UNDP’s Private Sector Strategy

1. 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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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