Food Crisis Can Undermine Business Environment, Says Head Of Global Commerce Lobby

The challenge before world leaders as they gather for the G20 Summit under India's presidency will be to address issues relating to food security and access to finance, according to the International Chamber of Commerce.

"Lack of access to food immediately leads to social and political instability. So, it is in the interests of governments and businesses to ensure that people are adequately fed," John Denton, secretary general of the ICC, told BQ Prime in an exclusive interview. He was in New Delhi to attend the three-day B20 Summit from Aug. 25 to 27.

"Civil unrest, social disorder, and political disquiet can otherwise undermine the business environment," he said.

The ICC is the largest global business organisation, representing over 45 million businesses across 170 countries.

India has become a much more attractive place for investment for global companies over the last decade, said Denton, who is also a founding member of the Business 20 forum that represents the G20 business community.

"But bearing in mind the continued business appetite, it is important that the government does not sit on its laurels but presses the right levers," he said.

Calling for measures that would make it easier for small businesses to operate, Denton said small and medium enterprises are the critical driving force of the Indian economy. Economic development will be enhanced even more when small businesses trade across borders and trade is increasingly digital, but the big issue is a lack of access to finance."

"We are working with several Indian players to support that," he said.

According to Denton, the trade finance gap—the difference between the amount of money on hand and what businesses actually need—is roughly $1.7 trillion globally. "We need to work to fill this gap, but most of them are policy areas. So, this is also a discussion we had with the Indian G20 Sherpa at the beginning of the year, and I am pleased that there is an increasing recognition that this work needs to happen at the G20 level."

In terms of climate change, Denton said the key to limiting global warming would be to mobilise the private sector.

"The other big issue is not the rhetoric around climate change, but how do you allow more private sector investment to support the transition? We must ensure that the private sector is involved as part of the solution rather than being yelled at," Denton said.

Watch the full interview here: