UNDP and

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UNDP and the Business Sector
A Strategic Partnership to Make Business Work
for the Poor
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• Session Outline
• The How process, tools
• UNDP partnership approach
• UNDP strategic goals and opportunities

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The Partnership Process and the Tools
General organizational instruments to facilitate
manage cooperation

• Policy Statement
• Guidelines
• Screening support
• MOU Project Document - CSA
• Advisory Board / Steering Committees
• Starters Toolkit

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Tools / Instruments
UNDP Policy Statement

• The various types of engagement with
• business

Principles to navigate cooperation with business

• Based on national priorities
• Support UNDPs overall goals
• No commercial or productive activities
• Impartiality and no conflict of interest
• Transparency and coordination
• No special advantage or exclusivity
• Inclusion of all stakeholders
• Sufficient resources, time and capabilities from
  UNDP

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and the WHAT NOT

• NO Commercial activities
• NO UNDP as contractor for a private
• investment / tax breaks for company imports
• NO activities where the primary beneficiary
• is the company itself
• DO ask yourself what is the motivation
• of the company

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Tools / Instruments
UNDP Guidelines

• Complements SGs Guidelines
• Key elements
• Screening / assessing the partner
• How to Define the Partnership Activity
• Types of agreements governing contributions
• Approval procedures / authorities
• Use of UNDP name and emblem
• Business ethics, Code of Conduct for UNDP staff
• Documenting experiences, learning
• Internal support units etc

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Tools / Instruments
Screening / assessing the partner
Inter-agency Corporate Assessment Tool - Calvert

• Child labour, forced labour
• Health and safety records and practices
• Freedom of association
• Discrimination and diversity
• Corruption
• Working hours
• Remuneration
• Product safety and impact
• Community relations
• Indigenous peoples rights
• Environmental records and practices
• Human Rights records and practices
• Overall public reputation

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Tools / Instruments Formalizing the cooperation
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Tools / Instruments
in general also consider
Advisory Board / Steering Committees to provide
overall advice and feedback along with insight
and a deeper understanding of the business
perspective
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Tools / Instruments
Starters Toolkit
Practical tips to get started

• Strategy Development
• Managing partnerships in the country office
• UNDP as advocate for CSR
• Using Global Compact as framework
• Formalizing cooperation
• Communications and media

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Partnerships both an art and a science

• Art
• Insight, imagination
• Vision, creativity
• People skills
• Active listening
• Personal engagement

• Science
• Knowledge, analysis,
• conceptualization
• Understanding the past
• Administrative, organized
• Precise communication
• Professional detachment

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Division for Business Partnerships
External global relationships Internal
support Double T strategy deepen widen

• Overall advice, guidance and support to COs,
  units
• Global positioning of UNDP with business, donors
• Broker, guide and coordinate partnerships
  (global, national)
• Support negotiations and partnership development
• Knowledge Packs Sharing good practice
• Screening of Companies Calvert Database
• Toolkit, policies, guidelines
• Support to strategy development, training
• Global Compact
• Growing Sustainable Business initiative
• http//intra.undp.org/brsp/business/index.html

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UNDPs Partnership Approach

• A facilitator / broker of partnerships
• A partner

UNDP as
Types of engagement with business

• Advocacy, policy dialogues
• Partnership projects - practice areas / MDGs
• Facilitate sustainable investments and private
  delivery of services products
• Support to private sector development

• Global Compact as a platform framework
• Commission on PSD Report as guide

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UNDP Strategic Goals Opportunities 2004

• 1. Commission on Private Sector and
  Development
• Strategic partnership projects
• UNDP as a broker of sustainable,
• pro-poor investments (Growing
• Sustainable Business)
• 4. Mainstreaming business partnership approach
• 5. Strengthen expand Global Compact country
  networks

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UNDP Strategic Goals Opportunities 2004

• UNDP as Broker - Growing Sustainable Business
• Pilots in Ethiopia, Madagascar, Tanzania
• i) Broker sustainable business investments
• - New business models, largesmall enterprise
  linkages
• ii) Multi-stakeholder alliances to ensure
  sustainability
• link to development (MDGs, PRSPs)
• Investment examples
• EDF / E7 peri-urban electrification
• ABB rural energy solutions
• Ericsson - rural telephony
• Tetra Pak support dairy production
• GSB and brokerage scaled up in 2004 2005 UNDP
  niche (?)

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UNDP Strategic Goals Opportunities 2004

• Strategic, significant partnership projects
• (Large scale, replicable, long-term
  relationships)
• Examples
• i) Governance, sustainable development plans -
• Statoil Venezuela BP Indonesia Shell Nigeria
• Environment, biodiversity - Nexen Yemen LPG
  Challenge Multifunctional platforms (Aarhus)
• SME development - ChevronTexaco Angola Supply
  Chains Mexico
• ICT - Microsoft, Cisco Global
• Social, environmental impact assessments - Shell,
  China pipeline Aracruz/Stora Enso, Brazil

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Examples of Partnership Initiatives
Global Networking Academies in LDCs ICT for
development Who? CISCO, UNDP, UNV, USAID What?
To meet the IT skills shortage in LDCs by
establishing networking academies and provide
training in computer networking. Academies in 10
countries. How? UNDPs initial involvement
started under the Asia regional programme on ICT
for development through negotiations between UNDP
- CISCO.
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Examples of Partnership Initiatives
Ghana ICT to the country Mobile Telecentre
To-Go Who? Government, UNDP, 11 companies, civil
society groups What? Introduce information and
communication technology to schools, health
clinics, farms, local businesses, NGOs etc.
through mobile telecentres located in a bus. How?
UNDP organized workshop to present various ICT
related initiatives and ideas. Several companies
became interested and recognized importance of
ICT.
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Examples of Partnership Initiatives
China Social impact and poverty alleviation
WestEast pipeline Who? UNDP, Shell,
PetroChina, Government, Universities and various
institutes What? UNDP is undertaking social
impact assessment in preparation for the
construction of West-East pipeline, to ensure
that social and community concerns are taken into
consideration and are being addressed, and to
examine how local communities along the pipeline
can best benefit from the project. How? UNDP,
based on an agreement with Shell, has engaged the
Government, PetroChina and various universities,
development institutes and local governments to
participate in the assessment exercise.
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Examples of Partnership Initiatives
Venezuela Governance Human rights Who?
Government, Amnesty International, Statoil and
UNDP What? Build capacity within judiciary
system on international human rights law.
Training of judges and federal prosecutors as
trainers. How? Statoil approached UNDP for
cooperation and protection of human rights was
defined as area of common interest. This
coincided with strengthened emphasis on human
rights in national judicial system.
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UNDP Strategy Private Sector Development

• Distinguish from partnerships, but
• convergence partnership for private sector
  development
• PSD, income generation, microfinance - MYFF
  service lines
• Commission report provides direction
• Main areas for UNDP private sector development
• - Technical assistance, business services
• - Microfinance (UNCDF / SUM)
• - Facilitate investments
• - Policy advice, policy reform (emerging)

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UNDP Strategic Goals Opportunities 2004

• From business partner
• Financial
• Expertise
• Training
• Management
• Technical
• Goods, equipment
• Employee volunteers
• Employee secondment
• Office space
• Venues for events
• Transport

HOW?
Partnership Projects Types Of Contributions
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UNDP Strategic Goals Opportunities 2004

• Mainstreaming business partnership approach
• Business engagement partnerships, a way of
  working
• UNDP Task Force on private sector partnerships
• Stronger network of focal points - practice
  areas, COs,
• regional bureaus
• Knowledge Packs - partnerships by practice
  area
• Knowledge database current partnerships, good
  practice

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Tools / Instruments
Execution mechanisms

• Normal UNDP projects - with business as partners
  
• NEX / DEX preferred, agency execution possible
• Use of cost-sharing mechanism recommended
• DAS (CO Admin. budget for smaller contributions)
• Umbrella programme model China
• Project arrangements should have element of
  partnership management (e.g. multistakeholder
• steering committee)

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Partnership phases skills
1. Partnership exploration Internal assessment,
external mapping, consultations, advocacy,
positioning, networking, relationship
building 2. Partnership building Consensus
building, facilitation, negotiations, agreements,
project formulation, targets - define success 3.
Partnership implementation maintenance Monitorin
g, reporting, reviewing, capacity building 4.
Completing projects sustaining relationships
Evaluation, replication / scale up
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Partnership phases skills
Phase 1 Partnership exploration
Skills needed
Key Tools
Internal assessment process Understand
incentives, negotiables, obstacles, assets
Internal assessment Consultation Communication
Consultation process Identify stakeholders and
partners
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Partnership phases skills
Phase 1 Partnership exploration
Do an organizational self-assessment

• What are our own interests?
• What are our strengths / weaknesses etc (SWOT)?
• Are we ready to collaborate?
• - Attitudes among staff towards business
• Why would business want to work with us?
• What are the opportunities in our area?
• Are there any particular risks?
• Cost / benefit analysis

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Partnership phases skills
Phase 1 Partnership exploration

• Possible criteria for selection of
• business partner
• Environmental records practices
• Human Rights records practices
• Overall public reputation
• Child labour, forced labour
• Health safety records practices
• Freedom of association
• Discrimination and diversity
• Corruption
• Product safety and impact
• Community relations
• Indigenous peoples rights

TOOL
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Partnership phases skills
Phase 2 Partnership building
Skills needed
Key Tools / Tasks
-Consensus building methodology (shared visioning
workshop, joint action planning etc) - Resources,
roles, responsibilities - Consider use of mediator
- Consensus building - Facilitation / mediation
overcoming preconceptions - Negotiation
closing deals - Programme formulation
- Partnership agreements MOU, financial
agreement, work plan, grievance mechanism etc.
- Project document
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Partnership phases skills
Phase 3 Partnership maintenance
Skills needed
Key Tools / Tasks
- Communication tools - Indicators, measurement
tools, benchmarks - Strengthen partner capacity
to meet their commitments - Partnership
indicators - Assess achievement of each
partners objective
- Management capacity - Mentoring coaching
Others - Capacity building - Monitoring
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Partnership phases skills
Phase 3 Partnership maintenance / completion
Agree on tool to track development benefits
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Partnership phases skills
Measuring partnership results and impact
Measuring for success IBLF / Cambridge CD IFC
measurement sustainable business
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Development is an Interdependent Process with
Increasingly Diffused Decision Making

• The State provides governance framework,
  infrastructure and basic social
  services
• CSOs advocate for groups not well represented
• Private business drives economic development

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Partnerships bring benefits to all partners

• Potential benefits
• Increased access to resources (pooling /
  leverage)
• Increased participation social capital!
• Development of human capital
• Better access to information
• Enhanced legitimacy credibility
• Improved operational efficiency
• More effective / appropriate products services
• Organizational innovation

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Key lessons

• Capacity building is critical attitudes
• Involve the entire office, get RR fully on-board
• Understand why partners are interested
• Substantive credibility attracts partners
• UNDP visibility attracts partners
• Be opportunistic but with principles
• Focus on creating small successes will
  generate
• confidence and more success
• PATIENCE!

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Development interdependent process complex,
multi sectoral