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Sustainable Food Security: The Role of the Private Sector
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Anyone who wants to make a meaningful contribution to
the discussion of food deficit issues must be aware of
the highly complex and multifacetted context (Leisinger
et alia 2002) |
Past and future population growth
The world population has already doubled since 1960 and
continues to grow by an extra 220,000 new mouths to feed
every day. That is almost 80 million people a year, which
is approximately equivalent to the population of Germany
year after year, and for many more years to come. By today’s
estimates, the world population will grow by the year
2050 to more than 9.3 billion people. About 98 percent
of this growth will occur in the poorest regions of the
world. We can thus expect the population of Africa to
grow more than twofold from its present 820 million to
more than 1.8 billion people despite a high and probably
rising mortality due to HIV disease or AIDS.
Many poor countries of Asia will also see a dramatic population
explosion such as Bangladesh, which is expected to grow
from its present 135 million to almost 210 million people
by 2050. In Pakistan, today’s population of 145 million
people will increase to almost 350 million, while in India
the population will grow from today’s billion to well
over 1.6 billion. India will thus overtake China as the
country with the world’s largest population, because in
2050 the population of China will be well below 1.4 billion
people. But it will still have 130 million more people
than today.
The developing countries will also see a sharp
increase in their urban populations – so sharp that very
soon, even in the poor regions of the southern hemisphere,
there will be more people living in towns than in rural
areas. And all of them will be dependent on a steady supply
of the cheapest possible food because, having given up
their lives as selfsufficient farmers, they will no longer
be able to feed themselves from their own fields.
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THE WORLD FOOD SITUATION |
Despite all the progress that has been made, the world
food situation is still marked by mass hunger: According
to the FAO (the Food and Agriculture Organization of the
United Nations), around 840 million people in developing
countries suffer from hunger and chronic undernutrition.
Especially in sub-Saharan Africa and in South Asia the
deficits are dramatic so dramatic that even a slight shortfall
can have catastrophic consequences: Ethiopia for many
years one of the few success stories in the agricultural
development of Africa slipped to the brink of starvation
in the spring of 2000 as a result of a single dry period.
In Zimbabwe, for decades one of the few “corn granaries”
of Africa, a despotic regime with no regard for human
values is depriving many people of the minimum of food
security that remains to them. While the world population
is on the increase and there is growing pressure on rural
areas to produce food in sufficient quantities, of good
quality and at low prices, the natural resources that
are needed for food production are declining:
Arable land
Every day, about 20,000 hectares of arable land are lost
– through wind and water erosion, land development or
overfarming. The fertility of the soil in developing countries
is gradually declining to the point where substantial
harvest losses are occurring. Broad swathes of land are
already severely damaged and in many farmlands of the
southmore goodness is continually being taken out of the
soil than is being added to it through the use of appropriate
farming methods or fertilizers.
Water Water too, the source
of all life, is becoming increasingly scarce. More than
a quarter of the world’s population and a third of people
in developing countries live in regions under threat of
severe water shortages. The regions most at risk are precisely
those areas with the highest yields. The coming years
will see demand for water increase very much faster than
the supply. In the foreseeable struggle for distribution
between industry and urban households on the one hand
and agriculture on the other, the agricultural community
is unlikely to get its way. Water shortage in particular
puts food security at risk, because in many countries
of the Third World almost 60 percent of arable fields
are under irrigation. By 2025, 80 percent of demand for
food in developing countries will come from irrigated
crops. But if the quantity of water available stagnates
or – which seems more likely – declines, the average harvest
yields will fall.
Global climate changes - global warming
The effects of the climate changes that today are considered
to be likely are still difficult to predict. However,
if an increase in average surface temperatures (global
warming) occurs on the scale which is regarded today as
possible, this would bring additional problems for agriculture
in many developing countries - with dramatic consequences
for the food security of people in low-income countries
in the central to southerly latitudes of the globe.
Stagnating
and declining harvest yields The situation will be further
exacerbated by a development that is highlighted in the
debate surrounding gene technology and biotechnology:
it would appear that a further increase in the yields
of corn is no longer possible using conventional cultivation
techniques. Harvest yields – with very few exceptions
– are showing a measurable decline. Even the difference
between the yields obtained in test stations (maximum
potential) and those obtained by the best farmers in the
best crop-growing regions is narrowing. At the same time,
the expectation is growing for farmers in the future to
produce higher yields from smaller areas of land and poorer
quality soil with less water.
More local production -
not more international distribution
The FAO estimates that, to secure food for the world
population, global food production will have to double
in the next twenty years. If the estimates of the
FAO are to be believed, this production goal can be
achieved at the global level. However, the summary
of global food production conceals widely varying
regional and national production trends those regions
where problems are greatest today can also be expected
to show the greatest problems in the future.
I do not share the view of some representatives of
aid organizations that the world food problem can be
solved by redistribution: To ensure adequate food supplies
for the growing populations in Asia, Africa and Latin
America without increasing their dependence on international
markets or food aid, more food has to be produced above
all in those regions where the food is consumed. Imports
are suitable at most as stopgaps to cope with short-term
bottlenecks or as relief in acute emergencies. Imports
are no substitute for local production. The redistribution
of cereal crop surpluses from the USA, Europe, Australia
or Argentina, which is often recommended, not only founder
on the immense logistical deficits in Africa and Asia,
but also overlook other major problems.
Agriculture as a productive employment
sector
The agricultural industry
in developing countries is far more than just a food
producer. In most poor countries, 60 to 80 percent of
all people in employment continue to earn their living
in agriculture. This does not only apply to farmers
and farmworkers, but also to those employed in upstream
and downstream sectors of industry and also in light
industry. These sectors provide employment for landless
labourers, shopkeepers or workers in cottage industries.
A flourishing agricultural sector is not only the best
weapon against rural poverty. The entire economic development
through industry and services sectors would hardly have
been possible in any country of the world without a
flourishing agricultural sector as the driver of growth.
Agriculture is land conservation and cultural
heritage
Agriculture also helps to preserve ecologically intact
structures. Fields that are worked prevent erosion and
preserve the natural environment. As the term “agri-culture”
implies, it is also indispensable as a “custodian” of
the multifaceted cultural heritage of developing countries.
No easy way out.
Problems with multifactorial causes call for solutions
that address a variety of different aspects. Anyone who
is seriously concerned with the future of food security
for poor countries is faced with a highly complex set
of challenges. On the one hand, major reasons for the
widespread insecurity of food that prevails in many developing
countries lie in a national agricultural policy which
attaches an inappropriately low value to domestic food
production. As a result, agriculture receives far too
little when it comes to sharing out the budget. The situation
is exacerbated further by the fact that, within the poorly
funded agriculture sector, the smallholders who produce
85 percent of all agricultural products fare particularly
badly.
They farm the poorest land under insecure circumstances
in terms of land laws or land utilization or under poor
tenancy conditions, and they have virtually no access
to agricultural advisory services or to processing and
marketing institutions. Without property or land, they
have no securities and thus no possibility of obtaining
credit in order to invest in modern forms of farming.
The infrastructure for education and healthcare in rural
regions is also noticeably poorer than in the urban agglomerations.
Food deficits are always closely associated with poverty.
In rural regions especially it becomes clear that this
involves not only a shortage of income, but also a lack
of access to vital services. Poverty also always entails
a lack of co-determination, always entails a lack of rights,
exclusion and violation of human dignity.
This is especially
true for the women in poor societies: Poverty has a female
face. Those who carry the greatest burden in their societies
for the production, processing and preparation of food
have the least rights and are additionally handicapped
by disease, lack of education and undernutrition. Sustainable
success can only be achieved by addressing all the elements
in the whole constellation of problems and adapting the
solutions from country to country – in many cases even
from one region to another within the same country. It
is a question not of having to cut through the "Gordian
knot", but of painstakingly putting together a complex
puzzle of political, social, economic, ecological, biological
and technological pieces - and doing this in close collaboration
with the relevant local partners based on their cultural
knowledge.
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THE ROLE OF THE PRIVATE SECTOR
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What kind of contribution can we realistically expect from the private sector and its
access to cutting edge technology in helping to solve the problems of world hunger? No
single actor and even less a set of new technologies can make up for lack of political will
to implement tried and trusted reforms. Where long-overdue reforms of land or tenancy
rights founder on the political power of large landowners, smallholders will not be able to
benefit from any technological progress. Where smallholders have no access to
agricultural advisory services, they cannot use the opportunities offered by technology to
increase their harvests and will remain among the "working poor". Where credit is only
given to those who actually do not need it, while those who need it most get nothing or
are dependent on the extortionate practices of traditional moneylenders, rural
development will stagnate at the lowest level.
There is and must continue to be a clear societal
division of labour and responsibility:
Pluralistic societies are highly complex systems. They are based to a large degree on a
set of shared values and an efficient and cost-effective division of labour. The individual
members of such a civil society are bound together in a relationship of mutual
dependence. To ensure that there is a maximum level of synergy - or at least a minimum
amount of friction, the various players in the theatre of society tacitly expect that
everyone by and large observes the rules. In today´s world, observing the rules is no
longer good enough to gain the acceptance of major stakeholders. For many stakeholders,
at least the degree of social acceptance depends on whether or not individual members or
institutions are seen to contribute to solutions of the significant problems in a society.
Hunger, malnutrition and undernutrition are clearly such significant problems.
As the roots of today´s food insecurity are so complex
and as sustainable solutions need so many efforts of so
many stakeholders at different places, "Feeding the world"
is going to stay a challenge to many actors of civil society
for many years to come. What exactly is the Role of the
Private Sector in improving food security? No one in a
society is responsible for everything, no one has sweeping
rights and no one is beholden for all the duties of society.
Experience shows that a nation’s economic, social and
societal success is at its greatest if there is both a
clear division of labour and responsibility between the
different members of civil society and a common understanding
with regard to shared values and the overall goals of
society including a fair equilibrium of duties and rights.
The private sector and all companies, be they national
or multinational have specific and fairly clearly defined
"duties and responsibilities" in society’s division of
labour. These are:
- To provide goods and services that succeed in meeting
effective customer demands and can be sold at prices that
are competitive and in the best interest of the corporation.
The goods and services that are sold provide society with
different kinds of value added in the case of agricultural
companies it is providing products and services which
help farmers to sustain and improve yields as well as
food quality. A company can do this through chemistry,
biology, biotechnology, and genomics. Being a successful
agricultural corporation therefore not only means being
profitable, but also raising the income of farmers, avoiding
shortages of agricultural goods - and at the same time
reducing the pressure on the environment.
- It is not only
the right of a corporation to strive to be as profitable
as possible; I firmly believe that it is part of its social
responsibility and its duty within the framework of its
corporate citizenship to be as profitable as possible.
Sustained profitability resulting from sustained competitiveness
on global markets is the precondition for a corporation
to assume sustained responsibility towards society as
a whole - i.e. to be a good corporate citizen. All societies
in the world are best served by successful enterprises,
because only they can offer a sustainable basis for
•
providing goods and services of high quality; • keeping,
hiring, and competitively remunerating employees; • paying
taxes; and • being a good corporate citizen by contributing
towards pension and insurance systems and other social
purposes.
In this era of globalization it is as true as ever to
stress that anything which goes against the principles
of economic propriety cannot be correct from a more holistic
corporate responsibility point of view. And this is not
a problem, because there is no principal trade-off between
good economic performance and good corporate citizenship:
Yes, the management of a corporation is under an obligation
to satisfy the shareholder - after all, it is the shareholder
who owns the company. But there is equally no doubt that
they are beholden to other stakeholders, including the
communities in which they operate and the citizens who
live there. Anyone who invests and wants to attract the
best people on the job market for his company needs favourable
conditions in which to operate, and this means at least
the certainty of law, fairness in the way people live
and work together in society, and a social climate that
is favourable to business. Anyone who spends a lot of
resources to do research and development for innovative
products and services will have to be aware of the social
acceptance of potential products resulting from that research.
For this reason, any intelligently managed company will
include the expectations and concerns of society in its
business considerations and decisions. It will therefore
recognize the interest of its shareholders, employees,
customers, neighbors, the authorities and the public at
large in its societal behavior, and the health, safety
and environmental as well as social impacts of its business.
Such a company will not act selfcentered but provide relevant
information and actively listen to all relevant parts
of civil society and seek dialog with all relevant stakeholders.
Where possible and desirable, such a corporation will
- in order to get better, more cost-effective or faster
solutions - cooperate with all other actors of civil society.
Successful cooperation beyond a narrow definition of roles
and responsibilities, however, depends on partners sharing
a basic set of common values:
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SHARED VALUES AND ASPIRATIONS |
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Everywhere in the world, people accept a certain framework
of standards for living together without conflict and
for settling differences of interest without violence.
These are mostly norms which have served for thousands
of years as a compass to guide humankind in all their
different forms of culture and religion. Whether we read
e.g. LAOTSE, the Gospels, the Koran or Hindu writings,
we find similar views on what is considered good and correct
human behaviour and on what constitutes a meaningful human
existence. There is no reason to call these views into
question in this age of globalization.
Simple observance
of the“Golden Rule”, either in its passive interpretation
(Book of Tobit 4.15) or even in its active interpretation
(Matthew 7.12), would be sufficient to qualify both individual
and corporate actions for a seal of approval that would
leave most of today’s criticisms without foundation. Double
standards low ones for oneself and high ones for everyone
else are ethically untenable. Hence if virtues such
as
• openness in values, attitudes and philosophies
•
transparency with regard to objectives, expectations,
strengths and weaknesses
• flexibility as well as resilience,
and last but not least • honesty are high in demand as
shared values and aspirations.
As it is so important,
we must add another precondition for success in partnerships
that is a frame of "Good Governance". At the end of
the day all good intentions are worthless if countries
and those being responsible for their policies and politics
are not getting the fundamentals right by:
• establishing
a clearly defined legal framework which provides stability
and predictability as well as procedures for the peaceful
solution of conflicts
• maintaining a non-distorting
policy environment for all players in civil society
•
investing in basic social services and infrastructure
• caring for the vulnerable and protecting the environment.
Sustainable Development relies on empowerment and co-operation,
and political institutions acting as partners, catalysts,
and facilitators. Good Governance is therefore not a luxury
for rich countries - it is an absolute precondition for
sustainable economic and social development - and this
again are the most important preequisites for food security:
Today, more people go hungry due to bad policies and despotic
politics than due to any other cause. All empirical data
show that poverty is the main reason for deficits in food
security and as all empirical data show that economic
growth is the single most important contributor for the
alleviation of poverty and economic empowerment of lower-income
groups, it is obvious that national governments must act
as a facilitating and enabling factor for economic development.
As rapid economic growth does not automatically translate into sustainable
improvements in living standards and social conditions for the broad base of the public,
the benefits for the poor depend to a large extent on a government’s ability to strike a
balance between giving incentives for improved and merit-based economic performance
and protecting the vulnerable by appropriate safety nets. If there partners sharing a basic
set of common values and if there is willingness to co-operate, fundamental opportunities
arise.
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WILLINGNESS TO CO-OPERATE AMONG THE DIFFERENT PLAYERS IN CIVIL SOCIETY |
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Different actors of the civil society have different concepts, skills, techniques,
experiences and different resources. They are also driven by different motives. Although
there is a rational and natural division of labor and responsibility, synergies through the
co-operation of different actors for unorthodox purposes are feasible. As a result of its
different background and experience different actors are likely to analyze the issues and
appraise the problems as well as opportunities differently. Modified or altogether
different solutions become probable under such circumstances. Innovative research
partnership for sustainable agriculture could be one area where joint ventures for the
benefit of resource-poor farmers could become a reality. The fact, that in today’s world,
some of the most dynamic and powerful research capacities are situated in the private
sector makes private corporations and research institutions potential candidates for such
partnerships.
If we look at the most dynamic areas of agricultural research, genetic engineering and
biotechnology, two thirds to four fifth of the research and development is currently
carried out in the private sector. On the one hand, this is desirable as it offers the
opportunity to reorganize public research portfolios and focus on activities that are best
done within the public domain. The public sector should cease activities wherever the
private sector can do things better or more cost effective.
On the other hand, the strength of the private sector gives rise to public concern, as
technologies needed to develop and apply agricultural biotechnology are overwhelmingly
in the intellectual property domain of a small number of life science corporations in the
North. Patented results are in all likelihood too expensive for the resource-poor farmer in
a less developed country. This may be regretted but regrets won’t change much.
The only sustainable way out of this situation is more and more intensive cooperation
between the private and the public sector. There is evidence that many agricultural
corporations and private research institution while focussing their research on areas
where a competitive return on investment can be anticipated are willing to provide
research support for resource poor farmers for free or at very favourable conditions.
Novartis and Syngenta are two such corporations since many years. But more and closer
partnership will not come automatically there are some preconditions:
First of all, a substantial improvement in the overall relationship between the potential
partners is necessary. As long as the private sector is routinely and undifferentiatedly denounced
as a greedy, irresponsible, and socially insensitive crowd of »couldn’t-care-less«
Manchester capitalists, nobody should be surprised that corporations are not queuing to
commit their funds and technology. It goes without saying that those who go on record
with "hate sites" insinuating criminal activities of those who lean positively towards
genetic engineering and biotechnology, and support vandalism and slander disqualify
themselves as potential partners.
Second, a pre-appraisal seems necessary. There is a pronounced need to identify
and—if possible—quantify what under which conditions and in what areas there are opportunities
for partnerships. For agricultural research partnerships the CGIAR could be an
institution to do such a pre-appraisal, as its initiative to explore the interests, strengths,
investments and future roles of the public and private sector in agricultural research
represents today’s state-of-the-art.
Third, we must look for win-win-situations for such partnerships—to rely on charitable
attitudes as the driving incentive for cooperation makes partnerships vulnerable to the
ups and downs of business cycles. Win-win-situations also take the temptation away from
potential recipients, that there is a corporation who wants to pay indulgence-money for
the forgiveness of sins committed in its normal business activity. Given the range of
opportunities and the potential win-win-situations in public-private co-operation,
partnership is no longer just a political or societal option. It is a necessity for costeffective
sustainable development - however, private-public-partnership is not the "silver
bullet" for the solutions of all problems. There still is and will continue to be a necessity
for contributions that are outside the normal business sphere.
As private corporations must compete to appear attractive to the international financial
community, their research priorities are determined by the financial returns on
investment, and hence the needs of those who wield purchasing power in the relevant
markets. To put this another way, it is not very likely that these corporations will be
willing to fund research for drought tolerance, tolerance to soil and mineral toxicity, or
other characteristics of relevance to the typical resource-poor farmer family in poor
countries. Even if they were to make progress in these areas, the costs of developing
useful products would be high and hence the products would remain out of reach for
those who need them most. Part of the explanation for this is intellectual property
rights—the knowledge and technologies, including DNA sequences, research tools, and
output traits are today largely proprietary. This, according to the CGIAR´s TAC, has
partly impeded secondary innovation and led to conflicting proprietary claims and high
transaction cost.
The alternative to private-sector research is public research. There the emphasis can be
given to plant species that are most relevant to poverty reduction and income generation
of specific ecoregions, and research can focus on losses caused by biotic and abiotic factors
and on stabilizing yields on poor soils. The fruits of public research can be passed on
to small farmers at cost or, via subsidized government channels, even free of charge to
the end user. As in the past, the CGIAR, with its focus on the needs of developing countries,
will have to play a conspicuous role in such efforts—in close cooperation with the
different national agricultural research systems. The record shows how much has been
achieved in the past 30 years through CGIAR and its local partners (Anderson and
Dalrymple, 1999, CGIAR, 2000)ii
In order to make cutting-edge biotechnology available to small farmers, more public
research has to be financed. The private sector can do a lot to support that kind of
research by providing not only funding for projects that focus on ressource-poor farmers
but in addition giving access to cutting-edge technology and giving permission to use it
for the benefit of resource-poor farmers for free or at very favourable conditions. The
Insect Resistant Maize for Africa Project—which involves the Kenya Agricultural
Research Institute, the International Maize and Wheat Improvement Center (CIMMYT),
and the Syngenta Foundation for Sustainable Agriculture—could serve as a pilot for more
projects with different constituencies (www.syngentafoundation.com).
Last but not least, the private sector should take a lead in reviving dialogue and
consensus-driven action: Pluralism of opinion is normal in modern societies it makes
them dynamic and thriving. Also the assessment of new technologies occurs within this
pluralistic structure; simple answers and undisputed processes for consensus are therefore
not at hand. But within this pluralism, the negative tunes have taken over in way that is
not comensurate with reality and this has negative consequences for future generations
in the developing world:
The widespread negative public perception in Europe (things still look a bit different
in the US) is no incentive for politicians to use public funds for biotechnology research—
be it for the South or the North. A negative spillover with regard to funding agricultural
research in general is certainly possible. The cumulative circular interdependence of
negative Green Revolution myths, genetic horror stories, and globalization uneasiness is
likely to perpetuate the negative tone in the debate.
The current impasse is only to a small degree due to lack of information. It is much
more a matter of attitudinal rejection. There is already a wealth of information on all
important aspects of agricultural biotechnology, and there is excellent advice for all
parties on how to deal with this information (Nuffield Council on Bioethics, 1999,
IPGRI, IDRC, 2000).iii But more information alone is not the answer. Rather, those of us
who are convinced of the potential benefits of biotechnology and genetic engineering
must engage in spreading the “gospel” through dialogue and cooperation. To turn the
situation around, we need a number of changes. First and foremost, research in
agricultural biotechnology must come up with results that are more tangible and more
easily understood by a wider public. Empirical social science suggests that laypeople
strongly believe that some scientific developments are beneficial and others are not.
While characteristics such as insect or herbicide resistance might warm the hearts of
some researchers or farmers, most consumers will neither understand nor appreciate the
blessings of this technology. With items like the "Vitamin A" rice, with tomatoes having
a high content of anti-oxidants, with a banana that contains vaccines against polio or
tetanus or with other crops that express health-related properties, the picture could change
much faster.
Public dialogues on the costs and benefits of genetic engineering and biotechnology
alone will not suffice—there must also be “dialogue through cooperation,” cooperation in
the highest professional quality and greatest possible transparency. Common research can
lead to positive case studies of societal learning for different constituencies, including
scientific committees, science journalists, and other interested stakeholders. When people
join together to work on a concrete project to achieve goals that are judged to be
important to everyone, prejudices eventually disappear and labels that have been acquired
lose their importance. The cooperation in the laboratories and fields allows differentiation
between justifiable hopes and worries and unjustifiable ones. The opportunities,
mechanisms, and limits of such cooperation are made clear in the Tlaxcala Statement on
Public/Private Sector Alliances in Agricultural Research initiated by CIMMYT
(www.cimmyt.cgiar.org)
The process of moving from ignorance through arrogance and then to tolerance of
different views of the world cannot be delegated. It has to be lived. It is a unique
opportunity to discover parallel perceptions of reality, to cope with them, and to combine
them to form a larger whole. The ability to engage in constructive teamwork will separate
the chaff from the wheat: anyone who is not capable of breaking free from the kind of
friend/enemy thinking anchored in dogma and of working toward coalition, who prefers
demarcation to teamwork for political reasons, will have to put up with the slur of being a
fundamentalist.
Those who have broader shoulders must exercise visible solidarity in a consistent
way. First and foremost, in view of today’s limitations, capacity and institution building
for biotechnology must be supported and funded by development assistance resources.
Only if there is a national absorptive capacity to understand the technology and deal with
it safely can the benefits of technology transfer be maximized and its risks minimized.
This support—consisting of all kinds of software and hardware—can range from consulting
for state-of-the-art biosafety regulation, best practices of capacity building, and
clearinghouse advice to genetic material and laboratory equipment. Support from the
private sector can also make a major contribution to putting constructive partnerships into
practice in developing countries and this should be done.
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TOWARDS AN ENHANCED DEFINITION OF CORPORATE CITIZENSHIP |
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It is in the interest of companies to be guided not only by their own individual and
short-term self-interest but also by respect for the common good and the needs of the less
fortunate for this reason, it is an entirely rational decision for a company to act in a
sense of enlightened self-interest and go beyond what immediate business interests
demand.
If all the players in civil society politicians, entrepreneurs, researchers, and others
assume their specific responsibilities as local and global citizens with the highest possible
standards, and if all institutional players in civil society - be they political parties,
corporations, NGOs or others - co-operate in a constructive manner, the synergism
created is likely to allow for a bright economic, and therefore social, and therefore
political future. But it will not come about automatically, as Karl Popper notes:
The future is wide open. It depends on us on all of us. It depends on what we and
many other people do and intend to do now, tomorrow and the day after tomorrow. And
what we do and intend to do depends on our philosophy; and on our desires, aspirations
and fears. It depends on how we view the world; and how we perceive the wide-open
possibilities of the future. This represents a major responsibility on the part of us all.
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