Opening remarks by minister Toivakka at the Development Policy Business Forum

Development Policy Business Forum on “Business and Human Rights”
Thursday, 28th January 2016, at 9.00−9.10, at the House of Estates (Säätytalo)

Minister for Foreign Trade and Development Lenita Toivakka
The private sector as a key partner in promoting sustainable development

Good morning, ladies and gentlemen. Good to see that there are so many of you here! I wish you warmly welcome to this Development Policy Business Forum.

The Ministry for Foreign Affairs initiated the series of Business Forums in 2012. Today’s forum is actually number five in order. For us they offer an important occasion for dialogue and exchange of information with you.

Our topic today is “Business and Human Rights”. It’s an important topic, especially now that we are moving strongly towards increased cooperation with the private sector. As we know, Finland and Finnish companies have been forerunners in this field. Last week we heard the news that five Finnish companies are amongst the 100 most sustainable corporations in the world. This is more than the other Nordic countries, for example.

I would like to extend my special thanks to our guest speakers. Your expertise is very valuable today. You will surely give us ideas of how we can further strengthen our human rights-based approach to development.

Ladies and gentlemen,

The United Nations Guiding Principles on Business and Human Rights were endorsed by the UN Human Rights Council in 2011. Since then, the EU has been a forerunner in the implementation of the Principles. It is my conviction that Finland could the top country in corporate human rights due diligence. The large interest for this seminar tells me that you agree.

The Guiding Principles entail that companies have to take measures to ensure that their operations and actions do not result in or contribute to violations of human rights. I think we all agree that human dignity needs to be respected regardless of sector or where in the world we operate.

Finland has a National Action Plan for the Implementation of the UN Guiding Principles on Business and Human Rights. We were actually the fifth country in the world to prepare its own Action Plan.

Many of you have been engaged in the implementation of the National Action Plan. I would particularly like to thank the Grocery Trade for your commitment to this issue. You showed leadership and commitment when adopting your shared vision.

I also want to congratulate Kesko for being selected as the most sustainable trading sector company in the world. This recognition was given last week at the World Economic Forum in Davos.

Ladies and gentlemen,

The private sector’s engagement in development is a true global megatrend in development policy. Last year, all the three major conferences ― Financing for Development conference in Addis Ababa, United Nations Sustainable Development Summit in New York and the Climate Change conference in Paris ― called for increased cooperation with, and contribution by, the private sector. We can’t solve the major development challenges, such as poverty, inequality and climate change, without the private sector. We need innovations, initiatives and technological processes from the businesses.

Our partners in developing countries always emphasize the importance of business. Developing countries want to build equal partnerships with the so-called developed countries. They actually tell us very straight that they don’t want to stay dependent on development aid but they want business, trade and investment.

Emerging markets and sustainable development offer huge opportunities for the Finnish companies. A good example is Iran which I visited with a big business delegation in December: a big market with 80 million, relatively wealthy and well-educated people. Our delegation, including cleantech, ICT and construction companies, was well received there.

Other emerging markets, especially the low-income countries, are growing strongly, too. As a matter of fact, the first 35 most rapidly growing markets in the world last year were developing countries according to the IMF World Economic Outlook. Finland was number 165. Think about that.

Last week, I visited the UN organizations in Copenhagen, again with a delegation. Our aim was to increase the Finnish companies and civil society organizations’ possibilities to benefit from the UN organizations’ procurements. The visit was a success; all the participants had wonderfully done their homework. I hope that this visit created new partnerships in the areas of maternal and child health, mobile education and the technology for ensuring security, shelter, energy and other basic needs of refugees and displaced people.

Ladies and gentlemen,

We have now finalized the preparations of Finland’s Development Policy Program. It will soon be adopted by the Government and sent to the Parliament for a through discussion. We invested a lot of time in consulting with both the civil society, business community and other stakeholders to make sure it reflects all important aspects. Our development policy and cooperation will be strongly linked to Agenda 2030 and the Sustainable Development Goals.

Our four priority areas that will guide Finland’s development policy and cooperation are: 1) Women and girls have strengthened rights and status; 2) Economic development in developing countries increases employment, livelihoods and welfare; 3) Societies are more democratic and they function well; and 4) People’s food security and access to water and energy are better and the natural resources are used in a more sustainable way.

As you already know, we will strengthen our cooperation with the private sector but also with other players. Cooperation with civil society organizations continues. The Ministry will launch the call for applications for small and medium-sized organizations as well as communications projects and global education this spring. Partnerships between civil society organisations and companies will be welcome.

The funding instruments for universities, research and international mobility has also been reformed.

Ladies and gentlemen,

The Ministry continues to develop the private sector instruments to foster economic wellbeing in developing countries. Team Finland is a good overall umbrella for this. We are constantly working to integrate our instruments more closely into the Team Finland systems.

Finnfund’s capacity to fund sustainable investments in developing countries will be increased substantially. The emphasis will be on poorer countries where jobs, income and revenue are badly needed. The details are being worked out.

Finnpartnership is also going through a reform. The Ministry is also constantly reviewing the criteria of Finnpartnership so that it would meet your needs.

BEAM, the innovations for development program, has been up and running for more than a year now. Applications can be submitted all the time; Tekes (the Finnish Funding Agency for Innovation) is the contact point. BEAM has organized many events and, in addition to the regular ongoing call for applications, four targeted calls for applications last year. One was for research-focused projects, another one a joint call with India. Now the second call for applications for research projects is open.

The fourth instrument, that is actively prepared, is the Public Sector Investment Facility. It will support the investment projects initiated by the developing country public sector. We will keep you posted on its preparations and launch later this spring.

All information on our private sector instruments will be also at the Team Finland webpage. You can also call our Team Finland phone number, and your request will be directed to the right person from there.

Ladies and gentlemen,

Like I said in the beginning, now that the Ministry is increasing its cooperation with the private sector, we also want to further improve the modes and contents of the cooperation.

Today’s seminar is, therefore, of fundamental importance for all of us. The objective is that the discussions would help us strengthen the Human Rights Based Approach to the private sector cooperation. But the aim is also to help you ― our partners ― to increase your understanding of human rights due diligence and what is expected from us all to ensure that human rights are being upheld. Or even better, advance them.

Once again, I wish to welcome you all to this seminar. Take advantage of everything you hear today. And challenge the speakers to really help you to improve on your contribution to the human rights!

I wish you a very inspiring seminar!