B u s i n e s s A c t i o n f o r t h e M D G s
Private Sector Involvement as a
Vital Factor in Achieving the
Millennium Development Goals
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B u s i n e s s A c t i o n f o r t h e M D G s
Private Sector Involvement as a
Vital Factor in Achieving the
Millennium Development Goals
��
Copyr�ght © 2005 The Internat�onal Bank for Reconstruct�on and Development.All r�ghts reserved.
���
How the MDGs are un�que compared to prev�ous development goals ............1
Bus�nesses are �ncreas�ngly �nvolved �n ach�evement of the goals .....................1
How the pr�vate sector can become �nvolved ...................................................4
Reasons bus�nesses are �ncreas�ngly �nvolved �n the MDGs .............................4
How countr�es are engaged w�th the pr�vate sector .........................................5
How the MDG task forces are engaged w�th the pr�vate sector .......................5
Recommendat�ons from the pr�vate sector ......................................................9
Conclus�on ....................................................................................................24
B u s i n e s s A c t i o n f o r t h e M D G s
Private Sector Involvement as a
Vital Factor in Achieving the
Millennium Development Goals
�v
1
how the MDGs Are unique coMpAreD to previous DevelopMent GoAls
When the U.N. M�llenn�um Development Goals (MDGs) were first an-
nounced, many development profess�onals felt that the MDGs were s�mply an-
other set of prom�ses r�fe w�th rhetor�c and set to form another set of broken
prom�ses to the poor. Upon further reflect�on, several key factors d�st�ngu�sh
the MDGs from prev�ous “comm�tments” to end poverty, and wh�ch are v�tal
to the success of the �n�t�at�ve:
• Non-�ndustr�al�zed countr�es are �nvolved �n all aspects of real�z�ng the
goals, �nclud�ng strateg�c plann�ng, �mplementat�on, and report�ng.
• The goals are measurable, w�th reportable performance evaluat�on tar-
gets, dates and metr�cs �dent�fied and outl�ned for each MDG.
• Over 100 part�c�pat�ng non-�ndustr�al�zed countr�es are �nvolved �n mon�-
tor�ng and report�ng on those performance metr�cs.
• There �s strong bus�ness �nterest and �nvolvement.
Businesses Are increAsinGly involveD in AchieveMent of the GoAls
In 2005, the Corporate Soc�al Respons�b�l�ty pract�ce at the World Bank
Inst�tute conducted a survey to �dent�fy examples of bus�ness’ �nvolvement �n
ach�evement of the MDGs. Responses were rece�ved from over 30 organ�za-
t�ons d�rectly �nvolved �n the MDG campa�gn �nclud�ng the MDG task forces
B u s i n e s s A c t i o n f o r t h e M D G s
Private Sector Involvement as a
Vital Factor in Achieving the
Millennium Development Goals
2
on Ch�ldhood Educat�on; Ch�ldhood Mortal�ty; Technology Access; Hunger;
and Safe Dr�nk�ng Water; the Bus�ness Counc�l for the Un�ted Nat�ons; Center
for Sc�ence, Technology and Soc�ety; Earth Counc�l All�ance; Equal Access;
Global Compact; M�llenn�um Campa�gn; S�ster C�t�es Internat�onal; TIME
Internat�onal; Un�ted Nat�ons Fund for Internat�onal Partnersh�ps; Un�ted
Nat�ons Development Program; Un�ted Nat�ons Foundat�on; the World
Technology Network, and several from the pr�vate sector. Th�s survey revealed
several examples of d�rect bus�ness �nvolvement �n partnersh�p �n�t�at�ves that
are d�rectly or �nd�rectly related to the M�llenn�um Development Goals. They
�nclude:
• AMD’s 50X15 �n�t�at�ve to empower 50% of the world’s populat�on w�th
bas�c Internet serv�ce and comput�ng access by the year 2015;
• The pr�vately-funded Akshaya Patra Foundat�on School Feed�ng Program
that prov�des free meals everyday to poverty str�cken school ch�ldren �n
southern Ind�a
• Bus�nesses are support�ng mult�ple fellowsh�p and capac�ty-bu�ld�ng pro-
grams for m�cro-enterpr�se, soc�al enterpr�se and other “strong hybr�d” or
“market-based solut�ons” to poverty and susta�nable econom�c develop-
ment that are �nnovat�ve, effect�ve, and scalable and wh�ch have measur-
able �mpact. Examples �nclude:
– Global Soc�al Benefit Incubator (Santa Clara Un�vers�ty, CA, USA),
wh�ch br�ngs together pr�vate sector S�l�con Valley expert�se to �m-
prove, fund and scale up �nvent�ons that benefit the poor;
– Reuters D�g�tal V�s�on Fellowsh�p Program, a n�ne-month fellowsh�p
course that br�ngs together 15 exper�enced technolog�sts and soc�al
entrepreneurs from around the globe. Accepted fellows spend a sab-
bat�cal year �n the heart of S�l�con Valley, where they collaborate w�th
faculty, students, commerc�al technolog�sts, and—most �mportantly—
each other as they work on the�r projects.
– Ashoka, an organ�zat�on that �dent�fies and �nvests �n lead�ng soc�al
entrepreneurs—extraord�nary �nd�v�duals w�th unprecedented �deas
for change �n the�r commun�t�es—support�ng the �nd�v�dual, �dea and
�nst�tut�on through all phases of the�r career.
• ChevronTexaco N�ger�a YES All�ance ut�l�zes corporate exper�ence and
expert�se to emphas�ze bus�ness sk�lls tra�n�ng among N�ger�an �n-school
youth
3
• Coca-Cola Afr�ca Foundat�on offers ant�-retrov�ral drugs to employees,
spouses, and ch�ldren w�th UNAIDS;
• Freeplay Foundat�on prov�des w�nd-up and solar powered rad�os and l�fe-
sav�ng �nformat�on for some of the poorest people �n Afr�ca, w�th support
from pr�vate sector compan�es �n S�l�con Valley;
• GlaxoSm�thKl�ne’s Drugs for the Develop�ng World forges publ�c-pr�vate
partnersh�ps w�th pharmaceut�cal compan�es, ph�lanthrop�sts and govern-
ments to br�ng poor market perform�ng drugs to develop�ng countr�es;
• GLPNet works w�th pr�vate sector content prov�ders to del�ver targeted
content to educat�on profess�onals around the world �n cooperat�on w�th
Sun M�crosystems that d�str�butes free educat�onal software to every new
reg�strant;
• Grameen Foundat�on along w�th MTN Uganda tra�ned over 1000 rural
V�llage Phone Operators throughout Uganda, each earn�ng enough
money to repay the�r m�crofinance loan and make a profit.
• Through OrphanIT, students �n the Ph�l�pp�nes, Ind�a and Outback Aus-
tral�a rece�ve free accelerated tra�n�ng and are then employed by the pr�vate
sector to prov�de web s�te promot�on/IT serv�ce for onl�ne bus�nesses;
• The ResponsAb�l�ty Global M�crofinance Fund �s a soc�al �nvestment fund
founded by Sw�ss banks and a soc�al venture cap�tal fund and �s a�med at
br�ng�ng m�crofinance to poor entrepreneurs worldw�de;
• M�cro-enterpr�se financ�ng �s ava�lable for Uganda entrepreneurs from
the “energy fund” set up by the Shell Foundat�on, the char�table arm of
Royal Dutch/Shell;
• TIME magaz�ne has embarked on a 4-part spec�al advert�s�ng ser�es that
puts the UN M�llenn�um Development Goals �n front of 21 m�ll�on read-
ers around the globe wh�ch w�ll occur �n monthly �ssues; and
• Un�lever’s Novella �n�t�at�ve a�ms to develop a susta�nable supply cha�n of
a non-wood forest product—the seed of the Allablack�a tree—and estab-
l�sh a new �ndustry of plant o�l product�on �n West Afr�ca.
• The Afr�can Bus�ness Roundtable and NEPAD are act�vely engag�ng the
pr�vate sector on the MDGs �n Afr�ca, and were respons�ble for establ�sh-
�ng Bend�ng the Arc (www.bend�ngthearc.com) to promote partnersh�ps
for the atta�nment of the MDGs �n Afr�ca. It �s conce�ved as the publ�c-
pr�vate ‘go to’ place for fac�l�tat�ng partnersh�ps �n pursu�t of the MDGs
�n Afr�ca.
4
A full l�st of these partnersh�ps �s ava�lable by v�s�t�ng a World Bank and
InWent web-resource www.bus�nessandmdgs.net and cl�ck�ng on the l�nk for
Case Stud�es. There are, of course, many more good examples from around
the world. Organ�zat�ons are welcome to add more �nnovat�ve partnersh�p
examples to th�s l�st by contact�ng dpetkosk�@worldbank.org.
Upon rev�ew of these partnersh�ps, threads of commonal�ty appear: all are
creat�ve, strateg�c, focus on a clearly �dent�fied need, and are bu�lt on a shared
v�s�on between the pr�vate sector partner and the non-profit or non-govern-
mental organ�zat�on.
how the privAte sector cAn BecoMe involveD
The pr�vate sector can become �nvolved �n development �ssues and �n support-
�ng the ach�evement of the MDGs �n a var�ety of ways. Follow�ng are some
typ�cal ways the pr�vate sector contr�butes to development:
• Buy—locally produced products
• Prov�de—cost-effect�ve serv�ces to the poor
• Donate—surplus, used, or earl�er generat�on products
• G�ve—financ�al support to local organ�zat�ons
• H�re—recru�t local talent
• Invest—�n educat�on, �nfrastructure, R&D, technolog�es
• Promote—create awareness through market�ng
• Volunteer—talent and t�me - core-competency and �n-k�nd g�v�ng �s a
huge leverage po�nt for develop�ng econom�es and strong commun�t�es.
reAsons Businesses Are increAsinGly involveD in the MDGs
Overall �ncent�ves for bus�nesses to become �nvolved �n ach�evement of the
MDGs �nclude:
• New Markets—per cap�ta �ncome �s r�s�ng, open�ng up markets at the
“bottom of the pyram�d”
• Vast Markets—as �ncomes r�se for 4 b�ll�on people currently �n poverty,
market opportun�t�es expand exponent�ally
• Investment—�mproved governance �ncreases opportun�t�es for �nvestment
• Labor—a health�er workforce �mproves product�v�ty and creates a more
rel�able workforce
• Advocate—firms can serve �n a leadersh�p pos�t�on to change government
pol�c�es
5
• Expans�on—firms can prov�de affordable products and serv�ces wh�le
expand�ng �nto new markets
• Image—consumers �ncreas�ngly want to buy from firms that care about
development �ssues
• Lobby—firms engaged �n Corporate Soc�al Respons�b�l�ty (CSR) often
take the lead �n regulatory and financ�al reform
• Respons�b�l�ty—firms around the globe are be�ng held more accountable
for the�r act�ons—both �n terms of the�r financ�al fiduc�ary respons�b�l-
�ty but also to support and not den�grate commun�t�es, countr�es, and
reg�ons.
• Lower costs—lower product�on and transportat�on costs can be ach�eved
by produc�ng �n-market
how countries Are enGAGeD with the privAte sector
Many countr�es are focus�ng on how the pr�vate sector can become �nvolved �n
ach�ev�ng MDGs at the country level. For example, the Ph�l�pp�ne Bus�ness for
Soc�al Progress (PBSP) produced a report ent�tled “Respond�ng to the M�llen-
n�um Development Challenge: A Roadmap for Ph�l�pp�ne Bus�ness,” funded
by the UN �n collaborat�on w�th the Ph�l�pp�ne Government.
The publ�cat�on �s based on several d�scuss�ons w�th key bus�ness leaders �n
the Ph�l�pp�nes who have created a strategy to engage bus�ness. Most are mem-
bers and partners of PBSP (www.pbsp.org.ph), and most have an ex�st�ng CSR
program �n the�r company.
As a result, bus�nesses adv�sed PBSP to cluster the e�ght goals �nto four: 1)
Bus�ness and Poverty, 2) Bus�ness and Educat�on, 3) Bus�ness and Health, 4)
Bus�ness and the Env�ronment.
They then concluded that to be able to help ach�eve the MDGs �n the
country, CSR programs should be addressed on three levels: core bus�ness, so-
c�al �nvestment, and pol�cy. A copy of the publ�cat�on �s ava�lable by contact-
how the MDG tAsk forces Are enGAGeD with the privAte sector
The UN M�llenn�um Project and �ts Task Forces act as an �ndependent adv�-
sory board comm�ss�oned by the UN Secretary-General to adv�se the UN on
strateg�es for ach�ev�ng the MDGs. Headed by Jeffrey Sachs, the Project pre-
sented �ts recommendat�ons and report, “Invest�ng �n Development: A Pract�-
�
cal Plan to Ach�eve the M�llenn�um Development Goals”, to the Secretary
General on January 17, 2005. The research of the M�llenn�um Project was per-
formed by more than 2�5 development experts through the ten Task Forces.
Each Task Force compr�sed �ndependent experts drawn from academ�a, the
publ�c and pr�vate sectors, c�v�l soc�ety organ�zat�ons, and UN agenc�es.
Many Task Forces have been act�vely promot�ng the�r recommendat�ons
s�nce then (e.g., the Hunger Task Force has been work�ng w�th �ts many con-
st�tuenc�es, �nclud�ng the pr�vate sector as descr�bed below) to help translate
the recommendat�ons �nto act�on. The Task Forces have completed the�r work
and w�ll formally complete the�r terms �n September 2005. All of the�r reports
and final recommendat�ons are ava�lable onl�ne at www.unm�llenn�umproject.
org, to see spec�fically what each recommends regard�ng the pr�vate sector.
MDG tAsk forces
MDG Task Force on Poverty and Economic Development• Mar� Pangestu and Jeffrey Sachs, MDG Task Force Cha�rs
MDG Task Force on Hunger• Pedro Sanchez and MS Swam�nathan, MDG Task Force Cha�rs
MDG Task Force on Education and Gender Equality• Nancy B�rdsall, Am�na Ibrah�m, and Geeta Rao Gupta, MDG Task Force
Cha�rs
MDG Task Force on Maternal and Children’s Health• Mushtaque Chowdhury, Allan Rosenfield, Agnes B�nagwaho, MDG Task
Force Cha�rs
MDG Task Force on HIV/AIDS, TB, Malaria, and Access to Essential Medicines• Jaap Broekmans, Josh Rux�n, Burton S�nger, Awash Tekleha�manot, MDG
Task Force Cha�rs
MDG Task Force on Environmental Sustainability• Yolanda Kakabadse Navarro, Jeff McNeely, Don Meln�ck, MDG Task Force
Cha�rs
MDG Task Force on Water and Sanitation• Roberto Lenton and Albert Wr�ght, MDG Task Force Cha�rs
MDG Task Force on Improving the Lives of Slum Dwellers• Ell�ott Sclar and P�etro Garau, MDG Task Force Cha�rs
MDG Task Force on Open Rule-Based Trade and Financial System• Patr�ck Messerl�n, MDG Task Force Cha�r
MDG Task Force on Science, Technology, Innovation• Calestous Juma and Yee Cheong Lee, MDG Task Force Cha�rs
7
The Private Sector’s Role in the MDG Task Force on Hunger
Pedro Sanchez, cha�r of the Hunger Task Force, outl�ned how the pr�vate sec-
tor �s tak�ng an act�ve role �n shap�ng the recommendat�ons and act�v�t�es of
the Hunger Task Force. Th�rty �nd�v�duals serve on the Task Force of wh�ch
four are from the pr�vate sector �nclud�ng R�chard Beers, formerly of T�me
Warner; Robert Horst, VP of Products and Technology, Monsanto Company;
Hans Eenhoorn, Sen�or V�ce Pres�dent of Foods, Un�lever; and Lars W�er-
sholm, ret�red Sen�or V�ce Pres�dent, Yara Internat�onal.
Mr. Sanchez emphas�zed that the Hunger Task Force has moved from
emphas�z�ng pol�t�cal comm�tments to act�on, and that publ�c awareness
campa�gns about how �nd�v�duals can contr�bute to reduc�ng hunger �n the
world—what Sanchez calls the “s�lent tsunam�” �n Afr�ca—were key to
ach�ev�ng M�llenn�um Development Goal # 1: Erad�cate Extreme Poverty and
Hunger.
The Task Force has establ�shed a number of partnersh�ps w�th the pr�-
vate sector and also w�th NGOs to address �ssues such as poor so�l qual�ty,
nutr�t�on defic�ency, and water defic�ency. For example, the “No Ch�ld Left
Hungry” program has been created �n partnersh�p w�th the World Food Pro-
gram �n partnersh�p w�th several firms �n the food sector. The Task Force also
establ�shed a partnersh�p w�th Monsanto to allow draught-res�stant corn to be
g�ven free to Afr�ca.
Sanchez says that the goal of many of these partnersh�ps w�th the pr�vate
sector �s to br�ng “free IPR” (�ntellectual property r�ghts) to the develop�ng
world by hav�ng patent r�ght wa�ved by large corporat�ons, work�ng w�th the
pr�vate sector to create spec�fic technolog�es, and br�dg�ng the gulf between
agr�cultural and nutr�t�on experts.
The Task Force �s also work�ng at the local level to work �n partnersh�p
w�th local farmers. In collaborat�on w�th Un�lever and the New Partnersh�p
for Afr�ca’s Development (NEPAD), the Task Force has establ�shed the Home
Grown School Feed�ng program to encourage farmers to donate 10% of the�r
crop product�on to local schools.
And �n August 2005, Motorola Networks agreed to �nstall equ�pment and
tra�n local staff on how to repa�r and use the equ�pment �n UN M�llenn�um
V�llages �n Kenya and Eth�op�a.
�
The Private Sector’s Role in the MDG Task Force on Education and Gender
Equality
The M�llenn�um Project Task Force on Educat�on and Gender Equal�ty recog-
n�zed the �mportance of �nvolvement of the pr�vate sector �n the development
of effect�ve, respons�ve pr�mary and secondary educat�on systems �n low- and
m�ddle-�ncome countr�es. Var�ous roles were d�scussed, �nclud�ng: (a) the pr�-
vate sector as the pr�mary employer of the products of the educat�on system,
and therefore cruc�al stakeholders �n quest�ons of educat�on system qual�ty;
(b) the pr�vate sector as financ�er of �mprovements �n educat�on, part�cularly
through spec�al programs organ�zed by large nat�onal employers and /or
through the corporate soc�al respons�b�l�ty programs of mult�nat�onal firms;
and (c) the pr�vate sector as prov�der of educat�on- and school�ng-related
serv�ces. The Task Force noted that the central respons�b�l�ty for the educat�on
system l�es w�th the government and households, but that the pr�vate sector
can be a valuable partner, part�cularly �n prov�d�ng the resources for demon-
strat�on projects that �ntroduce �nnovat�ons �n the prov�s�on of school�ng. Even
more �mportantly, the pr�vate sector can effect�vely advocate for �mprovements
�n the educat�on system, wh�ch �s central to a country’s long-term econom�c
development.
The Private Sector’s Role in the MDG Task Force on Water and Sanitation
Accord�ng to the Task Force on Water and San�tat�on, �t recogn�zes that
prov�d�ng susta�nable access to water and san�tat�on serv�ces where they are
needed most—the world’s poorest commun�t�es—requ�res financ�al �nvestment
from a w�de var�ety of partners, �nclud�ng the pr�vate sector. It also requ�res
capac�ty bu�ld�ng at d�fferent levels of human settlements, �nclud�ng rural com-
mun�t�es, small and large towns, and �n the mega c�t�es. Pr�vate sector part�c�-
pat�on both �n financ�al �nvestment and �n capac�ty bu�ld�ng �s �ndeed cr�t�cal
to meet�ng Target 10.
The Task Force also recogn�zes that there are certa�n cond�t�ons and
reforms needed to create the r�ght env�ronment where pr�vat�zat�on works and
also benefits and serves those whose s�tuat�ons are most d�re. Th�s enabl�ng
env�ronment �s defined �n the final report, Health, Dignity and Develop-
ment: What Will it Take?, outl�n�ng spec�fic recommendat�ons for all actors
�nvolved. Aga�nst the backdrop of an ongo�ng and often heated debate about
the appropr�ate roles for the pr�vate sector �n water and san�tat�on, the Task
9
Force bel�eves that an �ndependent, balanced, mult�stakeholder assessment of
the �mpacts of publ�c and pr�vate sector part�c�pat�on would be useful. Such a
rev�ew would glean lessons from past exper�ences and enhance dec�s�on-mak-
�ng on serv�ce del�very opt�ons.
The Task Force supports �n�t�at�ves �n the pr�vate sector a�med at ach�ev-
�ng the water and san�tat�on MDGs. One such �n�t�at�ve has been developed
by Thames Water, and �s based on the �dea of an �nternat�onal partnersh�p
between respons�ble pr�vate sector organ�zat�ons and �nternat�onal NGOs.
Add�t�onal donor a�d garnered by the partnersh�p would be used to carry out
�n-country projects work�ng w�th local �nst�tut�ons and organ�zat�ons to bu�ld
capac�ty and del�ver water and san�tat�on serv�ces �n rural and sem�-rural
areas. So far WaterA�d and CARE are on board. The Task Force has also �n�t�-
ated d�scuss�ons w�th plans for further collaborat�on w�th the World Econom�c
Forum, whose water �n�t�at�ve also sees the need for strengthen�ng mult�stake-
holder partnersh�ps, but w�th a focus on susta�nable water resources manage-
ment. Another prom�s�ng area �s the poss�ble appl�cat�on of pr�vate sector
exper�ence �n franch�s�ng to the development and support of local serv�ce
prov�ders �n small towns and rural areas for the susta�nable del�very of rel�able
serv�ces at local levels.
recoMMenDAtions froM the privAte sector
The M�llenn�um Development Goals offer a great opportun�ty to engage the
pr�vate sector �n spec�fic goals that must be ach�eved �n ten years. There are
l�terally thousands of firms throughout the world that could be mot�vated to
publ�cly comm�t to spec�fic act�ons that they w�ll contr�bute to the ach�evement
of the MDGs. We have reached a po�nt where �t �s t�me to partner w�th bus�-
nesses large and small. In response, �n the spr�ng and summer of 2005, several
one-on-one d�scuss�ons were held w�th h�gh-level execut�ves from the pr�vate
sector, and from July 11 through July 15, 2005, a bus�ness-only electron�c
d�scuss�on w�th leaders from a range of sectors and a var�ety of cont�nents was
hosted by the World Bank Inst�tute, supported by InWEnt and the Pr�nce of
Wales Internat�onal Bus�ness Leaders Forum.
These pr�vate and group d�scuss�ons were �ntended to allow a small group
of sen�or execut�ves from the bus�ness sector the opportun�ty to cand�dly share
the�r v�ews and exper�ences w�th each other on how they felt the pr�vate sector
could become more �nvolved �n the MDGs. The�r comments helped deter-
10
m�ne the recommendat�ons found below on how the pr�vate sector can more
act�vely contr�bute to ach�evement of the MDGs. Follow�ng �s a summary of
the�r recommendat�ons and op�n�ons from these d�scuss�ons:
Educate the private sector
Often the pr�vate sector �s g�ven a gener�c challenge or “encouraged” to
become a partner �n development and yet many med�um- and small-s�zed
bus�nesses are not brought �nto the d�scuss�on. To have them more engaged,
there �s need to better educate more from the pr�vate sector to understand the
challenges fac�ng our world. For example, the Karol�nska Inst�tute has created
an excellent overv�ew of the global challenges the world has faced for the past
several decades, the progress ach�eved, and the challenges that rema�n. Many
�n the pr�vate sector who are exposed to th�s overv�ew are moved to act�on
because many of them s�mply were not aware of the vast challenges to the
env�ronment, health, �nfant mortal�ty, and the laundry l�st of development �s-
sues wh�ch development profess�onals are deeply aware of. Mak�ng bus�nesses
aware of the global development challenges we face �s cr�t�cally �mportant.
Go beyond networking, lessons learned, and determining follow-up actions
Often meet�ngs w�th the pr�vate sector �nvolve network�ng to bu�ld relat�on-
sh�ps; �dent�fy�ng best pract�ces and lessons learned; and creat�ng an “act�on
agenda” or ways of mov�ng forward. Years have been spent �dent�fy�ng and
analyz�ng �nnovat�ve UN partnersh�p approaches for development, net-
work�ng, shar�ng lessons learned, and prov�d�ng �nput on the way forward.
Unfortunately, when part�c�pants return to the�r offices, there �s a good feel�ng
of goodw�ll, camarader�e, and even a shared v�s�on about what should be done
but there needs to be more t�me spent ensur�ng act�on �s then taken toward a
common goal.
Allow them to specifically respond
After these meet�ngs, there �s need to g�ve the pr�vate sector an opportun�ty to
spec�fically say how they w�ll contr�bute to x challenge or x MDG. Present�ng
a menu of ex�st�ng programs to wh�ch organ�zat�ons would l�ke the pr�vate
sector to donate or part�c�pate �s less effect�ve than ask�ng them how they plan
to become �nvolved or what they would l�ke to do to help allev�ate poverty.
11
It was also suggested that each year Chambers of Commerce throughout
the world should focus on a spec�fic MDG around wh�ch they rally bus�nesses
support �n the�r local commun�ty.
Focus on sectors, not “the private sector” writ large
Hewlett-Packard’s former Sen�or V�ce Pres�dent Debra Dunn’s wrote that, “I
defin�tely th�nk there are opportun�t�es to more effect�vely engage w�th the
pr�vate sector around the MDGs, but I would advocate targeted engagement.
By that, I mean connecting with specific industry groups and discussing how
they can be involved in a way that is specifically relevant to their business. For
example, the commun�cat�ons/med�a �ndustry could find ways to broadly d�s-
sem�nate �nformat�on about the MDGs and the progress �n ach�ev�ng them.”
Mr. Bulloch from Accenture Development Partnersh�ps stated, “I l�ked
the �dea that some part�c�pants ra�sed �n terms of focus�ng on a spec�fic sector.
What �s the analogous development challenge that [a sector’s] core compe-
tences can addresses and how can you al�gn a bus�ness benefit w�th a soc�al or
econom�c development benefit? What can the b�g banks br�ng to m�crofinance?
How can ut�l�ty compan�es coalesce to address the challenges surround�ng ac-
cess to clean dr�nk�ng water �n the South? How can telecommun�cat�ons firms
br�ng ICT or w�reless technology to bottom of the pyram�d markets? How can
food compan�es and other reta�lers apply fa�r trade pract�ces �n the�r extended
supply cha�ns?”
Appoint champions from the private sector to lead a particular goal
It was suggested that sector-spec�fic strateg�es be created and led by represen-
tat�ves from the pr�vate sector. The strateg�es would focus on how spec�fic
�ndustr�es or sectors w�ll contr�bute to MDG ach�evement �n the follow�ng key
areas:
• Commun�cat�on
• Energy
• Enterta�nment
• Env�ronment
• F�nanc�al
• Food
• Manufactur�ng
• Med�a
12
• Med�cal Technology
• Pharmaceut�cals
• Technology
Appoint ambassadors to lead a specific goal led by the private sector
Most ambassadors are well-connected to the bus�ness sector and therefore
hav�ng them appo�nted to a spec�fic �ndustry to ach�eve the Goals would allow
them to ut�l�ze the�r deep connect�ons to the bus�ness and d�plomat�c commu-
n�ty. It was suggested that Ambassadors of all nat�ons do more for develop-
ment �n the South.
Embark on an awareness ra�s�ng campa�gn—for example �n the Un�ted
States through the Small Bus�ness Development Centers that reach 25 m�ll�on
small bus�nesses.
There �s a need to bu�ld more bus�ness awareness of the MDGs, such as
by hav�ng respected leaders speak at �ndustry-spec�fic annual meet�ngs, con-
nect�ng w�th nat�onal �ndustry assoc�at�ons, creat�ng �ndustry-spec�fic onl�ne
d�scuss�on groups where development organ�zat�ons have an ongo�ng d�alogue
w�th the pr�vate sector by �ndustry. Engag�ng w�th nat�onal Small Bus�ness
Development Centers that ex�st throughout the world to create a nat�onal
“What are you do�ng for the MDGs?” could potent�ally reach 25 m�ll�on small
bus�nesses, and there are many more potent�al ways of �nvolv�ng more from
the pr�vate sector by �ndustry.
Put the MDG logo on websites of businesses to encourage awareness,
employee participation and donations
Hundreds of m�ll�ons of people v�s�t corporate webs�tes every day, thus put-
t�ng the MDG logo onto these webs�tes would create much greater awareness
of the MDGs. Google rece�ves well over 200 m�ll�on h�ts per day to the�r
web s�te. In 2004, CNN rece�ved 33 m�ll�on h�ts per day on a slow news day
and 2.� b�ll�on on a break�ng news day. Yahoo—the 3�th most recogn�zed
name �n the world—rece�ved 237 m�ll�on un�que v�s�tors to the�r portal s�te
each month, and Hotma�l drew 145 m�ll�on people each month �n 2004. The
ab�l�ty for the pr�vate sector to ra�se awareness on the M�llenn�um Develop-
ment Goals and commun�cate w�th m�ll�ons around the globe �n an �nstant �s
unprecedented �n the h�story of mank�nd.
13
Cons�der �f representat�ves of these global s�tes and several other nat�onal
webs�tes dec�de that they want to use the�r ab�l�ty to d�rectly commun�cate
w�th m�ll�ons of �nd�v�duals, consumers, and c�t�zens on a part�cular bus�ness,
soc�al or pol�t�cal �ssue. These s�tes have the ab�l�ty to change the thoughts and
act�ons of m�ll�ons of people around the globe.
Push companies to do more
A reta�l sector commentator was cand�d that bus�ness �s “not do�ng enough”
for development and noted that the major hurdles l�m�t�ng corporate �nvolve-
ment �n development work are cost, l�m�ted resources, percept�on of l�m�ted
benefit, and low pr�or�ty �n relat�on to commerc�al projects.
An �nterest�ng quote:
“Many employees w�th�n our organ�zat�on would l�ke to do a great
deal more to prov�de a definable measurable contr�but�on towards the
MDGs. However, we are a bus�ness pr�mar�ly. We must keep one eye on
the hor�zon and ma�nta�n a balance w�th commerc�al�ty/profitab�l�ty.”
The commentator was pleased w�th the Un�ted Nat�ons Global Compact,
stat�ng that UNGC has acted as a catalyst for act�ons contr�but�ng to develop-
ment w�th�n compan�es:
“Commun�cat�ons from the UNGC come to me and to our CEO, and
often from the office of the UN Secretary General. I’m not sure about
your compan�es, but here that means act�on (!) and letters filter down to
my level covered �n red pen �nstruct�ons or quest�ons from my CEO. “
Importantly, he noted that the major hurdles l�m�t�ng corporate �nvolve-
ment �n development work are the cost, l�m�ted resources, percept�on of
l�m�ted benefit, and low pr�or�ty �n relat�on to commerc�al projects.
Establ�sh a publ�c-pr�vate “go to” place that prov�des adv�ce to representa-
t�ves of the pr�vate sector and UN organ�zat�ons on how to make the partner-
sh�p work over the long-term
Several from the pr�vate sector made recommendat�ons on how to create
better partnersh�ps between organ�zat�ons and the pr�vate sector. Throughout
our d�scuss�ons w�th the pr�vate sector, �t was sa�d often that �t would be help-
14
ful for those seek�ng to bu�ld partnersh�ps to rely on representat�ves from the
pr�vate and publ�c sectors to �dent�fy the r�ght players; help negot�ate the terms
of the agreement; prov�de sample Memoranda of Understand�ng (MOUs),
project plann�ng and management tools; hold regular status meet�ngs between
partners; serve as a neutral arb�ter for problem resolut�on when the partner-
sh�p founders; and help to refine the partnersh�p as �t develops over the course
of the �n�t�at�ve as needed. It has been suggested that a foundat�on or un�ver-
s�ty undertake th�s role, allow�ng the foundat�on to serve as a neutral arb�ter
between the non-profit and pr�vate sectors seek�ng to collaborate.
Spend more time thinking strategically about exactly how a specific firm can
become involved
Bus�nesses often lamented that nonprofit and other organ�zat�ons seek only
financ�al donat�ons from them but they would respond more pos�t�vely when
they are asked how to solve a spec�fic problem. Thus, �t �s �mportant to be
more creat�ve about the contr�but�ons the pr�vate sector can make rather than
only seek�ng financ�al contr�but�ons.
G�b Bulloch, D�rector of Accenture Development Partnersh�ps, op�ned
that, “I strongly bel�eve compan�es must go beyond be�ng just the cheque book
and seek to be broader partners br�ng�ng the�r other core assets such as brand,
scale and certa�nly people (who I bel�eve are a s�gn�ficant untapped resource
for development �mpact w�th�n every organ�zat�on). They need to determ�ne
wh�ch core competenc�es they can br�ng to the table and �n what ways.”
Understand the private sector partner and their foundations
It was suggested that more t�me should be spent �dent�fy�ng the firm’s devel-
opment pr�or�t�es, mot�vat�ons for jo�n�ng the partnersh�p, and financ�al and
staffing constra�nts. What �s the culture of the targeted firm? What are the
ways that they have partnered w�th the nonprofit sector �n the past? Why
do they seek to only engage �n the�r commun�ty or only �n the Un�ted States?
There are often cons�derable concerns for the pr�vate sector to focus on �ssues
outs�de of the�r commun�ty or country.
Improve negotiation skills
If the pr�vate sector �s lukewarm to partner�ng, organ�zat�ons need to be sk�ll-
ful �n determ�n�ng what �s expected of compan�es and be ready and able to
15
answer the�r quest�ons and address the�r concerns. More t�me should be spent
work�ng w�th prospect�ve pr�vate sector partners to create a shared v�s�on and
mutual agreement about the results all s�des seek and the contr�but�ons that
w�ll be made.
Communicate more during the consensus-building process and identify ways
to ensure a successful partnership
Several from the pr�vate sector felt that organ�zat�ons often g�ve up too soon
on creat�ng a partnersh�p. By creat�ng an open, ongo�ng, and long-term d�a-
logue dur�ng the consensus and agreement bu�ld�ng process, the agenda can
be adjusted to bu�ld a shared v�s�on and �ncrease comm�tment to the �n�t�at�ve.
Many partnersh�ps falter because both s�des are unable to resolve a rather
m�nor st�ck�ng po�nt, wh�ch then leads the whole process to founder.
John Banda, General Manager from JJ Enterpr�se �n Malaw� offered h�s
keys to success of any partnersh�p:
• Transparency and accountab�l�ty to both part�es
• Ach�ev�ng the �ntended goal of the partnersh�p
• Accept each others �deas �f they are construct�ve
• Be flex�ble to change �f there are unforeseen c�rcumstances
• Commun�cate �mmed�ately all urgent matters
Dr. Andreas Bluethner works for the d�v�s�on of European Governmental
Affa�rs for BASF, a global chem�cal company, respons�ble for Internat�onal
relat�ons and UN-bus�ness partnersh�ps. He suggested that partnersh�ps work
best when there �s:
• Transparency
• Trust
• Management of expectat�ons
• Partnersh�p bu�ld�ng and management sk�lls
• Ava�lable resources
• A “bus�ness case” �nstead of pure ph�lanthropy
• Sound �nternal and external commun�cat�on
• Flex�b�l�ty and all�ance competence, but necessary level of formal�zat�on
• Ab�l�ty to “translate” between d�fferent organ�zat�onal cultures
• Agreement on a common goal
• Complementary resources, competenc�es and capac�t�es
1�
Edward E. M�ller �s Pres�dent and General Manager of GTB �n Santa Cruz,
Bol�v�a. Mr. M�ller wrote that for these partnersh�ps to work, a top-down
comm�tment from the h�ghest levels of management has to be establ�shed w�th
weekly report�ng �ns�de the organ�zat�on requ�red from the manager respons�ble
for the project as well transparency and clar�ty on what can and cannot be done.
Dr. Ethel M. Corm�er of the Procter & Gamble Nutr�t�on Sc�ence Inst�tute
l�sted her keys to successful partnersh�p:
• Tak�ng t�me to define the object�ves, goals, and measures
• Tak�ng t�me to define the structure (e.g., dec�s�on mak�ng, commun�ca-
t�on, etc.), roles and respons�b�l�t�es
• Tak�ng t�me to develop more than surface relat�onsh�ps w�th partners so
that trust and openness �s poss�ble
• Understand�ng the culture of the partner�ng organ�zat�ons and support�ng
the partner based on th�s understand�ng
• Over commun�cat�ng
Ways to ensure private sector partnerships are effective
What makes some partnersh�ps more effect�ve than others? What are the keys
to success of partnersh�ps? The follow�ng are a few key elements that were
suggested for cons�derat�on when develop�ng any partnersh�p �nvolv�ng the
pr�vate sector and non-profit or non-governmental organ�zat�ons:
• Th�nk strateg�cally—Spend t�me understand�ng the roles of the organ�za-
t�ons. Be creat�ve about the key contr�but�ons the pr�vate sector can make
as well as the contr�but�ons development organ�zat�ons can make.
• Sell �t—How can the proposed partnersh�p be made attract�ve for bus�-
ness and development to want to engage and contr�bute? A sol�d draft of
a memorandum of understand�ng �s �mportant to beg�n any d�scuss�on
�nclud�ng clear commun�cat�on about what the stakeholder seeks from
the pr�vate sector. Be clear about what �s to be ach�eved and the benefits
the partnersh�p w�ll br�ng.
• Be flex�ble—If e�ther party �s lukewarm to the �n�t�at�ve that �s be�ng
proposed, be d�rect �n ask�ng what they need �n order to jo�n the �n�t�a-
t�ve. Work w�th your prospect�ve partners to create a shared v�s�on and
agreement about the results all s�des seek.
• Be clear about roles and t�mel�nes—The obv�ous �mportance of �den-
t�fy�ng who w�ll do what and when �t w�ll be accompl�shed cannot be
overstated.
17
• Seek the�r �deas—If the pr�vate sector approaches a development orga-
n�zat�on about the�r “pet project” or �f the development organ�zat�on
approaches the pr�vate sector about a spec�fic �n�t�at�ve, often the organ�-
zat�on be�ng approached feels s�del�ned. It could contr�bute more to the
�n�t�at�ve, but �s reluctant as �ts op�n�ons and creat�ve approaches were
not sought. Inv�t�ng the pr�vate sector to donate fund�ng to an ex�st�ng
�n�t�at�ve �s trad�t�onal “ph�lanthropy”, not a partnersh�p. Ask�ng a global
organ�zat�on to support a pr�vate sector development �n�t�at�ve �s often
perce�ved as s�mply us�ng the good name of the organ�zat�on to help the
pr�vate sector ach�eve �ts goals, and th�s �s also not a partnersh�p. Thus, �t
�s �mperat�ve to �nvolve all partners �n shap�ng the �n�t�at�ve.
• Understand—Seek to understand partners’ concerns, mot�vat�ons for jo�n-
�ng the partnersh�p, the constra�nts they face, culture of the pr�vate sector,
and trad�t�onal ways that they have partnered w�th the nonprofit sector �n
the past.
• Allow for new partners to jo�n—Inv�t�ng pr�vate sector firms and or-
gan�zat�ons to jo�n an �n�t�at�ve �s often benefic�al to the growth, d�s-
sem�nat�on, and effect�veness of the �n�t�at�ve. Creat�ng a “closed club”
atmosphere �s counterproduct�ve to any �n�t�at�ve that �s just beg�nn�ng to
develop.
• Commun�cate dur�ng the consensus bu�ld�ng process—Often organ�za-
t�ons w�ll g�ve up too soon. By creat�ng an open and ongo�ng d�alogue
dur�ng the consensus and agreement bu�ld�ng process, you can adjust the
agenda, bu�ld a shared v�s�on, and �ncrease comm�tment to the �n�t�at�ve
Focus more on identifying model programs and scaling them up
Several pr�vate sector representat�ves were well aware of the excellent work
and success of spec�fic Un�ted Nat�ons, non-profit and non-governmental
organ�zat�ons. It was often suggested that there should be a stronger focus
on nurtur�ng those organ�zat�ons that have met w�th success as an appeal�ng
way for the pr�vate sector to contr�bute to expand�ng the success of �n�t�at�ves
that could be of benefit �n other reg�ons or countr�es. For example, the Global
Soc�al Benefit Incubator at Santa Clara State Un�vers�ty does an outstand�ng
job �dent�fy�ng successful develop�ng country-focused �n�t�at�ves that could be
brought to other reg�ons or countr�es.
1�
Reach out to medium and small firms
Many noted a pervas�ve lack of awareness among small and med�um-s�zed
firms about the M�llenn�um Development Goals themselves and how spec�fi-
cally they can contr�bute to ach�ev�ng them. Even those compan�es that do
have awareness of the MDGs, the major�ty st�ll don’t know how to engage
to help ach�eve them. For example, there are over 130 technology firms �n
S�l�con Valley. Hewlett-Packard , Intel, C�sco Systems, Sun M�crosystems,
and Solectron are the top five publ�cly-traded firms �n the Valley, but to what
extent are we engag�ng Oracle, Calp�ne, Ag�lent, Appl�ed Mater�als, Apple
Computer, CNF, AMD, Maxtor, Sanm�na, and JDS wh�ch round out the top
fifteen firms? Unfortunately, we tend only to reach out to the top firms �n a
l�m�ted number of �ndustr�es. There are many firms �n many �ndustr�es that are
not aware of—or engaged �n—development �ssues. When they are mot�vated
and energ�zed about how to respond to a development problem, often they
want to engage. Our d�scuss�ons found that many of these firms and others
would read�ly engage w�th UN organ�zat�ons around the MDGs �f they were
only asked.
Train the innovators and entrepreneurs within the private sector and NGO
community who want to build partnerships
Unfortunately, many who want to “partner w�th the pr�vate sector” lack the
fundamental sk�lls to negot�ate the partnersh�p, plan �t, fund �t, and �mplement
�t. Many who attempt to collaborate w�th the pr�vate sector have not been
tra�ned �n the follow�ng areas:
• Compet�t�ve analys�s
• Negot�at�on—creat�ng a shared v�s�on
• Project plann�ng and mapp�ng
• F�nance
• Budget�ng
• Market�ng and Commun�cat�on
• D�spute resolut�on
• Report�ng
• Evaluat�on
It was suggested that an onl�ne tra�n�ng program that focuses on these core
areas �s needed to turn bureaucrats �nto entrepreneurs, and to encourage more
from the non-profit/NGO sector to collaborate w�th the pr�vate sector.
19
Build a joint strategy
Several organ�zat�ons are attempt�ng to collaborate more w�th the pr�vate sec-
tor on the M�llenn�um Development Goals �nclud�ng:
• Cl�nton Global In�t�at�ve
• Corporate Counc�l on Afr�ca, Afr�can Bus�ness Roundtable, and NEPAD
• Global Soc�al Benefit Incubator
• Pr�nce of Wales Internat�onal Bus�ness Leaders Forum
• Seattle In�t�at�ve for Global Development
• Un�ted Nat�ons organ�zat�ons �nclud�ng the Global Compact, M�llenn�um
Campa�gn, Un�ted Nat�ons Ch�ldren’s Fund, Un�ted Nat�ons Fund for
Internat�onal Partnersh�ps, Un�ted Nat�ons Development Program, Un�ted
Nat�ons Industr�al Development Organ�zat�on, and World Bank
It was suggested that these groups and others form a jo�nt strategy, hold
jo�nt conferences on the subject, produce jo�nt papers—even h�ghl�ght�ng d�f-
fer�ng op�n�ons, and work together to form a shared v�s�on on how to more
act�vely engage w�th the pr�vate sector �n ach�evement of the MDGs.
Emulate the successful programs developed by large corporations
Dr. Ethel M. Corm�er of the Procter & Gamble Nutr�t�on Sc�ence Inst�tute
emphas�zed that “what �s �mportant �s the development of susta�nable markets
and growth.” The�r ph�lanthrop�c emphas�s centers on the health and educa-
t�on of ch�ldren �n need from 0–13 years (e.g., water pur�ficat�on, school bu�ld-
�ng, oral hyg�ene programs, prevent�ve health care through regular med�cal
checkups, and nutr�t�onal counsel�ng). Dr. Corm�er prov�ded useful examples
of Un�ted Nat�ons and non-governmental organ�zat�ons w�th whom they are
partner�ng that could serve as a useful example for others who may be seek�ng
potent�al partners to the�r �n�t�at�ves.
Edward E. M�ller, Pres�dent & General Manager, Gas TransBol�v�ano SA
�n Bol�v�a h�ghl�ghted the company’s “Bu�ld�ng Trust” and “Collaborat�on not
just Compensat�on” programs as well as the Kaa Iya Foundat�on that oversees
the management of the Kaa Iya Nat�onal Park, the largest �n Bol�v�a. GTB
formed the all�ance w�th the state and non-profit/non-governmental organ�za-
t�ons. “Th�s �s a un�que relat�onsh�p that has a long term susta�nable �mpact
and a type model for world w�de appl�cat�ons.”
Chetan Sharma �s Founder of the Datamat�on Group wh�ch has created
more than 3500 jobs for rural commun�t�es and d�sadvantaged youth �n the
20
knowledge and IT sector �n Ind�a. The Datamat�on Foundat�on works w�th
marg�nal�zed women �n �mpover�shed ne�ghborhoods by equ�pp�ng them w�th
modern tools and gadgets for tra�n�ng on ICT sk�lls, ICT enabled m�cro-enter-
pr�ses, and health and sk�lls development �n more than 15 d�fferent trades. Mr.
Sharma prov�ded several excellent examples of how h�s firm and h�s founda-
t�on are touch�ng the l�ves of thousands �n Ind�a.
Mr. Abdul Wahab Lakhan� �s Cha�rman of Adamjee Enterpr�ses, a text�le
manufactur�ng company employ�ng �00 people �n Karach�, Pak�stan. Adamjee
Enterpr�ses �s earmark�ng a certa�n percentage of �ts profit for char�ty, and they
have allocated add�t�onal funds to promote educat�on of the�r workers’ ch�l-
dren up to whatever level, �nclud�ng un�vers�ty educat�on. The firm also has a
fund to meet the marr�age expenses of employees’ daughters.
G�b Bulloch �s D�rector of Accenture Development Partnersh�ps (ADP), an
organ�zat�on based �n London that allows Accenture’s serv�ces to be prov�ded
to organ�zat�ons that would not normally have access to �nternat�onal consult-
�ng serv�ces and to channel these to the parts of the world where there �s a
clear need. He wr�tes, “In ADP, we have effect�vely tr�ed to turn Accenture’s
bus�ness model on �ts head; gett�ng our best performers to work at half salary,
Accenture to accept cost neutral returns (�.e. non-profit mak�ng) and for the
NGO cl�ents to pay fees at a fract�on of market rates.”
“I th�nk there may well be many opportun�t�es for the pr�vate sector to
jo�n forces to address a part�cular gener�c challenge or non-compet�t�ve chal-
lenge to the�r bus�ness enabl�ng env�ronment. One such example �s the Pr�vate
Investors �n Afr�ca In�t�at�ve (PIA) wh�ch �s try�ng to address HIV/AIDS, wh�ch
affects all of these compan�es �n equal measure; the�r workers, the�r fam�l�es,
and �n turn the commun�t�es �n wh�ch they l�ve. In such cases, un�lateral act�on
may not be econom�cally effect�ve or certa�nly del�ver less �mpact than a fed-
eral approach of th�s nature. The same th�nk�ng could be appl�ed to the chal-
lenges around educat�on �n country or reg�on, or develop�ng vocat�onal sk�lls
�n a workforce. There may be many examples. The quest�on then �s, “Who
should be the r�ng leader?” Bus�nesses themselves, or �s �t a role best played by
donors or �ndeed, a new type of NGO?”
21
Listen—really listen—to the experiences of the private sector trying to work
with development organizations
Several spoke cand�dly about the�r frustrat�ons �n work�ng w�th development
organ�zat�ons and often encouraged a cand�d evaluat�on and assessment of
partnersh�ps and all�ances that perhaps d�d not ach�eve a shared v�s�on or
defin�t�ve results.
For example, Dr. Ethel M. Corm�er of the Procter & Gamble Nutr�t�on
Sc�ence Inst�tute �nd�cated that the�r exper�ence �n work�ng w�th government,
nonprofit, NGOs and mult�lateral �nst�tut�ons has been m�xed. She stated that
d�vers�ty of strength �s �mportant �n the partnersh�p as well as not chang�ng
the players �nvolved. Importantly, she wr�tes “I have seen th�s work best when
all players felt on the l�ne and respons�ble for the end goal or outcome. Th�s �s
e�ther a self or top-down generated pressure.”
Also, she states that behav�oral preconcept�ons that each group has about
the other must be removed: “Governments assume that pr�vate sector compa-
n�es are not appropr�ately concerned about consumers and the env�ronment.
The publ�c sector bel�eves that the pr�vate sector �s focused only on profit, but
has a useful deep pocket to fund the�r projects. The pr�vate sector th�nks that
governments and mult�lateral �nst�tut�ons have such complex and �neffic�ent
bureaucrac�es that gett�ng anyth�ng accompl�shed and espec�ally �n a t�mely
way �s near to �mposs�ble. Or, they bel�eve that changes �n government adm�n-
�strat�ons w�ll lead to changes �n leadersh�p, focus and prev�ous dec�s�ons. Of
course, these are general�t�es that have been based on real events.”
“A second barr�er �s our preconce�ved and somet�mes unreal�st�c expec-
tat�ons of each other. For example, NGOs, governments and mult�laterals
often want partner�ng pr�vate sector compan�es to focus only on the lowest
econom�c groups. Th�s normally translates to an unreal�st�c bus�ness propos�-
t�on result�ng �n a consumer pr�ce for a product that not only does not cover
the cost, but loses money for the company. Compan�es on the other hand
w�th soc�al �n�t�at�ves want local governments to help them w�th reach�ng the
publ�c—manufactur�ng, market�ng, awareness, d�str�but�on, etc—�n unfam�l�ar
markets. Aga�n, th�s �s not always the sk�ll set of those ent�t�es.”
The follow�ng contr�but�on was made by a representat�ve of the pr�vate
sector who part�c�pated �n the July 2005 electron�c d�scuss�on on bus�nesses’
role �n ach�evement of the MDGs:
22
“Our exper�ence work�ng w�th var�ous development-work partners,
part�cularly mult�lateral �nst�tut�ons �n the UN system, has been cons�s-
tently d�sappo�nt�ng. I have met some people who seem wonderful and
exper�enced and enthus�ast�c at the start of a partnersh�p, but when ac-
tual hard, deta�led work has to be done, they or the�r colleagues seem to
d�sappear. Th�s causes all sorts of problems �nclud�ng the del�verable we
had hoped to ach�eve �s less good than �t m�ght have been because we
end up do�ng all the work w�thout our partner(s), and the reputat�on of
the UN and development work �n general s�nks even lower �n the m�nds
of the people we are try�ng to encourage to become �nvolved.
The number one reason some partnersh�ps are more effect�ve than oth-
ers �s that “the key players/leaders have dec�ded to devote whatever-�t-takes
resources of t�me and effort to get the project off the ground and to mon�tor �t
as �t proceeds. It �s that att�tude that filters down through everyth�ng else that
happens.”
Many emphas�zed that accountab�l�ty of the key players/leaders �s also par-
amount. “If a project fa�ls to ach�eve �ts goals, a thorough �nvest�gat�on needs
to occur and someone needs to be judged. Too often �n the UN system, e�ther
a bad project �s forgotten by everyone (by mutual agreement) or the project
managers are s�mply found new jobs elsewhere �n the UN system where they
can be �neffect�ve on someone else’s turf.”
Suggestions on what the private sector can do in concrete, practical terms
One day of the bus�ness-only electron�c d�scuss�on was focused on what our
representat�ves of the pr�vate sector felt needed to be done by the pr�vate
sector to reduce poverty �n the world and how the pr�vate sector could work
together to ach�eve a part�cular �n�t�at�ve. We also asked what k�nd of help
they needed to ach�eve the�r bus�ness’ “development pr�or�t�es.” We asked:
What opportun�t�es ex�st for new all�ances to make progress on spec�fic goals,
and how can spec�fic sectors or �ndustr�es collaborate to a common goal? Fol-
low�ng are some �nterest�ng suggest�ons:
John Banda, Manag�ng D�rector for JJ Enterpr�se �n Malaw�, op�ned that
the pr�vate sector’s role �n help�ng to reduce poverty �s to play an act�ve role �n
reduc�ng �ll�teracy. The pr�vate sector can:
23
• Establ�sh l�teracy classes e�ther �n churches or v�llages so that when
people have bas�c educat�on, the�r level of understand�ng can change.
• Be �nvolved �n HIV/AIDS educat�on. “Most of the poverty �s because of
orphans who are kept by relat�ves after los�ng the�r parents.”
• Employ women who are usually the v�ct�ms of poverty.
• Work together to ach�eve a part�cular �n�t�at�ve by jo�n�ng the�r Chamber
of Commence as Chambers can coord�nate global �n�t�at�ves.
• Part�c�pate �n conferences to learn from bus�nesses that are do�ng some-
th�ng related to the MDGs.
Mr. Banda also noted that “the pr�vate sector needs educat�on and tra�n�ng
(a.k.a. capac�ty bu�ld�ng) for them to be able to ach�eve development goals.”
Abdel Az�z El-Agu�zy, Cha�rman and CEO of Qu�nsys �n Egypt, felt that
bus�nesses can contr�bute to poverty reduct�on by be�ng as profitable as they
can be, thus creat�ng more employment opportun�t�es. “Of course there are �s-
sues of educat�on, tra�n�ng and well developed compensat�on programs, but a
country’s general bus�ness env�ronment has a major �mpact on opportun�t�es.”
“In Egypt, �t �s est�mated that the �nformal sector const�tutes a huge por-
t�on of econom�c act�v�t�es that are vastly underut�l�zed, but there are reasons
for that—m�cro and small bus�ness cannot deal w�th a heavy-handed bureau-
cracy, and there �s no benefit to deal w�th the banks s�nce they are reluctant to
lend to the m�cro and small. Prov�d�ng educat�on �n entrepreneursh�p �s also
�mportant versus the trad�t�onal model of educat�on for the sake of gett�ng
degrees.”
Raul Mart�nez, D�rector of Inst�tut�onal Development for CEMEX �n
Mex�co, addressed the �ssue of the potent�al �mpact of bus�nesses around the
world to reduce poverty by not�ng that general�zed and extreme poverty was
the normal cond�t�on of human ex�stence for thousands of years. Some 200
years ago, pr�vate enterpr�ses—fueled by the Industr�al Revolut�on—began to
change th�ngs:
“The most �mportant soc�al respons�b�l�ty task for the pr�vate sector �s
to manage our compan�es effic�ently �n order to grow, to create more
jobs, to pay taxes rel�g�ously, and to create value for all stakeholders.
To reduce poverty, compan�es must be encouraged to do what they do
best: �nvest, produce, and grow everywhere.…[and] �f compan�es are to
prosper, the most �mportant cond�t�on �s to have a government and a
24
soc�al system that appl�es fiscal, legal, educat�onal, secur�ty, and cred�t
frameworks that strongly support bus�ness act�v�t�es. If th�s had been
done worldw�de, I assume that over a b�ll�on people would not be l�v�ng
�n extreme poverty.”
In answer to what the pr�vate sector can do to reduce poverty (the over-
arch�ng goal of the MDGs) �n the world, a reta�l sector commentator wrote
that the most obv�ous steps to poverty reduct�on would be:
• Prov�de a l�v�ng wage to all workers who produce goods for sale
• Make consumers aware of the�r respons�b�l�t�es to the planet
• Br�ng an end to throw-away consumer�sm where most consumers want
the cheapest goods poss�ble
• Reverse the trend from the �mportance of cheap to the �mportance of
value
The commentator suggested that a mentor�ng system be developed where
“lead�ng compan�es mentor or buddy up w�th those �n the slow lane or off the
radar completely to help them take small steps. I feel �t �s government’s role/ob-
l�gat�on to �dent�fy ‘champ�ons’ who are w�ll�ng to mentor others at no cost (a
dat�ng agency for development) to match compan�es together. Governments need
to be more act�ve and �nvolved than the trad�t�onal ‘encouragement’ model.”
“And we need to hear from consumers. Ord�nary consumers are s�lent
but compan�es cla�m to respond to the�r needs on th�s �ssue. The best help we
could have would be ra�s�ng awareness by governments on development �ssues
and how they �mpact on ord�nary consumers.”
And, finally, Edward E. M�ller, GTB Pres�dent and General Manager �n
Santa Cruz, Bol�v�a wrote that the world’s best m�nds have been struggl�ng
w�th the pr�vate sector’s role to reduce poverty for decades. He subm�tted that
the pr�vate sector must help commun�t�es wr�te the�r own bus�ness plans for
�mprovement projects and prov�de corporate governance through the comple-
t�on of the project. “Reduc�ng poverty �n the world does not requ�re large
amounts of cash when the pr�vate sector becomes an act�ve partner that �s
fully comm�tted to help�ng people help themselves.”
25
conclusion
Many bus�ness leaders �ncreas�ngly understand that contr�but�ng to develop-
ment translates �nto the creat�on of new markets. Per cap�ta �ncome �s r�s�ng �n
the develop�ng world, open�ng up vast markets at the “bottom of the pyra-
m�d”—for as �ncomes r�se for four b�ll�on people currently l�v�ng �n poverty,
market opportun�t�es expand exponent�ally.
At the same t�me, bus�ness can contr�bute to accelerat�ng the r�se �n �ncome
and opportun�ty by �nvest�ng �n �nfrastructure, R&D and technolog�es for the
develop�ng world; h�r�ng and develop�ng local talent; buy�ng from develop�ng
countr�es; volunteer�ng talent and t�me toward a part�cular �ssue; donat�ng
surplus or used equ�pment; and mak�ng financ�al donat�ons through corporate
foundat�ons—because �t just makes good bus�ness sense.
To be sure, bus�nesses are �ncreas�ngly �nvolved �n ach�evement of the
goals. But there �s so much more that the pr�vate sector can do to contr�bute to
poverty reduct�on and ach�eve the MDGs. Th�s paper h�ghl�ghts pract�cal ways
�n wh�ch the pr�vate sector can become more act�vely engaged �n contr�but�ng
to the ach�evement of the MDGs based on one-on-one, group, and electron�c
d�scuss�ons �n wh�ch thought-provok�ng quest�ons were asked �n order to fos-
ter a frank exchange of v�ews among peers �n the bus�ness sector. We feel that
these d�scuss�ons have led to a deeper understand�ng of how the pr�vate sector
feels about the development challenge, and have exposed �nnovat�ve new ap-
proaches suggested by the bus�ness commun�ty.
W�thout a doubt the pr�vate sector’s �nvolvement �s a v�tal factor �n ach�ev-
�ng the M�llenn�um Development Goals. The purpose of th�s paper �s to h�gh-
l�ght the op�n�ons and exper�ences of bus�ness leaders who are deeply engaged
�n global development and poverty reduct�on �ssues. We value the�r exper�ence
�n bu�ld�ng partnersh�ps to reduce poverty and are grateful for the�r v�s�on and
�ns�ghts on the role of bus�ness �n global development, and �n help�ng us to
�dent�fy opportun�t�es and challenges for the task ahead.
2�
Researched and wr�tten by Sarah McCue, Sen�or Partnersh�p Spec�al�st, World Bank
Inst�tute and M�chael Jarv�s, Program Coord�nator for Bus�ness, Compet�t�veness, and
Development, World Bank Inst�tute w�th grateful �nput, react�ons, and recommenda-
t�ons from our fr�ends and colleagues who are representat�ves of the pr�vate sector and
organ�zat�ons assoc�ated w�th the M�llenn�um Development Goals. They �nclude:
Abdel Az�z El-Agu�zy, Cha�rman and CEO of Qu�nsys, Egypt
Chr�s Ba�ley, Bus�ness Counc�l for the Un�ted Nat�ons
John Banda, General Manager, JJ Enterpr�se, Malaw�
Nancy B�rdsall, Cha�r, MDG Comm�ttee on Ch�ldhood Educat�on
Andreas Bluethner, D�v�s�on of European Governmental Affa�rs, BASF
Flynn Bucy, Execut�ve D�rector, Earth Counc�l All�ance
G�b Bulloch, D�rector, Accenture Development Partnersh�ps
Mushtaque Chowdhury, Cha�r, MDG Comm�ttee on Ch�ldhood Mortal�ty
J�m Clark, Cha�rman, World Technology Network
Ethel M. Corm�er, Procter & Gamble Nutr�t�on Sc�ence Inst�tute
Natal�e Dome�sen, Un�ted Nat�ons Internat�onal Trade Centre
Debra Dunn, Ret�red Sen�or V�ce Pres�dent, Hewlett Packard
Ronn� Goldfarb, Pres�dent, Equal Access
Al Hammond, V�ce Pres�dent, World Resources Inst�tute
Jan Hartke, Execut�ve D�rector, Earth Vo�ce
T�m Honey, Execut�ve D�rector, S�ster C�t�es Internat�onal
Am�na Ibrah�m, Cha�r, MDG Comm�ttee on Ch�ldhood Educat�on
Calestous Juma, Cha�r, MDG Comm�ttee on Technology Access
James Koch, Execut�ve D�rector, Center for Sc�ence, Technology and Soc�ety
Roberto Lenton, Cha�r, MDG Comm�ttee on Safe Dr�nk�ng Water
Raul Mart�nez, D�rector of Inst�tut�onal Development for CEMEX, Mex�co
Edward E. M�ller, Pres�dent and General Manager, GTB Bol�v�a
Ambassador Kenneth Moorefield, Corporate Counc�l on Afr�ca
Trevor N�elson, Execut�ve D�rector, Global Bus�ness Coal�t�on on HIV/AIDS
Pedro Sanchez, Cha�r, MDG Comm�ttee on Hunger
Chetan Sharma, Founder, Datamat�on Group, Ind�a
Sal�l Shetty, Execut�ve D�rector, Keep the Prom�se, M�llenn�um Campa�gn
La�ne S�klos, Sales Development D�rector, TIME Internat�onal
Angel S�lva, Un�ted Nat�ons Fund for Internat�onal Partnersh�ps
M�chael Spenley, Head of Eth�cal Sourc�ng, L�ttlewood’s Shop D�rect Group
Casper Sonesson, Partnersh�p Coord�nator, UNDP
Tom Stephens, Consultant, Earth Counc�l All�ance
Peter Tavern�se, C�sco Inc. and C�sco Foundat�on
Am�na T�rana, Sen�or Pol�cy Spec�al�st, MDG Un�t, UNDP
Paul Underwood, Former Execut�ve D�rector, Bus�ness Counc�l for the Un�ted Nat�ons
Kath� Von Daen�ken, Sw�ss Agency for Development Cooperat�on
Cher� Vo�s�ne, All�ance Manager for External Partnersh�ps, Hewlett-Packard Company
Abdul Wahab Lakhan�, Cha�rman, Adamjee Enterpr�ses, Pak�stan
Ron Waldman, Cha�r, MDG Comm�ttee on Ch�ldhood Mortal�ty
Carol Welch, Un�ted Nat�ons Foundat�on
