The round up of news in this section highlights the complexities of corporate involvement in the international development agenda. The variety of actors involved – overseas aid agencies, social enterprises, and international NGOs – and the growing uncertainty over the link between trade and prosperity, makes corporates tread in this field with trepidation.
Against this backdrop, partnering with government agencies is an attractive proposition for many firms that want to support development initiatives but lack the expertise and on-the-ground experience. Some development agencies are better at advertising their partnership potential than others, which is why the guide to engaging international development agencies published by BCLC, and co-authored by Corporate Citizenship’s David Logan, is so timely. It should help more businesses understand the role of development agencies and the opportunities on offer for the private sector.
Development agencies are not the sole route to involvement in this sector, but knowing where to start can be difficult. It is worth considering the spectrum of engagement opportunities. At one end of the scale are the direct intervention programmes that deliver basic facilities such as food, housing, sanitation and education, and which are typically funded through traditional community investment budgets. At the other end of the spectrum sits R&D investment in products aimed at, and made by, the poorest communities. Knowing where to position oneself along this spectrum is tricky, but a firm may find it useful to start with the more traditional CCI routes to gain experience in the sector before embarking on more adventurous undertakings. Either way, there is a steadily expanding body of literature – usually case study-based – to help firms learn from the experiences of others – DFID and the World Business Council for Sustainable Development are both good starting points for background reading material.
Ita is a consultant at Corporate Citizenship. Email her to find out about community investment, impact measurement and report writing; ita.mcmahon@corporate-citizenship.com.
Globalisation does not help poor workers according to the WTO
A joint study by the International Labour Organisation and the World Trade Organisation (WTO) released on October 12 found a high occurrence of informal employment in the developing world suppresses countries’ ability to benefit from trade opening by creating poverty traps for workers. The study researches the links between gloablisation and informal employment and found that informal employment is widespread in many developing countries which results in little job security, poor income and no social protection. “Trade has contributed to growth and development worldwide. But this has not automatically translated into an improvement in the quality of employment. Trade opening needs proper domestic policies to create good jobs. This is all the more evident with the current crisis which has reduced trade and thrown thousands into informal jobs,” said WTO Director-General Pascal Lamy. Contact: World Trade Organisation www.wto.org
New method of delivering emergency aid saves agencies time and money
Research by Cardiff Business School (CBS) published on October 7 investigates how delivering aid to disaster areas could become more sustainable. Presently, up to 60% of the estimated $12 billion annual budget of disaster relief is spent in Africa, although less than 10% of the goods supplied are made there, with the rest imported from other countries, mainly China and India, but also from Europe and North America. The analysis found that Advance Aid’s model of the emergency relief supply chain is more efficient and cost effective than other more conventional methods. Advance Aid is an NGO which promotes producing emergency relief goods in areas where disasters are most likely to occur. This creates local employment, cuts spending on aid and also significantly reduces the carbon footprint that is generated by aid agencies that import aid from abroad. Contact: Cardiff Business School http://www.cf.ac.uk/carbs/ Advance Aid www.advanceaid.org
US Chamber’s BCLC releases international aid report at Global Citizenship Conference
On October 1, the US Chamber of Commerce Business Civic Leadership Centre (BCLC) released a report that analyses how 10 international aid agencies and the China development model interact with the private sector and affect market development around the world. The report, ‘Partnering for global development: the evolving links between business and international agencies’ aims to improve public-private partnership mechanisms. It provides understanding of how social investments are being made in emerging markets and aims to help businesses understand how agencies interact with the private sector. The research also aims to improve how potential partners are identified, which can expand both sectors’ ability to improve the livelihood of people living in developing countries. The report was co-authored by Corporate Citizenship’s co- founder David Logan. Contact: US Chamber of Commerce Business Civic Leadership Centre www.uschamber.com
Tiny tax on banks could protect millions from poverty
G20 finance ministers should levy a new tax on financial transactions to help millions of people plunged into poverty by the economic crisis and climate change, Oxfam said on November 5, ahead of the group’s gathering in St Andrews, Scotland. According to Oxfam, urgent action is needed to help developing countries cope with the global slump, which is pushing 100 more people into extreme poverty every minute and leaving governments struggling to pay for clinics and schools. More than $600 billon could be raised annually by a global tax of 0.05% on currency, share and derivative transactions. Revenue from the tax could also be used to help poor countries cope with climate change and to reduce their own carbon emissions. Funding for poor countries is currently a major stumbling block in negotiations as the clock ticks towards the Copenhagen summit in December. Contact: Oxfam www.oxfam.org.uk
COMMENTS