[asia-apec 1117] UNICEF Statement: Public, Private and Civil Society

UN-NGLS (NY Office) ngls at undp.org
Sat May 8 03:34:22 JST 1999



Below is the text of an address to the Harvard International 
Development Conference, in Cambridge, Massachusetts, USA, on 16 April 
by UNICEF Executive Director Carol Bellamy, which we think may be of 
interest to you.  
_____________________________________________________________
            
           Public, private and civil society 

            Statement of UNICEF Executive Director Carol
            Bellamy to Harvard International Development
            Conference on 'sharing responsibilities: public,
            private & civil society' 

            Cambridge, Massachusetts, USA, 16 April 1999 

            Ladies and gentlemen, the United Nations was
            founded to end the scourge of war; to reaffirm faith
            in fundamental human rights; and to promote social
            progress and better standards of life in larger
            freedom. 

            For more than half a century, the UN and its
            agencies - including the United Nations Children's
            Fund - have vigorously pursued these and related
            objectives, and they have done so by working
            almost exclusively with governments. 

            But the end of the Cold War and the growing
            economic interdependence among nations have led
            to a profoundly important perceptual shift. 

            As Secretary-General Kofi Annan put it recently,
            we now know that peace and prosperity cannot be
            achieved without a broad expanse of active
            partnerships - partnerships that involve sharing
            responsibilities not only with governments, but with
            international organisations, civil society and the
            business community. 

            There has been particular attention paid to the
            necessity of a UN alliance with the private sector, a
            theme that the Secretary-General addressed a few months
            ago at the World Economic Forum in Davos, Switzerland. 

            "In today's world," he told corporate leaders, "we
            depend on each other. The business of the United
            Nations involves the businesses of the world." 

            Indeed, it is abundantly clear that without
            development and peace, trade and investment
            cannot occur and business cannot grow. 

            By the same token, thriving markets can help create
            the conditions necessary for development and peace
            - by creating jobs, by improving standards of living, and
            by making it possible for developing countries to share in
            the benefits of the world economy. 

            Let no one doubt the urgency of this task. 

            In a global economy worth nearly $30 trillion, a
            billion and a half people - a quarter of the human
            race - are living in conditions of almost unimaginable
            suffering and want. Six hundred and fifty million of them
            are children - a figure more than twice the population of
            the United States. 

            Never in history have we seen such numbers. And
            never in history have we seen overall aid to the
            world's neediest countries fall to such shameful levels as
            they have in recent years. 

            Yet there has never been a time when development
            assistance has been more needed - or the evidence
            of its past success more compelling. 

            The United Nations System has been active in
            promoting a variety of approaches to development
            and in laying the groundwork for greater
            development cooperation - including cooperation to
            promote the survival, protection and full
            development of the world's children. 

            With aid levels plummeting as the number of people
            trapped in absolute poverty continues to rise, it is
            clear that the mission of UNICEF - and that of the
            entire UN System - is more relevant than ever. 

            Only the United Nations, with its universal and
            comprehensive mandate, can offer a central forum to
            address sustainable human development in all its
            aspects - and to build the consensus needed to
            achieve it 

            Only the United Nations has the operational
            potential to address the global imperatives that must be
            met - from humanitarian relief and peacekeeping to
            peace-building and development cooperation. 

            And amid all this, the UN is working to promote
            private-sector development and direct foreign
            investment. It is helping countries to join the
            international trading system and to enact legislation
            aimed at encouraging responsible business practices. And
            it is promoting micro-finance for women, small-traders and
            entrepreneurs. 

            As the Secretary-General has said, business has a
            compelling interest in the success of these efforts, for
            thriving markets and human security go hand in hand. We
            cannot have one without the other. 

            One widely talked-about rationale for the UN
            working in partnership with industry and the business
            community is based on the assumption that the resources of
            government are not plentiful enough - and that if
            development is to succeed, we must look for those
            resources in the private sector and in the marketplace. 

            I would submit that this is a very poor rationale for
            partnership. 

            It is poor for two reasons: first, it is based on the
            mistaken idea that governments should be allowed to shirk
            their responsibility as the leading players in development
            - an issue that I want to return to shortly. 

            Second, it is a poor rationale for partnership
            because it is based on a limited and almost
            patronising view of what the private sector can bring to a
            relationship with the UN - namely, money. 

            The problem is that by itself, money is a poisonous
            commodity - it makes business and industry suspect
            that they are being courted for their dollars, not their
            capacity. 

            In fact, the private sector has an immense store of
            knowledge and experience. It has vast numbers of
            talented and insightful people. 

            And numerous companies have undertaken
            beneficial and innovative projects in countries in
            desperate need of help. 

            Moreover, the private sector has a major role to
            play in the realisation of human rights, from such
            issues as child labour practices to gender equality
            and protection of the environment. 

            Obviously the UN System looks to the private
            sector as a source of funding for multilateral
            development assistance - the kind of assistance that
            has always sought to address basic human needs,
            beginning with poverty eradication and the needs of
            the most vulnerable people - especially children. 

            But it is also important to see the private sector in a
            more expansive context, as a source of knowledge and
            expertise for multilateralism. 

            And we in the United Nations, we on the multilateral
            side, on the development side, must also be mindful
            of something else: that in dealing with the private
            sector, we cannot be uncritical. 

            To begin with, it is dangerous to assume that the
            goals of the private sector are somehow
            synonymous with those of the United Nations,
            because they most emphatically are not. 

            Business and industry are driven by the profit motive - as
            they should be and must be, both for their shareholders
            and their employees. 

            The work of the UN, on the other hand, is driven by
            a set of ethical principles that sustain its mission -
            principles set out in the Charter of the United Nations,
            in the Universal Declaration of Human Rights, in the
            Convention on the Rights of the Child, and elsewhere in
            the galaxy of international instruments and treaties that
            have been promulgated since the UN's founding in 1945. 

            The founders had two things on their minds at the
            end of the Second World War. One was to prevent
            a third world war. The other was to avoid another
            global economic depression and to ensure universal
            economic and social well-being. 

            That vision was based on a set of universal values:
            freedom, justice and the peaceful resolution of
            disputes; social progress and better standards of
            living; equality, tolerance and dignity. 

            Just as the private sector is not embarrassed by the
            fact that it is driven by profits, the UN is hardly
            self-conscious that its work grows out of underlying
            ethical principles. 

            It is perfectly right and legitimate for both to be
            pursuing their singular mandates - and where they
            can work together as partners, so much the better.
            But in coming together with the private sector, the
            UN must carefully, and constantly, appraise the
            relationship. 

            It is one thing to say that we want to work in
            partnership with corporations that recognise their
            responsibility for human rights, who care about
            labour codes, working conditions, environmental
            protection and the like. But these are generalities. 

            The heart of the matter is the exercise of "due
            diligence." The UN must look carefully at these
            companies. This does not mean putting them under a
            microscope, fixing them with a degree of scrutiny
            that few of us could pass. Rather, it means
            identifying organisations whose behaviour, on
            balance, shows evidence of a willingness to exercise
            corporate responsibility. And these are the
            businesses with which the UN can enter into fruitful
            partnerships. 

            Without due diligence, one runs the risk of becoming
            associated with companies whose past records
            suggest that they may not be the best partners. At
            UNICEF, where I will start my fifth year as
            Executive Director next month, we have avoided
            such situations, despite the fact that UNICEF - now
            three years past the half-century mark - has the most
            extensive corporate involvement of any single UN agency. 

            The reason is simple. We are exceedingly careful.
            For instance, UNICEF attaches ethical strings to its
            supply contracts, favouring companies that pledge to
            avoid links with such activities as landmine
            production and exploitative child labour. We do not
            deal with cigarette companies or accept
            contributions from manufacturers of infant formula. 

            And with these sorts of ground rules as a foundation, we
            can enter into whatever partnerships make sense. 

            For example, Warner Brothers, Turner Network
            Television, Time for Kids and Coinstar are all key
            supporters of the Trick or Treat for UNICEF
            campaign. And companies like British Airways, the
            Sheraton and Westin hotel chains and American
            Express are involved in UNICEF marketing efforts
            linked to specific fund-raising activities. 

            In half a century, we have learned a few things about
            private-sector partnerships. We have learned that they
            should not exceed expectations. They should not be based
            on unwarranted assumptions. And they should not be focused
            solely on money, for that will surely sour the
            relationship. 

            Let me turn now to another aspect of partnerships
            for development, those involving non-governmental
            organisations, or, as they are commonly known,
            NGOs. 

            It is a truism that NGOs, in their numbers and
            diversity, have proved themselves absolutely
            indispensable in development efforts, especially
            given the perpetual crisis of multilateralism - a crisis
            that tends to revolve around funding and humanitarian
            capacity. 

            But however generous and expansive their motives,
            many are not immune from legitimate criticism. For
            example, some humanitarian NGOs have come
            under fire because their work and very existence
            seems tied to catastrophe, and catastrophe alone. 

            And there is also criticism of the NGO community
            for not being sufficiently sensitive to the fact that in
            some areas of NGO work, there is a great deal of overlap
            and redundancy among organisations, whether national or
            international. 

            That said, it is also true that NGOs have not, in
            many cases, been sufficiently well treated by those
            who take the crisis of multilateralism seriously - and by
            well treated, I am not talking so much in terms of money
            as I am in terms of the recognition that NGOs deserve for
            what they do, and how well they do it. 

            For example, NGOs have not been consulted nearly
            enough about the humanitarian imperative. They
            have not been part of the decision-making process
            over how priorities are set in the field. They have too
            few opportunities to meet with major multilateral
            agencies, and to help in devising ways to pool efforts and
            share operational authority. 

            That is why, in 2001, when UNICEF holds its next
            great event for children, we intend to make it an
            occasion in which NGOs will be welcomed as full
            members, along with other representatives of civil
            society, the private sector, governments and UN
            agencies. 

            This event, the first major meeting of what we are
            calling the Leadership Initiative for Children, will
            mark the start of a collaborative effort to draw up
            new global agenda for child survival, development
            and protection in the 21st Century. 

            It will also stand as the culmination of the process
            that began in 1990 with the World Summit for
            Children, where a handful of NGOs were granted
            token representative status by governments - to the
            Earth Summit, where NGOs were directly involved
            for the first time in preparatory talks as well as the
            Summit, and on through to the Social Development Summit in
            Copenhagen, the Beijing Women's Conference, and the
            Habitat Conference in Nairobi - all of them events where
            NGOs moved closer and closer to full partnership. 

            Now let me turn, in conclusion, to the central issue
            of sharing responsibility: the matter of partnerships with
            the public sector - namely, the governments. 

            There has been considerable discussion in recent
            years of the potential for ending the crisis of
            development assistance through the natural workings
            of the global market economy. The chief evidence
            cited is the fact that private-sector funding and
            investment in developing countries has been rising
            dramatically. 

            This is certainly true. Even as development overall
            aid has dropped, private capital flows have
            increased five-fold, and now represent close to 80
            per cent of the total resources that go to developing
            countries each year - nearly twice what it was in 1990. 

            But private capital seldom gravitates to the very
            neediest countries - in 1995, for example, all but 20 per
            cent of total private flows went to just 12 developing
            countries, while the 49 countries in sub-Saharan Africa
            received only 5 per cent. 

            Moreover, in those countries that it does reach,
            private capital often does little for the poor. It is true
            that in some places, transnational corporations do provide
            income opportunities for many people, including some of
            the literate poor. But for the most part, private capital
            is used to finance hard infrastructure, like roads,
            bridges and communications. Only rarely do we find it
            supporting the development of such essential social
            services as primary health care, or basic education. 

            More to the point, private capital will not find its
            way to countries that lack an adequate social and
            economic infrastructure - which is precisely what
            multilateral aid is aimed at helping poor countries to
            build. 

            Investors are well aware that there will be no return on
            their investment unless a society has the capacity to put
            its resources to effective use. 

            This is why it is so important to help countries to
            improve health care services; to be able to offer
            basic quality education for all, especially girls; to have
            clean water and adequate sanitation; to practice good
            governance - and to use communication and information
            technology to promote knowledge and greater understanding
            among peoples and cultures. 

            All of this is not only smart social policy - it is smart
            business. 

            Multilateralism has always sought to address basic
            human needs. And it is now particularly consumed
            by questions of poverty eradication - the result of
            the mandates from the continuum of United Nations
            conferences on various aspects of development in
            the first half of this decade. 

            The pledges made by governments at these
            conferences were reaffirmations of their fundamental
            commitment to provide an agreed-upon minimum
            level of development assistance to poor countries.
            The centrepiece was the 1969 pledge by the
            industrialised countries to earmark at least 0.7 per
            cent of their Gross National Product (GNP) for
            Official Development Assistance (ODA). 

            Yet at a time when even modest increases in aid to
            the world's poorest countries could save the lives of
            millions of children and women, Official Development
            Assistance is in a state of virtual free-fall. 

            The collective ODA of the 29-nation donor group
            known as the OECD - which includes the United
            States - has fallen to a record low of 0.22 per cent
            of GNP - less than one-third of the 0.7 per cent
            target. And since 1992, the G-7 nations'
            contribution to the general ODA fund has
            plummeted about $15 billion - a reduction of almost
            30 per cent in real terms. 

            Ladies and gentlemen, let us call this situation by its
            proper name: it is a scandal. The developed world, which
            is benefiting so vastly from globalisation, cannot be
            allowed to be deficient in its obligations to the
            developing world - which are not merely compassionate and
            generous but also a recognition that only by building an
            adequate human and developmental infrastructure in the
            developing world can you have a world economy that is one
            day stable and vibrant. 

            For all the importance of NGOs and other
            representatives of civil society, for all the potential
            value of development partnerships with business and the
            private sector, we must never lose sight of the fact that
            it is governments that remain the primary actors in this
            fundamental relationship for development. 

            It is the governments that have thought long and hard
            about the development imperatives; it is they who have set
            the targets and made the commitments. It is governments
            that sit on the executive boards of multilateral agencies.
            It is governments that think about development as a matter
            of social policy, who have development ministries and
            foreign ministries that fashion the world's humanitarian
            and political agendas. 

            For practical, legal, and moral reasons, governments
            must be held to their commitments. No one should
            pretend that simply getting more money from the
            private sector will compensate for the failures of the
            public sector. 

            The phenomenon of globalisation has opened the
            possibility of untold riches. But it has also shown its
            power to trigger the progressive impoverishment of large
            societies, such as Indonesia, where tens of thousands of
            families have fallen into abject poverty in the last two
            years. 

            There is a belief among many people that
            globalisation is an ineluctable process, as irresistible
            and beyond human control as the tides. 

            In fact, it is the product of deliberate, day-to-day
            policy choices. And that is why, ladies and
            gentlemen, we must not let governments off the
            hook. 

            Thank you.



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