American security and prosperity are increasingly, and inextricably, linked to developing countries, a new Center for Strategic & International Studies report says. A large and growing network of trade, development, and investment partnership is poised to deepen and increase US engagement with those countries, it observes.
The report, "Our Shared Opportunity: A Vision for Global Prosperity," says this engagement potentially could improve American lives while reducing poverty in developing countries. It urges the US government and the private sector to do more, within current budgets, to accelerate this tremendous opportunity.
Like the federal government, US companies operating overseas have discovered that building lasting relationships with local populations must involve more than simply throwing a lot of money at them.
The oil and gas industry, since it is global, is very much a part of this. Chevron Corp. cosponsors CSIS's Project on US Leadership in Development, which released the report at CSIS on Mar. 4. The company has learned a lot in more than 50 years of operating worldwide.
"We understand that we can't do these things alone," explained Rhonda I. Zygocki, its executive vice president of policy and planning. "When we work and collaborate together, we can accomplish more. We all play different roles, but each role is necessary. We also can't launch a project, hand it off one year later, and expect it to last."
Chevron has been involved in the fight against AIDS for 25 years in Africa, but the public sector framework has made its work more effective, she said.
"The partnerships we created in Angola and Nigeria showed we could build partnerships that make a difference," Zygocki said. Its efforts have extended to agriculture and microcredit banks in some countries, she added.
Operations safer
As it tries to create partnerships in the Niger Delta, Chevron has moved from collaborating on long-term goals at the start to celebrating long-term accomplishments 10 years later. It supports economic stabilization there because it wants its operations to be safe, Zygocki said.
It also tries to rely on local suppliers. "If we're going to serve the world's future energy needs, they need to be qualified," said Zygocki. "As they grow and meet international standards, they develop their own export capacities. The multiplier effects are phenomenal."
Opportunities aren't limited to the majors. "We've evolved from check-writing and random acts of kindness to strategically thinking about our corporate footprint," said Paula Luff, Hess Corp.'s vice-president of corporate social responsibility.
"We see a strategic advantage in being able to show that Hess is a good company to work with, and a host country is better off because we're there," she noted.
