Generating equitable growth

Ours is a world of extremes. The poorest 40 percent of the world population—the 2.5 billion people who live on less than $2 a day—account for five percent of global income, while the richest 10 percent account for 54 percent. Never before has the goal of abolishing poverty been within our reach: there are no longer any insurmountable technical, resource or logistical obstacles to achieving it. Yet, more than 800 million people suffer from hunger and malnutrition, 1.1 billion people do not have access to clean drinking water and, every hour, 1,200 children die from preventable diseases. Despite a growing world economy and significant advances in medicine and technology, many people in developing countries are not reaping the potential benefits of globalization.

Many countries in Asia, including the Philippines, have made steady progress in reducing poverty rates. But growth in urban poverty threatens to reverse some of these achievements.

UNDP works with governments in developing countries to design and implement policies and initiatives that address the needs of the poor. We help countries lay the foundations for pro-poor economic growth, and back efforts to develop the skills, knowledge and resources that will lead to sustained progress against poverty.

Trade can be one of the most effective engines of economic growth. Many producers in poor countries remain, however, cut off from international markets because they cannot compete with heavily subsidized goods produced in the developed world or because they lack the basic infrastructure and know-how needed to participate in the global economy. Opening up rich countries' markets to poor nations could help lift millions of people out of poverty. But market access is not enough. More must be done to support countries in developing their trade capacity.

UNDP works towards helping countries participate more effectively in the multilateral trading system through the Integrated Framework for Trade-Related Technical Assistance to least developed countries (LDCs). Working alongside other international partners including the UN Conference on Trade and Development, the World Bank and the World Trade Organization, UNDP helps LDCs overcome some of the challenges they face including lack of adequate infrastructure, institutional bottlenecks and burdensome regulations. We also support countries in their ability to negotiate and implement trade agreements that reflect human development concerns. Finally, we back governments' efforts to incorporate pro-poor trade policies in national development strategies.

In 2005, for instance, UNDP teamed up with the Azerbaijan Export and Investment Promotion Foundation in a bid to strengthen the country's capacity for export promotion. Under this partnership, UNDP helped formulate the government's export strategy for the development of the non-oil sector and establish an Export Information Centre to provide advice to potential local exporters. In Yemen, UNDP is backing the government's efforts to promote the country's fruit and fisheries exports. A $1 million project provides technical advice to fruit and vegetable farmers on the proper use of pesticides as well as on packaging and transportation. It also aims at improving Yemen's competitiveness in the area of fisheries through the establishment of quality control procedures and the training of fishermen.

Much progress can be achieved in alleviating poverty by supporting local entrepreneurship and business initiatives. In Southeastern Anatolia, one of Turkey's most disadvantaged regions, UNDP partnered with the Regional Development Administration to increase the competitiveness of small- and medium-sized enterprises (SMEs). We opened Business Development Centres in four cities (Adiyaman, Diyarbakir, Mardin and Sanliurfa) to help SMEs improve their managerial, operational and administrative capacities. We also advised and trained budding entrepreneurs, who often lack the skills, knowledge and networks to get their ideas off the ground. Efforts to reduce economic disparities in Southeastern Anatolia have also targeted young people. UNDP supported the launch of a National Apprenticeship Programme, which provides young people from the region with internship opportunities in a number of companies nationwide. The professional experience gained in accounting, sales and marketing will help bring much needed skills and knowledge to the region. And elements of the overall initiative can serve as models for replication by other regional administrations, in Turkey and elsewhere.

In Moldova, UNDP is helping to empower communities economically through its Local Agenda 21 initiative. By involving citizens in local-level decision making and promoting partnerships between the public and private sectors, this effort aims at integrating sustainable development principles into local authorities' policies. UNDP helped develop an economic free zone in Moldova's region of Ungheni, a former industrial area. The new zone now hosts 33 businesses from several countries. It has helped develop new enterprises in the region, such as plastic container manufacturers, luxury furniture businesses, as well as fruit and vegetable juice producers. In addition to generating $15.8 million worth of investments, the Ungheni Business zone has created 1,250 jobs and increased the level of exports from the region.

Some small-scale projects can deliver big results. In Gaza, UNDP helped women fruit producers secure small grants to boost their production. Traditionally, women have dried fruits and herbs in the sun, but this process can affect the quality and freshness of the products. From grants obtained through the Global Environment Facility (GEF), which is run jointly by UNDP, the UN Environment Programme (UNEP) and the World Bank, women in Gaza have been able to acquire solar-powered machines to dry fruits and herbs more quickly and efficiently. This environmentally-friendly initiative has enabled women in Gaza to expand their businesses and sell their produce in local Gazan markets. This is just one of many projects funded through GEF that help improve the livelihoods of the poor while contributing to the protection of the environment.