SECRETARY-GENERAL STRESSES ADVANTAGES OF PRIVATE SECTOR'S DEEPER INVOLVEMENT IN UNITED NATIONS WORK

7 April 1997

Press Release
SG/SM/6196

SECRETARY-GENERAL STRESSES ADVANTAGES OF PRIVATE SECTOR'S DEEPER INVOLVEMENT IN UNITED NATIONS WORK

19970407 Addressing Confederation of Indian Industry, Kofi Annan Also Emphasizes Need To Reconcile Pursuit of Private Interest and Public Good

Following is the statement of Secretary-General Kofi Annan to the Confederation of Indian Industry in New Delhi today:

I am pleased to be with you today. I would like to start by paying tribute to Indian entrepreneurship. India has a long and distinguished history as a trading and seafaring nation. India's commerce and culture have extended the subcontinent's influence far beyond its shores.

As we enter a new era of hope and opportunity, it is my expectation that this centuries-old spirit will lead to new partnerships -- with Governments, with members of civil society and with international institutions such as the United Nations. Such alliances offer great potential for achieving a range of important goals, both at home and within a global context.

Since taking office, I have been struck by the strong interest of the private sector in the activities of the United Nations. This is not a new phenomenon. But the world Organization's interaction with the private sector over the years has been marked by a certain ebb and flow that was yet another unfortunate byproduct of the cold war.

In today's environment, economic reform and liberalization, in their various local manifestations, have become urgent priorities for countries in all regions. India itself embarked on a bold and unprecedented path of reform in 1991. The international community is keenly watching these efforts. People in developed and developing countries alike want to understand the dynamics involved and apply the lessons to their own situations.

Indeed, India's example is one of the main reasons there now exists a real opportunity for extremely productive collaboration between the private sector and the other players on the national and international stage.

A recent report from the World Bank showed that private capital flows to the developing world in 1996 amounted to $244 billion. By contrast, official development assistance (ODA) amounted to just one-sixth of that amount, or $44 billion. Although the private flows were essentially confined to 12 countries, the magnitude of the difference is striking and the overall message is clear: nationally and internationally, the key to growth is with the private sector. The role of the government is increasingly shifting to one in which its primary task is to create an enabling environment for individual energies and initiatives to flourish. This partnership between the public and private sectors is now the key to development and prosperity.

We welcome this new reality. But we must emphasize several related imperatives: the need to reconcile the pursuit of private interest and the public good. To ensure gender equality. To promote growth with social justice. To foster growth which is inclusive and which does not marginalize. To encourage policy-making which prioritizes basic needs and the eradication of poverty. And to meet today's needs without compromising the needs of future generations.

The private sector is a vast repository of experience, managerial ability and innovation. It offers immense potential for job creation, technology transfer and the promotion of trade. The United Nations system is seeking to enlist this dynamism for the common good by fostering closer links at both the conceptual and operational levels.

At the conceptual level, you are perhaps aware that we have recently concluded a cycle of world conferences on such major global themes as sustainable development, population, women's issues, social development and the problems of urbanization. These conferences produced agreement among Member States on comprehensive action plans addressing some of the most urgent challenges of our times. Representatives of the private sector were influential participants throughout the conferences process. One such major voice was the Business Council for Sustainable Development, with which the Confederation of Indian Industry is actively involved. Moreover, each of the conference action plans -- especially the one adopted at the World Summit for Social Development -- reflected a global consensus on the centrality of business and industry.

At the operational level, the United Nations system has responded to the requests of Member States for assistance in a variety of areas related to private-sector development: improving public administration. Fostering privatization. Developing legal and regulatory frameworks. Establishing norms and standards. Promoting micro-credit for small enterprises and businesses, particularly to women, artisans, small traders, first-time entrepreneurs and others for whom a lack of finance has been a primary obstacle in the way of self-sufficiency and economic well-being.

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I spoke in depth about these capacity-building efforts at the World Economic Forum, held in Davos, Switzerland, earlier this year. I know some of you were present on that occasion. Copies of that speech are available here for those who might be interested.

I encourage the private sector and Indian industry to use the United Nations as a forum for sharing experiences and best practices. You might wish to enhance your involvement in the process of standard-setting, particularly in the areas of investment, trade and the environment. You might also consider increasing the level of assistance you provide in the implementation of United Nations programmes aimed at private-sector development. There is a strong South-South component to these suggestions. I am pleased to note that India, for its part, already has an ambitious and impressive technical cooperation programme with other countries.

Last but not least is the question of United Nations procurement. In each of the past two years, the United Nations system purchased well over $3.5 billion in goods and services for a wide range of operations. While the basic principles of United Nations procurement -- fairness, economy, quality and timely delivery -- need to be respected, it is important to secure these through a wider spread of procurement, especially from developing countries.

Indian industry has great potential in this respect, and an effort must be made to disseminate information so that Indian companies can be competitively placed. I hope the Confederation can play a role in this area. The United Nations offices in New Delhi will be able to help.

We live in an era in which questions relating to trade, investment, technology and other aspects of development are becoming ever more complex. The United Nations needs business and industry to make the contributions that they are uniquely placed to make. At the same time, I am convinced that the private sector's deeper involvement in our work is in the private sector's own best interests. To succeed, the United Nations needs partners -- not only Governments but the widest possible range of stakeholders. Let us work together, more closely than ever before, towards the goals we share.

In closing, I would like to thank the Confederation of Indian Industry for this opportunity to share my views with you. I look forward to hearing your comments and advice.

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