Republic of Moldova

Brussels, 27 June 2007—The United Nations Development Programme (UNDP), the Ministry of Foreign Affairs of Belgium, the Federation of Enterprises and AGORIA held a seminar on “Public Private Partnerships in Southeast Europe and the Commonwealth of Independent States” today. The event responded to a call from Belgian businessmen interested in investing responsibly in emerging markets.

South East Europe and the Commonwealth of Independent States offer great opportunities to Belgian entrepreneurs. Investors are attracted by relative macroeconomic stability, low labour costs and a proximity to European Union markets.  The regional market expands yearly by six per cent per year and the foreign direct investment reached a record 54 billion USD in 2006.

“We see private investments in Eastern Europe as an investment in people” said Kori Udovicki, UN Assistant Secretary-General and UNDP Assistant Administrator. “Foreign investors are bringing know how, new jobs and management best practices which not only generate much needed growth but also improve economic governance institutions.”

The UNDP projects funded by the Belgian and Austrian governments have a network of 15 brokers that help private enterprises to set up and start operations in Russia, Ukraine, Belarus, Armenia, Georgia and Moldova; Albania, Bosnia and Herzegovina, Macedonia, Serbia and Turkey.  Brokers differ from private consultants in such a way that they look for business solutions which combine business profits with positive impact on social development in Eastern Europe. They have strong networks with governments, non-governmental organizations and international community, which they can easily tap into when searching for specific business solutions.

“Providing decent jobs in depressed regions is an important development activity.  In this context, creating jobs is equal to increasing human development index,” said Jan Grauls, Secretary General at the Ministry of Foreign Affairs, Federal Government of Belgium. “It is a win-win situation for investors, the local population and government.”

Results of these projects so far include 30 public private partnership projects with various enterprises in Eastern Europe. All of those partnerships are focused on maximizing profitability for private business – as well as on maximizing public benefits for local communities. In these partnerships, UNDP brings together investors, governments and local communities, and co-funds market studies.

Ashatarak Kat, for example, a large dairy producer in Armenia joined forces with the Center for Agribusiness and Rural Development and UNDP to establish three milk collection and marketing units in the socially depressed and geographically remote region of Tavush. Ashatarak Kat was facing milk supply shortages although local dairy farmers could not sell their milk because of a lack of storage and distributing equipment as well as them not meeting the food safety management standards. The new investment, which kicked off last week, will assist 200 farmers from 10 neighbouring villages to organize milk collection and distribution processes. Centres will be operated by local cooperatives, established for that purpose.

These projects are operated in the framework of the United Nations Global Compact which is the largest corporate social responsibility network in the world bringing more than 4000 businesses together with non-governmental organizations, governments and academic institutions to advance corporate responsibility around the globe. Currently in Eastern Europe, Global Compact networks function in 16 countries with more than 700 companies.

The networks are voluntary and they provide platforms for companies to share experience and good practice on how to benefit from and implement corporate social responsibility practices. For example, Ukrainian and Moldovan companies held a learning workshop facilitated by the International Labour Organization. These events brought more than 100 domestic companies to discuss how they can benefit from promoting diversity in the workplace, reaching out to disadvantaged groups on the labour market, such as youth and minorities.

At the “Public Private Partnerships in Southeast Europe and the CIS” seminar, almost 80 companies, representatives of UNDP, the Belgian Ministry of Foreign Affairs, the Federation of Enterprises and AGORIA  and the regions explored concrete opportunities of partnership projects with Belgian-based small and medium sized companies interested in investing in Eastern Europe.

“As a donor, we have been guided by a principle that smart investing which combines commercial viability of projects with benefits for community creates much needed sustainability of development initiatives” added Jan Grauls.

For more information, please visit: http://europeandcis.undp.org/?menu=p_cms/show&content_id=7BA2A250-F203-1EE9-BA9B071B2C8A662C or contact:  Janka Geckova, Regional Project Manager. Janka.geckova@undp.org, mobile: +421903733495

 About UNDP: UNDP is the UN's global network to help people meet their development needs and build a better life. With offices on the ground in 166 countries, working as a trusted partner with Governments, civil society and the private sector to help them build their own solutions to global and national development challenges. Further information can be found at www.undp.org