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Mobilizing Private Sector Contributions to MDGs FOCAL Roundtable Ottawa, September 13, 2005

This roundtable in Ottawa discussed the role of the private sector in achieving the Millennium Development Goals. It emphasized the need for a global partnership for development and outlined strategies to mobilize private resources. Challenges and opportunities were identified, and the conclusion highlighted the importance of rethinking Canadian contributions to development beyond official aid.

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Mobilizing Private Sector Contributions to MDGs FOCAL Roundtable Ottawa, September 13, 2005

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  1. Mobilizing Private Sector Contributions to MDGs FOCAL Roundtable Ottawa, September 13, 2005 Christine Johnson Policy Branch, CIDA

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

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

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

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

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

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

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