Summary report, 16–17 June 2014

UN Development Group Post-2015 Europe and Central Asia Strategic Consultation: Doing Good to Do Better: Successful Corporate Strategies that Benefit Society

Convened under the theme ‘Doing Good to Do Better: Successful corporate strategies that benefit society,’ the Europe and Central Asia Strategic Consultation was part of a series of dialogues on the means of implementation of the post-2015 development agenda. It was organized jointly by the UN Industrial Development Organization (UNIDO) and the UN Global Compact, as the two co-leads on ‘engaging with the private sector,’ in the global consultations of the UN Development Group (UNDG) in close partnership with the Government of Slovakia. This series of dialogues on Engaging with the Private sector is being co-hosted by the Government of Spain and the United States. The event explored how European industries can best contribute to the emerging global sustainable development agenda of the UN, both on a local and global scale. It aimed to: facilitate private sector contributions to the post-2015 development process; explore innovative models of business partnerships in consideration of associated challenges and opportunities; share best practices and lessons learned for encouraging business engagement in development; and formulate recommendations for a system-wide report on engaging with the private sector in the post-2015 era.

Bringing together over 90 participants representing governments, international organizations, the private sector and academia, the event featured high-level panel discussions, followed by two thematic working groups that identified regional priorities for the post-2015 development agenda on: re-industrialization and regional development through innovation, and game changers in development, peace and security; and moving towards environmental sustainability, and achieving food security and livelihoods for all. The results of the consultations will feed into a global report that will inform various processes related to the post-2015 development agenda, as well as into the UN Secretary-General’s synthesis report.

This report summarizes the presentations and discussions during the meeting.

A BRIEF HISTORY OF THE POST-2015 DEVELOPMENT AGENDA PROCESS

At the High-level Plenary Meeting of the 65th Session of the UN General Assembly (UNGA) on the Millennium Development Goals (MDGs) held in New York in September 2010, governments called for accelerating progress towards achieving the MDGs, and also for thinking on ways to advance the UN development agenda beyond 2015. In response, the UN undertook several initiatives aimed at developing a post-2015 development agenda, including: setting up a UN System Task Team (UNTT) on the Post-2015 UN Development Agenda; launching a High-level Panel of Eminent Persons on the Post-2015 Development Agenda; appointing a Special Advisor on Post-2015 Development Planning; and launching national and global thematic consultations.

In addition to the above, other processes that will feed into the post-2015 discussions include: the work of the UN General Assembly’s Open Working Group (OWG) on Sustainable Development Goals (SDGs); regional consultations by the Regional Economic Commissions, which will result in a report on regional perspectives on the post-2015 development agenda; inputs from the Sustainable Development Solutions Network, set up by the UN Secretary-General in August 2012 to support global problem-solving in ten critical areas of sustainable development; and input from businesses and the private sector through the UN Global Compact.

In order to ensure coherence across these different work streams, an informal senior coordination group of four Assistant Secretary-Generals (ASGs) has been put in place, which includes the ASG for Economic Development at the UN Department of Economic and Social Affairs (DESA), the ASG for Development Policy at UN Development Programme (UNDP), the ASG for Policy and Programme at UN Women, and the Special Advisor on Post-2015 Development Planning. A “One Secretariat” has also been established to facilitate coordination and coherence across the work streams.

UN System Task Team: The UNTT, which includes more than 60 UN entities and agencies, and other international organizations, was established to assess ongoing efforts within the UN system, consult all relevant stakeholders and define a system-wide vision and roadmap to support deliberations on the post-2015 development agenda. UNTT presented its report, Realizing the Future We Want for All, in June 2012, calling for an integrated policy approach to ensure inclusive economic development, social progress and environmental sustainability, and a development agenda that responds to the public’s aspirations for a world free of want and fear. The report recommended that the post-2015 vision be built on the principles of human rights, equality and sustainability.

High-Level Panel of Eminent Persons on the Post-2015 Development Agenda: The UN Secretary-General launched the High-Level Panel in June 2012 and appointed President Susilo Bambang Yudhoyono, Indonesia, President Ellen Johnson Sirleaf, Liberia, and Prime Minister David Cameron, UK, as co-chairs. It includes leaders from civil society, the private sector and governments. The Panel, which reports to the UN Secretary-General and is not an intergovernmental process, published its report, titled A New Global Partnership: Eradicate Poverty and Transform Economies through Sustainable Development, in May 2013.

National and Global Thematic Consultations: In 2012, the UNDG initiated national and global thematic consultations on the post-2015 development agenda, which aimed to bring together a broad range of stakeholders to review progress on the MDGs and discuss options for a new framework. The national consultations took place online and offline in over 60 developing and developed countries, with national stakeholders providing inputs for a shared global vision of “The Future We Want.”

At the global level, the UNDG initiated 11 multi-stakeholder thematic consultations on: inequalities; education; health; governance; conflict and fragility; growth and employment; environmental sustainability; hunger, nutrition and food security; population dynamics; energy; and water.

Each thematic consultation was co-convened by two or more UN agencies with support from governments, working together with representatives from civil society, the private sector and academia. The consultations, which sought online contributions on the ‘World We Want 2015’ website, aimed to explore the role each theme could play in a new framework, the key issues and priorities within each theme, the different ways in which they can be addressed, and the linkages among them. A high-level meeting was held for each thematic area to consider the results and recommendations of the consultations, and develop recommendations to inform the larger process.

Dialogues on Implementation: The so-called “means of implementation” have been raised throughout the process of thematic and national consultations and are becoming increasingly central to the ongoing debate. The UN development system has created opportunities for interested groups and individuals to contribute specific ideas and proposals for the implementation of the post-2015 agenda in their countries and globally. The objective of these dialogues, launched in April 2014, is to draw upon the lessons learned and the collective wisdom of people around the world, convince policy-makers that an ambitious post-2015 agenda can be implemented, and foster a broad sense of ownership, inclusive planning structures and multi-stakeholder partnerships to support its delivery. Under this framework, consultations are being held on: localizing the post-2015 development agenda; partnerships with civil society and other actors; helping to strengthen capacities and build effective institutions; engaging with the private sector; participatory monitoring for accountability; and culture and development.

Led by UNIDO and the UN Global Compact, the consultation on engaging with the private sector aims to facilitate a dialogue on how businesses can best contribute to global sustainability, and reflects the global and inclusive scope of the future SDGs and post-2015 development agenda.

REPORT OF THE UNDG EUROPE AND CENTRAL ASIA CONSULTATION

OPENING PLENARY SESSION

On 16 June, Chair Christophe Yvetot, Head of the UNIDO liaison office to the EU, thanked the people and Government of Slovakia for hosting the meeting and explained that the consultative process on the post-2015 development agenda is aimed at developing a framework to ensure both reduction of poverty and sustainable development. He said UNIDO, as the main UN body dealing with inclusive and sustainable industrial development (ISID), has joined with the UN Global Compact to ensure the involvement of the private sector and industry in the process.

Dagmar Repčeková, Director General for Economic Cooperation, Ministry of Foreign and European Affairs, Slovakia, welcomed delegates and stressed the importance of better engagement of the private sector.

Taizo Nishikawa, Deputy Director General, UNIDO, provided an overview of the consultation process on the post-2015 development agenda, noting that while the first round of consultations focused on setting a broad framework, the current round focuses on developing concrete actions, including on partnerships with the private sector.

Tim Wall, Senior Policy Advisor, UN Global Compact, stressed the importance of private sector involvement across the whole spectrum of the post-2015 development agenda, pointing out that business resources and skills can add strength and support implementation.He noted that many businesses already realize that their success depends on the success of development and that momentum is building. He also pointed to the increased need for transparency and reporting of business contributions to social well-being and the environment, and complementarities between the work of the public and private sector. Outlining the new paradigm of partnerships as a key factor in the sustainable development agenda, Wall said it will result in greater benefits and in realizing the full potential of innovation.

Dominika Krois, Counsellor to the EU Permanent Mission to the international organizations in Vienna, presented the new EU industrial policy, highlighting that the European Commission (EC) Communication ‘For a European Industrial Renaissance’ prioritizes the need to mainstream industry-related competitiveness concerns across all policy areas, and to ensure access to production inputs, such as energy and raw materials at affordable prices. On international issues, she underlined that access to markets is to be promoted through continued bilateral negotiations for free-trade agreements and work within the framework of the World Trade Organization to prevent third countries from creating technical barriers to trade. On cooperation between Europe and Africa, she highlighted the need for Africa to industrialize and diversify its economy.

PANEL SESSION: INTRODUCTION TO THE POST-2015 DEVELOPMENT AGENDA FROM A REGIONAL PERSPECTIVE

Moderator Jonathan Glennie, Research Associate, Overseas Development Institute, introduced the session highlighting three paradigm shifts that need to characterize the post-2015 development agenda: sustainability, universality and equality. Calling it the “French Revolution of development,” he noted that the distinction between developed and developing countries is becoming outdated and Europe needs to address its own concerns regarding sustainable development.

Mandeep Bains, Head, External Policy Coordination, European Bank for Reconstruction and Development (EBRD), shared EBRD insights regarding contributions to economic development in countries with economies in transition in the region. She highlighted asymmetries in countries’ progress, and drew attention to priorities regarding: unleashing the potential of the private sector; building economies’ resilience; and working on economic governance issues. She drew attention to small and medium enterprises (SMEs) as a critical component of success, and noted strong correlation between the application of equity criteria and development outcomes. She concluded by highlighting the need to build a sector-specific and country-specific agenda.

Stefano Prato, Managing Director, Society for International Development, pointed to a paradigm shift in the development agenda, which in the past focused more on development cooperation and developing countries, while the issues currently discussed are universal in relevance and application, including problems with inclusion and inequalities. He said that in this context all countries are “developing countries” with common problems like the growing disconnect between their economies and their people. He said an agenda to ensure reconnection and development of a new framework of values and norms was required.

Juan Felipe Hunt Ortiz, Deputy Director, International Labour Organization (ILO), pointed to lessons to be learned from current problems, such as the financial and economic crisis and high youth unemployment, and the need to work on related issues as part of the post-2015 debate. Stressing the linkage to human rights and the need to improve the conditions for migration, he said ILO is in a unique position to support the post-2015 agenda, since it brings together workers, employers and governments who work on governance, skills and training.

Philippe Scholtès, Managing Director, Programme Development and Technical Cooperation Division, UNIDO, described how UNIDO has been engaging directly with developing countries and also the private sector. He said UNIDO is in a good position to help determine possible contributions by the private sector to the post-2015 agenda. In the EU in particular, he pointed to a possible focus on working with SMEs.

Marian Jones, Professor, University of Glasgow, UK, presented on the specific case of SMEs, highlighting that SMEs are flexible, innovative and able to see opportunities, but do not have the resources or capabilities to profit from economies of scale. She highlighted that most governments in Europe see SMEs as a solution to problems, noting however that SMEs include a huge number of diverse types of firms. She stressed challenges, including building the capacity of SMEs to implement international standards, as well as to partner with multinational companies.

Jan Wouters, Director, Leuven Centre for Global Governance Studies, Belgium, stressed that no global initiative can ignore the private sector and drew attention to recent UN reports emphasizing responsible business practices. He stressed that efforts in the EU to increase corporate social responsibility, including disclosure of social and environmental information, are missing key areas such as cross-border mobility, and called for a fundamental rethinking of corporate interest and for awareness-raising within the business system.

In response to Moderator Glennie’s query about key recommendations, Stefano Prato highlighted: at the macro level, the need for enabling conditions for trade, balancing openness with fairness; at the micro level, the need to re-price factors of production, including making labor cheaper at the taxation level while increasing the cost of environmental damage; and on process, the need to recognize the lack of trust regarding private sector engagement, and to start by unpacking the term to realize that it includes various kinds of businesses.

In the ensuing discussion, a representative of the European mining industry highlighted the need for a stable legal framework and stressed that regional differences in energy prices affects the competitiveness of several European countries.

KEYNOTE ADDRESS

Erik Solheim, Chair, Development Assistance Committee, Organisation for Economic Cooperation and Development (OECD) presented on the progress in contributions to development cooperation, including by emerging economies and Northern countries who contribute 1% of their GDP. He urged combining state support, market mechanisms, contributions from the private sector and private investment to ensure progress in development. Noting that development requires industrialization, he recommended skills training, focused intervention in manufacturing, preparation for the marketplace, and more efficient agriculture. He also recommended involving civil society and the private sector in developing the post-2015 development agenda.

EMERGING DONORS

Olga Memedovic, Chief, Regional Bureau for Europe and Newly Independent States, UNIDO, presented on emerging donors, many of which are now EU member states, but in the past were recipients of aid to assist with their transition to market economies. She said EU member states have donor targets and they can pool their resources to achieve certain targets. Memedovic said that new donors often provide different kinds of assistance for specific thematic priorities, based on criteria like geographic proximity, historical ties and commonalities in language, culture and history, which along with experiences from their own development can make the assistance more efficient. She outlined challenges arising from the present economic and financial crisis, leading to reassessment of donor budgets and a complex structure of development cooperation. She urged capacity building for new donors, so they can provide development assistance more effectively; and called for their active involvement in shaping the post-2015 development agenda.

Mehmet Sureyya Er, Deputy President, Turkish Cooperation and Coordination Agency, explained that Turkey has development cooperation projects across three continents focusing on health, education, infrastructure, tourism, cultural cooperation and capacity building, and that these are based on a demand-driven approach. He said the agency has a flexible approach and structure, carries out direct activities on the ground and conducts research to determine the most urgent needs and eliminate poverty.

Peter Hulenyi, Director, Department for Development Assistance and Humanitarian Aid, Ministry of Foreign and European Affairs, Slovakia, presented on Slovakia’s experience, highlighting that the country is currently a small but visible donor involved in more than 500 mostly successful projects. He stressed two factors: the sharing of experiences with recipient partner countries, underscoring that new donors “have a story to tell” due to their recent experiences and democratization process; and the need for inclusiveness, noting that involving all stakeholders, including NGOs, the private sector and academics, is crucial to success. On private sector involvement, he highlighted some success stories in involving the private sector directly in the field in recipient partner countries, but said Slovak businesses remain hesitant.

Ivan Lukáš, Policy Officer for Cooperation with the Private Sector, Czech Development Agency, presented on the work of the agency, including development of strategies and instruments on involving the private sector in development assistance.

Vladimir Uskov, Counsellor to the Permanent Mission to the international organizations in Vienna, Russian Federation, underscored that the Russian Federation is one of the largest voluntary donors to UNIDO and many Russian companies have joined the UN Global Compact. He stressed that the biggest challenges regarding development assistance lie in Central Asian countries, where degradation of industry and infrastructure is a serious problem, and youth leave their countries.

Chair Yvetot summarized the day’s discussions, highlighting the need to: ensure that private sector involvement “will do good”; and develop an agenda that works for all, that is, not only developing countries and countries with economies in transition, but also developed European countries facing problems with sustainability and unemployment. He added that new donors can contribute to development of the global agenda, including by sharing their experiences.

TUESDAY MORNING PLENARY

On Tuesday, Chair Yvetot noted that balancing between creating jobs and moving towards a green economy and green industry is a challenging task that cannot be done without the involvement of the private sector. He further highlighted that the planet’s resources will run out if humanity continues with the current system of consumption and production.

Kazuki Kitaoka, UNIDO, then introduced the day’s schedule, including formation of two working groups. He said that the first working group will address re-industrialization and regional development through innovation, and game changers in development, peace and security; and the second working group, environmental sustainability, and food security and livelihoods-related issues. He suggested the working groups define a limited number of key development challenges; consider enablers for business engagement; discuss options for possible solutions; and make concrete recommendations.

WORKING GROUP ON RE-INDUSTRIALIZATION AND GAME CHANGERS IN DEVELOPMENT

Moderator, Emad Bibawi, UN Global Lead Partner, KPMG, said that there is tremendous growth and innovation in developing countries, which can be linked to the UN’s aspirations under the SDGs by involving the private sector. He asked participants to break into small discussion groups to identify three main challenges in engaging the private sector in developing the SDGs; and three possible solutions that can help bridge the existing gap.

Following small group discussions, one group noted that while there is discussion about re-industrialization in regions like Europe, there is a need for a new model of collaboration and cooperation in the context of competition and global value chains.  They stressed the need to create a level playing field, through partnerships and quality infrastructure, which can especially benefit SMEs. They recommended national and international support for creation of clusters that can help structure the different actors and enable them to reach international markets.

Noting that history and the structure of the economy influence how companies develop and engage, another group found that many companies do not have a long-term vision and are not engaged in development processes. They recommended: diversification of the economy; creation of platforms for a public-private dialogue; and supporting organizations that can assist with creating cohesion among companies and linking them to global supply chains.

Another group discussed the importance of SMEs and noted that, due to lack of information and communication, SMEs are seldom involved in development discussions and projects. They said that large parts of the private sector do not know that development issues affect them.

The final group found that the private sector can be very active in influencing policy. They noted that the problem is specific to the post-2015 process, where the private sector needs incentives to participate, including networking, funding to  support their national and international work, and access to data .

Participants noted that, while in the past development was linked to development cooperation, now there is a shift to wealth and job creation, growth and sustainability. Some noted that SMEs have issues with profitability when investing overseas, while large firms benefit more from foreign investment. Others suggested that it is important for all business to realize that there is a market beyond their borders that can benefit their growth; and that profitable business is also development. Participants also underscored the need for: a rights-based approach to development; informing business about sustainability; and a re-division of labor between different actors to create new opportunities. While one participant stressed that business is development and development is business, others warned that the world is growing more unequal and stressed the need to engage companies in development.

Participants concluded that structural problems could be addressed by governments to allow for better engagement, including by creating platforms that bring people together. They also stressed the importance of education and information sharing to address knowledge gaps.

Kazuki Kitaoka, UNIDO, moderated the working group discussions in the afternoon and asked participants to develop five concrete recommendations. One participant expressed concern that historically Europe has done well, sometimes at the expense of others, and urged responsible growth. Some suggested that rather than continuing to look at development as a cost, it should be considered an investment. A few participants stressed the need for minimum standards with universal application to ensure that basic labor and environmental conditions are met. Participants discussed that profit maximization models do not focus on bettering humanity and considered value-based pricing and other alternatives that can ensure long-term sustainability. They noted that companies are starting to look beyond profits and their role in building markets for growth. Participants agreed that development has to move from a zero sum to a plus sum game. They called for consistency in applying values to regulations; and local engagement and awareness-raising through innovative means such as digital technology.

Kazuki Kitaoka reported on the outcome of the discussion to the plenary session. He said that participants found that re-industrialization in Europe needs to be looked at in a development context and made the following key recommendations: to develop policy principles moving from philanthropy to solidarity-based and investment-oriented solutions; to ensure that re-industrialization of Europe is not to the detriment of the rest of the world but constitutes an opportunity for global growth and development; to engage in more consultation to improve the understanding among sectors and active awareness-raising; to create platforms to help industries partner and to allow risk-taking and reduce risk perception; and to concentrate on local engagement with business, including with SMEs and supply chains.

WORKING GROUP ON ENVIRONMENTAL SUSTAINABILITY AND FOOD SECURITY

Moderator Barbara Kreissler, UNIDO, highlighted the major increase in material resource extraction and commodity trade volumes, in the context of an expected major population increase, and noted that continuing “business as usual” is bound to result in major environmental, economic and social disruptions. She stressed that increasing resource-efficient productivity will also lead to reduced production costs and enhance competitiveness. She identified the need for government support to SMEs to comply with sustainability criteria; and for developing a comprehensive way of cooperating with the private sector. She drew attention to the UNIDO green industry platform, which aims to support existing green industries and promote more sustainable production patterns.

Matthias Jurek, UN Environment Programme (UNEP), drew attention to the extent of environmental degradation, noting its impact on countries and business. He presented UNEP’s integrated approach, calling for consistency and coherence between different discussions in different sectors, balance between the three dimensions of sustainable development, and equity, including inter-generational equity. He further stressed the need to address not only resource efficiency and sustainable production, but also sustainable consumption, as well as to maintain and increase natural capital; and drew attention to UNEP’s initiative to promote the mainstreaming of mountain-related issues in sustainable development discussions.

Axel Marx, University of Leuven, focused on the links between job creation and environmental protection, and the issue of standards for sustainability. He noted that transformation to a green economy will affect employment structures, by negatively impacting polluting companies but at the same time stimulating innovation and creating an entire new industry, generating significant amount of employment. He stressed it is important to identify which policies are necessary to make this transition possible.

Highlighting the fact that the two billion people currently living in absolute poverty need to have the same living standards as people in the developed world, Heinz Leuenberger, Director, Environmental Management Branch, UNIDO, stressed the need to decouple consumption from the issue of living standards; and to shift away from labor productivity to natural resource productivity. Noting that business as usual is not an option, he offered examples of resource scarcity, including land and phosphorus which are essential for food production.

Dejene Tezera, Industrial Development Officer, UNIDO, focused on agricultural production and related challenges. He noted that the need for stabilization of population and increased productivity of the agricultural sector are already recognized, and drew attention to the equally important areas of reduction of post-harvest losses and promotion of investment in agribusiness through public-private partnerships. On reduction of post-harvest losses, he called for increased research, awareness-raising and investment, which requires private sector involvement.

Verena Zakirova, Partnership Development Office, FAO Regional Office for Europe and Central Asia, presented on her office’s partnership strategy, aiming to ensure that a participatory approach is applied in post-socialist countries so that the civil society and the private sector are included in policy processes. She stressed the need to convince governments to provide an enabling environment and to develop a regional platform to help exchange of knowledge and experience between different actors.

In the ensuing discussion, participants highlighted the interlinkages between poverty reduction efforts and issues related to sustainable consumption, which refers to prosperous parts of the population; and the importance of consumer education to change consumption patterns. On agriculture, one participant noted that younger generations, including in Africa, grow disinterested in land and agriculture when their aspirations increase, and called for a radical change in the way we look at agriculture.

Specifically on private sector involvement, the need for incentives was identified, both with regard to sustainable practices and with regard to participation in sustainability-related initiatives. In that regard, participants stressed the importance of stable and good governance; the role of regulations, standards and other voluntary instruments; and the need for synergies between standards-related and governments’ initiatives, including the need to create an enabling environment for the private sector to contribute to public interest. The role of accountability, compliance and enforcement was also stressed. One participant highlighted shifting from taxing labor to taxing resource use or emissions, as a possible solution.

During the afternoon, participants attempted to distil discussions into a limited number of challenges and potential solutions. They discussed the preferred structure and level of detail, focusing on the issues of enabling environment, sustainable resource management, accountability, and awareness-raising. They also agreed to point to the overall goal of decoupling growth and human well-being from natural resource use and consumption.

Later in the afternoon, moderator Kreissler presented the working group recommendations to plenary, noting they are universally applicable. She highlighted the overarching goal of decoupling economic growth from natural resource consumption and negative environmental impacts. Recommendations were clustered under: good governance, legal frameworks and the rule of law; sustainable resource management; communication, education, awareness raising and capacity building; financial incentives; and access to finance and sustainable investments.

On good governance, Kreissler underscored the need for a stable legal framework, harmonization of standards and regulations to avoid a “race to the bottom,” and accountability for both governments and the private sector. On sustainable resource management, she stressed the need to increase resource efficiency, reduce material use and reduce post-harvest losses and food waste. On communication, she highlighted the role of consumers in influencing production-related decisions and the need to make consumers aware of their influence, as well as the need for changing production and consumption patterns. On financial incentives, she drew attention to shifting taxation from labor to natural resource uses, removing harmful subsidies, and introducing positive ones; and highlighted the important role for government, for instance through public procurement. She identified access to finance as crucial in order to move towards sustainability and involve SMEs in the sustainability debate, and drew attention to the use of public-private partnerships and capacity building for financial institutions. Kreissler concluded by highlighting the importance of meaningful partnerships at the local, regional and global level for achieving all recommendations.

KEYNOTE ADDRESS

Georg Kell, Executive Director, UN Global Compact, gave a keynote address explaining why the private sector is willing, and needs, to be part of the solution. Noting that businesses have gone global and the world more commercial, he said the line between public and private has become blurred and that business cannot hide in the supply chain anymore. He said that business has a choice, to “either step aside and wait for the outcome, or be part of it,” adding that the business case for engagement has improved enormously. He identified major cross-cutting issues, including good governance, water, food and agriculture, and energy and climate, as well as social issues such as education. On the process for building partnerships, he stressed the role of platforms for sharing ideas and defining best practices, noting that scaleability is a critical component for making a difference. Noting that transparency and accountability issues are on track, he identified finance as a major barrier, noting that the financial world is years behind the real economy. He also called for changes in business education to ensure that business is no longer about profit maximization but also about responsibility. Underscoring that the post-2015 development agenda represents a huge opportunity to revitalize the UN, he invited the private sector to help the UN make the business case for each one of the SDGs, so that policy makers see the opportunity behind the SDGs; and stressed the importance for the UN to remain strong and insist on universality of principles.

PANEL SESSION: THE CASE FOR BUSINESS IN THE POST-2015 ERA

The panel on the case for business in the post-2015 era was moderated by Jonathan Glennie, Overseas Development Institute.

Philippe Loop, Head, Private Sector Development, Trade and Regional Integration Unit, Europe Aid, presented on two recently released European Commission (EC) Communications related to the post-2015 agenda and the involvement of the private sector in development, developed on the basis of wide-ranging consultations. He said the Communication ‘A Decent Life for All: from vision to collective action,’ stipulates that the post-2015 framework should be universal but implemented in differentiated ways based on the three pillars of economic, social and environmental sustainability; and foresees priority areas such as poverty reduction, health and food security. He stressed that the process has to be inclusive of NGOs and the private sector, who in turn have to be accountable for achieving results. He said the EU also wants to: develop an enabling policy environment at the global level; mobilize the necessary financial resources; and lever the energy of the private sector. Loop also described the EC Communication ‘A Stronger Role of the Private Sector in Achieving Inclusive and Sustainable Growth in Developing Countries,’ which includes broad principles, but also specific criteria and a set of actions related to private sector development, mainstreaming private sector involvement in development processes, and modernizing traditional private sector involvement in development cooperation, making it a channel for delivery, dialogue and joint action.

Hidegard Lingnau, Senior Counsellor, OECD Development Cooperation Directorate, noted that the development of the post-2015 development agenda is a complex process and the outcome is being negotiated by states, currently focusing on proposed goals and means of implementation. She said the OECD adds research and policy papers to the process to help define global targets and indicators, and monitors whether states meet their commitments to development cooperation goals. She said OECD is also looking into means of financing development cooperation, including by proposing actions to address tax evasion and develop conducive policies for private sector contribution and investment.

Angel Pes Guixa, Deputy General Manager, Caixa Bank, and President of the Global Compact Network in Spain, presented on Caixa Bank’s activities in setting up a microbank, specializing in microcredits to support microenterprise establishment and consolidation. He noted microbanking is an innovative social banking model, and drew attention to the social results of microcredit, including by generating employment.

Emad Bibawi, KPMG, highlighted that the economic environment in many developing countries, including in Africa, is drastically changing, with many economies growing rapidly. He noted that the discourse has shifted from corporate social responsibility towards a shared-value concept. He drew attention to the different language used by policy makers and by the private sector; and to the development of a matrix by KPMG indicating what each key industry can, or should, do in relation to each SDG.

Micha van Lin, Head, International Business, FME, the Netherlands, stressed that development and business objectives can relate and add to each other if done in a sustainable way. He identified platforms as a useful means to bring together companies and NGOs around national and international development goals. Noting they try to build upon existing projects of NGOs and development agencies, he stressed the need for clarity regarding where private sector engagement adds value.

Moderator Glennie asked participants whether the role of business in the post-2015 agenda will be significantly different from the past. Delegates expected that this would be the case, with some pointing to: business having more capacity to be involved; a difference in the agenda, noting that while the MDGs focused on aid, the post-2015 agenda is meant to be much more transformative; business playing a key role in wealth creation; and the economic crisis requiring new approaches.

CLOSING SESSION

Chair Yvetot welcomed the working groups’ recommendations and said they will be consolidated following further regional consultations and passed on to the UN. He stressed the need to transform the economy and society in a sustainable way, with the involvement of the private sector and based on solid policy frameworks.

Li Yong, Director General, UNIDO, noted that the global community is coming together to formulate a new development agenda and that the relationship with the private sector has to be strengthened to enable implementation of the post-2015 development agenda. He said that this requires new thinking, and that the private sector is a key partner for UNIDO and partnerships are required to find new opportunities for growth, mobilization of financial resources, and work on eradicating poverty while ensuring environmental sustainability. He said more action is needed to mainstream partnerships, take them to new and more transformative levels and realize their full potential. He encouraged a multi-stakeholder dialogue to inform the ongoing negotiations, noting that the views of business partners and their networks are critical to the post-2015 process. He said that ISID also calls for dialogue with the private sector to ensure collaborative partnerships to build capacity and mobilize resources.

Olga Algayerová, Slovakia’s Permanent Representative to the international organizations in Vienna, expressed her appreciation to UNIDO for organizing the consultation and to participants for their active participation resulting in concrete recommendations. The meeting closed at 5:53 pm.

UPCOMING MEETINGS

UNIDO Forum on Promoting ISID: This UNIDO Forum on ISID aims to promote dialogue among governments, development agencies and industry actors from developed and developing countries on strategies for ISID. The forum will serve as a platform for exchanging best practices and will showcase UNIDO’s work in this area. dates: 23-24 June 2014  location: UNIDO Headquarters, Vienna, Austria contact: Ciyong Zou e-mail: c.zou@unido.org www: http://www.unido.org/news/press/unido-industr.html

14th Meeting of the UN Global Compact Working Group on the 10th Principle against Corruption: This meeting will bring together Global Compact business participants, investors, banks​, local Swiss companies,​ as well as representatives ​from civil society, business associations, Global Compact local networks and international organizations to discuss the implementation of the 10th Principle, share best practices and explore concrete actions to leverage the work of the group. dates: 23-24 June 2014 location: Geneva, Switzerland contact: Neha Das e-mail: das@unglobalcompact.org www: http://www.unglobalcompact.org/NewsAndEvents/event_calendar/index.html

Regional Consultations on Engaging the Private Sector in the Post-2015 Development Agenda: Regional consultations on the issue are scheduled for: the Pacific, on 26 June 2014 in Vanuatu; the Caribbean, from 26-27 June 2014 in Aruba; and Latin America, from 30 June - 1 July 2014 in Cartagena, Colombia. contact: Irene Pirca Garcia e-mail: i.pircagarcia@unido.org www: http://www.worldwewant2015.org/privatesector2015

ECOSOC HLP Forum on Sustainable Development: The Economic and Social Council High-Level Political Forum on Sustainable Development will convene from 30 June - 8 July 2014, followed by the ECOSOC Annual Ministerial Review, to be held from 8-9 July 2014 and the ECOSOC Development Cooperation Forum, to be held from 10-11 July 2014. The theme is “Achieving the MDGs and charting the way for an ambitious post-2015 development agenda including the SDGs.” dates: 30 June - 11 July 2014 location: UN Headquarters New York, US www: http://www.un.org/en/ecosoc/docs/pdfs/2014_hls_hlpf_integrated_programme.pdf

E-Discussion on Localizing the Post-2015 Agenda: This online discussion focuses on issues related to the localization of the post-2015 agenda, as part of the discussion on means of implementation, with the aim of identifying solutions at the local level and enhancing the importance of the local dimension in development. It further aims to bring together a broad range of stakeholders on a variety of topics related to the localization of the post-2015 agenda and to provide an online space for sharing practical experiences, lessons learned, ideas and solutions on the localization of the MDG agenda. dates: 9 June - 18 July 2014  location: virtual  contact: Luana Natali, UNDP tel: +32 2 2350558 e-mail: luana.natali@undp.org www: www.worldwewant2015.org/localising2015

Further information

Participants

National governments
UK
US
Negotiating blocs
European Union
Non-state coalitions
NGOs

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