South American nations are rich in natural resources, while modern developed nations have under total threat the availability of them in their homeland.
CARING FOR NATURAL SUSTAINABILITY IN SOUTH AMERICA
If South American nations follow the traditional path to development used by Europe, China, USA, and other Asian countries, we will consume our resources long before becoming a developed nation. I don't have data, but clearly a part of the growth of the most sophisticated nations is due to buying cheap natural resources from South America during XX century up to now. Spain become a super power during two - three centuries due the supplies of gold and other materials from America on Colonial times ( 1500-1800). Portugal and other empires benefited from the same.
Since China is eating up their homeland resources, India on the same way, as Korea, Japan, Europe have already done, etc., then the pressure for supplies is going to be in South America, since it is mostly a stable continent, without wars, having democracy and free societies.
These demands for supplies represent an opportunity of business and jobs on present time. However, we should pay attention to receive investors also interested on sustainability, so our resources can last some more time.
Chile for instance, is totally dependent on oil and gas from other nations. Its own production is almost zero. Our electricity bills are the most expensive in Latina America, because we are using mainly fossil fuels to produce energy. We need investors focused in Renewable energies.
BARRICK GOLD CASE AND PASCUA LAMA PROJECT AS A BAD PRACTICE IN SUSTAINABILITY IN CHILE
Modern nations are returning from the very basic extraction of resources, and they pay a lot of attention to sustainable practices. But on many cases, they do not care when they come to South America to run an operation. Recently in 2013, Barrick Gold giant search for gold in the Pascua Lama project, has been put into halt by the Environmental agency in Chile, because they did not meet their own sustainability practices !!! They designed something to care for glaciers and water streams, but they didn't perform what they promised on their engineering program. It is a US$ 10.000 million investment being carried on both sides of the Andes, above 4.000 meters of altitude between Chile and Argentina. Why in the world these super leaders in business thought that they could do anything in South America? They never expected that we are rising our standards and that the Environmental Agency and communities have more power than before. But, the question it is still in place. Why top professionals and top businessmen and large investors, still think that upon leaving their home country, they have a free license to destroy everything? It is an ethical challenge. We need to widen our ethical vision to incorporate mankind and the planet as one entity to which everyone belongs.
So, investors coming to this part of the world, should put into practice the same standards and criteria for caring for the environment and communities used when they invest on their own nation. The planet is just the same. Humanity is just one. We are all linked together though a wonderful set of connections and what we do to the the planet on one corner of the world, will impact sooner or later the place where we live or the products or services we use or buy.
So, I think South America could benefit a lot from the wisdom acquired by many businessmen and professionals from present developed nations, that are treating wisely their home countries. We need such input, vision and heart put to work on Latin America. Of course, we need also that our leaders and law makers, may adapt old Latinoamerican regulations to a more sustainable development.
CARING FOR PEOPLE OR SOCIAL SUSTAINABILITY
Also, the new path to development is putting focus not only on the goods, services and assets provided by the market and modern societies. But also is caring for the people itself, as communities, families, disabled and vulnerable people. First Nations pledges, education, social services, etc, for the layman. When I studied Economics, all the cases were referred to large multinational companies. None, referred to the companies that provide 80% of the employment in Chile: Small Businesses. This must be the same in all the rest of Latin America. So, we need investors also interested on a Small Business because the social impact trough employment is much bigger than investing in Large Companies. If an investor cares for people, if he believes in social Justice, while obtaining a blue bottom line, then he should invest in Small and medium size Businesses in South America.
EUROPE, USA AND DEVELOPED NATIONS NEED SOUTH AMERICA
If we all cooperate to advance South America to be a sustainable garden in production, it would be a great benefit for mankind, as we own a giant reserve of natural resources, able to sustain future generations elsewhere. This is true, if the investors use sustainable practices when doing business here, then South America will sustain the life of your grand children in Europe, USA, India, Korea, Japan, etc. for generations to come. Otherwise, you will destroy on a short term the last reserve of resources available for you, as developed nations have little left on their homeland. China is destroying on a 30 year rush of steady "progress" that may last another 20 years at the most, their homeland resources that sustained their immense population during 3.000 years of frugal life. The big party may last 50 years, but then, What will the Chinese leaders do to sustain their people? What about India also massive need of resources?
Probably all the big nations will try to eat up South America, as they are actually doing presently. So, we need some sort of understanding in how all nations will care for South America, as a large reservoir for the entire mankind.
So, we need socially responsible investors (SRI) for the benefit of South American people, and for the benefit of the rest of the world. It is a must for the survival and progress of the very same modern nations of today.
Teofilo
businessinchile@gmail.com
www.socium.cl
Santiago, March 20, 2014
( Written when we celebrate the Autum Equinox in Chile and South America. Happy Spring Equinox to all other fellows in Northern Hemisphere. )
