From the President: Education for the 21st Century

USCIB President and CEO Peter Robinson

A new report explores approaches to lifelong learning for the 21st century.

By Peter M. Robinson

More and more, technology is eradicating traditional jobs faster than individuals can learn the skills necessary to adapt to new opportunities. The business community acknowledges that the “creative destruction” inherent in globalization and technological innovation can impact individuals differently. We believe that both the public and private sectors must help citizens and workers elevate their skills to meet the needs of the changing job market.

Increasingly, we see a disconnect between what we teach our children and the skills needed to succeed in today’s economy. We need to rethink the fundamental process of how we educate our young and train our workforce. In the 21st century, educators, policy makers and the business community must develop a common global approach to education, skills development and lifelong learning.

This was the focus of a new white paper from the United States Council Foundation, USCIB’s educational arm, and The McGraw-Hill Research Foundation. Summarizing the conclusions of a Roundtable on Education and Human Capital Requirements held earlier this year, the paper calls for a continuous, cogent conversation to respond to the global and personal challenges of the 21st century.

Beyond math and science

Rejecting efforts to elevate science, technology, engineering and mathematics (STEM) over the humanities or other disciplines in favor of a more flexible approach, the report encourages educators to address both individual learning styles as well as the changing demands of the workplace.

It became clear at the roundtable that we do not have a coherent strategy to skills development that will meet the economic needs of the 21st century. Research is fragmented among stakeholders, with business, educators and policy makers each looking at the problem through their own prism. We need a global, multi-disciplinary approach to solving the problem.

As James H. McGraw, IV, president of The McGraw-Hill Research Foundation, noted: “Disruptive events around the world underscore dramatic changes occurring in societies; yet one truism remains unchanged: the key to unlocking a brighter future is forged in education. If we are to tackle the problem of stubbornly high unemployment and meet the job needs of global employers over the long term, we need to embrace a wide range of ideas about education and consider new possibilities.”

The paper offers a number of suggestions made at the roundtable to help improve education, including:

  • Focus first on early childhood, where the best return on investment lies.
  • Build resilience into education systems, improving their ability to respond to rapidly changing needs.
  • Push for mastery of the foundational curriculum through middle school.
  • Focus on processes to reach deep understanding of the knowledge areas covered.
  • Improve the connection between school and work-based learning via apprenticeships and internships.
  • Rethink the front-end-loading of education, as in many cases formal education is continuing well into adulthood via personal re-skilling and corporate training.
  • Develop a better understanding of the role of corporate training and development and its contribution to life-long learning.
  • Place increased value on informal learning avenues (such as after-school programs, museums, etc.) as critical supplements to the inevitable gaps of formal learning.

In the words of Charles Fadel, author of 21st Century Skills and founder and chairman of the Center for Curriculum Redesign, which prepared the white paper: “What is clear is that there is an urgent need to bring to the fore a deeply cogent, synthetic, open-minded and continuous conversation.”

You can download a copy of the white paper here.

The United States Council Foundation and The McGraw-Hill Research Foundation plan to convene a second roundtable to focus on the white paper’s suggestions for immediate action and identify key areas for further study and research. We encourage you to get involved and help us disseminate the results of this project further.

Mr. Robinson’s bio and contact information

Other recent postings from Mr. Robinson:

Ensuring a Dynamic and Secure Internet (Spring 2012)

Green Growth: Getting the Policies Right (Winter 2011/2012)

Supply Chain Challenges (Fall 2011)

Opening the World for Business (Summer 2011)

The OECD at 50 (Spring 2011)

From the President: Ensuring a Dynamic and Secure Internet

For the online world to continue to grow and prosper, we need to ensure integrity and policy coherence.

By Peter M. Robinson

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

Reading the news recently – with social media’s explosive role in the Arab spring, increasingly sophisticated cyber-attacks, and recurring uproars over privacy – you might think the Internet is flying apart in all directions.

But in fact, things are converging. The world is increasingly data-driven. Public reliance on the global Internet as a channel for essential communication and information has increased exponentially. Cross-border data flows continue to grow, as does the proliferation of mobile devices. This means that how the Internet is managed is now everybody’s business.

So it’s important that we all – businesses, governments, consumers, everyone – look closely at proposals to shift responsibility for Internet governance away from the multi-stakeholder model, which has held sway for over a decade, toward a more government-dominated approach.

This will be a core topic at December’s World Conference on International Telecommunications (WCIT) in Dubai. The treaty conference is convened by the UN’s International Telecommunications Union, and many have voiced concern at proposals by Russia and some Arab countries to increase the ITU’s authority. As an alternative, USCIB and its sister business organizations around the world are pushing hard to maintain and reinforce a vibrant multi-stakeholder model.

Why? In two words, interoperability and integrity. By interoperability, we mean policy coherence, ensuring that national and regional policy regimes work in concert with each other. By integrity, we mean avoiding the fragmentation of the global Internet into many separate networks. The digital economy can’t function without both of these, and with more and more of our lives now taking place online, neither could a lot of things.

To ensure continued interoperability, USCIB and allied groups are engaging closely with policymakers to update the OECD’s privacy guidelines, the international standard for privacy protection, which date to 1980, before the widespread use of personal computers, much less the Internet, cloud computing and the rise of “big data,” in a way that maintains the original, and still useful principles.

We are also focusing business attention on proposed new privacy regulations in the European Union, which have the potential – if done right – to harmonize rules and increase legal certainty throughout Europe. But if done wrong, the new rules could hamper Europe’s economic recovery and prove difficult to implement.

And business is also closely engaged in discussions surrounding a new White House “consumer privacy bill of rights” and related U.S. efforts to promote online security and innovation. We are heartened that the Obama administration has recognized the importance of ensuring international interoperability, including recently agreed OECD Internet principles and APEC cross-border privacy rules to which USCIB and business have contributed mightily (see the last issue of International Business).

Equally important, we are working hard to ensure the continued integrity of the global Internet and fight back against efforts to fragment it. This will be important as we approach the WCIT conference, and also at the UN’s Internet Governance Forum (IGF), which takes place in November in Baku, Azerbaijan. The IGF has been an essential bulwark for the multi-stakeholder approach, engaging business, civil society and the Internet technical community along with governments in discussions on a range of Internet policy issues, and focusing on building capacity across all groups to address challenges and ensure continued growth, investment and innovation.

WCIT has the potential to open the door for greater government involvement, via the ITU, in regulating the Internet, for example through proposals to broaden the definition of “telecommunications” to encompass the entire Internet. Such proposals may seem incremental, but they would really prove revolutionary and quite damaging.

Business believes that the existing ITU mandate is sufficient for it to continue to perform its essential work in regulating global telecommunications – traditionally a heavily regulated field, after all. But the Internet has grown and prospered, and we along with it, precisely because it has been lightly regulated and effectively governed via the multi-stakeholder model. Now is not the time to throw that all away.

As a broad-based, multi-sectoral organization with links to essential global policy platforms, USCIB has long played a vanguard role in representing industry in this critical area. We look forward to working with our members to promote a dynamic and secure Internet.

Mr. Robinson’s bio and contact information

Other recent postings from Mr. Robinson:

Green Growth: Getting the Policies Right (Winter 2011/2012)

Supply Chain Challenges (Fall 2011)

Opening the World for Business (Summer 2011)

The OECD at 50 (Spring 2011)

From the President: Green Growth Getting the Policies Right

The Green Economies Dialogue aims to spur discussion of environmentally friendly innovation, jobs and trade in global markets.

peter-robinsonWhile everyone agrees on the need for greener growth, there is less consensus on how we get there.

A new project, the Green Economies Dialogue, aims to bring the policy and business communities together for intensive discussion of the best paths forward. Funded by the United States Council Foundation, USCIB’s educational and research arm, the project mobilizes experts from the public and private sectors, along with leading academics and NGOs, with the goal of providing a clear road forward on green growth, green jobs and a host of related issues.

The most recent UN climate talks underlined the critical importance – for companies, national governments and global institutions – of finding more environmentally friendly paths for business and economic development in the years ahead. Effectively addressing our current economic and environmental challenges will depend on international cooperation that works in synergy with global markets and rules.

We expect the Green Economies Dialogue project to inform policy debate in the lead-up to June’s UN Rio+20 Summit and beyond. Industry, government and other actors must work together to make the transition to a global framework where the private sector and the marketplace have bottom-line motivations to drive improvements in technology and business practices.

The Green Economies Dialogue initiative will provide a platform for discussion of key international policy questions, with the goal of ensuring that economic growth and the pursuit of environmental objectives go hand-in-hand. These include:

  • How can environmental innovation in such areas as energy use or agriculture best be shared around the world, providing opportunities to promote sustainability while maintaining competitiveness?
  • What role should international institutions like the G20, the United Nations and the OECD have in coordinating policies among national governments?
  • How can the logjam of trade and climate negotiations be broken, to foster integrated policies that incentivize innovation, broadly deploy solutions and mobilize financial resources?
  • Are subsidies an effective way to encourage start-ups and investment in new technologies, and what other options can governments pursue to help nurture as yet non-commercial options?

The Green Economies Dialogue will convene regional workshops around the world. The first of these took place in Washington, D.C. on October 12 in a day-long session bringing together more than 50 experts from business, government, academia and the NGO communities, hosted by the environmental research organization Resources for the Future.

“The Washington workshop was an important first step in exploring the policy options to foster green innovation and resource efficiency,” said Phil Sharp, president of Resources for the Future.

Another workshop was held at the OECD in Paris in November, hosted by BIAC, the Business and Industry Advisory Committee to the OECD. Over 80 participants, including representatives from a dozen OECD member countries and several OECD Directorates, attended the meeting, which was opened by Simon Upton, head of the OECD Environment Directorate. Additional workshops are planned for Japan and Brazil during the first quarter of 2012.

As part of the Green Economies Dialogue, academic research is being commissioned for publication in the influential publication Energy Economics ahead of the Rio+20 Summit. Research papers by highly regarded experts will explore a variety of aspects of green growth and green jobs.

The Green Economies Dialogue website (www.green-dialogue.org) is gathering informative materials from numerous points of view, including summaries, statements and papers from the various workshops, as well as summaries of the Energy Economics research. Support for the project is being provided by various private-sector sources through the United States Council Foundation.

This is just another example of USCIB’s convening power, and our ability to drive international debate and consensus on issues critical to global business, the world economy and the health of the planet.

Other recent postings from Mr. Robinson:

Supply Chain Challenges (Fall 2011)

Opening the World for Business (Summer 2011)

The OECD at 50 (Spring 2011)

Dealing With State-Owned Enterprises (Winter 2010-2011)

USCIB Hosts ICC Officials From Throughout the Americas

Last month, building on efforts to strengthen the network of International Chamber of Commerce national committees around the world, USCIB hosted three days of meetings among ICC representatives from across Latin America and the Western hemisphere.  The meetings, which coincided with USCIB’s International Leadership Award Dinner, provided a supportive environment for national committee heads and key staff from ICC headquarters in Paris to share best practices and discuss the world business organization’s key initiatives in policy advocacy and business services.

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L-R: Claudio Piacenza (Uruguay), Raquel Acosta (Costa Rica), François Gabriel Ceyrac (ICC), Patricia Hurtado (Bolivia), Mick Fleming (ACCE), Milagros J. Puello (Dominican Republic), USCIB Chairman Harold McGraw III, María Fernanda Garza (Mexico), USCIB President & CEO Peter Robinson, Yesica González (Mexico), Philip Kucharski (ICC), Fernanda Hurtado (Chile), Diana Droulers (Venezuela), Jeff Hardy (ICC), Gizelle Reginato (Brazil), Jordi Sellarés Serra (Spain), Louise Kantrow (ICC), Jorge Rubén Aguado (Argentina).

Following an exciting evening at USCIB’s award gala – where former President Bill Clinton helped honor Dow Chemical CEO Andrew Liveris, and where USCIB President and CEO Peter Robinson recognized them from the podium – the ICC delegates convened for a working lunch hosted by USCIB Chairman (and ICC Vice Chairman) Harold McGraw III, chairman and CEO of The McGraw-Hill Companies.  Discussion centered on the varying working conditions faced by ICC national committees in Latin America, resources available from ICC headquarters, and ways to coordinate action among national committees on important public policy matters, whether these be global, regional or in-country.

ICC representatives toured the renovations of the UN headquarters with UN Assistant Secretary General Michael Adlerstein (center), who is directing the work.
ICC representatives toured the renovations of the UN headquarters with UN Assistant Secretary General Michael Adlerstein (center), who is directing the work.

Then it was on the United Nations, where ICC’s permanent representative, Louise Kantrow, convened discussions with representatives from the UN Office for Partnerships as well as the Inter-American Development Bank.  ICC representatives also toured the major renovations currently underway at the UN Secretariat buildings and visited the 9/11 Memorial in lower Manhattan.

In their meetings at USCIB, which were chaired by Maria Fernanda Garza, vice chair of ICC Mexico, participants discussed a range of common concerns, including the nuts and bolts of national committee operations, use of communications and social media, ICC’s 2012 program of action, the work of ICC’s World Chambers Federation and ICC arbitration activities in the hemisphere.

Staff contact: Peter Robinson

Video interview with ICC Mexico’s Maria Fernanda Garza (at USCIB’s Award Gala – YouTube)

USCIB Welcomes Senate Passage of GSPTAA/Bill

New York, N.Y., September 23, 2011– Peter M. Robinson, president and CEO of the United States Council for International Business, issued the following statement regarding the Senate’s passage of the trade bill renewing the Generalized System of Preferences and Trade Adjustment Assistance:

“USCIB applauds the Senate’s passage of the GSP/TAA bill and is encouraged by bipartisan support for the measure.  We urge the House to act quickly on this legislation and the White House to move forward with submitting the Korea, Colombia and Panama Free Trade Agreements to Congress.  It is essential to the American business community that all necessary action on these trade bills is completed as soon as possible, to ensure that our companies can continue to compete and create jobs through expanded market access.”

About USCIB

USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and prudent regulation.  Its members include top U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world.  With a unique global network encompassing leading international business organizations, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment.  More at www.uscib.org.

From the President Supply Chain Challenges

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

Efficient and well managed supply chains are essential to corporate profitability and the health of the global economy.  Companies are doing a lot – and being asked to do a lot more– to ensure the integrity of their operations and those of their suppliers around the world.  Because of this, much of USCIB’s work in recent years has revolved around supply-chain concerns – customs practices, transport security, counterfeiting and piracy, labor and environmental concerns.

Most global companies have programs in place that set standards for suppliers and hold them accountable.  More and more companies are adopting supplier codes of conduct to fill the gap created by the failure of local governments to implement or enforce their own laws, including labor and human rights laws.

But pressure is growing for companies to push supply chain management efforts even farther beyond their present scope.

New initiatives would make producers responsible for addressing broad social ills that may exist at some point in their extensive global supply chains, including child labor, forced labor, human trafficking, and armed conflict.

Examples of this trend abound:

  • the California Transparency in Supply Chains Act, focused on slavery and human trafficking;
  • efforts to address forced child labor in cotton production in Uzbekistan;
  • similar efforts to address forced labor in Brazil
    in cattle ranching, sugar and charcoal production; and
  • the Dodd-Frank law, specifically Section 1502, which requires companies to disclose whether or not conflict minerals are used in their products.

The common element of all these challenges is that they are the result of systemic failures of governance or reflect pervasive social problems.  Our view is that a prescriptive approach does not address the underlying cause of the problem and therefore is doomed to failure.

USCIB has engaged companies and policy makers on the importance of maintaining high standards and improving performance throughout the supply chain.  We have:

  • organized a series of workshops hosted by The Coca-Cola Company on how companies address forced labor, child labor and human rights;
  • promoted awareness and support for the Better Work Campaign, an ILO/World Bank program to improve factory conditions in developing countries;
  • engaged with the OECD on its recent revisions to the OECD Guidelines for Multinational Enterprises;
  • contributed to OECD’s best practices for conflict minerals in the Congo region; and
  • spearheaded efforts to address the Uzbek cotton issue via the International Labor Organization’s disciplinary process.

Perhaps our deepest involvement has been in helping craft the 2011 UN Guiding Principles on Business and Human Rights.  The UN principles ask companies to respect human rights, starting with legal compliance, and institute a due diligence process to “know and show” that they do.  But the guidelines are also very clear in stating that companies cannot – and should not – assume the responsibilities of governments, and that suppliers are themselves responsible for complying with national law and respecting human rights.

USCIB played a strong and vocal role in developing the UN principles, which are a sensible and responsible alternative to the overreach of the Dodd-Frank law.  Policy makers should use the UN principles as a model for ensuring appropriate action by companies to keep their supply chains clean, while also maintaining pressure on local governments to live up to their fundamental responsibilities.

Mr. Robinson’s bio and contact information

Other recent postings from Mr. Robinson:

Opening the World for Business (Summer 2011)

The OECD at 50 (Spring 2011)

Dealing With State-Owned Enterprises (Winter 2010-2011)

Leadership’s Legacy, and Its Promise (Fall 2010)

Backing for Junior Chambers International Summit

The Jaycees’ international summit took place in New York in June.
The Jaycees’ international summit took place in New York in June.

Fresh from successfully organizing the 7th World Chambers Congress in Mexico City, USCIB’s affiliate the International Chamber of Commerce and its World Chamber Federation lent support to the annual summit of Junior Chamber International, a worldwide federation for entrepreneurs and professionals under the age of 40, last month in New York City.

The Jaycees summit highlighted how strategic partnerships can be implemented at the local level to build a better world and make advances towards the Millennium Development Goals – eight internationally agreed goals to alleviate poverty by 2015.

Speakers at the summit included USCIB President and CEO Peter Robinson.  Speaking at the summit opening plenary, entitled “Global Collaboration to Implement the UN MDGs,” Mr. Robinson underscored the power of businesses to positively impact the communities where they operate.

Also addressing the Jaycees was Aaron Nelson, president and CEO of the Chapel Hill-Carrboro (N.C.) Chamber of Commerce.  In a breakout session on sustainability, Mr. Nelson gave concrete examples of how the power of business can be harnessed to create positive change.

The summit concluded with a resolution to undertake sustainable projects that would advance the UN Millennium Development Goals in respective Junior Chamber International member communities.

Mr. Robinson’s remarks

JCI website

ICC website

Opening the World for Business

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

Many groups represent business in Washington and internationally, but few can match USCIB’s experience, geographic reach and credibility.

By Peter M. Robinson

People often ask me to explain how USCIB can help their company, and what distinguishes us from other business associations. Even our members sometimes ask us how best to articulate USCIB’s value to colleagues who are not as familiar with us.

USCIB does something no other business group does: we represent our members’ business interests around the world. We provide access and influence to regulatory bodies and policy makers at the national and international levels. We work to open markets, foster innovation and fair competition, and secure the free flow of information so our member companies can succeed wherever they do business.

Our role is essential because business is increasingly international. We understand that the success of our member companies increasingly depends on the ability to proactively shape the rules and regulations that will influence the way they do business in the years ahead.

Our approach is built upon our commitment to the core values of open markets, competitiveness and innovation, sustainable development and corporate responsibility. Those values support our key objectives of open trade and investment and job creation, in order to create a better world for our children. We see these values and objectives as best supported through international engagement and prudent regulation.

Many organizations represent U.S. business interests in Washington, D.C., and others do so internationally. But few, if any, can match USCIB’s experience and geographic reach, or the credibility we have earned in successfully advocating on behalf of members from all sectors and industries, in an increasingly complex global regulatory environment.

We could not do this without the global platform provided by our network of business affiliates – including the International Chamber of Commerce, the International Organization of Employers, and the Business and Industry Advisory Committee to the OECD. These groups open doors overseas, provide a “seat at the table” with key international bodies and allow us to rally foreign business opinion in support of our members’ views. Working through this unmatched network, USCIB is a proven, trusted and credible partner with foreign governments and international regulatory bodies at all levels.

The breadth of issues we cover is remarkable – ranging from climate change to Internet governance, from human rights to the conditions and rules affecting overseas investment, from tax policy to customs and trade facilitation, to name but a few. Our comprehensive policy agenda and our flexible structure give us a unique ability to work on cross-cutting and complex business issues.

Influencing policy and regulatory outcomes on a global scale requires proactivity and sustained commitment. USCIB’s consensus-based approach ensures that our views and positions represent the broadest possible range of companies across all affected industries. And our long-term outlook allows us to “see around corners,” effectively helping our members tackle tomorrow’s business challenges today.

Another thing that sets USCIB apart is our working relationship with organized labor and civil society groups. With the urgent need for job creation high on the international agenda, our work in the tripartite International Labor Organization, as well as in the OECD, where labor also has a voice, gives us a platform for pursuing shared interests in promoting growth and employment.

Finally, when distinguishing USCIB from other U.S. trade associations and business organizations, I emphasize that this not an either/or proposition. As a broad-based, globally engaged, consensus-driven and “outside the beltway” organization, we frequently complement and leverage positions taken by our member companies in their vertically oriented industry associations and other business groups. We also work collaboratively with these groups in numerous coalition efforts.

Think of us an “amplifier.” Where an industry’s policy positions in Washington touch international issues and fit with USCIB’s core values, we can help create a broad international consensus in support of these positions through our global platforms.

In a nutshell, USCIB’s mission is to open the world for American business. We welcome your support, and if you’re not already a member of USCIB, please consider joining. (Call 212.703.5064 or e-mail membership@uscib.org.) Working together, we can ensure business leadership and engagement in building a better, more prosperous world.

Other recent postings from Mr. Robinson:

The OECD at 50 (Spring 2011)

Dealing With State-Owned Enterprises (Winter 2010-2011)

Leadership’s Legacy, and Its Promise (Fall 2010)

Jobs Take Center Stage (Summer 2010)

From the President The OECD at 50

Bigger, more representative, and more critical than ever

 

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

A large part of USCIB’s value as a worldwide advocate for American business derives from its access to, and work with, key multilateral organizations. One of the most important of these is the Organization for Economic Cooperation and Development (OECD), the Paris-based institution that now encompasses 34 democratic market economies.

The OECD coordinates economic policies and compares performance among North America, Europe, Japan, Korea, Australia and New Zealand, as well as new members like Chile and Israel. Russia is applying for membership, and the organization works with major non-member economies like China and India through an “enhanced engagement” program. As the U.S. member of the OECD’s Business and Industry Advisory Committee (BIAC), USCIB and its members play a direct role in the organization’s work.

With its origins in the Marshall Plan following World War Two, the OECD celebrates its 5oth anniversary this year. On a beautiful spring evening in April, USCIB helped mark this milestone by organizing a high-level reception, hosted by the State Department in its prestigious Diplomatic Reception Rooms.

Within sight of the Capitol, the Washington Monument and the Lincoln Memorial, nearly 300 guests from business, government, labor and the diplomatic corps heard from Under Secretary of State Robert Hormats, OECD Secretary General Angel Gurría, U.S. Ambassador to the OECD Karen Kornbluh, and the chairmen of the OECD’s principle consultative groups – Charles Heeter of BIAC and Richard Trumka of the Trade Union Advisory Committee (TUAC). The gathering represented solid cross-sectoral support for the OECD. I capped off the remarks with a toast to the OECD’s next 50 years.

At USCIB’s April reception marking the OECD’s 50 anniversary, L-R: Under Secretary of State Robert Hormats, BIAC Chairman Charles Heeter (Deloitte), OECD Secretary General Angel Gurría, U.S. Ambassador to the OECD Karen Kornbluh, TUAC Chairman Richard Trumka (AFL-CIO), USCIB President and CEO Peter Robinson.
At USCIB’s April reception marking the OECD’s 50 anniversary, L-R: Under Secretary of State Robert Hormats, BIAC Chairman Charles Heeter (Deloitte), OECD Secretary General Angel Gurría, U.S. Ambassador to the OECD Karen Kornbluh, TUAC Chairman Richard Trumka (AFL-CIO), USCIB President and CEO Peter Robinson.

As Mr. Hormats noted in his remarks, the story of the Marshall Plan, and the OECD’s eventual creation, illustrates the importance of leadership and perseverance in international economic issues. After World War Two, President Truman recognized that his own unpopularity in the U.S. Congress might jeopardize the preeminently important goal of European reconstruction, and so he asked his secretary of state, General George Marshall, to lead this important initiative.

Even with General Marshal’s enormous prestige, it was not a given that the Congress would approve the package until the Soviets crushed an uprising in the occupied nation of Czechoslovakia, thereby making clear the potential costs of inaction.

Over the ensuing decades, European statesmen like Jean Monnet and Robert Schumann sought to strengthen the democracies of Western Europe, providing a beacon for the eventual liberation of Eastern and Central Europe from the Soviet yoke. Meanwhile, the OECD extended its vision to encompass nations from every region of the world, demonstrating how widely – indeed universally – held are the aspirations for freedom and betterment that originally bound its members together.

From the outset, consultative mechanisms for both business and labor have ensured that OECD policies are developed in close consultation with key economic actors and enjoyed broad support from the private sector. BIAC has grown along with the organization itself to encompass leading business and employers’ federations from all of the OECD nations, plus observer groups from key emerging markets and candidate countries.

A short list of American business priorities in the OECD includes: taxation, where the OECD plays a central role in coordinating tax policies among major hosts of American investment around the world; support for open markets, including the emerging issue of competitive neutrality for state-owned enterprises; the future of the Internet; and the OECD Guidelines for Multinational Enterprises, which are in the process of being updated and revised with strong business input. But the OECD’s work in fact permeates nearly all of USCIB’s policy activities.

In May, Secretary of State Hillary Clinton will co-chair this year’s OECD anniversary ministerial in Paris. We want to use the occasion of this important anniversary to remind all our members and friends of the guiding principles that brought the founders of the OECD together, and of the important work yet to be done. The OECD’s role is more critical than ever. Here’s to the next 50 years!

 

Other recent postings from Mr. Robinson:

Dealing With State-Owned Enterprises (Winter 2010-2011)

Leadership’s Legacy, and Its Promise (Fall 2010)

Jobs Take Center Stage (Summer 2010)

Reflections From Copenhagen (Spring 2010)

From the President: Dealing With State-Owned Enterprises

Winter 2010-2011

With multinationals going up against government-owned firms around the world, how can we ensure “competitive neutrality”?

By Peter M. Robinson

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

Around the world, companies face the challenge of competing with state-owned enterprises (SOEs), which are often favored by their governments in official policy and through less obvious means.  In China, for example, state-owned companies often enjoy preferential treatment in such areas as government procurement, subsidies, taxation, export financing, and the application and enforcement of regulations.

And it’s not just China – such practices are unfortunately still common in many countries.  This is problematic enough when the competition is on the SOE’s home turf.  But multinational firms are increasingly going up against SOEs in third markets, with governments sometimes lending strong support for bids.  In such circumstances, how can we ensure fair and equal treatment?

This is a high-priority issue for the U.S. government.  In addition, the 34-nation Organization for Economic Co-operation and Development is investigating the possibility of building upon its existing guidelines for governments on SOEs, which underscore the importance of “competitive neutrality.”  With many emerging nations increasingly drawn to models of “state capitalism” in the wake of the financial crisis, this work is taking on new urgency.

In December, we hosted an in-depth discussion of the challenge of SOEs with OECD Secretary General Angel Gurría and U.S. Under Secretary of State for Economic Affairs Robert Hormats.  The get-together provided a timely opportunity for USCIB members to voice their views and share intelligence on a topic not generally tackled by other industry groups.

Mr. Gurría drew attention to a recent report on investment protectionism from the OECD and the UN Conference on Trade and Development.  That report notes that, while barriers to cross-border investment worldwide have not increased in an overt manner, there are signs that countries are becoming more insular – by rejecting deals, by imposing capital controls and through regulations.

L-R: The OECD’s Angel Gurría, the State Department’s Robert Hormats, and BIAC Chairman Charles Heeter at a USCIB luncheon on state-owned enterprises.
L-R: The OECD’s Angel Gurría, the State Department’s Robert Hormats, and BIAC Chairman Charles Heeter at a USCIB luncheon on state-owned enterprises.

Recent OECD work has produced a stocktaking of concerns about competitive neutrality.  These include: available remedies to counter anti-competitive behavior; reasons why SOEs may operate on an uneven playing field; and discussion of the relevance of the existing OECD guidelines to ensure competitive neutrality in such cases.

At the meeting, USCIB members readily provided examples of how U.S. companies have been squeezed out of national markets, and specific deals, by state-owned enterprises, and encouraged enhanced attention to this issue in the OECD.

Mr. Hormats reiterated the importance of this problem to the U.S. government, saying it was moving faster than discussions of policies on how to deal with SOEs.  He welcomed the thoughts of members to press forward in the OECD and elsewhere to establish disciplines and raise awareness.

USCIB and our affiliate BIAC (Business and Industry Advisory Committee to the OECD) have urged that this subject be accorded higher priority on the OECD agenda – a point reiterated by USCIB members at our meeting with Messrs. Gurría and Hormats.

For example, we would like to see the OECD define competitive neutrality in detail.  Other options being considered include monitoring the implementation of the SOE guidelines, leading to peer review and best practices, and possibly inviting non-member countries to participate in further OECD work, including monitoring.

Such actions could help bridge a broad gap between the rules applied to the private sector and those applied to state-owned firms in many key markets.  Stay tuned.

Mr. Robinson’s bio and contact information

Other recent postings from Mr. Robinson:

Leadership’s Legacy, and Its Promise (Fall 2010)

Jobs Take Center Stage (Summer 2010)

Reflections From Copenhagen (Spring 2010)

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