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

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Presentation on theme: "How can new types of partnerships make a difference in developing countries? Jakob Simonsen Director, UNDP Nordic Office."— Presentation transcript:

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

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

3 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 A Vibrant Private Sector Drives Economic Growth and Enables the Poor: - Provision of Quality products and services - Jobs - Entrepreneurship - Tax revenues and distribution options

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 Pro-poor business models / inclusive markets Development benefits 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 & institutions 2. Value chains 3. Pro-poor goods & services 4. Entrepreneurship Traditional CSR New Generation CSR

6 How can Core Business engage: Some Examples Core Busin ess Advoca cy & Dialog ue Social Investments CSR in support of the MDGs & Inclusive Markets Inclusive Entrepreneur- ship Investments in Pro-Poor Goods & Services Pro-Poor Value Chain Integration Policy and Institutional Infrastructure UNDP Private Sector Priority Areas Skills Finance Law 1 2 3 5 4  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)  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)  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)  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  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)

7 Statoil and UNDP Venezuela Education of judges in human rights 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

8 Coca Cola and UNDP Turkey Engagement of youth in local community activities 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

9 Issue Implications/details Clear benefits 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 roles Clear division of roles is necessary, with clear added value of each partner, underlining their competitive advantage in that specific role Personal involvement Champions of the partnership should be identified within each partner organization Key elements of successful partnerships

10 The Icelandic Business Outreach project - assist companies in their work with Global Compact and establishment of partnerships 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

11 Contact us Ragna Sara Jónsdóttir Icelandic Business Outreach Ministry for Foreign Affairs Email: Tel. : +354 8492122 Jakob Simonsen Direktor UNDP Nordic Office E-mail: Tel. : +45 35467034

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