We have no notion of the accumulation of wealth being evil … It’s how you use it. The Islamic ethic is that if God has given you the capacity or good fortune to be a privileged individual in society, you have a moral responsibility to society.

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People coming together around a common purpose are much stronger, for example, in eliminating corruption. When an individual faces corruption, that’s a problem. When a village community faces corruption it’s a totally different issue. And in fact, corruption in civil society is probably one of the most damaging forces that we are trying to deal with everyday…. And what we’ve found is that the community organisations, when they come together, what do they look at? It’s very exciting. Their whole basis of hope is built around best practice. They reject all the things that have damaged them individually and they come together and say we want a new future built around new people whom we choose because we trust them. [Emphasis original]

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The second point I would make is that this project has not stopped at the delivery of energy. It is investing in education, it is investing in healthcare, it is investing in social development, it is investing in all those aspects which improve the quality of life of people who live within the ambit of the project. And I think this is an important lesson to be learnt, because ultimately the goal is to improve the quality of life of people in the most complete manner possible.

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For my comments this evening it was suggested that I share some of the lessons the Aga Khan Development Network has learned from its 50 and more years of work, essentially in the developing countries of East and West Africa, South and Central Asia, and the Middle East. And it seemed that one of the subjects that I might discuss with you this evening, and which bridges our interests of today and perhaps our destinies for tomorrow, is the subject of impact investing.

As you know, a wide spectrum of investors has been increasingly involved in “impact investing,” using a diverse array of assets, employing highly disciplined due diligence and accounting analyses, and pursuing a balanced mix of financial, social, economic and environmental goals. It has been exciting to see the volume of such investments growing substantially in recent years, with growth expected to reach around 500 billion U.S. dollars in the next ten years.

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Thinking of the past, I recollect the important dates of Tajik history. Twenty years ago, independence; sixteen years ago, an agreement between the Aga Khan Development Network and the government of Tajikistan in order to contribute to the development of this country. That agreement has enabled us to share as partners in the work of developing Tajikistan and improving the quality of life of the people of this country. We focused not only on building this hotel, but we worked on rural development, health and education at different levels, the production of energy and including the University of Central Asia and the Ismaili Centre here in Dushanbe. What is the purpose? The purpose is to bring multiple-sector support to the development process of the countries in which we work in.

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[W]e are looking at quality of life indicators — indicators that are not the same as those of the World Bank, indicators we have tried to develop through our own experience. We are looking at things like security, longevity, disposable income, access to education and employment. We are looking at what really affects people’s attitudes to their own understanding of quality of life. We did discover that communities around the world don’t have the same value systems. They will interpret their own qualities of life very differently from one part of the country to the other….

Imams around the world have businesses, not just the Shia Ismaili Imam. We do not see a conflict and indeed if we lived in an attitude of conflict, I don’t believe we would be living within the ethics of Islam. Islam doesn’t say that a proper practice of the faith means you have to ignore the world. What it says is: Bring to the world the ethics of your faith. If you have wealth, use it properly. But the actual ownership of wealth is not in any way criticisable unless you have acquired it through improper means or you are using it for improper purposes. It is seen as a blessing of God. So this whole notion of conflict between faith and world is totally in contradiction to the ethics of Islam….

Creating energy can be a source of environmental damage. The question is what is the most cost-effective way of creating this energy with minimum damage. I believe the partners in Bujagali have gone through massive environmental analysis and come to the conclusion that this is one of the least environmentally damaging initiatives in East Africa, because it impacts a very, very small area of land and a small percentage of the population, who were all relocated in good conditions. I have seen situations where energy has been produced by windmills, by solar batteries and the damage that they have done to the environment is simply incredible. Because these types of energy creation don’t work everywhere. And when they don’t work, they get written off in three years but nobody pulls them down. So they stay there and they are awful. We still don’t really know a great deal about the technology of these new energy sources.

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My effort to defend the value of culture, through the Aga Khan Development Network, and specifically through its dedicated agency, the Aga Khan Trust for Culture, focuses its activities in four main areas: the Aga Khan Historic Cities Programme; the Aga Khan Award for Architecture; the Aga Khan Music Initiative; and Museum Projects.

These activities, which are themselves subdivided into a number of subsidiary programmes in many countries, obey four key principles. Firstly, they seek to increase the beneficiaries’ independence, to involve local communities, and to secure the support of public and private partners. Secondly, they are carried out in poor environments where there are considerable centrifugal, sometimes even conflicting, forces at play. Thirdly, they are designed to have maximum beneficial impact on the economies of the populations involved and their quality of life in the broadest sense of the term. Finally, they are planned in the long term, over a period of up to twenty-five years, enabling them to become self-sufficient both financially as well as in terms of human resources.

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There is one other larger context I would like to mention today — the story of the Serena Hotel Group as a whole. Stretching back now over nearly four decades the Serena Group has contributed significantly to the economic progress of the places where it operates. And we intend that this same thing will happen in this country.

To begin with, attracting visitors to this country — business leaders and leisure travellers alike, one-time visitors and repeat customers — will itself produce foreign exchange at the time of such visits as well as later foreign investment, often as a result of those stays. And in both cases, there will be important multiplier effects for other enterprises, as well as for government revenues.

As the Serena Group has learned in so many other places, world-class travel facilities can be crucial components of what we call “an enabling environment” — a setting in which additional development initiatives can take root and thrive.

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The variety of the world is not only more available, it is nearly inescapable. Human difference is more proximate and more intense. What was once beyond our view is now at our side and, indeed, to use the popular expression, “in our face.” … The challenge of diversity is now a global challenge and how we address it will have global consequences….

I believe that the challenge of pluralism is never completely met. Pluralism is a process and not a product. It is a mentality, a way of looking at a diverse and changing world. A pluralistic environment is a kaleidoscope that history shakes every day. Responding to pluralism is an exercise in constant re-adaptation. Identities are not fixed in stone. What we imagine our communities to be must also evolve with the tides of history. As we think about pluralism, we should be open to the fact that there may be a variety of “best practices,” a “diversity of diversities,” and a “pluralism of pluralisms.”

In sum, what we must seek and share is what I have called “a cosmopolitan ethic,” a readiness to accept the complexity of human society. It is an ethic which balances rights and duties. It is an ethic for all peoples.

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AKDN is of the view that investing in the institutions of civil society and in their capacity to deliver services deserves far greater priority, attention, support and resources than has hitherto been the case, even as investments in rebuilding the State’s institutions continue. Civil society institutions are best able to take into consideration, to reflect, specific provincial or local political situations and socio-economic needs and opportunities. They are well placed to ensure that progress is both public and transparent, that good governance is observed as the norm, just as they are the best tools for ensuring better impact and for hastening visible socio-economic development.

There is need for a sub-national governance structure that is clear, efficient and transparent. There is no reason why planning or programming at the provincial or local level need either contradict or undermine central authority. On the contrary, bankable programmes need to be evolved and implemented that are synchronised with sub-national governance and policy and with the reintegration programme….

There needs to be a willingness to support small-scale and medium-level investments in the short term that may not immediately be considered financially sustainable by conventional measures, but which experience demonstrates are necessary to achieve medium to long-term returns and benefit.

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Much focus over the years has centred heavily on the capital, Kabul, and the central government. Insufficient attention has been paid to the real impact of the generous investments made by donor countries. Do enough Afghans perceive these investments as improving their quality of their life? It is vitally important to demonstrate that local governments and local actors working together with local communities can meet pressing needs. We know too well from experience in Afghanistan and elsewhere that nefarious elements gain the upper hand when there is a gap between the promise of state-supported services and their tangible delivery on the ground. Results change minds, not rhetoric. AKDN’s involvement in national programmes, such as the National Solidarity Programme, which place directly the onus of meeting development needs and setting priorities on communities, is showing remarkable progress, speaking to the entrepreneurial vigour of Afghans.

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The goal [of AKDN's strategy] is clear: the aim is to create or strengthen civil society in developing countries. This single goal, when it is achieved, is in fact necessary and sufficient to ensure peaceful and stable development over the long term, even when governance is problematic…. The essence of our development strategy is thus to create these where they are lacking or need to be reinforced….

The various organisations within the AKDN fall into two categories which both share the same goal of supporting development: commercial companies (grouped together into the Aga Khan Fund for Economic Development, known as AKFED) and those non-profit enterprises which I call “para-companies,” that work toward social or cultural goals. The reason for this dual structure is that civil society cannot emerge solely by starting businesses or solely by building hospitals, schools and universities or cultural facilities….

Para-companies are designed to be economically independent…. [They are] conceived to produce a surplus to ensure their survival and development as long as an entrepreneurial philosophy underpins the creation process and later the day-to-day management. This notion of surplus, it should be pointed out, in no way conflicts with the non-profit status of para-companies.

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Access to green spaces is clearly an important value for the residents of Khorog. Our vision for the Park is that visitors will truly think of the time they spend here as “quality time” — in the fullest sense of that word — moments in their lives during which their spirits will be deeply enriched, hours filled with experiences that they will both enjoy and remember as times of blessing.

That will happen in part because of the music and dance and other cultural events that will be presented here — especially in the new open-air theatre. It will happen in part because of the group discussions and lively conversations that will take place here and the children who will play here — swimming in the summer, for example, and skating in the winter. It will happen in part because of the great celebrations that will take place here, including holiday ceremonies and festivals. And it will also happen because this will be a wonderful setting for individual reflection and contemplation, inspired by the beauty of this place — including the sounds and the sight of running water, in itself a mysterious, ever-changing and always-inspiring natural force. We see Khorog Park as a place of continuity — playing an intimate role from the earliest weeks of a child’s life until that child grows to become a grown-up with his or her own family. And we also see it as a place of change — a park for all seasons of the annual calendar — transforming itself to capture the particular beauty of each particular time of the year.

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The accomplishments we celebrate today, then, are a part of an ongoing story — and it is a story which has counterparts in many places around the world. In Cairo, in Damascus and Aleppo, in Delhi and Lahore, in Kabul and Bamako, in Mopti, Djenne and Timbuktu, and along the ancient Silk Route, the Aga Khan Trust for Culture, through its Historic Cities Programme, has worked to restore a series of major cultural landmarks.

We undertake these projects, in part, because they can reinforce a sense of identity within proud communities, providing gateways to cultural understanding for local citizens and for visitors alike. But there is more to the matter than that. These cultural initiatives, in each case, have also been accompanied by a social and economic rationale, so that the entire project works to improve the well being of the people who live in these areas. How does this happen? It happens when many components come together — like pieces of a complex puzzle….

Our mandate is that no such project should require future support from government or any other institution, but should stand on its own, as an entirely independent engine of community progress.

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[Why have our development] efforts over five decades not borne greater fruit? Measured against history, where have things gone wrong? Given the progress we have made in so many fields, why have we been so relatively ineffective in sharing that progress more equitably, and in making it more permanent?

My response centres on one principal observation: I believe the industrialised world has often expected developing societies to behave as if they were similar to the established nation states of the West, forgetting the centuries, and the processes which moulded the Western democracies. Forgotten, for one thing, is the fact that economic development in Western nations was accompanied by massive urbanisation.

Yet today, in the countries of Asia and Africa where we work, over 70 percent of the population is rural. If you compare the two situations, they are one and a half to two and half centuries apart. Similarly, the profound diversity of these impoverished societies, infinitely greater than that among nascent European nation states, is too often unrecognised, or under-estimated, or misunderstood. Ethnic, religious, social, regional, economic, linguistic and political diversities are like a kaleidoscope that history shakes every day.

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“If you try to put social development ahead of economic support, it doesn’t work. You have to do both together. A community whose economics don’t change is not one that can support community structures, education, healthcare, it doesn’t have the wherewithal.”

I ask whether he thinks this long-term view is key to his success and he says that many projects can take 25 years to come to fruition. He cites a hospital in Pakistan that now produces world class doctors a quarter of a century after it opened. It would be hard to find Western donors who would remain with a project for that long.

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There is an often quoted ayat [of the Qur'an] which says that you should leave the world in a better environment than you found it. You have a responsibility of legacy of God’s creation of the world, to improve that legacy from generation to generation. So there’s an ethical premise to it.

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Technology is also transforming our economic lives. Economic value is no longer tied to how much land one controls or how many machines or factories one owns. Within our lifetimes, predominantly “Agricultural Societies” and “Industrial Societies” of the past have been joined, and sometimes supplanted, by what many call the “Knowledge Society,” propelled by the digital revolution, and focusing on the creation and management of information. In a Knowledge Society, the most productive investments we can make are investments in education. And education is another priority we share with the Bangladeshi people.

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[Google translation] During my many trips to the region during the last forty years I have seen the importance of projects that contribute constructively to the development and this has reinforced some of my beliefs. Firstly, the development challenges also offer opportunities to create opportunities in a part of the world that has a rich cultural heritage. Then, as beneficial partnerships between the public and the private sector can enhance one’s ability to contribute to improving the quality of life and restore hope in resource-poor environments. Finally, by strengthening infrastructure, introducing innovations and facilitate synergy between the countries of the region, the fruits of development can have a wider impact and profound effect on people.

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