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Contributions from
the Column
Books and Media
Development after globalisation
Rethinking UN business partnerships
Preventive Policy instead of preventive wars
Education tool kit of rural people
06/2005 |
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UN-Business Partnerships:
Focus on poor countries
Ann Zammit:
Development at Risk. Rethinking UN-Business Partnerships.
Geneva, The South Centre/UNRISD 2003, 362 pp., free of charge,
ISBN 92 9162 020 8 (on the net at http://www.southcentre.org/publications/developmentatrisk/newrisk.pdf)
In this evaluation of Public Private Partnerships (PPPs) and Corporate Social Responsibility (CSR), Zammit’s perspective is firmly focused on poor countries. The book is a must for all those concerned with the social role of transnational corporations (TNC) in the Third World. In some instances, however, Zammit’s harsh assessment of the potential of PPP and CSR seems irritatingly overstated.
A fundamental critique of capitalism guides Zammit’s analysis. Given the dominant Anglo-Saxon model, she assumes that all CSR attempts and rhetoric are structurally inadequate and will not last long. She argues that the model has forced other, more corporatist forms of capitalism into the background because the differing interests of shareholders and stakeholders are not easy to reconcile and the orientation on short-term profits outweighs all other concerns. Moreover, CSR campaigns frequently reflect priorities of advanced nations, an attitude that even the most well-meaning NGOs are not immune to.
Even though many of her objections against CSR seem justified, Zammit also provides evidence that CSR can function effectively if efforts are in tune with other corporate interests. She mentions the influence of ethically-motivated investors in pharmaceutical industries as an example. In this respect, her criticism of CSR is contradictory. But she correctly emphasises that voluntary agreements must be supplemented by state regulations, if nation states are to succeed in achieving a socially-acceptable and environmentally-responsible behaviour of major corporations.
The author criticises the partnerships between the United Nations and private enterprise promoted by UN Secretary-General, Kofi Annan in the context of the Global Compact. Zammit understands PPPs as a component of the “third way”, a term made popular by Anthony Giddens. She questions whether this concept makes sense at all as it does not come up with a definition of the “common good” acceptable to all parties involved. Therefore, Zamitt argues, PPPs will not promote development. Instead, she sees a trend of reintroducing, yet again, modernisation theory to the development debate through the back door. Corporations, in her view, are often a part of the problem and not the solution. Because efforts to anchor social and ecological standards in the WTO have been unsuccessful, Annans’ Global Compact agenda is said to be an attempt to implement them on a different route.
PPPs can hardly be successful unless they bring the interests of developing countries and the United Nations in line with those of private enterprise, Zammit argues, and the willingness of economic actors to cooperate is based on hard business calculations. In this context, they may be motivated by comprehensive risk assessments, the prospects of emerging markets or considerations of public relations. Zammit sees a risk of the Compact becoming a tool of UN-“bluewashing”, which is of particular benefit to the major corporations. Alarmed she notes that UN publications already consider direct foreign investment, in itself, an expression of CSR.
According to Zammit, the best scenario would be for the United Nations to define binding rules for the global economy, taking into account all the different interests and perspectives. In this context, she refers to the “Norms on the Responsibilities of Transnational Corporations” adopted by the UN Human Rights Commission in August 2003. In addition to such rules, developing countries do need a greater autonomy in respect to TNCs and a greater ability to manage direct investment, she argues. Instead of vague partnerships and costly initiatives like the Global Compact, the United Nations should focus on fighting poverty and developing the least developed countries.
Brigitte Hamm
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