This report from the World Business Council for Sustainable Development (WBCSD) encourages business to think differently about the role they can play in supporting growth within developing economies. It argues that by contributing across a range of development focus areas businesses can not only aid development but do so in a way that can help their own profitability. Benefits include:
- The creation of a healthier more skilled workforce;
- Improved local relations and licence to operate;
- The creation of new markets; and
- Greater efficiency through improved infrastructure and a more vibrant local market.
Whilst many of the development areas highlighted in the report are not specifically related to human rights they all have implications for the provision of basic human rights to the world’s poorest residents.
Ecosystems
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Increased demand for raw materials, combined with impacts of land clearing and climate change are making vulnerable populations further exposed to food and water scarcity. Businesses can assist through the development of product certification of new markets like fair trade and putting an economic value on ecosystems and building markets such as water trading, or even threatened species banking. |
Education & Training
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Knowledge is a primary driver of economic development and human progress. By supporting education amongst their workforce and the community more broadly businesses can substantially increase the local skill base. Whilst education is the key responsibility of government business can contribute to curriculum development, private public partnerships for education infrastructure and the provision of non-core services that can make education too expensive for many families including transport, uniforms and supplies. |
Energy
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Access to reliable energy sources is an important precursor to development. But with global energy demand expected to increase by 50% by 2030 there are also pressures to ensure that this is done cleanly. Businesses have a role to help move toward a low-carbon economy by reducing their dependency on fossil fuels, improving their energy efficiency and developing markets for affordable energy solutions for the developed and developing world alike. |
Enterprise Development
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A vibrant small and medium enterprise sector can play an important role in the overall economic health of a nation. For larger organisations they can provide valuable local insight as both suppliers and distributors. Business can play an important role in mentoring, transferring technology and capacity building with local businesses. Governments also have an important role in ensuring that SMEs do not fall between the gap of tax incentives and subsidies that often apply to large businesses and the micro finance opportunities available to single operators. Similarly, cumbersome processes and bureaucracy for registration and taxation can also make life difficult for SMEs and discourage them from participating in the formal economy. |
Financial Flows
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Similarly whilst micro finance and private equity flows have increased, approximately 80% of the population of the least developed countries are unbanked . This is often compounded by poor processes and high illiteracy rates. Businesses can assist by providing advice on governance and regulatory frameworks, making direct investments in local businesses and developing new financing markets. |
Governance
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Nations with good governance typically enjoy well-enforced, favourable regulatory frameworks, low levels of cumbersome bureaucracy and clearly defined property rights. Conversely in the developing world burdensome bureaucracy can make it difficult to start businesses, disproportionate taxation systems discourage formal participation in the economy and corruption is often commonplace. Where appropriate, businesses should engage with government to help shape governance frameworks, offer training for bureaucrats and entrepreneurs along with systems support and lead by example by integrating the principles of good governance within their own polices and practices and establish local business-led forums. |
Health
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Good health is more than just the absence of illness but enables people to thrive and fully participate in economic and social life. Businesses can contribute to improved health standards by providing equipment and infrastructure, providing health insurance for employees, funding research into health issues in the local community and supporting education campaigns. |
Mobility
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Mobility refers to the ability to connect people and goods to each other and to markets. This can be physically through transportation networks or virtually using information technology. Business can form private public sector partnerships to improve transport infrastructure, market affordable mobility solutions, preferably in a fuel efficient way, contribute to effective urban planning and locate facilities near transport hubs. |
Trade
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Trade is a key way of connecting people of all income levels. However it is more difficult for people of developing nations due to their reliance on primary commodities, poor transport networks, high transit taxes and tariffs and subsidies amongst trading partners. By helping to modernise transport and logistics infrastructure, technology and skill transfers, influencing trade policy and developing niche markets such as fair trade, business can make a positive contribution. |
Water
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After energy, water is one of the largest markets in the world. Access to safe drinking water and sanitation remains a key issue for the developing world, in part due to a lack of infrastructure. This is another area where private public partnerships can contribute along with the application of leak detection technologies in local factories and the introduction of water efficient technologies. In addition are market based mechanisms, point-of-use technologies in remote areas and the creation of partnerships to maximise water as a shared resource. |
By encouraging innovation and working together with local governments and communities on these issues, business can be done in new ways that bring sustainable development to all.
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