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The ‘African Facility for Inclusive Markets’ (AFIM) is a regional private sector and inclusive market development programme for poverty reduction in Africa. Based in Johannesburg, it is supported by UNDP’s Private Sector Division and Regional Bureau for Africa. As part of its objective to increase the capacity of regional organizations, governments, and other stakeholders to support inclusive market development in the region, AFIM will develop a report based on the ‘Growing Inclusive Markets’ (GIM)Initiative’s methodology, including the research and analysis of case studies of inclusive business models.  The GIM Initiative has already documented 120 case studies of such business models across regions – for more details, see http://cases.growinginclusivemarkets.org.

Inclusive business models are defined as commercially viable business models that include the poor on the demand side as clients and customers, and/or on the supply side as producers, employees and entrepreneurs along value chains. The Case Studies work stream of the AFIM/GIM Report process seeks to establish a network of case writers comprised of academics/consultants from a selection of countries, including Liberia, Ethiopia, Ghana and Burkina Faso. The new pool of case studies created under this work stream will increase the depth of analysis by providing quantitative and qualitative data on the business benefit of inclusive business models as well as their social and environmental impact. The case studies to be documented will focus on the following sectors: agribusiness; small, medium and micro-credit; construction; water and sanitation; education; and energy.

Description: Case writers will produce (identify, analyze, and write up) a minimum of 2 case studies based on the GIM Research Protocol. A minimum of 1 field visit to each case site, and interviews with a variety of stakeholders will be required. Throughout the entire process the writer will interact with the GIM and AFIM teams through an iterative process.

For more information, including how to apply, click here to see the job description.

 

The ‘African Facility for Inclusive Markets’ (AFIM) is a regional private sector and inclusive market development programme for poverty reduction in Africa. Based in Johannesburg, it is supported by UNDP’s Private Sector Division and Regional Bureau for Africa. As part of its objective to increase the capacity of regional organizations, governments, and other stakeholders to support inclusive market development in the region, AFIM will develop a report based on the ‘Growing Inclusive Markets’ (GIM)Initiative’s methodology, including the research and analysis of case studies of inclusive business models.  The GIM Initiative has already documented 120 case studies of such business models across regions – for more details, see http://cases.growinginclusivemarkets.org.

Inclusive business models are defined as commercially viable business models that include the poor on the demand side as clients and customers, and/or on the supply side as producers, employees and entrepreneurs along value chains. The Case Studies work stream of the AFIM/GIM Report process seeks to establish a network of case writers comprised of academics/consultants from a selection of countries, including Liberia, Ethiopia, Ghana and Burkina Faso. The new pool of case studies created under this work stream will increase the depth of analysis by providing quantitative and qualitative data on the business benefit of inclusive business models as well as their social and environmental impact. The case studies to be documented will focus on the following sectors: agribusiness; small, medium and micro-credit; construction; water and sanitation; education; and energy.

Description: Case writers will produce (identify, analyze, and write up) a minimum of 2 case studies based on the GIM Research Protocol. A minimum of 1 field visit to each case site, and interviews with a variety of stakeholders will be required. Throughout the entire process the writer will interact with the GIM and AFIM teams through an iterative process.

For more information, including how to apply, click here to see the job description.

 

The ‘African Facility for Inclusive Markets’ (AFIM) is a regional private sector and inclusive market development programme for poverty reduction in Africa. Based in Johannesburg, it is supported by UNDP’s Private Sector Division and Regional Bureau for Africa. As part of its objective to increase the capacity of regional organizations, governments, and other stakeholders to support inclusive market development in the region, AFIM will develop a report based on the ‘Growing Inclusive Markets’ (GIM) Initiative’s methodology, including the research and analysis of case studies of inclusive business models.  The GIM Initiative has already documented 120 case studies of such business models across regions – for more details, see http://cases.growinginclusivemarkets.org.

Inclusive business models are defined as commercially viable business models that include the poor on the demand side as clients and customers, and/or on the supply side as producers, employees and entrepreneurs along value chains. The Case Studies work stream of the AFIM/GIM Report process seeks to establish a network of case writers comprised of academics/consultants from a selection of countries, including Liberia, Ethiopia, Ghana and Burkina Faso. The new pool of case studies created under this work stream will increase the depth of analysis by providing quantitative and qualitative data on the business benefit of inclusive business models as well as their social and environmental impact. The case studies to be documented will focus on the following sectors: agribusiness; small, medium and micro-credit; construction; water and sanitation; education; and energy.

Description: Case writers will produce (identify, analyze, and write up) a minimum of 2 case studies based on the GIM Research Protocol. A minimum of 1 field visit to each case site, and interviews with a variety of stakeholders will be required. Throughout the entire process the writer will interact with the GIM and AFIM teams through an iterative process.

For more information, including how to apply, click here to see the job description.

 

The Working Party on aid effectiveness hosted by the Organization for Economic Cooperation and Development (OECD) Development Assistance Committee (DAC) has initiated work on the private sector in the context of aid effectiveness with a view to better understand the role of aid as a catalyst to support effective private sector contribution to development. Building on nearly 50 qualitative interviews with different stakeholders – donors, for-profit private sector, private foundations, partner countries, civil society and independent experts – the report highlights the complexity and diversity of actors, tools, approaches and partnerships working with the private sector towards development objectives. The report provides recommendations for future actions to stimulate further dialogue on the topic towards the Fourth High-Level Forum on Aid Effectiveness in Busan (29 November-1 December 2011).

With regards to the roles the private sector (for-profit and foundations) plays in relation to aid processes, interviewees mentioned the following: mobilisers of resources, e.g. through innovative consumer or market-based mechanisms; contributors of financial and in-kind resources; providers of goods and services as implementers/contractors in aid projects; dialogue partners and advocacy, e.g. on how to enhance inclusive business and market approaches, or on how to address challenges in specific sectors, such as health and agriculture; partners in public-private partnerships; and drivers of innovation. Respondents in particular emphasized that for-profit private sector contributions to the development process are more sustainable if they are embedded in the core business strategy of a company, and that there is an increased commitment to cater for unmet societal needs through core business practices, as this also provides good business opportunities.

The GIM 2008 Report, “Creating Value for All: Strategies for Doing Business with the Poor”, serves as a reference for the definition of ‘inclusive business models’ and the five key market constraints that explain why more businesses haven’t taken advantage of opportunities at the base of the pyramid, namely: 1) limited market information; 2) ineffective regulatory environment; 3) inadequate physical infrastructure; 4) missing knowledge and skills; and 5) restricted access to financial products and services. The GIM 2010 Report, “The MDGs: Everyone’s Business”, is referred to as a source of cases of inclusive business models and their contribution to the Millennium Development Goals.

Please click here to access the OECD/DAC website on Private Sector and Aid Effectiveness and here to download the full report.

 

About the authors

Hidemi Yoshida is an associate professor of the Hosei Graduate School of Environmental Management and the Faculty of Humanity and Environment of Hosei University in Tokyo. Her research areas include microfinance, social entrepreneurship, and poverty alleviation through CSV (Creating Shared Value). She published the Japanese Version of the GIM Report “Creating Value for All: Strategies for Doing Business with the Poor”.

Agnes Rampisela is an associate professor of the Graduate School and the Faculty of Agriculture of Hasanuddin University in Makassar, Indonesia. She got her doctoral degree in Hydrology from Kyoto University, Japan, in 1992. She further enriched her experience at the Center for South East Asian Studies of Kyoto University as Visiting Research Fellow from 1996-1997. Her research areas include farming system, agriculture and community empowerment, and poverty alleviation. She contributes as an expert to several Japanese government projects in Indonesia and also conducts series of volunteer work especially under Lembaga Pelangi, an NGO which was established in 1996 under her initiative.

About the case study

P.T. Toarco Jaya, subsidiary of Key Coffee Ltd., a large Japanese company, established a brand of specialty coffee called “Toarco Toraja” by procuring Arabica coffee from Indonesian farmers, and by running its own coffee plantation in the country. Coffee trees that can produce high quality coffee are grown in the mountainous area, where people travel on foot or on horseback. In order to facilitate the collection of coffee beans, Toarco established purchasing stations close to farmers, and leveraged local collectors. After overcoming a number of barriers, such as the lack of farmers’ knowledge and skills, P.T. Toarco Jaya is now exporting 200-500 tons of coffee beans per year, while benefiting about 7,000 small-scale farmers as suppliers, and providing 53 full time and 900 temporary jobs at its Rainforest Alliance certified plantation. Today, Arabica coffee has become a reliable source of income for farmers, and Sulawesi is well-known for its coffee.

To download the Key Coffee case study from the GIM database, please click here.

 

About the authors

Kathrin Hamm worked as Managing Director of the Afghan German Management College where she was responsible to build up the operations across Afghanistan. Under her leadership the college was distinguished by the UNESCO and formed to a profitable social enterprise, serving more than 400 Afghan students with a strong focus on women empowerment and entrepreneurship. Currently, Kathrin is a Master of Public Administration (MPA) Candidate at Columbia University’s, School of International and Public Affairs (SIPA). Kathrin graduated summa cum laude from the University of Witten/Herdecke in Germany, receiving a Master’s degree in Business Economics. Kathrin is also a European Recovery Program Fellow of the German National Academic Foundation. In addition to her academic pursuits, Kathrin has gained work experience at the World Bank Group (IFC), the Boston Consulting Group, and in US Congress’ House of Representatives. Kathrin also spent time with IBM as an International Business Consultant in South America, North America, and Europe.

Tim Lehmann is a consultant in social program replication and nonprofit management. He currently works mostly with Bertelsmann Foundation (Germany). Tim has gathered international research experience in the field of strategic social entrepreneurship and sustainable development in 25 countries in collaboration with the private and social sectors. As a research assistant at IESE Business School, Spain, he conducted research in the intersection of management science and NPO practice, leading a research team in India and moderating strategic discussions among NGO executives. As a result of this work, Tim published a conference paper on organizational forms of nonprofit expansion. An entrepreneur himself, Tim initiated and led an 8-month global study program in Africa, Asia, and Latin America with 40 social entrepreneurs such as Muhammad Yunus. Keen to inspire youth and share his learnings, he disseminated this research including life video conferencing with more than 20 schools all over Germany, a website (www.expedition-welt.de), and the publication of a co-authored book. Tim is an alumnus of oikos International – students for sustainable economics and management. Today he is still active as an alumnus, coordinating a sustainability bachelor award in German-speaking countries and designing entrepreneurship trainings for oikos students. Tim holds a Master of Science degree from Witten/Herdecke University, Germany, where he excelled summa cum laude in international economics and entrepreneurship. His master thesis about the scaling up of Aravind Eye Hospitals was awarded the highest faculty award and was co-supervised by Johanna Mair, IESE Business School. Tim also has a banking background with Deutsche Bank.

About the case study

The Afghan higher education infrastructure is unable to sustain a growing number of high school graduates preparing to transition into higher education. Currently, an estimated 600,000 students will be vying for 100,000 available spaces in colleges and universities. The Afghan German Management College (AGMC) provides access to business and entrepreneurship education via an internet based learning platform. The curriculum content for the online platform is produced by lecturers located in Germany and delivered to students in numerous provinces and remote areas of Afghanistan. The low cost internet operations allow an inclusive pricing strategy for students from low-income households. The AGMC runs on a profitable basis, has reinvested all surpluses in the future growth of its student body and provided jobs for seven full time and part time employees in Afghanistan. The four-year study program grew from 12 students in 2006 to 350 students in 2011, 22% of whom are women. Such an education is crucial in motivating young Afghans to pursue the path of entrepreneurship and thereby stimulate the local economy.

To download the AGMC case study from the GIM database, please click here.

 

As part of The Guardian International Development Journalism Competition, an article recently submitted talks about the role private sector can play in international health development. The article features, among others, ‘SMS for Life‘, an innovative public-private partnership between Novartis, IBM, Vodafone, the Tanzanian Ministry of Health and the Roll Back Malaria campaign to monitor drug levels in 3 Tanzanian districts’ health facilities.

As the article reckons, quoting Sahba Sobhani, Manager of the Growing Inclusive Markets Initiative, notwithstanding the potential a greater involvement of private sector holds for development, “business is not a panacea for social change” and companies need to be part of an ecosystem of actors that also includes governments and non-profit organizations.

Please click here to access the article from The Guardian website (also available in PDF).

 

Charlie Dou is an adjunct Professor and Research Associate, Alternative Energy Institute, West Texas A&M University, USA; CEO, Beijing Bergey Windpower Co. Ltd., served as International advisor for UNDP/GEF on renewable energy project in China, key Expert for EU, Consultant for the World Bank/GEF, etc. He is directly involved in many research and international projects sponsored by UNDP/GEF, the World Bank, China central government, and has published and/or edited 14 books and more than 40 papers/presentations, including “China Village Power Project development Guidebook” and the series books of “Capacity Building Strategy for the Rapid Commercialization of Renewable Energy in China” for UNDP. He received his Master’s Degree in Engineering Technology in the US, and Master’s Degree in Electric Engineering in China, and once worked on his doctoral degree on Industrial Engineering at Texas Tech University.

To download the Micro-Hydro Power case study from the GIM database, please click here.

What is the project’s basic value proposition and what makes its financial model sustainable?

The economic development is slow for these remote villages located in China’s western mountain regions and the life of these villagers is poor because of their inability to access electricity.  Extension of traditional utility power line is not viable, and not affordable for low-income residents.  Finding a technical and economically feasible solution is key for rural electrification in such areas.  Micro-hydro power is the least costly technology for power generation compared with other renewable energy technologies and traditional power plants. This case provides a successful example of local people relying on their own efforts to develop an electricity service without government and outside financial assistance and improve their life.

In developing countries, what are the main challenges for access to energy for the poor?

The main challenges for access to energy for the poor in developing countries is to develop a solution for a financially and technically sustainable power supply and affordable power service.

What main factors make this model successful that will allow it to be replicated elsewhere?

First, availability of resource and technology. Second, affordability of the solution (again, micro-hydro power generation is one of the least costly power generation technologies). Third, self-motivation (local residents wished to change their status). Fourth, clear ownership (the micro-hydro power system was developed and managed by the villagers themselves).

What would you say was critical about the actor ecosystem that enabled this business to be successful?

The villagers there have lacked power supply for generations. They wished to change this situation.  But the local utility company is not interested in expanding the service to such areas due to high investment and poor return (or even no return, since the losses from the power transmission may be even more than the power to be applied).  Micro-hydro power generation provides an affordable and environmentally friendly solution, since usually, for such a micro-hydro power generation, no civic construction is needed.  The water flow will not change significantly, which means little negative impact on local ecosystems compared with large hydro dams.

 

In the framework of the fourth United Nations Conference on Least Developed Countries, UNDP –  in partnership with the United Nations Capital Development Fund (UNCDF), the State Planning Organization (SPO), the Turkish International Cooperation and Development Agency (TIKA), Vodafone and Visa – organized a seminar / workshop on “Expanding Global Financial Inclusion through Government to Person (G2P) Payments and Emergency Cash Transfers”, held at the Istanbul International Center for Private Sector in Development (IICPSD) premises on May 11, 2011. The event was attended by about sixty participants from the private and public sectors, civil society organizations and development practitioners, including from the LDCs, in an effort to strengthen South-South cooperation.

Ms. Ulrika Richardson-Golinski, Deputy Resident Representative, UNDP Turkey, gave the opening remarks, expressing her gratitude for the participation of various stakeholders in this important discussion about financial inclusion and the role of different actors such as the government.

Ms. Kori Udovicki, Director of the Regional Bureau for Europe and the Commonwealth of Independent States and Assistant Secretary-General, UNDP, talked about UNDP’s recent work on social exclusion in the region, including the forthcoming Regional Human Development Report, which explicitly recognizes access to financial services as a critical element of its multidimensional measure of social exclusion. Ms. Udovicki then addressed: 1) why scaling up access to financial services for the poorest was critical for broad-based, sustainable development; 2) what G2P transfers to low-cost savings accounts could do to markedly boost financial inclusion in a way that is a win-win for all actors involved (governments, providers of financial and telecoms services, payment recipients); and 3) how mobile phone-based branchless banking and routing remittance flows to G2P accounts could bring volumes towards commercially viable levels in poor countries.

Mr. Sahba Sobhani, IICPSD Interim Director, presented different mechanisms for transferring cash to the poor as part of a primer on G2P Payments and Emergency Cash Transfers being developed in collaboration with the UNDP Bureau for Crisis Prevention and Recovery. These include: 1) Government to Person (G2P) Cash Transfers, mostly used for social protection transfers (whether conditional or unconditional) and payment of wages/pensions to low income employees; and 2) Donor to Person (D2P) Cash Transfers, mostly used in emergency situations (e.g. Cash for Work), microfinance schemes, as well as livelihoods and microenterprise programming. Mr. Sobhani also explained the process of setting up cash transfers, from establishing recipients’ identity to communicating program, ensuring security, identifying partners, establishing the payment system (with a focus on electronic systems), resolving disputes, monitoring and evaluating.

Opening speeches were followed by a discussion on current global programs and the role of governments and international organizations, moderated by Mr. Balazs Horvath, Poverty Reduction Practice Leader, UNDP Bratislava Regional Center. Presentations were made by the following speakers:

  • Mr. David Morrison, UNCDF Executive Director, explained the significance of this event by addressing the fact that it brought major international organizations working on financial inclusion together. Mr. Morrison underlined that the main challenge of extending financial services to the LDCs was to establish operating financial systems in a context of underdeveloped infrastructure, limited financial institutions, unconducive regulatory environment, traditional approach to banking, and lack of coherence between different actors (public, private and donors). In this respect, Mr. Morrison made particular emphasis on financial literacy and women-controlled savings accounts, based on the experience of microfinance, and concluded by stressing the significant role of the private sector.
  • Mr. Thomas Debass, Director for Global Partnerships, US State Department, discussed the Haiti Integrated Finance for Value Chains and Enterprises (HIFIVE) project, aimed at improving the availability of financial products and services, especially in rural areas, and supporting the expansion of agricultural and other production sectors. Mr. Debass specified how HIFIVE and the Gates/USAID Challenge Fund are working together with financial institutions in Haiti, such as MFIs and credit cooperatives, to diversify financial products and extend their reach to agricultural and rural areas, using appropriate incentives and risk management activities. ICT solutions and value chain finance were also named as important components of financial inclusion, in addition with cooperation between strategic partners, such as the World Council of Credit Unions and Technoserve.
  • Mr. Yusuf Yuksel, Head of Income Distribution & Social Inclusion Department, State Planning Organization, Turkish Government, presented the Social Support Programme SODES, which aims to raise the socio-economic development level, enhance the human capital of the region, offer opportunities to the disadvantaged groups of society, and encourage children, youth and women to be involved in cultural, artistic and sports activities. From 2008-2010, over 20,000 people attended vocational training courses, 1,000 received microloans, 336,000 books were distributed, and over 32,000 students attended education support programmes, among other achievements.
  • Prof. Dr. Julide Yildirim Ocal, from Gazi University and the Center of Research for Advanced Technologies of Information and Information Security, presented Conditional Cash Transfer Programs in Turkey, which have benefited 4.3 million people from 2003-2011. One such program is the Social Risk Mitigation Project, aimed at improving children’s health, pregnancy care, and children’s education (especially girls).
  • Mr. Omer Kuyucu, Head of Unit at Vodafone, made a presentation on mobile banking experience in Africa and the Pacific, emergency cash transfer in Kenya and the potential for G2P. In Kenya, with the cooperation of Visa and Vodafone, mobile banking was introduced and people’s awareness of financial services increased to 80%, while 66% could access banking through mobile devices even though the banking infrastructure was very underdeveloped. In Tanzania, despite the high literacy rate of 70%, only 9% of the population had access to banking services and similar positive outcomes were achieved after the launch of mobile banking. Mr. Kuyucu identified regulatory environment, standardization of processes, availability and ease of use of end-user devices as critical for such projects to extend financial inclusion.

Mr. Henry Jackelen, Director of the Private Sector Division, UNDP, wrapped up the discussion by emphasizing the special role of the private sector in global financial inclusion, and underlining the use of technology and innovation as critical for improving the availability of financial services. Mr. Jackelen point out to the examples of Vodafone and Visa in this regard and explained that these cases showed how private sector can make a difference and revolutionize the life of the poorest.

Closing remarks were made by Ambassador Ertuğrul Apakan, Permanent Representative of the Turkish Government at the United Nations, who pointed out the special relationship between Turkey and UNDP, and how Turkey gained valuable experience through more than 50 years of cooperation with UNDP. He highlighted UNDP’s offering to Turkey to become a strategic partner in the region and the opening of the Istanbul International Center for Private Sector in Development (IICPSD) as an outcome of this agreement. Ambassador Apakan explained that the “Programme of Action for the LDCs for the Decade 2011-2020” makes significant reference to the critical role of private sector, and that the IICPSD will play a regional role in promoting the inclusion of private sector in development. He concluded the event by expressing Turkey’s willingness to establish a UN regional hub in Istanbul and how UNDP had already taken a step in this direction with the inauguration of the IICPSD by UNDP Administrator Ms. Helen Clark.

The event was followed by a lunch with participants at the Orient Express Restaurant at Sirkeci Station, famous for the Orient Express and Agatha Christie.

 

In a recent speech delivered at the occasion of the private sector side event of the Japan MDG Conference (Tokyo, 3 June 2011), attended by about 400 people, including Japanese company executives and representatives from over 40 diplomatic missions, UNDP Administrator Helen Clark speaks about the potential of the private sector for achieving the MDGs, making reference to the recent GIM Report “The MDGs: Everyone’s Business”, whose executive summary has just been translated into Japanese, and GIM case studies A to Z Textile Mills, Key Coffee (upcoming) and M-PESA.

Please find below a full transcription of the Administrator’s speech:

Remarks by Helen Clark, UNDP Administrator
The MDGs and Business: Potentials of the Private Sector for Achievement of the MDGs
Japan MDG Conference – Tokyo, Japan, 3 June 2011, 15:00-17:30

I appreciate the opportunity to address this important side event on the potential for the private sector to support achieving the Millennium Development Goals (MDGs).

I am particularly pleased to see the large number of people participating in this event, and I thank you for the commitment you are showing to the MDGs by being here.

When the MDGs were launched at the beginning of the new millennium, it was a time of hope. The eight goals were, and still are, the most comprehensive and universally agreed development goals. For the world’s poorest and most vulnerable people, they held out the promise of a better life.

Over the last decade, we have seen impressive progress on the MDGs, including in least developed countries. That shows that with the right policies, adequate investments, and international support, the MDGs are achievable. Yet, significant challenges remain: many countries and people are being left behind, and the crises of recent years have placed additional obstacles in the way.

To deliver on the MDG promise of a decade ago, we need strong partnerships. In our interconnected world, the dividing line between “their” problems and “our” problems is getting obsolete. If our neighbours are poor and struggling, our prospects are affected too. Development is everybody’s business.

In these efforts, the role of governments is critical, but they can’t deliver the needed development results alone. Broad partnerships, including with the private sector, are needed.

The role of the private sector in MDG achievement

Economic growth, which is essential for development, is driven largely by the private sector. In many ways, businesses – from multinational corporations to micro, small, and medium sized enterprises generate the growth which can support MDG achievement.

For example, Mexico’s private sector created more than twelve million jobs in the decade from 1989 to 1998, and microfinance has helped many of the world’s poorest people get a fresh start.

How can businesses contribute?

There are many different ways in which businesses can contribute to MDG achievement:

First of all businesses can benefit the poor by including them in their core business operations, whether that be it as producers and business partners in their supply and distribution chains; as employees in the workplace; or as consumers in the marketplace.

There are many examples of companies which have successfully integrated the poor into their business models.

For example, A to Z Textile Mills of Tanzania is the sole African producer of long-lasting insecticide bed nets. Its products help the fight against malaria, and making them provides work for more than 3,000 women. That was made possible by a broad public-private partnership, involving, among others, the Japanese chemical company Sumitomo.

In the agricultural sector, another Japanese company, Key Coffee, is training, and providing a reliable source of income for, hundreds of Indonesian farmers, by sourcing quality Arabica coffee beans from them at fair prices.

A recently published UNDP report, “The MDGs: Everyone’s Business”, whose executive summary has just been translated into Japanese, provides many more examples of how businesses can contribute to the MDGs.

These examples show how it is possible both to be profitable and to improve the lives of poor people and communities. UNDP’s “Growing Inclusive Markets” initiative promotes exactly such business models, where the pursuit of wealth creation, human progress, and environmental sustainability are seen as entirely compatible.

In Ghana, for example, UNDP’s Green Commodities Facility facilitated a partnership between the government and Kraft-Cadbury. The result has been strengthened extension services for cocoa farmers, enabling them to adopt sustainable agricultural practices and increase their incomes.

A second way in which the private sector can make important contributions to advancing progress on the MDGs is through bringing low cost innovations to market.

There is now low cost mobile technology to conduct life saving heart scans; as there are energy efficient LED lamps which enable allow poor children to do their homework at night; smokeless stoves which support better health for those who labour over them; and mobile phone and internet applications which support small farmers and fishermen get access to better prices.

Innovations like these, when accessible to the poor, definitely can contribute to MDG achievement.

A third, and perhaps a more traditional way, for businesses to promote MDG achievement is by giving back to the community through corporate social responsibility activities and philanthropy. The scope and magnitude of these kinds of activities has multiplied in recent times – and indeed they need to be brought to scale more consistently to have wide impact.

The Business Call to Action is a global partnership of businesses, governments, and the UN which encourages and supports companies to adopt inclusive business models to spread the benefits of development.

The companies implementing the Call to Action fully appreciate that what benefits their bottom line can also benefit local communities. By adopting inclusive business models, they have pledged to generate jobs, to help farmers increase their productivity and incomes, and enable people to access affordable technology.

For example, Sumitomo Chemical, which I mentioned earlier, joined the Business Call to Action, and committed to increase the local production of bed nets in East and West Africa. That is generating 5,000 new jobs, and potentially saving 400,000 lives from malaria, over the next five years.

Another member company, Vodafone, is providing poor communities with basic financial services through its mobile money transfer platform ‘M-PESA’. Launched in 2007 with Safaricom in Kenya, and now available in Afghanistan, Tanzania, and South Africa, it allows over sixteen million subscribers to transfer money and pay bills via their cell phones.

I encourage all of the businesses represented here today to join the Business Call to Action if they have not already done so.

Looking forward, one of UNDP´s ambitions is to build broader and more strategic alliances with the private sector and other partners, around key development challenges of common concern, such as the provision of energy, job creation, and supporting green growth.

By doing so, we not only advance development, but we also unlock the potential of the unrealized markets at the bottom of the economic ladder.

UNDP’s new Istanbul International Centre for the Private Sector in Development, being established with support from the Government of Turkey, will be promoting best practice in inclusive business models and strategic dialogue with the private sector.

Conclusion

Helping to achieve the MDGs offers not only opportunities for corporate philanthropy, but also opportunities to build new markets and incorporate new players in value chains. All that is conducive to development, and will support development progress overall.