2005, World Business Council for Sustainable Development (WBCSD)
The Millennium Development Goals present a formidable challenge. In many countries poverty is deeply entrenched, preventing vast reaches of the developing world from realizing their economic and human potential.
As world leaders gather in New York to review progress on the Millennium Development Goals, it is becoming increasingly apparent that we are falling short in meeting these vital targets. If we do not find effective ways to dramatically broaden economic opportunities, the majority of the world's poor will remain locked in poverty.
Research on the impact of official development assistance (ODA) suggests that simply increasing aid will not provide lasting and cost-effective solutions. By contrast, strengthening the role of business - the prime engine of wealth creation - in development efforts offers a tangible, sustainable opportunity to bolster our efforts to combat poverty.
Given the urgency and the sheer scale of the challenge, harnessing synergies between aid and private sector investment is imperative. Directing a substantial portion of ODA towards improving the investment climate in developing nations offers a powerful means to more effectively engage the business community in our concerted global efforts to achieve the Goals.
The members of the World Business Council for Sustainable Development (WBCSD) strongly believe that business is good for development and development is good for business.
We all have a stake in creating peaceful, stable and prosperous societies. Widespread poverty remains an important barrier to sustainability. Sustainable development is a delicate balance requiring that we invest in economic and social progress while preserving the environmental resources on which our ecosystems depend. This demands an integrated strategy that creates wealth and opportunities while respecting our planet.
The private sector is already making a significant positive contribution toward development both through its core business and through pioneering business ventures. Trade and industry foster entrepreneurship at all levels of society, creating broad-based wealth. Across the globe, the private sector is providing jobs that support families, funding governments and overseas development aid through tax revenues and fuelling economic growth.
Our companies are looking for fresh ways to address some of the world's most pressing development challenges. Many are engaged in corporate philanthropy, yet a growing number are moving far beyond this. Whereas philanthropy is inherently limited by geographic and budgetary constraints, the array of business activities our companies are actively pursuing have the potential to bring benefits to the poor in a far more sustainable and scalable way.
Leading companies are offering clear development benefits through investing in new ideas designed to create opportunities for the poor. These initiatives include tailoring products to specific needs, increased sourcing from local suppliers, and involving low-income communities in the delivery of new products and services.
