Max Havelaar Lecture 2007 - Poverty and Business
Poverty alleviation constitutes a multi-faceted problem. It is on the one hand extremely local and leads to enormous deprivation of at least half of the world’s population. But on the other hand, it is an extremely international problem as well through the operation of global markets – in particular of resources – and the functioning of value chains. It has increasingly become acknowledged that the role of corporations and the private sector is vital for sustainable solutions to poverty. Entrepreneurial solutions are often considered preferable over the traditional approach of development aid and subsidies. Micro-credits and fair trade labels are typical examples of this new development paradigm. At the same time, however, it is clear that the involvement of private (international) corporations is far from undisputed. The claim that the profit maximization strategies of private corporations can ‘solve’ poverty requires substantial modifications. It is obvious that some strategies are more effective than other strategies. The integration of developing countries in the international supply chains of multinational corporations, therefore, can have positive, but also negative repercussions. The new development paradigm is therefore not yet established, let alone undisputed.
The Max Havelaar lecture stimulates the thinking on these issues in a balanced manner, without making use of the usual simplifications either in support or against the involvement of firms in development. The Max Havelaar organization is proof of this approach: it is aiming at a continuous improvement in its strategy towards labeling products – increasingly in a variety of partnerships with NGOs, corporations and governments. Max Havelaar is the world’s first fair trade labeling organization. Since 1988, the Max Havelaar label has been used to communicate to consumers, efforts to improve the working conditions of farmers and traders in coffee, thee, fruit, cocoa, wine, cotton. Max Havelaar aims at addressing poverty through entrepreneurial strategies. In 2006 Max Havelaar labels were used in around twenty countries, while the organization co-founded the international Fairtrade Labelling Organization (FLO). <object style="width: 556px; height: 407px;" width="320" height="240" data="http://static.issuu.com/webembed/viewers/style1/v1/IssuuViewer.swf?mode=embed&layout=http%3A%2F%2Fskin.issuu.com%2Fv%2Flighticons%2Flayout.xml&showFlipBtn=true&documentId=081029122803-880b3205e25e4bdba8f89a09d2986e57&docName=max_havelaar_lecture_2007&username=wmijnhardt&loadingInfoText=Max%20Havelaar%20Lecture%202007&et=1261409289396&er=59" type="application/x-shockwave-flash"><param name="src" value="http://static.issuu.com/webembed/viewers/style1/v1/IssuuViewer.swf?mode=embed&layout=http%3A%2F%2Fskin.issuu.com%2Fv%2Flighticons%2Flayout.xml&showFlipBtn=true&documentId=081029122803-880b3205e25e4bdba8f89a09d2986e57&docName=max_havelaar_lecture_2007&username=wmijnhardt&loadingInfoText=Max%20Havelaar%20Lecture%202007&et=1261409289396&er=59" /></object>
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