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21 March, 2001

1. General Assembly Resolution A/RES/54/196 calls for consideration by the organizational session of the Preparatory Committee of modalities for the participation of other stakeholders, including the business community, in both the preparatory process and high-level intergovernmental event. The business hearings in December provided a cross-section of views from business sector representatives relating to the substantive themes within the financing for development agenda. This was helpful in that it provided an additional substantive input, and from a different angle, for delegates to consider in their preparations for the substantive session of the Preparatory Committee. Engaging the business sector beyond the hearings phase would ensure their integration in the process of considering in greater depth the substantive policy issues before the Preparatory Committee and create the conditions for their involvement in the implementation of the outcomes relating to the business community.

2. In order to engage the business sector in such a substantive manner, certain issues need to be addressed. Among the issues are the substantive topics requiring business sector perspectives, the methods of identifying and approaching relevant representatives of the business community, the appropriate modalities for engagement, and the next practical steps forward.

Substantive issues in need of business sector perspectives

3. The following are some substantive areas on which business sector perspectives would be helpful:

• Increasing the volume of foreign private capital flows to low income and middle income countries

• Strengthening the development impact of foreign private capital flows to developing countries

• Determinants of investment decisions, including enabling environments and methods of improving the realism in the perception of risk and reducing the credibility gap that may emerge between improvements in a country’s investment climate and the response of foreign investors

• Attracting portfolio flows while at the same time limiting their volatility

• Role of the business sector in preventing and resolving financial crises in emerging markets, including proposals for private lenders and bond-holders to play a part in support of adjustment packages for crisis-hit countries.

• International trade as a vehicle for generating financing for development.

Identifying and approaching relevant representatives of the business community

4. Companies with significant business interests, and those considering investments, in developing countries (both multinationals and local companies, including small and medium sized enterprises) could be considered for engagement. The need to ensure geographical distribution should be kept in mind so as to provide a diversity of perspectives. Where individuals from the business sector are invited to participate in round tables, workshops and panels, they should have hands-on expertise of the relevant issues – they need not necessarily be the heads or chairpersons of companies, but professionals who are both influential/senior and able to provide an innovative input into our substantive deliberations.

5. Given the heterogeneity of the business sector and the difficulties involved in identifying the best representatives to engage with, it is very important to have appropriate interlocutors. Given the diversity of issues on which possible business sector contribution can be identified, there may be a need to engage with more than one interlocutor:

• From within the business sector, the International Chamber of Commerce, the World Economic Forum and the World Business Council for Sustainable Development are proposed as some possible interlocutors. On certain specific issues, other entities like the Institute for International Finance, and an appropriate network of stock exchanges, could provide interesting perspectives. Other interlocutors could include the G77 Chamber of Commerce and Industry and the G77 Trade Network.

• Another set of interlocutors proposed are regional, subregional and multilateral development agencies that already interact with the business sector. The IFC and MIGA are obvious candidates here and could help in identifying and bringing in representatives of business and national investment insurance agencies within their network to provide perspectives on themes relating to foreign direct investment and portfolio flows.

• Initiatives and groupings like the Global Compact and World Federation of United Nations Associations (comprised of business executives and former foreign affairs officials who are sympathetic to the UN) could also be very useful as interlocutors – in particular, the UNA-USA and its Business Council for the UN.

6. It would be useful to engage with more than one interlocutor. Moreover, the methods of engagement may also vary according to the interlocutor. The logical sequence would be to first agree on the substantive issues/questions on which business sector perspectives would be needed and, based on these, identify and approach the appropriate interlocutor. At the same time, though, some flexibility would be needed with respect to broad-based interlocutors (like the International Chamber of Commerce and the World Economic Forum) who, through their internal processes, may be able to identify additional issues relevant to business sector financing for development. These bodies may need to be approached and engaged with in a more interactive fashion.

7. When identifying and interacting with interlocutors, the need to ensure geographically balanced representation from the business sector should always be given high importance.

Modalities for engagement with the business community

8. Based on previous experience, holding focused and interactive round table sessions, workshops and seminars (including those that bring together people from different backgrounds – business sector, civil society, academia and governments) offer a useful modality for engagement with the business community. Round tables could be held during intersessional periods as well as during the conference itself.

9. Though panels are less intensive than round table meetings and workshops, they could be appropriate as a forum for presenting important findings. In this respect, the perspectives of the business sector need not always be obtained through public events. For example, entities like the World Economic Forum or the International Chamber of Commerce, from their internal deliberations, could produce papers containing their contributions on substantive issues (if required, these could then be presented at a panel). Similarly, surveys on business sector opinions conducted by the above interlocutors or by, say the IFC, could be supplied to the Preparatory Committee and become an important substantive contribution.

10. The World Economic Forum and other such bodies should be encouraged to use their processes to generate outcomes related to substantive issues identified by the Preparatory Committee.

11. Key interlocutors should be invited to attend the Preparatory Committee during its session in May in order to exchange views on the substantive areas and identify appropriate modalities for further engagement.

Other suggestions/points raised

12. The International Chamber of Commerce has proposed to the Coordinating Secretariat to help organize a meeting of business leaders from around the world that would take place in conjunction with the International Conference next year. This idea should be further developed and presented to the Bureau, taking into account the identification of issues and the objective of balanced representation.

13. The Boston-based "Money Matters Initiative" has informed the Secretariat that it is considering organizing a workshop, after the May Preparatory Committee meeting, to bring together government leaders and private sector players to discuss Ffd related issues. In addition, the Friedrich Ebert Stiftung, a German foundation, in cooperation with the Department of Economic and Social Affairs and UNCTAD, is organizing a conference on "Mobilizing Capital in the Interest of Development", to be held at the Downtown Association in New York City on 26-27 April, bringing together representatives of governments, central banks, business and civil society organizations for a dialogue focused on mobilizing private capital for development in least developed and other low-income countries.

14. Invite governmental initiatives along the same lines.

Criteria for accreditation of business associations

15. The procedure for ad-hoc accreditation of business associations is the same as for non-ECOSOC accredited non governmental organizations.

Participation of businesses in the Preparatory Committee and the Conference

16. On the basis of the substantive issues identified, and the required characteristics of companies described in paragraph 4, the Bureau should be authorized to invite businesses, that express an interest, to participate. It is noted in this regard that the format of the Conference has yet to be decided by the Preparatory Committee.

Proposed action plan

17.The following action plan is proposed:

Consider the draft report and authorize the Bureau to provisionally begin interaction with interlocutors with respect to their engagement with the Preparatory Committee during its session in May.

Ask the secretariat to continue interacting with the International Chamber of Commerce regarding their offer to help organize a world gathering of business leaders in conjunction with the international conference next year, as well as with other organizations that have approached it with related ideas on this subject or those that could play an important role in this regard.

18. The above actions should lead to the formulation of a work program from May to the date of the International Conference that includes round tables, workshops, seminars, panels and commissioned research.