0 division for business partnershipsbureau for resources and strategic partnerships undp and the...

1Division for Business Partnerships Bureau for Resources and Strategic Partnerships

UNDP and the Business Sector:

Vision & Strategy

BRSP – DIVISION FOR BUSINESS PARTNERSHIPS

RBEC FOCAL POINTS WORKSHOPOctober 2004


Advocacy / Dialogue

Private Sector Engagement Framework

Framework for relating and engaging with private sector

– MDGs and Global Compact– Commission Report and PSD

enabling activitiesInfluencing corporate and government

policies in the area of PS&D

Overlaps

Private Sector Development

Country level initiative follow-up to the Commission Report

Providing direct support for SME development, enabling environment (e.g. in area of informality, remittances, FDI, etc) and support capacity building

– Operational support and enabling activities

Partnership Practices/ MDGs

Partnerships with businesses specifically around UNDP practice areas

– Non-commercial & not connected with the core commercial business models of these companies

Brokerage/ Facilitate Investment

Growing Sustainable Business for Poverty Reduction initiative

– brokering multi-sector partnerships for new core business models that are both profitable and have significant positive development impacts.


THEMES

ENGAING THE PRIVATE SECTOR IS NEW FOR UNDP– Internal– External

DEMAND DRIVEN– Link to country priorities, country needs– Analysis,research, mapping

MOVING BEYOND PHILANTHROPY

WE ENGAGE TO ADVANCE THE MDGs– Working on private sector engagement is directly related to our mandate

to reduce poverty and help achieve the MDGs


BUSINESS & THE MDGs

Achieving the MDGs will require greater and more equitable economic growth – through responsible actions and investments

The poor are the private sector - the poor have a role in creating economic growth

Strong role for private sector organizations, especially LDCs and MNCs, to contribute beyond “philanthropy”/”welfare initiatives” which address the symptons of poverty, but more directly through core business actions – SMEs, employment creation

Private sector is at the centre of many development challenges – engagement can be critical to our relevance at country level


1. ADVOCACY

. • Conferences (e.g G8)

• Publications, Advertisements (e.g FT series)

• Commission Report Launches & Workshops

• Awards Programs (ICC/IBLF UNDP – Business & MDGs)

• Events – (e.g. Chatham House)

• Donor meetings

• Partnerships for Advocacy (e.g. HIV/AIDS – Coca Cola)

• Focus: Global Compact


Global Compact – Values Platform

Dialogue / policydimensionGovernment, business and civil society

Projects forMDGs /implementing 9 principles

Learning / sharing

Networking, ideas& opportunities

SG asked UNDP to lead in taking the GC to country level. UNDP sees GC as key platform for engaging business & building action-oriented partnerships.


Global Compact — Projects

“Ultimately it is by generating developmental benefits through projects that the Global Compact will make its critical contribution. Principles and projects, values and action go hand-in-hand.”

”Partnerships: A crucial part of Global Compact in order to give the nine principles meaning.”

George Kell, Global Compact


Global Compact — Local networksUNDP leads Global Compact in some 30 countries

Key steps and activities:

Consult with and inform leading business organizations& influential company leaders Engage the GC core UN agencies Establish a steering group of champions Undertake sensitization & outreach to mobilize interest Organize a launch workshop Provide hands on training and dialogues on GC principles Identify key development priorities where business can play role Define solutions and develop partnership projects Learn and share


2. PRIVATE SECTOR DEVELOPMENT

. • Enabling Environment – Policy Advice (e.g. Vietnam)

• Direct support to SMEs (Bulgaria, Ecuador)

• Partnerships (e.g. Mexico – supply chain linkages)

• Brokering sustainable investments (e.g.GSB)

• Research & reports

• Support/engagement in PRSP process

• Many RB/BDP programs have a PSD element (Equator Initiative, Multi-functional platform, etc.)

• Focus: Commission on the PS & Development


2. PRIVATE SECTOR DEVELOPMENT

Commission on the PS & Development

A) WHO• SG convened high-level commission from

public sector, private sector & academia

B) TASK• Consolidation of knowledge, focus on action-

oriented recommendations & concrete follow-up

• 2 Questions to Answer, with MDG focus:• Barriers to Domestic Entrepreneurship• How to best engage private sector


BRINGING THE REPORT TO LIFE

DP-driven• LAUNCHES

• Global, Regional, Country-Specific

• WORKSHOPS

•Research

•Stakeholder consultations

•Engaging Government

• INITIATIVES/ACTIONS

• Annual Report, PS Voice at MDG Summit, GSB/Brokerage, Regulatory Environment, G8 Conference, Informality


WHY DOES THE COMMISSION WORK MATTER?

• First formal articulation by the United Nations that the private sector is critical for development

• Examines the issues from the perspective of the domestic private sector and developing countries first, and then looks outward

• Includes the informal sector – and the poor – as a key element of the private sector

• Emphasizes the critical nature of the linkages amongst all components of the “private sector” – from microenterprises to MNCs

•Focuses centrally on the rule of the law and level playing field as the backbone for a thriving, domestic private sector


3. BROKERAGE/FACILIATE INVESTMENT

Growing Sustainable Business

UNDP as Brokeri) Broker ‘sustainable’, market-based investments

- New business models; large–small enterprise linkages ii) Multi-stakeholder alliances to ensure efforts are “demand- driven”,

appropriate and sustainable

Investment examples – International:

• EDF, ABB – support peri-urban, rural electrification

• Ericsson - support rural telephony with local partners

• Societe Generale – SME financing

• TetraPak – local dairy production

• Unilever – local sourcing and distribution – supply chain

• Hotel chain & local operators - eco tourism


Growing Sustainable Business

Business:Innovative business modelsManagerial resourcesTechnology, skills, standardsReach (MNCs)Access to finance

Governments:Leadership / strategyTransparencyPolicies & regulationsFiscal incentivesBasic infrastructures

Local communities:EntrepreneurshipLocal knowledge & innovationHuman capacityUnderstanding of local needs

Dev. Org:s & NGOs:Facilitation / conveningSupport of Sustainable Dev.Attract international attentionLocal knowledgeFinance (IFIs, bilaterals)

GSB Initiative


Growing Sustainable Business Brokering investments

STEP 1 – RESEARCH AND CONSULT Identify companies interested in participating & leading Identify & consult with other key stakeholders Identify potential sustainable business opportunities Identify key policy & other constraints, other relevant initiatives

STEP 2- CONVENE AND STRUCTURE Convene multistakeholder workshop in country to:

Discuss role of private sector in overall development (PRS etc) Identify, review, endorse specific investment projects Agree on next steps, e.g.

- Form specific project alliances- Form country GSB steering group

STEP 3 – IMPLEMENT/OPERATIONALIZE Begin detailed design and implementation of projects Base projects on transparency and sustainability principles Report progress, learn, advocate & broker additional projects


4. Partnerships

All Practice Areas

Poverty ReductionLocal economic development –Kazakstan, Angola Democratic governance: Human rights – Venezuela; Energy / environment: Rural energy - West Africa; ICT: Networking Academies - Africa HIV / AIDS: Education / awareness raising – Botswana Crisis Prevention & Recovery: Invest in Peace - Sri Lanka; Reconstruction- Afghanistan


INTERNATIONAL PARTNERS - selected

DP-driven• Carrefour

•Shell

•BP

•Citigroup

•Microsoft

•Nike

•Cisco

•Nexen

•PK Orlen

• Total

• Tanzania – Ericsson – delivering rural telecom

• Nigeria – Shell – development of the Niger Delta

• Swiss Re

• SAS

• Levi’s

•Nokia

• Group Bimbo

• 3M

• Statoil

• Coca Cola

• Aarhus Olie

• AIG



• Starbucks (GEF)

• Inter di Milano

• EDF

• Unilever

• Societe Generale

• Thames Water

• Ericsson

• ANZ Bank

• Body Shop

• HP




EXAMPLES

DP-driven• FIJI- ANZ bank- delivering rural banking




TIPS/LESSONS LEARNED

DP-driven• Factor in Sustainability from the start

• Integrate with CO/UN programming?

• Ensure Common Understanding - be specific

• Roles/responsibilities, timelines, processes

• Building Trust is the key – invest in the relationship


BUILDING A CO STRATEGY FOR PS ENGAGEMENT

DP-driven• Define your objectives

• Do a self-assessment

• Do a market analysis

• Outreach – think about sequence/entry points

• Fundraising vs. Partnerships – talking $$

• Organize your office for partnerships


TOOLS/RESOURCES

DP-driven

• Policy:

• Policy Statement, Guidelines, Screening Tool, Execution Mechanisms, Advisory Board/Steering Committee

• Documents:

• Model MOU/CSAs, Project documents, operational agreements

•Research

•Knowledge Consolidation – P’ships and key programmes, Global Mapping, Presentations (30+) [dbp & jpo sites]

• Training/Advice:

• Starter’s Tookit, Workshops, Targeted Support


Tools / Resources

Strategy Development

Managing partnerships in the country office

UNDP as advocate for CSR

Using Global Compact as framework

Formalizing cooperation

Communications and media

HOW?

“Starters’ Toolkit”

Practical tips to get started


THANK YOU!

Two Key Websites:

http://intra.undp.org/business

www.jposc.org