World leaders have given the reduction of global poverty top priority. And yet it persists. Indeed, in many countries whose governments lack either the desire or the ability to act, poverty has worsened. This book, a joint venture of a Harvard professor and an economist with the International Finance Corporation, argues that the solution lies in the creation of a new institution, the World Development Corporation (WDC), a partnership of multinational corporations (MNCs), international development agencies, and nongovernmental organizations (NGOs).
In "A Corporate Solution to Global Poverty," George Lodge and Craig Wilson assert that MNCs have the critical combination of capabilities required to build investment, grow economies, and create jobs in poor countries, and thus to reduce poverty. Furthermore, they can do so profitably and thus sustainably. But they lack legitimacy and risk can be high, and so a collective approach is better than one in which an individual company proceeds alone. Thus a UN-sponsored WDC, owned and managed by a dozen or so MNCs with NGO support, will make a marked difference.
At a time when big business has been demonized for destroying the environment, enjoying one-sided benefits from globalization, and deceiving investors, the book argues, MNCs have much to gain from becoming more effective in reducing global poverty. This is not a call for philanthropy. Lodge and Wilson believe that corporate support for the World Development Corporation will benefit not only the world's poor but also company shareholders as a result of improved MNC legitimacy and stronger markets and profitability.
"A Corporate Solution to Global Poverty provides a valuable--and exceedingly readable--primer on corporate social responsibility as well as a compelling approach to the use of corporate wealth to benefit the world's poorest."--Joshua Rosenthal, International Law and Politics
Acknowledgments ixList of Abbreviations xiPrologue 1PART I: The Legitimacy GapChapter 1: Introduction 9Chapter 2: The Legitimacy of Business 21PART II: Reactions, Responses, and ResponsibilitiesChapter 3: NGOs and the Attack: Critics, Watchdogs, and Collaborators 45Chapter 4: The Corporate Response 71Chapter 5: International Development Architecture 90Chapter 6: The Emerging International Consensus 117PART III: Global Poverty Reduction and the Role of Big BusinessChapter 7: The Options for Business Contributions 137Chapter 8: A World Development Corporation 155Notes 165Bibliography 177Index 185