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UNDP and
the Business Sector:
Vision & Strategy
BRSP – DIVISION FOR BUSINESS PARTNERSHIPS
RBEC FOCAL POINTS WORKSHOP
October 2004
Division for Business Partnerships Bureau for Resources and Strategic Partnerships
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Private Sector Engagement Framework
Advocacy / Dialogue Partnership Practices/
MDGs
Framework for relating and Partnerships with businesses
engaging with private sector specifically around UNDP
– MDGs and Global Compact practice areas
– Commission Report and – Non-commercial & not
PSD enabling activities connected with the core
Influencing corporate and commercial business
government policies in the area models of these companies
of PS&D
Overlaps
Private Sector Brokerage/
Development Facilitate Investment
Country level initiative follow-up to Growing Sustainable Business for
the Commission Report Poverty Reduction initiative
Providing direct support for SME – brokering multi-sector
development, enabling environment partnerships for new core
(e.g. in area of informality, business models that are both
remittances, FDI, etc) and support profitable and have significant
capacity building positive development impacts.
– Operational support and
enabling activities
Division for Business Partnerships Bureau for Resources and Strategic Partnerships
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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
Division for Business Partnerships Bureau for Resources and Strategic Partnerships
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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
Division for Business Partnerships Bureau for Resources and Strategic Partnerships
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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
Division for Business Partnerships Bureau for Resources and Strategic Partnerships
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Global Compact – Values Platform
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.
Dialogue / Networking, ideas Projects for
policy & opportunities MDGs /
dimension
Government,
implementing
business and 9 principles
civil society
Learning / sharing
Division for Business Partnerships Bureau for Resources and Strategic Partnerships
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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
Division for Business Partnerships Bureau for Resources and Strategic Partnerships
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Global Compact — Local networks
UNDP 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
Division for Business Partnerships Bureau for Resources and Strategic Partnerships
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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
Division for Business Partnerships Bureau for Resources and Strategic Partnerships
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Division for Business Partnerships Bureau for Resources and Strategic Partnerships
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BRINGING THE REPORT TO LIFE
• LAUNCHES DP-driven
• 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
Division for Business Partnerships Bureau for Resources and Strategic Partnerships
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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
Division for Business Partnerships Bureau for Resources and Strategic Partnerships
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3. BROKERAGE/FACILIATE INVESTMENT
Growing Sustainable Business
UNDP as Broker
i) 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
Division for Business Partnerships Bureau for Resources and Strategic Partnerships
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Growing Sustainable Business
Business: Governments:
Innovative business models Leadership / strategy
Managerial resources Transparency
Technology, skills, standards Policies & regulations
Reach (MNCs) Fiscal incentives
Access to finance Basic infrastructures
GSB
Initiative
Local communities: Dev. Org:s & NGOs:
Entrepreneurship Facilitation / convening
Local knowledge & innovation Support of Sustainable Dev.
Human capacity Attract international attention
Understanding of local needs Local knowledge
Finance (IFIs, bilaterals)
Division for Business Partnerships Bureau for Resources and Strategic Partnerships
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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
Division for Business Partnerships Bureau for Resources and Strategic Partnerships
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4. Partnerships
All Practice Areas
Poverty Reduction
Local 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
Division for Business Partnerships Bureau for Resources and Strategic Partnerships
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INTERNATIONAL PARTNERS - selected
• Carrefour • Swiss Re • Starbucks
DP-driven (GEF)
•Shell • SAS • Inter di Milano
•BP • Levi’s • EDF
•Citigroup •Nokia • Unilever
•Microsoft • Group Bimbo • Societe Generale
•Nike • 3M • Thames Water
•Cisco • Statoil • Ericsson
•Nexen • Coca Cola • ANZ Bank
•PK Orlen • Aarhus Olie • Body Shop
• Total • AIG • HP
Division for Business Partnerships Bureau for Resources and Strategic Partnerships
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EXAMPLES
• FIJI- ANZ bank- delivering rural banking
DP-driven
• Tanzania – Ericsson – delivering rural
telecom
• Nigeria – Shell – development of the Niger
Delta
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TIPS/LESSONS LEARNED
• Factor in Sustainability from the start
DP-driven
• Integrate with CO/UN programming?
• Ensure Common Understanding - be specific
• Roles/responsibilities, timelines, processes
• Building Trust is the key – invest in the
relationship
Division for Business Partnerships Bureau for Resources and Strategic Partnerships
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BUILDING A CO STRATEGY FOR PS
ENGAGEMENT
• Define your objectives DP-driven
• Do a self-assessment
• Do a market analysis
• Outreach – think about sequence/entry points
• Fundraising vs. Partnerships – talking $$
• Organize your office for partnerships
Division for Business Partnerships Bureau for Resources and Strategic Partnerships
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TOOLS/RESOURCES
• Policy:
• Policy Statement, Guidelines, Screening Tool, Execution
DP-driven
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
Division for Business Partnerships Bureau for Resources and Strategic Partnerships
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Tools / Resources
“Starters’ Toolkit”
Practical tips to get started
HOW?
Strategy Development
Managing partnerships in the country office
UNDP as advocate for CSR
Using Global Compact as framework
Formalizing cooperation
Communications and media
Division for Business Partnerships Bureau for Resources and Strategic Partnerships
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THANK YOU!
Two Key Websites:
http://intra.undp.org/business
www.jposc.org
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