11 May to 18 May

Human rights, economic development - or both?

In February 2008, I reflected on the ethics of investing in China. Commentaries on the subsequent economic melt-down have emphasised the importance now achieved by Chinese banking and the interdependence of the Chinese and world economies. China's prosperity has been achieved by acting within the global economy, and despite the rampant inequalities that have emerged, it has shown that greater economic freedom can also enhance social and political freedom. But what of other countries which have not achieved the penetration of new wealth experienced in China? Many are cursed with despotic regimes and, like China, are proscribed by ethical investors.

It is understandable that ethically minded people in the West do not want to invest in countries where crimes against humanity are common. Some countries which violate human rights are so devastated by civil war that they are simply too dangerous for normal commercial activity. Nevertheless, in many cases the development of markets 'at the bottom of the pyramid' and building infrastructure such as mobile-phone networks can encourage self-respect and promote enterprise amongst the poorer people of the world. Is it too much to hope that, in many such cases, a greater degree of social and political freedom will follow?

Robert Taylor is a visiting fellow in the School of Applied Global Ethics and was formerly Responsible Investment Manager with the Cooperative Insurance Society (CIS)