The role of the private sector is critical to the future of the Heart of Borneo. Indeed, the revenues from the exploitation of Borneo’s natural resources have helped develop the region over the last few decades. But a change is needed for this development to be sustainable in the long term.
Role of business in the Heart of Borneo
Opportunities await
Central to the principles and objectives of the Heart of Borneo Initiative is the welfare of local communities and the continuing sustainable economic and social development of the region.
Despite reductions in poverty the states of Borneo remain some of the poorest in the region, with an estimated 23% of the population living below the poverty line in Sabah, Malaysia for example.
Clearly, the private sector will continue to play an important role in reducing poverty across Borneo.
However, as the forests continue to be lost, it is increasingly clear that the current growth path is not sustainable in the long term.
Not only does the destructive use of natural resources result in the loss of ecosystem services to the detriment of local, national, and international communities, but it focuses the economy on short term gains, potentially at the expense of long term sustainable growth opportunities.
This is why WWF launched the Heart of Borneo Green Business Network to engage with business and spread greater awareness and understanding of the Heart of Borneo Initiative.
Substantial contribution from the private sector
The percentage of the population living below the national poverty line in Indonesia and Malaysia dropped from around 40% in the 1970’s, to 17.8% in Indonesia and 5% in Malaysia, in 2006 and 2007, respectively.Despite reductions in poverty the states of Borneo remain some of the poorest in the region, with an estimated 23% of the population living below the poverty line in Sabah, Malaysia for example.
Clearly, the private sector will continue to play an important role in reducing poverty across Borneo.
Current path not sustainable
However, as the forests continue to be lost, it is increasingly clear that the current growth path is not sustainable in the long term. Not only does the destructive use of natural resources result in the loss of ecosystem services to the detriment of local, national, and international communities, but it focuses the economy on short term gains, potentially at the expense of long term sustainable growth opportunities.
Without a re-evaluation of the economic growth model in Borneo the prospects for sustained long term poverty reduction may be limited.
Engagement with companies in the Heart of Borneo
Increasing the support and buy-in of industry is critical to successfully meeting the objectives of the Declaration.This is why WWF launched the Heart of Borneo Green Business Network to engage with business and spread greater awareness and understanding of the Heart of Borneo Initiative.
[click for large version] The map illustrates the current extent of palm oil, mining, and forestry concessions inside and around the Heart of Borneo. Based on this estimate of current concession allocations the private sector could manage almost 40% of the land area within the Heart of Borneo providing an indication of the important role that the private sector will need to play in delivering on the Declaration.
Download the Green Business Network report
Is your business in the Heart of Borneo?
