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Latin American Private Sector Investment in
meeting the Millennium Development Goals
Direct Private Sector Investment in meeting the
Millennium Development Goals
September 13, 2005
Ottawa, Canada
Antonio Vives
Senior Deputy Manager
Inter-American Development Bank
Content of the Presentation
 Private
Sector and MDGs
 Philanthropy, CSR and MDGs
 SMEs and MDGs
 Private Sector, Multilaterals and MDGs
 Private Sector, Governments and MDGs
 Can contribution be measured?
Private Sector and MDGs

Private sector as afterthought in the MDGs
 But, MDGs unachievable without the PS
 Do not count on international private flows
or remittances (portfolio and consumption)
 Not all investment is development, much
less MDGs achievement
 Best antidote against poverty is a good job
Private Sector and MDGs

Products geared to low-income populations
 Services, especially infrastructure (water)
 Technology (health and education)
 Care for the environment
 Financial resources: microenterprises
 Bottom of the pyramid: predator or friend?
Philanthropy, CSR and MDGs

Philanthropy is the easy way out (only one
measurable, but no data available)
 Corporate Responsibility is more effective,
but not the panacea
 Fair wages, good working conditions,
responsible products, concern for the
environment, support for the community,
local supply chain (microenterprises), etc..
 Profit, people and planet
SMEs and MDGs

Multinationals have impact, but the world is bigger
 Recent IDB study found that even SMEs can and do
contribute.
 40-60% of employment, 30-50% of GDP in LAC
 Many CSR activities, specially “internal”
 1% of sales donated to community activities
(realistic?)
Private Sector, Multilaterals and MDGs

Multilaterals work directly towards MDGs
 MDB help create conditions for private
sector to thrive and in turn support MDGs
 Provide direct finance for projects
 Demand responsible behavior
 Partnerships
Private Sector, Governments and MDGs

Macroeconomic and political stability

Policy reform and business climate

Investment and philanthropic partnerships

Business promotion schemes (very carefully)
Can all this contribution be measured?
NO

Does it matter?
Closing remarks

Does the private sector in LAC know about
the MDGs? Do they care?

Need to disseminate benefits (private sector
is an expert in assessing costs)

Couch it in business lingo.
Latin American Private Sector Investment in
meeting the Millennium Development Goals
Direct Private Sector Investment in meeting the
Millennium Development Goals
September 13, 2005
Ottawa, Canada
Antonio Vives
Senior Deputy Manager
Inter-American Development Bank