March 01, 2004
United Nations Headquarters, New York

Canadian initiatives could make difference

Developing countries are home to hundreds of small businesses – and that could be their key to success, said Prime Minister Paul Martin, who was in New York announcing two initiatives Canada will implement to boost business development in the Third World.

Presenting the findings of the Commission on the Private Sector and Development to United Nations Secretary General Kofi Annan, Martin, who co-chaired the commission, noted that the expertise in developing countries coupled with those in the developed world could lead to progress.

“Today, with the Commission’s Report and with our two initiatives, we hope we have made the first of many steps that will be taken by leaders – in the private sector and in the public sector – towards the enlightened partnerships that will make small business growth a reality,” said Martin. “And, in so doing, make our dream of ending poverty just that little bit closer.”

Upon tabling the report – entitled Unleashing Entrepreneurship: Making Business Work for the Poor – the Prime Minister announced measures that Canada will undertake that directly support the recommended actions in the report.

This included a taskforce of experts that will recommend a structure to develop business partnerships and a pilot project in Bangladesh that would promote and develop local business.

The taskforce would see businesses in developed countries like Canada collaborate with and mentor those in developing countries. These kinds of partnership would help promote the growth of small and medium businesses while increasing access to market information, technology, and financing in developing countries, Martin said.

“We need to make transactions between (businesses in developed and in developing countries) more feasible by reducing the overall risks and costs that often serve as impediments to investment and action,” the prime minister noted.

Prime Minister Martin also announced the creation of the Local Enterprise Investment Centre, a pilot project that will be set up in Dhaka, Bangladesh.

The Centre will offer experience in financing, leasing, guarantees, equity investment and other services. The point is to make local small and medium enterprises effective investment partners while positioning them for future growth.

It will also prepare them to work with larger domestic or multinational companies.

“We will examine whether the Local Enterprise Investment Centre can be used as a model for other countries which Canada has identified as priorities for development assistance,” said Martin.

Martin, who co-chaired the commission with former Mexican President Ernesto Zedillo, said the report outlines new ideas, best practices, and innovative approaches to international development.

Other findings of the report include:

• the need for context-specific development
  
  
• the need for strong governance
  
  
• the need to support knowledge and skills acquisition in developing countries
  
  
• the fact that multinational corporations with branches in developing countries can play an important role by mentoring and training