and sustain access by the poor to needed goods and services and to livelihoods opportunities
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 & institutions2. Value chains3. Pro-poor goods & services4. Entrepreneurship
Traditional CSR
New Generation CSR
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The targets of UNDP’s interventions:Empowering the poor as entrepreneur, employee, consumer
*one of 50 entrepreneurs from GIM Initiative
A successful business model: from collection, to processing, and to distribution
200 direct employees, all from local communities
1,000 suppliers, mainly nomadic herders
Nancy Abeiderrahmane* Founder & CEOTiviski DairyMauritania
“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.”
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How UNDP PS Strategic Priority Areascan 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 landtransportation facilities
• Difficulty to secure financing
Establishing the Policy and
Institutional Infrastructure
FacilitatingPro-Poor
Value ChainIntegration
Facilitating Investments
in Pro-Poor Goodsand Services
FosteringInclusive
Entrepreneurship
Promoting CSR insupport of the MDGs
and Inclusive Markets
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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
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UNDP Private Sector Strategy
Core
Business
Advocacy &
Dialogue
Social Investments
CSR in supportof the MDGs & Inclusive Markets
Inclusive Entrepreneur-
ship
Investments in Pro-Poor Goods & Services
Pro-Poor Value Chain
Integration
Policy and Institutional Infrastructure
UN
DP
Priv
ate
Sec
tor
Prio
rity
Are
as
Ski
lls
Fin
ance
Law
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Vietnam – new Enterprise LawBelarus – public-private dialogue on business constraints
UNDP Examples
Growing Sustainable Business – Unilever; SPARGhana – Cadbury sustainable cocoaVoluntary certification in supply chains
Microfinance and inclusive finance (UNCDF / UNDP)Public-Private Partnerships for Service Delivery (PPPSD)Access to energy – LPG initiative
Enterprise AfricaBulgaria - JOBS programme Angola Enterprise Programme (with Chevron)
UNDP-led Global Compact networks (40+ countries)Coca-Cola - waterOil & gas – governance, local developmentMicrosoft, Cisco etc – ICT for development
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Private Sector Division Support
o Lead corporate strategy, policies and guidelines on work with PSo New Community of Practice 2008
- Knowledge managemento Lead global programmes / approaches for PS work, e.g.
- Growing Sustainable Business - Growing Inclusive Markets
o Assist RBx and RCs to support PS strategy implementationo Support COs with designing and implementing country level PS strategieso Liaise with other UN agencies on PS issues, cooperationo Facilitate and manage PS partnerships at global levelo Position and advocate for UNDP’s private sector work globally
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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 activitiesWorking in more than 70 partnerships with the domestic and international private sectorOperational 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 DeliveryEnabling environment for PPPs for local service delivery for the poorCapacity development for N/L gvtsQuick Win PPPs for local service
Exploratory new areas:Local content in extractive industryVoluntary certifications in supply chains
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