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Social business could contribute to advancing the Millennium Development Goals

Friday, July 1st, 2011

Another reference to the Millennium Development Goals came from a Bangladeshi contact today.  

A conference in Bangladesh on Social Business Day [28th June] had many participants from around the world. Social business is not yet in the mainstream of United Nations thinking but at this event there were good examples showing that social business works.

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In an exclusive interview with The Daily Star in Dhaka Thomas Stelzer, the assistant secretary-general of the United Nations for policy coordination and inter-agency affairs, who works closely with UN Secretary General Ban Ki-moon on millennium development goals, talked about what he learnt from the Social Business Day celebrations.

He focused on the challenges that lie ahead for achieving MDGs and how social business can complement other efforts in reaching the goals. He said:

”Social business is one of the economic theories, which is achieving a breakthrough — acceptability. People will invest in social business more and more — with a clear purpose. People will know why they are investing in it, which is a departure from the usual way of investment.

”In conventional investment, you have a shareholding value, returns and income, whereas in social business you don’t have all of that and you have to conceptualise why you are investing. In social business, the vital question will be about qualitative, not quantitative growth.

”People do things they are satisfied with and invest for different reasons. For many, it is a game and sport and they always think how they can maximise the outcome of their investments. What is the reason for putting $15-20 billion in your account?

”But in social business, things change. A social business investor looks for satisfaction, but you draw your satisfaction differently, not by accumulating wealth, but by investing the energy of your life in a way that makes you feel good. It is an altruistic, socially-oriented understanding of how you can contribute to today’s economy.

”I think social business decisively contribute to advancing MDGs. Achieving MDGs through social business alone will be a bit narrow. But I am convinced that social business very strongly influences the acceleration of implementation.

“We at the United Nations look at what works. MDGs are at the core of our work. So we look into every possibility of implementing MDGs. Social business seems to be a good option to complement many other efforts. This is how I look at it. So we are not in the business of choosing one over the other. Social business seems to work in this context. ”

To read the Daily Star article click here.

UNA meeting at Birmingham Council House

Tuesday, June 7th, 2011

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After the Deputy Lord Mayor’s welcome, an introduction to the Millennium Development Goals, was read by Bert Gedin. All speakers agreed that progress had been made, but the process has been slowing down and efforts should be renewed. Some points made at this meeting, facilitated by Ravi Kumar, chairman of B’ham UNA, follow.

Former DFID Secretary, Clare Short, listed major conferences which preceded the MDG agreement, including the Beijing event focussing on the empowerment of women, Cairo on reproductive health, Rio on the environment and several major political events, including the overthrow of apartheid and release of Nelson Mandela and the fall of the Berlin Wall.

 

Clare pointed out that the MDGs are related, for example education will be adversely affected if a child has no access to potable drinking water. To release resources, she suggested that some military spending could be transferred to education.

 She described a ‘high point’, when in 2000, 189 world leaders unanimously adopted the “United Nations Millennium Declaration” at the conclusion of their Millennium Summit on 8 September 2000, and concluded that the ‘Arab Spring’ and other changes of mood offer hope that more progress will be made towards achieving the MDGs.

Malcolm Harper, now an independent international consultant after long and distinguished service as director of the United Nations Association, looked back over improvements made since the ‘60s and focussed on the factors inhibiting the achievement of the MDGs: 

  • the rich-poor divide – some multinational companies are far wealthier than some developing countries;
  • poor rural infrastructure – for example, many needy people have to walk many miles to reach medical facilities;
  • aid which is not focussed on quality – for example, increasing the number of children attending school, regardless of equipment provided and staffing levels;
  • corruption – both corruptors and corruptees must be tackled. 

Malcolm believed that less progress has been made towards the goal of gender equality and that this should be urgently addressed. 

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John Cooper, Christian Aid’s Regional Co-ordinator for the West Midlands, spoke next. Christian Aid thinks that the Declaration’s emphasis on empowering people living in poverty was translated into telling poor counties what their priorities should be. Its emphasis on powerful countries and companies meeting their responsibilities to others was translated into a system which fails to hold them accountable for their part in fuelling global poverty. 

Progress has been made with providing clean water but the other MDGs are significantly behind target level in areas, including maternal and child mortality, hunger and access to sanitation.

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Christian Aid’s new report on progress towards the MDGs says that the fundamental reason for the failure of the MDGs to achieve more is that they are based on a flawed understanding of poverty – which ignores the root causes of the problem. They are blind to inequality, unsustainability and the importance of input by ordinary people to decision-making. The report argues that a successor to the MDGs after 2015, which truly reflects the ambition of the Declaration, is vital. 

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Rianne ten Veen, of Green Creation, examined assertions made about the MDGs: 

Too ambitious?

In 1996, the Rome Declaration on World Food Security aimed to halve the number of hungry people by 2015, but MDG 1 merely aims to halve the proportion of people in developing countries who suffer from hunger and has a baseline of 1990 instead of what would be a more ambitious 1996.

Too expensive?

The estimated cost of achieving the MDGs is $189bn but:

  • Annual fossil fuel subsidies: $312bn
  • Iraq War: $648bn
  • Wall Street bailout: $8.5trn 

Lagging because of lack of effort from poor countries? 

No; because of the lack of a level playing field in terms of debt, trade and investment.The amount of debt relief is often deducted from the aid budget. Only 1% of foreign direct investment benefits the poorest and 82% FDI goes into the extractive industries.

The role of the WTO was questioned by Malcolm Harper – is it really acting in the interest of poor countries? Rianne points out that the Millennium Declaration had fair trade as its ambition, but MDG8 offers more obvious advantages for foreign multinationals, and trade liberalisation. 

A brief case study of Argentina was given to illustrate the uneven playing field.The ICSID Convention is a multilateral treaty formulated by the Executive Directors of the International Bank for Reconstruction and Development (the World Bank). ICSID’s website reveals that, in all but one of the first fifty pending cases, wealthy corporations are bringing charges against small developing countries – 24 against Argentina.  The MNCs usually ‘win’. 

MDG7 on environmental sustainability appears to relate only to poor countries, though the rich countries are responsible for the high greenhouse gas emissions and the poor suffer most of the consequences. Rianne concluded that Millennium Consumption Goals (MCG) could help make our development path more sustainable, by focusing on the 1.4 billion people in the richest 20 percentile of the world’s population. They consume over 80% of global output, or 60 times more than the poorest 20 percentile. Instead of viewing the rich as a problem, they should be persuaded to contribute to the solution.  

A vote of thanks was given by Gill Briggs.#

NOTE: The Millennium Consumption Goals proposal was made by Prof. Munasinghe in January 2011 at the United Nations in New York. The background paper for the original proposal “MCG: How the Rich Can Make the Planet More Sustainable” is available at: http://www.mohanmunasinghe.com/pdf/Island-MCG-1Feb20112.pdf.