G20 Development Working Group Submissions slide image

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