Leaderships Legacy and Its Promise

Fall 2010

The recipients of USCIB’s International Leadership Award have helped to shape the world we live in today.

Peter_RobinsonOn important anniversaries, it’s customary to look back, to reflect on all that’s occurred over the years, and how things have changed.  As we commemorate the 30th anniversary of USCIB’s International Leadership Award, presented this year to 3M CEO George Buckley at USCIB’s Annual Dinner on November 3, we certainly have plenty to look back on.

I’d like to use this space to look at how this “legacy of leadership” – the priorities and passions of the 30 individuals who have been honored with the award – shapes the world we live in today, and provides guidance for dealing with the global business challenges ahead.

Since its inception in 1980, the International Leadership Award has represented, first and foremost, an unassailable commitment to open markets, to expanding international trade and investment.  In his acceptance remarks, our very first honoree, Reginald Jones of GE, focused on the vital importance of exports to the U.S. economy, calling increased trade essential  in achieving sustained economic growth, improved productivity, technological advancement and job creation.  Certainly no one could argue with the continued relevance of that message.

Three years later, David Rockefeller put the trade/growth imperative in the context of Cold War tensions, noting that supporting economic development in poorer countries was an important way to counter Soviet hegemony.  While the stark ideological divide of those days has thankfully dissipated, we all know that trade and growth remain critical factors in countering extremism around the world.

Some honorees have used the platform of the International Leadership Award to rally business and government on important new concerns.  This was the case in 1984, when Edmund Pratt of Pfizer issued a call to action to develop new and better rules to protect intellectual property rights – which led directly to the inclusion of IP protection in the Uruguay Round trade negotiations.  Twenty years later, Jean-René Fourtou of Vivendi Universal picked up the IP banner again, announcing the creation of ICC’s innovative BASCAP (Business Action to Stop Counterfeiting and Piracy) initiative.

Environmental protection and responsible business have been recurring themes among award winners.  In 1992, Dow Chemical’s Frank Popoff noted that “society expects and demands that we be a major part of the environmental solution, and not a contributor to the problem.”  Fifteen years later, as product safety concerns rippled around the world, Fisk Johnson of SC Johnson stated:  “We are the ones who must take the lead.  We can’t leave it to the Chinese. We can’t leave it to the NGOs. We can’t leave it to the federal regulators. The government cannot test everything.  We must be responsible”

Through it all, perhaps the most important theme, and one that bears repeating in today’s world, is can-do spirit.  Current USCIB Chairman Terry McGraw, honored in 2006, noted that international trade “rests on quintessentially American values” of openness, fairness, competition and inclusion .  In 1991, during recessionary times not unlike our own, Kay Whitmore of Eastman Kodak warned against unfounded U.S. pessimism and the siren song of isolationism.  “Pessimism is self perpetuating,” he said, “and failure of nerve can lead to very bad policies.”  Nearly 20 years later, these words still carry remarkable weight.

Persistence, and staying true to one’s principles, was a theme taken up in 2002 by Dick McCormick, the longtime CEO of US WEST who also served as chairman of USCIB and ICC.  He said a benchmark of his career was “the certainty I’ve gained – that the mission and efforts of the United States Council for International Business are the right things, at the right time, for the right reasons – and that we cannot give up, even when the going gets tough.”

More than ever, American business must wrestle with difficult challenges: how to balance corporate profitability with environmental responsibility; how to increase jobs in the U.S. while pursuing new markets overseas; how to support the growth and development of societies around the world, while remaining true to our core values.  As we honor George Buckley and look ahead to the next 30 years, we can have no better guides than the remarkable individuals who have been honored with the International Leadership Award.

Mr. Robinson’s bio and contact information

Other recent postings from Mr. Robinson:

Jobs Take Center Stage (Summer 2010)

Reflections From Copenhagen (Spring 2010)

Now More Than Ever: Competitiveness and Innovation Matter (Winter 2009/2010)

Now More Than Ever: Sustainable Development Matters (Autumn 2009)

 

From the President: Jobs Take Center Stage

To address lingering high unemployment, policy makers need to focus on the private sector.

By Peter M. Robinson

Peter_Robinson
USCIB President and CEO Peter Robinson

We’re not out of the woods yet, but there are signs of economic recovery in the U.S. and abroad. Policy makers’ attention is rightly focused on shaky public finances and lagging job numbers, the latter being a central theme of a number of international gatherings USCIB has been involved in. Labor policies and employment creation are and remain a central focus of our work. I would like to update you on a variety of initiatives in this area.

In April, the U.S. hosted the first-ever meeting of G20 labor ministers in Washington to assess the state of the recovery and make recommendations on employment policy to G20 leaders. Our affiliates IOE and BIAC jointly organized a business forum, hosted by USCIB. The ministerial declaration highlighted the need to reduce poverty and the size of the informal sector, which can reach over 90 percent of GDP in many developing countries. It also called for improved education, lifelong learning, more cooperative labor markets and regulatory reform.

But glaringly absent was a clear commitment to work with the private sector as the primary engine of job growth. Strange as it sounds, ministers spoke about job growth without saying where the jobs will come from – raising the risk that G20 policies coming out of this process will miss the mark. In our view, governments must establish policies to foster economic growth, which will lead to jobs.

Jobs were also at center stage in Geneva at June’s International Labor Conference, the annual meeting of the ILO, where governments, trade unions and employers from over 180 countries gathered to develop international labor standards. The U.S. employer delegation to this year’s conference was headed by Ed Potter of The Coca-Cola Company, who serves as the employer spokesperson on the ILO Committee on Applications of Standards, and included John Oswalt of Procter & Gamble who participated in the employment discussion, Heidi Kaufman of IBM who represented USCIB in the development of an ILO instrument on HIV/AIDS , and John Kloosterman of Littler who participated in the negotiation on a new ILO convention on domestic workers.

The delegation also included USCIB’s Ronnie Goldberg, who serves on the ILO’s Governing Body and is an IOE regional vice chair. At the conference, she led the employers group in the discussion of the agenda and priorities for ILO work on employment. The conclusions of this discussion will likely impact the future allocation of ILO’s resources, including how it works with employers and the IOE in general, so the importance for U.S. business is high.

The key outcomes of the conference included: the finalization of a new ILO recommendation on HIV/AIDS in the workplace, which will build on the ILO code of practice on HIV/AIDS and was supported by the employer group; the development of an ILO work program on employment that supports enterprise development and job creation; a decision to develop a new ILO convention on domestic workers, which will be finalized next year (the employer group had supported developing a recommendation rather than a convention); efforts to improve the follow-up to the 1998 ILO Declaration on Fundamental Principles and Rights at Work, which were also supported by the employer group; and a favorable decision by the Committee on Application of Standards on an IOE complaint against the government of Uzbekistan on the use of forced child labor in cotton production.

On May 4, I was in Washington as Secretary of Labor Hilda Solis hosted the first meeting in 10 years of the President’s Committee on the ILO. Members of the committee include the secretaries of labor, state and commerce; the assistants to the president for national security and economic affairs; the president of the AFL-CIO; and the president of USCIB. The committee’s main job is to review ILO conventions for possible ratification. We agreed to prioritize Convention 111 on non-discrimination, and to review two maritime conventions: 185 on seafarers’ identity cards, and the 2006 Maritime Labor Convention, which consolidates a number of earlier treaties.

USCIB played a leading role in two other meetings with the Obama administration on international labor issues. On March 11, we organized a conference with the Departments of State and Labor on Working Conditions in Global Supply Chains. The event was designed to share information between the private and public sectors on what both are doing to improve labor conditions in supply chains. It attracted over 50 company representatives, and included presentations by Michael Kobori of Levis Strauss & Co., Jeff Morgan of Mars, Inc., Monique Oxender of Ford Motor Company and Michael Vaudreuil of Hewlett-Packard.

USCIB also participated in a June 8 inter-agency meeting on child labor. This scourge is mainly found deep at the bottom of the value chain, where few – if any – supply chain programs can reach. Over 60 percent of child labor worldwide is in agriculture, 25 percent in services like domestic work, and only seven percent in factory settings. As one indication of how deep-seated this problem is, over 70 percent of child labor takes place in the form of non-paid family work, where children work with their families instead of going to school. The June 8 session focused on the need to address the root causes of child labor – lack of economic growth and job opportunities for parents, poor access to education for children, and ineffective enforcement of national laws against child labor.

So it has been an exceptionally busy spring on the labor and employment front. We are especially grateful to all our members who have contributed to our work in this area, and of course to our staff experts Ronnie Goldberg and Adam Greene. We can expect to see an ongoing focus on international labor issues, especially if unemployment rates remain relatively high. USCIB will continue to represent your interests in these discussions, and work to promote policies that lead to sustainable growth and job creation.

Mr. Robinson’s bio and contact information

Other recent postings from Mr. Robinson:

Reflections From Copenhagen (Spring 2010)

Now More Than Ever: Competitiveness and Innovation Matter (Winter 2009/2010)

Now More Than Ever: Sustainable Development Matters (Autumn 2009)

Now More Than Ever: Open Markets Matter (Spring 2009)

From the President: Reflections From Copenhagen

Spring 2010

With critical business left unfinished, USCIB is urging a return to fundamental priorities.

By Peter M. Robinson

USCIB President and CEO Peter Robinson
USCIB President and CEO Peter Robinson

Pride and disappointment, but also renewed resolve, were the emotions I brought back from my time at December’s UN climate summit in Copenhagen.  Pride at the strength and depth of the business delegation we joined.  Disappointment at the lack of a clear road-map for global action to mitigate and adapt to climate change – one that would invigorate private sector innovation and investment in the context of a return to economic growth.  And hope that , by at least providing a foundation in the “Copenhagen Accord,” major economies including China, India and the United States can build more ambitious and concrete actions going forward.

USCIB was present in Copenhagen under the umbrella of the International Chamber of Commerce, which serves as the worldwide focal point  for business representation in the UN Framework Convention on Climate Change.  (As most readers probably know, the formal name for the summit was COP 15, or the 15th conference of the parties to the UN framework convention.)  ICC did a great job keeping the hundreds of business delegates in the loop – and on the same page – as the incredibly complex negotiations unfolded.

We had a truly first-rate delegation that included Ann Condon (General Electric), who chairs our Environment Committee, Brian Flannery (ExxonMobil), co-chair of the USCIB International Energy Group and vice-chair of ICC’s Environment and Energy Commission, Richard Wilder (Microsoft) and Norine Kennedy, USCIB’s vice president for energy and environment (a “survivor” of all the previous COPs).  Each morning, as we gathered in the BINGO (business and industry non-governmental organizations) room for our daily briefing, I was especially proud to see Norine on the dais, supporting ICC’s discussion and outlook for the day’s negotiations and events.

USCIB went into Copenhagen having reminded the Obama administration of the business community’s broad goals: an inclusive global agreement with action by all major emitting nations, support for intellectual property rights to speed the development of new technologies, and ambitious national strategies to address global warming.   In addition, we laid out detailed recommendations on financial mechanisms to meet the climate challenge and mobilize the $10 trillion needed by 2030 to fund necessary improvements to the global energy infrastructure.

At the summit, we joined with ICC in drawing special attention to the urgent need for the rapid development of new technologies to meet the needs of a growing, energy-hungry population worldwide while dealing effectively with global warming, particularly in the Copenhagen Business Day, which brought high level attention to business solutions in these critical areas.  And we co-hosted a special event on the intersection of trade policy and climate change, where speakers highlighted the positive relationship of open trade and investment with technology and financing for climate solutions.

So with all this invested in an ambitious outcome, what is USCIB’s take on the results from Copenhagen?  We are disappointed that the UN process did not deliver a more ambitious agreement.  While the rather minimalist results provide a basis for further work, much remains to be done in 2010 to deliver the clarity, flexibility and enabling frameworks that business has long advocated.  As I write this, most parties still have not laid out their mitigation, adaptation or financial commitments with any meaningful specificity.

With the apparent impasse in the UN process, we can expect a period of uncertainty, in which other influential organizations and deliberations could take on greater importance, such as the World Bank and G8/G20. .  In this regard, it is more important than ever to engage business positively and substantively in these processes,  and work with governments to establish the proper terms and procedures that will give business the predictability it requires to plan, innovate and invest.

These are just some of the issues that were supposed to be resolved in Copenhagen, but weren’t.  Moving forward, discussion of course continues in the United Nations, as we look toward another COP in Cancún at the end of this year.  But we also will watch  processes like the Major Economies Forum which might be able to move ahead with a smaller group of like-minded countries.

Whatever the forum, you can expect USCIB to be there, pressing governments to make the hard choices required for meaningful action on climate and energy.

Mr. Robinson’s bio and contact information

Other recent postings from Mr. Robinson:

Now More Than Ever: Competitiveness and Innovation Matter (Winter 2009/2010)

Now More Than Ever: Sustainable Development Matters (Autumn 2009)

Now More Than Ever: Open Markets Matter (Spring 2009)

Now More Than Ever: In the current crisis, USCIB’s core values matter even more (Winter 2008/2009)

 

 

Jobs Take Center Stage

To address lingering high unemployment, policy makers need to focus on the private sector.

By Peter M. Robinson

Peter_Robinson
USCIB President and CEO Peter Robinson

We’re not out of the woods yet, but there are signs of economic recovery in the U.S. and abroad. Policy makers’ attention is rightly focused on shaky public finances and lagging job numbers, the latter being a central theme of a number of international gatherings USCIB has been involved in. Labor policies and employment creation are and remain a central focus of our work. I would like to update you on a variety of initiatives in this area.

In April, the U.S. hosted the first-ever meeting of G20 labor ministers in Washington to assess the state of the recovery and make recommendations on employment policy to G20 leaders. Our affiliates IOE and BIAC jointly organized a business forum, hosted by USCIB. The ministerial declaration highlighted the need to reduce poverty and the size of the informal sector, which can reach over 90 percent of GDP in many developing countries. It also called for improved education, lifelong learning, more cooperative labor markets and regulatory reform.

But glaringly absent was a clear commitment to work with the private sector as the primary engine of job growth. Strange as it sounds, ministers spoke about job growth without saying where the jobs will come from – raising the risk that G20 policies coming out of this process will miss the mark. In our view, governments must establish policies to foster economic growth, which will lead to jobs.

Jobs were also at center stage in Geneva at June’s International Labor Conference, the annual meeting of the ILO, where governments, trade unions and employers from over 180 countries gathered to develop international labor standards. The U.S. employer delegation to this year’s conference was headed by Ed Potter of The Coca-Cola Company, who serves as the employer spokesperson on the ILO Committee on Applications of Standards, and included John Oswalt of Procter & Gamble who participated in the employment discussion, Heidi Kaufman of IBM who represented USCIB in the development of an ILO instrument on HIV/AIDS , and John Kloosterman of Littler who participated in the negotiation on a new ILO convention on domestic workers.

The delegation also included USCIB’s Ronnie Goldberg, who serves on the ILO’s Governing Body and is an IOE regional vice chair. At the conference, she led the employers group in the discussion of the agenda and priorities for ILO work on employment. The conclusions of this discussion will likely impact the future allocation of ILO’s resources, including how it works with employers and the IOE in general, so the importance for U.S. business is high.

The key outcomes of the conference included: the finalization of a new ILO recommendation on HIV/AIDS in the workplace, which will build on the ILO code of practice on HIV/AIDS and was supported by the employer group; the development of an ILO work program on employment that supports enterprise development and job creation; a decision to develop a new ILO convention on domestic workers, which will be finalized next year (the employer group had supported developing a recommendation rather than a convention); efforts to improve the follow-up to the 1998 ILO Declaration on Fundamental Principles and Rights at Work, which were also supported by the employer group; and a favorable decision by the Committee on Application of Standards on an IOE complaint against the government of Uzbekistan on the use of forced child labor in cotton production.

On May 4, I was in Washington as Secretary of Labor Hilda Solis hosted the first meeting in 10 years of the President’s Committee on the ILO. Members of the committee include the secretaries of labor, state and commerce; the assistants to the president for national security and economic affairs; the president of the AFL-CIO; and the president of USCIB. The committee’s main job is to review ILO conventions for possible ratification. We agreed to prioritize Convention 111 on non-discrimination, and to review two maritime conventions: 185 on seafarers’ identity cards, and the 2006 Maritime Labor Convention, which consolidates a number of earlier treaties.

USCIB played a leading role in two other meetings with the Obama administration on international labor issues. On March 11, we organized a conference with the Departments of State and Labor on Working Conditions in Global Supply Chains. The event was designed to share information between the private and public sectors on what both are doing to improve labor conditions in supply chains. It attracted over 50 company representatives, and included presentations by Michael Kobori of Levis Strauss & Co., Jeff Morgan of Mars, Inc., Monique Oxender of Ford Motor Company and Michael Vaudreuil of Hewlett-Packard.

USCIB also participated in a June 8 inter-agency meeting on child labor. This scourge is mainly found deep at the bottom of the value chain, where few – if any – supply chain programs can reach. Over 60 percent of child labor worldwide is in agriculture, 25 percent in services like domestic work, and only seven percent in factory settings. As one indication of how deep-seated this problem is, over 70 percent of child labor takes place in the form of non-paid family work, where children work with their families instead of going to school. The June 8 session focused on the need to address the root causes of child labor – lack of economic growth and job opportunities for parents, poor access to education for children, and ineffective enforcement of national laws against child labor.

So it has been an exceptionally busy spring on the labor and employment front. We are especially grateful to all our members who have contributed to our work in this area, and of course to our staff experts Ronnie Goldberg and Adam Greene. We can expect to see an ongoing focus on international labor issues, especially if unemployment rates remain relatively high. USCIB will continue to represent your interests in these discussions, and work to promote policies that lead to sustainable growth and job creation.

Mr. Robinson’s bio and contact information

Other recent postings from Mr. Robinson:

Reflections From Copenhagen (Spring 2010)

Now More Than Ever: Competitiveness and Innovation Matter (Winter 2009/2010)

Now More Than Ever: Sustainable Development Matters (Autumn 2009)

Now More Than Ever: Open Markets Matter (Spring 2009)

 

 

From the President: Competitiveness and Innovation Matter

Winter 2009/2010

Smart policies, and openness to trade and new ideas, are needed to maintain America’s technological dynamism.

By Peter M. Robinson

Throughout 2009, USCIB President and CEO Peter Robinson has devoted this space to discussing the increased importance of USCIB’s core values, principles and priorities.
Throughout 2009, USCIB President and CEO Peter Robinson has devoted this space to discussing the increased importance of USCIB’s core values, principles and priorities.

Smart, effective policies to promote American competitiveness will be critical as we emerge from the global economic downturn.  Innovation powers our economy and is essential to tackle global challenges such as climate change.  In a recent survey, 78 percent of Americans said they believe innovation will be more important to the U.S. economy over the coming three decades than it was in the last three.  Yet in many ways our own policies, and those of other countries, undercut our competitiveness.

American innovation is under fire from well-known threats like counterfeiting and piracy.  It is also harmed by misguided attempts to avoid “shipping jobs overseas.”  Take the tax code: the Obama administration’s proposal to curtail deferral of taxes on overseas income could force U.S. companies into inefficient operating structures that perversely reduce their overall employment, or even drive some to reincorporate elsewhere.  Or take our “Buy American” rules, which are readily emulated by other countries, to the detriment of our exports and overall employment.

Innovation, like trade, is a two-way street: nations gain from free exchange and mutual openness to new ideas.  To cite a success story, look to the Internet.  The maintenance of effective Internet-related policies by many governments has created an environment that enables remarkable innovation and economic development – with tremendous benefits to America’s communications and information technology industries as well as our overall competitiveness.  It will be important to maintain this sensible approach in the years ahead.

Nowhere is the need for openness and innovation more evident than in the fight against global warming.  Yet in the ongoing UN climate talks, many countries are recommending policies that would inhibit, rather than promote, the availability of critical technology to address global warming, for example through the abrogation of intellectual property rights or the maintenance of high barriers to trade in environmental goods and services.  This is not good for U.S. exports, and it is certainly not good for the climate.

What is USCIB doing to secure appropriate policies in these areas?  Plenty.  Our Taxation Committee works closely with the Executive Branch, Capitol Hill and international bodies like the OECD to promote approaches that support the dynamism of globally engaged companies.  In addition, the United States Council Foundation is once again working with the Business Roundtable to sponsor an updated version of Dartmouth Professor Matthew Slaughter’s influential study, published earlier this year, demonstrating the sizeable domestic returns – in terms of employment and R&D here at home – of overseas operations by U.S. multinationals.

USCIB is working closely with the International Chamber of Commerce to promote recognition of the Internet’s sizeable power to support economic and social progress.  Together with ICC, we are also rallying governments and the private sector around the world in support of stepped-up efforts to confront counterfeiting and piracy.  And together, we are making the case for a wise approach to global climate change that unleashes the power of technology to help deal with, and eventually solve, this growing challenge.

We need to take a broader view of American competitiveness, which is strongly tied to the overall health of the global economy.  The degree to which our country is open to trade, investment and technological innovation will determine our competitiveness for years to come.

Mr. Robinson’s bio and contact information

Other recent postings from Mr. Robinson:

Now More Than Ever: Sustainable Development Matters (Autumn 2009)

Now More Than Ever: Open Markets Matter (Spring 2009)

Now More Than Ever: In the current crisis, USCIB’s core values matter even more (Winter 2008/2009)

An Energy Agenda for the Next Administration (Autumn 2008)

From the President: Now More Than Ever Sustainable Development Matters

Autumn 2009

Economic growth and environmental improvement are not mutually exclusive.

Throughout 2009, USCIB President and CEO Peter Robinson devotes this space to discussing the increased relevance of USCIB’s core values, principles and priorities.

Around the world, society faces the challenge of balancing two equally critical imperatives: on the one hand, economic growth and human progress; on the other, environmental sustainability and stewardship for future generations.  Some question whether these two imperatives can be met simultaneously.  Perhaps, they posit, balancing the economy and the environment is a zero-sum game, with improvements in one area coming at the expense of improvements in the other.

As a general rule, USCIB members do not buy in to the concept of zero-sum games, especially in this area.  We believe that environmental and economic progress can, and indeed must, go hand in hand.  Because of our unique positioning in the global policymaking sphere, we are now uniquely poised to press policy makers to put that belief to the test in the area of climate change.

This December, diplomatic efforts to develop a long-term international agreement to succeed the Kyoto Protocol will culminate in a major United Nations conference in Copenhagen.  Working primarily through the International Chamber of Commerce, USCIB is actively seeking a global framework that will provide energy access and security, while spurring technological innovation and the deployment of climate-friendly technologies to enable us to meet the common challenge of curtailing greenhouse gas emissions.

And this is not just our position.  As reported in an earlier issue of International Business, participants at a pre-Copenhagen business summit involving influential business groups from all the major emitting countries surprised even themselves with a remarkable degree of consensus around these key points.  Clearly, business is on board and will push hard for an effective global agreement on climate.

But one does need to wonder whether our elected officials feel the same sense of urgency.  It is worrisome that, in debating the establishment of a cap-and-trade mechanism for the United States, Congress is seriously weighing the imposition of “green” tariffs to punish those who may not live up to our own new standards.  This is precisely how one might wreck the chances for progress in Copenhagen.

Indeed, there is entirely too much talk of sticks, rather than carrots, in the climate debate.  There are clearly win-win opportunities in a post-Kyoto framework that would enable countries to grow economically while reducing emissions.  But we must keep markets open while fostering innovation.

American companies are up to the climate challenge, and indeed would benefit from lower barriers to imports of environmental technologies abroad.  The U.S. and other major governments in developed and developing countries must support the private sector’s proven ability to commercialize and disseminate the fruits of innovation.  Open trade is an essential part of that formula.

Sustainable development matters, perhaps even more so during a time of recession and scarce resources.  It is possible to secure global prosperity while protecting the world’s climate, but only with strong and sensible leadership from all major parties.  We hope that leadership to advance economic recovery and encourage greener solutions in a mutually supportive fashion will emerge between now and December.  The world can’t wait much longer.

Mr. Robinson’s bio and contact information

Other recent postings from Mr. Robinson:

Now More Than Ever: Open Markets Matter (Spring 2009)

Now More Than Ever: In the current crisis, USCIB’s core values matter even more (Winter 2008/2009)

An Energy Agenda for the Next Administration (Fall 2008)

Employers’ Vision of the ILO (Summer 2008)

Lisbon Hosts Business Conference on OECD’s Response to Global Economic Crisis

Participants sought to defend the global economy from protectionist backsliding.
Participants sought to defend the global economy from protectionist backsliding.

As global leaders continue to face the challenges of addressing the global financial and economic crisis, over 150 international business and government policy decision-makers met May 21 to explore and discuss how the OECD and the international business community are working together to promote open markets and job creation.

The one-day conference, organized by the Business and Industry Advisory Committee to the OECD (BIAC) and its Portuguese member Associação Industrial Portuguesa – Confederação Empressarial (AIP-CE) on the occasion of BIAC’s annual general assembly, provided insight into how the Paris-based OECD, which groups the world’s most advanced industrialized nations, influences economic policies worldwide and how business can engage with it.

“We must work together, BIAC and OECD, to restore public trust,” said OECD Secretary General Angel Gurría. “Trust in governments and regulations, in banks and corporations, in open markets and globalization as a whole.”

BIAC Chairman Charles P. Heeter (Deloitte & Touche) helped open the event.  “Crisis management necessitates extraordinary measures, and governments are pressing, both domestically as well as internationally, to restore market confidence in the financial sector and to stimulate their economies,” he stated.  “BIAC is the means for the business voice to be heard at the highest levels at the OECD as it deals with today’s problems and thinks of tomorrow’s challenges.”

In a panel discussion of the current global economic outlook, USCIB President and CEO Peter M. Robinson called upon governments to refrain from imposing new barriers to trade and investment, even where technically allowable under multilateral rules.  Referring to recent OECD discussions of globally integrated production, he stated: “We must resist the tide of ‘below the WTO radar’ non-tariff barriers that disrupt global, vertically integrated production patterns.”

Additional speakers included Fernando Teixeria Dos Santos, Portugal’s minister of state and finance, Jorge Rocha De Matos, president of AIP-CE, and Eduardo Ferro Rodrigues Portugal’s ambassador to the OECD.  Panels included numerous other business and industry representatives from the U.S., Japan, Germany, Brazil, India, Sweden, Norway and Switzerland, as well as host Portugal.

Mr. Heeter concluded by thanking AIP-CE for successfully hosting this year’s event, and by highlighting that BIAC will build on the outcomes of the roundtable in preparing for its June 23 consultation with OECD ministers in Paris.  “It is in times like these when our collective work is needed more than ever,” he said.  “Business and governments acting together can help restore trust in globalization.”

Staff contact: Peter Robinson

More on BIAC

From the President’s Desk: Now More Than Ever

Winter 2008/2009

In the current crisis, USCIB’s core values matter even more

By Peter M. Robinson

Peter M. Robinson
Peter M. Robinson

With the U.S. and global economies reeling from the effects of the worst financial crisis most of us have ever witnessed, we begin 2009 on a decidedly sober note.  So why am I feeling optimistic?

Perhaps because I subscribe to the view that every market downturn is a buying opportunity.  Or it could be that traditionally, in China, the Year of the Ox represents opportunity for those who are methodical, persistent and confident.

Whatever the reason, I remain optimistic that, despite the events of the past year, USCIB members, and our economy as a whole, will emerge from the current downturn more vibrant and competitive than ever.  But what must we do to get to that point?

Barack Obama’s historic election to the presidency has raised enormous hopes, both in the U.S. and overseas, for change and reform in a variety of areas, including the economy.  What will the new administration’s agenda, coupled with a strong Democratic majority in Congress, mean for global business?

Strong global institutions, and coordinated actions by governments, are essential as we address the fallout from the financial crisis and the downturn in the real economy.  In the process, international regulatory agencies may acquire new responsibilities impacting business.

Our economic troubles resulted from both bad choices by policy makers and missteps in the private sector.  Implementing meaningful regulatory reform, and getting us back on the path to growth, will therefore require leadership from both business and governments around the world.

All this points to the fact that an organization like USCIB has never been more important.  Promoting economic growth and better living standards, at home and abroad, through strong engagement by global companies with governments and international rule-making institutions – this is the heart of our work.  And it is work that must be done.

USCIB’s policy priorities during 2009 will be guided by our core values of international engagement and regulatory prudence in support of open markets, sustainable development, competitiveness and innovation, and corporate responsibility.  Now more than ever, these values matter. And the voices of USCIB and its members will matter – in Washington, Brussels, Beijing, Paris, Geneva, wherever policy makers gather.

Over the coming year, I will use this space to reflect further on these core USCIB values – why they matter, and what we and our partners around the world are doing to ensure business can help build a better world, for ourselves and our children.

So as we begin a new year, I wish to offer thanks for the invaluable contributions of our members, as well as the hard work of our staff, our colleagues at affiliated business bodies around the world, and our partners in government and civil society.  With your continued energy and support, we will all emerge from the current downturn stronger than we went in.

Mr. Robinson’s bio and contact information

Other recent postings from Mr. Robinson:

An Energy Agenda for the Next Administration (Fall 2008)

Employers’ Vision of the ILO (Summer 2008)

New Financial Challenges on the Horizon (Spring 2008)

Trade Can Save the Climate (Winter 2007-2008)

Now More Than Ever: Open Markets Matter

From the President’s Desk:

Now More Than Ever: Open Markets Matter

As the world debates new regulatory structures, USCIB will be there.

By Peter M. Robinson

Peter_Robinson
Throughout 2009, USCIB President and CEO Peter Robinson devotes this space to discussing the increased relevance of USCIB’s core values, principles and priorities.

The unfolding global financial crisis and worldwide recession have put open markets in jeopardy. According to the World Bank, since their summit in Washington last November, fully 17 of the G20 nations introduced some 47 new trade and related market barriers, despite pledges to avoid doing so.

The results are startling. The World Trade Organization estimates that world trade will plunge by nine percent this year, its sharpest decline since World War II. Lower worldwide demand is certainly contributing to this drop, as is the drying-up of credit, which has hit international trade just like it has every other sector of economic activity. But countries add insult to injury by pursuing such ruinous beggar-thy-neighbor policies.

What can business do to help get us out of this mess? Clearly, we must actively support close international cooperation to lift the major economies out of recession and to lay the groundwork for future prosperity. USCIB and our affiliated business groups have been pushing for this since the onset of the crisis. The results of the most recent G20 meeting in London appear to indicate that our leaders’ hearts are in the right place. But we need to hold policy makers to account.

Many countries have proposed new rules, even new international institutions, to deal with the fallout from recent market failures. New regulation is clearly necessary. But we must be alert to the real possibility of regulatory overreach, both at home and in the global arena. In particular, it is important that leading international bodies remain focused on their core competencies, and that the purpose of any new cross-border regulatory machinery be clearly defined.

USCIB’s global business network, with its strong links to key governments and international bodies, is playing an instrumental role in providing business with a clear, coordinated voice in major world capitals and intergovernmental forums.  Furthermore, we are seeking to bring a global perspective in support of open markets to domestic debates over trade, investment and economic recovery.

Following the G20 Summit in London, attention is expected to turn toward July’s G8 Summit in Sardinia. Our chairman Bill Parrett took part in April’s preparatory G8 Business Summit in Sardinia, where business federation heads from each of the G8 nations were expected to press for a strong and united policy response as well as the rejection of isolationist and discriminatory measures on the part of major governments.

Even in these difficult times, it is critically important for companies to remain engaged and provide necessary leadership in the fast-changing global business environment. Indeed, I would argue that such leadership is needed especially in difficult times, because in public policy, it is often during a crisis that important structural changes are made. What is decided this year may last for decades to come.

As the world debates new financial, economic and regulatory structures, USCIB will continue to serve as your vehicle for providing business solutions, vision and leadership. Because now more than ever, open markets matter.

Mr. Robinson’s bio and contact information

 

Other recent postings from Mr. Robinson:

Now More Than Ever: In the current crisis, USCIB’s core values matter even more (Winter 2008/2009)

An Energy Agenda for the Next Administration (Fall 2008)

Employers’ Vision of the ILO (Summer 2008)

New Financial Challenges on the Horizon (Spring 2008)

Some Thoughts on the Current Crisis

USCIB President Peter M. Robinson
USCIB President Peter M. Robinson

With developments changing on a daily basis, it is difficult to provide any sort of authoritative statement on the ongoing financial and economic crises sweeping the globe, or on the response of governments. But I would like to express our concern for the challenges facing all our members, as well as our determination to continue to serve your needs effectively in times of tighter resources.

As they wrestle with difficult decisions and a rapidly changing environment, global policy makers must be careful not to lapse into the failed approaches of the past. Overly heavy-handed regulation, especially through the imposition of protectionist policies that stifle trade and investment, has been tried many times in response to economic crises, and it has always failed. Indeed, it has usually made matters worse, most notably during the Great Depression. Governments need to be nimble, using smarter regulation (and, wherever possible, self-regulation) to spur recovery, employment, innovation and renewed economic growth. And they must coordinate their activities via existing international institutions.

I would like to reassure all USCIB members that, given the current challenges we all face, USCIB has continued its prudent financial management and developed contingency plans should conditions further deteriorate. As companies’ travel budgets tighten, we expect that our members will rely on USCIB more than ever to represent their interests at critical international negotiations – talks that most likely will be more contentious than ever.

Uncertain economic times, coupled with the onset of a new U.S. administration, will make USCIB and the values we espouse more needed than ever. The defense and promotion of market-based, open trade and investment regimes and well considered, appropriate regulation will be important elements of USCIB’s communication with the new administration and others throughout the difficult days ahead.

Peter M. Robinson

President and CEO, USCIB

Write to Mr. Robinson at probinson@uscib.org