UNDP Private Sector Strategy
The United Nations Development Programme (UNDP) recognizes that achieving the Millennium Development Goals (MDGs) depends on vibrant economic growth, driven by private enterprises that create jobs and provide goods and services for the poor, as well as generate tax revenues to finance essential social and economic infrastructure. The private sector - from large multi-national companies to small enterprises and cooperatives servicing local markets - also has an essential role to play in achieving broader UNDP goals in areas such as energy and environmental service delivery, crisis prevention, gender equality and democratic governance.
The UNDP’s private sector interventions aim at facilitating the development of inclusive market with the prospect of sustainable pro-poor growth by increasing the poor’s access to markets for necessary products and services. UNDP bases its approach to the private sector on the concept of facilitating the development of ‘Inclusive Markets.’ The overall aim is to ensure that markets work better for the poor as entrepreneurs, wage employees and consumers.
In keeping with this approach UNDP focuses on five priorities.
- Policy advisory support will be provided to governments that wish to establish legal and regulatory frameworks for rule based and non-discriminatory markets, including robust and transparent market institutions that promote fair competition whilst safeguarding the rights of producers, employees and consumers and ensuring the inclusion of the poor;
- Assistance will be provided for the development of integrated value chains in market sectors that offer the prospect of sustainable growth and transition to higher valued added and better remunerated forms of employment;
- Building on existing programmes in the area of pro-poor investment, further research on ‘bottom of the pyramid’ investment opportunities and sustainable business models will be undertaken in order to support countries to identify and facilitate the development of market sectors for key basic goods and services;
- Renewed efforts will be made to promote entrepreneurship for the poor. To this effect UNDP in conjunction with other development partners and the private sector will support the design and delivery of new best practice-based entrepreneurship development initiatives that are tailored to address local market realities;
- Continued efforts will be made to advocate for the use and alignment of private sector CSR resources in ways that contribute to the development of inclusive markets.
Global Initiatives of the Private Sector Division
UNDP also has a number of global programmes that are implemented at the national level with guidance and technical support from the Private Sector Division, Partnerships Bureau(PB) at headquarters. UNDP Private Sector Division has three complementary initiatives.
- Inclusive Market Development (IMD) and Growing Sustainable Business (GSB): Country level operational initiative to broker and support inclusive business approaches.
- Growing Inclusive Markets initiative (GIM): Global network for research, analysis and tools.
- Business Call to Action (BCtA): Global platform for visibility, advice and monitoring and tracking.
The GSB Japan Project
GSB convenes different stakeholders to facilitate innovative business partnerships at country-level in support of the MDGs. The initiative grew out of the 2002 Global Compact Policy Dialogue on Business and Sustainable Development and is a key UNDP response to the report by the Commission on Private Sector and Development “Unleashing Entrepreneurship” 2004. The initiative was conceptualized by the private sector, announced and launched at the World Summit on Sustainable Development, Johannesburg 2002 - endorsed in a high level session.
There growing inclusive business model (Base at the Pyramid, BoP) movement in Japan and thus more companies are looking at inclusive business activities as new kind of business approach especially in emerging markets and developing countries. UNDP PSD has recognized the opportunities where more Japanese companies could engage into inclusive business activities and has set up a special project engaging with Japanese companies intending to work in African- and Asian developing countries.