The private sector can certainly play a role in sustainable and equitable development, but there should be a set of rules for that involvement, according to Nuria Molina-Gallart.
Who should set those rules? The director of the European Network on Debt and Development says it’s an ideal job for the G-20, whose leaders will meet Nov. 3 and 4 in Cannes, France.
“The current G20 (and European institutions’) approach to the private sector’s involvement in development is not enough,” Molina-Gallart says in a “TripleCrisis” blog. “It is based on Corporate Social Responsibility (CSR) and enabling business environment, which are necessary but not sufficient conditions to make private sector work for equitable development.”
Molina-Gallart believes the G20 possesses “the financial muscle” to ensure compliance to “fair play rules” that:
Require multinationals and financial institutions to provide financial reporting in a country-by-country manner and fully disclose their beneficial ownership, which could help reduce tax evasion.
Ensure foreign investments create decent local jobs, transfer technology, adhere to strict local content rules and reinvest a portion of profits in developing nations that host the investors’ operations.
Respect the environment, local communities and human rights.
“As citizens Occupy the World, G20 leaders should listen to what people have to say,” she says. “A new fair social contract is needed now, and it should be one that is built on different foundations to those that brought us into this global mess.”
Read more on U.S. aid reform online, and subscribe to The Development Newswire to receive top international development headlines from the world’s leading donors, news sources and opinion leaders — emailed to you FREE every business day.