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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