Poverty remains the main challenge facing the countries that will be the home of 85% of the world's population in the decades to come. Some 2.7 billion people worldwide continue to subsist on less than US$2 per day.
The challenge facing the global community is to eradicate extreme poverty and to foster economic development that benefits all, while preserving natural habitats and biodiversity. Business is a core human activity, and it will be instrumental in bringing about sustainable development.
In a recent post I discussed the importance of developing small and medium enterprises, which form the backbone of nations' economies. In this post, I would like to refer you to the latest WBCSD publication on the topic of business and development. Titled Doing Business with the World - The New Role of Corporate Leadership in Global Development, the report shows how companies can contribute to global sustainable development through their core businesses in ways that are profitable for the companies and good for development.
It offers a business perspective on key challenges and opportunities for the development of poor countries, as well as key messages for companies and governments on how to promote sustainable business solutions that benefit the poor and the societies and environments in which they live.
The issues selected are not exhaustive, but they reflect both traditional areas for development actors and business: ecosystems, education and training, energy, enterprise development, financial flows, governance, health, mobility, trade, and water.
A Statement of Intent for Doing Business with the World, in which the leaders of 12 WBCSD member companies commit to looking beyond corporate philanthropy to search for responsible, sustainable and inclusive business models that are good for business and good for development, introduces the report.
Key messages include the fact that the given the right conditions, the private sector can improve the lives of people in the low-income segment through direct employment, procurement from local suppliers and delivery of affordable products and services.
Companies can contribute to vocational training and capacity building, invest in energy infrastructure and renewable energy solutions, support healthcare initiatives and education, reduce dependence on scarce raw materials, create new businesses to preserve ecosystems (wetland banking, mitigation credit trading, etc.) and help governments embed good governance, thereby increasing regulatory transparency for business itself.
For their part, governments need to establish the necessary framework conditions through policies and legislation, including financial and taxation legislation, business regulation, and clearly defined ownership and property rights.
Governments are also urged to demonstrate their commitment through investment in core infrastructure, and they can encourage investment and engagement on the part of large corporations by creating a favorable investment climate through regulatory transparency.
Besides the publication, the WBCSD provides online material to complement the issues discussed in the report, most notably slide shows and one-page facts & trends sheets highlighting further facts for each topic. These pages will be updated with further topics not included in the core publication: accountability, agriculture, consumption, income and wealth, infrastructure, labor and employment, and population.
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