Global Compact – the Pakistan Experience Presentation for 5 th regional JPO Workshop, Hanoi June

Sequence of Events Media Launch - media briefing held in Islamabad, 15 May 2003 Pre-Launch Workshop on Global Compact by Employer's Federation of Pakistan in Karachi on 27 September 2003 (CEO, Pakistani private sector and multinationals) Formation of Global Compact Steering Board, first meeting held in Islamabad on 1 October 2003 Next step – the Global Compact Foundation

Media Launch Launching event to mobilize support and create awareness GC web site developed § Examples of GC related initiatives already exciting in Pakistan ( UN and non-UN associated) Pre-Launch Workshop on Global Compact arranged by Employer's Federation of Pakistan to generate interest among stakeholders § Keynote speakers on Universal Principles of Human Rights, Labour Standards and Environment Pre – Launch Workshop

Poverty Reduction- Examples of Concrete Partnerships § The Program for Improving Livelihoods in Urban Settlements (PLUS) is aimed at introducing and experimenting an alternative, integrated, effective, affordable and community-based approaches for improving the conditions of the predominantly low income communities in selected urban areas. § National Commission on Human Development channel resources from the Government of Pakistan, the private sector and the international donor community. § Industrial Information Network - INN, to promote SMEs in Pakistan and oversees, and facilitate entrepreneurs in e- commerce trade established by UNIDO in 2001 with technical assistance of COMSATS, MOST and SMEDA worth Rs. 40 million

Formation of GC Steering Board In order to consult and involve all stakeholders, and determine a Plan of Action, a core group of champions among business, government, civil society, media and academia – The Global Compact Steering Board – was formed, with UN facilitation.

The Composition of the Steering Board: Patron:Minister for Commerce Chairman:UN Resident Coordinator Members: UN agencies (UNDP, ILO, UNIDO) Government Business sector Academia Civil Society

Recommendations from the Board: GC initiative shall: be dovetailed to national priorities go down to local level be governed by clear institutional mechanisms, to ensure transparent and sustainable implementation of practical partnerships and projects create public awareness on the importance and benefits,and undertake research and advocacy as first critical steps mobilize further resources to further the initiative The Steering Board decided to establish a Foundation to take the GC imitative further

The GC Foundation, led by the business community, will act as the principal agency to engage with interested stakeholders, and initiate, facilitate and support events, projects, partnerships, networks, dialogues and research, under the Global Compact Pakistan banner. It shall: § Provide a common neutral and organized platform for initiating diversity of actions and engaging all interested stakeholders § Institutionalize initiatives and capitalize/disseminate knowledge and expertise § Provide a formal, accountable, flexible and transparent framework for resource mobilization and utilization The GC Foundation

Next steps… The GC Steering Board has decided to dissolve itself as and when the Foundation will be established. The GC process will then be completely handed over to the Foundation. The Foundation will then operate through its Board of Directors (consisting of a majority of business leaders), and its working sub-committees, where all interested stakeholders will be able to work in partnership around issues and projects of common interest. The UN will continue to get involved in GC related activities, but as a facilitator and broker.

Board of the Foundation The Board of the Foundation would be a broad-base representation and act as the policy-making body for Global Compact Pakistan. Subject to the provisions of the (Societies registration ACT 1860), the following members of the Board are proposed: 5 representative associations of the corporate sector 3 public sector agencies’ representatives 2 representatives from civil society and academia UN Resident Coordinator will act as an observer on behalf of participating UN agencies

Summary of recommendations: 1. Develop institutional frameworks for the Global Compact by: § Establishing a Global Compact Foundation § Embedding into existing institutional networks and platforms 2.Employ a bottom-up approach and localizing Global Compact initiatives through: Global Compact City Initiative, TimeBanks Initiative, Focus on SMEs, Focus on public-private partnerships that involve and benefit communities

Summary of recommendations cont. 3. Focus on Advocacy, Outreach, Research and Learning by: § Working closely with stakeholders to raise awareness about Global Compact and its principles through seminars, workshops and trainings § Establish Chairs and Fellowships at premier universities § Establish learning centers § Carry out research on relevant topics § Participate in international events to raise country profile and learn from international practices § Engage in consistent communication with stakeholders through media including advertising, websites, newsletters, articles and supplements

Summary of recommendations cont. 4. Develop incentives for good practice and assist business and industry in self-regulation by: Instituting various Global Compact awards, Capacity building of associations to strengthen self-regulatory frameworks 5. Formalize the commitments made by stakeholders by signing Memorandum of Understanding with partners, outlining areas and nature of partnership and thus develop and sustain momentum on the Global Compact Pakistan agenda.

Resource Mobilization Start-up § Received some funds from RC and UNDP CO budgets, hired one national consultants and had one UNDP PO as focal point Resource Mobilization Strategy § Board members have committed initial funding § Developed detailed recourse mobilization strategy for both cash and in kind contributions for private sector, government, development agencies, civil society and academia contributions

Some lessons learned... Perceptions – initial criticism of “UN blue wash” of corporate sector Need to be pragmatic at country level, important to link it to concrete local ideas and initiatives on corporate social responsibility § It is a voluntary, multi-stakeholder network bringing business together with UN, government, labour and civil society to advance responsible corporate citizenship. § It is a framework to facilitate better interaction and increased partnerships between the public and the private sectors, with the ultimate objective to promote and support development. § to match ideas, partners and resources

Some lessons learned... Difficult to get started without any funds, as partners were reluctant to host the initial events Feedback – the power of the logo makes many interested in the GC, opportunity for SMEs to associate with UN Ownership – many wants the primary ownership, difficult to work with so many “VIPs” at one time “Bottom-up approach” – forging partnerships at district and city level, devolution process opens opportunities ( 80% of labour force employed in SMEs)

Thank you!