A Sri Lankan lady harvests tea as part of the Ethical Tea Partnership. © CARE / Helen Barnes.CARE International UK’s private sector engagement strategy sets out the priorities and principles which will help us maximize our contribution to poverty reduction using market-based models.
Over the next three years, CARE will pioneer approaches – often in partnership with companies, improve our own skills, capacities and practices and explore the boundaries between business, markets and development.
Our Priorities
Market Engagement
Poor people contribute to and engage with markets, whether they run a vegetable stall, work in a rice field or buy seeds to grow for consumption. Unfortunately, even though they contribute to them, they do not get enough out of these markets.
Profit margins are too low, and often poor people do not have access to assets and skills which would help them better utilise markets. Of the world's 500 million micro- and small-business owners less than 2% have access to financial services and training vital to develop their businesses.
Through our work, CARE leverages market systems because we believe that poor people have a right, and the potential, to earn a sustainable and dignified living. By unlocking this potential, household income increase where more might then be spent on health and education services, and there will be an increase in people’s self-esteem – particularly women – who have the opportunity to provide for their families.
CARE’s work on market engagement promotes changes in market systems - also known as ‘value chains’ - that generate positive, sustained impact for large number of poor people in terms of income, power relations and access to products and services that empower them to improve their quality of life.
To achieve this we strengthen the knowledge and skills of the poor. We also develop the markets they link into, and their contributions to those markets, and we promote policies and regulations to support poor people’s ability to engage in markets.
We recognise the importance of engaging with business on this, not only because those at the top frequently hold the largest share of the power to drive a value chain, but also because we appreciate business’ ability to take new solutions to scale in an economically sustainable way.
Over the next couple of years our work will seek to increase participation and benefits for poor producers, in particular women. We will focus on improving the quality and scalability of our programmes, and enhance organizational learning around the possibilities and limitations of the value chain approach.
Business Responsibility
A responsible and accountable private sector can be a major driver to reduce poverty - in the same way that weak (or poorly enforced) business regulation, coupled with irresponsible business practices, can be a determinant of poverty.
The global reach and financial resources of many large corporations give them considerable political power at many levels, and increasingly consumers, shareholders and governments are demanding a more responsible and accountable private sector. Proactive engagement with the private sector, whether on issues such as human rights, climate change or Fair Trade, can constitute a powerful tool in creating dialogue around poverty and sustainable development, and in generating reform.
We will increase our work through country offices around the world to support initiatives that enable communities to hold the private sector to account, and influence local governments in shaping pro-poor policies.
At the same time CARE will engage with companies on their current practices, and seek to increase their awareness of the needs and rights of the communities with whom they interact. Supporting these two strands of our work is a focus too on specific advocacy initiatives which target more transparent and accountable policies related to the private sector.
Business Innovation
CARE recognises that the private sector has a unique ability to come up with new solutions, however it is critical that this is done in such a way that poor people - in their roles a producers, consumers or workers - actively benefit from this. CARE has experience of this in the finance industry, with microfinance loans enabling the poor to access more formal financial services. This type of creation of new delivery channels and new technologies can provide practical means by which to address the needs of the poor.
CARE understands the underlying causes of poverty and has expertise in empowering poor people to find their own way out of poverty. Our work with companies means we can combine our understanding and expertise with the skills and resources of business.
Together, we seek to push the boundaries of traditional business models in order to create development gains through partnerships that generate profits, have lasting impact, and allow poor people to play a significant role within markets.
Over the next three years we will increase the number of solutions-driven partnerships in which we engage. We will also develop better frameworks and tools to build effectiveness and impact of these partnerships.
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