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| Friday, 16 July 2004 |
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Foreign Minister Lakshman Kadirgamar said the central challenge facing us is the capacity of the State, to implement market reforms, respond to economic crises by providing institutional checks and balances and ensure accountability and supervision. Addressing the Joint Conference of the Commonwealth Business Council and the Royal Institute for International Affairs on Wednesday at Chatham House, London, as the keynote speaker, he spoke on Corporate Contribution to Post Conflict Recovery, with the theme of the joint Conference being 'Corporate Citizenship in Action: Best Practice and the Millennium Development Goals'. The majority of the large gathering was from the corporate sector of the U.K. The Conference was sponsored by British Petroleum and the U.K. Foreign and Commonwealth Office, the Foreign Ministry in Colombo said in a press release yesterday. Delving into history, Kadirgamar stated that over the passage of time, commerce and conflict have often marched together as the object of war had been territorial conquest aimed at the acquisition and exploitation of ones neighbour's wealth. He recalled that after the industrial revolution, rampant capitalism drove economic empires to be built and great fortunes amassed. In those days, the Minister said business did not entertain any notion of corporate responsibility and accountability. He mapped out the phases, when capitalism gave away to communism and fascism, followed by the advent of globalisation based on the Washington consensus. The Minister was of the view that presently economies are seeing the emergence of a post Washington consensus, focusing attention on strengthening the capacity of the State to maintain an effective, regulated framework for market forces and ensure good governance. Kadirgamar observed an increasing feeling that many individual corporations are too big and powerful, and that unbridled corporate power holds sway over weak states. Alluding to the recent Parliamentary General Elections in Sri Lanka and India, Minister Kadirgamar said a clear warning had emerged to the ruling establishments that the much vaunted benefits of globalisation were not trickling down to the millions who constitute the rural masses. He said that Governments should take a lead role in combating poverty and addressing the problems faced by the agricultural and rural sectors as well as small and medium enterprises. Observing that complementary roles have emerged with a partnership of the State private sector and the UN, Minister Kadirgamar said the question of corporate responsibility was now on centre stage and referred to the Global Compact program launched by the Secretary General of the United Nations, an initiative to promote global corporate citizenship. He said this program importantly engages the developing countries which are home to half of its participating firms, two third of its national networks and four fifth of humanity. He referred to the principles initially established in the Global Compact and another being adopted at its recently held Summit, where business should work against corruption in all its forms including extortion and bribery. The Minister said that three trillion dollars were paid out every year in the form of bribes, a devastating hidden tax. Kadirgamar referred to the UN Security Council's debate last month on the role of business in conflict prevention, peace keeping and post conflict peace building. He discussed certain conclusions reached by the Security council as to why corporations would or would not invest in conflict affected areas. The Foreign Minister subsequently had a round table discussion with representatives of UK companies exploring investment ventures in Sri Lanka. The Minister explained the investment scenario including possibilities in the North and East. The companies represented included Masons, Mott MacDonal, Ferrymoss. Ports and Terminal Group, Booker Tate Commerzbank innovation and Technology Transfer and Maritime and Under Water Security. Some of the areas of interest were on port development and infrastructure including tourism, agriculture, fisheries sugar and investment financing. They were all in agreement or the extensive investment potential of Sri Lanka. The Minister assured Foreign Ministry co-operation in facilitating potential investors through the relevant line Ministries and Institutions. |
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