UNITED NATIONS: U.N. to Create New Role for Private Sector

By Thalif Deen Reprint | | Print |

Thalif Deen

UNITED NATIONS, Apr 23 1996 (IPS) - The United Nations is seeking to create a new role for the international business community within the world body.

The U.N. Conference on Trade and Development (UNCTAD) has proposed the establishment of a ‘Development Senate’ to inject elements of civil society into the work of the Geneva-based U.N. body.

“If agreed upon, the new body will be the first of its kind where business can truly interact with the United Nations,” George Kell of UNCTAD told IPS.

The proposal comes as the United Nations seeks new sources of funding and new actors to resolve the development crisis caused mainly by an erosion of multilateral assistance from Western donors.

The ‘Development Senate’ would consist of a maximum of 100 members from the international business community who would play dual roles as participants and sponsors. The proposed Senate would be in the form of a Foundation, established and managed by UNCTAD.

“The United Nations needs partnership with the business community,” Kell said. “How else could it tackle the most pressing economic problems of the present?”

Trade and investment are the only viable answers for the current crisis, he said, adding that private firms, both large and small, are particularly well equipped to geographically multiply the opportunities offered by the globalising economy.

Kell, however, warned that one of the problems the United Nations faces is its image.

“Many business executives still are of the view that the United Nations is promoting unwanted regulations,” he said.

He pointed out to the long-dormant U.N. Code of Conduct on Transnational Corporations which was challenged by the business community at large.

Kell said that several hundred business executives were taking part in two parallel events coinciding with a major U.N. conference — UNCTAD IX — scheduled to open April 27 in South Africa.

One event, called Africa Connect, is designed to boost investment and networking in Africa. Business leaders from African companies and transnational corporations, African chambers of commerce and industry, and investment promotion agencies will identify opportunities for trade and investment.

A second event, sponsored by International Business Machines (IBM) and others will introduce UNCTAD’s Global Trade Point Network (GTPNET). The GTPNET, involving 97 countries, offers trade- related information data.

Kell agreed that the business community may have its own selfish motives in seeking a role, but he argued that as long as the overall benefits went to countries and consumers, the exercise was valid.

Kell said there were many reasons for business to support the United Nations. He noted the United Nations’ work in the area of peace and security and human rights.

“This is helping to reduce risks for global businesses and is opening up new markets,” he added.

The United Nations is also setting standards that are globally adopted: harmonised statistics, standards for telecommunications, postal services, maritime transport, and intellectual property rights.

“Recognising that business does already benefit much from the United Nations and that the United Nations of today is promoting business activities is a first step,” he said. But more needs to be done to forge a true partnership between the United Nations and business, he added.

UNCTAD Secretary-General Rubens Ricupero said last week that the private sector should be more involved in UNCTAD’s work.

“Multilateral institutions have so far failed to give adequate room to non-governmental actors who are increasingly shaping world affairs: transnational companies and private investors, non- governmental organisations (NGOs), universities and research centres,” he said.

By involving these actors, “we could help to convert a conference into a real partnership for development, making UNCTAD a model of what a truly international agency of the 21st century should be,” he added.

The U.N. Association of the USA (UNA-USA) reckons that the United Nations is a four-billion-dollar market and potentially, a major source of business for companies worldwide.