United NationsDepartment of Economic and Social Affairs Sustainable Development


Statement by the Norwegian Delegation
4. May 2006
Industrialization and Poverty
We need economic growth and profitable production in developing countries to reduce
poverty. However, in order to assess the relationship between economic growth and poverty
reduction, the quality of the growth and equity issues also matter. Let me draw your attention
to the World Development Report of 2006 where this issue is discussed.
Let me also echo the remarks made by the Netherlands on the important issue of women,
strengthening women?s entrepreneurship, access to credit, micro finance and tenure. We have
to turn ?dead? capital into working capital to spur development by formalization of assets.
Inadequate framework conditions are perhaps the greatest barrier to sustainable economic
development, and cause foreign capital to flow to other, more predictable markets. Frequent
characteristics are inadequate and insecure legal guidelines, an undue degree of bureaucracy
that hinders private initiative, corruption and inadequate financial policies. In many countries,
potential investors fear that goods and services will not reach the market in time and poor
physical infrastructure is still a great problem.
In fact, the lack of reliable and stable electrical power is one of the most important barriers to
investment. More than 40% of companies in the Norwegian cooperation countries surveyed
report that a lack of reliable and affordable electricity is a barrier for further expansion of their
business. Countries need to surmount this kind of barriers to successful commercial and
industrial activity.
Finally, we need to focus on the issue of corporate social responsibility ? CSR. There is a
wide range of voluntary codes of conduct for sustainable development including the UN
Global Compact and the Global Reporting Initiative and the OECD Guidelines for
Multinational Enterprises. They provide a global framework for responsible business conduct.
Norway believes that the CSD 14/15 offer a good opportunity to boost corporate social