How can new types of partnerships make a difference in developing countries?

1. How can new types of partnerships make a difference in developing countries? Jakob Simonsen Director, UNDP Nordic Office

2. 2.6 billion excluded – not only a “Development Challenge” but a long-term Business Opportunity Population earning less than US$2 a day per region (World Bank)

3. A vibrant Private Sector is a key component in combating poverty….. Economic Growth is a pre-requisite for poverty alleviation • A Vibrant Private Sector Drives Economic Growth and Enables the Poor: • Provision of Quality products and services • Jobs • Entrepreneurship • Tax revenues and distribution options Source: OECD 2004, Accelerating Pro-poor Growth Through Support for Private Sector Development

4. …and a potentially significant partner in meeting other MDGs… • Is the engine of economic growth & main contributor to public revenues • Provides jobs and access to necessary products and services • Has an influential role in tackling child labour in the work place • Facilitates the education of employees’ children and invests in education • Strengthens women’s economic capacity as entrepreneurs, employees and producers • Contributes to and invests in women’s leadership development • Provides affordable health products and services, including donations • Advocates to support the Rights of the Child and support children’s issues • Provides affordable health products and services, including donations • Improves working conditions and occupational health for women • Provides affordable health products, services and innovative solutions • Implements workplace HIV/AIDS programmes focused on education, prevention, treatment • Has major environmental impacts and increasingly invests in product and business process innovations to lower impacts • Is an important partner in promoting investments and an open trading & financial system • Is a crucial partner in supporting youth employment & making new technologies available

5. UNDP’s new private sector strategy focuses on Pro-poor Business Models and Policy Dialogue - where core business assets are needed 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

6. Law Finance Skills Core Business Advocacy & Dialogue Social Investments How can Core Business engage: Some Examples • Contribute to policy change • Lobbying for pro-generic drugs regulation (Unilab, Philippines), for legal framework allowing private sector to provide services such as ICT (Celtel, DRC), water (Amanz’abantu, South Africa) or electricity (EDF, Mali) Policy and Institutional Infrastructure 1 • Engage communities • Linking smallholder farmers to global supply chains (Unilever, Tanzania); building capacity of local firms in high-value sectors such as Artemisia (Bionexx, Madagascar); pro-poor sourcing (Spar, Zambia) Pro-Poor Value Chain Integration 2 • Adapt products • Offering cash-to-asset transfers to migrants (Cemex, Mexico/US); offering prepaid airtime in small units (Smart, Philippines); providing healthcare to rural areas via satellite communication (Narayana, India) • Invest in market conditions • Providing loans and training to farmers (VCP, Brazil), building one’s own infrastructure (Tiviski, Mauritania) Investments in Pro-Poor Goods & Services 3 UNDP Private SectorPriority Areas Inclusive Entrepreneur-ship • Collaborate with other organizations • Collaborating with local money collectors and adapting financial services (Barclays, Ghana); partnering with research institution to test business case viability (CocoTech, Philippines), leveraging NGO’s existing knowledge and network (Pesinet, Mali) 4 CSR in support of the MDGs & Inclusive Markets • Make social investments that are strategic to the core business and contributes to the MDGs • Providing drugs to SSA (Sanofi-aventis) or selling water purification products at cost (P&G) in partnership with international agencies 5

7. Statoil provides support to a training- and information program Escuela de la Judicatura organizes and conduct the training UNDP prepares baseline study and assist with design and implementation of the training program and administrates support from Statoil. Amnesty International gives professional support to implementation of the training Resultats: Training program for judges who will educate other judges in human rights and implementation of a training program in human rights for all new judges in co-operation with Escuela de la Judicatura Statoil and UNDP VenezuelaEducation of judges in human rights

8. Coca Cola contributes with marketing expertise and support to a youth fund at amount of 1.5 mio. USD supporting projects within education, environment and sport Youth for Habit and Agenda 21 brings youth, students and youth organizations together through local platforms through out the country UNDP selects projects and implement training together with Youth for Habit Resultats: Several innovative projects are supported economically and and with training in project management and a number of communication activities are carried out to engage even more young people in the projects Coca Cola and UNDP TurkeyEngagement of youth in local community activities

9. Key elements of successful partnerships • Issue • Implications/details • Clear division of roles is necessary, with clear added value of each partner, underlining their competitive advantage in that specific role • Clear roles • All partners should see tangible, well-defined benefits accruing to them as a result of the program • There should be a link to clear strategic or commercial interests of the partner corporation; benefits may be long-term • Clear benefits • Personal involvement • Champions of the partnership should be identified within each partner organization

10. Entry point to Global Compact Help with design of the partnership so it benefits both the company and the poor Establishes contact to UNDP country offices and other local cooperation partners Cooperate with Reykjavik University, Iceland Chamber of Commerce and the Iceland Trade Council to raise companies’ awareness of CSR/Global Compact The Icelandic Business Outreach project -assist companies in their work with Global Compact and establishment of partnerships

11. Ragna Sara Jónsdóttir Icelandic Business Outreach Ministry for Foreign Affairs Email: sara@mfa.is Tel. : +354 8492122 Jakob Simonsen Direktor UNDP Nordic Office E-mail: jakob.simonsen@undp.dk Tel. : +45 35467034 www.undp.dk Contact us