Dr. Nathalie MILBACH-BOUCHE, UNDP Amman Hub Regional conference: Investment and inclusive growth in the midst of crisis, 11 May 2016, Beirut

1. Dr. Nathalie MILBACH-BOUCHE
Regional Team Leader,
Inclusive Growth and Sustainable Development, Arab States,
& Sub
UNDP Amman Hub
How can the private sector better contribute to stabilizing the Middle
East and North Africa?: issues and solutions.
Private sector engagement & development in fragile environments
Insights on the Resilience Response to Syria protracted crisis

2. SYRIA
People in need of
humanitarian
assistance
13.5 Million (end
2015)
3.8 million men,
3.7 million women
6 million children
Poverty
Over 80 %
Unemployment Over 50%
The Resilience Challenge: some key facts & figures

3. 21.8%
13.4%
5.1%
57.2%
2.5%
LEBANO
N
JORDAN
Estimated Number of
Syrians
6 160 000
Registered Syrian refugees: 4 837 185 (April 2016)
972 012 Asylum applications to
Europe (April 2011, Feb. 2016)
Lebanon: 70% of Syrian households below
the PL
Jordan: 86% of refugees below the PL
 Impoverishment of Refugee and Host
communities
 Housing shortages and rent
increases,
 Increased food prices,
 Competition at the lower end of
labor markets; depressed wages
 High strains on services and
infrastructure
 Environmental degradation
 Social tensions, radicalization risks
High youth unemployment:
-30% in Jordan and Lebanon
The Resilience Challenge: some key facts & figures
http://data.unhcr.org/syrianrefugees/country.php?id=107

4. http://www.wvi.org/sites/default/files/The%20Cost%20of%20Conflict%20for%20Children%20report%20-
%20online%20version.pdf
Average difference in
per capita GDP growth
(with and without
conflict)
Change in real GDP
per capita (US dollars)
Absolute
(cummulative) GDP
loss (Billions of US
dollars)
Source:The Cost of Conflict f ii or Children | March 2016 Frontier Economics analysis of World Bank, UNHCR and
Total Economy Database data
 Forgone Economic Growth
Syria Jordan Lebanon
Public Debt %
of GDP
147 (2015) 90 (2015) 138 (2015) Shrinking Fiscal Space
The Resilience Challenge: some key facts & figures

5. Fostering Resilience and Stability
Towards a scaled-up, inclusive, effective and sustainable response
HUMANITARIAN
RESPONSE
DEVELOPMENT
RESPONSE
HUMANITARIAN
REPSONSE
DEVELOPMENT
RESPONSE
NEW AID
ARCHITECTURE
Multi-Year, Integrated
Planning & Funding
New financing sources &
mechanisms
New Blend of
Partnerships
LONG TERM
VISION
REFUGEE
IMMEDIATE
NEEDS
HOST
COUNTRY&
COMMUNITY
NEEDS
REFUGEE AND HOST
COUNTRY &
COMMUNITY
IMMEDIATE AND
LONGER TERM
NEEDS
BREAKING SILOS
TURNING THE CRISIS INTO OPPORTUNITIES
FOR INCLUSIVE & SUSTAINABLE
DEVELOPMENT

6. Towards a Scaled-up, Inclusive, Effective & Sustainable Response
5 CORES
PRINCIPLESReinforce, don’t replace,
local capacities
Generate new and inclusive partnerships to build resilience, foster innovation,
and promote relevance, effectiveness, and efficiency
Safeguard social
cohesion to foster
resilience and
cooperation
Prioritize the dignity and
self-sufficiency of affected
populations
Increase synergies between
humanitarian and
development investments
and approaches

7.  Host countries’ commitment to allow refugees access to labor markets
and economic opportunities;
 International support: access to external markets, concessional financing
and job creation
 (up to 1.1 million by 2018)
 Access to quality education for 1.7 million refugee and vulnerable
children in host communities by end of 2016/2017 school year
 Access to learning for 2.1 million out-of school children inside
Syria
 Over USD 11 billion MULTI-YEAR pledge:
USD5.9 billion for 2016 and a further USD
5.4 billion for 2017-2020
 NEW MEANS OF FINANCING: Around USD
40 billion in loans of which some on
concessional terms.
From Principles to Action: London new transformational compact
PRIVATE SECTOR ENGAGEMENT &
DEVELOPMENT IS PARAMOUNT
Strengthened resilience through
scaled up economic opportunities
and jobs as well education
opportunities
FOR ALL (Refugee & Vulnerable
host populations)
Increased funding to meet
both immediate needs and
mid-term humanitarian,
resilience and development
needs

8. Harnessing Private Sector contributions incl. finance, skills, knowledge,
technology & innovation, market opportunities for local products
Forstering Private Sector Engagement & Development
for Job-led Resilience & Stability
Creating Enabling Environments, Seizing Opportunities

9. PUBLIC-PRIVATE SECTOR DIALOGUE & COORDINATION
SPECIAL ECONOMIC ZONES
IMPROVED POLICY, LEGAL & REGULATORY ENVIRONMENTS
SOCIAL PUBLIC-PRIVATE
PARTNERSHIPS
INCLUSIVE BUSINESS
MSME DEVELOPMENT
Bridging Funding & Capacity Gaps in Service &
Infrastructure delivery. Restoring Confidence.
Stimulating the Economy
Improving MSME access to information, financing,
markets, business skills, and inputs
MARKET DRIVEN SKILL
DEVELOPMENT FOR EMPLOYABILITY
Local procurement,
Linkages between foreign investment and local
economies
Attracting FDI (including Syrian investments), to
advance high-value economies (e.g
manufacturing), increase employment, (refugees
& hosts)..
ENABLING
ENVIRONMENTS
Forstering Private Sector Engagement & Development
for Job-led Resilience & Stability

10. Agency Requirements 2015 2016
Total, USD Billion 4.533 4,552
Resilience & Stabilization, USD Billion 1.28 1,73 + 35,2%
Resilience & Stabilization, share of total
requirements 28% 38%
RESILIENCE &
STABILIZATION
Private Sector Engagement in Syria Integrated Crisis Response Framework
Syria HRP: “ Capitalizing on Syrian resources, reviving local
economies, engaging with the private sector, and relying on Syrian
knowledge will be integral to the successful implementation of
these programmes”
Jordan JRP: private sector engagement cuts across the
response in shelter, food security and livelihoods, local
governance and municipal service - transport (PPPs),
health, energy and WASH
Lebanon LCRP:
supports
economic reform
to stimulate
private sector,
improve
regulation ..

11. FOSTERING PRIVATE SECTOR ENGAGEMENT AND DEVELOPMENT FOR RESILIENCE & STABILITY
A CORNERSTONE OF UNDP LIVELIHOODS RESPONSE
Jordan:
3x6
Demand-Driven Vocational Training and Employment Creation
Venture Capital for Microbusiness Development
Value-chain (incl. green VC) development (dairy products, waste management)
Syria:
 Local Procurement for the delivery of humanitarian assistance;
Local Market & Business, Value Chain revival
 Market-relevant vocational training, apprenticeship and on-the-job
training
Lebanon:
 Vocational training and internship placements for the youth
 Capacity building & institutional support to MSME ecosystems
 Capacity Development support for MSMEs & Cooperatives & Start-up support
 Inclusive Finance
 Value Chain Development
INCLUSIVE BUSINESS & MSME
DEVELOPMENT
MARKET DRIVEN SKILL DEVELOPMENT FOR
EMPLOYABILITY
FOCUS ON YOUTH &
WOMEN
Iraq (KRI): Vocational and business skills training,
mentorship, BDS (business development services)
support and job placement facilitation

12. NEED FOR INFORMED PSE/PSD STRATEGIES, TAILORED TO COUNTRY NEEDS AND CONTEXTS
SCALING UP PRIVATE SECTOR ENGAGEMENT AND DEVELOPMENT FOR JOB-LED RESILIENCE & STABILITY
MOVING FORWARD
 Labor - Skill Match/Gap Assessment
 MSME resilience, growth potentials, business environments ?
 Constraints facing export-oriented businesses? Constraints facing start-ups?
 How to engage private businesses already operating in Syria and neighboring countries as well as to attract the foreign
investments (in particular from Europe)?
 Actual/potential involvement of the Syrian workforce and Syrian businesses in host countries/communities?
 Potential for concessional financing in mobilizing investment by existing/new businesses?
 PSE Mapping and Platforms
 Employment Opportunity Assessment (WFP-UNDP)
SUPPORTED BY REGIONAL FACILITATION TO PROMOTE SHARED VISION, SYNERGIES, LEARNING AND
SCALABILITY

13. THANK YOU