Transcript Folie 1 - Instituto Ethos

Panel 6
Sustainable Business Linkages in the
Production Chains
„UNCTAD‘s preliminary findings on good practice in linkages
policies and project approach“
Ethos International Conference, Sao Paulo, June 2006
Christiane Stepanek-Allen
Chief, Office of the Director and Linkages Programme
Division on Investment, Technology and Enterprise Development
UNCTAD
Main questions addressed.......
1. How are business linkages addressed in UNCTAD’s work?
2. What are preliminary findings regarding linkage policies and
international initiatives?
3. How does PV benefit?
1. How are business linkages addressed in
UNCTAD‘s work?
Crosscutting:
•
Research/analysis on FDI (trends, drivers)
•
Policy advice on enabling investment environment
•
Capacity building in investment promotion
•
Research/analysis on enterprise competitiveness
•
Policy advice on SME support measures and programmes (Empretec)
•
International best practice in corporate responsibility
•
International guidelines for CR reporting (ISAR)
Products:
•
PV and other national support programmes in Africa and Asia
•
Business linkages blueprint, catalogue on good practice policies
2. What are preliminary findings regarding policies and
and support measures?
An analytical framework for the analysis of an systemic policy approach to linkage building
Improving
climate
the
investment
Providing strategic
guidance and policy
coordination
Specific linkage
policies
Strategic FDI
attraction
Strengthening
absorptive
capacity
2. What are preliminary findings regarding
policies ?
Encouraging“ policy approach (mainly non-restrictive) aimed at matchmaking,
coordination, technology transfer, i.e.:
•
Horizontal, non-selective policies to compensate for market failures
(information, access to technology, R&D,payment delays)
•
Selective, sector-specific and cluster policies (also to advance sociopolitical goals)
•
Tax and financial incentives to strengthen the absorbtive capacity of SMEs
•
Complementary government activities
•
Linkages aspect need to be addressed in all five policy areas
Who are the key players and institutions of a
successful linkages promotion programme?
2. What are preliminary findings of a best
practice linkages programme?
Sector-specific
approach
 difficult to get companies from
the same sector to share
experiences
 introduces implicit bias on
manufacturing outsourcing
Sector-unspecific
functional approach
 encourages horizontal
learning and exchange of
information
 similar to BDS: addresses
market failures
2. What are preliminary findings of a best
practice linkages programme?
Facilitation
 share information on
suppliers, make them more
visible
 involve meso institutions
 strengthen BDS market
Upgrading
 work with individual TNC to
develop local suppliers
 funding upgrading effort in
suppliers
 facilitate upgrading, e.g.
match spun-off small enterprise
with additional customers
Facilitation approach in line with the recent donor thinking on promoting market-based solutions
2. What are preliminary findings of a best
practice linkages programme?
•Strategic policy orientation and coordination with public and private
stakeholders
•Identification of specific role of all stakeholders (public, private, meso,
donors, NGOs)
•Target lead firms of production chains and high brand recognition
•Spread experience and learning of TNC linkgage initiatives
•Subregional initiatives are more successful than national initiatives
•Performance measurement to calculate cost (for TNC and government)
The Role of Corporate Social Responsibility
•
Growing importance of CSR in corporate governance, TNC strategy formulation and
reporting
•
CSR advocacy a promising driver to engage TNCs in government linkages initiatives
(or international, i.e. UN, donors), if integral part of gov. policy
•
Growing international trend in CSR to favor linkages with socially underprivileged
groups in developing countries, through:
- Support to the supplier
- Selling basic products and services to poor communities
•
Companies with high brand recognition or market leaders engage more often in CSI.
Degree of commitment varies, companies that have announced specific targets are
more likely to take it seriously
Careful mix of CSR and operational interventions interventions determine
success of promoting sustainable business linkages
Project needs clear message!
3. How does PV Benefit?
• Coalition of national and international stakeholders
(Steering Committee/Advisory Board) to focus on different
aspects and localize best practice learning
• Policy advice (addressing different aspects, access to
different government stakeholders)
• Building upon earlier intiatives (Empretec, IPR, CSR
Reporting)
• Appreciated for understanding international investment and
TNC requirements, the local business climate, SME sector
• Project offers „opportunity“ for TNC initiative
• International exposure