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Worldaware organises lunchtime discussion
meetings on topics related to Business in
Development. The purpose of the discussions is
to promote an exchange of ideas between people in
business and academics, NGO personnel, civil
servants and journalists.
Previous series include:
- Developing Entrepreneurial
Skills
- Feeding the World in the 21st Century
- Energy for the 21st Century
WHO INFLUENCES DEVELOPMENT DECISIONS?
Our series of lunchtime discussions on ‘Who
influences decision-making on development?’ got off
to an excellent start with the meeting on the role
of the House of Commons Select Committee, addressed
by Bowen Wells, MP and ‘Who influences strategic
planning in development ngos?’ addressed by Judith
Randel, Partner in ‘Development Initiatives’ an
independent research organisation on aidpolicy and
ngo-government relations.
The rest of the series is as follows:
On Thursday, 4th February the subject was:
‘Partnerships for development: can business and
the public sector overcome the problems of
differing perspectives?’ The speaker was Lord
Holme of Cheltenham, Advisor to the Chairman of Rio
Tinto.
18th February, Lord Judd, former Minister for
Overseas Development and member of the
International Commission on Global Governance, on
‘Globalization and accountable decision-making
for development.’
Summary
Global interdependence is now a reality in all
areas of life be it in finance, the environment, or
World Debt . The environmental disasters of one
part of the world will have effects everywhere.
Similarly cultural practices influence each other
as we have seen in the case of female circumcision.
This is now a global concern which cannot be
ignored or put down to cultural relativity.
We acknowledge that all human beings have the
same hopes and aspirations wherever they live,
whatever their standards of living.
International law and crime is another area of
increasing interdependence with the establishment
of world security organisations and the threat of
terrorism. Law is no longer viewed solely in the
national context but more widely as in the Pinochet
case. However, the global approach to Human Rights
as gone ahead of the structure which is supposed to
deal with it. There have been difficulties over the
procedure regarding the Pinochet case. In response
to such problems the war crimes tribunals for
crimes committed in Rwanda and the former
Yugoslavia have been set up.
Despite increased interdependency exploitation
is still on the development agenda. The problem of
exploitation of workers by multinational companies
is still debated as is the issue of sexual tourism
following increased travel opportunities.
A further problem facing development strategies
is the arms trade and conflict which often prevents
organisations from taking long term views. Today
90% of conflict casualties are civilians and it is
small arms which pose the greatest threat.
Accountability has to be to the people of
developing countries in making democracy effective
and in building up global political institutions
and try to match global economic powers with global
political powers. For this to occur there needs to
be agreement within national politics on the
importance of globalisation and a move of decision
making into the global arena of organisations like
WTO, OECD, UN.
At present there is an emphasis on measuring and
on quantative education but there is the challenge
to produce citizens who are encouraged to
participate and who recognise the reality of global
interdependence.
The media also performs an important role in
globalisation and can be important for democracy in
leading the debates on current issues. However
there is at present a tendency towards trivia where
commerce is more important than upholding values of
democracy. The media needs to move away from this
downward spiral.
NGOs have an important role to play in enriching
the plurality of society and working along side the
other sectors in promoting democracy and creating
a rich civil society.
11th March, Don MacKenzie, Director of the
African Lakes Corporation, on ‘The changing
influences on strategic planning in multinational
companies’.
Summary
Mandala, a subsidiary of the African Lakes
Corporation, has been working in Malawi for over
120 years and earlier this year was awarded the
GIBB Award for Sustainable Development as well as
being short listed for the Rio Tinto Award at the
1998 Worldaware Business Awards.
Mr McKenzie has been involved with them in
Africa for many years and has experienced the
changes in the continent since independence. Since
the 1960s many countries in Africa have been
experiencing a transitional period moving from
stability to volatility and now are in a constant
state of flux. The economic and political stability
which lasted until the 1960s has been replaced by
volatility. Mr McKenzie referred to a list compiled
by Dr Deol of potential obstacles now facing
investors such as corruption. In 1870s when
companies such s African Lakes forst started none
of todays problems were present but there were
others.
Today, when looking at the investment
possibilities in Africa the important factors
remain constant: there must be opportunities,
finances and implementation. This is to say that
the opportunities to invest must be backed up by
funding and human capital, the people to put the
ideas into practice. The key factor according to Mr
McKenzie is having the right people available.
So why invest in Africa?
Opportunities
This region now experiences the highest GDP
growth rate in the world.
It is important to withstand the volatility and
to restructure the company as the country
restructures. This is particularly true after
independence when it is crucial to recognise the
aspirations of the country.
Funding
Where there are opportunities there will be
funding, although the nature of the funding has
changed and now comes from fund managers. In the
past the companies were based on family connections
and shareholders.
People
The biggest influence on decision making in
African Lakes is finding the people to do the
job.
However one problem African Lakes and others
are facing is that many skilled Africans are now
working outside Africa. The most talented are
seeking employment elsewhere or are training
elsewhere and not returning. The challenge is to
encourage them to return. African Lakes is doing
this by creating an environment in which they would
like to work. There has been a shift away from
employing expatriates towards employing Africans
and creating equal opportunities.This means
challenging issues such as corruption and
maintaining integrity. It also means creating the
opportunities for Africans at management level.
The future of Multinational companies working in
Africa and other developing countries lies in its
ability to adapt to changes in the country’s
structure and also standing united against the
factors which are discouraging the most talented
and able from working in their countries. Creating
an environment which will bring people back means
that both the public and the private sectors have
to combat corruption and ensure that there are good
opportunities for them when they do return.
15th April, George Foulkes, MP, Under Secretary
of State for International Development, on ‘How
the consultative process over the past two years
has affected decision-making in DFID’.
NEW SERIES FOR MAY/JUNE 1999
CUSTOMERS, COMPANIES AND DEVELOPMENT
In a Financial Times interview on 13th April the
director of Greenpeace International, Thilo Bode,
says: ‘Corporations are very susceptible to public
opinion and vulnerable to consumer pressure’. He
goes on to say that companies face a trade-off
between the cost of addressing an issue and the
cost of damage to their image if they do not,
adding: ‘Our interest is to make image a very
expensive issue’.
Can there be not just a negative cost to
companies in ignoring customers’ concerns but a
positive gain from taking account of them? Are
companies aware of customers’ concerns about
developmental, as well as environmental, issues?
For those who have done so has responding to
customers’ concerns brought beneficial results?
Those are some of the questions which we hope will
be discussed in this Summer’s series of Lunchtime
Discussions, on the theme of Customers, Companies
and Development.
Representatives of three companies, all very
different in their size and scope, have agreed to
lead the discussions. They are:
Alex Willcock of the Conran Shop, on 19th or
20th May (to be confirmed)
Jo Fairley of Green and Black’s (Maya Gold
chocolate) on Wednesday, 16th June
Ian Ferguson, Chairman of Birdseye Walls on
Wednesday, 30th June
All the above meetings will be held at the
Royal Commonwealth Society, 18
Northumberland Avenue, London WC2 with whom we
share the organisation of these lunchtime
discussions. They will commence at 1.00 pm, but
will be preceded at 12.30 pm by a buffet lunch with
wine or soft drinks for those who order in advance
(£8.00 payable to ‘Royal Commonwealth Society’
with the reply form attached). If you would like to
attend any of the above meetings, please contact
Christine Price.
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