Inclusive Business in the Asia-Pacific Economic Cooperation by Asian Development Bank;

Author:Asian Development Bank;
Language: eng
Format: epub
Publisher: Asian Development Bank Institute
Published: 2018-08-15T00:00:00+00:00

UNDP = United Nations Development Programme.

Sources: United Nations Development Programme. International Human Development Indicators. http://hdr.undp.org/en/countries. World Bank. Ease of Doing Business Ranking. http://www.doingbusiness.org/rankings. Index of Economic Freedom. https://www.heritage.org/index/ranking.

Inclusive Business in Colombia

Inclusive business models are mainly seen in the agriculture sector. IB models are widely seen in Colombia, especially in the agriculture and food-related sectors. A 2015 Inclusive Business Action Network study identified 36 IB models in Colombia, with 61% of the cases integrating the low-income families as suppliers and 33% as customers, with the investments being made in agribusiness and food (56%) and in financial inclusion (11%) sectors (IBAN 2016). Many large corporations in Colombia engage IB models to enhance the efficiency of supply chains and as part of their CSR strategy. IB is promoted through the National Inclusive Business Council (CONNIC) that drives CECODES (the national chapter of World Business Council for Sustainable Development), which is a multi-stakeholder platform with the academia, business, consultants, and the public sector. CONNIC has developed a National Strategy on Inclusive Business to promote, identify, and monitor IB cases in the country (The World Bank Group 2017n). Other initiatives like MINKA—an IB-focused NGO—developed an online platform to connect IB companies to communities that could serve as suppliers. An example is Nutresa, a large food corporation that works with over 12 farmer associations in the cultivation of sesame. The company also supports the farmers through partnerships with the Agricultural National Bank (Finagro) and the Universidad Externado of Colombia for training. Nutresa also provides technical assistance for improving quality and productivity of the crops (Nutresa 2015).

Increasing move toward strategic corporate social responsibility activities. Colombia has a long tradition of CSR across many industries, while the government encourages public and private enterprises to follow OECD guidelines (Export.gov 2014). CSR continues to be a strong concept in Colombia and many corporations and their foundations have begun developing strategic initiatives. Corporations like Pepsico, Grupo Nutresa, and Alpina work with local suppliers in the agricultural sector for their supply chain needs (Colombo Britanica n. d.). The National Business Association of Colombia (ANDI) developed the project “Productive Concatenations” within the framework of CSR, which was financed by the MIF, promoting IB.

Social enterprises are growing in number. Colombia has seen social enterprises grow over the years. The Ashoka social enterprise group was set up in Colombia as early as 1994. In 2011, the international Grameen Bank movement then established its first social business branch in Colombia. In 2013, the Acumen fund opened its Latin America headquarters in Bogota and in the same year “Socialab” established itself as the first social entrepreneur incubator in Colombia. Some $56 million has been invested in 2014 and 2015, with a focus on agriculture and financial inclusion sectors.

Growing support for inclusive business from private sector and civil society. The overall ecosystem for IB is strong, even though there is no specific legislation that promotes IB. While there is strong interest from the government on IB, there is no cohesive policy. Some government programs like “Alianzas productivas” have facilitated IB, with a goal to help small farmers generate income by connecting them with traders.

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