Building on the success of their Alliance for Inclusive Business in the Central American and the Andean Region, the Netherlands Development Organisation SNV and the World Business Council for Sustainable Development (WBCSD) have signed a memorandum of understanding with the Inter-American Development Bank (IDB) to increase market-based solutions for the poor in Latin America.
The agreement could help improve the living conditions of the more than 300 million people in the region (over 70% of the population) trapped in the vicious cycle of poverty. In making the announcement at the Business with Four Billion: Creating Mutual Value at the Base of the Pyramid conference here, IDB President Luis Alberto Moreno said that "we will be joining forces to catalyze and scale-up inclusive business opportunities that will benefit the majority."
Latin America is the world´s most inequitable region, where employment, income and access to and quality of basic services remain largely inadequate despite modest economic growth over the last five years. Thus the region is increasingly developing sustainable and inclusive business models that seek to serve and empower the poor – creating more employment and income opportunities as well as access to products and services critical to their well-being.
These inclusive business approaches also present opportunities for visionary companies looking for new markets to increase their competitive advantage and lower their operating costs, while helping low-income communities meet their basic needs for green jobs, food, clean water, housing, education, etc.
WBCSD President Björn Stigson said: "With this MOU, we underline the WBCSD´s belief that business is part of the solution in the fight against poverty. We are fully committed to catalyze, develop, execute and scale up inclusive business opportunities, and look forward to working with the IDB and SNV to make business an even more powerful force for economic development in Latin America."
For example, through its efforts in Ecuador, the Alliance enabled a public-private initiative with Ecuadorian government and the most important leading Ecuadorean companies to catalyze the creation of more 250,000 new jobs and a favorable business climate over the next four years that will improve the livelihoods of over 1 million people.
As explained by W. Robert de Jongh, SNV´s Regional Director, "SNV believes that the persistence of poverty and inequity in Latin America cannot be abated without inclusive economic development strategies that empower the poor, leverage private sector engagement and strengthen the business climate. This IDB partnership with SNV-WBCSD Alliance is a bold attempt to catalyze sustainable and scalable solutions through business that will be a real boon for development in the region."
Learn more about the WBCSD SNV Alliance for Inclusive Business at:
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