Globalization in the 21st Century: An Economic Basis for Development

The overarching issue as the world enters the 21^st century is how to develop in a sustainable fashion. In this regard, there are two key challenges: providing energy for sustainable development; and establishing global governance structures that will support sustainable development.

With respect to the energy challenge, a first step is to ensure that energy is used more efficiently so that demand in developed countries can be reduced. Moreover, businesses should set greenhouse gas emission reduction targets. A further step needs to be the creation of a cap and trade system for greenhouse gas emissions. Businesses, non-governmental organisations (NGOs), and government must work in partnership to achieve these goals.

Governance structures must develop regulatory frameworks within which the market can operate as well as ensure that such regulations and laws are respected.

At the World Summit on Sustainable Development in South Africa in September, it is likely that a host of partnerships will be identified and promoted. Business will have much to contribute. For example, in Business Action for Sustainable Development, a joint initiative of the International Chamber of Commerce and the World Business Council for Sustainable Development, there are many initiatives linking business, NGOs and other players such as the Energy and Biodiversity Initiative, The Global Mining Initiative, the Marine Stewardship Council, and the Responsible Care programme of the chemicals industry. There is no shortage of world financial and technical resources to attack these problems, but in many areas there is a desperate shortage of community structures in the widest sense. Business must be prepared to play its part in partnership with others both in individual countries and internationally to address these issues.