Canadian International Development Agency Agence canadienne de développement international Mobilizing Private Sector Contributions to MDGs FOCAL Roundtable Ottawa, September 13, 2005 Christine Johnson Policy Branch, CIDA Mobilizing Private Sector Contributions to MDGs FOCAL Roundtable Ottawa, September 13, 2005 Christine Johnson Policy Branch, CIDA

Millennium Development Goals (MDGs) Growth rates will have to double in order to halve poverty by 2015 (MDG1) Global partnership for development needed to complement aid (MDG 8) Private sector and civil society involvement critical to success Growth rates will have to double in order to halve poverty by 2015 (MDG1) Global partnership for development needed to complement aid (MDG 8) Private sector and civil society involvement critical to success

UN Commission on the Private Sector and Development Co-chaired by Canadian Prime Minister Paul Martin and former Mexican President Ernesto Zedillo Commission included private sector representatives (e.g. HP, Citigroup) Final report, March 2004 – Unleashing Entrepreneurship: Making Business Work for the Poor Co-chaired by Canadian Prime Minister Paul Martin and former Mexican President Ernesto Zedillo Commission included private sector representatives (e.g. HP, Citigroup) Final report, March 2004 – Unleashing Entrepreneurship: Making Business Work for the Poor

Martin-Zedillo Report Create an enabling environment: –Global and domestic macroeconomic environment –Level playing field for smaller enterprises –Rule of law Partner and innovate: –Access to broader financing options –Physical and social infrastructure –Skill and knowledge development Mobilize private resources: –Bottom of the pyramid markets –Ecosystems, networks and partnerships –Corporate governance and responsibility Create an enabling environment: –Global and domestic macroeconomic environment –Level playing field for smaller enterprises –Rule of law Partner and innovate: –Access to broader financing options –Physical and social infrastructure –Skill and knowledge development Mobilize private resources: –Bottom of the pyramid markets –Ecosystems, networks and partnerships –Corporate governance and responsibility

Mobilize Private Resources Providing affordable products and services –Example: Cemex Contributing to business ecosystems –Example: Hindustan Lever Ltd., SC Johnson Promoting responsible business practices –OECD Guidelines, ILO, Global Compact Social investment??? Providing affordable products and services –Example: Cemex Contributing to business ecosystems –Example: Hindustan Lever Ltd., SC Johnson Promoting responsible business practices –OECD Guidelines, ILO, Global Compact Social investment???

Challenges Existing aid delivery structure Continuing distrust about private sector Performance management issues Resource pressures What can the private sector do? -Identify new approaches -Clarify policy discourse -More effective dialogue with voluntary sector -Mobilize private sector associations Existing aid delivery structure Continuing distrust about private sector Performance management issues Resource pressures What can the private sector do? -Identify new approaches -Clarify policy discourse -More effective dialogue with voluntary sector -Mobilize private sector associations

Conclusions Need to rethink Canadian contributions to development – beyond official aid Develop a new approach to working with private sector towards MDGs Private sector can do more to increase awareness and develop new approaches Need to rethink Canadian contributions to development – beyond official aid Develop a new approach to working with private sector towards MDGs Private sector can do more to increase awareness and develop new approaches