G20 Development Working Group Submissions
PRIVATE INVESTMENT AND JOB CREATION
Domestic and foreign private investments are
key sources of employment, wealth creation and
innovation, which in turn contribute to sustainable
development and poverty reduction in developing
countries.
Recognizing the centrality of private investment to
development and job creation, the G20 committed
in its 2010 MYAP to assisting investors, developing
countries and key development partners in their
work to better leverage and maximize the economic
value-added of private investment and to create
globally competitive industries. The G20 has worked
closely with IOs towards this objective, including
UNCTAD (lead agency on Commitments 48, 49
and 51), the IFC (lead agency on Commitment 50),
the UNDP, OECD and ILO.
To support responsible value-adding private
investment and job creation, G20 members asked
relevant IOs to:
1) identify and promote the best existing standards
for responsible investment in value chains and
voluntary investor compliance;
2) review and develop quantifiable economic and
financial indicators for measuring and maximizing
financial value-added and job creation arising from
private sector investment in value chains;
3) make recommendations to assist developing
countries in attracting the most value-adding
investment to their economies;
4) assist LICs in developing action plans with the
view to strengthening financial markets, improving
the business investment climate, maximizing the
value added of private investment and supporting
the regulatory framework for foreign and domestic
investment.
5) develop a G20 Challenge on Inclusive Business
Innovation (see adjacent box).
Saint Petersburg Accountability Report on G20 Development Commitments
54
Chapter 2
Implementation of G20 Commitments
on Development
Private Investment and Job Creation Success
Story
The G20 DWG launched the Challenge on Inclusive
Business Innovation, managed by the IFC, the private-investment
arm of the World Bank, to rapidly expand commercially viable
businesses that serve the large numbers of low-income people
constituting the base of the global economic pyramid.
The goal of the Challenge was to identify, showcase,
and support innovative business models that can be replicated
across developing countries. There was a strong response from
the private sector to the Challenge. Close to 300 companies
participated and 15 winners were selected by a high-level
judging panel. Together the winners, presented during the
Leaders' Summit in Mexico, reach out to more than 40 million
people living at the base of the economic pyramid — as suppliers,
distributors, retailers, or customers - in more than 10 countries.
The Challenge winners have demonstrated that
commercially viable companies can also provide economic
opportunities for poor people-along with better access to
clean water, electricity, health care, education, housing, phone
services, and financial services. Through a series of workshops,
the winners get support for finding solutions to existing obstacles
to the scale and replication of their business models. Based on
the outcome of the Challenge and the winners' experience, the
IFC has provided a policy note assessing regulatory hurdles and
offering policy recommendations.
In-Depth Assessment: Development of indicator
framework
The G20 has asked the IAWG to develop an
indicator framework to maximize the development
impact of government programs aimed at attracting
responsible private investment that generates more
value and creates more jobs in particular value
chains.
Alignment with Core G20 and DWG Mandate.
8 Since 2010, Germany and Saudi Arabia have co-
facilitated the work done under the Private Investment and
Job Creation Pillar. Regarding this Pillar the G20 has worked
closely with UNCTAD, the IFC, UNDP, OECD and ILO.View entire presentation