Autumn 2009

Economic growth and environmental improvement are not mutually exclusive.

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)

Winter 2008/2009

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

By 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)

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

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)