One of <strong>the</strong> ma<strong>in</strong> outcomes of <strong>the</strong> Congress was <strong>the</strong> re-commitment <strong>to</strong> <strong>the</strong> S<strong>to</strong>ckholm Agendafor Action <strong>in</strong> <strong>the</strong> Yokohama Global Commitment 2001. 14 By virtue of this re-commitment,coupled with <strong>the</strong> attendance of representatives of 35 states that did not participate <strong>in</strong> <strong>the</strong>First World Congress, <strong>the</strong> number of states committed under <strong>the</strong> Agenda for Action now<strong>to</strong>tals 159. Through <strong>the</strong> Yokohama Congress, <strong>the</strong> follow-up <strong>to</strong> <strong>the</strong> first World Congresswas streng<strong>the</strong>ned, particularly with regard <strong>to</strong> <strong>the</strong> moni<strong>to</strong>r<strong>in</strong>g processes.In addition, a number of regional consultations <strong>to</strong>ok place <strong>in</strong> <strong>the</strong> months lead<strong>in</strong>g up<strong>to</strong> <strong>the</strong> Congress. This consultative process enabled governments, non-governmentalorganisations and <strong>in</strong>ter-governmental agencies <strong>to</strong> prepare for <strong>the</strong> Yokohama meet<strong>in</strong>g.Each regional consultation produced a <strong>document</strong> outl<strong>in</strong><strong>in</strong>g a common position that wouldguide future direction <strong>in</strong> <strong>the</strong>ir effort <strong>to</strong> elim<strong>in</strong>ate CSEC. All outcome <strong>document</strong>s weresubmitted <strong>to</strong> <strong>the</strong> Chair at <strong>the</strong> Congress and are annexed <strong>to</strong> <strong>the</strong> f<strong>in</strong>al outcomes documen<strong>to</strong>f <strong>the</strong> Congress titled “Yokohama Global Commitment”. The Yokohama Global Commitment2001 was negotiated between governments dur<strong>in</strong>g <strong>the</strong> week and adopted <strong>in</strong> consensus. Anumber of delegations chose <strong>to</strong> add explana<strong>to</strong>ry statements <strong>to</strong> it, and while <strong>the</strong>se additionsdevelop certa<strong>in</strong> viewpo<strong>in</strong>ts of countries and regions, <strong>the</strong>y are all endors<strong>in</strong>g <strong>the</strong> YokohamaGlobal Commitment.1.2 Def<strong>in</strong><strong>in</strong>g <strong>the</strong> Private Sec<strong>to</strong>rFor <strong>the</strong> purposes of this research, <strong>the</strong> private sec<strong>to</strong>r has been conf<strong>in</strong>ed <strong>to</strong> for-profit <strong>in</strong>dustries.Although many of <strong>the</strong> pr<strong>in</strong>ciples outl<strong>in</strong>ed here<strong>in</strong> are relevant for o<strong>the</strong>r members of <strong>the</strong>private sec<strong>to</strong>r, <strong>in</strong>clud<strong>in</strong>g civil society organisations and non-profit agencies (whose effortsare no doubt <strong>in</strong>strumental <strong>in</strong> protect<strong>in</strong>g children from commercial sexual exploitation),<strong>the</strong> motivations for participation differ greatly when profit <strong>in</strong>centives are <strong>in</strong>volved. Whileit may be true that profit-driven corporations share an <strong>in</strong>terest <strong>in</strong> and a commitment <strong>to</strong>children’s rights, this focus is <strong>in</strong>cidental ra<strong>the</strong>r than central <strong>to</strong> <strong>the</strong>ir bus<strong>in</strong>ess activities.This fact dist<strong>in</strong>guishes <strong>the</strong>ir work from <strong>the</strong>ir non-profit counterparts. Fur<strong>the</strong>r, <strong>the</strong>re is avery real risk with for-profit bus<strong>in</strong>esses that children’s rights will be subord<strong>in</strong>ated <strong>to</strong> profit<strong>in</strong>centives. For example, private <strong>in</strong>dustries may be <strong>in</strong>terested <strong>in</strong> help<strong>in</strong>g youth advance <strong>the</strong>irfuture employability. If <strong>the</strong> expense of so do<strong>in</strong>g is not recouped by <strong>the</strong> corporation <strong>the</strong>n<strong>the</strong>re may be temptation and pressure (i.e., by shareholders) <strong>to</strong> abandon such practices.Therefore this study will focus on ways <strong>in</strong> which child protections aga<strong>in</strong>st commercialsexual exploitation are compatible with profit mak<strong>in</strong>g <strong>in</strong>dustries only.8|Private Sec<strong>to</strong>r Accountability <strong>in</strong> Combat<strong>in</strong>g <strong>the</strong> Commercial Sexual Exploitation of <strong>Child</strong>ren
1.2.1 Transnational and mult<strong>in</strong>ational corporationsAccord<strong>in</strong>g <strong>to</strong> <strong>the</strong> UN, <strong>the</strong> term transnational corporation (TNC) refers <strong>to</strong> an economicentity operat<strong>in</strong>g <strong>in</strong> more than one country or a cluster of economic entities operat<strong>in</strong>g <strong>in</strong> twoor more countries – whatever <strong>the</strong>ir legal form, whe<strong>the</strong>r <strong>in</strong> <strong>the</strong>ir home country or country ofactivity, and whe<strong>the</strong>r taken <strong>in</strong>dividually or collectively. 15 The UN’s <strong>document</strong>s do not havea published def<strong>in</strong>ition of <strong>the</strong> term “mult<strong>in</strong>ational”. However, <strong>the</strong> International LabourOrganisation (ILO), a UN specialised agency that seeks <strong>to</strong> promote human and labourrights, has def<strong>in</strong>ed mult<strong>in</strong>ational corporations (MNC) as “enterprises, whe<strong>the</strong>r <strong>the</strong>y are ofpublic, mixed or private ownership, which own or control production, distribution, servicesor o<strong>the</strong>r facilities outside <strong>the</strong> country <strong>in</strong> which <strong>the</strong>y are based. The degree of au<strong>to</strong>nomy ofentities with<strong>in</strong> mult<strong>in</strong>ational enterprises <strong>in</strong> relation <strong>to</strong> each o<strong>the</strong>r varies widely from onesuch enterprise <strong>to</strong> ano<strong>the</strong>r, depend<strong>in</strong>g on <strong>the</strong> nature of <strong>the</strong> l<strong>in</strong>ks between such entities and<strong>the</strong>ir fields of activity and hav<strong>in</strong>g regard <strong>to</strong> <strong>the</strong> great diversity <strong>in</strong> <strong>the</strong> form of ownership,size, <strong>in</strong> <strong>the</strong> nature and location of <strong>the</strong> operations of <strong>the</strong> enterprises concerned.” 16In contrast, <strong>the</strong> Organisation for Economic Cooperation and Development 17 (OECD)has stated, “[MNCs] usually comprise companies or o<strong>the</strong>r entities established <strong>in</strong> morethan one country and so l<strong>in</strong>ked that <strong>the</strong>y may coord<strong>in</strong>ate <strong>the</strong>ir operations <strong>in</strong> various ways.While one or more of <strong>the</strong>se entities may be able <strong>to</strong> exercise a significant <strong>in</strong>fluence over <strong>the</strong>activities of o<strong>the</strong>rs, <strong>the</strong>ir degree of au<strong>to</strong>nomy with<strong>in</strong> <strong>the</strong> enterprise may vary widely fromone mult<strong>in</strong>ational enterprise <strong>to</strong> ano<strong>the</strong>r. Ownership may be private, state or mixed.” 18Although often used <strong>in</strong>terchangeably, <strong>the</strong> dist<strong>in</strong>ction between a transnational and amult<strong>in</strong>ational corporation is an important one. As Korten expla<strong>in</strong>s <strong>in</strong> his book, WhenCorporations Rule <strong>the</strong> World:Dur<strong>in</strong>g <strong>the</strong> transition phase from national <strong>to</strong> transnational, many corporationsstyled <strong>the</strong>mselves as ‘mult<strong>in</strong>ational,’ which meant that <strong>the</strong>y <strong>to</strong>ok on many nationalidentities, ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g relatively au<strong>to</strong>nomous production and sales facilities <strong>in</strong><strong>in</strong>dividual countries, establish<strong>in</strong>g local roots and present<strong>in</strong>g <strong>the</strong>mselves <strong>in</strong> eachlocality as a good local citizen. Globalized operations might be l<strong>in</strong>ked <strong>to</strong> oneano<strong>the</strong>r, but <strong>the</strong>y were deeply <strong>in</strong>tegrated <strong>in</strong><strong>to</strong> <strong>the</strong> <strong>in</strong>dividual local economies <strong>in</strong>which <strong>the</strong>y operated. Dur<strong>in</strong>g this phase, many did function <strong>to</strong> some extent aslocal citizens.As structural adjustment programs and free trade agreements rendered nationaleconomic borders <strong>in</strong>creas<strong>in</strong>gly irrelevant, most corporations that operatePrivate Sec<strong>to</strong>r Accountability <strong>in</strong> Combat<strong>in</strong>g <strong>the</strong> Commercial Sexual Exploitation of <strong>Child</strong>ren|9
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The World Congress III against Sexu