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Monterrey, Mexico. September 1995.
The cyclical periods of crises that have dominated Latin America’s history have forced us to face up to several hard and inescapable truths. First, our natural resources, though rich, are finite; thus unplanned exploitation is irrational, not to say self-destructive. Second, a population does not automatically posses development rights, it earns them, and the creation of productive capacity necessarily requires significant investment. Third, we have painfully learned that capital should not only be attracted, but also generated at the local, domestic and regional levels. Finally, we now realize that the responsibility for development does not belong only to governments; instead, it necessarily involves a collective effort by economic, political and social forces, both public and private.
Editorial
Now is the time, as we are affected by another financial crisis, to refrain from applying the old stop-gag solutions. We must acknowledge that ours has been a history plagued with short-term policies that, in our efforts to provide immediate solutions, hindered the sort of realistic planning that would have fostered real development in the region. As responsible Latin American entrepreneurs and citizens, we must avoid risking, once again, our economic and social viability to solve a short-term crisis.
Within this panorama, the current crisis, of a type that seems so common in Latin America, constitutes a significant challenge. More importantly, it offers the opportunity to start on a new path. We acknowledge that affluence and scarcity are neither eternal nor all important. Underlying the struggle for development must be the sustainable use and conservation of human, natural, technical and financial resources. Though difficult, this is feasible given appropriate planning to assure a supply of these resources and their capacity to generate benefits over both the mid and long terms. The objective is sustainable development . The means are threefold: * productive investment - both in physical and human capital - to guarantee current and future economic growth, which fosters social equity; * proactive participation of the entrepreneurial community and society in general, which along with governments enables the generation of wealth while safeguarding our natural heritage; and * more efficient performance of both public and private institutions, so as to guarantee credibility, legitimacy and predictability in the systems of social organization of the region. It is the conjunction of these elements that provides the formula for sustainable development in Latin America.
Eugenio Clariond
BCSD-LA Incorporates in Costa Rica
The Business Council for Sustainable Development - Latin America legalized its existence as an association of Costa Rican nationality on March 17th. Held in San José, Costa Rica, the founding ceremony was hosted by Rafael Morice. Notary public Carlos M. Rodríguez Echandi was in charge of the legal aspects. This new association has 19 founding members from 13 countries, and 19 associate members representing 10 different nationalities.
During this event BCSD-LA's mission and objectives were ratified, and the following Board of Directors was appointed to preside over the Association for the next two years:
Eugenio Clariond Reyes - Chairman
Stephan Schmidheiny - Honorary President
Roberto de Andraca - Vice-chairman
Fernando Romero - Vice-chairman
Ernst A. Brugger - Treasurer
Rafael Morice - SecretaryThe BCSD-LA was defined as a partner organization of the World Business Council for Sustainable Development (WBCSD), with which it shares objectives and basic principles. Communication between these organisms will be the responsibility of a committee that includes Ernst A. Brugger, Serge de Klebnikoff, Sylvia Adriana Pinal and Björn Stigson.
During a speech delivered at the BCSD-LA Assembly meeting last March, Costa Rican president José María Figueres Olsen presented a project, supported by his government, to establish a Central American Alliance for Sustainable Development. In his speech President Figueres emphasized the need for this alliance to be compatible with the regional reality, while at the same time contributing to long-term development and the creation of opportunities for Central Americans.
The Costa Rican president also proposed his country as a pilot project for sustainable development, that would operate through strategic social investment and seek balance between economic growth and environmental harmony.
The Bolivian government, host of the next Summit of the Americas, has invited BCSD-LA to assist in preparing the agenda for this important meeting. The president of Bolivia, Gonzalo Sánchez de Lozada, appointed Fernando Romero, Bolivian member of the BCSD-LA, as Ambassador at large responsible for overseeing development of the agenda. During the Assembly meeting, BCSD-LA expressed support for Mr. Romero in these new responsiblities.
The Summit of the Americas will take place in Santa Cruz, Bolivia, in December 1996. The main subject on the agenda will be sustainable development in the American continent.
Members and collaborators of the BCSD-LA and representatives from the World Bank concur in their interest in sustainable development in Latin America. This became evident during the two seminars that have been held this year.
During the first seminar, held on February 7 in Miami, Florida, the two institutions explored viewpoints to determine the possibility of drafting a joint proposal for an economic, social, institutional and legal framework for sustainable development in Latin America. They concluded that the major obstacles to this kind of development are strongly associated with institutional constraints and weak property rights.
In addition, they acknowledged that the BCSD-LA and the World Bank share enough common parameters to work together.
At the second seminar, held on June 13 in Washington, D.C., discussion centered on the basis for a common policy for sustainable development in Latin America.
As a result of these opportunities for dialogue, the two organizations agreed to write a short paper and a book on sustainable development in Latin America before the Summit of the Americas 1996. Ernst A. Brugger of BCSD-LA and Paul Holden.
The successful conclusion of the Seminar on Education and Training for Sustainable Development, organized by this Task Force, under the leadership of Eugenio Clariond, was an important first phase of activity.
The event brought together representatives from a variety of educational institutions working on programs that promote the practices and values of sustainability. Among those represented were the Instituto de Estudios e Investigaciones Ambientales (Argentina), the Management Institute for Environment and Business (U.S.), the Escuela Agrícola de la Región Tropical Húmeda (Costa Rica), the Instituto Centroamericano de Administración de Empresas (Costa Rica) and the Instituto Tecnológico y de Estudios Superiores de Monterrey (Mexico).
The event took place on February 9 and 10, at facilities of the Instituto Tecnológico y de Estudios Superiores de Monterrey.
Comes to a Successful CloseThe First Workshop of the Business Leadership for Sustainable Development Program, organized by the Instituto Centroamericano de Administración de Empresas (INCAE - Central American Institute of Business Administration), was a significant step towards the goal of supporting and encouraging young Latin American business leaders to work for sustainable development in their companies and countries.
The success of this event, held in San José, Costa Rica on March 16, 17 and 18, was due in part to the contributions of Roberto Artavia, René Castro, Francisco de Paula Gutiérrez, Walter Kissling, Charles Nicholson, Jean Pierre Ratton and Stephan Schmidheiny. Based on the global vision of sustainable development that came out of this first encounter, a Second Workshop is being organized for September 21, 22 and 23. This time the focus will be on the business aspects of sustainable development. The issues to be discussed address the relationship between trade and the environment, the implications of sustainable development for management, and environmental audits. Francisco de Paula Gutiérrez and Terry Nelidov will be the coordinators of this workshop.
The Colombian Business Council for Sustainable Development (CECODES) held an international seminar on sustainable development in the Latin American economy (El Desarrollo Sostenible en la Economía de América Latina) last March.
For this event, considered by our Colombian partners as one of their most important activities, CECODES joined efforts with Corporación Latinoamericana de Economía Internacional (CLADEI - Latin Amertican Corporation of International Economy) and invited well known leaders in the field as speakers: Ernst A. Brugger of Fundación para el Desarrollo Sostenible (Foundation for Sustainable Development -Switzerland); Enrique García of Corporación Andina de Fomento (Andean Corporation for Economic Development - Bolivia); Ken McCready of TransAlta Utilities (Canada); Theodore Panayotou of the Harvard Institute of International Development (USA); Marianne Schaper of the Economic Commission for Latin America; and Andrew Steer of the World Bank's Environmental Program.
The event had several basic purposes. One was extension of the sustainable development model. Others included establishing CECODES as a clearing house in Colombia, and sustainable development as the permanent starting point for productivity analysis in the Latin American private sector.
The team in charge of the seminar, made up of Charles Bevan, Jaime Ospina Sardi and their collaborators, was responsible for the success of this event.
The Task Force on Environmental Policy, led by Roberto de Andraca and coordinated by Ricardo Katz, produced the document entitled "Environmental Policies in Latin America", which defines the elements for consideration in a process of environmental management.
Such elements would include: * legislation supporting direct controls over pollution, the assignment of responsibilities and the use of economic instruments; * an institutional character eliminating the uncertainty associated with governmental discretionary powers and the lack of definition of property rights; * a conceptual framework that would remove any possibility of conflict resulting from differences in the interpretation of the terms in use, for example "property", "economic freedom" and "environmental protection"; * such instruments for environmental regulation as voluntary compliance, direct controls, government investment, and market mechanisms; * supervision, follow-up and assessment of procedures, instruments, objectives and environmental policy. Publication available in English and Spanish. For more information, contact the BCSD-LA Secretariat.
The results of the first Seminar on Education and Training for Sustainable Development were published last March by the Task Force on Education and Training in "Education and Training for Sustainable Development".
This report includes a critical overview of education in Latin America, a compilation of the talks given during the seminar, a set of guidelines developed from participants' contributions, and specific proposals for the Task Force on Education and Training's second phase of activity. Publication available in English and Spanish. For more information, contact the BCSD-LA Secretariat.
Motivated by the critical state of the environment in El Salvador, the Business Council for Sustainable Development- El Salvador (CEDES), along with the Fundación Salvadoreña para el Desarrollo económico y social (FUSADES - Foundation for the Economic and Social development of El Salvador), created the Comisión de Desarrollo Sostenible (CODES - Sustainable Development Commission). The main objective of this joint effort is to produce a proposal for an action plan for the sustainable development in the country. Plans call for the initial phase to start by the first trimester of 1996 and continue over a period of two years.
Harvard University's Dr. Theodore Panayotou has been invited to become the principal advisor for this project, headed by Francisco R. R. de Sola, Miguel Araujo and a team of collaborators.
As part of the Conference Cycle on Sustainable Development program, during the month of August the Business Council for Sustainable Development - Argentina (CEADS) held the seminars Mercosur and Harmonization of Environmental Requirements, led by Pedro Tarak and Marcelo J. Cousillas of Fundación Ambiente y Recursos Naturales (FARN - Environment and Natural Resources Foundation), and Mining and the Environment, also with assistance from FARN and led by representatives from the Environmental Law Institute and the Peruvian Association of Environmental Law.
The Business Council for Sustainable Development - Gulf of Mexico (BCSD-GOM) organized the conference Corporate Environmental Accounting, to offer perspectives on strategic and tactical uses of environmental accounting and review the environmental costs in several industries. The event, held last May, was also sponsored by the Institute for Corporate Environmental Management, the University of Houston, the World Resouces Institute and the Global Tomorrow Coalition.
Among the speakers were BCSD-GOM members Tom Knudson of Conoco; John Mincy of Ciba-Geigy; and Edward Muñoz of Celanese Mexicana. The audience was composed of business and industry people from the United States, Canada, Mexico and Europe.
The Forum for Promoting Entrepreneurship was held in Tampico, Mexico, organized by the Asociación de Industriales del Sur de Tamaulipas (AISTAC - Association of Southern Tamaulipas Industrialists), the Confederación Patronal de la República Mexicana (COPARMEX - Mexican Employers Confederation) and the BCSD-GOM, Mexico Chapter, which is presided over by Eduardo Prieto. Sixteen AISTAC member companies attended this Forum and presented opportunity areas for the creation of jobs and an innovative production chain which contributes to real sustainable development for the region. Five projects came out of this forum, two of which are environment-related.
BCSD-LA Newsletter, September 1995 Communications Advisory Committee: Lloyd Timberlake, Susan Fortenbaugh, Andrew Mangan
Publisher: Sylvia Adriana Pinal
Editorial assistance: Azucena Garza, Liliana Grosso
Graphic Design: Evelyn Escamilla
A publication of the Secretariat of the Business Council for Sustainable Development - Latin America. All signed articles published here are the responsibility of their authors.
All rights reserved. This information may not be reproduced or transmitted in any form or by any means, electronic or mechanical, without the prior written consent of BCSD-LA.
