New Book Explores Approaches to Lifelong Learning for the 21st Century

Meta-learning chartWhat kinds of competencies will be needed in a world where advanced technologies, including robotics and artificial intelligence, play an increasingly integral role in our workplaces and societies? A new book co-authored by Charles Fadel, founder of the Center for Curriculum Redesign, titled Four-Dimensional Education grapples with the challenges faced by today’s educators in preparing learners for the 21st-century economy.

In 2014, anticipating the present concerns, Fadel led a symposium on the impact of robotics and artificial intelligence in the workplace, organized by the USCIB Foundation in partnership with the McGraw Hill Financial Global Institute. Furthering the work of the Foundation on education, training and human capital requirements in the 21st century, the symposium gathered experts in technology, education and employment to explore how robotics and AI could impact the future jobs market. Fadel is the chair of the Education team of the Business and Industry Advisory Committee (BIAC) to the OECD education committee, and was formerly Global Education Lead at Cisco Systems.

The book explains that the education systems of the United States and many other advanced countries were designed with the needs of the 19th –and 20th century, with a largely industrial workforce, in mind. These systems are no longer adequate for addressing the needs of our modern, hyper-connected and digital economy. The book argues that in order to equip learners with the competencies they need for a more technologically advanced workplace, older curricula will need to evolve to new systems that foster Skills (such as creativity, critical thinking, communication and collaboration), and Character qualities (such as ethics, leadership, mindfulness, curiosity, courage and resilience) all of which will be needed to adapt in a faster-changing jobs market.

Four Dimensional Education brings a deeply cogent, synthetic, open-minded conversation to explore one of the key challenges to our society – how to transform our education systems to respond effectively to global 21st century needs and aspirations,” said USCIB President and CEO Peter Robinson. “USCIB has been privileged to be part of this conversation through a series of sponsored roundtables with the CCR bringing educators together with economists and business to bring new insights and perspectives to help students build the world we want.”

In an interview with USCIB, Fadel explained that educators will be stymied in their progress unless they revisit educational standards and assessments, including for those areas of knowledge that are more relevant today. For example, in the late 1800s educators began teaching trigonometry because the economy demanded more wood workers and land surveyors. Today, there is demand for “big data” – statistics and probability, and algorithmics. Fadel stressed the need for teaching branches of mathematics that are underrepresented in current curricula, such as Game theory, and algorithmics.

Additionally, he said new disciplines are needed, such as robotics and coding: “We talk about STEM – science, technology, engineering and math – but we only teach the ‘S’ and the ‘M,’ parts. What about Technology and Engineering?  And beyond STEM, what about entrepreneurship, wellness, etc? It is not about STEM or Humanities/Arts, it is STEM and Humanities/Arts. All these disciplines matter.”

The “social pain” of innovation

Fadel then noted that over time technology zooms ahead of education, which leads to instances of social pain, usually followed by an educational response. After the industrial revolution, policymakers responded with mass schooling, which helped a large number of mostly illiterate people, farmers and artisans become factory-ready. Once our educational systems caught up with advances in technology, prosperity ensued.

“Well, the digital revolution is doing the same now at an accelerated rate, where you have a lot of jobs that can be off-shored or automated due to technology,” Fadel said. “So we have to catch up and adapt, even faster than we did for the industrial revolution.”

When asked what the education system of the future should look like, Fadel remarked that students will still need a broad knowledge base that they can tap throughout their life as they move from one specialization to another: “When you’re a young kid, you’re going to learn how to read, write and compute – there’s no deviation. But when you’re an adult, you choose your pathway to stay current. So what we’re trying to cultivate is what IBM has been calling a ‘T-shaped individual,’ where you’re broad through your education and deep through your specialization, and if you expand that it’s an M-shaped model where you add specializations as you go through your career, drawing from that breadth that you’ve acquired in your younger years, and staying current.”

Many societal actors have a role to play in fostering new 21st-century education systems, including governments, parents and corporations. Fadel argued that governments should broaden how they measure and assess students’ capabilities similar to how corporations judge potential job applicants or existing employees, whereby employers examine not just knowledge but also character and skills. He then noted that parents have a role to play by advocating for changing what gets taught in schools, rather than applying pressure on overburdened teachers. And finally, corporations can help by being clearer about exactly what kinds of knowledge, skills, and character qualities they value in future employees.

“I’d love to see corporations be more systematic about their requests for change both in clarity of needs, and stamina,” Fadel concluded. “They seem to come in and out; they get distracted by their own strategic imperatives. It’s hard for corporations to have a steady hand year after year because they have their own dynamics, yet that’s what’s required – a steady hand and a steady set of requirements that’s adaptive to a rapidly changing world.”

BIAC Calls for More Resilient, Flexible and Inclusive Labor Markets

Two machinists working on machineAt the OECD’s Employment Ministerial, the Business and Industry Advisory Committee (BIAC) to the OECD called for more resilient and inclusive labor markets.

More than ever, current labor market challenges require a policy that promotes resilience and flexibility. All parties are tested: companies to find appropriately trained and mobile workforces, workers to develop skills relevant to the labor market, and policymakers to provide for employment and social policy frameworks that encourage access for all, placing employment security over job security. The OECD’s goal should be to give guidance on ways to create more resilient and adaptable labor markets and jobs, within the context of the over-riding goal of enhancing productivity.

“The focus on employment security should serve to improve the resilience of the entire labor force and also facilitate the ability of workers to successfully progress among or between jobs”, said Ronnie Goldberg, chair of the BIAC Employment, Labor and Social Affairs Committee and senior counsel at USCIB.

The digitization of our economies should be seen not as a threat but as an opportunity. At the Ministerial, BIAC emphasized the importance of ongoing OECD work on skills and technology. Technological and structural changes inevitably result in labor market disruption. Flexibility-enhancing policies, together with those promoting life-long learning and development of strategic skills, are necessary to address these disruptions and raise aggregate employment levels.

BIAC also highlighted the importance to business of the current refugee crisis facing many OECD countries, and of labor migration in general. The business community is willing and able to assist governments in more swiftly processing and integrating refugees, for example by helping with skills assessment and recognition. At the same time, governments need to establish clear, transparent and efficient national immigration laws with policies that facilitate labor mobility, and allow the integration of migrants to meet labor market needs.

“Companies are well aware of the magnitude of the current challenge facing governments and local communities,” said Goldberg. “We have a wealth of on the ground experience and knowledge that can be brought to bear, and would welcome the opportunity to be at the table with policymakers.”

OECD Publishes 2014 Official Development Assistance Figures

The OECD recently published its final official development assistance (ODA) figures for 2014. According to the findings, in 2014, final figures for net ODA flows from OECD Development Assistance Committee (DAC) member countries totaled $137.2 billion, marking an increase of 1.2 percent in real terms over 2013 and surpassing the all-time high in 2013.

In the past 15 years, net ODA has been rising steadily and has increased by nearly 70 percent since 2000. The largest DAC donor countries by volume were the United States, the United Kingdom, Germany, France and Japan.  Denmark, Luxembourg, Norway, Sweden and the United Kingdom continued to exceed the United Nations’ ODA target of 0.7 percent of gross national income.

Global DevelopmentAlthough net ODA has been increasing over time, estimates by the United Nations show that the needs for financing the Sustainable Development Goals (SDGs) will $4 trillion. USCIB has noted that ODA cannot do the job of development finance by itself. In order to move from the “billions to trillions” in development finance, policymakers will need to catalyze more private investment, especially in least developed countries.

More information about the evolving role of ODA and the rise of blended finance is available at USCIB’s Business for 2030 web portal about private sector engagement with the UN SDGs.

President Obama: “Spirit of the OECD Can Guide Us” on Climate Change

L-R: President Barack Obama and OECD Secretary General Angel Gurria (Photo credit: OECD)
L-R: President Barack Obama and OECD Secretary General Angel Gurria (Photo credit: OECD)

President Barack Obama visited the Organization for Economic Cooperation and Development (OECD) on December 1 during his visit to Paris for the United Nations climate talks (COP21). Obama acknowledged the OECD’s position as a key actor in the global economy, and showed appreciation for the organization’s international comparative analysis, including work on taxes, gender and anti-corruption.

During a press conference at OECD headquarters, just seven miles from where climate negotiations took place at Le Bourget, Obama delivered a powerful message on the need to reach an ambitious agreement at COP21, and he expressed the United States’s support on that score. Obama then signed the livre d’or of the OECD with the following statement:

To the leaders and staff of the OECD – as the world gathers to meet the challenges of climate change, the spirit of the OECD can guide us. 

May our nations come together in cooperation and peace to protect our planet and improve the lives of our people.”

– Barack Obama

In addition to Obama, several other heads of state came through the OECD during  COP21, in which many directorates held well-attended side events at the OECD’s dedicated space.

 

Curbing Corruption and Providing a Level Playing Field for International Business

Eva Hampl (USCIB)

Corruption is a major obstacle to economic and social development around the world and adds considerable risk to doing business globally. On the occasion of the International Anti-Corruption Day this week, the Business and Industry Advisory Committee to the OECD (BIAC) organized a roundtable with the OECD Working Group on Bribery, calling for close private sector involvement in an ambitious OECD strategy to fight corruption and bribery.

“BIAC considers the OECD a key organization in the fight against bribery and corruption”, said Klaus Moosmayer of Siemens, chair of the BIAC Task Force on Anti-Corruption/Bribery. “Close public-private cooperation is essential to effectively curb corruption and provide a real level playing field for international business.”

The roundtable focused on two major topics where in BIAC’s opinion the OECD can play a key role:

(1) Addressing the demand side of bribery to help establish the necessary confidence for the business community, recognizing that solicitation poses a serious challenge for firms and discourages them from investing in countries where bribe demands are frequent, and

(2) Helping governments put in place a framework that incentivizes companies to build robust compliance programs and to self-report compliance breaches. If companies can be given legal certainty of not being punished for their cooperation, this can lead to major improvements in the fight against corruption.

Eva Hampl, USCIB’s director for investment, trade and financial services participated in the roundtable and spoke about the need to increase transparency and encourage companies to self-report instances of bribery.

BIAC calls upon the OECD and its members to forcefully engage themselves and foster international cooperation in these areas, working closely with the private sector.

ICC and BIAC Families and Staff Safe After Terrorists Attack Paris

Paris_peaceUSCIB is relieved to report that all Paris-based staff and their families at the International Chamber of Commerce and at the Business and Industry Advisory Committee to the OECD are safe and no USCIB staff were in the city at the time of the attacks.

Our thoughts and prayers are with the victims and families affected by the horrific series of attacks that took place in Paris last Friday and we echo what John Danilovich, ICC’s secretary general wrote on Friday, “We are united in our profound sadness and grief following the attacks.”

On Monday at the OECD and BIAC, staff observed a minute of silence for the victims and their families and friends. “It is important for us to know that we all stand together in these difficult times,” said Bernard Welschke, BIAC secretary general, in a note to members on Monday.

Francois Georges, secretary general of ICC France responded to USCIB President Peter Robinson’s note of concern with “Such a dramatic tragedy and event gives a lot of sense to ICC Founders’ message when they called themselves ‘Merchants of Peace’. It is more than ever relevant.”

ICC’s Banking Commission meetings that were originally scheduled for this week have been cancelled. At the time we posted this story, all the United Nations COP21 meetings are still scheduled to take place in Paris from November 30 to December 11.

Our hearts are with Paris in these difficult times.

USCIB Weighs in on Future of Trade at OECD Global Trade Forum

Mulligan_trade_forum_copy
L-R: Joakim Reiter (UNCTAD) and Rob Mulligan (USCIB)

The Organization for Economic Cooperation and Development (OECD) held its global trade forum on November 3 in Paris, convening representatives from government, business and the OECD for a discussion on the prospects of future trade flows and the impact of government policy on economic growth.

Rob Mulligan, USCIB’s senior vice president for policy and government affairs, spoke on a panel at the global trade forum about alternative approaches to trade policies. He and other panelists discussed which polices will ensure that trade and investment continue to lead to growth and jobs. Other speakers on Mulligan’s panel included Ambassador Jonathan Fried, Canada’s representative to the World Trade Organization and Joakim Reiter, deputy secretary general of the United Nations Conference on Trade and Development (UNCTAD).

The day-long trade forum sought to take stock of changing global trade patterns and determine what can be done about the recent slowdown in trade growth. At the multilateral level, WTO negotiations remain stalled, while countries focus on regional and plurilateral initiatives to open markets among a smaller number of interested economies. The advent of the major emerging economies, as well as global value chains which have fragmented production around the world, have also contributed to dramatic shifts in trade patterns in recent decades.

Speaking on behalf of the Business and Industry Advisory Committee (BIAC) to the OECD and of USCIB member companies, Mulligan gave a business perspective on the future of trade.

“It is critical for governments to keep in mind the need for businesses to be adjusting, and often very quickly, in order to stay competitive and grow,” Mulligan said. “Government policies can have a significant impact on the moves by business positively or negatively.”

He explained that international companies have built global value chains to establish a framework for accessing foreign markets in a flexible and cost-efficient way. When constructing these global networks, companies consider a range of factors such as the potential market for their products, rule of law, strong infrastructure, skilled workforce and localization rules, and it is important for governments to understand how these factors drive the way companies pursue global markets.

Mulligan suggested that the same principles that the business community has advocated in the past will still apply in the future. Government should avoid unnecessary regulation, and when it is necessary, it should be designed as the least trade-restrictive approach that accomplishes the policy objective. He also stressed that governments should coordinate with each other to ensure that regulations are consistent across countries, as coherent regulatory regimes make it easier for companies to grow and create jobs.

USCIB Members Celebrate BIAC Business Day at the OECD

Rick Johnston (Citigroup), second row, fourth from left.
Rick Johnston (Citigroup), second row, fourth from left, joins other BIAC members at the annual Business Day at the OECD.

On October 28 and 29, member organizations celebrated the annual Business and Industry Advisory Committee to the OECD (BIAC) Business Day at the OECD headquarters in Paris. Business Day is the traditional reunion of the BIAC business community, featuring several speakers from the OECD leadership and the BIAC policy groups, including Rick Johnston (Citigroup), chair of USCIB’s Trade and Investment Committee and executive board vice chair of BIAC.

OECD Chief Economist Catherine L. Mann and Chief Statistician Martine Durand spoke about the global economic outlook and the concept of well-being in our societies. OECD Secretary General Angel Gurria gave an account of current OECD priorities, including the importance of an enabling investment and regulatory environment.

“Across the presentations on investment, trade, international taxation, environment, innovation, regulatory policy and health, it was clear that the private sector’s engagement is key for more sustainable growth and productivity,” said Bernard Welschke, secretary general of BIAC. “We take this Business Day and the good feedback from the OECD and participants as an encouragement for the many activities ahead.”

USCIB members that attended BIAC Business Day included Arkema Group, Deloitte, Exxon Mobil, Johnson Controls, McDonald’s, Qualcomm and many more.

 

Business Commends the OECD, G20 on the 2015 BEPS Package

The Organization for Economic Cooperation and Development (OECD) released its long-awaited 2015 BEPS recommendations on October 5, concluding the two-year Base-Erosion and Profit Shifting (BEPS) project designed to rewrite global tax rules.

“The BEPS project needed to happen, and the OECD and G20 should be congratulated both for their hard work and for achieving high-level consensus across many issues,” said Will Morris, chair of the tax committee of the Business and Industry Advisory Committee (BIAC) to the OECD. “Moreover this high-level consensus was achieved while working to an exceptionally ambitious timetable.”

Morris added that the business community still has concerns that some of the BEPS recommendations may lead to double taxation of income, and “many important details remain to be worked out.”

For many years, the OECD has successfully promoted cross-border trade and investment by removing barriers – including significant tax barriers – to growth.  The task of the last two years has been to respond to legitimate public concern about double non-taxation.  In spite of the reservations raised, BIAC acknowledged that the BEPS process and the recommendations released today appropriately respond to those concerns.

Carol Doran Klein, USCIB’s vice president and international tax counsel, has worked closely with members, the U.S. government, BIAC and the OECD secretariat throughout the BEPS process.

In a statement released today about the 2015 BEPS package, BIAC noted two recent develops:

  • The growing acceptance among countries that mechanisms for resolving tax disputes need to be significantly improved: changes to the treaty-based Mutual Agreement Procedure will be important, but the moves of some key countries towards Mandatory Binding Arbitration will bring even more substantial benefits, as the risk of double taxation would be greatly reduced.
  • A potential monitoring mechanism on implementation of the BEPS recommendations to be overseen by the OECD: BIAC believes this is an important development that can help to ensure consistent application of the BEPS recommendations by countries, and we hope that business will be able to play a significant and constructive role in this monitoring process.

BIAC also welcomed the intention of G20 countries to remain part of this process for the foreseeable future, and we appreciate the commitment to ensure that the distinctive needs of developing countries will be also appropriately addressed.

The International Chamber of Commerce also released a statement today welcoming the conclusion of the BEPS project but underscoring significant implementation challenges in the near future.

 

BIAC-B20 Event: Financing SMEs in Global Markets

Charles R. Johnston, chair of USCIB's Trade and Investment Committee and Vice Chair of BIAC
Charles R. Johnston, chair of USCIB’s Trade and Investment Committee and Vice Chair of BIAC

Conscious of the financing challenge facing small- and medium-sized enterprises (SMEs) and the consequences for growth and investment, the Business and Industry Advisory Committee to the OECD (BIAC) and B20 Turkey hosted a special event on Business Access to Global Value Chains and Financing SMEs on June 4, 2015 at the OECD Headquarters in Paris. Participants included senior representatives from SME associations, financial firms, multinational companies, governments, international organizations, and business federations. The event sought to pave the way for actions to support SMEs in global value chains (GVCs), in contribution to the G20 Leaders’ Summit in November 2015.

As national economies endure the slowest post-crisis global investment recovery since the early 1970s, there is a pressing need to unlock growth, investment and jobs. More must be done to enable businesses to serve their clients through GVCs, which form the centerpiece of world trade and investment, and thereby enhance companies’ competitiveness, productivity, and propensity to invest.

However, SMEs – which account for about 60 to 70 percent of employment and over 50 percent of value-added in OECD countries – have struggled to access the financing they require to participate in and across world markets, as banks have deleveraged to meet new regulatory requirements.

Following the event, BIAC and B20 Turkey released a publication to convey key priorities to the G20 agenda in 2015. It presents a compilation of chapters by prominent thinkers on the financing of SMEs in GVCs, and draws upon the discussions held at the special event held on June 4. The final chapter of the publication presents three overarching recommendations to G20 Leaders:

  1. Focus on coordination, consultation and impact assessment
  2. Raise SME access to finance and skills through an integrated approach
  3. Maximize the sharing of information through digital platforms

The publication is intended to serve as a key point of reference in preparing the G20 Leaders’ Summit Communiqué in 2015. The publication is below for your perusal.

BIAC and B20 give appreciation to the following co-sponsors of the event and report: Lloyds Banking Group, Toronto-Dominion Bank Group, the Association of Chartered Certified Accountants (ACCA), the SME Finance Forum, and Willis Ltd.