Africa Leads

The Global Compact exists to close the gap between the outcomes of globalization and the needs of humanity. Nowhere can this disparity be seen more clearly, or is the work we do more urgent, than in Africa - a region which has been almost completely bypassed by globalization. Recent statistics paint a frustrating picture for human development in Africa - as indicated by health, education and income - particularly in Sub-Saharan Africa which accounts for 42 of the continent's 54 countries.

According to the UNDP's Human Development Report 2005, "in Sub-Saharan Africa the lethal interaction of economic stagnation, slow progress in education and the spread of HIV/AIDS has produced a free fall in [human development]". Perhaps one on the report's most stark findings is that "the chances of survival in Sub-Saharan Africa are not much better than in 1840s England".

Fortunately, these statistics do not tell the whole story; there are encouraging developments occurring across the continent. A rise in democracy and increases in foreign investment, however modest, are beginning to change the landscape for business, creating more opportunities for both small entrepreneurs and large companies. There is a growing consensus that, in the words of Secretary-General Kofi Annan, "it is the absence of broad-based business activity, not its presence, that condemns much of humanity to suffering". Therefore, promoting and supporting responsible entrepreneurship is the most effective way of overcoming poverty and improving human conditions. It is the surest, and arguably the safest way, to achieve successful development. Many articles in this Compact Quarterly provide direct evidence to support this view.

But responsible business practices will provide benefits to society only in an enabling environment. Business cannot grow or become competitive if public institutions are failing or ineffective. Men and women will not even attempt to grow their informal businesses into thriving small or medium-sized enterprises if bureaucrats punish them by seeking rents instead of offering effective support. Creating incentives in support of responsible entrepreneurship remains a huge challenge, but it is also holds the promise of enormous rewards.

The potential for improvement is greatest where the role of business is least established in society. And so, as the UN Global Compact prepares for our 4th International Learning Forum (Accra, Ghana on 22 - 24 November), we sincerely hope that by showing how businesses - large and small, foreign and local - can grow and prosper in Africa despite the many risks and challenges, we will give greater recognition to the fundamental role of business in society and thus help reinforce positive developments. A forthcoming publication, Africa Leads, will document the enormous entrepreneurial spirit that grows even where conditions are challenging.

The Global Compact firmly believes that through widespread replication of good business practices and the appropriate public policy to foster a more business-friendly climate, the statistics - and more importantly billions of lives - will improve.

Sincerely,

Georg Kell

Executive Director

Africa Leads

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