Norwegian Private Sector Development Conference

Mr President
Minister
Excellencies
Ladies and Gentlemen

I will open with a quote from the latest Human Development Report, launched in November 2006:
“Ultimately, human development is about the realization of potential. It is about what people can do and what they can become – their capabilities – and about the freedom they have to exercise real choices in their lives.”

I think this can be a key message today - for two reasons. First of all – because it expresses why development is important – on an individual, as well as on a global level.

Secondly – this definition is closely linked to the fundament of successful business: Namely the ability to realize potential - in people, situations, resources and markets – and help bring out the best in them.

The world is richer than ever before. We live in an age of unprecedented economic growth and technological innovation. At the same time we know that many people lack freedom to exercise real choices in their lives, because of challenges such as poverty and environmental vulnerability. Increasing opportunities for poor people to healthy lives and education will not diminish the wellbeing of those who are richer. On the contrary, pursuing an efficient pro-poor policy will help to build shared prosperity. We can actually do well by doing good.

The role of business and trade in development is crucial. For instance foreign direct investment to Sub-Saharan Africa in 2005 was around 17.6 billion dollars, more than half of the total development aid from the OECD countries It is quite obvious that how that money is invested is important for the economies of the Sub-Saharan countries. We know from experience that without a growing and well functioning private sector, it is hard for countries and societies to succeed . Business is a fundament for employment, lively-hood and welfare in all societies. I believe sustainable development is dependent on three main elements, the so-called “Three-legged-stool” with government, private sector and civil society each representing a leg.

We have good reason to be optimistic about the future. Today we see some of the highest growth rates in the developing countries. Trade and economic interaction between North and South increase steadily. But still today, Sub-Saharan Africa with its around 700 million people accounts for a smaller share of world exports than Belgium, with 10 million people.

Even small Norwegian companies can play a role in remote, but emerging markets. Partners in developing countries can create new opportunities for Norwegian companies – and for themselves.

A couple of weeks ago I had the opportunity to discuss the role of the private sector in developing countries with Paul Kapelus who works on these issues through his NGO, African Institute of Corporate Citizenship. I just want to leave you with some of the issues we talked about. Some of them new to me but probably not new to any of you.

1. It can be a good idea to use some time trying to understand the local issues before spending money.
2. Consider the economic and environmental footprint that your company creates.
3. Use local NGOs as partners to strengthen local civil society.

I also like the idea that it is possible to integrate responsibility into the business in stead of just adding it on as an extra element separate from the main business strategy.

Private sector is in a unique position to do good when building their business in developing countries.And if we are to meet the Millenium Development Goals by 2015 this effort will be crucial.

I am sure this conference will inspire the participants through exchange of ideas and best practices. I wish you all the best in your deliberations.