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From Poverty to Power Green, Oxfam 2008 - weman

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FROM POVERTY TO POWERPRIVATE SECTOR, PUBLIC INTERESTAs poor men and women seek <strong>to</strong> feed their families and build betterlives,they grapple with a range of risks and opportunities,their strategiesconstantly evolving <strong>to</strong> cope with change. In this effort, the market isthe sea in which they swim, and the main denizens of that sea areprivate sec<strong>to</strong>r companies.The private sec<strong>to</strong>r spans all private, for-profit businesses, fromgiant transnational corporations <strong>to</strong> backstreet workshops and marketstalls. In the formal economy, private firms enjoy both rights (forexample, limited liability in the case of financial collapse) and responsibilities(<strong>to</strong> obey laws, for example on working conditions and taxation).How companies balance their rights and responsibilities – that is,whether they have long-term or short-term mindsets, respect labourrights, consider their impact on local communities, or manage theirenvironmental footprint – is determined by the actions of states andcitizens, and the will of their owners, managers, and staff.Private firms directly influence the lives of poor people in six mainways: they provide products and services; generate income and investment;create jobs; develop skills through training and experience;transfer and develop technology; and establish physical and institutionalinfrastructure. Firms also exert indirect influence, for examplethrough their impact on the environment, or in lobbying for changes<strong>to</strong> government rules and practices.168

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