JIU/REP/99/6

PRIVATE SECTOR INVOLVEMENT

AND COOPERATION WITH

THE UNITED NATIONS SYSTEM

Prepared by

Francesco MezzalamaLouis Dominique Ouedraogo

Joint Inspection Unit

Geneva1999

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CONTENTS

Paragraphs Page

Acronyms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iii

OBJECTIVE, CONCLUSIONS AND RECOMMENDATIONS . . . . . . iv

I. INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 - 8 1

II. A PROMISING RAPPROCHEMENT SOMEWHATHINDERED BY MISUNDERSTANDINGS . . . . . . . . . . . . . . . . . 9 - 30 3

A. Old foundations for a new relationship . . . . . . . . . . . . . . . . . . 9 - 21 3

B. Understanding the nature, purpose and limits ofthe partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 - 30 5

III. A REWARDING BUT COMPLEX RELATIONSHIP . . . . . . . . 31 - 85 8

A. Strong and diverse links . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 - 56 8

B. Difficulties incurred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 - 77 13

C. Developing effective tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 - 85 17

ANNEX I - Comparative table of guidelines for relationswith the private sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

ANNEX II - List of existing focal points/dedicated units set upby agencies, funds and programmes to deal with the private sector . . 21

ANNEX III - Extracts from General Assembly Resolution 92 (I)of 7 December 1946, “Official Seal and Emblem of the United Nations” 22

ANNEX IV - Staff Rule 101.6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

NOTES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

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ACRONYMS

ACC Administrative Committee on Coordination

ECE Economic Commission for Europe

FAO Food and Agriculture Organization of the United Nations

IAEA International Atomic Energy Agency

ILO International Labour Organization

IMO International Maritime Organization

ITC International Trade Centre UNCTAD/WTO

ITU International Telecommunication Union

OLA Office of Legal Affairs (United Nations)

UN United Nations

UNAIDS Joint United Nations Programme on HIV/AIDS

UNCTAD United Nations Conference on Trade and Development

UNDP United Nations Development Programme

UNEP United Nations Environment Programme

UNESCO United Nations Educational, Scientific and Cultural Organization

UNFPA United Nations Population Fund

UNHCR United Nations High Commissioner for Refugees

UNICEF United Nations Children’s Fund

UNIDO United Nations Industrial Development Organization

UNOG United Nations Office at Geneva

UNOPS United Nations Office for Project Services

UNOV United Nations Office at Vienna

UNU United Nations University

UPU Universal Postal Union

WFP World Food Programme

WHO World Health Organization

WIPO World Intellectual Property Organization

WMO World Meteorological Organization

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EXECUTIVE SUMMARY : OBJECTIVE, CONCLUSIONS AND RECOMMENDATIONS

Objective : To analyse the lines along which a new partnership between the United Nations system and the private sector can be developed and how the existence of areas of mutual interests and benefits can translate concretely into actions to promote better understanding, so as to better serve the goals of the Organization as a whole.

CONCLUSIONS

A. A fast-evolving environment and changingcircumstances have led to an increasingly manifestinterest on the part of the United Nations systemand the private sector in each other and to theirdeclared willingness to cooperate more and better.This willingness is based on: - the recognition by the business community of thesignificant contribution made by the Organizationas a whole to the establishment of a favourableenvironment for the activities of the private sector;- a thorough understanding and acceptance by theUnited Nations and all its Member States of the roleof the private sector as an active and essentialpartner in supporting economic growth andsustainable development.

B. Despite this professed rapprochement,however, the objectives and nature of thepartnership envisaged need to be further clarified inthe United Nations system itself, among MemberStates and among other constituencies, as well as inthe business community. The report, therefore,draws a number of recommendations andsuggestions to help clarify these objectives and toenhance mutual understanding and communicationswith the private sector. C. The report also shows that the privatesector is actually already actively engaged in manyUnited Nations activities, whether they areoperational or related to the formulation of policy.It describes how United Nations agencies, fundsand programmes are trying to maximize the benefitsto be drawn from this engagement while protectingthemselves from the risks inherent to it.

D. These precautions, however, are not takenuniformly throughout the system and a number ofinconsistencies in their nature and the way that theyare applied could undermine the image, credibility,integrity and legal immunity of the United Nationssystem. While the specificity of each agency, fundand programme may not allow for the establishmentof system-wide guidelines in this field, theInspectors believe that an increased exchange ofinformation and harmonization of procedures isrequired.

RECOMMENDATIONS

Recommendation 1: The participatingorganizations should set realistic objectives andexpectations for their partnership with theprivate sector. These objectives andexpectations should be clearly enunciated andpublicized, possibly through the adoption of astrategic document on this issue to be preparedby respective Secretariats and endorsed bygoverning bodies (See Chapter II, paras 22, 23and 25).

Recommendation 2: The Secretariats of theparticipating organizations should : (a) carry outoutreach programmes targeting the privatesector; (b) each designate a focal point, or atleast identify easily accessible units, to serve theneeds for information and assistance of thebusiness community (See Chapter II, paras 26,27 and 28).

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Recommendation 3: Participating organizationsshould: (a) ensure the presence of UnitedNations representatives at relevant businessevents and organize joint encounters; (b)encourage as wide as possible a participationfrom the private sector in their relevantactivities, with special attention to enterprises(and their associations) based in developingcountries and/or countries in transition (SeeChapter II, para. 28 ).

Recommendation 4: The working groupestablished by the Secretary-General’s SeniorManagement Group should proceed withdrafting guidelines on relations with the privatesector and ensure that these guidelines arepromptly disseminated throughout theSecretariat, as well as the Funds andProgrammes. These guidelines should draw onthe important work that has been undertaken bysome Funds and Programmes (See Chapter III,para. 85).

Recommendation 5: United Nations agenciesthat have not yet done so should also adopt a setof guidelines, taking into consideration the workcarried out by the working group mentioned inrecommendation 4. These guidelines shouldinclude a statement of principles as well as adescription of procedures to be followed fordealings with the private sector (See Chapter III,paras 63-72 and 79-82).

Recommendation 6: The United Nations shouldconsider ways of ensuring the implementation ofStaff Rule 101.6, including the feasibility ofextending rules for financial disclosures (SeeChapter III, para. 73, 74 and 81). Otherparticipating organizations should also examinewhether their respective staff rules andregulations are sufficient to guarantee that staffmembers do not hold a financial interest incommercial enterprises with which apartnership is envisaged.

Recommendation 7: Concerned offices in allparticipating organizations should speed upinternal processes and establish specific time-frames, within the framework of existing rulesand regulations, to ensure that bureaucraticprocedures and lengthy time of response do notdiscourage initiatives from the private sector(See Chapter III, paras. 76-78 and 80) .

Recommendation 8: Suitable mechanisms forthe sharing of information and best practiceswith regard to relations with the private sectorshould be established, using the ACC structureas appropriate, to ensure consistency of policyand harmonization of relevant proceduresthroughout the United Nations system (SeeChapter III, paras 65, 70 and 84-87).

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I. INTRODUCTION

1. Over the past decade, in response to thefast and momentous changes in the political,economic, financial, technological and legalparameters of its environment, the United Nationssystem has undergone a number of deeptransformations, notably in the way that it relates toa private sector which is itself evolving rapidly. Ina global and increasingly market-oriented economy,private capital flows vastly outnumber public fundsfor development and the private sector holds thelargest financial, technological and managerialresources. In recognition of this fact, and at a timewhen the organizations of the System must fightstrenuously to maintain the level of their ownresources, many of these organizations are clearlyattempting to woo the business community intoforging closer links with them. Thus,representatives of the business world were invitedto attend and provide inputs into the debates of theglobal conferences of the 1990s, which shaped theagenda of the United Nations for the decades tocome. As it has become more widely accepted thatthere cannot be real peace without development andno meaningful development without peace, thepotential for the goals of the United Nations,promoting peace and development, and the goals ofbusiness, creating wealth and prosperity, to be“mutually supportive” has also become moreevident.1 The General Assembly thus recognizedthat “increasing prosperity , a major goal of thedevelopment process, is contributed primarily bythe activities of business and industry”.2

2. At the same time, efforts have been madeto remedy the lack of understanding or awarenessprevailing in business circles as to the importantimpact of United Nations system decisions andactions (in particular those of specialized agencies)on facilitating international trade and investment.These efforts should secure the respect by thebusiness community of the principles inspiring thework of the United Nations and increase itsunderstanding of how beneficial the activities of theOrganization as a whole are to its transactions interms of promoting an environment favourable toeconomic growth and the rule of law. TheSecretary-General himself has taken a very activeand public role in establishing a dialogue withbusiness leaders through a series of meetings andpronouncements, prominent among them his appealmade at the World Economic Forum in Davos in

January 1999 for the private sector to embrace a“Global Compact” of shared values and principles.3

3. Most representatives of agencies, fundsand programmes met by the Inspectors in the courseof the preparation of this report asserted that theyconcurred with this vision and were keen onstrengthening their links with the private sector, andthat they had already initiated a number of actionsin this regard. Many also reported, however, that inso doing they often lacked a clear sense ofdirection, advice to guide them into what theyperceived to be a rewarding but difficult andcomplex relationship, and information on others’practices and experiences in this field. Theseconcerns bolstered the view held by the JointInspection Unit that a review of the private sector’sinvolvement and cooperation with the UnitedNations system, which would draw an overallpicture of these new relationships, would be notonly timely and useful but also necessary. Theydecided, therefore, to include this study, originallyproposed by FAO, in their work programme for1999.

4. A certain degree of confusion exists in theUnited Nations system, as to what exactlyconstitutes “the private sector”, many differentinterpretations being given to the phrase. Officialsin certain of the agencies, funds and programmesdefined the private sector as the sum of all non-public entities, including non-governmentalorganizations (NGOs) and academia. Others gaveit a considerably more restrictive connotationlimited to profit-making enterprises. It is necessaryto clarify, therefore, that for the purpose of thisreport, the Joint Inspection Unit understands theprivate sector to mean members of the businesscommunity (from small and medium-sizedenterprises to major multinational corporations andincluding the informal sector) and theirrepresentatives (who may act through not-for profitassociations or organizations such as Chambers ofCommerce or philanthropic Foundations). Theprivate sector will be considered, therefore, as onlyone of the components of civil society; the latterencompassing many other entities with which theUnited Nations has already established very stronglinks. These links, such as the ones with NGOs,differ widely in their objectives and modusoperandi from the relationship studied below and

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have been the object of separate reports by the JointInspection Unit.4

5. In this context, the report examines thepractices existing in the various components of theUnited Nations system for cooperating with theprivate sector thus defined, the rules or guidelineswhich regulate this cooperation, as well as theinitiatives that have been taken, or are envisaged,in response to the calls made by Secretary-Generalto take into account the new economic and financialrealities of our day and actively engage the privatesector. It does not, however, dwell at length on thetransactions by which the United Nations procuresgoods and services from enterprises andindividuals. These relations, as important as theyare to the effective functioning of the System andthough they involve significant amounts of funds,as mentioned below, are of a predominantlycommercial nature and have also been the object ofmany reports and regulations5. In most cases, theycannot be described as a “partnership” in the senseof the collaborative relationship outlined by theSecretary-General.

6. Throughout this process, the Inspectorshave kept in mind that the ultimate purpose of sucha partnership should not be to promote links withthe business community for their own sake or tofollow some fashionable trend, but to better servethe goals of the Organization as a whole.

7. It should also be stressed that due tooperational and financial constraints, the Inspectorswere not able to meet representatives of allorganizations of the System.

8. The Inspectors wish to extend theirappreciation to all those who assisted them in thepreparation of this report.

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II. A PROMISING RAPPROCHEMENT SOMEWHAT HINDERED BY MISUNDERSTANDINGS

A. Old foundations for a new relationship

9. For all of the recent attention brought bya number of events and pronouncements to the issueof the United Nations relations with the privatesector, these associations are not entirely new.

10. It should not be forgotten, in particular,that the United Nations and the private sector havealways had extensive commercial links through theprocurement activities of the former. While thereport does not deal specifically with this type ofrelation, as stated above, it should be recalled thatthey involve transactions of a significant amountand have helped build bridges between the businesscommunity and many United Nations entities. Someof these entities are, by the nature of theirmandates, particularly experienced in this field. TheWorld Food Programme’s (WFP) procurement ofgoods and services traditionally accounts for about25 per cent of total United Nations purchases,making the Programme the largest procurementorganization of the United Nations system6. TheUnited Nations Office for Project Services(UNOPS), whose services include the procurementof essential goods, equipment and commodities, isalso involved in numerous transactions with privatesuppliers. Overall, according to some estimates, theUnited Nations represents an annual market of US$3 billion for suppliers of virtually all types of goodsand services. Some also point out that the UnitedNations market provides a springboard for acompany to introduce its goods and services toother countries and regions, and estimate the valueof business opportunities emanating from theUnited Nations system and the Development Banksas approaching US$ 30 billion annually.7

11. The private sector has also longparticipated, directly or indirectly, in the normativeand standard-setting work of the United Nations.The Econonic Commission for Europe (ECE) pointsthat, of all its activities, its standard-setting workhas always been the most important for the businesscommunity. Representatives of the private sectorhave often participated, as observers or as membersof a national delegation in which they are advisersand exceptionally heads, in official meetings andcontributed to the elaboration of conventions and

norms which they then have to apply.8 Inparticular, the business community has always beenclosely involved in ECE’s work for thestandardization of external trade documents, whichled to the development of UN/EDIFACT, theUnited Nations rules for Electronic DataInterchange for Administrative, Commerce andTransport, work which started nearly thirty yearsago. Similarly, UNCTAD relies on the inputs ofthe private sector for its work in the field ofinternational standards of accounting and reporting,while the oil, chemical and shipping industriescontribute significantly to the regulatory work ofthe International Maritime Organization’s (IMO)committees, sub-committees and working groups inthe field of maritime safety and marine environmentprotection. The Food and Agriculture Organization(FAO) states that it has had a long history ofcooperation with the private sector in regulatoryand normative programs such as the CodexAlimentarius. The World Intellectual PropertyOrganization (WIPO), for its part, has workedclosely with representatives of the private sector forover a century, in developing international normsfor intellectual property.

12. Furthermore, enterprises in developingcountries, in particular Small and Medium-sizedEnterprises (SMEs), have been the main “clients”or beneficiaries of a number of United Nationsprogrammes in the field of technical cooperation.The International Trade Centre (ITC) for instance,works with developing countries and economies intransition to set up effective trade promotionprogrammes for expanding their exports andimproving their import operations. In so doing, itoffers assistance not only to public institutions suchas national trade information services, but alsodirectly to the business community. This assistancemay take the form of advice on productdevelopment and international marketing forcommodities or services, or training of managers inimporting and exporting techniques. In fact, theITC described private SMEs as the main target ofits action, noting that governments were only“intermediary clients”. ITC also works with tradesupport institutions, in both the public and privatesectors, to ensure multiplier effects and build localcapacities. Likewise, UNCTAD, of which ITC is

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a subsidiary organ9, provides direct and indirectservices to the business community in developingcountries, including to micro-enterprises in theleast-developed countries. SMEs also benefitdirectly from EMPRETEC (Entrepreneurship andSmall and Medium-sized Enterprises), a programmespecifically designed to help entrepreneurs start,grow and internationalize their business ventures.UNCTAD estimates that since 1988, 10,000entrepreneurs in 12 countries of Africa and LatinAmerica have benefitted from assistance providedthrough EMPRETEC’s Business Support Centreswhich provide access to training, networking andmanagement consultancy services for SMEs.

13. Due to its unique tripartite character, theInternational Labour Organization (ILO) has alwaysbeen particularly attentive to the needs of theprivate sector, which participates fully in thedecisions of its Governing Body throughemployers’ organizations. Most of theOrganization’s departments and, in particular, theBureau for Employers Activities and the Enterpriseand Cooperative Development Department, runtechnical cooperation programmes benefittingprivate enterprises. The ILO estimates, forinstance, that it has helped 100,000 entrepreneursthrough its Start and Improve Your BusinessProgramme, a training package used in more than70 countries. Its programme of assistance toemployers, which covers such areas as industrialrelations, human resources development andmanagement development, strengthens the capacityof employers’ organizations to respond to the needsof enterprises. Other programmes targeting privateenterprises include the International Programme forthe Elimination of Child Labour (IPEC) and theWork Improvement in Small Enterprises (WISE)Programme.

14. Over the years, and due to the very natureof the mandate of the United Nations IndustrialDevelopment Organization (UNIDO) as thespecialized agency for industrial development,private sector development has become theobjective of most of the agency’s technicalcooperation in developing countries. A specialdedicated branch for private sector developmentwas established which concentrates on creating anenabling framework and strengthening institutionalcapacities to render effective advisory andnetworking services to SMEs. UNIDO estimatesthat some 22,000 SMEs have already been assisted

through services rendered by the Branch.Furthermore, UNIDO works with developingcountries and countries in transition to set upeffective information networks that are designed toprovide easy access for SMEs to all types ofinformation and knowledge required to make theirbusiness succeed and grow. UNIDO also assistsSMEs in developing countries in their efforts tophase-out the consumption of ozone depletingsubstances. The agency has already mobilized US$144 million for investment projects directed mainlyto helping private enterprises convert theirproduction lines to non-Ozone depleting substances.

15. The United Nations DevelopmentProgramme (UNDP) also offers a range of servicesto the private sector, through such programmes asUNISTAR (United Nations International ShortTerm Advisory Resources) whose clients includessmall and medium-sized enterprises, manufacturers’associations and chambers of commerce.UNISTAR, which has access to a broad range ofbusiness and technical skills, arranges short-termmissions abroad by leading international expertsand managers, who can help solve many of theproblems which hinder enterprises anywhere.

16. The relationship with the private sector,therefore, is not new. However, a fundamental shiftin the way that the United Nations approaches theprivate sector, and perhaps in the way that theprivate sector sees the United Nations, has occurredin recent years. Symptomatically, UNOPS recentlyannounced that an international conference onpartnerships between the private sector and theUnited Nations, the first of its kind, would runparallel to “Aid & Trade”, a large exhibit of goodsand services offered by corporations to multilateralorganizations, to be held in the spring of 2000 inNew York. The stated objective of the conferenceis to “invite the private sector to move beyond acommercial relationship with the United Nationsand become a partner in reducing poverty,promoting environmentally sustainable growth andextending the benefits of globalization to thepoorest countries”10. The same message has beenconveyed in recent years to leaders of the privatesector by United Nations officials in countlesspeeches and high-level encounters.

17. The new willingness of the UnitedNations to embrace the private sector and cooperatewith business rather than confront it, is also

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illustrated by the language used in a number ofGeneral Assembly resolutions over the past fewyears. As early as 1993, for instance, the GeneralAssembly, recognizing the importance of theprivate sector for the efficient functioning ofeconomies in various stages of development,recalled “with satisfaction” the active collaborationbetween the United Nations system and private-sector associations, such as the InternationalChamber of Commerce, the Business Council forSustainable Development and the Chamber ofCommerce and Industry of the Group of 77.11

18. The strong leadership of the Secretary-General in this endeavour and his expressedconviction that the goals of the United Nations andthe private sector can be mutually supportive hasgiven additional momentum to a rapprochementmade necessary by changes in the globalenvironment. In his report on reforming the UnitedNations, issued in July 1997, a few months after hisassumption of the post, the Secretary-Generalemphasized the importance which he attached to theissue and pledged that arrangements would be madewith leading business organizations to facilitate thedialogue between representatives of business andthe United Nations.12 A few months later, inJanuary 1998, the Secretary-General delivered aspeech at the World Economic Forum in Davos,where he spoke of a “fundamental shift” which hadoccurred at the United Nations. The Organization,he said., now knew that peace and prosperity couldnot be achieved without partnerships involvinggovernments, international organizations, thebusiness community and other components of civilsociety. The Secretary-General added that whilethe United Nations and the private sector were “stillovercoming a legacy of suspicion”, they could“bridge these differences and turn what had beenfledging arrangements of cooperation into an evenstronger force”.13

19. This evolution in the way that the UnitedNations views the private sector and the role that itcan play in furthering the goals of the Organizationis mirrored by a shift in the way that the privatesector now perceives the United Nations system andits role in developing a “business-friendly”international environment. This new perceptionwas clearly formulated by the President of theInternational Chamber of Commerce who stated lastyear that :”As trade and markets become global, andmany problems can no longer be solved at a

national level, we need effective global decision-making and institutions; and we need a meaningfulinternational policy dialogue involving business.”14

Thus, there seems to be a growing realization inbusiness circles of the importance of adequateinstitutional frameworks to support the increasingeconomic interdependence among nations and anacceptance of the fact that a strong United Nationsis good for business.

20. Also symptomatic of this increasedawareness in the private sector are the initiativestaken by a number of business groupings thatpromote the notion of corporate responsibility, insuch fields as environment protection or socialdevelopment, to establish links with the UnitedNations system. The World Business Council forSustainable Development, for instance, a coalitionof 120 international companies formed in 1995 toprovide a unified and responsible response to thechallenges arising from the 1992 Earth Summit, hasbeen closely involved with the review process ofthe implementation of the decisions taken in Rio deJaneiro. The Prince of Wales Business Forum, inwhose Board some 50 Chief Executive Officers orsenior executives from leading internationalcompanies participate, is another example of anorganization promoting “socially responsiblebusiness practices” to help achieve sustainabledevelopment, and which has been keen to forgestrategic alliances with international agencies forthis purpose.

21. The new interest taken by the privatesector in the activities of the United Nations hasalso been spectacularly illustrated in recent timesby donations of unprecedented amounts fromFoundations directly linked to business leaders.The United Nations Foundation and its counterpartin the United Nations Secretariat, the UnitedNations Fund for International Partnerships(UNFIP) have created an innovative model forharnessing private donations in service ofmultilateral development and humanitarianassistance. This initiative has since been emulatedby others in the business community, and maysignal their renewed confidence in the uniqueability of the United Nations system to design andimplement assistance programmes in certain keyfields of human development.

B. Understanding the nature, purpose andlimits of the partnership

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22. The Inspectors believe it necessary torecall the view often expressed that significant andhelpful as fund-raising may be, it is not the primaryobjective of the partnership being developedbetween the United Nations and the private sector.They noted that a certain level of confusion persistsin the System itself as to whether the quest foradditional financial resources should be the leadingfactor in efforts made to build bridges between theOrganization and the business community. It hasbeen repeatedly clarified, nevertheless, that thepartnership sought should aim primarily atencouraging the corporate sector to espouse thevalues of the United Nations, at channellinginvestments towards least developed countriesand/or certain socio-economic sectors and atbuilding a strong new constituency for theOrganization as a whole. A number of importantstatements have been delivered by top UnitedNations officials explicitly denying that the UnitedNations was simply “after the private sector’smoney”. A recent address by the ExecutiveDirector of UNICEF was particularly clear in thisregard as she cautioned against adopting a “limitedand patronizing view” of what the private sector canbring to a relationship with the United Nations.15

23. The Secretary-General has also thought itnecessary to further elaborate on what he expectedfrom the private sector and delivered a highly-publicized speech on this theme, again at the WorldEconomic Forum, in January 1999. In his address,the Secretary-General challenged the businessleaders gathered in Davos to “embrace and enact”,both in their individual corporate practices and bysupporting appropriate public policies, a number ofagreed values and practices in the fields of humanrights, labour rights and the protection of theenvironment. He proposed that the private sectorand the United Nations initiate a “global compact”of shared values and principles, which would givea “human face” to the global market.16 Themessage seems to have been understood by thebusiness community without prejudice to a cleardistinction of roles and division of labour betweenthe private sector and the United Nations, bothsides accepting that they can, in their respectivespheres of activities and competencies, find ampleground for cooperation.17

24. Significantly, in some sectors, enterprisesseem to be willing to voluntarily abide by a number

of rules, even if those cannot be assumed to be orreferred to as “codes of conducts”. A veryinteresting example in this regard is that of UNEP’sFinancial Institutions Initiative, through whichUNEP has been working very closely withcommercial banks, investment firms and insurancecompanies to encourage the incorporation ofenvironmental concerns into their businesspriorities. Leading insurance companies andcommercial banks have thus pledged to integrateenvironmental factors into core business operationsby signing a UNEP brokered Statement18. UNEP isleading other initiatives of this type with sectorssuch as mining, oil, tour operators, advertising andtelecommunications, and has developed a series ofactivities (publications, workshops andconferences) aimed at promoting responsibleentrepreneurship in the private sector.

25. In order to dispel the remaining confusionand misunderstanding within the United Nationssystem as well as in the private sector as to thepurpose and nature of the proposed relationship, theheads of all United Nations entities who have notyet done so may want to examine the possibility ofclearly formulating and advertising theirexpectations for the relationship with the businesscommunity through the drawing of a strategicdocument on this subject. FAO, for instance, hasproduced a “Strategy for FAO/Private SectorPartnership to achieve Food Security”, with themain objectives reflected in the draft StrategicFramework now being reviewed by its governingbodies.

26. Efforts are also needed to disseminateinformation on the United Nations and the variousways in which it can work with the private sectorthrough key actors to be identified and throughcarefully targeted outreach programmes. It isimperative, in particular, that efforts continue tohighlight to the private sector all the benefits, directand indirect, that it draws from the work of theUnited Nations. The Inspectors have taken note ofthe United Nations Secretariat’s initiative todevelop a website specifically devoted to the issueand providing links with many relevant offices inthe United Nations system.19 They note, however,that some agencies have not, to this date, used thiswebsite to its fullest potential.

27. The Inspectors also believe that thedesignation of focal points by all United Nations

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agencies, funds and programmes would prove veryuseful, especially if they are staffed withappropriately trained officials. Efforts to providespecialized training, such as those undertaken bythe United Nations Staff College to develop a cadreof “partnership brokers”, are to be encouraged.20 In many cases, as shown in Annex II, offices havealready been designated to serve as an entry pointfor businesses interested in working with the UnitedNations or simply learning more about its activities,to design outreach programmes aimed at the privatesector, to ensure consistency in the organizations’policies and practices in its contacts with theprivate sector and/or to be the depository andguardian of any guidelines which may be adopted inthis field (see Chapter III). They have taken note ofthe concern expressed by a number of agencies thatcontacts with the business community should beinitiated and conducted at the level of individualprogrammes, but believe that the two need not bemutually exclusive.

28. Communication endeavours would alsohelp allay the concern among certain MemberStates as well as among other constituencies of theUnited Nations that the Organization only relates towealthy multinational corporations and businesscircles in developed countries. This may involveefforts to encourage the emergence or strengtheningof associations or business groupings in developingcountries or countries with economies in transitionas privileged interlocutors of the United Nations, aswell as efforts to facilitate the participation inUnited Nations forums for dialogue with the privatesector of small and medium-size enterprises fromthese countries.21 At the same time, there is also aneed to ensure that private sector representatives atUnited Nations events are practitioners with realhands-on experience rather than just representatives

of trade associations.

29. Efforts are also needed to bridge thedifferences between NGOs and the businesscommunity and convince the former that the UnitedNations does not view its cooperation with thevarious components of civil society as a zero-sumgame, where improved links with business wouldnecessarily result in a declining interaction with thenon-governmental community. It should be madeclear that the growing contacts between the UnitedNations system and the private sector are part of alarger effort to bring in all components of civilsociety into the work of the Organization, and inparticular into those programmes focusing ondevelopment. It should also be pointed out thatNGOs may also be helpful to the United Nations inassessing the value of cooperation with certaincorporations.

30. Finally, a recommitment by Member-States to developing, through multilateral channels,the normative, economic and technicalinfrastructure that allows business to operate andprosper at the international level, would also go along way towards overcoming the legacy ofsuspicion mentioned by the Secretary-General. TheGeneral Assembly recently emphasized theimportance of a supportive international economicenvironment, including investment and trade, forthe promotion of entrepreneurship andprivatization. The Assembly also recognized theimportant role of Governments in creating, at thenational level, an enabling environment supportiveof entrepreneurship and facilitative of privatization,in particular in establishing the judicial, executiveand legislative frameworks necessary for a market-based exchange of goods and services and for goodmanagement.22

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III. A REWARDING BUT COMPLEX RELATIONSHIP

A. Strong and diverse links

31. Recognizing the imperative of cooperationdescribed above, many agencies and programmeshave in fact steadily increased their operational andpolicy links to the private sector in recent years inthe following ways:

(a) Mobilizing resources for United Nationsprogrammes

32. The mobilization of resources from theprivate sector is one, although not the main,objective of the partnership being developed. Thefinancial difficulties encountered by the UnitedNations system over the last decade, linked to ageneral decrease in official development fundschannelled through multilateral organizations, haveled many agencies, funds and programmes to seekassistance, financial or in-kind, from other sourcesand from the private sector in particular. In somecases, as for UNHCR, this has been done at thespecific request of governing bodies. Although formany agencies, the amounts involved are still ratherlimited23, others have been quite successful in thisregard, and have collected important funds for theimplementation of specific programmes. A recentexample of such success was the announcement byWHO, last July, that a diamond mining and tradingcompany, would make a substantial donation tohelp fund National Immunization Days in Angolaand assist WHO in its polio eradication effort inthat country. As for UNICEF, it has already raisedover US$ 18 million through its “Change for Good”project, whereby major airlines collect and donateleftover foreign currency from passengers returninghome. The Economic Commission for Europeindicates for its part that while in the 1992-1993biennium the overall private sector contributions incash to its programmes amounted to some US$683,000, in 1996-1997, they had increased to someUS$ 1,500,000.24 Private sector contributions toUNIDO projects amounted to US$ 29 millionbetween 1994 and 1998.

33. Examples of in-kind donations alsoabound. Earlier this year, at the height of theKosovo refugee crisis, a leading computer softwarecorporation provided computer support to UNHCR(in the form of registration kits including laptop

computers, digital cameras, specialized ID cardprinters and other hardware and softwareapplications designed especially for the project) todevelop a registration system for refugees. WHOhas long cooperated with private companies in itsefforts to eradicate infectious diseases, a notableexample being that of its campaign launched in1988 to combat onchocerciasis (or river-blindness),which is based on the donation of drugs by apharmaceutical company over a long period of time.In-kind contributions also often take the form of theprovision of technical expertise, high-level advisoryservices and training, as in the case of Thailand’sBusiness Coalition for AIDS, through which some126 enterprises provide assistance to UNFPAinitiatives in the field of AIDS prevention.25 Inanother example, UNIDO and one of the world’sleaders in salt technology passed an agreement in1999 to assist the salt industry in a developingcountry in its programme to eliminate iodinedeficiency disorders.

34. The private sector is sometimes calledupon to provide expertise even more directlythrough the secondment of staff to United Nationsoffices, a practice which is still, however, ratheruncommon and disputed because of its manypractical and ethical difficulties. WHO informedthe authors of the report that a privatepharmaceutical company had seconded a staffmember to the agency’s Tobacco Free Initiative.The ECE states for its part that it uses a number ofstaff on loan from the private sector, who do notexceed 3.5 per cent of the total number ofprofessionals in the Secretariat of the Commission,but are concentrated in a few of its units, dealingmostly with specific industrial sectors (steel,chemicals and gas).26 It notes, in a remark thatcertainly applies to most United Nations activities,that the presence of staff from the private sectorbrings to the Secretariat special skills and often amore practical approach to the issues addressed,adding that companies also benefit from thecontracts and a broader view of the problems oftheir sector obtained by their seconded staff. UNEPis also fully in favour of receiving seconded staff,and openly calls on the business sector to secondindustry personnel to work with it on specifictechnical issues and share practical expertise.27

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35. Nowhere in the United Nations system,however, has the process been developed to theextent that it has been in the World Bank, which hasa well-established Staff Exchange Program.Through this Program, the Bank and partnerinstitutions (typically large private companies)assign staff to each other for a period of two years,in the hope of developing long-lasting relationships,foster cultural exchanges and enhance theirrespective skills. However, because of the practicaland deontological problems cited above, not leastthe closeness of the practice to the controversial oneof gratis personnel, it seems rather doubtful that thisexperience can be expanded in the United Nationssystem. On the other hand, some enterprises couldbe called upon to host United Nations staff forlimited periods of time and provide them withtraining in fields relevant to their work.

36. In some instances, corporations havefinanced research and training programmes set upby United Nations entities, such as the UnitedNations University (UNU). Thus, the UNUprovides five fellows every year with individually-tailored research training in food biotechnology andpost-harvest food conservation techniques, withsupport obtained from a brewery company.

37. Public advocacy and awarenesscampaigns are other fields where the businesscommunity’s resources have been and continue tobe used by the United Nations. The private sector’sobvious advantage in terms of advertising andmarketing expertise can serve to raise the profile ofcertain operations or events or simply to increasepublic awareness of United Nations activities. Thefiftieth anniversary commemoration of the UnitedNations, to which major companies includinginternational airlines lent their advertisingresources, may have set a trend in this regard.UNHCR remarked that increased relations with theprivate sector, and through it with the “real world”of consumers and employees, would allow it toreach the general public very effectively. Similarly,UNESCO stressed that its influence on the “worldof culture” could be exercised not only throughpublic institutions but also by using the privatesector as a vehicle for its campaigns and ideas.

38. In certain fields where public advocacy isparticularly crucial, such as the fight againstHIV/AIDS, the United Nations has already gainedimportant allies in the corporate sector. UNAIDS

cooperates with a large television broadcastingcorporation specialized in musical programmes inits efforts to reach critical segments of the worldpopulation. The Executive Director of UNAIDSrecently pointed out that “reaching young people isa key element in the fight against the AIDSepidemic” and that the “creativity and energy of theprivate sector needs to be harnessed to reach thisimportant population worldwide”. The President ofthe television corporation added that “modernmarketing techniques used for selling goods andservices to the youth market are most effective inreaching out to youth concerning AIDS”.28

39. Another important means ofcommunication which the United Nations is usingto disseminate information and raise publicawareness is the Internet, where the dominance andtechnical superiority of the private sector is evenmore pronounced. In April 1999, UNDPannounced that it had teamed up with an Internetgiant to organize a global concert against extremepoverty, known as NetAid, which was broadcast inOctober via the Internet. In preparation for theevent, the corporation pledged its vast technicalresources to develop a global “Net Aid” websitethat would help mobilize public support forUNDP’s programmes. The website will alsoprovide Internet users with an easy way ofcontributing money or in-kind support to specificdevelopment projects.

(b) Joining forces in the implementation ofprojects

40. It would be impossible to draw anexhaustive list of the numerous projects undertakenjointly by United Nations agencies, funds andprogrammes with members of the private sector inthe last few years. The Inspectors consider ituseful, however, to provide here some examples ofthese projects, to illustrate the scope andimportance of operational activities in which theUnited Nations is now cooperating closely with thebusiness community. While addressing verydifferent issues and operating in many differentways, these projects are all characterized by thestrong technical expertise brought to them by theprivate sector and their practical, concreteobjectives.

41. In one example, a computermanufacturing giant signed an agreement with

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UNDP in 1996, announcing that they would worktogether to help developing countries receive a widerange of information technology, consulting andsupport services. In the framework of this project,the company not only donates a wide range ofcomputing equipment to the UNDP’s SustainableDevelopment Networking Programme (SDNP), butits technical personnel or business partners also actas advisers to SDNP staff to ensure that local usersin the developing countries are trained.29 The E7Network of Expertise for the Global Environment,comprised of eight of the world’s leading electricutilities, also collaborates with UNDP to providetechnical assistance to developing countries throughprojects aimed at promoting efficient generationand use of energy.

42. The oil and shipping industries are cooperatingwith IMO under the so-called “global initiative” toimplement the Oil Pollution Preparedness Responseand Cooperation Convention. Through theinitiative, IMO and the private sector jointlyorganize activities aimed at developing national andregional systems for preparedness and response tooil pollution. Another example is the UniversalPostal Union’s (UPU) cooperation with a privatetelecommunications company in establishingPOSTNet, the Universal Postal Union’s globalpostal telecommunications network. Most ofPOSTNet’s network facilities are supplied, operatedand supported by the company, on behalf of UPU,in the form of a virtual private network.

43. In 1998, UNIDO launched its PrivateSector Partnership Programme, which forgesmultisector partnerships between SMEs,government institutions, civil society institutions,and the international business community, toidentify the challenges and opportunities faced bySMEs and support them in improving theirperformance. In the first pilot case of theprogramme, a large car manufacturer, the Prince ofWales Business Forum, one of the leading businessschools in Europe and the Ministry of Industry ofIndia, have joined forces to assist SMEs in theIndian automotive component sector improve theirproductivity, quality, delivery time and profitability.

44. The outcome of the Partners forDevelopment Summit held by UNCTAD in 1998exemplifies the range of issues on whichcooperative projects between the United Nations

and private enterprises are now being agreed on.During the four-day meeting, 18 partnership“understandings” were finalized between theUNCTAD Secretariat and private and publicorganizations. They covered the fields ofinternational transport, investment promotion,electronic commerce, the promotion of small andmedium-sized enterprises , agr iculturalcommodities, the conservation of biodiversity andsustainable development. In one such“understanding”, a Brazilian Bank focusing inparticular on environmental concerns, undertook towork with UNCTAD on the promotion andexecution of biodiversity-related business and onfund-raising for the sustainable use of biologicalresources in the countries sharing the Amazonregion.30 The General Assembly welcomed effortsby the Secretary-General of UNCTAD to build alasting partnership for development with non-governmental actors, and referred in particular tothe “Partners for Development” initiative.31

Business also works directly with the UNCTADSecretariat to advance the goals of the KyotoProtocol on Climate Change, through thedevelopment of greenhouse gas emissions tradingschemes, in the International Emissions TradingAssociation.

45. Similarly, two meetings between businessleaders and high-level United Nations officials heldat the United Nations Staff College in Turin in1998, and organized by the ILO in cooperation withthe Prince of Wales Business Leaders Forum, led tothe adoption by participants of some 20 projects.These projects include collaboration in areas asdiverse as water development, human rights, low-cost housing, health promotion or managementtraining. The Inspectors have been informed,however, that none of these agreements have yetbeen translated into concrete actions, which leadsthem to remark, in a cautionary note, that actuallyimplementing joint projects with the private sectormay be much more complex than contemplated atthe design stage. 46. Other activities associating closely theprivate sector include the Economic Commissionfor Europe BOT (BOT) Advisory Group,established in 1996. The Group’s primary objectiveis to advise Governments on how to attractinvestment in infrastructure, such as toll roads,railways, ports, tele-communications, power plantsand water treatment To this end, the Group

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disseminates information and provides advice on anew type of project finance called Build, Operateand Transfer (BOT). It involves the world’sleading enterprises involved in infrastructureconstruction and financing. The Group bringstogether western and eastern European companiesand Governments to work together on concreteprojects, thus creating a network based on public-private partnership principles.32

(c) Encouraging private investments incritical development areas

47. During the preparatory phase of thisreport, one of the main reasons cited by UnitedNations organizations for increasing their contactswith the private sector is the urgent need to channelprivate investments towards a number of areascrucial to development or towards countries whichhave not so far benefitted from the enormous flowsof private capital33 and the boom in global privatefinance which has resulted from fundamentalchanges in financial markets and institutions. Manybelieve that the United Nations can play the role ofan “honest broker” between, on one side thecorporate sector and the international financialcommunity and, on the other side the poor. Amongthem, FAO considers that “its leadership andcredibility in food security will be enhanced as itdemonstrates overtime that it has brokeredincreased private investment”.34 Thus, manyinitiatives aimed at building linkages between theglobal business community and the emergingprivate sector in developing countries or countriesin transition have been launched in recent years. 48. UNDP has been particularly active andengaged in such initiatives at the micro level.Among the best-known is the “Money MattersInitiative”, a public-private sector partnership ofleading private investors, which conducts researchon financial innovation to enhance the use ofprivate capital for development and seeks, forinstance, to link global pension funds and mutualfunds with the world’s as yet-to-emerge markets.UNDP is also involved in efforts to match thefinancial needs of entrepreneurs in developingcountries with the great lending capacity offinancial institutions in the industrialized world. Ithas explored innovative mechanisms (such as theMicroStart Programme) to promote micro-financeand has enlisted the support of major financial firmsfor this purpose. Calling micro-finance the “next

emerging market”, UNCTAD has also undertakenin the last few years a number of actions to buildpartnerships of mutual interest between leaders inthe mainstream financial sector and the micro-finance industry. It has spurred, for instance, thecreation by a large international Bank of a privatefund investing part of its portfolio in micro-banks indeveloping countries.35

49. Other actions are being undertaken todirect investments towards potentially rewardingbut often ignored markets. In 1995, UNCTADorganized, with UNDP and UNIDO, anInternational Conference on privatization inUzbekistan designed to familiarize the internationalbusiness community with Uzbekistan’sprivatization programme and to provide investorswith information on Uzbekistan’s specificinvestment opportunities. The Conference, whichwas the first one organized by UNCTAD targetingspecifically the international business community,brought together government representatives, some2000 international business executives andrepresentatives of business organizations such asthe ICC, leading to the signature of some 18business “understandings”. UNCTAD has alsorecently launched a joint project with theInternational Chamber of Commerce designed tohelp least developed countries become moreattractive to foreign direct investors. The projectinvolves the preparation of investment guides tocountries in Africa and South Asia, the first ofwhich was an investment guide to Ethiopiaprepared by a leading management consultingfirm.36

50. Through its Global Initiative launched in1997, UNFPA is also exploring its role as an“honest broker” between the business community,governments and those sectors of the populationthat are most in need of assistance. This initiativeis developing model approaches to involve the for-profit sector (as well as NGOs) in makingaffordable commercial products and services in thefield of reproductive health more accessible to usersin developing countries.

(d) Bringing the private sector into policyformulation

51. Increasingly, the involvement of theprivate sector into United Nations activities occursnot only at the operational level but also “upstream”

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at the policy level. Representatives of employers’organizations have, of course, always fullyparticipated in ILO’s policy-making machinery.More recently, the private sector has also become afully-fledged participant in the internationaldecision-making process in technical or scientificfields, such as telecommunications, while in otherssuch as the environment, meteorological services orintellectual property, it is brought into consultationsat an early stage. 52. The Earth Summit marked a turning pointin this regard. Business and Industry wereidentified in Agenda 21 as one the “Major Groups”whose participation should be sought by the UnitedNations in setting strategies and policies forsustainable development. The Commission forSustainable Development clearly intends to positionitself as a leader among inter-governmental bodiesfor being open, transparent and accessible to allMajor Groups. It has indeed experimented withnew forms of participation such as the Multi-Stakeholder Dialogue Segments during its sessions,which have allowed the Major Groups, businessamong them, to contribute to some extent to thedecisions taken by the Commission.

53. The General Assembly itself has begun toseek the advice and contribution of the businesscommunity in some of its economic and financialdeliberations. Thus, leaders of major corporationswere invited to participate last year in a PanelDiscussion held jointly by the Assembly’s SecondCommittee and UNCTAD on the impact of thefinancial crisis on trade, investment anddevelopment.37

54. The ITU’s membership includes 188Member States and over 570 “Sector Members”representing a wide range of organizations with aninterest in telecommunications, including all themajor players in service provision, equipmentmanufacturing, network and radiocommunicationinfrastructure design and development. The SectorMembers38, who have to contribute to the expensesof the Union, can genuinely influence a greatvariety of the Union’s activities, by participatingactively in the work of its Study Groups, workingparties or seminars, by presenting their views, eitherorally or in written form, at the preparatory stagesof decisions and throughout the process which leadsto the adoption of recommendations, resolutionsand other policy guidelines. They also have access

to all documentation and may be called upon tochair study or expert groups. Recognizing thegrowing role of the private sector in the field ofcommunications, the ITU has launched a worldcampaign to recruit more Sector Members andhopes to increase their numbers to 1000 by the year2002.

55. Others acknowledge the need to integratethe private sector further into their activities inorder to maintain their relevance in fieldsincreasingly influenced by private actors. The trendtowards alternative ways of providingmeteorological services, including their possibleprivatization, and the fact that in several countries,even the national Meteorological Services operatein whole or in part as corporations, have led WMO,for instance, to consider the feasibility anddesirability of instituting some form of affiliatemembership, with a fee, for the purely privatemeteorological and hydrological organizations inreturn for their participation in WMO’s technicalbodies of a non-policy making nature.39 TheCouncil of Administration of UPU, for its part,decided this year to invite for the first time asobservers to the Union’s Congress representativesof various stakeholder organizations in the postalsector, including associations of private postaloperators. These associations will now be able toexpress their views on various regulatory andcompetition issues that may affect their business.

56. By the nature of its mandate, WIPO has abi-polar orientation and serves the private sectoreconomy (intellectual property rights being in greatmajority owned by private companies) as well as itsMember States. Recognizing this specificity, aswell as the fact that some 84 per cent of its incomeis generated by fees paid by the private sectorthrough international registrations systems forpatents, trademarks and industrial designs, WIPOhas made it one of its declared priorities, in the lastfew years, to draw into its work the major users ofthe intellectual property system. Two new advisorybodies have been created (the Policy AdvisoryCommission and the Industrial AdvisoryCommission) with the specific participation of theprivate sector. WIPO described the IndustrialAdvisory Commission as the only example ofindustry-body ever constituted to provide formaladvice to a United Nations agency. TheCommission was asked not only to convey itsmembers’ expectations regarding WIPO’s activities

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but also to identify and debate key areas of work forthe future.

57. Top executives from forest productcompanies and industry associations worldwideparticipate in the FAO Advisory Committee onPaper and Wood Products which advises theOrganization on how best to assist developingcountries advance their forest industries. Otheragencies or programmes, while they have not set upsuch mechanisms to receive formal policy advicefrom the business community, have established thepractice of running informal consultative meetingswith working-level representatives of thoseindustrial, financial or commercial sectors moredirectly concerned with their activities, thusensuring that their knowledge, advice and concernsare taken into account in the formulation ofstrategies and policies presented to Member Statesfor approval.

B. Difficulties incurred :

58. Because of the weakness of the presentnormative situation in this field, a certain degree ofrisks and difficulties is associated with the variousrelationships described above, risks of which mostagencies are well aware but do not always knowhow to protect themselves. During the course of themeetings held by the Inspectors for this report, thefollowing problems were frequently mentioned:

(a) A weak normative framework

59. While the financial rules of each agencyor programme normally regulate the receipt ofcontributions from non-governmental sources, thereis an absence of regulations to govern the relationsof the United Nations with the private sector, othersthan regarding the use of the name and emblem ofthe Organization (see paragraphs below). Inparticular, the United Nations has not promulgateda specific regulation, rule or procedure to regulatethe manner in which private donors may beacknowledged, which has led the various entities ofthe System to adopt different, sometimes divergingpolicies and practices on this important point (seepart (c) of this Section).

60. Since December 1946, the use of theOrganization’s name and emblem has beengoverned by General Assembly resolution 92 (I)(the text of the relevant paragraphs of the resolution

appears in Annex III), which itself has given rise tovarying interpretations over the course of fivedecades. The resolution reserves the use of theUnited Nations name and emblem for officialpurposes of the Organization and prohibits their useby outside entities without authorization of theSecretary-General. On the basis of the resolution,the Secretary-General has developed a policyconcerning the granting to outside entities(normally not-for-profit) of the right to use thename and emblem. The United Nations Office ofLegal Affairs stresses that this longstanding policyprohibits the use of the name and emblem forcommercial purposes as such, and that theOrganization should maintain this policy, which isbased on the need to maintain the protectionprovided to the name and emblem underinternational laws, as long as they are not used forcommercial purposes. It also protects theOrganization from financial risks that are associatedwith commercial use of the name and emblem, and,more generally, the risks to the financial and otherinterests of the Organization that may result fromthe use of the name and emblem in a manner or byindividuals or entities that may not be consistentwith the aims, policies and activities of theOrganization.

61. At the same time, the Office of LegalAffairs states that this policy does allow for the useof the name and emblem of the Organization in awide variety of circumstances, including their useby commercial entities where the principal aim is tosupport the United Nations, its policies, aims andactivities, provided that measures are taken to avoidthe suggestion that the United Nations is endorsingthe products or services of such entities. It addsthat an analysis of the policy and practice of theOrganization as to the extent to which the name andemblem can be authorized for use in publicizingactivities, reflects the discretion that the Secretary-General has in this regard. In fact commercialentities making donations or sponsoring UnitedNations projects have been occasionally authorizedby the Organization to use its name and emblem.The Office of Legal Affairs, however, expressesconcern at the particular difficulties raised by theissue of the possible use of the emblem by thirdparties for fund-raising purposes. The underlyingconcern is that should problems arise during thecourse of fund-raising activities where theoperational decisions on seeking and disbursingfunds would be taken by individuals not

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accountable to the Secretary-General but using theOrganization’s name and reputation, theOrganization would be exposed to the risk oflitigation.

62. The overall picture that emerges fromdocuments reviewed and interviews conducted forthis report, is one of concurring basic principles butsomewhat diverging practices, in particular asregards the selection of partners, the recognition ofcontributions and the avoidance of conflicts ofinterests. (b) The selection of partners

63. While a number of agencies or funds haveestablished clear criteria for accepting or rejectingproposals for cooperation with individualenterprises (see C. below), many have not and couldbe exposed to the risk of associating themselveswith companies whose goals or activities are notcompatible with those of the United Nations or areperceived to be so. Some have even expressedreluctance to set up a screening process, which theysee as potentially arbitrary and discouraging toprivate enterprises. Without it, however,organizations of the United Nations system becomeextremely vulnerable to attempts by somecontroversial companies to “cash in” on their nameand reputation and to criticisms from MemberStates and non-governmental organizations. TheInspectors wish to stress, therefore, the need toprotect effectively the image of the United Nationsas the absolute pre-requisite of any partnership.UNESCO, for instance, states that it will notconsider proposals made by private entitiesinvolved in activities which do not comply withUnited Nations aims and principles, are involved inpast convictions for unlawful activities or areinvolved in activities contrary to United Nationssanctions in force. Once again, the address by theExecutive Director of UNICEF to the HarvardDevelopment Conference (see paragraph 22)provides a useful guide in this regard. She stated:”The heart of the matter is the exercise of duediligence. The United Nations must look carefullyat these companies. This does not mean puttingthem under a microscope...but identifyingorganizations whose behaviour, on balance, showsevidence of a willingness to exercise corporateresponsibility”.40

64. It was also pointed out to the Inspectors

that even with an adequate screening process inplace, globalization and the cross-ownership ofcompanies made it sometimes difficult to identifywith certainty those that should be excluded fromcooperation with the United Nations. WHO andUNICEF both cited the case of a company thatbecause of cross-participation in controversialactivities was not considered eligible forcooperation. Others stressed that most majorcorporations have somewhere in their past orpresent some controversy. It is essential therefore,that each agency decide clearly on the criteriawhich makes a corporation acceptable forpartnership with it as a United Nations entity, andthat it not rely exclusively on the advice ofscreening proxies such as “ethical researchagencies”.

65. Also problematic is the fact thatcompanies which may be rejected as inappropriateby an agency may be accepted by another. Whilethe differing mandates, objectives and activities ofthe various United Nations entities may account forthese divergences, they may ultimately reflectnegatively on the Organization as a whole and callfor better coordination within the System. For astart, the sharing by United Nations agencies, fundsand programmes active in this field of the lists oftheir present partners could serve to draw aninformal profile of the type of enterprise most likelyto be successfully engaged by United Nationsactors. It may also be possible, as advocated bysome agencies, to define specific industries whichshould be placed in a separate category of completeexclusion from collaboration with any UnitedNations entity. WHO, in particular, stresses thatthe weapons industry, which is involved in productdevelopment that opposes the mission of the UnitedNations, and the tobacco industry, given theinherently deadly nature of its products, should beentirely excluded from any type of partnership.

(c) The need to appropriately acknowledgecontributions while preserving theintegrity of the United Nations

66. As noted by several organizations, the keyto a successful cooperation is the identification ofmutually beneficial arrangements (referred to as“win-win situations”), for it would be naive tobelieve that the private sector cooperates with theUnited Nations for purely altruistic motives. Whilesome in the business community perceive the long-

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term benefit which they may gain from the successof United Nations activities in alleviating povertyand creating new markets, many see the immediateprofit from their association with the UnitedNations through an improved name recognition orimage. This is a legitimate business objective andthe United Nations must define the ways in whichit can respond to it without being perceived asfavouring a company over another or strengtheningthe hold of an enterprise on a particular market, andwithout adopting as its own the particular interestsof a given company.

67. The Office of Legal Affairs considers thatin principle, publicizing a donation to the UnitedNations may be acceptable if such action itself isconsistent with the policies, aims and activities ofthe Organization. This would be the case if suchpublicizing is not aimed at promoting products orservices offered by a donor, or at otherwisesoliciting its business opportunities, but rather atsupport for the United Nations and its activities. Italso advises that generally promotional materialdeveloped by private entities in support of theUnited Nations should clearly indicate that theentity’s collaboration with the United Nations isnon-exclusive and does not constitute anendorsement by the United Nations of the entity’sbusiness or services.

68. In practice, the methods used by UnitedNations agencies, funds and programmes toacknowledge contributions vary widely. Most, suchas UNHCR or WHO, tend to issue press releases,which also appear on their website, mentioning thenature and amount of the contribution and namingthe enterprise or enterprises involved. TheExecutive Heads of agencies often also nominallyrefer to projects and companies in their publicspeeches. The companies may be allowed to referto their contribution in its internal documents, suchas those submitted to board and shareholdermeetings and auditors’ reports.41 FAO allowscontributors to publicize themselves that they havemade a financial contribution to the agency, but thetext of any such publicity must be cleared withFAO beforehand. UNDP, for its part, deems itpermissible for private-sector entities to mentiontheir contributions in press releases, as long as it isnot implied that UNDP directly or indirectlyendorses the corporation. In a practice which theInspectors deem wise, UNDP insists, therefore, thatit must maintain the right to approve any materials

intended for publication outside the corporationwhich mentions UNDP, the contribution or theactivity in support of which it is provided.42

69. Other programmes and funds, includingUNICEF, authorize, within very specific limits, theuse of their logos or the mention of their names onpublications or even products put out bycooperating enterprises. Most specifically ban theuse of their official emblem on commercialproducts and services as well as endorsing anyspecific product or company, and refuse to enterinto any agreement which would grant exclusivityto any company, group of companies of industrysector.43

70. The Inspectors feel that it is veryimportant for agencies and programmes to clearlyspell out the “rules of the game” so as to avoidconfusion among their staff as to what ispermissible or not as well as possible disputes withtheir partners in the private sector. They alsobelieve that they should consult regularly on thepractices which they follow in this regard aslessons-learned through successes or setbacks canfacilitate harmonization of these practicesthroughout the System.

(d) Conflicts of interests and undue influence

71. An essential element of the value andcredibility of United Nations activities, especiallybut not only in the normative field, relies on theSystem’s impartiality. Many of the Inspectors’interlocutors stressed, therefore, the importance ofprotecting their organizations from real orperceived conflicts of interests which may ensuefrom their association with commercial enterprises.WMO, for instance, expressed concern that thenormative value and the good name of the UnitedNations may be tainted by its association with profitor publicity-seeking enterprises. ECE, for its part,talked of concern expressed by some MemberStates about the “encroachment” of the privatesector on the work of all United Nations agencies inthe field of norm-setting, and of the fact that theUnited Nations would lose its credibility as aneutral institution if it was seen to encourage thisencroachment.

72. WHO, which sees itself as particularlyvulnerable to conflicts of interests, provides a

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useful definition borrowed from a medical researchgroup which is probably valid for all professionsand sectors :“A conflict of interest is a situation inwhich a researcher has or appears to have a privateor personal interest sufficient to influence theobjective exercise of his/her professional judgementtowards his/her official duties”.44 Documentspublished by WHO also identify the “considerablerisks involved in developing partnerships with thecorporate sector”, including the possibilities thatWHO’s judgement on a particular product, serviceor corporate practice may be compromised byfinancial support provided by the involved companyor industry and that WHO involvement with anindustry or company is perceived as acceptance ofunhealthy products, services, or practices.Likewise, in draft principles and guidelines forcooperation with the private sector, FAO stressesthat its position on scientific and technicalquestions must never be tainted by the suspicionthat its position has been influenced by theacceptance of contributions.

73. Other agencies or programmes stated thatexisting guidelines, codes of conduct forinternational civil servants and administrativeinstructions may not be sufficient to prevent thesuspicion that United Nations staff is securingpersonal gains from their Organization’spartnership with enterprises. This is all the more sosince the responsibilities of individual staffmembers for contacts with the business sector arenot always well defined. While there is clearly aneed to guarantee that United Nations staff have nofinancial interest, whether through investments orpositions on advisory boards in companies withwhich a cooperation is proposed, the Inspectors feelthat the Secretariat lacks the practical means ofimplementing Staff Rule 101.6 (reproduced inAnnex IV) which relates to outside activities andinterests of staff members. The recent Secretary-General’s Bulletin on financial disclosuresstatements, ST/SGB/1999/3 only concerns staffmembers at the assistant secretary-general level andabove. Furthermore, the Inspectors did not comeacross any regulation expressly forbidding staffmembers from joining companies with which theyhad cooperated during the course of their duties atthe United Nations less than a certain number ofyears after separation (upon retirement for example)from the Organization.While it is hoped that the International CivilService Commission will take into account these

issues in its work on revised standards of conductfor the international civil service, these standardswill constitute guiding principles rather thanbinding rules, and will need to be complemented byspecific rules.

74. A recent investigation carried out by theUnited Nations Office of Internal OversightServices illustrates the need to provide for tightercontrols on agreements reached with privatecompanies. The investigation uncovered extensivesolicitations of funds and unauthorized commercialagreements between United Nations staff andprivate individuals and companies. It highlightedthe crucial importance attached to the use of theUnited Nations name by private sector technologyfirms, and the significant profits which could derivefrom it. The investigation also uncovered privatesector interests in a United Nations-sponsoredprogramme providing technical assistance toeconomically disadvantaged countries.45

75. More generally, the United Nations mustbe attentive to concerns expressed by MemberStates, by NGOs or in the media that undueinfluence may be gained by private commercialinterests groups on its policies and programmes asa result of large donations or of over-dependence ofsome programmes on private funds. Many NGOs,in particular, are worried that large donations mayplace the United Nations far too much under thesway of private institutions. However, the mannerin which such donations have been handled to thisdate and the guarantees introduced against privatedonors gaining leverage from them over theOrganization appear to constitute in fact an exampleof good practice.

(e) The cumbersome nature of present UnitedNations regulations and procedures

76. A number of offices in the United NationsSecretariat pointed to the hindrance caused to theirefforts by some of the Organization’s rules andregulations, with particular reference to theestablishment and management of Trust Funds.ECE notes for instance that “bureaucraticprocedures are a major impediment to attractingadditional resources from the private sector” andthat “if the involvement of the business communitybecomes one of the strategic directions for UNactivities, internal rules may need to be revisedaccordingly”.46

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77. Similarly, in its response to aquestionnaire distributed by the OrganizationalCommittee of the ACC in 1998, UNEP noted that:“The complex legal and regulatory framework ofthe United Nations has frustrated attempts byindustry to deliver elements of projects on time.The usual tight scheduling of any highly technicalindustrial project caused some difficulties forUNEP in maintaining its side of the implementationinputs.”

78. Indeed, more than the regulationsthemselves, it is the very long delays which theysometimes entail, that frustrate and discourage bothUnited Nations officials and their counterparts inthe private sector. This situation appears to warrantan attempt to revise parts of the existingbureaucratic machinery, so as to enable a moreagile response to the operational expectations of theprivate sector.

C. Developing effective tools

79. The Inspectors believe that most of theproblems outlined above can be effectively dealtwith through the adoption by the United Nationsand its funds and programmes, as well as by eachagency of specific and comprehensive guidelinesfor their relations with the private sector, and thatsuch guidelines can help strengthen these relationswhile giving them a disciplined and transparentcourse. They noted that some, such as UNICEF,UNDP, UNFPA, WHO and FAO had alreadyconducted extensive work and are developing toolsin this domain which could guarantee transparencyand accountability for dealings with the privatesector and avoid undue influence of specialinterests groups. A brief description of the type andcontents of some of these guidelines, which areabout to be finalized at the time of the drafting ofthis report, is provided in Annex I as examples ofgood practices which deserve to be encouraged andcould be replicated elsewhere in the System. Otherentities have developed more specific expertisewhich they can usefully share within the UnitedNations system. UNOPS, for instance, hasexpressed its readiness to share its expertise oncontractual matters, risk management and thedrafting of memoranda of understandings.

80. The Inspectors note that the strength ofsome of the guidelines summarized in Annex Iresides in their comprehensive nature, as they applyto both receiving contributions and undertakingjoint projects or even, when applicable, to thesecondment of staff. They provide, therefore, a“one-stop shop” for all officials of the concernedagencies no matter what the nature of the proposedcooperation with the private sector. In the case ofUNICEF, they also provide a very precise time-frame for the processing of requests for approval ofprojects, which can help avoid the unnecessary

delays which often characterize United Nationsadministrative processes. UNDP also strives toprovide prompt approval (or at least a promptresponse, be it negative) to proposed agreements,with its Private Sector Review Group (the body setup to clear those agreements with the private sectorentities which require headquarters’ authorization)acting as a “virtual” working group andcommunicating its clearances and commentselectronically no more than five days after receiptof the proposal.47

81. Typical guidelines, therefore, shouldprobably include first a definition of the privatesector, a clear statement of the ethical principlesunderlying the agency’s or programmes relationswith the private sector, and specific criteria forassessing the appropriateness and desirability ofproposed projects of partnership. They should, inparticular, provide tools to perform a thoroughcost/benefit analysis of such projects (as suggestedby UNESCO). The guidelines should also offer adetailed description of procedures to be followed byUnited Nations officials, including examples ormodels of contracts, Memoranda of Understandingor other types of legal agreements into which theymay be required to enter, as well as clearinstructions on reporting revenues and expenses forauditing purposes. Finally, they should outlinemeasures aimed at discouraging staff from seekingpersonal advantages from cooperating companies.

82. However, some agencies or programmeswhose contacts with the private sector focusessentially on fund-raising or sponsorship activitiesmay prefer, at least in a first stage, to adoptguidelines restricted to the issue of mobilization ofprivate funds, as was decided this year byUNESCO.48 These guidelines are also brieflydescribed in Annex I.

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83. Adopting guidelines will not suffice. Itwill also be necessary for each agency to ensurethat they are regularly updated and properlydisseminated and made known to the staff at large(through, for instance, the INTRANET) as well asto other United Nations organizations and thebusiness community (possibly through the websitementioned in paragraph 24). In the case of theUnited Nations Secretariat, this could be achievedthrough the issuance of a Secretary-General’sBulletin, as was already done fifteen years ago forrelations with NGOs.49 Likewise, each agency maydecide, as was recently recommended byUNESCO’s Inspector General, to issue anadministrative circular outlining the main elementsof existing guidelines for relations with the privatesector.

84. Finally, the Inspectors wish to stress againthe need to share information on a system-widebasis on all the aspects of cooperation with theprivate sector. During the meetings held inpreparation for this report, regret was oftenexpressed that little information was available onthe practices and experiences of others in theUnited Nations. Others pointed to the increasinglycross-sectoral nature of issues addressed by theUnited Nations and the need for the organizationsof the System to present a unified front to theprivate sector while several stressed that theappearance of competition between agencies shouldbe avoided. The Inspectors welcome, therefore, thepreliminary discussions held on this issue in theOrganizational Committee of the ACC and the ACCitself last year as well as the individual initiativestaken by some agencies or programmes to establishinformal contacts and exchanges at the workinglevel. They believe that the specific issue ofcooperation with the private sector should be one ofthose dealt with in the context of the developmentand improvement of an information network amongACC members.

85. The Inspectors also note the establishmentby the Secretary-General’s Senior ManagementGroup (SMG) of a working group to develop policyproposals in this regard as a positive first steptowards the adoption by the Secretariat and fundsand programmes directly affiliated to it of a clear

framework for cooperation with the private sector.It is hoped that this working group can proceedspeedily with drafting Secretariat-wide guidelinesfor relations with the private sector, and whichcould then serve as reference or model for thoseFunds and Programmes which have not yet adoptedguidelines of their own.

86. The Inspectors wish to underline,however, that sharing information and harmonizingpolicies and procedures should not necessarily leadto the adoption of one single set of standardguidelines for the whole United Nations system. Infact, many agencies caution that the diversity intheir mandates and activities would probably notallow them to agree on anything but very generalprinciples, and that excessively rigid proceduresmust be avoided at all costs. Others, however,stress the need for some common point of referencefrom which each Organization can makeappropriate decision. The Inspectors believe fortheir part that the strong commonality of principlesand conceptual approaches revealed in the course ofrecent ACC sessions would allow for members ofthe committee to agree on a number of basiccommon operational procedures and modalities.

87. On the other hand, it may not be useful orfeasible to establish a single enterprise liaisonservice along the lines of that proposed by theSecretary-General in his report on reforming theUnited Nations two years ago.50 The difficultieslinked to the establishment of such an office areillustrated by the fact that the proposal was neverimplemented (although a “virtual liaison service”was set up with the development of the websitementioned in para. 26). A minority view, however,holds that for expeditious movement forward totake place, some entity or body must be recognizedas having a lead or catalytic role to play in thisfield. While not advocating the establishment ordesignation of such a central body, the Inspectorsdo hope that effective mechanisms for the exchangeof information and of best practices will lead to thestrengthening of the United Nations’ relationshipwith the private sector while helping to protect theindependence and integrity of the Organization.

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1 This is not an exhaustive list, but simply a summary of some of the guidelines madeavailable to the Inspectors.

ANNEX I

Comparative table of guidelines for relations with the private sector1

Agency Summary of guidelines

UNICEF “Building alliances for children”, the draft UNICEF guidelines for working with companies andthird parties provide (among other things):-Guiding principles-Detailed ethical screening criteria (positive and negative)-A step-by-step method for assessing the “value fit” of a proposed alliance-A description of procedures to be followed to obtain approval of projects, including on : * receiving income from corporate alliances; * the use of UNICEF’s name, logo and emblem; * events and sponsorships.-Sample requests for clearance and sample contracts

WHO The “WHO guidelines on interaction with commercial enterprises” provide:-Guiding principles for collaboration with enterprises, which should be expected to follow WHOpublic health policies. Partnerships are to be established on the basis of “mutual respect, trust,transparency and shared benefit”, and can be evaluated using a number of suggested criteria,including: * the project should contribute to clear health gains; * these gains should be worthy of the effort involved in establishing the partnership; * the project should enhance WHO’s role and image.-Criteria are also suggested for assessing the suitability of a specific industry : * the major products or services of the industry are beneficial to health; * the industry does not engage on a large scale with practices which are negative to health; * the likely public health benefit outweigh any possible harmful practices, products or

services. -General rules and procedures, calling for a formal review of proposals for collaboration by theLegal Office and the Committee on Private Sector Collaboration (for contentious cases), andcovering such topics as : * donations (with particular attention given to avoiding real or perceived conflicts of

interest) * contributions in kind; * product development; * seconded personnel; * use of WHO name and logo; * organization or sponsporing of meetings

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FAO The draft “Principles and Guidelines for FAO Cooperation with the Private Sector” provide :-A general description of FAO policy in the field and an analysis of the concept of partnership,stressing that effective partnerships are based on partner’s mutual interests and utilize theircomplementary resources and organizational strengths;-Partnership principles including : * conformity with FAO’s mandate and work programme; * mutual interests and mutual objectives; * transparency; * accountability; * scientific credibility; * non-exclusivity.-Annexes on rules and procedures to be followed for : * the use of FAO emblem and logos; * voluntary contributions to FAO; * cosponsorship, patronage and other forms of FAO involvement in meetings and other

events.

UNESCO The “Guidelines for Mobilizing Private Funds and Criteria for Selecting Potential Partners”, adoptedby the Executive Board in 1999 provide :-Positive criteria for approving fund-raising activities (priority to be given to initiatives whichcorrespond to the main objectives of UNESCO, are accepted by the concerned Member State(s) andwhich generate additional funding as well as public awareness of UNESCO’s activities); -A list of the documents and references to be submitted by potential partners (including legalstatutes, bank references and financial proposals);-Negative criteria for rejecting potential partners (such as those involved in activities contrary toUnited Nations sanctions in force);-A description of the formal written contract to be signed between UNESCO and any private partnerand of the internal process of approval by UNESCO.

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2 This list, based on the information made available to the Inspectors, is not anexhaustive one.

ANNEX II

List of existing focal points/dedicated units set up by agencies,funds and programmes to deal with the private sector2

Organization Focal point or designated unit or official

United Nations and its programmes

United Nations Secretariat

No focal point but one designated official in Executive Office of the Secretary-General for policy matters

ECE No focal point; each Division deals with the private sector as required by its activities

ITC Each programme develops its own contacts, but the Programme and Resources Section coordinatespartnership arrangements with the private sector

UNCTAD No focal point; each Division deals with the private sector as required by its activities

UNEP The Trade, Industry and Environment Division is the global focal point, while the officers of Technology,Industry and Economics serve as focal points in UNEP’s regional offices.

UNICEF Private Sector Division

UNDP Division for Resources Mobilization (Bureau for Resources and External Affairs) and Private SectorDevelopment Programme (Bureau for Development Policy)

WFP Resources and External Relations Division

UNHCR Public Affairs Unit

Specialized agencies

FAO Unit for Cooperation with the Private Sector and NGOs (TCDN)

ILO No focal point; each Department or programme deals with the private sector as required by its activities

IMO Resource Mobilization Section, Technical Cooperation Division

ITU The External Affairs and Corporate Communication Unit addresses policy matters related to the privatesector, but each Sector also deals individually with the latter

UNESCO Bureau for Extra-Budgetary Funding

UNIDO No focal point; each department or programme deals with the private sector as required by its activities

UPU The Director General’s Office and External Relations deal with coordination and general principles; otherorganizational units are consulted on operational questions.

WHO Although there is an External Cooperation and Partnership office, each department or programme alsodeals individually with the private sector

WIPO The Office of Legal and Organizational Affairs deals with the private sector at the policy level, whileother programs develop their own contacts with the private sector as required.

WMO No focal point, although the Office of the Secretary-General deals with policy matters related to theprivate sector

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ANNEX III

Extracts from General Assembly Resolution 92 (I) of 7 December 1946,

“Official Seal and Emblem of the United Nations”

The relevant part of the resolution reads as follows :

“2. Considers that it is necessary to protect the name of the Organization and its distinctive emblem and officialseal;

Recommends, therefore :

(a) That Members of the United Nations should take such legislative or other appropriate measures as arenecessary to prevent the use, without authorization by the Secretary-General of the United Nations, and inparticular for commercial purposes by means of trade marks or commercial labels, of the emblem, the officialseal and the name of the United Nations, and of that name through the use of initial letters;

(b) That the prohibition should take effect as soon as practicable...”

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ANNEX IV

United Nations Staff Rule 101.6

Outside activities and interests

(a) Staff members shall not engage in any continuous or recurring outside occupation or employmentwithout the prior approval of the Secretary-General.

(b) No staff member may be actively associated with the management of, or hold a financial interest in,any business concern if it were possible for the staff member to benefit from such association or financialinterest by reason of his or her official position with the United Nations.

(c) A staff member who has occasion to deal in his or her official capacity with any matter involving abusiness concern in which she holds a financial concern shall disclose the measure of that interest to theSecretary-General.

(d) The mere holding of shares in a company shall not constitute a financial interest within the meaningof this rule unless such holding constitutes a substantial control.

(e) Staff members shall not, except in the normal course of official duties or with the prior approval ofthe Secretary-General, perform any one of the following acts, if such acts relates to the purpose, activities orinterests of the United Nations :

(I) Issue statements to the press, radio or other agencies of publicinformation;

(ii) Accept speaking engagements;

(iii) Take part in film, theatre, radio or television productions;

(iv) Submit articles, books or other material for publication.

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1. See General Assembly Resolution 51/240, An Agenda for Development.

See also Joint Statement by the Secretary-General and the International Chamber ofCommerce in United Nations Press Release SG/2043, 9 February 1998.

2. See General Assembly Resolution 52/209 , entitled Business and Development,adopted without a vote on 18 December 1997.

3. “A compact for the new century”, statement by the Secretary-General to the WorldEconomic Forum, 31 January 1999.

4. See JIU/REP/93/1 and JIU/REP/96/4

5. See, among others, JIU/REP/97/5.

6. See website http://www.wfp.org/reports/procurement.

7. InterAgency Procurement Service Office (IAPSO), General Business Guide

8. Cooperation between the Economic Commission for Europe and the BusinessCommunity, E/ECE/1360, 13 February 1998.

9. ITC’s legal status is that of a “joint subsidiary organ” of the World Trade Organizationand the United Nations, the latter acting through UNCTAD.

10. Full details of the conference can be obtained at the following website:http://www.aidandtrade.com.

11. See General Assembly resolution 48/180, Entrepreneurship and Privatization forEconomic Growth and Sustainable Development, of 21 December 1993.

12. “Renewing the United Nations : A Programme for Reform”, A/51/950, 14 July 1997.

13. “Markets for a better world”, address by the Secretary-General at the World EconomicForum, 31 January 1998.

14. United Nations Press Release SG/2043, 9 February 1998.

15. “Sharing responsibilities : public, private and civil society”, Statement by UNICEFExecutive Director to the Harvard Development Conference, 16 April 1999.

16. “A compact for the new century”, statement by the Secretary-General to the WorldEconomic Forum, 31 January 1999.

17. See in this regard the Press Conference by the Secretary-General and the leadershipof the International Chamber of Commerce, Geneva, 5 July 1999.

18. UNEP, Report to the Commission on Sustainable Development, March 1999.

19. The address of the website is: http://www.un.org/partners .

Notes

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20. The United Nations Staff College has recently presented to the Consultative Committeeon Programme and Operational Questions (CCPOQ) a programme entitled “The ExecutiveAction Programme” which aims at building core competencies for effective partnershipsbetween the United Nations, business and civil society and to train a cadre of “partnershipbrokers” to initiate, facilitate and sustain such partnerships.

21. See General Assembly Resolution 52/209 of 18 December 1997, Business andDevelopment. Paragraph 13 of the resolution states that there is a need to assist developingcountries, as well as countries with economies in transition, in strengthening their capacity toencourage wider participation of the private sector.

22. See Resolution 52/209, Business and Development, adopted without a vote on 18December 1997.

23. UNESCO, for instance, indicates that private fund mobilization represents 2 to 4 percent of its overall extra-budgetary resources over recent years.

24. Cooperation between the Economic Commission for Europe and the BusinessCommunity, E/ECE/1360, 13 February 1998.

25. Partnership with civil society, UNFPA Technical Report No. 46, February 1999.

26. Cooperation between the Economic Commission for Europe and the BusinessCommunity, E/ECE/1360, 13 February 1998.

27. See website: http://www.un.org/partners/business/unep.htm

28. UNAIDS Press Release, Davos, 31 January 1999.

29. UNDP Press Release, New York, 27 August 1996.

30. See website: http://www-partners.unctad.ch.

31. See General Assembly resolution 52/209 of 18 December 1997, Business andDevelopment.

32. Cooperation between the Economic Commission for Europe and the BusinessCommunity, E/ECE/1360, 13 February 1998.

33. According to UNDP, private capital flows to developing countries increased more thansix-fold from US$ 42 billion in 1990 to US$ 256 billion in 1997.

34. A Strategy for FAO/Private Sector Partnership to help achieve Food Security, documentpresented to the FAO programme and Policy Advisory Board, 13 March 1997

35. UNCTAD Press Release, PFD/7, 22 October 1998.

36. See United Nations Press Release TAD/1882 of 6 July 1999.

37. United Nations Press Release GA/EF/2833 of 22 October 1998.

38. The three Sectors are : Radiocommunication (ITU-R), TelecommunicationStandardization (ITU-T) and Telecommunication Development (ITU-D).

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39. WMO and the Private Sector, Report submitted by the Secretary-General to theExecutive Council Working Group on Long-Term Planning, WGLTPP-III/Doc. 6 (08.IV.1998).

40. “Sharing responsibilities: public, private and civil society”, Statement by UNICEFExecutive Director to the Harvard Development Conference, 16 April 1999.

41. ILO, Circular No. 64, Series 5 (Finance), 23 January 1997.

42. Guidelines and Procedures for Mobilization of Resources from the Private Sector, UNDPBureau for Resources and External Affairs, Division for Resources Mobilization, November1998.

43. This is the case, for instance, of UNICEF and FAO.

44. WHO, Ethical principles for WHO/TFI collaboration and partnerships with private sectorenterprises

45. See A/54/1, Report of the Secretary-General on the work of the Organization, para. 342,and A/54/413, Investigation into Allegations Concerning an Electronic Commerce Project atUNCTAD.

46. Economic Commission for Europe, Committee for Trade, Industry and EnterpriseDevelopment, Trade/1999/12, 30 March 1999.

47. Guidelines and Procedures for Mobilization of Resources from the Private Sector, UNDPBureau for Resources and External Affairs, Division for Resources Mobilization, November1998.

48. The guidelines were presented by the Director-General in document 156 EX/38 of 17March 1999 and adopted by the Executive Board.

49. See ST/SGB/209 of 1984 on “Policies and Procedures governing the relationshipbetween non-governmental organizations and the United Nations Secretariat”.

50. “Renewing the United Nations : A Programme for Reform”, A/51/950, 14 July 1997.