APEC sets new path for business-driven inclusive growth
High-Level Dialogue explores opportunities for Inclusive Business in Asia-Pacific Manila,
PHILIPPINES, November 12, 2015 – Government and private sector leaders from member economies of the Asia-Pacific Economic Cooperation (APEC) are joining the APEC High-Level Dialogue on Inclusive Business (IB), where they will discuss how IB can help bring about inclusive growth throughout the region.
Following talks at the Public-Private Dialogue on IB last August, and at the IB session of the APEC Women Forum last September, the High-Level Dialogue aims to elevate discussions on IB in APEC, bringing in perspectives from IB experts and practioners from around the world. The High-Level Dialogue is taking place this November 12 at The Peninsula Manila in Makati City.
IB covers profitable business models that help address the different problems faced by poor and low-income communities. In the Asia-Pacific region, more than 700 million people live below the US$1.25 per day poverty line, a group collectively known as the base of the pyramid. IB models transform this group into a new market for goods and services, as well as a pool of talent, skilled labor, and entrepreneurship that strengthens companies’ supply and distribution systems.
The Department of Trade and Industry (DTI) and the Board of Investments (BOI) are working to create an enabling policy environment for IB, in line with the theme of APEC 2015 of “Building Inclusive Economies, Building a Better World.”
“By engaging the base of the pyramid as customers, suppliers, and employees, businesses become lasting partners of poor communities, ensuring that everyone benefits from economic growth. Integrating IB into public policy is thus one of our main concerns,” says Adrian S. Cristobal Jr., DTI Undersecretary and BOI Managing Head.
The BOI, together with the Asian Development Bank (ADB), has identified a number of successful IB models in the Philippines.
Among these is Kennemer Foods’ Cacao Growership Program. Under this program, smallholder farmers are tapped to supply cacao beans to Kennemer Foods under growership agreements of 8-10 years, helping them realize a seven-fold increase in annual income. These farmers also benefit from technology and technical support from Kennemer, leading to a four-fold increase in crop yield that ensures a reliable supply of cacao for the company’s global customers.
Manila Water’s “Tubig Para sa Barangay” program meanwhile effectively lowered the price of water from P150/cbm to P7/cbm for 1.6 million low-income residents of Manila, and gave these communities an uninterrupted supply of potable water. The program also improved Manila Water’s network efficiencies, recovering 700 million liters of water per day. By improving its services, Manila Water also saw an improvement in collection efficiency from 15 percent to 100 percent, solving the problem of illegal connections.
Recognizing that IB helps bring about inclusive growth, the DTI has included IB in its Investment Priorities Plan (IPP). The BOI is also considering aligning industry incentive programs to prioritize companies with IB models and activities.
The High-Level Dialogue aims to establish a common understanding of IB among APEC members, and to plan how present work on IB can continue when Peru follows the Philippines as APEC chair in 2016. Opening the Dialogue are Undersecretary Cristobal and APEC Business Advisory Council chair Doris Magsaysay-Ho, joined by 200 delegates from the 21 APEC economies.
Multilateral development banks such as the ADB and the Inter-American Development Bank (IADB), as well as the International Finance Corporation (IFC) and the United Nations Development Programme’s (UNDP) Business Call to Action (BCtA) will likewise be participating in the Dialogue.
Noted IB proponents from the private sector such as Ayala Corporation CEO Jaime Augusto Zobel de Ayala, Indofood corporation business development manager Franciscus Welirang; MiBanco product development chief Cesar Vela Bazan; and CEMEX business development director Arturo Rodriguez Jalili will also be participating, along with leading IB advocates such as Senator Paolo Benigno “Bam” Aquino IV and Philippine Business for Social Progress (PBSP) Executive Director Rafael C. Lopa, among others.
For more information on Inclusive Business, visit http://apec2015.ph/inclusivebusiness.
Article Source: Asian Journal