But there have been no corresponding accountability mechanisms to address the exercise of such powers. Recognizing this fact, Secretary-General, Kofi Anan, in his speech at Davos, has called upon corporations to make a social compact by adopting the international human rights framework. But, clearly, the matter is too important to be left solely to the volition of the corporate actors. The trend of erosion of the rule of law, globally, needs to be arrested. Corruption in business transactions and economic affairs must be effectively addressed.
Corruption constitutes a serious drain on resources available for development.
Monies, sitting idly in Swiss banks, represent a lost opportunity for financing development. Moreover, the moral costs of corruption and abuse of power and authority contribute greatly to the erosion of governance and the rule of law. But it should be clearly recognized that a serious effort in fighting corruption requires concerted and complementary action in both the home country and the host country of the investor. Peacekeeping and humanitarian assistance have tended to dominate the UN agenda. However, peace and development are closely interrelated and interdependent.