The Overseas Development Institute (ODI) has published an issue brief (pdf, 8 pages) that examines the critical role of supply and distribution chains in harnessing the power of business for lasting development impact. The brief focuses on the supply chains of multi-national enterprises (MNEs) operating in developing countries, arguing that it is precisely the supply chains that matter most in shaping their contribution to enterprise development and local earnings in developing countries.
According to Caroline Ashley, the brief’s author, while providing opportunities for workers, producers and vendors, supply and distribution chains are also where MNEs earn their margins, squeezing returns to low-income supplies or distributors. As such, whatever the sector, the supply and distribution chains of MNEs are major avenues by which MNEs affect the engagement of the poor in globalized markets.
The topic of MNEs’ supply chains was debated at a recent event in London, which discussed lessons learned concerning the implementation, impact, and returns of these types of inclusive business initiatives. This event was part of the 2009 Event Series on Harnessing the Power of Business for Development Impact from ODI, the Department for International Development and Business Action for Africa.
More information on the topic of enterprise development:
- Promoting small and medium enterprises for sustainable development
- SME Development: a vehicle to support entrepreneurship in the low-income segment
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