Global development plays a minor role in the corporate world in Austria. Domestic policymakers also struggle to connect development cooperation with the economy. This is one reason why development policy generally has little relevance in Austria. Yet economic development is the major driver of a country's overall development. Human rights, health, education, culture, and social participation—all of these goals rely heavily on economic development.
Get your numbers right
Global development is happening. As Hans Rosling explains in his book "Factfulness," people tend to see the world in a more negative light than it actually is. We think about the Russian war against Ukraine, the energy crisis, and climate change – and overlook the fact that the world is improving overall. Despite climate change, for example, the number of people falling victim to natural disasters is decreasing significantly from decade to decade. A hundred years ago, around 500.000 people died worldwide every year from hurricanes and floods; in 2020, the number was just 14.000 – while the world population quadrupled from around 2 billion to 8 billion during this period. Overall, global poverty has halved in the past two decades.
Sustainable global development made in Austria
The economic development of many countries is still in its early stages. Furthermore, economic development cannot be brought into a country from outside, but it can be promoted and accelerated through development cooperation. As an open, highly export-oriented economy, Austria should make it a priority to seek cooperation with interested countries and to contribute the problem-solving expertise inherent in our administration, research institutions, and, above all, our business community. The many successful companies, including numerous global market leaders, are an indicator of our country's know-how and thus also of what Austria can contribute to global, sustainable development.
Success stories from the local economy
These opportunities are already tangible from the few approaches to leveraging Austrian development cooperation on the power of the economy, namely through so-called economic partnerships. The Tyrolean hearing implant manufacturer MED-EL, for example, is strengthening the hearing health sector in 14 African and Asian countries with a multi-million euro investment and co-financing from Austrian development cooperation. The industrial companies RHI Magnesita and Mondi introduced dual vocational training for two apprenticeships at their Mexican sites – and are now repeating this experience in India, Côte d'Ivoire, and Morocco. The Styrian environmental technology company Komptech is implementing training in waste management in Ghana in close cooperation with its local business partner. Austrian Post, in turn, is preparing a project in Serbia to improve logistics training with local vocational training partners. And another ÖBAG subsidiary is arguably the industrial company with the longest relevant experience: OMV implemented high-impact projects in Pakistan and Libya more than 15 years ago.
Essential for global sustainable development
The list of examples could go on. What all of the projects mentioned have in common is that, with the support of development cooperation, companies create very tangible development benefits. This has a positive impact on their business because it serves market development, the training of skilled workers, or the improvement of supply chains. However, the key beneficiaries are the people in the countries where these projects are implemented, through the creation of jobs, training opportunities, business opportunities, or new structures. And finally, the general economic development that these projects result in is especially important because they encourage companies to invest in the respective country.
If more and more companies demonstrate a willingness to help shape the environment in which they operate in emerging markets, and if domestic development policy focuses more on leveraging the effectiveness of companies in creating prosperity and giving growth a broad impact, then development cooperation will lose its niche status and become a policy area anchored in the mainstream of society. In this setting, development cooperation will be able to transform global challenges into concrete opportunities – opportunities in three respects: for the people in developing countries, for our companies with regard to new markets, and also for Austria's role in the world.
Bernhard Weber is Co-founder and Managing Director of ICEP and editor of corporAID magazine. He holds a doctorate in business administration from the Vienna University of Economics and Business and is a graduate of the IESE Advanced Management Program.
