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26 January 2005
Governments Could Better Use Private Sector, Economic Forum Says
2005 could be year of change in progress on global goals, it adds
Governments could use the private sector more effectively to tackle global problems such as poverty, peace and environmental protection, according to a group comprising many of the world's business, political, intellectual and other leaders.
In a January 24 press release announcing its Annual Global Governance Report, the World Economic Forum (WEF) said 2005 "could be the year of change" in progress toward meeting global goals, particularly the eight Millennium Development Goals (MDGs) endorsed by 189 national leaders in 2000.
The WEF is holding its annual meeting January 26-30 in Davos, Switzerland.
The MDGs are centered on reducing poverty and hunger; improving education, health, gender equality and environmental sustainability; and establishing an international trade and finance policy framework that favors development. The goals seek significant progress in these areas by 2015.
The world's leaders are "breaking their promises" to focus on the MDGs, according to the WEF.
"Humanity is doing less than half of what is needed to build a more prosperous world," it said.
However, the corporate response to the recent tsunami disaster in South Asia and East Africa shows that the private sector has much to contribute toward meeting global goals, it said.
Even though responsibility for achieving global goals rests primarily with governments, WEF said, the business sector can contribute by:
-- developing affordable goods and services and finding ways to deliver them profitably to the world's poor;
-- partnering with philanthropic organizations in activities that have both social and business benefits, such as HIV/AIDS treatment programs and water projects; and
-- engaging with governments on issues of public policy, rule making and institution building.
The United States supports the development of more private-public sector partnerships in making progress toward global goals. Several U.S. officials will address WEF members at the annual meeting.
Following is the text of the WEF press release:
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2005 Is The Year to Act, Says Global Governance Report
Annual Global Governance Initiative Report urges governments and private enterprises to seize new opportunities to solve global problems
24 January 2005 -- Geneva, Switzerland
A new report issued today by the World Economic Forum makes clear that the world’s leaders are breaking their solemn promises to tackle global problems from poverty to peace to environmental protection. The report by the Forum’s Global Governance Initiative (GGI) assesses the efforts of the world’s governments and corporations over the past year, demonstrating that the world remains far off track to achieve its most important goals. But it also shows that 2005 could be the year of change, especially if the formidable energies of private enterprise are harnessed more effectively.
The recent response by international corporations to the tsunami disaster shows that the private sector has much to contribute toward global goals. Some of the world’s biggest organizations are supporting the relief effort through sizable donations and by providing essential equipment and services within their field of expertise.
Gareth Evans, President of the International Crisis Group and Chair of the GGI’s expert group on peace and security, points out that the tsunami may help to generate much-needed support for better global collaboration: "The tsunami disaster has been the world’s first truly global catastrophe, dwarfing any other single event in the emotion and support it has generated, and demonstrating graphically that we are indeed one human family, ever more susceptible to common risks and with a shared responsibility to tackle them."
The GGI report encourages all nations to harness the international sentiment for change and concentrate their efforts on achieving significant progress towards the security, humanitarian and social goals set out in universally adopted agreements such as the 2000 Millennium Declaration and the 2002 Johannesburg Summit.
The work of the Global Governance Initiative is conducted by seven groups of over 50 experts from around the world, who consult with a wider network of experts in their field. The initiative strives to bring greater transparency to the efforts being made to achieve these goals by governments, international organizations, business and civil society. This year's report is released just ahead of the World Economic Forum's Annual Meeting in Davos -- held under the theme "Taking Responsibility for Tough Choices". The findings of the Global Governance Initiative will form a key part of the discussions at the Meeting.
But, the analysis of 2004 shows that few in either the public or the private sector are doing anywhere near what is necessary to get the world on track. In a series of scores using a zero-to-ten scale, the world has earned failing grades. In all issue areas, from education to hunger to peace to human rights, humanity is doing less than half of what is needed to build a more stable, prosperous world.
Although the responsibility for achieving global goals rests primarily with governments, the report argues that the goals cannot be reached without the active participation of the private sector. A special chapter on the private sector shows that business can contribute in four crucial ways:
-- Through developing new products to tackle global challenges and finding profitable ways to deliver affordable goods and services to the poor
-- Through hybrid business/philanthropic activities that have both social and business benefits, e.g. HIV/AIDS treatment programmes and public-private water partnerships
-- Through strategic corporate philanthropy and social investment, especially on issues most relevant to the particular company’s expertise and other assets
-- Through responsible business engagement in public policy dialogue, rule-making and institution-building.
Some businesses already take these responsibilities seriously, and the report tells many of their stories. But such enterprises represent only a tiny fraction of the private sector.
Ann Florini, Senior Fellow at the Brookings Institution, who directs the project, concludes: "Economic integration, political liberalization and technological innovation are creating all the right conditions for humanity to do much better. But the opportunities could all too easily slip through our fingers. This report shows not only what we are leaving undone, but what we can now do."
Richard Samans, Managing Director of the Forum’s Global Institute for Partnership and Governance remarked: "The report makes clear that 2005 will be a make-or-break year for the Millennium Goals. Many of the goals have a deadline of 2015. If the international community is going to take them seriously, it needs to begin applying much greater effort and partnership now."
About the Annual Global Governance Initiative
The GGI report is a culmination of a year-long independent analysis by six groups of some of the world’s leading experts in peace and security, poverty, hunger, education, health and environmental protection and includes analyses of the successes and failures to date.
The World Economic Forum is the foremost global community of business, political, intellectual and other leaders of society committed to improving the state of the world.
Incorporated as a foundation, and based in Geneva, Switzerland, the World Economic Forum is impartial and not-for-profit; it is tied to no political, partisan or national interests. The Forum has NGO [nongovernmental organization] consultative status with the Economic and Social Council of the United Nations. (http://www.weforum.org/)
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(Distributed by the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)
