Much in Common - Costa Rica, Brazil and USA
Rogelio Douglas - November
2009
I just spent a week in Costa Rica on business and found a very interesting parallel between a small, medium and large economy in the Americas. While Costa Rica, Brazil and the USA share common democratic goals, private enterprise, open markets, and a determination to play a leading role in a global economy, they also share the negative effects from having a substantial portion of its citizens left behind. It would appear that neither country is really developing to its fullest potential when every year a larger percentage of their GDP is committed to fighting poverty and associated crimes.
The production, trafficking and consumption of illegal drugs and their related crimes have exploded to a crisis level to where it’s obvious that
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governments alone cannot solve a problem of this magnitude. Recent history has shown we cannot build sufficient prisons fast enough, hire and arm enough law enforcement, and definitely cannot afford the expense of long term prison sentences at current growth rate. It’s estimated the US annual expense is around $60 billion with 25% of the world’s prisoners.
From a business and economic point of view this direction produces a significant lost of productive workforce as well as potential consumers of goods and services. Sociologically our quality of life is gradually diminished, not been able fully enjoy our community, family and the fruits of our own labor.
Just how the business community has accepted the negative effects of global
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warming and our collective responsibility to address that issue, maybe it’s time to accept as fact our personal responsibility to build communities and nations which assure opportunities for the less fortunate as well; the alternative is a breeding ground for very costly disruptive activities and very expensive government response.
Today a successful corporation can justify a 200% annual bonus increase for their team leaders while only a meager 5% cost of living increase for the lower level team players. The rational is difficult to comprehend particularly when in the long run corporations depend on communities developing productive citizens, a stable workforce and attractive consumer markets.
While there have always been small
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groups of hard core criminals, it’s natural to believe that most started by searching for ways to earn a descent living while making a meaningful contribution. Corporations would be better off by visualizing good business in strengthening the communities they are based in, rather than shifting to communities where the “environment is more conducive”, when in reality attractive environments were nurtured over the years by the long term commitment from their local citizenry.
As the global economy regains its footing among the biggest challenges will be the increased investments in the wellbeing of the poorer communities -- as witness by the scale of violent incidents in Escazú and San Jose, Rio de Janeiro and along the Southern
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US border. Corporations are in the best position to play a leading role supporting educational systems of much better quality, accountability and accessibility to all, complemented by the consistent creation of career opportunities for a diverse workforce.
So far this appears to be the best known alternative to just about any illegal activity; it’s a win-win scenario for all. Vibrant communities produce competent workforce, attractive markets, and the environment for successful corporations.
In a more practical view there should be a strategic thinker in every corporation frequently asking what can we do so an additional 1% of the poor can afford our products, allowing the
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company to hire 10% more workers at a good living wage, resulting in a higher degree of corporate success and much smaller governments.
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Source:
http://www.gbdusa.net
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