Poor countries do not want to depend on aid forever. By helping them build a stronger economy, we help them secure a more prosperous future. (Department for International Development statement.)
The Business Call to Action is part of the Millennium Development Goals (MDG) Call to Action, launched in July 2007 in New York by the Prime Minister Gordon Brown. Speaking alongside the UN Secretary General Ban Ki-moon, Mr Brown reiterated the need to encourage the international community to accelerate progress to reach the MDGs. With the target year for meeting the MDGs only seven years away, faster progress is needed now.
The eight Millennium Development Goals to be especially focused upon are:
• Eradicate extreme poverty and hunger
• Achieve universal primary education
• Promote gender equality and empower women
• Reduce child mortality
• Improve maternal health
• Combat HIV and AIDS, malaria and other diseases
• Ensure environmental sustainability
• Develop a global partnership for development
Integral to achieving these ambitions, the UK government and United Nations Development Programme (UNDP) gathers together the leaders of many of the world’s largest companies to showcase their plans in the fight against global poverty. The so-called Business Call to Action will include the CEO’s of Microsoft, Vodaphone, Coca-Cola, and Standard Chartered, all discussing new anti-poverty initiatives. Speaking ahead of the meeting, Peter Sands, Standard’s group chief executive, announced the launch of his firm’s initiative among developing countries to enhance the capabilities of small businesses, characterised by Sands as being “too big to be supported by donors and micro-finance institutions and often too small to be of interest to commercial banks.”
The Business Call to Action is part of a major campaign to accelerate progress towards meeting the MDGs by 2015. 2008 is a crucial year for businesses, governments, non-governmental organisations (NGOs), faith groups and citizens. The time has come to step up activity to meet the MDGs and ensure a safer, developed and more prosperous world. Standard Chartered’s involvement is targeted specifically at Pakistan, where Sands describes small businesses to be a powerful engine of economic growth – as he explains: “We’re launching a pilot project in Pakistan focussing on four things: targeted workshops, including training on aspects such as business plans, accounting, marketing; mentoring for small business entrepreneurs; innovative financing products, and also research into the role small business can play in poverty elevation and economic growth; and also looking at what are the levers that help foster SMEs to grow.”
The Business Call to Action challenges companies to use their expertise to explore new business opportunities. Whether through manufacturing, finance, telecommunications or other activities, businesses can improve their commercial success AND contribute to achieving the MDGs. For businesses, making a profit and ‘doing the right thing’ are not mutually exclusive. Contributing to the MDGs not only helps create a safer and more prosperous world but also helps secure new markets for the future and build a more profitable business environment. In the case of Standard Chartered, as to whether Peter Sands regards the Call to Action as a commercial move, or a purely charitable one, he is adamant that it is both. “We want to make money – and, simultaneously, we want to be a force for good. I believe that our shareholders are best-served when we find things which both make money for them as shareholders, and also serve as a powerful force for good in the communities in which we operate.”
According to the Department for International Development, Developing countries will always be poor unless they can find ways to strengthen their economies.
In developing countries, about 1 person in 5 survives on less than $1 a day; in 2006, 195.2 million of the world’s population were unemployed. A strong and growing economy means more businesses, more money and more jobs. When the economy is growing, more families can afford to send their children to school and get access the right medicines.
A stronger economy also means that more people will be paying taxes. This enables governments to invest in education, healthcare, roads and other public services without needing to rely on rich countries for aid. As United Nations Secretary-General, Ban Ki-moon, says: "We cannot win overnight. Success will require sustained action across the entire decade between now and the deadline. It takes time to train the teachers, nurses and engineers; to build the roads, schools and hospitals; to grow the small and large businesses able to create the jobs and income needed. So we must start now. And we must more than double global development assistance over the next few years. Nothing less will help to achieve the Goals."
