2005 is for action: World Economic Forum report

By Our Corporate Bureau | 24 Jan 2005

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New Delhi: 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 organisations 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 six groups of over 40 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 organisations, business and civil society. This year's report is released just ahead of the World Economic Forum's annual meeting in Davos on 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 liberalisation 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."

The work of the Global Governance Initiative is supported by the Centre for International Governance Innovation, Ketchum, the Swiss Agency for Development and Cooperation and the United Nations Foundation.

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