THE UNITED NATIONS, PRIVATE ENTERPRISE
AND SPACE

The United Nations recognizes that private enterprise can play a vital role in contributing to the beneficial development of nations. Secretary General, Kofi Annan, told corporate leaders at the World Economic Forum in 1998, "Thriving markets and human security go hand in hand; without one, we will not have the other".  The United Nations is working together with the business community in many developing countries to help communities in their social and economic development. This is important for the development of a local infrastructure that operates in a favourable regulatory climate, free from corruption and political bias. To this end, the UN sets technical standards and norms in such areas as trade laws and customs procedures. Good governance, political stability and the advancement of human rights are a key aim of UN actions in emerging economies.

The UN recognizes that the private sector can be a key player in assisting these countries to raise living standards and ensure sustainability through entering into partnership with local industry and enterprise. The UN Conference on Trade and Development (UNCTAD) is, for example, preparing a series of business investment guides to the 48 least-developed countries to make opportunities in these regions known and to boost capital flows. The United Nations feels that the private sector can play a key role in reducing world poverty. At the G8 Summit in 1998, the International Chamber of Commerce advised Heads of State that the UN and other intergovernmental organizations, 'require sufficient resources and more authority' to handle complex global problems. The global business community is cooperating with the UN on mutually beneficial projects.

Examples include insurance companies helping the UN Environment Programme in environmental awareness, information technology companies contributing to an automated customs system developed by the UNCTAD, and emergency aid to millions of people being delivered faster and fresher by the World Food Programme, thanks to new bagging and handling technologies from the private sector. The UN Development Programme is working with the banking community to extend credit to aid new business in developing countries and the UN Development Organization, acting as a broker between technology suppliers and developing countries, has created $1 billion worth of investment in clean technologies in more than 80 countries in the last four years.
Various private industry movers and shakers have raised money and/or donated billions of dollars for UN Programmes. These include Ted Turner, Chairman of Time Warner, who pledged $1billion over a ten-year period, British Airways collecting spare coins from international travellers ($18 million for children) and Rotary Clubs, supported by the business community, giving more than $400million to the World Health Organization's anti-polio campaign.

The presence of private industry representatives at UNISPACE III reflects the fact that the business community is playing a key role in the development of space technology and its applications. The simple fact is that the sort of money needed to develop space projects and expertise is not available to most governments. It is estimated that the commercialization of space has already generated $ 90 billion worth of revenues, a figure that is growing at an annual rate of 20 per cent.  The commercialization of space has led to a huge growth in the number of satellites being launched and innovative places to launch them such as converted missile launchers, aircraft launchers and mobile sea platforms. This market is estimated to generate more than $45 billion over the period 1998-2007.

In addition, the many benefits that space technology applications can bring means that private industry is already playing a crucial role in alleviating the consequences of poverty and disaster. The provision of communications, remote sensing of Earth from outer space, mapping and other services that help emerging economies can be realised through partnerships with the private sector. Developing countries have become significant purchasers of space-related products and services. The various segments of this market generate hundreds of million dollars each. For example, meteorological and remote sensing spacecraft generated between $580-$620 million dollars in 1997. Geographic Information Systems ( GIS), used for analysing data and providing information on the environment and disaster management planning, could reach a market value of $5 billion in sales by the year 2000. The market for Global Positioning Systems (GPS), used in agriculture, personal communications, engineering and other areas, has grown from $0.5 billion in 1993 to $2 billion in 1996 and is expected to rise to between $6 and $8 billion in the year 2000.

Due to the huge investment that the private sector can undertake, it is cheaper and better for governments to invest in data provided by the private sector. Knowledge transfer between the industrial and developing countries, as well as among developing countries, creates the expertise which leads to a trickle down of investment from the regional to the local business communities. This, in turn, contributes to sustainability and independence as well as promoting international cooperation. Long-term agreements between governments and commercial companies minimize the costs of such information and services for developing nations. These agreements also assist governments and space agencies in their long-term planning.

The large number of 'spin-off' products is mostly due to investment, research and development by the private sector. Microwave technology, the development of materials used in safety products such as bicycle helmets, and in the medical sector, have all been developed through investment by the private sector. Specific projects involving the private sector include an agreement between Telefonica del Peru and Intelsat to use an Intelsat satellite (603) to test the feasibility of using very small aperture terminals (VSATs) for wireless telephone services in the Peruvian mountains. On 23 April, 1998, Worldspace Corp announced it was planning to invest between $50 and $70 million over three years to establish five regional business offices in Africa. This should lead to a spread of local expertise and more local investment. Starting in 1999, Worldspace plans to offer radio services in Africa and the Middle East.

That the private sector is playing a major role in the development of space technology and making a major contribution to the economic development of many countries is something that the United Nations recognizes and is keen to encourage.