| The Global Compact |
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Kofi Annan
Today, all governments must realize that there are problems that they cannot solve alone. In Annan’s experience, cooperation should exist not only between governments, but between the public and private sectors as well. Annan insisted that international relationships include much more than official diplomatic stations or UN summits. “People to people contact plays a very important role in diplomacy,” he said. “I have seen ordinary citizens―businessmen, professors, etc.―travel the world to establish international relationships.” Annan suggested that these informal, transnational networks will play a crucial role in mobilizing our response to the challenges of the modern world. Annan identified climate change and the global economic crisis as two problems that must be addressed by the entire global community if any progress is to be made. The threat of climate change is all encompassing; individual health and national security are equally compromised by the possibility of ecological catastrophe. Clearly this is not simply a governmental problem, and Annan encouraged private institutions, researchers, and businesses to all consider ways in which they can formulate solutions. Moreover, the global economic crisis has reminded all of us that, in the words of Annan, “We live in the same world.” What happens financially in one country has a huge effect on all other countries. Annan gave the example of the many underdeveloped African nations, thought to be isolated from international economic issues, that have suffered because of the financial crisis unfolding in wealthier nations. Echoing calls for widespread financial reforms, Annan urged a return to the values espoused by Adam Smith in his early theorizing: solidarity, prudence, and public spiritedness. He continued, “Any financial system which does not factor in the needs of the poor will not be sustainable.” In a spirit of concern for the global poor, Annan recounted the 2000 signing of the Millennium Declaration in New York. World leaders gathered there to pledge to their people, to the global community, and to each other that they would uphold the principles of human dignity and equality at the global level. Annan emphasized the importance of universal values in this declaration, recognizing that the identification of common values will be essential to international relations in the 21st century. Annan also mentioned the importance of the Millennium Development Goals. These eight objectives were born out of the values of the Millennium Declaration and created an action plan for development. Annan proudly noted that this was the first time that time-bound and quantifiable targets for development had ever been internationally agreed upon. With the affirmation of these Development Goals, world leaders agreed to prioritize the reduction of poverty and hunger, the achievement of universal primary education, the promotion of gender equality, and the improvement of global health. Annan saw in these development goals an expression of the universal foundation for the growth and prosperity of nations, which he compared to the universal human values affirmed by the Millennium Declaration. He recapitulated: “There can be development without security, no security without development, and no society can prosper without respect for human rights.” Also in 2000, Annan launched the Global Compact at the Global Economic Forum in Davos. He explained the compact as a strategic initiative for businesses committed to aligning their operations with universal principles. Essentially a Millennium Declaration for the private sector, Annan thought it important that businesses have similar opportunities to mobilize their shared values and address the challenges of the globalized future. Today, 7500 businesses in 135 countries have signed the compact, agreeing to protect human rights, uphold the freedom of association and effective recognition of the right to collective bargaining, eliminate all forms of forced and child labor, and eliminate discrimination. Annan added that ecological responsibility was also a part of the initiative, and participating businesses agreed to take precautions towards the use of the environment and to invest in the development of environmentally friendly technologies. Annan provided several examples of productive cooperation between public institutions or universities and private companies since the establishment of the compact. The private sector has been able to help raise over 22 billion dollars for the fight against HIV, malaria, and tuberculosis. At a meeting between the WHO and the chairmen of the seven largest pharmaceutical companies, Annan negotiated for the availability of HIV medication at reduced prices for nations devastated by the epidemic. In his address to the Institute, Annan cited this sort of collaboration as essential for navigating the global problems of the future. The private sector has the potential to make incredible contributions to international problems; Annan offered the Gates foundation as an example. The foundation is currently working with one of the pharmaceutical companies on a vaccine for malaria. As another example of this cooperation based on shared values, Annan discussed TNT, a Dutch logistical company. TNT is working with the World Food Program of the UN to distribute food to disaster areas around the world. When food is delivered to Haiti or to Indonesia, TNT offers millions of dollars worth of free logistical advice. Private companies have teamed up with the Rotary Club to eliminate polio. Annan enumerated various such examples, emphasizing that it is not enough for nations to develop official, diplomatic relationships; the private sector must be engaged collaboratively as well. “Partnership is the name of the game,” Annan concluded. Partnerships between the private and public sector, between civil society and businesses, and between private foundations and businesses, are all necessary considering the remarkable complexity of the globalized world. Annan expressed his hope that scientists, public officials, and corporations working together could develop more drought resistant seeds, plan for better management of water, and regulate the environmental impact of industry. Even the telecom industry could be involved: the availability of cell phones makes a huge difference in local economies, as small farmers are able to maximize profit by selling their produce themselves. Annan stressed that businesses in all industries must involve themselves with these issues, for government alone cannot effect the necessary changes. Only by forming effective partnerships, Annan insisted, can we face the challenges of today’s world.
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EVENT REPORT - April 12, 2010