Poverty in low- and middle-income countries continues to pose challenges to sustainable development. According to the World Bank, nearly three-quarters of people in extreme poverty live in Sub-Saharan Africa or in fragile, conflict-affected countries.[2] Globally, the slow progress on poverty reduction coupled with climate change is contributing to large-scale migration within and out of developing countries, leading to increasing vulnerability to human rights abuses, including modern slavery. Marginalisation and discrimination further push people into risky situations, with workers viewing migration as a “once in a lifetime chance” for a better life.
Businesses in emerging markets and developing economies face significant challenges in contributing to economic growth. BHR measures have helped increase their access to new markets, buyers and investors, improved worker productivity, safety and wages. However, meeting the requirements of business and human rights standards and regulations also places significant demands on EMDE businesses, particularly micro, small and medium-sized enterprises (MSMEs).
Key conclusions:
- Investment in sustainable and inclusive economic development in emerging markets and developing economies is key to help address regional disparities and reduce forced migration driven by the lack of opportunities. In the EMDE context, collaborative action is needed to mobilise sustainable and scalable investments, leveraging development finance institutions’ (DFIs) expertise and local knowledge of risks for wider economic and climate-resilient development.
- Long-term supplier contracts provide stability for small producers in adapting to climate-related risks. Buyer businesses need to promote stability and engage in longer-term commercial arrangements with EMDE businesses, particularly SMEs in high-risk contexts.