Future of Work Forum and OECD Employment Ministerial

worker_femaleThe future of work and the digitization of jobs bring new challenges to the frontier of policy dialogue with business stakeholders. Innovation and integration of digital tools and processes have brought forth new business models, evolving employment contracts and changing demands for skills at the workplace. The impact of this progress is a demanding area of interest for businesses and the policy community.

At the OECD Future of Work Forum and the Employment Ministerial that took place in January in Paris, stakeholders and leaders from the business community, the public sector and academia convened to discuss ways to foster and adapt employment in the changing nature of the digital economy while encouraging inclusive growth. The Business and Industry Advisory Committee (BIAC) to the OECD was represented at each of the high level panels of the Future of Work Forum, and a strong BIAC delegation led by Chair Ronnie Goldberg, USCIB senior counsel, contributed business views on labor markets and the digital economy in the Employment Ministerial. BIAC’s call for more comprehensive and targeted education policies and the necessary flexibility in labor markets was well received.

IBM: Maritime Piracy Hotspots Persist Worldwide

Piracy and armed robbery on the world’s seas is persisting at levels close to those in 2014, despite reductions in the number of ships hijacked and crew captured, the International Chamber of Commerce (ICC) International Maritime Bureau’s (IMB) annual piracy report reveals.

IMB’s Piracy Reporting Centre recorded 246 incidents in 2015, one more than in 2014. The number of vessels boarded rose 11 percent to 203, one ship was fired at, and a further 27 attacks were thwarted. Armed with guns or knives, pirates killed one seafarer and injured at least 14. Kidnappings – where crew are taken away and held for ransom – doubled from nine in 2014 to 19 in 2015, all the result of five attacks off Nigeria.

A total of 15 vessels were hijacked in 2015, down from 21 in 2014, while 271 hostages were held on their ships, compared with 442 in 2014. No hijackings were reported in the last quarter of 2015. IMB says one key factor in this recent global reduction was the drop in attacks against small fuel tankers around South East Asia’s coasts, the last of which occurred in August 2015.

SE Asian gangs

“IMB particularly commends the robust actions taken by the Indonesian and Malaysian authorities in the arrest and prosecution of two gangs that hijacked tankers. We also applaud the subsequent arrest of some of the alleged masterminds,” said Pottengal Mukundan, director of IMB, which has monitored world piracy since 1991.

However Mukundan urged shipmasters to maintain strict anti-piracy and robbery watches. South East Asia still accounts for most of the world’s incidents. Almost 55 percent of the region’s attacks were against vessels underway compared to 37 percent in 2014. Most were aimed at low-level theft. IMB cites this rise on moving vessels as a cause for concern as it increases potential risks to the vessels and their crew.

The IMB continues to work closely with the Indonesian Marine Police and other Indonesian authorities to monitor high-risk areas. Thefts are down in the majority of the 11 designated anchorages with only Belawan and Nipah recording marked increases in attempted thefts, reporting 15 and 26 incidents respectively in 2015.

Nigeria: oil and kidnappings

Nigeria is a hotspot for violent piracy and armed robbery. Though many attacks are believed to go unrecorded, IMB received reports of 14 incidents, with nine vessels boarded. In the first of these, ten pirates armed with AK47 rifles boarded and hijacked a tanker and took all nine crewmembers hostage. They then transferred the fuel oil cargo into another vessel, which was taken away by two of the attackers. The Ghanaian navy dispatched a naval vessel to investigate as the tanker moved into its waters, then arrested the pirates on board.

Somalia still risky

No Somali-based attacks were reported in 2015. Following a new 55 percent reduction in the industry-defined High Risk Area, IMB warns vessels transiting the Gulf of Aden and Indian Ocean to stay particularly vigilant.

“Somalia remains a fragile state, and the potential for an attack remains high. It will only take one successful hijacking to undo all that has been done, and rekindle this criminal activity,” Mukundan explained.

Elsewhere…

Incidents in Vietnam surged from seven in 2014 to 27 in 2015. The main cause is low-level theft against vessels anchored in Vietnam, with 15 reports from around the port of Vung Tau alone.

In China four incidents were recorded in December 2015, the first in a long time. These include three thefts of bunker diesel oil from large bulk carriers off Tianjin, and one failed attempt to do the same.

Meanwhile, low-level incidents in Bangladesh dropped to 11 in 2015, from 21 in 2014.

USCIB Hails Signing of TPP in New Zealand

Harbor_tradeNew York, N.Y., February 3, 2016 – Welcoming a milestone on the road leading to the ratification of the Trans-Pacific Partnership (TPP), USCIB hailed the signing of the agreement by 12 countries in Auckland, New Zealand today (February 4 local time). TPP is a historic market-opening free trade agreement whose Pacific-Rim members represent 40 percent of global GDP.

“The signing is an important next step, since TPP will increase American export opportunities, support U.S. jobs, and advance security and rule of law across the Asia Pacific region,” said USCIB President and CEO Peter Robinson. “We applaud the U.S. government and our TPP partners for moving forward on an agreement that will create so many benefits for workers, families and businesses.”

Robinson noted that hard work still remains, with the ratification of the agreement by Congress and other national governments. USCIB is committed to working with the Obama administration, Congress and its members to ensure that TPP becomes law.

USCIB is a leading member of the U.S. Coalition for TPP, a broad-based group of American companies and associations representing all sectors of the U.S. economy. The Coalition issued a statement in support of TPP in January.

About USCIB:
USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and regulatory coherence. Its members include 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 ICC, the International Organization of Employers, and the Business and Industry Advisory Committee to the OECD – USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. www.uscib.org.

Contact:
Jonathan Huneke, USCIB
+1 212.703.5043, jhuneke@uscib.org

More on USCIB’s Trade and Investment Committee

USCIB Supports Conclusion of “EU-US Privacy Shield”

us_eu_flags_3New York, N.Y., February 2, 2016 – The United States Council for International Business (USCIB) commends the tireless and concerted efforts of negotiators from the European Union and the United States for achieving agreement on a new framework governing transatlantic data transfers, the “EU-U.S. Privacy Shield.”

“While providing strengthened privacy protections, this agreement will promote legal certainty and consumer confidence for transatlantic data flows, thereby fostering new projects, investments and provision of services that increase economic and societal benefits,” said USCIB President and CEO Peter Robinson.

USCIB supports efforts by all parties involved to finalize and implement the new Privacy Shield in a timely manner. Earlier today, the International Chamber of Commerce (ICC), of which USCIB is the U.S. affiliate, issued a statement in support of the EU-U.S. privacy shield.

About USCIB:
USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and regulatory coherence. Its members include 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 ICC, the International Organization of Employers, and the Business and Industry Advisory Committee to the OECD – USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. www.uscib.org.

Contact:
Jonathan Huneke, USCIB
+1 212.703.5043, jhuneke@uscib.org

More on USCIB’s ICT Committee

USCIB Highlights How OECD Work is Used by Business

OECD_WashingtonThe Organization for Economic Cooperation and Development (OECD) produces domestic policy tools for governments by setting benchmarks, comparing progress and pointing out best practices. On January 29, the OECD Washington Center hosted a special 2016 kickoff event that reviewed how governments and other stakeholders including business take advantage of the OECD’s many resources.

At the event, Rob Mulligan, USCIB senior vice president for policy and government affairs, presented the views of USCIB as the U.S. affiliate to Business and Industry Advisory Committee (BIAC), which is the official voice of business at the OECD.

Mulligan cited several examples of OECD work products that have had significant impacts on government policies of interest to business, including the Policy Framework for Investment, the AntiBribery Convention, the Trade in Value Added database, the Data Privacy Guidelines, and the Services Trade Restrictiveness Index. These are just a few of the many OECD products that are used by OECD and non-OECD governments in developing national laws and regulations affecting investment and business activities.

A summary of this and other activities undertaken by USCIB staff can be found in the most recent edition of Washington Update.

OECD and UNHCR Call for Scaling up Integration Policies in Favor of Refugees

ImmigrationThe integration of refugees in local economies has become more challenging as the refugee crisis continues to have a significant impact on local labor markets. Businesses have asked for orderly, transparent, efficient and well-thought immigration programs and have demonstrated a willingness to participate in deep discussions with their governments on how to contribute.

At the high-level conference with the OECD and the UN High Commissioner for Refugees Filippo Grandi on January 28, the BIAC delegation, headed by Secretary General Bernhard Welschke, called for advances in national level skills recognition, language training and targeted labor market programs to support the integration of beneficiaries of international protection and other forms of migrants into the local labor markets.

The OECD and UNHCR stressed not only the moral imperative but also the clear economic incentive to help the millions of refugees living in OECD countries to develop the skills they need to work productively and safely in the jobs of tomorrow.

“Far from a problem, refugees can and should be part of the solution to many of the challenges our societies confront,” said Gurría.

The OECD also released a report, Making Integration Work: Refugees and others in need of protection, which provides the main lessons from the experience of OECD countries in fostering the integration of refugees. The report highlights many good practices to tackle key barriers and support lasting integration of refugees and their children. It stresses the importance of early intervention, including providing access to language courses, employment programs and integration services as soon as possible, including for asylum seekers with high prospects to remain. It also stresses the need to help migrants settle where jobs are and not necessarily where housing is cheaper. The report also underlines the need to adapt integration programs to reflect migrants’ diversity in terms of skills and  the specific needs of refugees.

ICC Academy: 2016 Supply Chain Finance Summit

supply_chain_summit

The ICC Academy invites you to join us for the upcoming Supply Chain Financing Summit, which will take place in Singapore on March 9 and 10.

The summit will welcome 150 trade finance experts from all over the world and will provide an opportunity for thoughtful deliberation, practical action and high-value networking.

A key feature of the summit will be the release of new internationally-standardized definitions for techniques of supply chain finance endorsed by the ICC Academy, facilitated by the ICC Banking Commission and jointly produced with key global industry associations.

Register before February 5 2016 to take advantage of the early bird rate.

Topics will include:

  • Evolution of Global Trade Hubs
  • Trends in Supply Chain Financing and alternative models
  • FinTech Innovations
  • China Market Updates, New Normal
  • ICC/SCF Terminology
  • Conversation with Market Leaders

Read the full program here.

IOE President Targets 5 Key Inhibitors of Labor Markets at B20 Kickoff

labor_and_employmentSpeaking at the B20 kick off meeting in Beijing on January 26, International Organization of Employers (IOE) President Daniel Funes de Rioja targeted the five key inhibitors of flexible labor markets and optimal labor market participation.

With employment already earmarked by the Chinese G20 presidency as a prime area of focus, Funes wasted no time in setting out the expectations of business: “I want the G20 to make ambitious commitments on the headline aim of Energetic Labor Markets and Adaptable Workforces.”

He set out five key actions for the G20 leaders to optimize labor market participation:

  • Remove barriers to starting, operating and growing a business.
  • Create easy-to-understand, employment-friendly labor law.
  • Promote the variety of forms of employment needed to allow companies maximum opportunities to hire as many people as possible.
  • Decrease the burden of non-wage labor costs – in many cases an obstacle to employing people.
  • Create attractive regulatory framework conditions that stimulate the establishment of apprenticeships systems.

Funes went on to recall the recent IOE-BIAC-Deloitte survey on youth employment in G20 countries, launched just six weeks ago in Ankara, which found that 80 percent of respondents believed that the current regulatory framework for the establishment and operation of enterprises was “more cumbersome than supportive.” The IOE President cautioned that with such framework conditions in place, bringing more people into employment remained a pipe dream.

On top of the required action above, Funes also called for more transparency and accountability in the G20 employment process. The G20 national employment plans could, he acknowledged, play “a decisive role”, but their potential had not been fully exploited to date. The G20, with the support of business, needed to ask themselves:

  • Are the employment plans concrete and ambitious enough?
  • Is implementation of the employment plans sufficient?
  • What are the lessons learned from the last two years?

Summing up, Funes said that the B20 called on the Chinese G20 presidency to refocus the employment process on job creation and growth, and to strengthen the implementation of employment commitments through more rigorous and robust assessment of the employment plans in place across the G20.

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.”

ICC Scorecard Flags Missed G20 Opportunities

2016 ICC G20 Business Score CardThe International Chamber of Commerce (ICC) unveiled its fifth annual ICC G20 Business Scorecard, which rates G20 responsiveness to key business policy priorities. The Scorecard shows G20 progress on a number of international business priorities but reveals some important missed opportunities to advance trade and international investment policy frameworks.

“We published the Scorecard to help the G20 gauge progress and identify areas that merit greater attention. This edition finds that the G20 is making progress on the B20 recommendations that will lead to economic growth and job creation,” said ICC and USCIB Chairman Terry McGraw as he presented the latest edition of the ICC G20 Business Scorecard on January 26 in a keynote speech to the Business-20 (B20) China kick-off event in Beijing. “It is critical that G20 leaders, with support from business, unite to exercise stronger leadership in tackling the world’s economic policy challenges, particularly on trade, investment and the environment.”

The ICC Scorecard is a valuable mechanism for global business to evaluate the G20’s responsiveness to B20 policy recommendations. The fifth edition examines a total of 25 business priorities developed during the 2015 Turkish B20 cycle and rates G20 responsiveness across seven policy areas. This year’s score of 2.0 out of 3.0, translates to an assessment of “Fair.”

“The score is a slight decrease from the Brisbane and St. Petersburg Summits’ scores of 2.1 reflecting our disappointment in G20 leadership on the trade agenda,” said ICC Secretary General John Danilovich.

The Scorecard suggests that passive wording used in the Antalya Communiqué amounted to a missed opportunity to amplify both the urgency of advancing the WTO Trade Facilitation Agreement (TFA) to implementation and the importance of TFA progress to adding $1 trillion to global GDP and 18 million jobs, primarily in emerging markets.

“The G20 should have rallied endorsement for the TFA in the run-up to the WTO ministerial in Nairobi,” said McGraw. “We need 108 countries to ratify the TFA and we still have 10 G20 countries that haven’t. We must get this done.”

Can do better on investment

G20 action on investment and infrastructure yielded a score of only 1.3 out of 3.0. While this demonstrates some progress on the infrastructure investment agenda launched at the 2013 St. Petersburg Summit, the Scorecard notes that G20 leaders have not responded to a growing chorus calling for G20 leadership on international investment governance.

“The country-specific investment strategies endorsed by leaders in Antalya are the type of concrete actions we need to see from the G20,” said Jeffrey Hardy, director of the ICC G20 CEO Advisory Group. “But we also need them to set national targets on infrastructure spending, as a percentage of GDP, and to agree overarching national strategies for credible infrastructure pipelines.”

According to Scorecard ratings the G20 also failed to address B20 calls for leadership on international investment governance, including a B20 recommendation for a model investment framework.

“This was a missed opportunity for the G20 to demonstrate leadership on rationalizing the current patchwork of bilateral and regional investment rules,” said Hardy.

A promising start on SMEs

Reflecting the emphasis on SME growth as a priority during Turkey’s G20 Presidency, G20 commitments to SMEs scored 2.0 out of 3.0 – with high marks for secured for official G20 recognition of the new World SME Forum (WSF), a groundbreaking initiative to unlock the potential of SMEs worldwide. Co-founded by ICC and launched during the Antalya Summit, the WSF will be an enduring legacy of Turkey’s G20 Presidency.

While acknowledging a concrete commitment by G20 leaders to reduce the proportion of young people most at risk of being left permanently behind in the labor market, the Scorecard signals that implementation will require comprehensive reform and modernization of national and vocational education and training systems along with the creation of open and dynamic labor markets.

“It is disappointing that G20 ministers failed again under the Turkish Presidency to address key issues around bringing more people into employment,” said Daniel Funes de Rioja, president of the International Organization of Employers (IOE). “It’s not enough for the G20 employment process to take the line of least resistance; the difficult tasks need to be tackled. Business stands ready to support G20 Governments in this endeavor.”

Much improvement on environment and energy

The Energy and Environment score of 2.2 out of 3.0 is a significant increase over last year’s score of 1.2 and the highest since ICC began monitoring. The increase is the result of a heightened focus on energy and climate change in the Antalya Leader’s Communiqué, coupled with the first G20 Energy Ministers Meeting on October – both indicating that energy and climate issues are gaining greater traction in G20 deliberation at leader level.

“ICC is pleased that the G20 has recognized several of the business priorities outlined in 2015,” said Hardy. “The Antalya Communiqué included unprecedented strong language on climate change, stating and that it was ‘one of the greatest challenges of our time.’ The G20’s Antalya commitments held firm and helped secure the historic global climate agreement reached in Paris in December.”

Delivering on anti-corruption

The Scorecard also reflected good G20 progress on Anti-Corruption, which received a score of 2.3 out of 3.0. The score is acknowledgement of the ongoing partnership between the B20 and the G20 Anti-corruption working Group (ACWG), with several commitments and deliverables in the 2015-2016 G20 Anti-Corruption Action Plan aligned to B20 recommendations. The ACWG is by far the most inclusive of all official G20 working arrangements, with B20 representatives routinely invited to participate in ACWG meetings and to submit suggestions to the ongoing G20 anti-corruption agenda.

“It is encouraging that the G20 continues to demonstrate leadership in denouncing corrupt practices, including the delivery and publication in Antalya of national implementation plans on beneficial ownership transparency,” said Danilovich. “This is an important area of focus for the G20 and presents a significant boon to the global effort to increase transparency and deter corruption. However, one year after Brisbane, there are still gaps between the G20’s own principles and the current state of regulation in several G20 countries.”

The full G20 Business Scorecard is available here.