Just a few years ago it was far from obvious for the private sector to be represented at a development event. This has changed. At the seminar The role of trade and the private sector in times of economic turmoil, a fruitful discussion evolved between representatives from companies, governments and organizations. The panellists agreed that job creation is essential for sustainable development; improving health and education alone is not enough.
“There is a need for more innovative co-operation and entrepreneurial opportunities for the poor,” said Mary Robinson, former president of Ireland and now the vice president of the Club of Madrid and the president of the Ethical Globalization Initiative.
Robinson pushed for more emphasis on making human resources visible – especially in the informal sector, where many women are working.
“Access to capital and reducing barriers is important,” said Robinson, who hopes for more links between large private sector actors and small-scale enterprises in developing regions.
But the private sector has to act responsibly when building supply chains. Robinson and others made it clear that “we did not know” is not good enough from corporations when bad working conditions in low income countries are revealed. Companies need to become more accountable for human rights violations, panellists argued.
Hans Enocsson, national executive at GE Nordic Region, gave a company point of view on why citizenship pays off for business and for development. According to him, transparency and partnerships with global organizations has increased competitiveness.
A discussion about the risk of the private sector fuelling corruption was initiated and Enocsson made GE’s standpoint clear:
“We won’t invest in countries where we can’t live up to what we promise. It’s about our brand value.”
Ewa Björling pointed out that trade is nevertheless necessary in countries with little stability and lack of human rights.
“Trade is a good tool for peace and stability,” she said. “It creates long-term friendships and makes fighting expensive.”
But trade also has to be fair. Ngozi Okonjo-Iweala, managing director of the World Bank, asked for real commitment to finally close free-trade negations in the Doha Development Round and fight protectionism. “Otherwise we risk becoming cynical,” she concluded.
