In 2000, the United Nations made the historic
announcement of eight Millennium Development Goals (MDGs). They were
very specific and had a timeline of 15 years for delivery. Progress on
most of these objectives has been encouraging, but as we look towards
the next round of development goals, we must recognise how the world has
changed since 2000.
The global financial crisis had
a devastating impact on both individuals and the public sector.
Conversely, the rise of the BRIC economies and Africa’s emergence mean
that aid is simply not needed on the same scale as it was before.
Therefore,
we in the emerging economies need to reconsider not only the substance
of the new development framework, but also the implementation process.
In the original MDGs, the private sector was noticeable mostly by its
absence. This time, we must step up as part of the solution and pioneer
new approaches that could hold the key to a more innovative and
inclusive way to deliver development.
Take, for
example, India. While its economy has expanded impressively over the
past decade and half, so has income inequality. Improvements on social
indicators such as malnutrition and hunger have not kept pace with its
growing prosperity, primarily because public spending to tackle these
challenges was simply inadequate.
CSR – a game changer
But
now the Indian government has introduced the first step of a potential
gamechanger, and we in Africa have taken note. A new law enacted this
month makes it mandatory for private corporations to invest at least 2
per cent of their profits in corporate social responsibility (CSR). The
private sector in India now has a unique opportunity to respond to the
collective aspirations of an entire country and accelerate action
towards achieving the MDGs on hunger, health and sustainability. We
applaud India for this.
My own group of companies
also contributes 2 per cent of pre-tax profits to social development.
Yet we go beyond this, and seek to create social impact through all the
businesses we operate. While the Indian government now requires Indian
companies to contribute towards social development, I challenge the
Indian private sector to go further. Take up the challenge and strive to
balance economic prosperity and social wealth which helps ultimately to
create more gainful jobs and all inclusive nation.
In
framing the new development agenda, the private sector must focus on
tackling unemployment and job creation on a massive scale, and on
dramatically improving access to electricity. These goals are critical
to both lives and quality of life, and cannot be accomplished without
collaboration with the private sector.
Development framework
For
example, much of the mandated and voluntary private sector investments
could go into creating many of the 100 million new jobs India will need
over the next decade.
Lack of access to electricity
is also a major challenge that will prevent us from eradicating poverty.
Millions of mothers are giving birth in the dark, life-saving vaccine
deliveries are challenged by lack of power to support their cold chains,
and 90 million children go to school without electricity.
If
we agree that access to electricity and improved livelihoods are vital
components for the success of the post-2015 development agenda, then the
private sector must have a key role to play in its design and
implementation.
For governments, achieving the goals
of the post-2015 development framework will mean enacting reforms and
creating new policies to build more competitive business environments.
We in the private sector must act with integrity, making sure that
markets drive development, not oppose it.
We must
focus on creating and multiplying value in the societies in which we
source, supply and operate, and integrate this into our corporate
governance, our operations, our project development and our profit
calculation, across the value chain.
To truly combat
poverty, we must combine the best qualities of all sectors: the
political will, resources, and convening power of governments; the
compassion, selflessness and dedication of non-profits; the innovation,
expertise, and financial capital of the private sector; and the drive,
creativity and entrepreneurial spirit of the people we seek to help.
Only then can we hope to take on the challenges of the post-2015
development agenda.
(The writer is chairman of the Heirs Holdings group, Lagos)
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