IDRC/DJIBRIL SY Target a: Develop further a ope, rulebased, predictable, o-discrimiatory tradig ad fiacial system Percetage of developed-coutry imports from developig coutries ad from least developed coutries (LDCs) that were admitted duty-free ad admitted duty-free with competitor products subject to a tariff uder MFN (preferetial duty-free access), 1996 200 Target d: Deal comprehesively with developig coutries debt u Debt burdes are easig for developig coutries ad remai well below historical levels. Target e: I co-operatio with pharmaceutical compaies, provide access to affordable essetial drugs i developig coutries u Media prices of essetial medicies i developig coutries are o average 2.5 times higher tha iteratioal referece prices for the public sector, 6.1 times higher for the private sector. Target f: I co-operatio with the private sector, make available the beefits of ew techologies, especially iformatio ad commuicatios techologies Iteret users for each 100 people, 2003 ad 200 Developig regios 2003 5 200 15 u Developig coutries are gaiig reater access to developed-coutry arkets. Target b: Address the special eeds of least developed coutries, ladlocked coutries ad small islad developig states u Oly five door coutries have reached the UN target for official aid. Developed regios 2003 49 200 6 World 2003 12 200 23 0 20 40 60 0 u Access to the World Wide Web is still closed to the majority of the world s people. u Aid cotiues to rise, despite the fiacial crisis yet Africa is short-chaged. SOURCE: UN (2010). 6 M D G : D E V E L O P A G L O B A L PA R T N E R S H I P F O R D E V E L O P M E N T
DEVELOP A GLOBAL PARTNERSHIP FOR DEVELOPMENT MDG THE PRESENT SITUATION Developig a global partership for developmet ivolves reducig the digital divide, improvig fair trade ad icreasig access to affordable essetial drugs. The use of iformatio ad commuicatios techology (ICT) cotiues to grow world-wide. Growth i mobile-telephoe use is strogest i the developig world, where by the ed of 2009 mobile peetratio exceeded 50%. But the cost of Iteret access i low-icome coutries remais prohibitive. Access is further hampered by a lack of electricity i may poor (maily rural) areas. Access to fixed broad-bad services i developig coutries, where oly oe i six people have Iteret access, 199 is ofte geographically limited ad very expesive. 200 Fairtrade-certified producers beefit from a Fairtrade Premium as well as product price. Members or workers decide collectively how they wat to sped the Fairtrade Premium. I 200 workers of platatios ad members of Small Producer Orgaizatios received 42.3 millio uder the Fairtrade Premium. 201 What are the challeges? The failure of the Doha Developmet Roud shows how market access for developig coutries is little improved ad that agricultural support i developed coutries remais distorted. 202 May coutries are strugglig with capacity issues i creatig competitive export strategies that allow busiesses to trade globally. 203 Itellectual property trade regimes limit the developmet of low-cost geeric versios of affordable drugs, ad bottleecks i health-care delivery chaels further restrict the poor s access to them. Challeges i access to ICT particularly to the Iteret iclude the eeds for physical ifrastructure, regulatory capacity, skilled workers, literacy ad educatio ad iovative low-cost products with easy access for remote ad poor commuities. GENTIL ADJINAKOU/UNDP M D G : D E V E L O P A G L O B A L PA R T N E R S H I P F O R D E V E L O P M E N T 6 9
THE PROMISE OF INCLUSIVE BUSINESS MODELS MNCs ca, for example: Source from least-developed coutries (LDCs) at fair coditios. As pharmaceutical compaies, make drugs affordable ad accessible to the poor by tiered pricig, volutary licesig or geerics productio. As ICT compaies, make ew techologies available to the poor. I global forums, advocate for a fair-trade regime ad for collaboratio i expadig access to pharmaceuticals ad ew techologies. NOVARTIS Large domestic compaies ca, for example: Ivest i research to develop lower-cost essetial drugs. Adopt ew techologies i operatios, build staff capacity for these techologies. Collaborate with local regulators to develop regulatory capacity for ew techologies ad ew idustries. SMART COMMUNICATIONS SMEs ca, for example: Work with local ad atioal authorities, certificatio ad trade agecies ad others to create access to iteratioal markets. Deliver ew techology ad medicie to the poor. A LITTLE WORLD NPOs ca, for example: Establish producer access to world markets through fair-trade systems. Draw o ew techology i iovative busiess models through e- learig ad e-health or reewable-eergy systems. ARMOR-LUX 7 0 M D G : D E V E L O P A G L O B A L PA R T N E R S H I P F O R D E V E L O P M E N T
C A S E S T U DY Novartis ad Medicies for Malaria MNC, Africa Sice 2001 Novartis has supplied 215 millio treatmets of Coartem a artemisii-based combiatio therapy (ACT) for malaria for public-sector use i Africa, savig a estimated 630,000 lives. It has doe so without profit, usig grats from the Global Fud ad other doors. 204 Novartis has lowered the price of Coartem by 50% sice 2001. It scaled up maufacturig from 4 millio treatmets i 2004 to 62 millio i 2006, due to a icreased supply of artemisii. I April 200 it further reduced the public-sector price of Coartem by approximately 20%, to a average of $0.0 (or $0.37 for a child s treatmet pack). 205 MDG C A S E S T U DY Smart Commuicatios Large domestic compay, The Philippies Smart Commuicatios, a wireless-telephoe services provider, itroduced a mobile-remittace service i 1999. At least eight millio Filipios, or about a quarter of the domestic labour force, work ad live abroad. Because of SMS techology such workers ca ow sed moey cheaper, faster ad more coveietly: stadard bak rates for moey trasfers have falle from 10% 35% to 1% %. By servig low-icome Filipios, Smart grew rapidly from 191,000 subscribers i 1999, to more tha 2.6 millio i 2000, to more tha 24 millio i 2006. 206 C A S E S T U DY A Little World SME, Idia A Little World (ALW) offers a secure, low-cost platform for fiacial services through special mobile phoes. The phoe stores ad maages customer bak accout data, autheticates accout holders through photographic ad biometric idetificatio ad allows access to the accouts at Poit of Service termials. Zero Microfiace ad Savigs Support Foudatio (ZMF) is ALW s sister etity. Preset i 22 states ad servig more tha 16,000 villages, ZMF has served more tha four millio people. Govermet trasfers through pesio schemes ad the Natioal Rural Employmet Guaratee Act accout for more tha three millio customers. ALW s techology also eables corruptio-free distributio of govermet fuds. 207 C A S E S T U DY Fair Trade Cotto NPO, Mali I West ad Cetral Africa cotto is the mai source of icome for 20 millio people, accoutig for up to 60% of atioal export earigs. But sice 1999 Africa producers have suffered from successive price falls, with o guaratee that the price of cotto will afford farmers a retur o ivestmet ad allow them to recoup productio costs. The work of the Fairtrade Labellig Orgaizatio, its Frech member Max Havelaar ad Europea clothig retailers such as Frace s Armor-Lux highlights the value of fair trade for both producers ad cosumers. Thaks to a guarateed miimum price as part of fair trade, Mali producers icreased their icome by 70% durig the 2005 06 harvest. 20 M D G : D E V E L O P A G L O B A L PA R T N E R S H I P F O R D E V E L O P M E N T 7 1
THE SUPPORTING ROLES OF INSTITUTIONS Policy Policies to facilitate busiess i its efforts to trade with LDCs, ladlocked ad small islad states ad to facilitate access for SMEs ad the like from such coutries are essetial to icreasig the coutries market access. Aid for Trade aims to help developig coutries, particularly LDCs, cultivate the skills ad ifrastructure eeded to expad their trade. Aid for Trade iitiatives ivolve parterig with compaies ad assistig developig-coutry private sectors i specific value chais. Oe Aid for Trade iitiative is the Itegrated Framework (IF) for Trade-Related Techical Assistace, a iter-agecy UN programme supportig LDCs i makig trade capacity itegral to atioal poverty reductio ad developmet plas. 209 Trade regimes exist that improve access to drugs for the poorest coutries without destroyig the basis o patets, eablig busiesses to sell drugs at differetial prices. The Agreemet o Trade-related Aspects of Itellectual Property Rights (TRIPS), a iteratioal agreemet admiistered by the World Trade Orgaizatio (WTO), has established miimum stadards for may forms of itellectual property. The past decade has see a strog policy emphasis o public health ad access to medicies i the WTO, focusig o how flexibilities uder TRIPS should be iterpreted ad implemeted. 210 Clear frameworks ad processes for ICT developmet give legal basis ad directio to busiess iitiatives. The Jorda Educatio Iitiative (JEI) aims to use ICT to improve educatio ad build local ICT idustry capacity. Sice its lauch i 2003 the JEI has BILL LYONS/UNDP egaged over 30 active parters from the public ad private sectors, developed a math e-curriculum, itroduced i-classroom techology ad traied 50 Discovery Schools, trasferrig roughly $3.7 millio to local compaies. 211 The New Partership for Africa s Developmet s (NEPAD) East Africa Commissio is resposible for developig policies, strategies ad projects to maage the developmet of the ICT sector. 212 7 2 M D G : D E V E L O P A G L O B A L PA R T N E R S H I P F O R D E V E L O P M E N T
Research ad advocacy Iformatio o export markets is key to eablig iteratioal trade. May orgaizatios provide this iformatio commercially. But some provide it for free to help SMEs ad busiesses from LDCs. Market Access Map, a iteractive applicatio, tracks the market access coditios applied at the bilateral level by 12 importig coutries to products exported by more tha 200 coutries ad territories. Developed by the Iteratioal Trade Cetre ad others, Market Access Map aims to ehace market trasparecy ad promote iteratioal trade 213. Fair-trade iitiatives provide kowledge ad etworks to give poor producers access to iteratioal markets. Cotto Made i Africa, a joit iitiative of Germa textile buyers, esures that cotto producers i Africa deliver the required quality ad are fairly compesated. 214 The Fairtrade Labellig Orgaizatios (FLO) Iteratioal, established i 1997, is a associatio of 3 producer etworks ad 21 atioal labellig iitiatives that promote ad market Fairtrade certificatio i their coutries. I 200 Fairtrade-certified sales amouted to roughly $4 billio world-wide, a 22% year-to-year icrease. By December 2007 the certificatio had bee grated to 746 producer orgaizatios i 5 developig coutries. 215 Providig access to ICT usually requires etworks to facilitate co-operatio of various players, to provide ot oly access but also relevat cotet. The Global Alliace for ICT ad Developmet established by the UN Secretary Geeral i 2006 icludes represetatives from member states, the private sector, the o-profit sector ad UN bodies. It provides a ope, iclusive platform for broadeig dialogue o usig ICT for developmet 216. Advocacy platforms exist to make essetial drugs affordable for treatig all major diseases i the developig world. Examples iclude: Roll Back Malaria. The Stop TB Partership. The Global Busiess Coalitio o HIV/AIDS, TB ad Malaria. (See chapter 6.) ADAM ROGERS / UNCDF M D G : D E V E L O P A G L O B A L PA R T N E R S H I P F O R D E V E L O P M E N T 7 3
Fiacig Public-private door partership programmes help reduce ad maage the risks or perceived risks of buildig busiess i developig coutries, i particular LDCs. For example, the Germa Federal Miistry for Ecoomic Cooperatio ad Developmet (BMZ) offers developpp, USAID the Global Developmet Alliace ad DFID the Challege Fuds. 217 Iovative fiacig mechaisms help create market demad for essetial medicies. UNITAID uses the proceeds of a solidarity tax o airlie tickets to purchase drugs ad diagostics for HIV/AIDS, malaria ad tuberculosis. 21 The solidarity tax made up 72% of UNITAID s fiacial base by the ed of 200. 219 I three years UNITAID raised more tha $1 billio ad fuded treatmet of more tha 21 millio people i 94 coutries. 220 The Clito Health Access Iitiative (CHAI) applies a busiess-orieted approach to chagig the market for medicies ad diagostics ad to supportig developig coutries to scale up HIV/AIDS, tuberculosis ad malaria care ad treatmet programmes. Negotiatig reduced prices with pharmaceutical compaies, based o poolig market demad, is importat. Two millio people early half of all people livig with HIV ad o treatmet i developig coutries are beefitig from medicies purchased uder CHAI agreemets. Sevety coutries, with more tha 92% of all people livig with HIV globally, have access to CHAI s egotiated prices for ati-retroviral (ARV) drugs ad diagostics 221. Targeted fudig is also available to support the itroductio of ew techologies through busiess. The Liquid Petroleum Gas Rural Eergy Challege, lauched i six pilot coutries as a partership betwee UNDP ad the World LP Gas Associatio (WLPGA), provides access to clea eergy through micro-fiace fuds ad the use of LP Gas. 222 After the 2010 earthquake i Haiti, USAID ad the Bill ad Melida Gates Foudatio lauched a $10 millio fud desiged to ecourage compaies to create applicatios ad services that allow users to deposit ad withdraw moey through their cell phoes. 223 ADAM ROGERS/UNCDF 7 4 M D G : D E V E L O P A G L O B A L PA R T N E R S H I P F O R D E V E L O P M E N T
UNDP Capabilities For ICT, access is ot eough. People must be able to use it. Traiig programmes thus support the expasio of ICT services. I 2002, with support from the Govermet of Japa, ifodev lauched its Icubator Iitiative to foster ICT-eabled etrepreeurship ad private sector developmet i developig coutries. By 2005 ifodev supported 43 icubators i developig coutries with fiacial ad techical assistace through the iitiative. 224 I May 2001 the Iteratioal Telecommuicatio Uio (ITU) lauched the Iteret Traiig Ceters Iitiative for Developig Coutries (ITCI-DC) to provide studets ad professioals i developig coutries access to affordable, relevat techology traiig. As part of the iitiative Cisco Systems has offered the Cisco Networkig Academy at all Iteret Traiig Ceters. 225 Trade with developig coutries, i particular LDCs, ca be ucertai. Developmet orgaizatios ca act as expert parters for busiesses i developig ew markets. Both UNDP s Iclusive Markets Developmet (IMD) Iitiative ad DFID s Busiess Iovatio Facility support compaies i developig coutries through brokerage ad advice. M D G : D E V E L O P A G L O B A L PA R T N E R S H I P F O R D E V E L O P M E N T 7 5