Shared benefits lead to win-win outcomes

 

WHILE globalisation has helped countries to develop, in some cases small developing countries give up too much in order to get foreign direct investment (FDI) needed for development.
 
This observation was made by ILO Specialist, Sustainable Enterprise Development and Job Creation, Kelvin Sergeant, who was participating in a recently held seminar entitled Multinational Enterprises (MNEs) and National Development: Promoting Employment and Enhancing Business Linkages in Barbados.
 
Speaking at the Accra Beach Hotel, the representative, while stating that the ILO’s position is that globalisation must be fair, noted that MNEs through their FDI and operations as well as through the global reach of their supply chains have a major role to play in host countries. He stressed however that everyone has responsibilities.
 
With the second day of the workshop focused on the role of hotel and tourism sector in promoting responsible and sustainable practices on the island, as the main foreign exchange earner attracting several foreign MNEs, Sergeant queried whether there are any instruments that describe how these MNEs should operate. He suggested that with more hotels on the horizon, there will be employment opportunities, but cautioned that there will also be risks.
 
As such he said key questions to be asked are: How can more and better jobs be generated in the sector; how can competitiveness, productivity and profitibilty in the sector be improved; how can decent work be promoted by the MNEs; and how can any negative impacts to the socio-development of the country be minimised or resolved and how positive contribution be encouraged.
 
“ Multinational enterprises are uniquely placed to contribute to long-term sustainability and a fairer globalisation with shared benefits for their home countries and for the countries where they invest or do business,” he said. “ Such win-win outcomes of inclusive growth and sustainable development are only possible with an appropriate legislative framework and a conducive policy environment.
 
He noted that the ILO MNE Declaration, which is the only instrument adopted to provide guidance for policy is based on standards. It sets out ways to maximise the positive contribution of MNEs to economic and social development and to resolve or minimise possible negative impacts. He assured ILO’s support to these dialogues which lead to joint action plans with concrete measures , as well as roles and responsibilities for multinational enterprises, employers, workers and governments of home and host countries.

Barbados Advocate

Mailing Address:
Advocate Publishers (2000) Inc
Fontabelle, St. Michael, Barbados

Phone: (246) 467-2000
Fax: (246) 434-2020 / (246) 434-1000