Problem: Persistent low employment creates a variety of social problems such as an increase in crime, higher infant mortality, and general social unrest and poverty.

Solution: In areas where access to education is improved and where goverment creates a business climate favorable to economic growth employment rates tend to go up and poverty is reduced. The following article illustrates how Ireland set long-terms goals for economic development and invested heavily in her education system to increase literacy rates and and the number of workers with advanced education. As a result of these investments Ireland went from having one of the highest rates of unemployment in the EU to boasting one of the lowests. Ireland now enjoys having one of the highest average standards of living in the world today.

Lessons from Ireland on Economic Growth

For most of the past 300 years or so Ireland has had the dubious distinction of being a country more known for the hardships suffered by its inhabitants than for its beautiful countryside.   While people in other parts of the United Kingdom and in Europe enjoyed a relatively high standard of living Ireland lagged far behind.  Up until the early 1970’s the average income in Ireland was approximately one half of that of the rest of the UK. Over the next 35 years that status would change dramatically.

Today Ireland is rated one of the best countries in the world in which to live.  Ireland boasts the fourth highest gross domestic product per person and very low unemployment.    University tuition is free and there are a high percentage of skilled positions available.

How did Ireland accomplish such a dramatic turnaround?

Problem:  In communities where valuable resources are located conflicts frequently arise between those who stand to gain financially from the harvesting of those resources and environmentalists legitimately concerned about the sustainability of the ecosystem.  One good example of this is in Canada where large tracts of valuable timber are located in environmentally sensitive areas.

Solution:  In Canada a complex and somewhat uncontrolled process resulted in a partnership being formed between logging companies and environmentalists.  A key to the success of this process was that both opposing parties had nearly equal amounts of power to force their agenda. The process involved an escalation of the conflict until it was clear that one or both parties would lose if conflict escalated further.  A third party with the power to award victory to either side arose and brought the opposing parties together to find common ground.  The opposing parties were then forced to find a “win win” solution.  The emerging agreement allowed the logging companies to still harvest timber, albeit in a sustainable manner, and the environmentalists committed to assist with the marketing of those products.  The resulting partnership also involved support of retailers who sell the final product.    The reader may also note that these partnerships were achieved without the involvement of governmental agencies.

Problem:  Wealthy nations often make promises of aid to impoverished nations for publicity purposes and then lag on fulfilling these promises.

Solution:  Nations can lead by meeting and exceeding their commitments, which then puts pressure on other countries to meet their commitments.  Denmark and the Netherlands exceeded their commitments leading the way for a EU agreement to have all EU countries increase their poverty aid program.  This in turn puts pressure on other wealthy nations to increase their commitment.

The following article was reprinted from oneworld.net:

Landmark Deal to Increase Aid to Poor Countries; U.S. Urged to Join In

by Abid Aslam

WASHINGTON - Activists are seeking to use a European breakthrough this week to turn up the heat on some of the world's richest countries to come up with money they promised decades ago in the global fight against poverty.

Problem:  Ballooning national debt has a negative effect on the value of a nation’s currency, increases interest rates, and causes a larger proportion of tax revenue to be used to pay interest payments.

Solution:  When a nation commits to reducing debt it begins to take actions to make it happen.

The following was reprinted from the website maintained by the US White House during President Clinton’s presidency

President Clinton: The United States on Track to Pay Off the Debt by End of the Decade

December 28, 2000

Today, President Clinton will announce that The United States is on course to eliminate its public debt within the next decade. The Administration also announced that we are projected to pay down $237 billion in debt in 2001. Due in part to a strong economy and the President’s commitment to fiscal discipline, the federal fiscal condition has improved for an unprecedented nine consecutive years.

Mandatory Corporate Social Responsibility (CSR) insurance would make TNCs more responsible and compensate victims

            If a corporation enters a community to build a mine that will last 10 years and causes human rights and environmental damages, who will pay after the corporation leaves? Who will fund redress for victims? Governments or corporations are prime candidates for covering these liabilities. Germany provides a precedent for a government taking responsibility for the bad acts of its corporations. Germany placed money into a fund for individuals who were made slave labourers at Nazi corporations.[1] This was a post facto remedy that took decades of litigation and diplomatic negotiation. This is the fundamental challenge of actually getting compensation for victims of human rights abuses: time and political will.

            A more pro-active approach would take the preventative measure of requiring that projects have CSR insurance...