Why it matters
The world is experiencing a shift in economic and political power from industrialized countries in Europe, North America and Japan to emerging economies. These countries will be home to 85% of the world’s estimated 9 billion inhabitants in 2050, most of which will live in cities.
Yet poverty and inequity in many countries remain critical challenges for sustainable development and global stability. Poverty comes in many forms: about a third of the world’s population lives on less than US$ 2 a day and many suffer from malnutrition and have no access to health services, sanitation, electricity, safe drinking water, shelter or transportation.
Meeting the basic needs of a growing and increasingly urbanized population in developing countries—as well as the aspirations of their middle classes—will increase the demand for energy and natural resources exponentially, thereby further exacerbating the pressure on the world’s ecosystems.
Solving the seemingly conflicting imperatives of improving the living standards of the world’s inhabitants while preserving the environment will require a transition to a more inclusive, low-carbon and resource-efficient economy.
Alongside governments and non-governmental organizations (NGOs), the private sector is a key partner in this transition. As an engine of economic growth and employment as well as a source of technology and innovation, business has a critical role to play in providing solutions toward a more sustainable and equitable world.
The business case
While business is an important part of the solution in improving the economic, social and environmental prospects of developing countries, it also has a strong self-interest in doing so:
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To start with, in the long run, business cannot succeed in societies that fail and therefore has a vested interest in stable and prosperous societies. By developing a better understanding of and proactively addressing socio-economic and environmental concerns, companies will be able to better manage their risks and thereby underpin their license to operate, innovate and grow.
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Secondly, developing inclusive business models for doing business with low-income communities will help companies build positions in growth markets. Companies can do this both through demand and supply side innovations that will strengthen their value chains and provide affordable products and services that improve quality of life.
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Finally, the transition to a more sustainable world over the next decades will demand major technological and infrastructural investments to support better living standards of the growing population in developing countries. This represents a major business opportunity for companies and industry sectors that anticipate trends and respond with smart solutions.
A little bit of history - the WBCSD and Development
The Business Council for Sustainable Development (BCSD) first addressed poverty alleviation in its book Changing Course, released at the Rio Earth Summit in 1992.
The issue was later taken up by the WBCSD through a series of scenario exercises on global governance and by its Corporate Social Responsibility project. Furthermore, the Sustainability Through the Market project explored the powerful role of the markets to promote sustainable development.
Launched in 2001, the Sustainable Livelihoods project built on that legacy. The project focused on researching the roles that corporations and markets can play in improving the lives of impoverished people in ways that are beneficial to all concerned.
The Development Focus Area was established in 2006 as a result of the revised WBCSD strategy, which identifies Development as one of the three main sustainability issues that will shape the business agenda in coming years. It builds on the work of the WBCSD’s Sustainable Livelihoods Project to promote business solutions to development challenges.
Highlights of issues the topics that have been addressed so far:
Read about the Development Focus Area work program