Business leaders must not wait for govts

Kofi A. Annan, Secretary-General , United Nations

Many people have asked me why I agreed to attend the World Economic Forum this year. Some people even seem to think that, by doing so, I aligned myself with the "glitterati" and the global elite, turning my back on the downtrodden masses who -- in these people's eyes -- are the victims of globalization.

If anything, the opposite is true. I saw the Forum as an opportunity to address that global elite on behalf of those downtrodden masses: On behalf, especially, of well over a billion people in today's world who are living without enough food to eat, without safe water to drink, without primary schooling or health care for their children -- in short, without the most basic requirements of human dignity.

I do not believe that those people are victims of globalization. Their problem is not that they are included in the global market but, in most cases, that they are excluded from it.

But it is up to the global elite -- to business and political leaders from the more fortunate countries -- to prove that perception wrong, with actions that translate into concrete results for the downtrodden, exploited and excluded.

It is not enough to say -- though it is true -- that without business the poor would have no hope of escaping their poverty. Too many of them have no hope as it is. They need to be shown, by tangible examples making a difference to their own lives, that economics, properly applied, and profits, wisely invested, can bring social benefits within reach not only for the few but for the many, and eventually for all.

Many business leaders still think these are problems for governments to solve, and that business should concern itself only with the bottom line.

But most of them understand that in the long run the bottom line depends on economic and social conditions, as well as political stability. And increasing numbers are realizing that they do not have to wait for governments to do the right thing -- indeed, that they cannot afford to. In many cases, governments only find the courage and resources to do the right thing when business takes the lead.

Sometimes companies can make a massive difference with really small investments. Take the case of the world's salt manufacturers. Working with the United Nations, they have made sure that all salt manufactured for human consumption contains iodine.

The result is that every year, more than 90 million newborn children are protected against iodine deficiency, and thus against a major cause of mental retardation.

We need many more examples like that -- examples of companies helping to mobilize global science and technology to tackle the interlocking crises of hunger, disease, environmental degradation and conflict that are holding back the developing world.

It is true that, for most such initiatives to succeed, business needs enlightened partners in government. But it need not wait passively for them to appear. In many countries, the voice of business leaders plays a very important role in molding the climate of opinion in which governments take their decisions. Indeed, no one is better placed than business leaders to refute the arguments of protectionists and penny-pinchers.

They are the ones who can make the most persuasive case for opening the markets of rich countries to labor-intensive products from poor ones, and for an end to the farm export subsidies which make it impossible for farmers in poor countries to compete.

And they are the ones who, as leading taxpayers, can argue most persuasively for debt relief and official assistance to developing countries, as well as a chance for those countries to make their voice heard when decisions affecting the world economy are being discussed.

All those things are essential if today's poor countries are to grow and prosper. Of course they need to get their own houses in order, so that they can mobilize domestic resources, and attract and benefit from private foreign investment.

But they must be given a fair chance to export their products, and many of them need financial and technical help -- to build up their infrastructure and capacities -- before they can take advantage of market opportunities. Even when a door is opened, you cannot walk through it without leg muscles.

Next month, at the Monterrey Conference on Financing for Development, both political and business leaders will have the chance to show, by tackling these issues seriously, that they intend to make sure globalization offers the poor a real chance to escape from poverty.

They can strike a truly decisive blow against the forces of envy, despair and terror, by sending out a clear message of solidarity, respect and -- above all -- hope.

The above is the Secretary General's address to the World Economic Forum in New York on Feb. 4.