Competitiveness and Innovation Archives

Curbing Corruption and Providing a Level Playing Field for International Business

Published on December 10, 2015
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 Launches Principles to Support Innovation

Published on December 2, 2015

inno_sourceThe International Chamber of Commerce (ICC) has launched a new set of principles to support the development of policy frameworks that enable innovation, especially in high-technology industries.

The principles – which  promote policies that support innovation as a key driver of economic growth, job creation and broad-based opportunity – were released at a roundtable in Geneva co-hosted at the Permanent Mission to Canada and attended by senior business executives and ambassadors representing a range of countries. They respond, in part, to the challenge of the United Nations’ new Sustainable Development Goals which emphasize the role of innovation in tackling global challenges such as extreme poverty and climate change.

The paper expands upon four central principles, necessary for the creation of a supportive policy environment for innovation. In doing so, it urges policymakers to:

– Build investor confidence by encouraging dialogue between stakeholders, providing stability and good governance, investing in infrastructure and ensuring that regulatory frameworks are predictable, transparent, robust and up to date.

– Train skilled workers in a climate that promotes knowledge exchange  To achieve this, the principles highlight the need for collaboration across sectors, along with investment in educational infrastructure and public-private research programs.

– Open markets to trade and investment, noting that innovation is a global endeavor that transcends borders. The principles state that national trade and competition laws should not discriminate between domestic and foreign companies, and that national systems aimed at attracting investment should conform to international norms and take into account global competition to attract investment capital.

– Ensure adequate intellectual property (IP) systems to incentivize investment in innovation . The paper explains that effective and predictable intellectual property systems assist businesses to obtain financing for innovation, provide certainty that businesses can recoup their investments in R&D, and enable innovative ideas to be commercialized and scaled. They also help to provide security for sharing know-how between businesses and other entities in the context of collaborative innovation.

“The social, environmental, and economic challenges that we face today require innovative responses,” said ICC Secretary General John Danilovich, “Business has a key role to play in helping society meet these challenges but can only do so in an environment that supports innovation. The ICC Innovation Principles have been created with this in mind, and we hope that they will provide the foundation for a wider discussion on technological innovation between business and policymakers.”

To download the ICC Principles on Creating and Nurturing Innovation Ecosystems for High-Tech Industries, click here .

5 Business Messages from the Internet Governance Forum

Published on November 30, 2015

IGF logo(1)_sourceThe Internet Governance Forum (IGF) concluded in Brazil recently bringing together more than 2,400 participants from over 116 countries to discuss Internet governance issues relating to cybersecurity, the Internet economy, inclusiveness, diversity, human rights, critical Internet resources and others. We take a look back at some key business messages that emerged during the four-day event.

Future of the IGF: A crucial time

Addressing government representatives at a high level meeting prior to the Internet Governance Forum, Ilham Habibie, chair of the ICC initiative Business Action to Support the Information Society (BASIS) said that extending the IGF mandate for at least 10 years would assure that Internet governance goals aligned with the United Nation’s recently agreed sustainable development goals which, in varying degrees, all rely on ICTs connected over the Internet and in back end-systems. A United Nations General Assembly high-level meeting marking the conclusion of the 10-year review of the World Summit on the Information Society will bring the future governance of the Internet to a critical juncture next month.

ICTs and Internet for sustainable development

Under the theme of empowering sustainable development, the IGF highlighted how private-sector investment in technology, innovation and entrepreneurship had transformed the Internet from an information exchange network to a powerful platform for sustainable social and economic development.

From e-health services or water distribution projects, to providing solutions for reducing carbon footprints, IGF workshops and main sessions provided wide-ranging examples of how the private sector was leveraging the Internet every day to improve the living conditions of people, bridge gaps that create inequalities, and protect and renew the planet’s resources.

An ICC BASIS co-hosted workshop on multistakeholder practices enabling sustainable development looked at the ways in which cooperation across stakeholders can drive sustainable development and underscored how attainment of all 17 UN sustainable development goals would rely in varying degrees on ICTs and the Internet.

Bringing the next billion online

“We must encourage efforts to bring Internet access to all global citizens,” said Hossan El-Gamal, a board member of the Africa Information & Communication Technologies Alliance (AfICTA), BASIS member and member of the IGF Multistakeholder Advisory Group.

Speaking as a representative of the SME community, El-Gamal said: “Bringing the next billion online to benefit from the information society requires, among other things: policy support for swifter access; reducing ICT investment risks; enhancing capacity building; facilitating local business innovation; encouraging local content creation; and strengthening institutional capacities

Importance of new links to local activities

Stakeholders participate in the IGF to share ideas and experiences and leave with insights and new perspectives to apply back home.

Because stakeholders do not meet at the IGF to negotiate or finalize official or binding texts, they can speak frankly and openly, in discussions that have ultimately lead to more informed policy and decision-making within their respective communities and organizations.

“The engagements of regional and national IGFs, in countries including Zimbabwe, Nigeria Paraguay, Mexico and Costa Rica and the subnational IGF in Nigeria are tangible success stories from this annual meeting, which should be sustained,” said Jimson Olufuye, BASIS member and chair of the AfICTA in his closing ceremony speech on behalf of ICC BASIS.

Multistakeholder strength

During the week, business and other stakeholders highlighted how multistakeholder cooperation and approach to Internet governance discussions served a shared interest in a stable and sustainable Internet.

In her opening session speech, BASIS and USCIB member Ellen Blackler of The Walt Disney Company said: “Progress towards our joint goals will be most successful when business, the technical community, government and civil society each have an active role in the development and assessment of policy issues and solutions. This inclusion lowers the risk of unintended consequences, increases legitimacy and facilitates implementation.”

ICC Underscores Importance of Freedom of Commercial Communication

Published on November 30, 2015

Digital marketing concept

A new International Chamber of Commerce (ICC) statement urging governments to reject general advertising bans and overly prescriptive restrictions on truthful commercial communications, in favor of self-regulatory practices, warns that excessive regulation in the field of advertising and commercial communications could hinder trade and hamper economic growth and development.

Issued on November 24, the ICC policy statement addresses continuing threat of bans on advertising and promotion of legal products and restrictions on freedom of commercial communication in favor of self-regulatory practices.

“This statement presents the views of global business on the freedom of commercial communication and expands on the discussion of the rights of advertisers,” said Brent Sanders (Microsoft), chair of the ICC commission and of USCIB’s Marketing and Advertising Committee. “It outlines the responsibilities accepted by business and supports the argument for continued self-regulation through ICC codes.”

ICC’s Commission on Marketing and Advertising will hold its nextg meeting on December 7 in New York. The Consolidated ICC Code of Advertising and Marketing Communications Practice (the ICC Code), is the gold standard for most nationally applied self-regulation around the world.

The newly revised ICC policy statement on freedom of commercial communication outlines ICC Code principles related to freedom of commercial communication and self-regulation, and recognizes business responsibility to consumers in providing decent, honest and truthful commercial communication. It aims to underscore that freedom of advertising and of commercial speech, underpinned by effective self-regulation, are cornerstones of the market economy.

“Latin America has seen a proliferation of proposals or enacted laws to restrict food and beverage marketing and this statement from ICC is most timely as business concern mounts with threats continuing to extend globally,” said Ximena Tapias Delporte, vice chair of the ICC Commission on Marketing and Advertising and executive chairman of the Colombian Union of Advertising Companies.

In the statement, ICC upholds that products that can be legally manufactured and marketed should be legal to advertise in line with free market media and communication laws, taking into account the interests of the public and the common good.

ICC has served as the authoritative rule-setter for international advertising since the 1930s, when the first ICC Code on advertising practice was issued. Since then, it has updated and expanded the ICC self-regulatory framework where needed to assist companies in marketing their products responsibly and to help self-regulators apply the rules consistently.

Download the ICC Policy Statement on Freedom of Commercial Communications

Download the Consolidated ICC Code of Advertising and Marketing Communications Practice

Digital Economy’s Driving Role in Meeting the 2030 Development Agenda

Published on October 30, 2015
L-R: Raul Echeberra (Internet Society), Jacqueline Ruff (Verizon), Robert Pepper (Cisco), Ellen Blackler (Disney) and Elizabeth Thomas-Raynaud (ICC)
L-R: Raul Echeberra (Internet Society), Jacqueline Ruff (Verizon), Robert Pepper (Cisco), Ellen Blackler (Disney) and Elizabeth Thomas-Raynaud (ICC)

On October 21 in New York, the International Chamber of Commerce, jointly with the South Korean Mission to the United Nations, and the UN Commission on International Trade Law (UNCITRAL), held a forum for some 100 UN delegates, legal experts and business executives to examine e-commerce in the context of the 2030 Agenda for Sustainable Development. The event, which featured a number of USCIB members, aimed to enhance awareness of the significance of the digital economy and dispute resolution, especially in the context of the 2030 Sustainable Development Agenda.

Featuring opening remarks by Oh Joon, South Korea’s permanent representative to the UN, and Miguel de Serpa Soares, UN under secretary general and legal counsel, panel sessions focused on how to maximize the potential of the digital economy to advance the SDGs, as well as emerging legal and economic issues affecting e-commerce.

While in New York, representatives of ICC’s BASIS (Business Action to Support the Information Society) initiative spoke at an October 19-22 UN stakeholder consultation in New York on the review of the World Summit on the Information Society (WSIS). They shared the priorities for global business in ensuring that the Internet and ICT innovation can deliver on their potential to drive sustainable economic and social development.

December 2015 marks the 10th anniversary of the WSIS, which aimed to bridge the global digital divide by improving access to the Internet and its benefits in the developing world. ICC BASIS and its cross-sector membership of businesses and associations from around the world were active contributors both during the WSIS Summits which took place in Geneva (2003) and Tunis (2005) and in post-WSIS processes and forums.

Read more on ICC’s website.

Progress Made on Enhancing Accountability at ICANN Meeting

Published on October 26, 2015

Digital GlobeAs the Internet community prepares for the transition of the Internet’s stewardship from the Internet Assigned Numbers Authority (IANA) of the U.S. Commerce Department to the global multi-stakeholder community, stakeholders made progress on enhancing accountability at the latest annual meeting of the Internet Corporation for Assigned Names and Numbers (ICANN).

At the week-long meeting, which wrapped on October 22 in Dublin, some 1,800 participants from government, business, civil society and the technical community rallied around a proposal to develop an ICANN accountability mechanism to replace the “backstop” function currently provided by ICANN’s contract with U.S. Commerce Department’s National Telecommunications and Information Administration (NTIA). Barbara Wanner, USCIB’s vice president for ICT policy, represented USCIB member interests at the meeting.

Since NTIA announced in March 2014 that it would transition key Internet functions and domain names to the global multistakeholder community, USCIB and other stakeholders have underscored that any new model of domain name system (DNS) management must include mechanisms that ensure it is accountable to the global stakeholder community. USCIB further has emphasized that the transition process must be thoughtfully conceived so as to not in any way compromise principles set forth by NTIA for the IANAN transition. These include supporting and enhancing the multistakeholder model, maintaining the security, stability, and resilience of the Internet DNS, meeting the needs and expectations of the global customers and partners of the IANA services, and maintaining the openness of the Internet.

“The proposal developed at the Dublin meeting marked an important step in developing a mechanism that will effectively empower business and other stakeholders to hold ICANN accountable. We have repeatedly said that accountability mechanisms must be in place before the IANA transition takes place,” said Wanner.

Mathieu Weill, co-chair of the Cross-Community Working Group on Enhancing ICANN Accountability (CCWG-Accountability), concurred. “What I think we can take away from this week is the wonderful and amazing way in which we have brought together in the same room people from different [stakeholder] groups to work in a collaborative manner – and that makes a difference and brings progress,” he said, noting that stakeholder collaboration is being embedded in ICANN’s accountability framework.

According to Wanner, ICANN’s work on accountability is helping to build the case for a multistakeholder Internet governance model, which is preferable to a government-controlled alternative. “Participants proposed that the CCWG-Accountability’s work demonstrates to critics who advocate inter-governmental organization jurisdiction over Internet governance issues that a multistakeholder model, although occasionally ‘messy,’ is effective and produces important results,” she said.

In addition to discussions about the enhanced accountability mechanism, the Dublin gathering featured some over 300 separate sessions on topics as diverse as “Women in ICANN, Internet and ICTs,” “Universal Acceptance of TLDs [top-level domains like .com and .org],” and “The Role of Voluntary Practices in Combating Abuse and Illegal Activity,” which reflected the substantive breadth of the policy and technical issues considered by ICANN.

USCIB is a member of the Business Constituency, a stakeholder group representing the private sector in discussions with ICANN on Internet governance.

USCIB’s Klein Tells Media Dispute Resolution is Crucial for BEPS

Published on October 16, 2015

taxes-portIn a Bloomberg BNA article, Carol Doran Klein, USCIB’s vice president and international tax counsel, explained that effective dispute resolution will be necessary for the success of the Organization for Economic Cooperation and Development’s (OECD) project on base erosion and profit shifting (BEPS), designed to rewrite the rules of the international tax system. The OECD released its final BEPS recommendations on October 5.

At an international tax conference on October 15 in Toronto, Klein told attendees that BEPS’s new rules on profit attribution and allocation of risk will lead to more controversy, because there is no guarantee that governments will interpret these rules consistently. Effective dispute resolution is therefore key for the successful implementation of the BEPS recommendations.

“I think that the arm’s-length standard, as set out in the guidelines, can work—but only with real functioning dispute resolution,” Klein told Bloomberg BNA. “It is going to be key to resolve disputes early, for this process to have success,” she said. “You could have real transfer pricing reform, but only in my view if the dispute resolution is implemented as indicated in the guidance.”

Klein also said that questions risk analysis about risk analysis were likely to cause dispute, and the implementation could be subjective.

“It is clear that the risk-adjusted return depends on the credit-worthiness of the borrower and the riskiness of the investment, but there’s very little guidance on how these factors should be determined and weighted,” Klein told Bloomberg. “Tax administrations may also be examining the riskiness of a transaction after that risk has played out, so reaching agreement on a risk-adjusted return may be challenging.”

Read more: “Companies See Dispute Resolution as Crucial in BEPS” (Paywall)

 

 

USCIB Cites Concerns Over End of “Safe Harbor”

Published on October 13, 2015

Digital GlobeUSCIB joined 22 other associations in signing a letter to European Commission President Jean-Claude Juncker explaining how the wholesale invalidation of the U.S.-EU Safe Harbor program will negatively impact the business operations of thousands of companies that rely on transatlantic commercial data transfers.

Established in 2000, the U.S.-EU Safe Harbor framework makes it easier for American companies to certify that they meet an “adequacy” standard for digital privacy protection, which under EU law is necessary to allow businesses to transfer data from EU countries. On October 6, the EU Court of Justice ruled that the 2000 U.S.-EU Safe Harbor Decision is invalid.

“This invalidation constitutes a serious disruption for the thousands of companies that have relied on the framework for commercial data transfers between the EU and the United States,” wrote USCIB and 22 other U.S. and EU tech-based associations in a joint letter to the European Commission. “These commercial data flows are central to facilitating transatlantic trade and the continued development of Europe’s data driven economy.”

The letter explained that “companies take their legal commitments very seriously when transferring data to the United States in compliance with European law,” and that the EU court’s judgement has created legal uncertainty. The letter urged the European Commission to come up with a harmonized implementation of the court’s judgement, so as to avoid “fragmenting the EU’s common approach to international data transfers.”

The joint letter also called on the European Commission to provide guidance for companies operating under the safe harbor framework, and for both the U.S. government and the Commission to urgently conclude their negotiations aimed at strengthening the Safe Harbor framework.

Read the full letter here.

USCIB Promotes Women’s Empowerment in the Food Supply Chain

Published on October 12, 2015

africa_fruit_vendors_lo-resThis week delegates from around the work will be reviewing world food security policies at the 42nd session of the Committee on World Food Security (CFS) at the United Nations Food and Agriculture Organization (FAO).  A record-setting 126 private sector representatives from 39 countries have registered to attend the 42nd plenary session taking place from October 12 to 15 in Rome. CFS is one of the most inclusive intergovernmental platforms that allows stakeholders to work together and ensure food security and nutrition for all.

In an effort to catalyze political will and focus around food security, USCIB supported an event on October 9 in Rome about “Women’s Empowerment: Solutions at the Nexus of Agriculture, Nutrition and Enterprise,” co-chaired by Cherie Blair, president and founder of Cherie Blair Foundation for Women, and Irene Khan, director general of the International Law Development Office. The event convened high-level representatives from business, government and NGOs for a dialogue about women’s access to productive resources (finance, tools, technology, land), women’s contributions to health and nutrition and the role of women in fostering food security.

Shaun Donnelly, USCIB’s vice president for investment and financial services, participated in the broad-based roundtable discussion, which included business leaders, 12 FAO ambassadors and representatives from leading NGOs. There was  broad agreement about the challenges faced by women and the importance of having multi-stakeholder partnerships to  empower women in agriculture and supply chains. Empowering women would improve food security and nutrition, as well as create a positive ripple effect in raising the standard of living for their families and strengthening their communities.

Many agreed that when women have more control over household assets and income, they invest more in their families’ food, health, education and children’s well-being. Thriving families are better positioned to contribute meaningfully to their communities, and a well-nourished population is better able to participate in the workforce. By empowering women in agriculture and supply chains, the world can make significant gains toward realizing the FAO’s Strategic Objectives and several of the broader United Nations Sustainable Development Goals (SDGs), such as:

USCIB Members Lead B20 Digital Economy Forum

Published on October 8, 2015

Digital GlobeUSCIB member companies dominated the agenda at the B20 Digital Economy Forum in Istanbul on October 6. Speakers included representatives from Intel, Boeing, Oracle, eBay, PayPal, Google, AT&T, Facebook, IBM. HP, GE, Ernst and Young and more.

“USCIB ICT Committee Chair Eric Loeb (AT&T) and Vice Chair Joe Alhadeff (Oracle), as well as dynamic local reps from member companies made effective presentations on governmental policies affecting the Digital Economy,” said Shaun Donnelly, USCIB vice president for investment and financial services, who attended B20 meetings in Istanbul this week.

The B20 is finalizing its policy recommendations to the G20 on improving the policy environment for the digital economy. The B20 Digital Economy Policy Paper is online here.

Excerpted from the paper, the B20 priorities on the digital economy are:

  1. Develop alternative policies to data localization
    • Address growing issues concerning the movement of data and adopt alternative policies to data localization.
  2. Improve the global trade system for the emerging digital economy with direct focus on e-commerce and digital trade
    • Discuss trade-facilitation measures to improve customs procedures with a direct focus on e-commerce challenges.
    • Establish one-contact information centers to support SMEs around legislation issues concerning cross-border e-commerce.
  3. Improve access of enterprises to digital economy and infrastructures
    • Commit to improved digital infrastructures and incorporate a five-year universal broadband connection target for G20 countries
  4. Develop and finance programs aimed at reducing skills mismatches in an era of rapid changes in technology and innovation
    • Establish a problem-solving and practice-focused STEM education approach in collaboration with the business community to prevent the expected skills shortage in STEM jobs.
  5. Assure legislative and regulatory support for alternative forms of funding
    • Support the emergence and growth of alternative sources of funding by harmonizing policies, regulations, and standards.
  6. Improve digitization of government processes
    • Increase use of digital technologies to transform key business processes to create greater leaps in efficiency and productivity.
    • Promote integrity in public procurement by instituting digital systems for efficiency and transparency to address issues during the procurement process.
    • Reduce corruption and improve efficiency in trade by moving towards a comprehensive digital environment for customs and cross-border systems through public-private collaboration in all G20 countries within five years.
  7. Establish a G20 governance mechanism to implement measures to improve the digital economy
    • Start a study group, with the inclusion of the World Trade Organization, World Customs Organization, International Trade Center, World Bank, OECD, the Global Commission on Internet Governance and the relevant engagement groups.