Ethics, Human Values and Development: A Norwegian Perspective

President Lula da Silva, excellencies, ladies and gentlemen,

You have no idea how happy I am to be with you here today in this beautiful city of Belo Horizonte. It does indeed have a beautiful horizon, which I am sure will inspire the conference that has brought us together here today. I would like to express my gratitude to the governor of Minas Gerais, the Federation of Industries of the State of Minas Gerais and the IDB for arranging this event. I hope this conference will contribute to something I believe is necessary: a broader and more luminous horizon over national and international public policy, corporate governance, and social dialogue.

Introduction: Brazil

This is my third visit to Brazil and I am very happy to be back here. For all the hundreds of millions around the world who love soccer, there is no country like Brazil. I am one of those many, many people who are deeply impressed by the way Brazilians have always played this wonderful game. Few have been able to combine technical skill with rhythm and passion in the way Brazilian players do. There is magic in the names of Pele, Socrates, Junior and Ronaldo. During many a game at home in Norway, I have thought, “Why can’t our guys play a bit more like those Brazilians?” I’m afraid that remains a distant dream. However, there is hope since I know the Brazilians inspire many Norwegian players.

But recently, it’s not only soccer players and fans that are looking to Brazil for inspiration. People all over the world have noticed that something new is under way in this country. That finally, there is political commitment to making poverty and social injustice the core concerns of public policy. President Lula da Silva, who won the greatest number of votes of any democratically elected president anywhere in the world, has launched an ambitious programme to fight poverty, inequality and social exclusion. It is being followed with great interest all over the world. Maybe the time has come for change in Brazil. And if in Brazil, why not elsewhere? President Lula is facing a tremendous challenge. But if he and his government are able to combine technical skill with rhythm and passion in the field of economic and social policy in the same way as the Brazilian players do on the soccer field, he will indeed be a great source of inspiration far beyond Brazil’s borders. He gives us hope that the world is not governed only by economic concerns, but also by human values and ethics. He gives us hope that human values and ethics can become a source of political mobilisation and contribute to social change. It is therefore more than timely that this conference on ethics and development is taking place in Brazil.

Mr. President, it is a great honour to be here with you today.

Introduction: Ethics and Development

I am a theologian and an ordained minister in the Norwegian Lutheran Church. This often comes as a surprise to people. It is not usual for a clergyman to turn politician. I believe, however, that theology can provide a rich and powerful source for responsible policymaking. My background in theology has helped me consider policy options in the context of Christian values and ethics. I have come to believe that values and ethics are directly relevant to the art of responsible public policymaking.

Public policy is about making tough choices. But it is also about making value judgments. All policy making is based on value judgments, and these should be the object of public scrutiny and debate.

This was my view when I first became prime minister in Norway, six years ago, and established a Commission on Human Values. The idea behind the Commission was to invite the whole population to reflect with us on questions such as: What is a good life? What values do we want our society to be built on? How can we ensure that all actors in society participate in bringing about a future that is beneficial for all of us?

There are three sets of fundamental values that are particularly important to me and that should guide and inspire us in our efforts to promote development and combat poverty.

The first is respect for life and human dignity, which must underpin our efforts to protect and promote human rights.

The second is stewardship, which must underpin our efforts to safeguard the environment and ensure sound resource management.

The third is compassion and solidarity, which must underpin our efforts to promote justice, social and economic development, both nationally and internationally. We should remember the words of Martin Luther King:

“Injustice anywhere is a threat to justice everywhere.”

The conviction that there are common values on which we can build, inspired my initiative. Virtually all nations have signed up to the Human Rights Declaration, based on respect for human dignity. My initiative has inspired events that explain why I am here today. The Commission was a topic of discussion when I had the pleasure of meeting the president of the IDB, Enrique Iglesias, in Oslo in 1998. We also talked at length about the need to place ethics and human values further up on the policy agenda internationally, including in Latin America. Soon after that, the Ethics and Development Initiative was established in the IDB, with Norway’s support.

It is with great admiration for the IDB team and perhaps a little bit of pride that I have noted the results of this initiative to date. Some people warned that ethics and development was not a topic that would attract much interest. The number of people here today bears witness to the opposite. And I know that similar forums in other Latin American countries have attracted thousands of participants. For example, the one in Chile just over a month ago brought together more than 5000 people from all over Latin America, many of them young people. This bodes well for the future. Bernardo Kliksberg, the able and enthusiastic general co-ordinator of the initiative and co-organiser of this conference, has just told me that there are some 100,000 active users of the initiative’s website, most of them in Latin America. I have also been told that this massive constituency covers a broad cross-section of society: political actors, academics and students, activists, people connected with the church, business people, labour interests. Finally, and this is perhaps the most noteworthy, the initiative has already led to policy initiatives and changes in the IDB itself and in some Latin American countries. This is quite a return on the initial, very modest investment.

What is happening? Why has this initiative aroused such massive interest? It is often said that there is a thirst for ethics in the world today. The question is: why is there such a thirst? I would like to examine three important answers to this question.

Why are ethics in demand?

The first is that development trends reflect persistent injustices globally and locally.

Approximately 23 per cent of the world’s population still lives in extreme poverty on less than a dollar a day, 83 per cent of the world’s income goes to the richest 20 per cent of the world’s population, and during the 1990s the income distribution within countries became increasingly skewed. At the same time, the poor have a higher risk of becoming victims of crises, illness and violence. For example, 95 per cent of the people with HIV/AIDS live in developing countries. Only 10 per cent of the world’s total resources for medical and health research goes to alleviate 90 per cent of the global disease burden. There is little doubt that the poor, the majority of whom are women, have been among the main victims of the recent economic crises in Latin America and elsewhere, and that they make up the majority of victims of natural disasters. These facts are of course much more than “such is life” phenomena. They are grave injustices that must become core concerns of public policy, both nationally and internationally. They are challenges that must be overcome. And they can be overcome if there is sufficient political commitment and ability.

The second answer is that old solutions based on seemingly value-free science and models have failed to provide a durable solution to pressing problems. This is perhaps particularly felt in Latin America. It is now widely accepted that the neo-liberal experiment in Latin America was only a partial success. It failed in the most basic challenge to any government, namely to ensure better living conditions for all its citizens. Although Latin America has seen some economic growth over the last fifteen years, this has yet to result in better living conditions for the majority of its population. In spite of the fact that 70 per cent of countries of the region are middle-income countries, around one third of the population lives in poverty, and the poverty levels are not declining. There is thus a need to focus on values other than, and complementary to, economic growth. This is a challenge that both Brazil and the IDB have taken seriously.

The third answer is that we now acknowledge that sound and efficient national and international institutions and laws are not enough if we are to combat poverty and ensure sustainable development. We cannot regulate everything. Nor do we want to. Both individuals and economic actors are responsible for their own behaviour and for their relationship to the community. Freedom entails responsibility. The traditional approach, which emphasises laws and regulations, must be supplemented with voluntary action and a sharpened ethical consciousness, in addition to new forms of co-operation and partnerships between the government, the private sector and civil society.

How then can we mobilise the various actors to face the new challenges? In my view a conference like this one can be very instrumental, as long as other types of action follow it.

Mobilising the various actors

During these two days, you will be discussing the ethical responsibility of governments, civil society and businesses.

Firstly, governments have a crucial role to play in addressing injustice and exclusion. Poverty can only be addressed globally through change in international structures of debt, trade and investment, through providing development assistance and through reforms in national policies. All measures are necessary simultaneously. The rich countries have to deliver more and better. The developing countries have to improve their policies and governance. A particular challenge for Latin American countries is the gap between the rich and the poor in most countries. This has to be addressed. Poverty on this continent cannot be eradicated from the outside. Economic growth and the “trickle down-effect” will not be enough to lift this continent’s poor out of poverty. Policies matter. If we are to succeed in combating poverty and hunger we all have to do better – on both sides of this globe.

Furthermore, governments have to play their role as legislator and as promoter and defender of basic human rights. This goes both for political and civil rights, as well as economic and social rights. While voluntary measures are essential, we must remember that improvements in business practices in the areas of environmental management, human resource management and labour rights in most developed countries, including my own, originally came about through legislation. This is still the case in many places. In other words the role of government is crucial.

A third role for the government is to provide arenas for dialogue. In Norway, the government established a consultative forum in 1998 for discussing how Norwegian businesses should deal with human rights challenges abroad. This forum includes representatives from the private sector, civil society, trade unions, government and academics, and it later inspired the Global Compact. However, a fruitful dialogue requires trust between the parties and this can only be built when both government and businesses are committed to transparency. Moreover, dialogue must be followed by action. Confidence can only be created if people feel their voices are being heard and taken into account.

Fourthly, the government should be a role model in terms of good human resource management and sound environmental policies, and have a good record in fighting corruption and fraud, and in ethical investment. In particular it should set a good example in terms of being transparent. In the field of investment my government has commissioned a report on how ethical considerations can be introduced into the management of the Norwegian Petroleum Fund.

Finally, the government should take its broad social responsibility seriously, and include other actors in its efforts to promote sustainable and equitable development. The Zero Hunger programme for eradicating poverty in Brazil is a good example of how a government can include the private sector and other actors, such as indigenous peoples and other vulnerable groups, in the efforts to reach common goals. The private sector should eagerly grasp such opportunities to contribute. Other governments should follow the Brazilian government’s excellent example.

The idea that businesses have a responsibility beyond making a profit, providing employment and paying taxes was established by the international community at the United Nations Conference on Environment and Development in Rio de Janeiro in 1992. It was reaffirmed 10 years later at the Conference on Financing for Development in Monterrey, Mexico, and again in Johannesburg the same year. The concept of corporate social responsibility is gaining ground in all parts of the world. On UNCTAD’s list of the 100 largest economies in the world, there are 71 countries and 29 companies. The fundamental shift of power from government offices to corporate boardrooms will continue. This means that the importance and relevance of corporate social responsibility will continue to grow. Many companies exert great influence on society and on local and national authorities. This is particularly the case where state structures are weak. This influence must be accompanied by an equal degree of responsibility.

A series of initiatives have been taken around the world to encourage businesses to fulfil their roles as corporate citizens by caring for their employees, the community and the environment. Here in Brazil you have been at the forefront in promoting a socially responsible business community, with the establishment of the Novo Mercado, a stock exchange reserved exclusively for businesses that have high standards of corporate governance, and of local versions of Global Compact.

However, although the idea of corporate social responsibility is gaining ground, there is a very long way to go before it has the support of the majority of businesses in the world. The UN initiative Global Compact has 600 member companies. The debate about corporate social responsibility has focused primarily on large multinational corporations. It is, however, important that small and medium-sized enterprises are included. After all, these enterprises make up the majority of businesses in the world.

If corporate social responsibility is to have a lasting impact on sustainable development, we need to get more businesses to commit themselves. Engaging business in the pursuit of sustainable development is not only an issue for companies; it should also be the responsibility of governments, civil society and trade unions.

Civil society has an important role to play. There is little doubt that without the persistent criticism and pressure from civil society, the idea of corporate social responsibility would not be so widely accepted today. But it is also clear that the responsibility of civil society goes beyond being a critical voice. Civil society must also help to find solutions through dialogue that enhances confidence between parties, and promotes an agenda that addresses fundamental social challenges. We need a responsible civil society as much as responsible businesses.

One of the most important functions of civil society is to contribute to the creation of common values and confidence between peoples. In this regard, the church occupies a particularly strong position. No other institution has such an ability to unit people around a common set of values. In several Latin American countries, the Catholic Church is at the same time one of the most important voices for the poor and an institution that enjoys the confidence of people from all levels of society. The development debate should focus on the Christian values of love, respect and solidarity. We should learn from the example of the church and promote social inclusion rather than exclusion. We should seek dialogue with all actors in society and address injustice.

The new agenda

The Norwegian government welcomes the renewed focus on ethics, human values and the role of voluntary efforts by civil society and the private sector. However, as we jointly pursue this agenda, we should avoid two possible pitfalls.

First, we must never let the debate on ethics and social responsibility become a question of charity. Social responsibility is about respecting people’s right to live in dignity. It is about human rights, labour standards, and safeguarding the environment. As your special minister for food security and combating hunger, José Graziano, has said, the philanthropic, "do-gooder" model is inadequate because it always leads to social exclusion. We need to find ways to combat poverty that also promote social inclusion.

In this regard, few efforts are as interesting as the work to expand the economic right of property to the poor, an agenda spearheaded by the Peruvian economist Dr. Hernando de Soto. This is about the law inclusive, about making it work for the poor. This agenda needs much more attention.

Second, mobilising businesses and governments to improve the plight of the vulnerable is not in itself sufficient. We should never forget that there are values implicit in all our institutions, in the economic structures we choose to support and in globalisation as such. A better future not only depends on businesses, civil society and governments taking seriously their own social responsibility. It also depends on concerted efforts to make ethical values the core of our global institutions and patterns of interaction. Globalisation itself is not value-neutral. We need to recognise this.

I am convinced that we need to improve our capacity at the international level to undertake and maintain a meaningful global dialogue on the ethical dimension of policymaking. We need an arena that allows for the serious discussion of ideas, and that can serve other arenas for global negotiation and decision-making. There are two ongoing initiatives, very different from each other that I consider to be promising in this regard.

The first initiative is the one that brought us all here: The Ethics and Development initiative. It is particularly interesting because it proves that broad constituencies all over Latin America care deeply about ethics in relation to public policy. There are some important lessons to be learned here, which apply beyond this great continent. I hope this initiative can result in clear policy measures in crucial areas of poverty eradication.

The other initiative is the World Commission on the Social Dimension of Globalisation. This Commission is headed by the Presidents of Finland and Tanzania and includes Ms. Ruth Cardoso, the former First Lady of Brazil, Nobel Laureate Joseph Stiglitz and Dr Hernando de Soto, whom I mentioned earlier. It is seeking to address the question of how globalisation can become a more inclusive process.

The Commission has taken as its starting point the ILO's core conventions and principles on labour standards and social rights in a globalised economy. I hope that the Commission will succeed in putting forward some clear, realistic and persuasive ideas and recommendations on how globalisation can become a more just and inclusive process.

The ILO is in many ways in a unique position to host this important work, and to assist in the follow-up. It is the only UN agency that since its inception has been based on a tripartite structure: governments, the corporate sector and labour. This is a unique asset, which we should learn to utilise more effectively in international public policy. By strengthening the links between the ILO, the other UN agencies, and the multilateral development banks, we will find better ways of building a culture of consultation with a broad range of groups in the decision-making process.

If we now look at these two initiatives in parallel – the World Commission and Ethics in Development – it might be useful to arrange a focused dialogue between representatives from both to discuss ways in which they can gain from their respective perspectives and experience. The overarching aim should be to build momentum so that progress does not stop once the Commission's work is concluded, or once the IDB's ethics initiative runs out of donor funding.

It is important that initiatives on the social dimension do not live lives of their own, but that they relate to "real life" policy processes that are vital to our societies and citizens. Take for example the negotiations on a Free Trade Area of the Americas or the negotiations at the WTO, which will affect the lives of more than a billion people. It is important that the underlying values implicit in such processes are continuously debated and analysed. It is one of the great ethical challenges facing the governments of our time to provide a link between the concerns of the people on the one hand and global and regional processes on the other.

The poverty and injustice we see around the world is in sharp contrast to our political visions and the basic ethical values we are committed to. This calls for political action!

In domestic politics, each government must give priority to social justice – combating poverty and hunger, promoting development! Developing countries have to improve their policies and government!

In international politics, rich countries must;

• improve market access
• increase investments in development countries
• speed up debt reductions
• improve and increase development assistance.

My country, Norway, will actively contribute. We are committed to do more and better! We look forward to cooperate more closely with Brazil in this endeavour. Making alliances for progress is the road to practical results!

I hope that this conference in Belo Horizonte will make a tangible contribution to the creation of a more luminous horizon, a new and better dawn, for the poor, the excluded, the vulnerable here in Brazil, in Latin America and all over the world. I am confident that we can make important progress by infusing public policy and public debate with values and ethics. We must stop accepting the established credo that such "soft" considerations belong in the churches, not in parliaments or town halls or international institutions. We must all do our best to change this. Because, to quote a young Norwegian philosopher, Henrik Syse, the son of a former Prime Minister of Norway:

“There are other values than those traded on the Stock Exchange”

Ladies and gentlemen,

Thank you for inviting me to speak to you this morning. You have a great task ahead of you during these two days. Have confidence that you can make a difference! Dare to be visionary! Dare to share your thoughts and ideas honestly, whether they are about problems in your community, in your state or province, in your country, your continent, or the world at large.

I wish you a successful and productive conference. I will keep a close eye on how the Ethics and Development Initiative develops over the coming months and years.

Thank you for your attention.