Business Call to Action: transforming lives through business

Today, the UK Government and the United Nations Development Programme will be hosting an event of over 80 CEO’s in London. The Business Call to Action event will bring together business leaders from around the world and challenge their companies to explore new business opportunities that use their core business expertise in a way that contributes both to the Millennium Development Goals and to their commercial success.

Last July, in a speech at the UN, the UK Prime Minister Gordon Brown called for a new global partnership to deal with what is a development emergency: the shortfall in progress in meeting the Millennium Development Goals, particularly in sub-Saharan Africa. The PM and the UN Secretary General, Ban Ki-Moon, have both made clear this is a global Call to Action which cannot be achieved by governments alone, and where the private sector has a unique role. The speech was accompanied by two statements, one by Heads of State and the other by business

The Business Call to Action Website, includes more on the event and the MDG Call to Action, speeches, a live blog from the event, video, films and photos.

I believe the event is significant for two reasons. First, it showcases the important contribution that businesses can make through their core business. The event will look at new business ideas and initiatives which go beyond philanthropy, and that will support economic growth and reduce poverty in developing countries.

Numerous other examples of this sort of good practice are highlighted by Business Action for Africa and showcased on our Google Map. The second reason that the event is important is that it implicitly recognises that growth, enterprise and employment are the only long-term solutions to poverty.

If you are interested in fighting poverty through business, I would urge you to join Business Fights Poverty – a professional network of experts and practitioners from around the world that we have just set up. The Business Call to Action event is the start of a long journey - it will take a movement of like-minded people, not just an event, to make the difference that is needed.

Fresh thinking at DFID

A wind of change is blowing through the UK's Department for International Development (DFID). A string of speeches over the last month have signalled a new and welcome direction: speeches by Douglas Alexander (the Secretary of State), Baroness Shriti Vadera (a DFID Minister) and Suma Chakrabarti (the top DFID civil servant) have all highlighted the importance of economic growth as the source of long-term wealth creation for poor people, and the value of engaging with the private sector.

In his speech to the United Nations on 31 July 2007, Prime Minister Gordon Brown stated that “trade, wealth creation and job creation are the only routes to long term prosperity”, and that business has a key role to play, in partnership with others, in meeting the MDGs. He argued that “for too long we have talked the language of development without defining its starting point in wealth creation – the dignity of individuals empowered to trade and be economically self sufficient.”

According to DFID, they are looking to engage more intensively with business to discuss what more can be done to advance the growth agenda. They would like to see business scaling up its activities in pursuit of a more transformative agenda, recognising that the most important contribution the private sector can make is through their core business – moving beyond traditional philanthropic Corporate Social Responsibility (CSR) or meeting minimum standards towards innovative and effective, long-term development partnerships.

Suma, in his speech, identifies two approaches that DFID would like to see taken more often in the private sector: voluntary collaborative partnerships, and pursuing profitable opportunities that transform the lives of the poor. On the former, DFID have experience and expertise in collaborative initiatives, such as the Extractive Industries Transparency Initiative (EITI), the Construction Sector Transparency Initiative (CoST), and the Medicines Transparency Alliance (MeTA), and see this as an area where they can offer support to business.

On the latter, DFID say that they recognise that core business, market opportunity and competition can drive activities which meet the needs of poor people. DFID is seeking to work with companies to develop new business models, based on their core business, that can be scaled up to have a transformative economic impact on the communities affected – in terms of jobs, investment, goods and services. There most innovative work in this area has perhaps been in their work around "challenge funds" - pools of funding over which the private sector competes to deliver specific development objectives – including, for example, the Business Linkage Challenge Fund (BLCF), the Financial Challenge Deepening Fund (FDCF) and the recently-announced Africa Enterprise Challenge Fund (AECF). DFID also recognises that creating the right climate for business is also critical to enabling the private sector to thrive, drive growth and reduce poverty, with DFID's interested reflected in their support for programmes such as the Investment Climate Facility (ICF), itself a collaboration with the private sector.

As a long-standing DFID-observer, I believe this shift of emphasis - if it is followed through in practice - is one of the most significant of recent times. Other donors should take note. And business must stand up to the challenge of engaging effectively.