On 15-16 November in Turkey, G20 Leaders issued a call to action to advance inclusive business, and released the G20 Inclusive Business Framework, developed by the G20, World Bank Group and UNDP.
The private sector has a strong role to play in development and poverty eradication. Through the G20 Call on Inclusive Business, G20 Leaders aim to promote opportunities for low income people and communities to participate in markets as buyers and suppliers.
The G20 Inclusive Business Framework provides an evidence-based reference for government and business, highlighting how governments can support the private sector to reduce poverty and advance inclusive and sustainable growth while pursuing business opportunities.
To take the Framework forward, G20 Leaders have also called for the establishment of the G20 Global Platform on Inclusive Business, to be jointly managed by UNDP and the World Bank Group. The Platform will focus on government policy, but be a multilateral coordinating and information sharing mechanism through which policy makers from G20 and non-G20 countries can engage with the private sector and other stakeholders. It will also complement and cooperate with existing business-focused global platforms, such as the Business Call to Action platform (BCtA) and the Inclusive Business Action Network (IBAN).
In the call to action, G20 Leaders commit to:
- encourage and support the scaling up of inclusive businesses by applying the G20 Inclusive Business Framework in their domestic contexts and development policies;
- promote, improve, and adopt, where appropriate, relevant rules and regulations conducive to inclusive business, improve access to finance for people at the base of the pyramid and for inclusive businesses, share relevant market data and raise awareness, and strengthen the capacity for inclusive business, including by working in partnership with the private sector; and
- remain engaged on inclusive business and monitor progress made by the G20.
G20 Leaders also encourage other stakeholders to be involved in inclusive business by:
- calling upon Leaders in the private sector to seize the opportunities offered by inclusive business, in particular by harnessing the investment and innovation capacities of their organizations and integrating low-income people into their business models and value chains.
- encouraging business Leaders to establish and implement corporate strategies and programs for inclusive business, enhance access to finance by providing financial services and new investment products, and deepen their engagement with low-income communities and people, including by providing training and support services.
- encouraging civil society to help make the voices and aspirations of low-income people heard.
The Australian Government is committed to work in partnership with the private sector to lift growth and boost economic resilience. The new framework directly supports the Ministerial Statement “Creating Shared Value Through Partnership – Engaging the Private Sector in Aid and Development” released by Foreign Minister Julie Bishop on 31 August 2015.
More information on the Framework, the Leader’s Call and Concept Note on the G20 Global Platform on Inclusive Business is available for download here.