B20 Recommendations to G20
Business and civil society to join forces with governments
The G20 Summit in Cannes is taking place at Martinez Hotel on November 2 & 3 at a pivotal moment when the global economy is at a crossroads and financial and euro crises invite itself at G20. In these challenging times, stronger, more coordinated leadership from the G20 is necessary to address both the immediate and longer-term global economic challenges. Comprehensive collaboration between the business sector and governments across the G20 is also essential for the global business community to communicate its perspective on the obstacles to new investment, job creation and growth. It is important that governments listen to businesses and work with them to reboot the flagging recovery and find new drivers of growth. The French Presidency appointed the MEDEF, the largest association of employers in France, to assemble panels of business leaders to develop proposals for the consideration of G20 leaders, and organize the B20 Summit in cooperation with other business organizations from all the G20 countries. The B20 is the grouping of all business organizations from all the G20 countries plus the participation of the World Economic Forum and of the International Chamber of Commerce. For 8 months, leaving aside the fact that they represented competing companies, 150 directors, presidents, CEOs of various sizes companies but all with an iconic or particularly outstanding leadership in their field or in their region, have together, been exchanging and sharing diagnoses and recommendations on the basis of the G20 agenda official theme but also on other issues not on the agenda of the G20. On behalf of these companies and the private sector of these countries, and it's a premiere, the B20 is now able to formulate a number of commitments. Twelve working group drafted a report submitted on November 1st to the President of the G20, Mr Nicolas Sarkozy, President of the French Republic. This report offers recommendations in order to: adjust global gouvernance to the new realities to strengthen confidence, unlock the levers of economic growth, ensure that the benefits of global growth are sufficiently shared for growth to be sustainable.
Here are summarized the groups key recommendations, presented by the conveners of each group during a press conference chaired by Laurence Parisot, President of MEDEF:
I – Global Economic Policy Imperatives - Conveners: Laurence Parisot, President, MEDEF & Steven A. Kandarian, President and CEO, MetLife
Governments should reduce the uncertainty hampering economic growth by communicating clear objectives, increasing transparency and reinforcing International Monetary Fund (IMF) surveillance. Ensure sound public finance to boost long-term economic growth.
II - Financial Regulation - Conveners: Balasubramanian Muthuraman, President, Confederation of Indian Industry (CII) & Peter Sands, Group Chief Executive, Standard Chartered Bank
Before any new changes are made, take stock of the current regulatory agenda and set up a structured roadmap for reform. Support business efforts to address hedging challenges. Support the move towards a multi-polar currency system encouraging the convertibility and the flexibility of relevant currencies for trade and investment.
III - International Monetary System - Conveners: Robson Braga de Andrade, President, Confederação Nacional da Indústria (CNI) & Michael Diekmann, Chairman of the Board of Management, Allianz SE
Support business efforts to address hedging challenges: Support the move towards a multi-polar currency system encouraging the convertibility and the flexibility of relevant currencies for trade and investment.
IV - Commodities and Raw Materials - Conveners: Oleg Deripaska, CEO, Basic Element & Gérard Mestrallet, Chairman and CEO, GDF Suez
Create a global level playing field for commodities and raw materials. Use resources efficiently to reduce price pressure and ensure sustainability. Increase market transparency and visibility by reinforcing global dialogue. Foster efficient and liquid markets
V – Development and Food Security - Conveners: R.V. Kanoria, Senior Vice President, Federation of Indian Chambers of Commerce and Industry (FICCI) & Paul Polman, CEO, Unilever
Set up food security as a global priority – The private sector plays a central role in agri-food production systems and in reducing the impact of price volatility across the supply chain, while working with governments to address broader issues of sustainability.
VI - Employment and Social Dimension - Conveners: Alejandro Ramirez Magaña, CEO, Cinépolis & Juan Rosell, President, CEOE
Urgently increase efforts to promote better functioning of the labor markets and stimulate job creation. Reforms are a national responsibility, but the G20 has to be entrusted to set up regular tracking, with a few key indicators to be determined in consultation with social partners. It also requires a sharing of practices and peer review exercises.
VII - Anti-Corruption - Conveners: Ferdinando Beccalli-Falco, President and CEO, GE Europe & North Asia; CEO, GE Germany & Futhi Mtoba, President, Business Unity South Africa (BUSA)
Create a G20/B20 joint platform, supported by an explicit business commitment and accountable to G20 and B20 leaders, to maintain an ongoing, multiyear dialogue. Building on the Seoul Action Plan, G20 governments should 1) accelerate their commitment to ratify, enforce and monitor the implementation of the OECD and UN conventions on anticorruption; 2) support negotiations within the WTO for a multilateral agreement on standards for procedures and transparency in government procurement; 3) incentivize enterprises to establish effective policies and procedures to prevent corruption, and 4) recognize public bodies and officials that demonstrate leadership in fighting corruption.
VIII - Trade and Investment - Conveners: The Honourable Perrin Beatty, President and CEO, The Canadian Chamber of Commerce & Alexei Mordashov, CEO, Severstal
The G20 should propose a path for the World Trade Organization (WTO) to pursue its core functions: trade liberalization and rule making – Completing an ambitious Doha Round would have provided an important stimulus to global growth and helped restore needed confidence in the rules-based multilateral trading system. However, given the likelihood that no progress on the main market access elements of the Doha Development Agenda (DDA) will emerge in the near future, we urge the G20 leadership not to put the WTO system at risk, and to develop a clear path forward in the WTO negotiations with a focus on the core tasks of the WTO, namely further trade liberalization and rule making. The conclusion and enforcement of WTO agreements are the best way to counteract protectionist tendencies and to keep trade open and fair. By focusing on the possible and the practical in 2012, G20 leaders can provide a needed boost to the global economy and demonstrate the WTO’s continued vitality and relevance.
IX – ICT and Innovation - Conveners: Senapathy Gopalakrishnan, Executive Co-Chairman, Infosys Limited & Yu Ping, Vice-Chairman, China Council for the Promotion of International Trade (CCPIT)
Encourage authorities to create stable and predictable regulatory frameworks to promote competition and investments from the private sector, complemented when appropriate by public initiatives in sectors such as fixed and mobile broadband, ultra-broadband, content, applications and services. Supporting usage of mobile broadband and ultra-broadband will accelerate the take up of Internet and its enabling effect on the next wave of economic growth, innovation, productivity and jobs. At the same time, new business models that are sustainable for all players in the Internet value chain should be developed and encouraged.
X – Global Governance - Conveners: César Alierta Izuel, Executive Chairman and CEO, Telefónica & Nazli Ümit Boyner, President, TÜSİAD
Improve global cooperation. Improve G20 transparency and monitoring of outcomes. Further develop the business sector’s input to the G20 and the work of international organizations.
XI – Energy - Conveners: Christophe de Margerie, Chairman and CEO, Total & Hiromasa Yonekura, Chairman, Nippon Keidanren
Develop incentives to encourage deployment of energy efficiency. Make sure that the regulatory framework does not prevent the implementation of new or existing energy projects and technologies. Establish genuine market mechanisms to encourage investments and facilitate access to energy in developing countries.
XII - Green Growth - Conveners: Ditlev Engel, President and CEO, Vestas Wind Systems & Emma Marcegaglia, President, Confindustria
Allow free trade in environmental goods and services. Achieve a robust price on carbon and enhance flexible offset mechanisms. End fossil fuel subsidies. Dramatically scale up support for green technology development and innovation
