UN Secretary General Ban Ki-moon today called on some of the world's biggest corporations to spend and invest in developing nations where the global economic downturn has caused the greatest damage, according to dpa. Ban also took an opposite stance to governments, particularly European ones, which prefer austerity measures and spending cuts in response to economic woes. "I will argue exactly the opposite: That we can't afford not to invest in the development world," Ban told an annual meeting in New York of more than 1,000 corporations from 97 countries that are part of the UN Global Compact. "We all know that's where the greatest need is, but that is also where some of the greatest dynamism is," he said, adding that global economic growth requires investment in developing nations. Ban said foreign direct investment becomes much more important at a time when governments' development funds to poor countries, known as official development assistance (ODA), are under pressure. Ban told the Global Compact meeting that he plans to carry the message of investment in developing nations to the G8 and G20 summits in Toronto this weekend. Washington has called for more spending in stimulus packages to sustain the economic recovery, a view not shared by some European capitals, including Berlin. Ban called for businesses and the private sector to move away from short-term profits and embrace long-term value creation, and to adopt an ethical culture in their business practices. The Global Compact demands that corporates that joint the UN programme respect laws protecting the environment, international conventions on human rights and labour laws that support collective bargaining and elimination of child labour. The Compact reviews annually how its members have adhered to these ethics and removes those that fail the test. More than 1,300 companies have been delisted in the past 10 years - the UN said regulations to join the compact have "teeth" even though membership is voluntary. Ban said in a letter to the G8 and G20 this week that they should pay more attention to help Africa's needs and potential. "In Canada I will stress that we must not settle for an economic recovery that simply takes us back to pre-crisis conditions," he said. "We need to build back better." He emphasized inclusive economic growth based on job creation and decent work. The letter called for green growth that would create prosperity through environment-friendly technologies and growth that promotes healthy populations through stronger health systems.
