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2007-07-04 - Global Compact Alternative Hearing 2007

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Global Policy Forum Europe (Ed.

Whose Partnership for


whose development?
Corporate Accountability in the UN System
beyond the Global Compact

Speaking Notes
of a Hearing at the United Nations, Geneva, 4 July 2007, sponsored by
CETIM, Global Policy Forum, Berne Declaration, Greenpeace
International, Misereor and Corporate Accountability International

August 2007
Whose Partnership for whose Development? 2

Contents

1 Ann Zammit 3
UN-Business Partnerships and the Global Compact
2 Vicente Paolo Yu 6
The role of TNC’s in financing for development
3 ActionAid 9
UN Global Compact fails to stop corporate human rights violations
4 Daniel Mittler 11
Voluntary action by business is welcome – but the Global Compact
is flawed
5 Melik Özden 13
Sociétés transnationales et droits humains
6 Elisabeth Strohscheidt 17
Is John Ruggie, UN Special Representative on Business and
Human Rights, showing a way forward?
7 Peter Utting 20
Closing address: Whose Partnership for Whose Development?
Corporate Accountability in the UN System beyond the Global
Compact

On July 5 and 6, 2007 UN Secretary General Ban Ki-moon chaired the second
“Global Compact Leaders Summit” at the United Nations in Geneva. It was,
according to the UN, “the largest ever gathering convened by the United Nations
on the issue of corporate citizenship”.
The Global Compact claims to bring corporations together with the UN to
promote “responsible corporate citizenship” based on ten principles. But without
any effective monitoring and enforcement provisions, the Global Compact fails to
hold corporations accountable. On the contrary, companies can misuse the
Global Compact as a public relations instrument for “bluewashing”, as an excuse
and argument to oppose any binding international regulation on corporate
accountability, and as an entry door to increase corporate influence on the policy
discourse and the development strategies of the United Nations.
On the day before the Global Compact Leaders Summit, an international group of
NGOs and researchers met at the Palais des Nations in Geneva for a Hearing, to
assess the partnership approach of the Global Compact, to present specific case
studies of corporate misbehavior, and to discuss alternative proposals and next
steps for the United Nations towards real corporate accountability.
As many colleagues were interested in the Hearing but not able to participate, we
decided to publish the (more or less unedited) speaking notes and talking points
of the panellists. We hope that this informal documentation can contribute to the
growing critical discourse on UN-business relations and legally binding
accountability mechanisms for transnational corporations.
Jens Martens, Global Policy Forum Europe
Whose Partnership for whose Development? 3

1 Ann Zammit
UN-Business partnerships and the Global Compact

I shall address just a few issues, spanning both UN-business partnerships and
the Global Compact and hope that, despite being rather schematic, my
comments help generate a fruitful discussion.
1. “Critical” comment
My first point is that there is still a need to assert that “critical comment” on the
issue of UN-Businesss partnerships for development and the activities of the
Global Compact does not necessarily reflect an anti-business stance. Business in
one form or another has existed across the globe for generations and what is at
issue is the manner of conducting business and the regulatory framework within
which it operates. Perhaps business itself needs reminding of Milton Friedman’s
affirmation that the business of business is business within the existing
regulatory framework.
I recently reread a document published in 1978 that contains excerpts from the
internal files of major Swiss businesses in connection with their efforts to
influence UN discussions on establishing a code of conduct for multinationals.1
These included explicit efforts to discredit those pressing for such a code by
branding them as politically inspired. Such an attitude is wholly dismissive of
constructive comment and of the search for approaches that hasten development
in the South and contribute to greater North-South balance in the interests of all.
(This is not, of course, intended to suggest that Swiss business operates in a
manner significantly different or worse than any other.)
Those earlier initiatives to establish a UN code of conduct for multinationals were
aborted. The soft option of self-regulation, if there was to be any regulation at
all, won the day. Despite a number of voluntary initiatives to promote corporate
social responsibility since then, it would be hard to argue that this has been an
overwhelmingly successful approach, the efforts of the Global Compact and of
UN-business partnerships included.

2. Implementation of the ten Global Compact principles and assessment


of progress
There have been many criticisms of the Global Compact’s initiative to encourage
businesses to implement its 10 principles, in response to some of which the
Compact has introduced new measures. For example, a new process has been
introduced involving voluntary efforts to review and log companies’
Communications on Progress regarding their implementation of the ten
principles. This is a potentially beneficial step, though its usefulness depends on
the assessment framework that guides the reviews, the competence of the
reviewers, and the type of overarching analyses of the material derived from
these voluntary efforts. This is an area where skilled NGO personnel and
academics could make an important contribution to charting progress. But it is
equally important to ensure that there is a continual search for measures that
would enhance implementation of the principles.

1
Berne Declaration. 1978. The Infiltration of the UN System by Multinational Corporations.
Excerpts from internal files. Zürich.
Whose Partnership for whose Development? 4

3. The evolution of the global production system and the Global Compact
Nowadays, many of the large corporate participants in the Global Compact are
likely to be in the higher reaches of cross-border value chains and involved in
offshoring, outsourcing and subcontracting in countries with lower production
costs and associated lower wages and inadequate health and safety and
environmental standards. (A small example indicating the global nature of
production is that of Swiss watches: the industry’s current definition of a “Swiss
made” refers only to the “movement”, that is, the mechanical heart of a watch,
ignoring other, often expensive components, such as the bracelet, dial and
casing. Even under this definition, only 50 per cent of the value of the movement
has to be made in Switzerland to gain the designation “Swiss made”.) This
“vertical disintegration of production” applies in other industries such as the
electronics and automotive industries, in which the final article is composed or
many inputs made in different countries (known as the vertical disintegration of
production.
In parallel to this development, however, there has been a significant increase in
mergers and acquisition (M&As), including cross-border border M&As. (Currently
this process is being further propelled by the surge in private equity funds.)
Large companies individually, and in some sectors in concert, exercise
considerable pressure on supplier prices, thereby limiting the capacity of
enterprises and workshops at the bottom of the value chain to make significant
improvements in labour conditions and improve other standards.
Unless progress is made toward improving labour and other standards in low-
and middle-income countries as well as in the North, the Compact’s objectives
will be thwarted. In this context, it is incumbent on the Global Compact to give
greater attention to promoting decent work in the firms and workshops providing
supplies or undertaking offshore services. The capacity of such enterprises to
make significant improvements in labour and other standards is “squeezed” by
the hard bargain driven by buyers or outsourcing firms. Many are small- and
medium-sized enterprises (small employing less than 50 workers) and medium
employing between 50 and 200. Homeworkers doing sub-contracted work have
little or no bargaining power at all. (Most SMEs are too small to participate in the
Global Compact.) Concerted Global Compact initiatives, including UNIDO and
private sector firms, could work to upgrade technology and productivity in small
firms and thereby facilitate improvement in labour and other standards.
Nevertheless, this does not resolve the inbuilt imbalance in bargaining power
between large, often monopolistic or oligopolistic, businesses in the Global
Compact, that also exert exceedingly strong (oligopolistic) buying power, and
small supplier firms in lower wage countries. New Global Compact approaches
are therefore crucial: would this include promoting fair trade arrangements to
facilitate increasing adherence to GC principles at the bottom end of the supply
chain? And how can the Global Compact help to strengthen the bargaining
power of small and medium supplier enterprises in developing countries so that
they have the resources to better implement the GC principles?

4. UN-business partnerships
In relation to UN-business partnerships, the term “partnership” is a very elastic
word and does not always imply a well-defined arrangement with strict terms of
accountability. Many of the businesses involved in UN partnerships or public-
private partnerships intended to promote development are large multinational
Whose Partnership for whose Development? 5

businesses. In this context, I wish to point to some aspects that should be taken
into account when assessing such partnerships.
In my earlier work I drew attention to general absence of careful evaluation of
UN “partnering” initiatives and emphasized the need to assess the wider
associated socio-economic and socio-political outcomes of any particular
partnership activity. At that time, the more serious evaluation efforts seemed to
have been made in the field of health. Importantly, these assessments provided
strong support for the need to assess not only results in terms of the immediate
aims of the partnership activity, but also the wider implications.
When UN-Business partnerships involve relatively powerful businesses in
activities in low-income countries, assessment of partnership outcomes should
include aspects that have important potential sectoral and possibly national
macroeconomic effects. For example, partnerships may facilitate market
penetration by large foreign firms in a manner that distorts or prevents healthy
competition. If competition is deemed to be an issue of corporate social
responsibility in Europe (see recent statements by the European Competition
Commissioner), it is no less so in developing countries. Indeed such issues
should be considered prior to establishing partnerships, owing to the significant
development implications that in fact may need policy responses by the
government of the country concerned.
To sum up, I would suggest that too little attention is paid to the wider
development implications of the Global Compact and the UN’s partnering
initiatives, as also to the implications for multilateralism. Moreover, greater
attention to the “development thinking” that has emerged from the work of other
UN bodies such as UNCTAD, DESA, ILO and UNIDO could enable public-private
initiatives proceed to better effect in developing countries.

Ann Zammit is an independent researcher and, among other things, author of


Development at Risk: Rethinking UN-Business Partnerships.
Whose Partnership for whose Development? 6

Vicente Paolo Yu

2 Talking Points on the role of TNC’s in financing


development

When one speaks of the role of foreign direct investment (FDI) from
Transnational Corporations (TNCs) in financing the development of their host
economies, it can be said that TNCs can provide supplementary financial
resources, technologies, managerial skills, employment opportunities, and play a
positive role in economic and social development of host countries.
FDI global inflows have shown a 29% increase to US$916B in 2005 as compared
to 2004, although inflows to developed countries (US$542B) continue to outstrip
inflows into developing countries (US$334B). Furthermore, most global FDI to
developing countries remain concentrated in only a few countries – mostly in
East Asia (such as China, Hong Kong, Singapore, India, and some of the ASEAN
countries). In 2005, global FDI outflows in 2005 amounted to US$779B. FDI is
still currently generally undertaken by TNCs, largely coming from developed
countries.
But FDI outflows from developing countries – mostly from Hong Kong, British
Virgin Islands, Russia, Singapore, and Taiwan Province of China – is also slowly
increasing (amounting to US$133B or 17% of outward FDI – but most of that
come from offshore tax havens such as the British Virgin Islands with US$123B).
In addition, global FDI flow increases have been spurred not by greenfield
projects but by cross-border corporate mergers and acquisitions (M&As) – worth
US$716B in 2005 – and mostly in services industries such as finance,
telecommunications, and real estate. There has been sharp decline in FDI into
manufacturing, and increase of FDI into primary commodities and natural
resource sectors (such as energy, mining).
TNCs now have approximately 77,000 parent companies with around 770,000
foreign affiliates, generating in 2005 approximately US$4.5Tr in value added,
employing approximately 62 million workers, and trading goods and services
valued at more than US$4Tr. TNCs continue to come largely from the EU, Japan,
and the US. Developing country TNCs sold in 2005 approx US$1.9Tr and
employed approximately 6 million workers.
Discussing the activities of TNCs, especially in relation to trade and FDI, is
important because much of global trade is carried out through intra-firm trade
(e.g. 1/3 of goods exports from Japan and US), and increases of TNC-driven FDI
often correlate to increased intra-firm trade. Much intra-firm trade between TNC
affiliates in DdCs often have little value-added since it is probably composed of
nearly finished goods destined for marketing and distribution. Furthermore,
intra-firm trade between TNC affiliates in developed and developing countries
often involve the assembly of imported inputs for re-export to foreign markets
(e.g. maquiladoras). The increase in intra-firm TNC trade reflects a greater
degree of internationalization of production and value chains – implying greater
degree of dependence on openness of overseas markets for continued economic
growth and production. The concentration of intra-firm trade in specific products
(e.g. information and communications technology) implies that international
Whose Partnership for whose Development? 7

transmission of specific industry or product-specific shocks may be more rapid


(e.g. downturn of demand for ICT products in the US are likely to rapidly affect
ICT goods and components production in Asia).
There are many possible downsides to having a strong reliance on TNC-driven
FDI as a means for capital accumulation, especially in developing countries.
These include the following:
• TNCs’ financial and technological resources, global reach and scale of
operations often provide them with abilities that may make it difficult for
host governments to effectively regulate their conduct and harness their
potential to contribute to development;
• Their global scale of operations provide TNCs with flexibility to respond to
exchange rate movements, minimize their global tax bill, circumvent
financial or capital control restrictions, minimize political risks/provide
political risk cover, access to information, and the ability to bargain with
host government from position of strength;
• The difficulties in many developing country host governments to effectively
regulate TNC activity could lead to conflicts between TNC commercial
objectives and host country developmental policy objectives
• TNCs could engage in restrictive business practices, transfer price
manipulation, or other anti-competitive behaviour to the detriment of
domestic corporations.
However, regulatory trends in many developing countries relating to FDI have
continued to be on the liberalizing trend that seeks to facilitate TNC-driven FDI,
involving simplified investment procedures; enhanced fiscal and administrative
incentives; reduced taxes – race to the bottom; generally greater openness.
Contradictorily, developed countries are now also showing increased protectionist
tendencies vis-à-vis FDI from developing countries into certain economic sectors
deemed to be on strategic interest to the host developed countries (e.g. ports
and airports).
Past attempts to establish a set of binding rules on TNC conduct (e.g. the
initiative on the UN Code of Conduct on TNCs in the late 1970s to the early
1990s) have failed. Initiatives to establish non-binding or voluntary guidelines,
e.g. UNCTAD’s Set on Restrictive Business Practices, the Global Compact, the
OECD Guidelines on MNEs, national initiatives, NGOs campaigns, do not provide
for a legally enforceable set of investor and home country obligations that could
ensure that TNC-driven FDI do provide developmental benefits to the host
developing country. This lack of global rules, and the consequent reliance on TNC
voluntary compliance with non-binding guidelines, has resulted in many cases of
TNC malpractice – both in developed and developing countries – in the financial
and operational areas.
Norms which could be made legally enforceable at the global or domestic level
with respect to TNC investor conduct and their home countries’ obligations would
be required to effectively ensure that TNC operations provide positive rather than
negative development outcomes for host developing countries. The UN,
especially through UNCTAD, should take the lead in developing such norms. It
should be more responsive to developing country concerns on TNC regulation;
and focus on setting international policy framework for TNC regulation. Some
suggested norms on TNC regulation from a developing country perspective can
be found in, for example:
Whose Partnership for whose Development? 8

• South Centre, Enhancing Positive Corporate Contributions to


Development: Making Corporate Responsibility for Development
Operational in the UNCTAD XI MTR Context (SC/GGDP/AN/GEG/2, May
2006), at
http://www.southcentre.org/publications/AnalyticalNotes/GlobalEconomicG
ov/2006May_CSRinUNCTADXIMTR.pdf
• WTO, Submission by China, Cuba, India, Kenya, Pakistan, Zimbabwe –
Investors’ and Home Governments’ Obligations (WT/WGTI/W/152, 19
November 2002).

Vicente Paolo Yu is Programme Coordinator of the South Centre's Global


Governance for Development Programme.
Whose Partnership for whose Development? 9

ActionAid International2

3 UN Global Compact fails to stop corporate human


rights violations

"What is needed are legally-binding regulations to control corporate activities


with respect to human rights."

The UN flagship initiative on corporate responsibility - the Global Compact - is


failing to stop corporate human rights violations, says ActionAid ahead of a UN
summit on corporate responsibly in Geneva this week.
“These companies are trampling over the lives of thousands of poor people,
locking women and children into a vicious cycle of hunger,” said Aftab Alam
Khan, head of trade from ActionAid during the launch-week of ActionAid’s
HungerFREE campaign.
World leaders and global business chiefs will convene for the Global Compact
Leaders Summit (5-6 July 2007) to assess progress on the seven-year-old
voluntary initiative aimed at promoting human rights standards for corporate
operations.
“The UN’s Global Compact is flawed because it’s entirely voluntary,” said Khan.
“What’s needed are legally-binding regulations to control corporate activities with
respect to human rights.
“It’s been a mockery because several companies violating human rights have
been free to join and remain in the Global Compact - benefiting from an
association with the UN,” he added.
More than 3,000 corporations worldwide, including Anglo American, Coca-Cola,
Ericsson, Tata Steel and Fuji Xerox, have joined the Global Compact since it was
launched in 2000 in an effort to encourage multinationals to voluntarily adopt ten
UN standards on human rights, labour, environment, and anti-corruption.
One of the key figures at the Leaders Summit will be the chairman of Anglo
American, Sir Mark Moody-Stuart, who is also a member of the UN’s Advisory
Council for the Global Compact.
He is a leading advocate of responsible corporate behaviour and urges a greater
role for big business in tackling poverty in Africa.
AngloGold Ashanti – a subsidiary of the $17bn mining giant Anglo American – is
operating in Obuasi, Ghana, and research carried out by ActionAid in 2006
indicated its activities were allegedly causing:
• Rivers and streams to become polluted with arsenic and iron from past
gold mining.
• Farmers to lose their livelihoods because land has been poisoned by
cyanide.
• Brutality and human rights abuses involving company security guards
against local men suspected of mining illegally on AGA property.

2
The following text was published by ActionAid as press release on 4 July 2007.
Whose Partnership for whose Development? 10

ActionAid says only a tiny proportion of the world’s 77,000 multinationals have
joined the Global Compact, pointing to the real need for universally binding
standards for all companies.
Over the last few months, Anglo Platinum, another subsidiary of Anglo American
(74%-owned) has entered into an explosive standoff with local communities at
the Bushveld mineral complex in the Limpopo region of South Africa.
“More than 17,000 people are being relocated to townships where there are no
jobs and no land - their whole way of life has been taken away from them,” said
Khan. “We are shocked by cheap offers of compensation for the loss of these
people’s pastures and livelihoods.”
The Global Compact makes no specific reference to economic social and cultural
rights. The principles also neglect the responsibilities of companies with respect
to development, gender discrimination, indigenous peoples, corporate
transparency and tax avoidance.
As part of the launch of its new HungerFREE campaign, ActionAid is calling on the
UN and member states to engage seriously to agree on global human rights
standards to hold all companies to account for violations of human rights and to
establish effective monitoring and enforcement mechanisms.
Notes:
While Anglo Gold Ashanti (AGA) acknowledges some of the issues contained in public
reports, investigations by ActionAid reveal serious discrepancies between AGA’s official
version of events and the accounts of local witnesses.
Villages, community leaders, academics and civil society campaign groups claim large-
scale surface and open-pit gold mining activities by AGA – and previously AGC – are
responsible for widespread social and environmental degradation in Obuasi, Ghana, and
demand urgent action and compensation.

ActionAid’s statement was presented by Aftab Alam Khan, international coordinator


of ActionAid’s Stop Corporate Abuse and Trade Justice Campaigns.
Whose Partnership for whose Development? 11

Daniel Mittler

4 Voluntary action by business is welcome –


but the Global Compact is flawed

Greenpeace supports businesses when they do the right thing, such as


eliminating climate-damaging gases in their cooling systems or stopping soy
production in the Amazon. We have constructively worked with firms such as
Unilever in making their cooling systems free of HFC’s – some of the worst
climate killing gases - and with McDonald’s, who helped us to achieve a current
moratorium on the expansion of soy production in the Amazon3.
Greenpeace opposes all ‘Greenwash’. We are only in the business of applauding
concrete steps that really benefit the environment and people. Greenpeace is
fiercely independent. We take no money from corporations (or governments) and
we do not endorse brands. Greenpeace also believes that voluntary action,
though welcome, can never be a substitute for much needed government
regulation.
Greenpeace is therefore opposed to the UN Global Compact:
It is not the business of the United Nations to organize business roundtables. It
is the job of the United Nations to set binding international standards and ensure
that these can and are enforced. The world does not need more talks shops and
glossy brochures. The world needs action and global binding codes for corporate
behaviour. The World Summit on Sustainable Development in 2002 committed
governments to “actively promote corporate responsibility and accountability…
including through the full development and effective implementation of
intergovernmental agreements and measures, international initiatives and …
appropriate national regulations”4. The world is still waiting for governments to
fulfill this promise, rather than to waste time on merely voluntary efforts such as
the Global Compact.
The Global Compact is not delivering. Even a sympathetic analysis by McKinsey5
showed that only in 10% of all cases was there any evidence of companies doing
something that they would otherwise not have done as a result of being a
member of the Global Compact. Only in 50% of all cases was there evidence of
companies doing specific projects that related to the Global Compacts’ aims. This
is simply not good enough, especially as these are results based on self-reporting
by companies.
The Global Compact principles are too vague to be meaningful and fail to be
clearly defined and enforced. Global Compact Principle 7, for example, calls for a
“precautionary approach to environmental challenges”. Yet companies that
ignore precaution by producing unproven to be safe genetically modified
organisms, such as Novartis, or proven to be dangerous nuclear power, such as
Areva, are allowed to be members of the Pact. The UN is endangering a very

3
See: http://www.greenpeace.org/international/news/ask-and-ye-shall-receive-comp and
http://www.greenpeace.org/international/news/McVictory-200706
4
See:
http://www.un.org/jsummit/html/documents/summit_docs/131302_wssd_report_reissued.pdf
5
See:
http://www.unglobalcompact.org/docs/news_events/9.1_news_archives/2004_06_09/imp_ass.pdf
Whose Partnership for whose Development? 12

high value good, it’s reputation, by associating its name with such activities
through the Global Compact.
At the Second Leaders Summit on the Global Compact, a new climate initiative of
the Compact will be launched6. Greenpeace welcomes that this initiative seems
to support a second commitment period of the Kyoto Protocol, with drastic
binding cuts in greenhouse gas emissions in developed countries. This is the only
way to ensure a stable (and meaningful) price of carbon, as the statement
demands. However, again, this initiative is too vague and - as a voluntary
addition to the voluntary Global Compact - too weak, to be meaningful in 2007
when the need for urgent action on climate change can no longer be questioned7.
We are also deeply concerned that companies such as Areva or RWE are
signatories of this initiative. Areva is behind a new-built nuclear power plant in
Finland, which is already 1.5 years late and 400-700 million over budget. By
signing the Global Compact initiative, Areva is no doubt trying to pretend that
dangerous and expensive nuclear power, can be part of the solution to the
climate crisis. This is simply not the case8. If anything, nuclear power cements
the kind of centralized energy system, that we need to overcome in order to
deliver real emission reductions in the power sector. RWE, meanwhile, is
pursuing plans to build further coal-fired power plants, which will tie the world
into long-term carbon-dependency. RWE’s continued support for coal, including
the worst kind of coal, lignite, is incompatible with taking climate change
seriously.
The UN should not allow its name to be misused by such companies, which have
failed to catch on to the energy revolution the world needs – an energy
revolution based on energy efficiency and sustainable renewable energy
production9. Only such an energy revolution will prevent dangerous climate
change, as the UN Framework Convention on Climate Change demands. We
believe the UN Secretary General, Ban Ki-Moon, is genuine in his concern for
climate change. We therefore ask him to disassociate himself from
‘greenwashing’ attempts by the coal and nuclear industries through the Global
Compact.

Daniel Mittler is a Political Advisor to Greenpeace International based in Berlin.


He is one of the founders of CorA - the German Network on Corporate
Accountability (www.cora-netz.de) and led the Friends of the Earth International
"Don't let big business rule the world" campaign for the World Summit on
Sustainable Development in 2002.

6
See: http://www.globalcompact.org/docs/issues_doc/Environment/CLIMATE_STATEMENT.pdf
7
See: www.ipcc.ch
8
See: http://www.greenpeace.org/international/press/reports/the-economics-of-nuclear-power
and http://www.greenpeace.org/raw/content/international/press/reports/briefing-nuclear-not-
answer-apr07.pdf
9
Greenpeace has shown that a 50% reduction in the energy sector is possible by 2050, see:
www.energyblueprint.info
Whose Partnership for whose Development? 13

5 Melik Özden
Sociétés transnationales et droits humains

Les violations graves et massives des droits humains commises par les Sociétés
transnationales (STN) ces dernières années rivalisent avec celles causées par les
Etats et qui y sont souvent associées. Ces violations concernent entre autres:
• les dommages causés à l’environnement
• le travail des enfants
• la criminalité financière
• les conditions de travail inhumaines
• l’ignorance des droits du travail et des droits syndicaux, etc.
Cependant, il n’existe pas de mécanismes au niveau international pour prévenir
et le cas échéant sanctionner les agissements criminels des STN. Et au niveau
national, les STN sont passées maîtres pour éluder leurs responsabilités en
recourant à différentes pratiques abusives telles que le transfert d’activités
interdites ou réglementées dans un Etat vers des pays disposant d’une
réglementation moins importante et/ou en obtenant de réglementations les
moins contraignantes possible en menaçant les gouvernements et les travailleurs
de délocalisation.
Les violations des droits humains commises par les STN se faisant de plus en
plus nombreuses et étant de plus en plus graves, la communauté internationale
s'est orientée vers l'adoption de codes de conduite volontaires, donc aux
dispositions non contraignantes, tel que le Global Compact. Or, comme nous le
verrons dans cet exposé, cette solution revient clairement à faire primer le droit
des affaires sur les droits humains universellement reconnus. Le rapport de force
est certes défavorable, mais il est urgent que les mouvements sociaux,
organismes de défenses des droits humains et les citoyens exigent aujourd’hui
que les activités des STN soient encadrées juridiquement (et non
volontairement) à l'échelle internationale si l’on veut mettre fin à l’impunité dont
jouisse des STN et prévenir les violations futures.

Encadrement des STN au niveau international


La question de l’encadrement juridique des STN au niveau international s’est
posée dès les années 70. Les questions suivantes sont soulevées :
• faut-il adopter un code de conduite volontaire ou contraignant destiné aux
STN?
• les entreprises nationales doivent-elles également être visées?
• comment répartir les responsabilités entre pays hôtes et pays d’origine
dans le contrôle des activités des STN?
En 1974, l’ECOSOC créa en son sein la Commission des sociétés transnationales et
le Centre sur les sociétés transnationales avec le mandat «d'élaborer un code de
conduite des sociétés transnationales». Bien que la Commission des STN soit
Whose Partnership for whose Development? 14

arrivée à un compromis sur la «majorité des dispositions» d'un code de conduite,


il est finalement resté dans les tiroirs de l'ONU.
Démarches à la Sous-Commission
La montée en puissance des STN dans les années 80 et 90 a de nouveau mis à
l’ordre du jour leur encadrement juridique au niveau international.
Le CETIM, en collaboration avec son partenaire l’Association américaine des
juristes, a mené des réflexions sur un encadrement juridique efficace des STN au
niveau international:
• De quelle manière peut-on, dans le cadre des normes nationales et
internationales en vigueur, rendre effectif l’encadrement juridique des STN et de
leurs dirigeants?
• De quelle manière peut-on, dans le cadre des juridictions nationales et
internationales, les sanctionner en cas de transgression de ces normes?
• Comment consolider et développer les normes spécifiques existantes
concernant les STN?
• Quels sont les enjeux du débat sur les codes de conduite pour les sociétés
transnationales, qu’ils soient volontaires ou contraignants?
Guidés par ces réflexions, nos deux ONG ont contribué à la création en 1998 d’un
Groupe de travail sur les STN au sein de la Sous-Commission de la promotion et
de la protection des droits de l’homme de l’ONU10.
Normes sur la responsabilité en matière de droits de l’homme des sociétés
transnationales et autres entreprises
En 2003, un «Projet de normes sur la responsabilité en matière de droits de
l’homme des sociétés transnationales et autres entreprises»11, élaboré par le
Groupe de travail en question, a été adopté par la Sous-Commission.
Les normes reconnaissent la responsabilité des STN pour leurs activités
dommageables en matière de droits humains et leur impose des conditions
générales pour le respect de ces derniers. Elles exigent entre autres que les STN
« reconnaissent et respectent les normes applicables du droit international, les
dispositions législatives et réglementaires ainsi que les pratiques administratives
nationales, l’Etat de droit, l’intérêt public, les objectifs de développement, les
politiques sociales, économiques et culturelles, y compris la transparence, la
responsabilité et l’interdiction de la corruption, et l’autorité des pays dans
lesquels elles opèrent» (art. 10).
Fruit d’un consensus, ces normes comportent évidemment des lacunes, mais
force est de reconnaître que nous ne disposons d’aucun autre instrument de
référence au niveau international pour contrôler les activités des STN, nuisibles
aux droits humains. A ce titre, ces normes constituent un ensemble complet,
précisant la responsabilité des STN. Il s’inscrit dans un cadre juridique visant un
contrôle effectif des activités des STN.
Position de la CDH et du milieu patronal

10
Résolution intitulée «Rapport entre la jouissance des droits économiques, sociaux et culturels et
du droit au développement et les méthodes de travail et activités des sociétés transnationales»
(E/CN.4/Sub.2/RES/1998/8).
11
E/CN.4/Sub.2/2003/12/Rev.2, adopté le 13 août 2003 par la résolution de la Sous-Commission
de la promotion et de la protection des droits de l’homme de l’ONU, E/CN.4/Sub.2/RES/2003/16.
Whose Partnership for whose Development? 15

Saisie en 2004 par la Sous-Commission, la Commission des droits de l’homme


(CDH), soumise à la pression du milieu patronal, a esquivé le débat sur les
normes sur les STN.
En effet, dès le départ, le milieu patronal, par l’intermédiaire de l’Organisation
internationale des employeurs (IOE) et la Chambre de commerce international
(ICC), s’est opposé à l’élaboration du projet de normes. Tout au long du
processus, ces organisations ont insisté sur le fait que la Sous-Commission
devrait élaborer un code de conduite volontaire, s’opposant fermement à toute
règle contraignante.
Selon elles:
• les normes nuiraient aux projets d’investissement, en particulier dans les
pays du Sud;
• le Global Compact, partenariat volontaire des STN avec l’ONU, est
largement suffisant comme outil. Nul n’est besoin d’opter pour des normes
contraignantes;
• les STN ne sont pas concernées par les droits humains, c’est le devoir des
Etats de les respecter. L’adoption des normes reviendrait à «privatiser»
(sic) les droits humains!
S’agissant du premier point, les exemples démontrent que les investissements
des STN sont souvent éphémères et ne correspondent pas aux besoins des
populations locales ou sont dommageables pour la santé et l’environnement.
S'agissant du Global Compact, dès le départ, la grande majorité des ONG et
mouvements sociaux l'ont désapprouvé en le qualifiant de marché de dupes.
En effet, cet accord ne s’inscrit dans aucun cadre juridique clair et ne décrit
nulle part les moyens et capacités envisagés pour vérifier le respect par les
STN des engagements qu’elles voudraient bien prendre.
A bien des égards, ce partenariat semble avant tout être destiné à offrir aux
STN signataires, souvent accusées de violer les droits humains, le moyen de
redorer leur image auprès de l’opinion publique.
Quant au troisième point, les STN ne sont pas au-dessus des lois. Bien que seuls
les Etats soient sujets du droit international et, à ce titre, chargés de faire
respecter les droits humains et de les promouvoir, les STN sont aussi tenues de
les respecter comme tout un chacun. En effet, le dernier article de la Déclaration
universelle des droits de l’homme précise qu’« aucune disposition de la présente
Déclaration ne peut être interprétée comme impliquant pour un Etat, un
groupement ou un individu un droit quelconque de se livrer à une activité ou
d’accomplir un acte visant à la destruction des droits et libertés qui y sont
énoncés» (art. 30).
Bien que les arguments du milieu patronal ne résistent pas à l’analyse de la
réalité, l’écrasante majorité de la Commission des droits de l’homme a été
sensible à leur thèse et a privilégié les intérêts d’une minorité d’élites de leurs
pays à l’intérêt général de l’ensemble de leurs concitoyens. Ainsi, en 2005, la
Commission des droits de l'homme a ignoré une fois de plus les normes
élaborées par les experts de la Sous-Commission. Elle a décidé la nomination
d’un représentant spécial du Secrétaire général sur les STN avec un mandat dont
l’esprit ressemble fâcheusement au Global Compact. D’ailleurs, le Secrétaire
général a nommé à ce poste le père du Global Compact en la personne de M.
John Ruggie.
Whose Partnership for whose Development? 16

Depuis sa nomination en 2005, M. Ruggie a présenté deux rapports. Dans ces


documents, le Représentant spécial se positionne en substance contre un
encadrement juridique contraignant, autrement dit un contrôle efficace externe,
des activités des STN et fait l’éloge des initiatives volontaires telles que le Global
Compact et les Principes directeurs de l’OCDE. A l’instar de tous les mandats
thématiques, son mandat a été prorogé d’une année par le nouveau Conseil des
droits de l’homme. Vu ses deux premiers rapports et sa vision sur le monde des
affaires, il est illusoire d’attendre une solution de la part du Représentant spécial
sur cette question.

Conclusion
A titre de conclusion, je dirai deux choses:
1) si le statu quo est maintenu, cela équivaudra au maintien de la juridiction de
la Banque mondiale (Centre international pour le règlement des différends
relatifs aux investissements, CIRDI) et de l'Organisation mondiale du commerce
(Organe de règlement des différends, ORD) sur les agissements des STN. Or
pour ces organismes, les intérêts privés priment sur les droits humains qui ne
sont d'ailleurs pas pris en considération;
2) Malgré les pressions fortes du milieu patronal et le manque de volonté
politique des Etats pour un encadrement juridique contraignant au niveau
international, il ne faut pas baisser les bras. Il faut poursuivre le travail et la
mobilisation, car il s’agit du respect des droits humains et de la défense des
principes démocratiques.

Melik Özden est Directeur du Programme Droits Humains du CETIM et


Représentant permanent auprès de l’ONU.
Pour plus d'information sur cette question, prière de se référer à la brochure du
CETIM intitulée «Sociétés transnationales et droits humains», Genève, novembre
2005 (www.cetim.ch/fr/publications_details.php?pid=125 pour la version
française et www.cetim.ch/fr/publications_details.php?pid=125 pour la version
anglaise) et au dossier sur cette même question sur notre site
(http://www.cetim.ch/en/dossier_stn.php).
Whose Partnership for whose Development? 17

Elisabeth Strohscheidt

6 Is John Ruggie, UN Special Representative on


Business and Human Rights, showing a way
forward?
In July 2005, Harvard Professor John Ruggie – one of the mental fathers of the
Global Compact - was appointed by the then UN Secretary General, Kofi Annan,
as his Special Representative for questions on „Business and Human Rights“. His
appointment was a consequence of the unanimous approval of the „UN Norms on
the Responsibilities of Transnational Corporations and Other Business Enterprises
with Regard to Human Rights“ by the UN Sub-Commission on the Promotion and
Protection of Human Rights in August 2003. NGOs had seen the comprehensive
draft submitted after years of intensive work by the Sub-Commmission as an
excellent starting point to strengthen corporate responsibility and accountability
for human rights at UN level, and to achieve an international level playing field.
Not so the majority of the business world and nation states at the (then) UN
Human Rights Commission. They avoided to discuss the UN Norms in any detail.
Instead, they pointed out that they had never asked for such a document and
that it had no legal status. However, they noticed „useful elements“ within the
Norms, but did not identify them. In spite of its opposition to the UN Norms, the
Commission had to acknowledge the importance and urgency to deal with the
negative impacts of economic globalisation. Thus, their resolution 2005/69
recommended the above mentioned appointment of a Special Representative by
the UN Secretary General.
John Ruggie was asked:
a) To identify and clarify standards of corporate responsibility and accountability
for transnational corporations and other business enterprises with regard to
human rights;
b) To elaborate on the role of States in effectively regulating and adjudicating
the role of transnational corporations and other business enterprises with regard
to human rights, including through international cooperation;
c) To research and clarify the implications for transnational corporations and
other business enterprises of concepts such as „complicity“ and „sphere of
influence“;
d) To develop materials and methodologies for undertaking human rights impact
assessments of the activities of transnational corporations and other business
enterprises;
e) To compile a compendium of best practices of States and transnational
corporations and other business enterprises.
At the end of his 2year-mandate, he was meant to come up with views and
recommendations to the (now) Human Rights Council of how to further proceed
with the topic, in order to strengthen corporate responsibility and accountability
for human rights.
Up to now, John Ruggie presented two reports, and more than two dozen
research and discussion papers on various topics. On his own request, his
mandate has just been extended by the 5th session of the Human Rights Council
until mid-2008, in order to enable him to come up with views and
Whose Partnership for whose Development? 18

recommendations, as requested. His reports were disappointing, at least to many


NGOs, as they limit themselves to describing what is there. They lack vision for
the way ahead. Ruggie himself said that he stands for a „principled pragmatism“,
and that he is not up to develop one international instrument that might find the
way through the UN system in 10 or 20 years. He wants to see results in the
medium run.
John Ruggie’s reports focus on state responsibilities and obligations rather than
on corporate accountability. He holds that states have a duty to respect human
rights, as well as to protect and fulfill human rights, whereas companies only
have a duty to respect human rights – an issue certainly worth to be debated.
With regard to business operations, Ruggie emphasises the state duty to protect,
i.e. the duty of the state to protect all human rights of its citizens (and those
living on its territory), also against violations by third parties, including
companies.
Ruggie emphasises that such a duty to protect not only lies with host
governments, but also with home governments of companies. Home
governments are also responsible and shall be held accountable for the human
rights performance of „their“ companies abroad. Strengthening such
„extraterritorial state obligations“, as Ruggies does, and his shift of focus from
host to home governments certainly is an important step forward to hold
companies accountable.
Ruggies arguments for
• effectively using and strengthening soft law instruments, such as, e.g. the
OECD-Guidelines for Multinational Enterprises, the Voluntary Principles on
Security and Human Rights, the EITI process, and many others, and,
where necessary, develop new ones,
• making better use of UN special mechanism to report on issues of
corporate responsibilities for human rights, and to hold states and
companies accountable towards human rights standards,
• using legal avenues available (such as the Alian Tort Claims Act in the US,
other national laws, the International Criminal Court etc.) and for
developing new laws where appropriate
are also to be supported. If effectively implemented, all these mechanisma can
strengthen and further empower the victims of human rights violations to hold
companies accountable.
In his second report of February 2007, as well as in a recent public debate in
Berlin, Ruggie explicitly stated that, „clearly, a more fundamental institutional
misalignment is present: between the scope and impact of economic forces and
actors, on the one hand, and the capacity of societies to manage their adverse
consequences, on the other“.12 One of the goals he has set for himself and his
team for the next 8 months or so is to come up with views and recommendations
of how to align this structural misalignment and how to close the gap of access
to effective remedy for the victims of human rights violations. To come up with
sustainable recommendations, Ruggie and his team will look into a number of
investment agreements, some of which may severely undermine a state’s
capability and willingness to improve existing legislation in order to strengthen
human rights or environmental standards. If John Ruggie can come up with

12
A/HRC/4/35, 19 February 2007, p. 5 (paragraph 3)
Whose Partnership for whose Development? 19

recommendations that would alleviate – or even remove- the de facto dominance


of trade law over human rights law this would be a real step forward.
Thus, Ruggie’s „principled pragmatism“ can make some real change and go
„beyond the Global Compact“. However, a globalising world, where the economic
and political power of some Transnational Corporations, as well as that of some
large state owned companies, by far exceed that of many nation states, certainly
can’t do without an effective international mechanisms to hold all of them
accountable on universally agreed human rights standards. Anything less means
to continue living with inacceptable patchwork solutions. As long as there is no
such valid international instrument in sight, we should think of establishing a
dispute settlement mechanism at UN level that would be accessible to the victims
of human rights violations. Here their complaints, as well as the response from
companies, should be heard by a body of independent experts. One could learn
from the OECD guidelines. Maybe it is time to re-establish the UN Centre for
Transnational Corporations that, unfortunately, had been dissolved in the 1990s.

Elisabeth Strohscheidt is human rights desk officer at MISEREOR (the German


Catholic Bishops‘ Organisation for Development Cooperation).
Whose Partnership for whose Development? 20

Peter Utting

7 Closing address: Whose Partnership for Whose


Development? Corporate Accountability in the UN
System beyond the Global Compact

This hearing is concerned with how the United Nations system might promote
corporate accountability, and how current approaches, centred on the Global
Compact, public-private partnerships and corporate social responsibility (CSR),
cannot meet this challenge. How then do we move “beyond the Global Compact”,
as suggested in the title of this hearing?
The panelists have each focused on different aspects of corporate practice, public
policy and governance arrangements that need to be reformed or transformed.
And they have identified some current reform initiatives where civil society
advocacy might yield results. In these brief closing remarks, I would like to
highlight a number of institutional developments and forms of regulatory politics
that are essential in strategies to promote corporate accountability, but which
are somewhat different to those associated with CSR.
Before doing so, however, we should remind ourselves what corporate
accountability means. Like CSR, there are various definitions. But for the
“movement” of activists and academics concerned with taming corporate
capitalism it seems to suggest four things:
First, that we can’t rely on companies to put their own house in order through
self-regulation and voluntary initiatives, or a combination of CSR and minimalist
regulation. As evidenced by recent cases of companies such as BP, Siemens and
KPMG that had a high profile in CSR circles, companies and managers are simply
under too much pressure to cut costs; compete and maximize profits in ways
that inevitably generate perverse social, labour, environmental, governance and
fiscal effects; as well as to seek out new frontiers where regulations and rights
can be ignored.
Second, in view of this situation, companies must be held to account. This
implies not just responsibility but some sort of obligation to answer to others
through, for example, mandatory reporting and disclosure, as well as more
effective independent monitoring and auditing.
Third, companies that fail to comply with agreed standards must incur some sort
of penalty or cost. This contrasts sharply with CSR practice where such costs are
often limited to the reputational arena, or where there is impunity. This implies
not only that new regulations and laws may be needed but that regulatory and
legal institutions must have the capacity to implement existing standards and
prosecute malpractice.
Fourth, victims of corporate wrong-doing must be able to channel grievances,
settle disputes and seek redress.
The corporate accountability agenda that has developed since the World Summit
on Sustainable Development in 2002 is, then, quite different to the CSR agenda
that took-off internationally around the time of the Earth Summit ten years
earlier.
Whose Partnership for whose Development? 21

Let’s turn now to what needs to be done to overcome the limitations of the
approach that is symbolized by the Global Compact. I say “symbolized” because
any criticism people might have of the Global Compact is really a criticism of
CSR, i.e. that:
• it provides ample space for companies to engage in window-dressing and
cherry pick among standards;
• it is characterized by weak implementation of agreed standards
throughout corporate structures and supply chains;
• reporting standards and procedures are weak;
• there are no significant penalties for non-compliance;
• global corporations gain undue influence in the public policy arena and
unfair competitive advantages through their association with the United
Nations and public-private partnerships; and
• key issues that explain why corporate capitalism and its institutions fuel
underdevelopment or unsustainable development are often ignored.
There are also concerns that CSR in general, and the Global Compact in
particular, are a means of diverting attention from harder regulatory alternatives.
It should be noted that the Global Compact explicitly states that it is not
intended to displace other regulatory approaches. But in some sense, the Global
Compact has become “the only game in town”, given its considerable success in
expanding the number of participating companies, spreading the word about CSR
and partnerships throughout the world, and in demonstrating a remarkable
capacity to convene corporate, political and civil society leaders.
To go beyond this approach, various paths need to be pursued simultaneously.
The first involves the “hardening” or “ratcheting-up” of voluntary initiatives. To
some extent this is already happening, largely in response to criticism and civil
society pressures. CSR standard-setting, reporting and monitoring institutions
have evolved and matured through time, and complaints procedures are
gradually being developed. Even the Global Compact, which has often claimed to
be nothing more than a forum for learning and dialogue, has been nudged in this
direction. Companies must now report on progress; they are rendered “inactive”
if they fail to report; a mild complaints procedure was introduced last year, and
most recently, an external review procedure has been established for the
“Communications on Progress” that companies must submit. These mechanisms
need to be tried and tested to prove their worth, but at least on paper, such
reforms suggest a slight shift in the pendulum away from self-regulation toward
corporate accountability.
The second path involves expanding the body of national, regional and
international norms and law related to corporations. International law is now
going beyond a focus on state actors and, as the lawyers say, is “fixing”
increasingly on corporations. There has been a proliferation of so-called
international “soft” law, involving declarations, resolutions, guidelines, and codes
related to corporate activities. At the national level we see, in some countries,
laws mandating various forms of reporting and disclosure. But while the body of
standards and laws has expanded, there are still major weaknesses in regulatory
capacity of both states and civil society organizations, including trade unions. It
is perhaps this feature of the neoliberal paradigm, namely the weakening of state
Whose Partnership for whose Development? 22

regulatory capacity and basic labour rights, that requires the most urgent
attention.
The third involves enhancing the ability of victims of corporate wrong-doing to
use the existing regulatory or legal infrastructure to settle disputes and seek
redress. This is occurring in countries such as the United States and the United
Kingdom where cases have been brought against companies for wrongs
committed abroad, or in India through Public Interest Litigation. The Aarhus
Convention allows NGOs in countries that host TNCs to obtain information about
their environmental performance.
The fourth path, involves connecting the issue of corporate performance with
economic policy. The signals and incentives that companies are receiving from
governments often encourage them to externalize costs; transfer risk to
employees and suppliers; avoid taxes through regulatory loopholes, transfer
pricing and off-shoring; and seek out new frontiers around the world or along
supply chains where regulatory institutions and labour rights are weakest.
A fifth path involves forms of activism that vary to some extent from those that
characterize CSR, where considerable attention has been focused on
strengthening NGO-business relations or partnerships, and “stakeholder
dialogues”. The difference relates not only to the types of issues and demands,
but also to patterns of social mobilization. Modes of organizing and mobilizing
associated with “transnational” or “multi-scalar” activism, which involve linking
organizations and networks at local, national, regional and international levels,
are particularly important, and have played a key role in efforts to prosecute
corporate wrong-doing, as well as in campaigns where activists “name and
shame” companies. Multi-scalar approaches are also a prominent feature of the
strategies of Global Union Federations, several of which have signed Framework
Agreements with TNCs, that extend union/company relations beyond the local
and national levels to the global level. Civil society organizations, operating at
different levels, must also focus on reconnecting with local and national
governments, to develop complementarities and synergies in regulatory capacity.
Last but not least, the process of change requires keeping the institutional and
policy agenda alive with ideas for reform or more fundamental restructuring of
development models. In this respect, it is important that civil society
organizations engage actively with the UN business and human rights agenda
that involves the work of the Secretary-General’s Special Representative on
Business and Human Rights, and the Norms on the Responsibilities of TNCs and
Other Business Enterprises with regard to Human Rights. Whilst declared a
“distraction” by the Special Representative, the standards and mechanisms
proposed in the Norms – i.e. monitoring, reporting and redress – have
considerable backing within civil society, and some aspects of the Norms are
even being tested by a group of global companies.
Other ideas should also be kept alive, such as that of expanding the remit of the
International Criminal Court to address corporate crimes; setting up new UN
activities including information systems on corporate accountability initiatives
and laws, as well as on business practices associated with maldevelopment; new
institutions such as a Special Rapporteur on TNCs, or a Corporate Accountability
Organization; the (re)chartering and down-sizing of corporations; a set of Civil
Society Rules for TNCs; or even revisiting the principle of limited liability.
In this hearing we are supposed to be focusing on the role of the UN in the field
of corporate accountability. But we also need to consider whether civil society is
Whose Partnership for whose Development? 23

up to the challenge. Is there the capacity among NGOs and trade unions to
operationalize or activate complaints procedures, such as those that exist at least
on paper in the OECD Guidelines on Multinational Corporations? Will NGOs test
the new Global Compact complaints procedure? Serious doubts indeed exist
about their capacity to do so, but perhaps more significant is a bigger question:
Can civil society organizations, and NGOs in particular, forge the types of
alliances necessary to really exert pressure for change? Despite advances in
networking and transnational activism, civil society is often fragmented, with too
many internal divisions – between large and small, between North and South,
between NGOs and trade unions. In contrast to the labour movement, NGOs and
their networks are often distanced from parliamentarians, political parties and
mainstream democratic politics. Civil society, then, as much as the UN and
national governments, also needs to face up to key challenges if progress on the
corporate accountability front is to be made.
Regarding the United Nations, from my perspective as a social science
researcher, a central issue relates to the need for the UN to recoup its capacity
for so-called “critical thinking”. This involves questioning dominant policy
approaches and patterns of development, exposing power relations and injustice,
identifying the winners and losers of development policies and processes, and
proposing alternatives.
A large project on the history of ideas in the United Nations, the UN Intellectual
History Project, has recently documented numerous instances where individuals
and agencies associated with the UN have exercised bold intellectual leadership,
questioned conventional wisdom, and promoted ideas and policies associated
with alternative visions of development and harder regulation of powerful
interests. Notable examples include UNCTAD’s questioning of North-South
relations in the 1960s, the ILO’s focus on “basic needs” in the 1970s; UNICEF’s
critique of structural adjustment in the 1980s; the rights-based perspectives of
the Human Development Report, or of the High Commissioner for Human Rights’
in the late 1990s; and more recently, the World Health Organization taking on
the tobacco companies.
The Global Compact and much of the UN today, largely ignores critical thinking.
Instead there is a tendency to focus narrowly on learning about best practices.
i.e. trying to identify the positive things that big business does, and
disseminating this information in the hope that such practices will be replicated
elsewhere. This, of course, is an essential activity for international development
organizations, but it should not be at the cost of other types of analysis and
learning, which are needed to understand the other half of the story – if not the
main story – that we have heard about during this hearing. There is a danger,
then, that best practice learning is marginalizing, if not stifling, critical thinking.
The Global Compact states it is a learning forum and international development
agencies increasingly refer to themselves as “knowledge agencies”. If they are
really to fulfil this role, then the nature of learning, and the choice of academic
disciplines, institutions and experts engaged in learning networks, need to
change.

Peter Utting is Deputy Director of the United Nations Research Institute for Social
Development (UNRISD)

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