September 26th, 2000 -  9.00 a.m. Centro Cultural de Bel�m - Sala Siaca Panel Humanitarian Culture in a Globalised World Paul Grossrieder   General Director of CICR, Switzerland

Globalization is a highly complex subject, and I am not qualified to analyse all of its aspects. Furthermore, globalization is not uniform; it evolves at different rates in different contexts. Nevertheless, the ICRC sees globalization as a new factor in its environment, one that it cannot ignore and one that it must consider when devising its strategy.

With globalization of the economy, social responsibility has become a basic factor for the private sector; not just for the companies themselves, but also for States and NGOs. Civil society is starting to call commercial organizations to account for their actions. For their part, many multinationals have entered into dialogue with NGOs and governments on both environmental and social issues.

Strangely, there has been no regular contact between representatives of the private sector and those humanitarian organizations, such as the ICRC, which are engaged in helping the victims of armed conflict. Contact with the commercial world only occurs in connection with fund-raising or procurement. Discussions with the ICRC on matters of principle are only just getting under way, yet today the private sector has a clear influence in times of war:
x The end of the Cold War meant that most armed organizations lost the financial support of the superpowers and had to find other sources of revenue to finance their military activities. They have therefore diversified into the utilization of natural resources and control of the main routes and commercial activities in the territory where they hold sway.
x Given this background, multinationals that extract and sell natural resources have to reach agreements with armed organizations if they are to carry on their business in these areas and maintain their own safety. Whether they like it or not, such firms enter into relationships with a range of local partners: politicians, officials, armed forces, rebels, and so forth.
x Mergers and takeovers are producing private groups with a great deal of power. At the same time, privatization and restructuring have weakened States, especially those where most armed conflict takes place -- those with low revenues. The largest of the multinationals have annual turnovers well in excess of the combined GNPs of the sub-Saharan countries currently involved in conflict.
x What the ICRC and other humanitarian organizations are seeing in the field is that populations in war zones are suffering the direct effects of the weakness of the State, and of the breakdown in basic public services. When this happens, governments are inclined to privatize everything -- including national security -- which means calling in mercenaries or private security companies.
x Furthermore, capital flows into poor countries have increased dramatically, from 34 billion dollars in 1990 to 300 billion in 1997. Over the same period, politically-based development aid has been falling continuously, dropping from 64 billion dollars in 1990 to 52 billion in 1997.

Given this situation -- caused mainly by globalization of the economy -- the question is not whether we should intensify our dialogue with the private sector, but rather how, in terms of both form and content, the ultimate aim being to meet today's humanitarian challenges.

I should like to raise a number of issues and outline a number of the subjects the ICRC is currently thinking about in this field.

Ever since the ICRC was set up, in 1863, it has dealt mainly with States. Since the decolonization era, however, it has been establishing more structured relations with non-State entities, such as national liberation movements and guerrilla forces. Today we are witnessing a new phase, that of dialogue with companies operating in war zones.

To identify the kind of relationship the ICRC could foster with multinationals operating in areas of armed conflict, we need to look more closely at the nature of the ICRC. The ICRC is an impartial, neutral and independent organization, whose task is to protect the life and dignity of victims of war and internal violence, and to render them assistance. As both the promoter and the guardian of international humanitarian law, the ICRC ensures that the parties to a conflict respect this law. In the event of violations, it communicates its criticisms and concerns directly to the authorities responsible. If all other means fail, the ICRC may call on all the States party to the Geneva Conventions to see that the rules are respected.

In responding to the effects of globalization, the ICRC intends to work on the basis of these practices, transferring and applying them to private sector organizations involved in situations of armed conflict. To achieve this, the ICRC plans to enter into dialogue with certain multinationals, on the principle of "constructive engagement", with a view to improving the protection of populations suffering as a result of conflict. This contrasts somewhat with the policy of certain NGOs, who choose to condemn the behaviour of multinationals in public, with the aim of pushing them into a change of attitude.

The ICRC intends by its approach to raise the awareness of commercial organizations and private security companies of the need to respect humanitarian principles when military personnel are deployed in conflict situations.

Generally, we are talking here about companies involved in oil extraction and mining, companies that cannot relocate their production facilities because they need direct access to the natural resources in which they trade. In setting the form and content of the dialogue, the ICRC intends to avoid moralizing, choosing instead to establish frank and open discussions with the main commercial organizations concerned. We aim to discuss such humanitarian issues as respect for international humanitarian law, access to victims of war and the impact of certain companies' activities as seen from a humanitarian standpoint. One idea may be to circulate a series of "humanitarian principles for commercial organizations". This philosophy is inspired directly by the approach the ICRC already takes in dealing with other parties involved in conflict.

In conclusion, I wish to emphasize that the establishment of relations with the private sector must in no way be allowed to weaken the commitment of the States party to the Geneva Conventions as concerns respecting international humanitarian law and ensuring that it is respected. This applies both to States involved in conflict themselves and to States that are home to companies operating in conflict zones.