Kigali, 22 July 2008: Creating Value for All: Strategies for Doing Business with the Poor , a new and groundbreaking report was launched today by the UN Development Programme (UNDP) in Rwanda . The report offers strategies and tools for companies to expand beyond traditional business practices and bring in the world's poor as partners in growth and wealth creation. Part of UNDP's Growing Inclusive Market's initiative, the report draws on extensive case studies and demonstrates the effectiveness—both for human progress and for wealth creation—of more inclusive business models.
The release of the Growing Inclusive Markets (GIM) report comes in the wake of a major campaign called the Business Call to Action, which seeks to accelerate progress towards meeting the MDGs by 2015. In May 2008, more than 80 CEOs from the world's largest companies met in London for a Business Call for Action meeting convened by the United Kingdom Department for International Development (DFID) and the United Nations Development Programme (UNDP). The event highlighted initiatives by more than a dozen global companies, including Citi Group, Coca-Cola, Diageo, Microsoft, Thomson Reuters, Sumitomo Chemical, and Vodafone – with a view to inspiring others to do the same. The London meeting was attended by President Paul Kagame of Rwanda , President John Kufuor of Ghana and UK Prime Minister Gordon Brown. Speaking on the occasion, President Kagame recognized that promoting the private sector is a very effective way of reducing poverty: “In our own case in Rwanda , international and domestic investment in ICT, financial sector, agriculture and tourism are already proving that the private sector way to reducing poverty is effective. More private investment will take us a long way through this productive path”, he said.
The report launched today in Rwanda is the first report of UNDP's Growing Inclusive Markets Initiative and the first with such depth and local knowledge. It showcases 50 studies by researchers predominantly from developing countries. These case studies demonstrate the successful pursuit of both revenues and social impact by local and international small- and medium-sized companies, as well as multinational corporations. In addition to examples from the 50 case studies, the report offers new tools for interested businesses. A strategy matrix helps find potential solutions to common constraints, while another new tool –heat maps – offers a visual overview of the market or services landscape—and a first look at potential new markets.
The Growing Inclusive Markets (GIM) is a unique initiative, which raises awareness and provides information on how businesses, governments and civil society can create opportunities for the poor through market-based approaches. The private sector is the greatest untapped resource for both investment and innovation in the race to achieve the MDGs.
“Achieving the Millennium Development Goals is a shared responsibility for all, the rich and the poor alike. The responsibility of the private sector is thus unquestionable and the engagement of the poor is equally important”, said Anthony Ohemeng-Boamah, UNDP Rwanda Country Director.
This first GIM global report identifies five key constraints which can deter companies from doing business with the poor: Poor market information; Lack of infrastructure; Absence of a sound regulatory environment; Lack of the necessary knowledge and skills; Limited access for the poor to financial services. In the same time, the report highlights five strategies that private businesses have successfully used to overcome the most common obstacles to doing business with the poor: adapt products and services; invest in infrastructure or training to remove constraints; leverage the strengths of the poor to increase labour and management pool and expand local knowledge; work with similarly-minded businesses, non-profit organizations or public service providers; engage in policy dialogue with governments.
“This report is a new guide for the business community, inviting them to consider the poor not only as consumers but also as a partner for making business work for all” said Aurélien A. Agbénonci, UNDP Resident Representative and UN Resident Coordinator in Rwanda .
The UN recognizes that many of the world's development challenges can be overcome with the help of vibrant economic growth, driven by private enterprises that create jobs, generate tax revenues and provide vital goods and services for the world's poor. Towards this end, UN works with the private sector to harness the transformative power of market forces for the benefit of disadvantaged people globally.
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Led by UNDP, the Growing Inclusive Markets Initiative is a platform to facilitate the engagement of all actors for more inclusive business models so that the pursuits of wealth creation and human progress can work to mutual advantage. It gathers relevant information, highlights good examples, develops practical operational strategies and creates space for dialogue. For more information: www.growinginclusivemarkets.org
UNDP is the UN's global development network, advocating for change and connecting countries to knowledge, experience and resources to help people build a better life. We are on the ground in 166 countries, working with them on their own solutions to global and national development challenges. As they develop local capacity, they draw on the people of UNDP and our wide range of partners. www.undp.org
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