The lecture
Poverty alleviation constitutes a multi-faceted problem. It is on the one hand extremely local and leads to enormous deprivation for at least half of the world’s population. But on the other hand, through the operation of global markets – in particular of resources – and the functioning of value chains, it is an extremely international problem. 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 maximisation 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
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Background
chains of multinational corporations can have positive, but also negative repercussions. The new development paradigm therefore is 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 organisation is proof of this approach: it is aiming at a continuous improvement in its strategy towards labelling products – increasingly in a variety of partnerships with NGOs, corporations and governments.