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Private sector strategies

Innovative public-private partnerships are key to Post-2015 success

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Kazakhstan produces 343,000 tonnes of electronic waste each year. Through a public-private partnership the country is now making positive changes to their e-waste disposal. Photo: UNDP Kazakhstan making changes to e-waste disposal through an unusual public-private partnership

In a world where links between countries are greater and faster than ever, disasters that once might have had only local effects now increasingly have international ramifications. The effects from the tsunami/meltdown of Japan’s Fukushima reactor, for example, had devastating local consequences, but also impacted communities and economies thousands of miles away. In such an interconnected world, with impacts that touch upon all of society, locally and internationally, we need equally all-embracing approaches. While challenging, an increasingly interlinked world also provides unprecedented opportunities to reduce risk. Countries that might have once been at a dire disadvantage from a skills and knowledge perspective now have the ability to draw upon international resources. And the private sector—which operates in perhaps an even more hyper-connected environment than governments—can be called on to provide expertise. Our goal then, as we move into the post-2015 context, is to learn how to tap into these areas and to make use of innovative partnerships that draw on specific strengths and address identifiable gaps. The Get Airports Ready for Disasters (GARD) programme, a joint venture between UNDP and Deutsche Post DHL, stands as an example of such innovation. The programme joins the logistics expertise of DPDHL with the governance... Read more

Infrastructure for Development: Show me the Money!

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A Renewable energy generation project, implemented by UNDP and funded by the OPEC Fund for International Development (OFID), installed solar panels in schools and maternity clinics in Gaza. Photo: UNDP/PAPP

According to the Oxford University Said Business School, we are facing an unprecedented infrastructure mega-project investment era, amounting to 6-9 trillion US$ annually, or 8% of the global GDP. Whether it involves revamping old infrastructure, developing new sources of energy, providing access to social services and utilities to more people (with the paradigm of universal access in sight) or developing our communications infrastructure, it is easy to be in favour of more, and better, infrastructural development. The issue is not for poor countries alone to struggle with. President Obama wants to upgrade the US roads, bridges and ports by imposing new taxes on overseas earnings by American companies. Little can be said against infrastructure as a public good. The problem is how to interest private finance in that public good.       As the Secretary-General said in his post-2015 agenda Synthesis Report last December, “Urgent action is needed to mobilise, redirect, and unlock the transformative power of trillions of dollars of private resources to deliver on sustainable development objectives.” Infrastructure makes life better, economies more competitive, and while being built, offers jobs to the value chain. On the other side, however, infrastructure also massively consumes cement and increases emissions. It is one... Read more

Overcoming Barriers to Poverty Reduction: A greater role for the private sector

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Luru-Dashima, a female artisan from the Mosuo community in southwest China, participated in a UNDP/private sector project focusing on improving market access and recognition for traditional ethnic minority handicrafts. Photo: UNDP/China

From C.K. Prahalad’s thought provoking call for eradicating poverty through profits to the newly coined words ‘reverse innovation’, various schools of thought have emerged recently to make a case as to why the private sector could and should do more towards poverty alleviation. Naturally, that case was incubated in business schools—a case for the business community to do more to eradicate poverty needs to be commercially viable. But we, at UNDP’s global policy center for private sector in development (IICPSD), opened the dialogue further and looked outside of the business schools to tap into the wealth of knowledge developed by poverty experts and learn more about various factors that lead to and perpetuate a life in poverty. Our efforts culminated in a recent conference about “The Role of the Private Sector in Poverty Reduction and Social Inclusion”, where we disaggregated poverty data to a basic set of tangible disadvantages that sustain and perpetuate socioeconomic exclusion. We identified five overarching barriers to poverty reduction: Early Developmental, Health, Skill, Social, and Decision-making barriers. The rationale behind this approach is based on the premise that private companies first gather in-depth understanding of the needs and challenges facing their potential consumers before presenting innovative solutions... Read more

Africa is transforming itself: How do we turn intentions into reality?

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Better investment in infrastructure could help Africa's transformation. Photo: Benoit Almeras Martino/UNDP DRC

Recently I attended an event from the Global Compact, a UN initiative to encourage businesses to adopt sustainable and socially responsible policies. Entitled "Advancing Partnerships and Responsible Business Leadership", it was held for the first time in Africa, bringing over 300 participants together from businesses, Global Compact networks, UN agencies and governments. Africa's economic transformation with various partners from China, Europe and the US was among the key topics discussed. But, while multinational companies do play a role, it is increasingly clear that African policy makers and business people are setting the continent’s agenda. Participants largely agreed that Africa’s transformation requires investment in better infrastructure, education, skills, jobs, policies and more. The WHAT was better articulated than the HOW. Africa is expected to be one of the world's fastest growing regions, with 4.8 percent growth in 2014 and over 5 percent in 2015, according to the recent African Economic Outlook 2014. However, this transformation goes well beyond economic growth. Development practitioners talk more and more about ‘inclusive growth’, agreeing that businesses should go beyond philanthropy and corporate social responsibility towards making their core activities better suited for societies and the environment.  As UNDP's Resident Coordinator in Ethiopia, Eugene Owusu stated: "Inclusive... Read more

Turning subsistence farmers into market suppliers in Africa

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Despite agriculture being a major source of income in Africa, smallholder farmers face many challenges. Photo: Benoit Almeras-Martino/UNDP DRC

As I sat down for my first dinner in Kinshasa, Democratic Republic of Congo (DRC), after a bit more than one year since my last visit, I suddenly remembered that something is very wrong with food prices here. How can a simple margarita pizza with only cheese, tomato, oil and flour, be USD 20? How can local fish be USD 30? Admittedly I did not eat in the cheapest local restaurant, yet the prices are 4 to 5 times more expensive in comparison to similar dishes in Addis Ababa, where I live. Indeed, food in the DRC is at least twice as expensive as the average world food price for basic commodities. Why is that? A combination of poor farmer productivity, lack of infrastructure and a difficult business environment, mean that the cost of producing goods and taking them to markets is high, and imports are often more readily available or cheaper than local products. In 2008, Bralima, one of DRC’s leading brewers, sourced 16% of its rice from outside the country, due to its inability to source it from the local market. With 80 million ha of arable land and 90 percent of it not cultivated, DRC offers huge untapped... Read more

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