Official ICC G20 CEO Advisory Group

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PLUS: Richard Goyder & Robert Milliner
Trade: Resolving Commerce Barriers
Energy: A Future of Sustainability
Food: Ecosystem for Prosperity
INSIDE G20
G
g20g8.com CATCOMPANYInc Publications
The Ofcial ICC CEO G20 Advisory Group Publication
G20 AND
BUSINESS
ENGAGEMENT
01_G20_Cover.indd 2 27/06/2014 18:06
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accomplish your business objectives while you network, build loyalty, and reward your top performers.
Experience the Celebrity difference with all thisand more:
Modern, upscale staterooms featuring airy spaces with all the right, tasteful details
Award-winning cuisine with menus crafted by a James Beard-featured chef, plus complimentary 24-hour room service
Extensive activities and entertainment that make it possible to do as much (or as little) as you choose
State-of-the-art facilities, including theaters and conference/meeting rooms with complimentary use of A/V equipment
Experience a luxurious escape where business and pleasure blend seamlessly.
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Contents & Contributors
08 G20 Business 2014
Publisher:
Chris Atkins
Editor-in-Chief:
Ana C. Rold
editors@diplomaticourier.org
Managing Editor:
Chrisella Herzog
Editorial Assistant:
Rob Arcand
Creative Director:
Christian Gilliham
christian@cgcreate.co.uk
T: (+44) 7951 722265
WELCOME NOTES:
Terry McGraw, Marcus Wallenberg
John Danilovich

Publishers Note
By Chris Atkins
Editors Note
By Ana C. Rold
Contributors:
Andrew N. Liveris; Antonio Estrany y
Gendre; Christian Ketels; Eduardo
Eurnekian; Emiliano Duch; Glen Cass;
Jamal Malaikah; Javier Milei;
Jean-Pascal Tricoire; Jeff Balser;
John W.H. Denton; Juergen Voegele;
O.M. Preksin; Richard Goyer; Robert
Milliner; Roger N. Beachy; Tim Evans;
Zola Tsotsi
Publishing Firm:
The CAT Company, Inc.
Chris Atkins, President
Global Advisory Group:
Chris Atkins, Peter Atkins
Jennifer Latchman, Manuel C.
Menendez III (Chairman & Strategic
Advisor) Keith Foote Nyborg
(United States Ambassador (Ret.)
President of Sales:
Mike Nyborg
Director EMEA:
Tryrone Eastman
Sales Executives:
Tony Royle, Peter Scott, Ralph Windsor
Ray Baker, Phil Cook

Special thanks:
Diplomatic Courier for their
editorial direction and strategy
To contact the editors please email us at:
editors@diplomaticourier.org
CATCOMPANYInc
Masthead
G20 THOUGHT LEADERSHIP Sydney Australia July 2014

The Official ICC G20 CEO Advisory Group Publication
INSIDE G20
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The Ofcial ICCCEOG20Advisory Group Publication
G20 AND
BUSINESS
ENGAGEMENT
Cover Story
02 Waters Corporation
04 Heifer International
06 Celebrity Cruises
09 Accenture
11 Diplomatic Courier
13 CAT Company Publications
CGcreate_Design & Art Direction
19 McGraw Hill
21 DSX Inc
23 Corporacion America
27 United
31 ICC
35 United
39 Ettinger
42 Royal Caribbean International
47 World Chamber Federation
51 Schneider Electric
54 Soneva Fushi
59 Energy Transportation Group
60 Soneva Fushi
67 IE Business School
71 Shangri-La Sydney
79 World Chamber Federation
85 Bondurant School of Driving
89 APCO Worldwide
99 Invest in Turkey
100 Dow Jones
Advertisers Index
14
28
July 2014
14 / G20 BUSINESS ENGAGEMENT

ICC Features
24 / Australia: The need to break down the barriers
to trade and investment
By John W.H. Denton
28 / Partnership to Unlock Global Progress
By Andrew N. Liveris
32 / Financial issues within the global agenda from
Russia B20 Sherpas point of view
By O.M.Preksin
36 / How the G20 and B20 can work to resolve commerce barriers
By Jamal Malaikah
40 / Argentina: Back on Track to the Promised Land
By Eduardo Eurnekian and Javier Milei
44 / Meeting the energy demands the future
By Zola Tsotsi
48 / The new world of energy: Digital, local and consumer focussed
By Jean-Pascal Tricoire
52 / The need to preserve the genuine instruments of progress
By Antonio Estrany y Gendre
56 / Modern infrastructures help drive development
By Niels B. Christiansen
58 / Energy Access: a G20 Priority for Economic Growth,
Social Development, Political Stability and Sustainability
By Kimball C. Chen
62 / IE Business School
68 / Nymity
80 / AustralianChamber of
Commerce and Industry
92 / Invest inTurkey
Sponsored Features:
00
Richard Goyder and Robert Milliner outline goals and
challenges for the G20 Leaders Summit with attempts
to nourish and expand economic growth, employment,
and infrastructure.
48
Features
64 / The Urgency for Global Action on Food
By Juergen Voegele
72 / Building an Abundant Ecosystem for Prosperity:
The Competitiveness Agenda
By Emiliano Duch
74 / Saving Lives, Increasing Economic Growth
and Lifing Millions out of Poverty:
The Push for Universal Health Coverage
By Tim Evans
76 / The Urgency for an Innovation Roadmap to Transform Health Care
By Jeff Balser
80 / Too Big to Ignore - globally
By Kate Carnell AO
82 / The Urgency for Academic-Business Collaboration:
Establishing a Global Food System Roadmap
By Roger N. Beachy
86 / Economic Development goes Societal Needs:
A work in progress
By Christian Ketels
90 / How Australias Mining Industry Contributes
to Regional and Global Prosperity
By Glen Cass
92 / Trends and Challenges in Education:
What global leaders need to know!

08_G20_Contents.indd 8 02/07/2014 07:33
09_G20_ADVERT_Accenture_TO COME.indd 2 02/07/2014 17:04
Editors Note
Ana C. Rold
Editor-in-Chief
Welcome to the July 2014 edition of the G20 Business. We are thrilled to
collaborate with the International Chamber of Commerce again to produce a
publication focused on how the global business leadership collaborates with
the political leadership to debate and solve some of the biggest issues facing
our world. We are particularly proud to have been selected as the ofcial
publication for this years increasingly relevant and important forum of global
leadersa testament to our longevity in the eld and our teams tireless
efforts to produce a publication by the leaders for the leaders.
The issues at hand are many and it is abundantly clear the G20 remains a key
forum for managing the global economy beyond the current economic crisis.
The membership of the G20which includes both developed and developing
economiesis such that allows for greater inclusion and collaboration; more
so than any other global gathering of such nature. The B20, the G20s business
mirror summit has become an important voice and conduit; it integrates the
international business communitya key partnerinto the G20 process.
This group of select business leaders represents the most important industries
involved in solution making. From green growth to food security to
employment, the task forces within the B20 have set to research solutions
to seemingly intractable issues. Their cooperation with the G20 leaders is
paramount to the efforts to curtail the global economic crises.
Even though the G20 was the result of the nancial crisis in 2008, the institution
has carried on well after the crisis. In the future, the G20 has the potential of
being the venue of choice for multiple stakeholders to come together to carry on
complex solutions that require collaboration on multiple levels and via multiple
sectors in a exible format. That type of work is already being carried out by
the B20, which is engaging with multiple partners like the World Economic
Forum and the OECD.
We are particularly pleased to have several business leaders contributing articles
and editorials for this special edition of the Australia B20 meeting. We are also
pleased to have select thought leaders commenting on these important issues for
a publication that is for the leaders by the leaders. We hope you enjoy reading
them and that you will email us with any editorial comments and thoughts,
which we can include in the subsequent editions of this publication.
10_G20_Editors Note.indd 2 27/06/2014 18:20
A Global Affairs Magazine
Join the DIPLOMATIC COURIER magazine and its partners
in a series of innovative Global Summits examining the nexus
of innovation in diplomacy, technology, media, and social good.
Visit www.diplomaticourier.com to get on the invitation list.
THE WORLD IN 2050
11_G20_ADVERT_DC_ANA.indd 2 27/06/2014 18:21
Publishers Note
Distinguished Guests
I would like to take this opportunity to thank all those involved for their
dedication in helping produce the ofcial ICC G20 CEO advisory Group
publication.
It has been a great honor again to collaborate with the International chamber
of Commerce CEO G20 advisory group and the G20 Business host committee,
especially Robert Milliner and his team.
As the most experienced publisher in this eld, the CAT Company has proven
again that it can deliver a great product that is sure to be enjoyed by thought
leaders and professionals interested in the intersection of business and global
diplomacy.
I am thrilled to announce that the Queensland Government, this years host for
the upcoming G20 Leaders Summit in November, has selected the CAT Company
as the ofcial G20 Leaders Summit publisher. We are hard at work producing
this ofcial publication for the hosts of the Summit this year. Please get in touch
with our team to discuss how your company can be a part of this publication
in November.
Christopher Atkins
Publisher and Founder
Cat Company, Inc.
I AM THRILLED TO ANNOUNCE THAT
THE QUEENSLAND GOVERNMENT, THIS YEARS
HOST FOR THE UPCOMING G20 LEADERS
SUMMIT IN NOVEMBER, HAS SELECTED
THE CAT COMPANY AS THE OFFICIAL
G20 LEADERS SUMMIT PUBLISHER.
12_G20_Publisher Note.indd 12 27/06/2014 18:22
Please go to the
APP Store or Google Play
store to download the
app to read the G20
magazine on your
mobile devices.
The CAT Company Inc. Contact: Chris Atkins on 1-801-783-5120 catkins@thecatcompanyinc.net
The CAT Company
is also please to
announce that
The Queensland
Government has
appointed us as
the only sanctioned
Ofcial Publishers
for the G20 Leaders
Summit publication,
for November.
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INSIDE G20
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The Ofcial ICCCEOG20Advisory Group Publication
G20 AND
BUSINESS
ENGAGEMENT
m.+44 7951 722265
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Cover Story / G20 and Business
Authored by: Richard Goyder and Robert Milliner, B20 Chair and B20 Sherpa
Richard Goyder and Robert Milliner outline goals and
challenges for the G20 Leaders Summit with attempts
to nourish and expand economic growth, employment,
and infrastructure.
G20 business
engagement
T
he challenge put to G20 leaders
following the St Petersburg Leaders
Summit in 2013 was in taking
decisive action to return the global
economy to a strong and sustainable growth
path. At the World Economic Forum in Davos
in January, Prime Minister Tony Abbott
articulated a strong purpose for Australias
host year in his commitment to focusing
Australias presidency on promoting stronger
economic growth and making the global
economy more resilient to deal with future
shocks. The B20 strongly supports these
objectives.
The February Finance Ministers and Central
Bank Governors meeting built on this clear
agenda, with G20 governments pledging to
work together to lift collective GDP by more
than two per cent above trend over the next
ve years. They committed to take concrete
action to increase investment, lift employment
and participation, enhance trade and promote
competition, in addition to existing
macroeconomic policies. At the April
meeting of Finance Ministers in Washington,
Treasurer Hockey emphasised the importance
of members lifting their individual and
collective ambition if the desired growth
is to be achieved.
Challenges facing the G20
While the global economic outlook gives
reason for optimism in 2014, serious
challenges do remain. Growth remains
sluggish and high unemployment persists
across much of the developed world.
Meanwhile emerging economies are
confronting challenges of their own,
including the need for structural reform
and new geopolitical tensions have the
potential to be a further drag on growth.
The G20 may be an international forum,
but as Christine Lagarde, Managing Director
of the International Monetary Fund, noted in
Thought Leadership
April, the macroeconomic reform strategies
needed to drive growth in the current
environment are largely domestic. The crisis
reminded us all of the interdependence of our
nancial systems. The world needs a stable
and effective multilateral economic system if
it is to drive stronger economic growth and
employment outcomes.
Business input into the G20 agenda
Prime Minister Abbotts Davos speech
highlighted the absolute centrality of private
business to sustainable growth. He said if the
economic policies of our countries do not
successfully promote and foster protable
private businesses, they simply do not
work at all. These comments recognise
that business will play a critical role in
the global economic recovery.
Since the B20 was rst convened as part of
the Canadian G20 Presidency in June 2010, it
has played an important role in the G20 process.
To date, ve Summits have been held by ve
different host countries. Collectively, they have
produced more than 440 recommendations
on a range of topics to G20 leaders.
The B20 has opted for a tighter focus in
2014 and is concentrating on topics that
represent the most substantial obstacles to
global growth and job creation. The B20 sees
four critical issues the effective operation of
nancial markets, the development of global
human capital, the investment environment
(particularly the development of economic
infrastructure) and greater opportunities
for trade in goods and services.
Taskforces established around these areas
have identied the core problems and are
developing a set of pragmatic and practical
recommendations for G20 governments.
The taskforces are meeting regularly to test
and rene potential recommendations ahead
of the July B20 Australia Summit in Sydney
where the recommendations will be
nalised and prioritised for G20 leaders.
Economic growth will be driven by structural
reform and the B20 is working to set a structural
reform agenda narrative to that effect.
B20 priority areas
The B20 has undertaken research to identify
the main barriers to economic growth and
job creation and is developing a set of
14_17_G20_Summit Special_Taskforce.indd 14 27/06/2014 18:25
THE WORLD
NEEDS A STABLE
AND EFFECTIVE
MULTILATERAL
ECONOMIC
SYSTEM.
recommendations to address them.
Approximately 300 taskforce members drawn
from the international business community
are meeting regularly to develop, test and
rene potential solutions ahead of the
B20 Australia Summit.
B20 Australia has engaged a group of
international CEOs known as the CEO
Forum, who together with the B20 Australia
Leadership Group inform and guide
the B20s work. An Australian Coordinating
Chair from the B20 Australia Leadership
Group leads each taskforce with support
from chairs and participants from
previous years.
A summary of each policy area and
its progress ahead of the B20 Australia
Summit follows:
Financing growth
Michael Smith, CEO of ANZ Banking Group
The availability of credit to business is
vital to global economic growth. The
G20 Finance Ministers and Central Bank
Governors Communiqu in February noted
that the core nancial market reforms,
building resilient nancial institutions, ending
too-big-to-fail, addressing shadow banking
risks and making derivatives markets safer,
should be substantially completed by the
November Brisbane Summit. To ensure that
global regulation does not inhibit growth
and the creation of jobs, the Taskforce is
examining how the core reforms can be
implemented in a way that promotes
an integrated global nancial system, reduces
harmful fragmentation and avoids unintended
costs. The Taskforce is also examining how
to provide greater recognition for emerging
market economies in the development of
international standards; address issues
relating to the implementation of international
standards in emerging market economies;
facilitate greater infrastructure nancing;
and remove impediments to trade nance.

Human capital
Steve Sargent, President and
CEO of GE Mining
Long term unemployment, youth
unemployment and jobless growth are key
human capital challenges. An employment
paradox exists in many countries. While
unemployment remains relatively high, many
economies are also struggling to ll job
vacancies. Workplaces are being transformed
by technology, with one report suggesting 47
per cent of job categories could be automated
within two decades. The B20 is considering
recommendations in the following areas:
maximising the job creation potential of the
private and public sectors, building adaptable
Sydney. Australia 2014 15
THE WORLD
NEEDS A STABLE
AND EFFECTIVE
MULTILATERAL
ECONOMIC
SYSTEM.
recommendations to address them.
Approximately 300 taskforce members drawn
from the international business community
are meeting regularly to develop, test and
rene potential solutions ahead of the
B20 Australia Summit.
B20 Australia has engaged a group of
international CEOs known as the CEO
Forum, who together with the B20 Australia
Leadership Group inform and guide
the B20s work. An Australian Coordinating
Chair from the B20 Australia Leadership
Group leads each taskforce with support
from chairs and participants from
previous years.
A summary of each policy area and
its progress ahead of the B20 Australia
Summit follows:
Financing growth
Michael Smith, CEO of ANZ Banking Group
The availability of credit to business is
vital to global economic growth. The
G20 Finance Ministers and Central Bank
Governors Communiqu in February noted
that the core nancial market reforms,
building resilient nancial institutions, ending
too-big-to-fail, addressing shadow banking
risks and making derivatives markets safer,
should be substantially completed by the
November Brisbane Summit. To ensure that
global regulation does not inhibit growth
and the creation of jobs, the Taskforce is
examining how the core reforms can be
implemented in a way that promotes
an integrated global nancial system, reduces
harmful fragmentation and avoids unintended
costs. The Taskforce is also examining how
to provide greater recognition for emerging
market economies in the development of
international standards; address issues
relating to the implementation of international
standards in emerging market economies;
facilitate greater infrastructure nancing;
and remove impediments to trade nance.

Human capital
Steve Sargent, President and
CEO of GE Mining
Long term unemployment, youth
unemployment and jobless growth are key
human capital challenges. An employment
paradox exists in many countries. While
unemployment remains relatively high, many
economies are also struggling to ll job
vacancies. Workplaces are being transformed
by technology, with one report suggesting 47
per cent of job categories could be automated
within two decades. The B20 is considering
recommendations in the following areas:
maximising the job creation potential of the
private and public sectors, building adaptable
and resilient skill sets aligned with future
workforce needs, improving alignment of
people, skills, jobs and locations, increasing
organisation and workforce adaptability and
exibility, and implementing measures to
ensure accountability and real progress
against targets.
Infrastructure and investment
David Thodey, CEO of Telstra
G20 countries face a number of common
challenges including urban population
growth and aging infrastructure. To address
these challenges, at least $57 trillion is
needed to fund infrastructure investment to
2030, but on current trends approximately
$20 trillion will remain unfunded.
Challenges persist across the G20, including
a lack of bankable projects and barriers
to nancing.
The infrastructure & investment taskforce
is considering areas where action can be
taken to accelerate the provision of essential
economic infrastructure by addressing these
common challenges. G20 leaders may be
asked to reassert the primacy of infrastructure
investment in national growth plans,
establish and publish national infrastructure
pipelines, commit to specic time limits for
regulatory and environmental approvals, and
create a global knowledge platform. Business
could assist governments by creating a global
infrastructure project evaluation tool.
Trade
Andrew Mackenzie, CEO of BHP Billiton
Growth in world trade has attened since
2011. While additional tariff protections have
been avoided since 2008, G20 nations have
increasingly imposed a signicant number
of non-tariff barriers. Services are becoming
a much more important part of world trade
although they still only account for 20 per
cent, despite representing 70 per cent of
global GDP. The B20 is identifying potential
policy solutions to facilitate trade growth
including rapidly implementing and ratifying
the Bali Package Agreement on Trade
Facilitation, reinforcing the standstill on
protectionism and winding back barriers
triggered by the nancial crisis, especially
non-tariff barriers, developing country-
specic supply chain strategies and ensuring
PTAs realise better business outcomes.
Through the establishment of the anti-
corruption working group, the B20 will
identify and highlight to the G20 specic
instances in which corruption and a lack of
transparency create impediments to economic
and employment growth across the four
priority areas.
TO DATE, FIVE
SUMMITS HAVE
BEEN HELD BY FIVE
DIFFERENT HOST
COUNTRIES.
The B20 process
The B20 process will bring together
approximately 400 business leaders at the
B20 Australia Summit in Sydney on 16-18 July
followed by the G20 Trade Ministers meeting to
be held on 19 July. The B20 Australia Summit
will be an opportunity to discuss, nalise and
prioritise policy recommendations ahead of the
November G20 Leaders Summit in Brisbane.
Realising success
The best way to drive strong, sustainable
economic growth and create jobs is to work
collaboratively on the key areas that will
deliver a better environment for investment.
Following the B20 Australia Summit, the
B20 will resume its dialogue with G20 policy
makers to identify how to implement B20
proposals. The B20 will harness the strength
of the international business community
to advocate the benets of adopting B20
recommendations in G20 member countries.
The B20 is committed to helping Australia
deliver concrete outcomes from its G20
presidency. Bridging the gap in infrastructure
investment, removing barriers to trade,
improving the allocation of global human
capital and completing major nancial
reforms would all be real achievements
from Australias G20 year.
Biography
Richard Goyder AO joined Wesfarmers in 1993 afer working in various
commercial roles at Tubemakers of Australia Limited. He has held a number
of commercial positions in Wesfarmers Business Development Department
including General Manager.
In 1999 Richard was Managing Director of Wesfarmers Dalgety Limited, which subsequently
became Wesfarmers Landmark Limited, a position he retained until his appointment as
Finance Director of Wesfarmers Limited in 2002. He was appointed Deputy Managing Director
and Chief Financial Ofcer of Wesfarmers Limited in May 2004 and assumed the role of
Managing Director and Chief Executive Ofcer on 13 July 2005. In 2007, Richard transformed
Wesfarmers with the successful acquisition of the Coles Group of companies. At more than $19
billion, this purchase was, and remains, the biggest transaction in Australian corporate history.
Wesfarmers is now a top 10 Australian company, it has more than 500,000 shareholders and
with a workforce of more than 200,000 people is the countrys largest private sector employer.
Richard joined the Board of Wesfarmers Limited in 2002 and is a director of a number of
Wesfarmers group subsidiaries. Outside of his Wesfarmers group board commitments Richard
is also a member of the AFL Commission, the UWA Business School, the Business Council of
Australia, and Chairman of Scotch College in Perth. Richard was appointed as Chairman of the
Australian B20 (the key business advisory body to the international economic forum which
includes business leaders from all G20 economies) in February 2013.
Richard has been awarded the Honorary Degree of Doctor of Commerce from the University
of Western Australia. Richard was made an Ofcer in the Order of Australia in 2013 for
distinguished service to business through executive roles and through the promotion of
corporate sponsorship of the arts and Indigenous programs, and to the community.
Biography
Robert Milliner is a Senior Adviser at UBS and the B20 Sherpa for Australia
for 2014. He is also Chairman of the Board of the Foundation for Young
Australians and a director of the Australian Charities Fund.

From 2004-2011 he was Chief Executive Partner of Australias pre-eminent
international law frm Mallesons Stephen Jaques (now King & Wood Mallesons) and retired
from Mallesons in January 2012 afer 28 years as a partner.
He led the negotiations for and completion of Mallesons ground breaking merger with the
premier Chinese frm King & Wood in 2011. In 2012 he was the co-author of an independent
review of Commonwealth regulation making practices for the Minister for Finance &
Deregulation. The Federal Government agreed to the majority of the review recommendations
in December 2012. Robert was a director of the Business Council of Australia from 2005-2011,
chaired the Business Reform Task Force and was a member of the Global Engagement Task
Force. He was a participant in the 1st and 2nd Australia-China CEO Roundtables in Australia
in 2010 and China in 2011.
He was the inaugural chair of the Large Law Firm Group which represents Australias 9 largest
law frms and was the only law frm member of the Law Council of Australia, and held that role
from 2006-2011. He was a member of the International Legal Services Advisory Council (which
advises the Federal Attorney-General on the export of legal services) from 2004 -2013, a director
of Asialink - Asia Society Australasia Centre, Australian Business and Community Network and
Deputy Chairman of the Mallesons in the Community Board from 2004-2011.
He has a Bachelor of Commerce and Bachelor of Laws (Hons) from the University of
Queensland and a Master of Business Administration from the University of Western Australia.
In 2010 he attended the Advanced Management Program at Harvard Business School.
Welcome: ICC, G20 and Global Governance
Terry McGraw
Chairman, International Chamber of Commerce
ICC is and has been throughout its long
existence a steadfast rallying point for
those who believe, like our founders, that
strengthening commercial ties among
nations is not only good for business
but good for global living standards
and good for peace.
Over the last six years, the G20 has
become an indispensable instrument for
forging effective international collaboration
in an interdependent world. The G20
agenda has a major impact on core business
goals and will increasingly shape the policy
direction of other national governments
and international organizations.
As the world business organization
with a global network reaching over 6
million companies, chambers of commerce
and business associations in more than 130
countries the International Chamber of
Commerce (ICC) is committed to ensuring
that the voice of business is heard and
that business interests considered by
policymakers at the highest levels.
The work of the G20 is a natural focal
point for ICCs unique international policy
stewardship and presents an opportunity
for global business to establish an enduring
mechanism to engage with the Group of 20
governments and provide regular input into
the G20 policy process.
To that end, ICC formed the ICC G20 CEO
Advisory Group to spearhead global business
engagement with G20 governments at the
highest levels and advocate for business
priorities within the G20 policymaking
processes. ICC and CEO members of the ICC
G20 CEO Advisory Group have been deeply
engaged in the G20-B20 process since the
Seoul G20 Summit in 2010 and are now
recognized by those nations leaders as
an important strategic business partner
in the push for economic growth and
job creation globally.
Over the past 60 years, international trade
and investment and the multilateral trading
system has been an undeniable engine of
growth, that is why ICC has urged G20
Leaders to use their increasing inuence on
global policy priorities to further advance
global trade liberalization and rule making
within the WTO. After years of political
deadlock, Im happy to see G20 leaders
start to make progress on the multilateral
trade agenda.
Perhaps the single most apparent result
of our work was evidenced during the St.
Petersburg Summit (2013), when leaders set
aside differences on trade and rallied their
support for a successful outcome on trade
facilitation. Those commitments held rm
when the WTO completed its rst multilateral
treaty in nearly 20 years by completing WTO
Agreement on Trade Facilitation in Bali
on December 7, 2013. That agreement
alone could increase exports by more
than $1 trillion, supporting the creation
of an additional 21 million jobs in both
developing and developed economies.
The sheer scale of benet deriving
from a single trade agreement serves to
demonstrate the power of the G20 to
restore global growth if they have the
courage and will-power to stick to their
stated objectives.
Going into the Brisbane G20 Summit
in November of this year, business is
optimistic that G20 Leaders will maintain
the momentum on the trade agenda.
Notably, if G20 leaders follow through on
business priorities such as reducing trade
barriers, liberalizing trade in services and
expanding the International Technology
Agreement they will go a long way in
reaching their own target of boosting GDP
by an extra 2% over the coming ve years.
International business stands ready to
partner with G20 governments in
advancing a growth and jobs agenda.
I remain encouraged by the possibilities
that collaborative and concerted G20
action can have on the global economy
and look forward to continuing the
business dialogue with leaders at the
November G20 Summit in Brisbane.
Together, we can create new opportunities
on a global basis that will spur economic
growth, create new jobs and increase
prosperity and peace.
Terry McGraw
Chairman, International
Chamber of Commerce
THE SHEER SCALE OF BENEFIT DERIVING
FROM A SINGLE TRADE AGREEMENT SERVES
TO DEMONSTRATE THE POWER OF THE G20 TO
RESTORE GLOBAL GROWTH IF THEY HAVE THE
COURAGE AND WILL-POWER TO STICK TO
THEIR STATED OBJECTIVES.
18_G20_Welcome_TERRY M.indd 18 27/06/2014 18:29
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19_G20_ADVERT_McGraw Hill.indd 19 27/06/2014 18:31
Welcome: The role of Business in G20 policymaking
Marcus Wallenberg
Chairman, ICC G20 Advisory Group
It has now been ve years since the Group
of Twenty (G20) was elevated to Leaders
level in the face of an unprecedented
global nancial crisis. Despite a number
of challenges to the groups cohesion, the
G20 remains uniquely positioned to address
some of the worlds most important and
intractable economic problems and will
increasingly shape intergovernmental
policies that affect business internationally.
The G20 agenda bears upon core
business goals for trade, investment,
economic growth and job creation and
will increasingly shape intergovernmental
policies that affect business internationally.
In order to play a constructive role in
representing business views to G20
governments, the International Chamber
of Commerce (ICC) has established the
ICC G20 CEO Advisory Group. The Group
comprises approximately 40 CEOs actively
concerned with the G20 policy agenda
and keen to engage with peers, set
priorities and speak out on the issues
most vital to business.
Over the last several years, the ICC
G20 CEO Advisory Group has served as
a strategic, global business partner to
successive G20 host countries in Korea,
France, Mexico, Russia and now here in
Australia. Many of the CEO members of the
ICC group were early business activists on
the G20 agenda, and continue to be deeply
engaged in the development and advocacy
of B20 policy recommendations.
It is with pleasure that I have noted a
steady improvement in government-business
dialogue since Korea invited business into
the process through the G20 Business
Summit in Seoul in 2010. G20 governments
now recognize the B20 as an important
stakeholder, and the presentation of B20
recommendations to Australian Prime
Minister Tony Abbott during the B20 Summit
in Sydney in July will constitute the fth
consecutive year of CEO-level business
engagement in the G20 policy agenda.
Collectively, the recommendations presented
to the G20 in Korea, France, Mexico, Russia,
and soon Australia, comprise a seminal
compendium of international business
priorities and recommendations that continue
to be shaped and reshaped as the process
moves from Summit to Summit.
Investment, particularly in infrastructure,
is a vital driver of global economic growth
and job creation. As a co-chair of the
Australia B20 Infrastructure and Investment
Taskforce, Im therefore particularly pleased
that the Australian G20 presidency has
focused on this issue through the creation
of a newly formed G20 Investment and
Infrastructure Working Group (IIWG). This
is an important recognition of the role of
investors for creating economic growth,
sustainable development and jobs and
business looks forward to deepen this
work with G20 governments.
The proliferation of international
investment agreements has highlighted
the need for more harmonized investment
INVESTMENT, PARTICULARLY IN
INFRASTRUCTURE, IS A VITAL DRIVER
OF GLOBAL ECONOMIC GROWTH AND
JOB CREATION.
rules to fulll the vast potential of cross-
border investment for shared global
growth. CEO members of the ICC G20
CEO Advisory Group therefore continue to
call for the development of a multi-lateral
framework for investment (MFI), which
would help with both a freer inow and
outow of foreign direct investment (FDI).
This in turn would promote and protect
cross-border capital ows, especially
foreign direct investment (FDI).
As government and business move
forward together, a key challenge will be
to ensure that business recommendations
remain relevant and that progress remains
foremost. With this in mind, the ICC
G20 CEO Advisory Group created the
ICC G20 Business Scorecard to examine
the G20s recognition of core business
messages and its collective policy response
to recommendations put forward by the
international business community. The
third installment of the annual Scorecard
shows a year-on-year improvement in
score since ICCs monitoring began,
demonstrating an increasing responsiveness
to business priorities over time.
ICC and our member companies have
high expectations for the G20 Summit this
year in Brisbane to provide much-needed
stewardship to shore up the drifting world
economy and create the condence we
need to invest.
International business stands ready
to partner with G20 governments in
advancing their growth and jobs agenda.
We remain committed to generating
solid policy work and working with G20
leaders before, during and after the G20
Summit events from Australia to
Turkey and beyond.
Marcus Wallenburg
Chairman,
ICC G20 Advisory Group
20_G20_Welcome_MARCUS W.indd 20 27/06/2014 18:32
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Welcome
John Danilovich
Secretary General, International Chamber of Commerce
As the everyday practitioners in the
global economy, international business
has a clear stake in the success of the G20
and is willing to play an increasing role,
delivering real-world input to policymaking;
partnering with governments to implement
commitments; and validating the G20s
actions through increased international
trade and investment, economic growth,
and job creation.
The G20, with its mixed membership of
advanced and emerging economies, has
become a powerful force for shaping the
rules of engagement for global market
competition. With this understanding,
along with the recognition that the G20
agenda will substantially impact core
business goals to expand economic
growth and employment, the International
Chamber of Commerce (ICC) has been
deeply engaged in the work of the G20,
and formed the ICC G20 CEO Advisory
Group to intensify top-level international
business engagement and to ensure
the inclusion of business views in the
deliberations of G20 Leaders
ICC has served as a strategic, global
business partner to successive host
countries: Korea, France, Mexico, Russia
and most recently Australia. Over the last
several years, the ICC G20 CEO Advisory
Group has joined with host country business
associations, CEOs from corporations large
and small, and representatives from the B20
coalition of national business federations
to collaborate on the formulation of
business-based policy recommendations.
As part of our responsibility to ensure
the delivery of balanced and substantive
business recommendations to G20 leaders,
ICC hosts a series of regional policy
consultations to solicit priorities and
recommendations from companies and
business organizations of all sizes and in
all regions of the world. In 2014, G20
consultations have been held in the United
States, Turkey, UAE and most recently on
the sidelines of the ICC Asia Pacic CEO
Forum in Kunshan, China. These events
allow ICC to tap into the broadest
possible constituencies of businesses and
provide local businesses with an opportunity
to help shape ICCs policy recommendations
for input into the G20 process.
In addition to developing policy
recommendations, ICC also recognizes
the need to evaluate the impact of past
business recommendations. With this in
mind, ICC has developed the ICC G20
Business Scorecard to rate the overall
responses by G20 governments to key
business goals.
The purpose of the Scorecard is to
provide a detailed assessment of the G20s
recognition of, action on and response to
recommendations put forward by the global
business community. Compilation of the
annual Scorecard reects ICCs belief that if
the G20 has better information on how its
actions are interpreted by the business
community this will help it set priorities,
honour commitments, measure its own
progress over time and identify deciencies
THE PURPOSE OF THE SCORECARD IS TO
PROVIDE A DETAILED ASSESSMENT OF THE G20S
RECOGNITION OF, ACTION ON AND RESPONSE
TO RECOMMENDATIONS PUT FORWARD BY THE
GLOBAL BUSINESS COMMUNITY.
that deserve greater attention. Evaluation
of past recommendations also helps
business leaders pick up where the past
B20 left off, so that they can better
tailor future recommendations.
Published earlier this year, the third
installment of the annual Scorecard,
shows a year-on-year improvement in score
since ICCs monitoring began. Among the
positive outcomes that led to this years
higher score was the G20 support for
the historic World Trade Organization
Agreement on Trade Facilitation and
the extension of the G20 standstill on
protectionist measures until the end of
2016. The improvement in score also
reected G20 efforts to increase access to
nance for small and medium businesses
and the recognition of business as a key
partner in the ght against corruption.
Still, several business priorities continue
to go unnoticed, including the G20s failure
to recognize the importance of information
and communication technologies (ICTs)
and a lack of discussions on a hig-standard
multilateral framework for international
investment.
For the 3rd Edition of the Scorecard
we also invited our colleagues at the
International Organization of Employers
(IOE) and the Business and Industry
Advisory Committee to the OECD (BIAC)
to contribute a specic chapter on the
issue of employment, skills and job
creation in the G20.
I look forward to continuing this type
of collaborative outreach in the coming
years to ensure that the voice of business
small and big - are heard, and their
interests taken on board by policymakers
at the highest level.
John Danilovich
Secretary General, International
Chamber of Commerce
22_G20_Welcome_John Dani.indd 22 01/07/2014 09:54
23_G20_ADVERT_CORP AM.indd 23 27/06/2014 18:34
ICC Feature / Australia
Authored by: John W.H. Denton
Thought Leadership
24_26_G20_ICC_Corrs_Australia.indd 24 27/06/2014 18:35
Authored by: John W.H. Denton
Thought Leadership
Australia:
The need to break down
the barriers to trade
and investment
T
he World Trade Organisation
director-general, Roberto Azevdo,
invoked the words of Nelson
Mandela when concluding the
WTOs ministerial meeting in Bali earlier
this month: It always seems impossible,
until its done.
Since the establishment of the WTO in
1995, more often than not, it has seemed
real and effective trade liberalisation is
rmly in the impossible category.
As Australia prepares to host the G20
meetings next year, it can help make the
impossible possible by inuencing discussions
on the future of the multilateral trading
system in a real way.
With trade accounting for some 40 per
cent of Australias GDP and one in ve
Australian jobs related to trade, it is rmly
in our national interest to see a lowering of
trade barriers.
As the global economy tries to shrug off
the full impact of the global nancial crisis,
liberalising trade ows matters now more
than ever to all nations.
The OECD has found there are extensive
benets from reducing trade barriers between
countries. Consumers benet from the lower
prices and wider range of quality goods and
services that liberalised trade brings. Companies
benet from the diversied risks as well as
the more efcient allocation of resources.
And indeed, the OECD found that if G20
countries agreed to halve the level of existing
trade barriers, they would see more jobs for
both low and high skilled workers, higher
real wages, and export levels would rise
by up to 20 per cent.
AS HOST OF A
DEDICATED G20
TRADE MINISTERS
MEETING NEXT
YEAR, AUSTRALIA
HAS THE CHANCE
TO FOCUS G20
MINDS ON THE
FUTURE OF
THE WTO.
John W.H. Denton outlines the importance of streamlining
and simplifying Australias trade borders to further integrate
the nation into the global economy.
While the WTOs recent Bali Package
achieved worthwhile, but still relatively
modest outcomes in simplifying customs
procedures, streamlining trade ows and
boosting food security, it also provided a
good opportunity to consider the future
of the WTO as the main body for pushing
much needed trade liberalisation.
While Azevdo saw the Bali outcome
as strengthening the WTO and bolstering
the cause of multilateralism, others saw a
dysfunctional body taking 18 years to reach
consensus on the relatively low-hanging
fruit of trade facilitation measures.
Chinese Commerce Minister Gao Hucheng
highlighted this view when he told the Bali
conference that the low efciency of the
WTOs decision-making system had to change.
As the G20 approaches, Australias G20
business body, the B20, has already stated
trade will be one of the four key focus issues
it will consider and on which it will provide
recommendations to G20 leaders.
The G20 has previously recognised the
potentially fragmenting effect of the
proliferation of preferential trade agreements,
such as the Trans-Pacic Partnership. These
bilateral or plurilateral agreements could
lead to trade rules becoming increasingly
Balkanised, complicated and unequal
between developing and developed countries.
While the G20 has called for the WTO to
remain as the central body in multilateral
trade, and has urged greater transparency
in preferential trade agreements, it needs to
confront head-on the reality of the WTOs
dysfunction.
Innovative approaches are needed, like
the Trade in Services Agreement negotiations
championed by former trade minister Craig
Emerson, which sought to advance services
liberalisation in a WTO-consistent way by
forming a coalition of the willing some
50 developing and developed economies
that have the willpower to promote services
trade reform. A similar approach is needed on
investment, given the ineffective efforts by the
WTO on trade-related investment measures.
Trade Minister Andrew Robb has shown
astute pragmatism and determination in
resolving long-standing obstacles in
Australias FTA negotiations with Korea,
and is working hard to resolve outstanding
barriers to concluding very signicant
agreements with Japan and China
representing three of our four largest
trading partners.
As host of a dedicated G20 Trade Ministers
meeting next year, Australia has the chance
to focus G20 minds on the future of the WTO,
and dene a new narrative around global
trade, recognising that the outdated denitions
we are still using fail to capture the reality
of the contemporary global trading system,
such as rules relating to global value chains.
Just as the WTO was established in
1995 when it became obvious the General
Agreement on Tariffs and Trade was not
adapting to the globalised world economy,
the ongoing transformation of the global
trading and business models is increasing
pressure to either reform the WTO, or start
considering alternatives.
As a relatively small economy competing
in a global environment, Australias future
success and prosperity relies on breaking
down barriers to trade and investment ows.
Our jobs and our level of economic growth
are on the line, and we need to nd an
effective mechanism to achieve this.
Biography
John W.H. Denton
is Partner and CEO
of Corrs Chambers
Westgarth. He is
a member of the
Australian B20 leadership group,
chair of the APEC Business Advisory
Committees Finance and Economics
Working Group and chairs the Business
Council of Australias Global Engagement
Taskforce. This opinion piece was
originally published in The Australian
Financial Review.
THE G20 HAS PREVIOUSLY
RECOGNISED THE POTENTIALLY
FRAGMENTING EFFECT OF THE
PROLIFERATION OF PREFERENTIAL
TRADE AGREEMENTS, SUCH AS THE
TRANS-PACIFIC PARTNERSHIP.
ICC Feature / Global Partnerships
Authored by: Andrew N. Liveris
Andrew Liveris speaks to the importance of global
collaboration in increasing efciency and employment,
both domestically and abroad.
Partnership to
Unlock Global
Progress
Thought Leadership
28_30_G20_ICC DOW.indd 28 27/06/2014 18:49
J
ohn Donne wrote, No man is an
island. To which we might add in
a 21st-century postscript: neither
are countries or companies.
The issues that dene our times
from sustainability challenges to youth
unemployment to unrealized prosperity
are difcult and complex. To solve them,
none of us can remain on our own island
or in our own silo (choose your metaphor).
I rmly believe the only way we can address
them successfully is through focused,
fruitful collaboration among business,
government, and society.
As partners in the B20, we have all
expressed our commitment to collaborating
at the intersection of the public and private
sectors in order to create real catalysts for
change and human progress. My fellow CEOs
would be quick to acknowledge that, in order
to unlock this progress, we must engage in
dialogue. By working together in a truly
coordinated fashion, we can develop and
support the implementation of sound
policy frameworks to achieve the priorities
proposed by the B20.
After all, the collective aim of the B20
is not simply to foster job creation and
economic growth. It is to do these things
sustainably. Meeting pressing global needs
will require, over the long term, growth that
is sustainable in all respects: economically,
socially, and environmentally.
That imperative shapes the work we
do in a range of areas, especially the eld
of advanced manufacturing. Scientists,
engineers, and inventors are meeting
increasingly complex demands with
breakthrough, new solutions developed at
the intersections of the sciences. With every
new innovation, from enabling higher crop
yields to supplying more and cleaner water,
we see even more clearly that solving tough
problems is good for business and better
for the world.
Innovative companies like the B20
membership are determined to make the
necessary investments in order to create
evolutionary leaps forward where the greatest
global needs exist. It is time for governments
to match us with adaptations of their own, and
the G20 is uniquely positioned to lead the way.
Increasingly, countries must operate
like companies particularly by making
investments that encourage competition
and allow innovation to ourish. These
actions might include investing in R&D
and infrastructure, as well as implementing
smart regulations, streamlining permitting
processes, and opening markets to
facilitate global value chains.
These growth-oriented policies will
inevitably improve a countrys business
climate indeed, they are vital. Still, no
country can succeed in the long term
while failing to develop its human capital.
Last year, 13.1 percent of young people
around the world remained unemployed
nearly the entire population of Germany.
We face the risk not only of a lost generation,
but of lost potential and lost progress.
This is a recipe for social, political, and
economic instability around the world. It is
also an area of major concern for advanced
ONLY BY CREATING THE CONDITIONS
FOR INNOVATION TO FLOURISH CAN
WE SOLVE THE COMPLEX CHALLENGES
WE FACE. COLLABORATION AT
THE INTERSECTION OF BUSINESS,
GOVERNMENT AND SOCIETY IS THE
KEY TO FUTURE PROSPERITY.
28_30_G20_ICC DOW.indd 29 27/06/2014 18:49
manufacturers that depend on a steady
stream of highly skilled employees.
Companies are determined to be part of
the solution not only to build a robust
talent pipeline but also to further develop
a fast-growing middle class of global
consumers. Around the world, industry is
creating next-generation technologies and
powering high-tech manufacturing careers.
This is true whether you are talking about job
training collaborations in Michigan or about
technology creation and commercialization
efforts with King Abdullah University of
Science and Technology in Saudi Arabia.
As technology continues to disrupt
workplaces, companies around the globe
will continue to make investments in human
capital. That is how we invest in our own
long-term, sustainable growth while
earning anew our license to operate in
communities in every region of the world.
At the core of all these ideas is the human
desire for progress. And yet, unless we can
combine our efforts at the intersection of
business, government, and society, they will
have a limited impact.
By collaborating to solve common
problems, we will create the conditions for
innovation to ourish. Greater prosperity
and a better quality of life depend on the
ability of global leaders in every sector to
engage in a robust public discussion, develop
sound public policy, and implement crucial
reforms in a way that benets countries,
companies and citizens alike.
As businesses, we will continue to unlock
progress in every way that we can. And as
society continues to call for solutions, and
as innovative companies continue to answer,
governments must do more to hold up their
end of the bargain. The G20 in particular has
the unique opportunity to demonstrate
leadership with developed and developing
economies uniting to promote an enabling
policy environment for investment and
sustainable economic growth. If they do this,
then together at the intersection between
science and human advancement we will
all be able to contribute to the fullest of
our potential.
LAST YEAR, 13.1 PERCENT OF
YOUNG PEOPLE AROUND THE WORLD
REMAINED UNEMPLOYED NEARLY THE
ENTIRE POPULATION OF GERMANY.
Biography
Andrew N. Liveris is
Chairman and Chief
Executive Of cer of
The Dow Chemical
Company, a global
technology company focused on
developing innovative solutions at the
intersections of the physical, materials,
polymer and biological sciences with
2013 annual sales of more than $57 billion.
Liveris advocates the criticality of
manufacturing worldwide. He is Co-Chair
of U.S. President Obamas Advanced
Manufacturing Partnership and the
author of Make It in America. Liveris
sits on the Board of Directors of IBM, is
Chairman of the U.S. Business Council,
Vice Chair of the Business Roundtable
and a member of the U.S. Presidents
Export Council.
28_30_G20_ICC DOW.indd 30 27/06/2014 18:49
Aamal Group
Australia New Zealand Bank
Bayer
Bridas Corporation
Cinpolis
Corporacion America
Corrs Chambers Westgart
Daesungh
Danfoss Group
Deep Roots Capital
Doha Insurance
The Dow Chemical Company
Energy Transportation Group
Union of Chambers and Commodity
Exchanges of Turkey
Eskom Holdings
Fung Group
GDF Suez
Great Eastern Energy
Hanwha
Ilthabi Rekatama
Infosys
McGraw Hill Financial
MK Sanghi Group
National Petrochemical
Industrial Company
Nestle
Novozymes
The Rasoi Group
Repsol
Rothschild Europe
Royal Dutch Shell
Russian Union of Industrialists
and Entrepreneurs
Severstal
Schneider Electric
Telefonica
Televisa
Wesfarmers Limited
Zurich Insurance Group
Comprising business leaders and CEOs from major global corporations, the ICC G20 Advisory Group
efectively targets G20 policy development on a worldwide scale. The group has proven itself to be
an enduring, legitimate voice of international business, gaining recognition by G20 governments
as the primary source of business expertise on the global policy agenda.
Chairman: Marcus Wallenberg
Chairman and CEO, SEB (Sweden)
www.iccwbo.org/G20
BUSINESS MATTERS.
31_G20_ADVERT_ICC.indd 31 27/06/2014 18:50
ICC Feature / Global Agenda
Authored by: O.M.Preksin
Oleg M. Preksin outlines details of the economic
challenges facing the G20 leaders in Australia.
Financial issues within the
global agenda from Russia
B20 Sherpas point of view
F
inancial issues have always been
a focus of global leaders activities,
especially within the Group of Twenty
(G20). First, because this institution
emerged as an upgrade of well-established
working format for nance ministers and
central banks governors from the leading
economies. Second, because their dialog
switched to the top level at the time of the
most destructive nancial crisis in modern
history. Financial themes prevailed, but the
substance of dialogue gradually changed.
The initial calls for radical nancial reforms
evolved to regulatory modications that ought
to preserve a traditional state of order. The
willingness of standard setters to change the
system that led to the severe global crisis and
could provoke its reiteration was toned down
as the world seemed to pass the worst and
the signs of recovery strengthened in
mature economies.
G20 concentrated most efforts promoting
Basel III regulation in relation to banks
leverage ratios and risk weighting of assets,
addressing the too big to fail issue of
G-SIFIs and resolution plans for these
institutions, approaching shadow banking
and reducing systemic risks arising from
OTC derivatives markets.
The global development issues
corresponding to the UN Millennium
Development Goals (MDG) were also on
the agenda. These are reected in the G8
Lough Erne Accountability Report (Keeping
Our Promises) and in Saint Petersburg
Accountability Report on G20 Development
Commitments both issued in 2013.
However, a number of MDG have not
yet been reached.
Russian presidency in the Group of Twenty
paid high attention to the nancial aspects of
sustainable growth and job creation, adding
new themes to G20 agenda. Among those
the availability of nancing for investment,
government borrowing and public debt
sustainability. The international business
STRONG
FINANCIAL
IMBALANCES
REMAIN AND THE
NUMBER OF RISKS
FACED BY THE
ECONOMY ONLY
INCREASES.
Thought Leadership
community led by the Russian Union of
Industrialists and Entrepreneurs (RSPP)
supported such priorities in the B20 White
Book the list of recommendations,
presented at G20 Summit last September.
Most of them were reected in the Summit
documents and formed the basis for B20s
processes under the Australian presidency.
The business community came to the
conclusion that its time for international
regulators to pause, take stock and align to
ensure their agenda is coherent, consistent
and working as intended. The B20 members
drew the attention of standard setters to the
fact that instead of wider nancial inclusion,
some Basel III requirements lead to nancial
exclusion of important categories of market
participants. Increased supervisory and
enforcement activity of regulators seriously
affected SMEs, innovators and developing
countries, all feel discriminated against by
the new rules for risk weighting of assets
and higher reserve requirements.
32_34_G20_ICC_RSPP_Preskin.indd 32 27/06/2014 18:51
Authored by: O.M.Preksin
Oleg M. Preksin outlines details of the economic
challenges facing the G20 leaders in Australia.
Financial issues within the
global agenda from Russia
B20 Sherpas point of view
F
inancial issues have always been
a focus of global leaders activities,
especially within the Group of Twenty
(G20). First, because this institution
emerged as an upgrade of well-established
working format for nance ministers and
central banks governors from the leading
economies. Second, because their dialog
switched to the top level at the time of the
most destructive nancial crisis in modern
history. Financial themes prevailed, but the
substance of dialogue gradually changed.
The initial calls for radical nancial reforms
evolved to regulatory modications that ought
to preserve a traditional state of order. The
willingness of standard setters to change the
system that led to the severe global crisis and
could provoke its reiteration was toned down
as the world seemed to pass the worst and
the signs of recovery strengthened in
mature economies.
G20 concentrated most efforts promoting
Basel III regulation in relation to banks
leverage ratios and risk weighting of assets,
addressing the too big to fail issue of
G-SIFIs and resolution plans for these
institutions, approaching shadow banking
and reducing systemic risks arising from
OTC derivatives markets.
The global development issues
corresponding to the UN Millennium
Development Goals (MDG) were also on
the agenda. These are reected in the G8
Lough Erne Accountability Report (Keeping
Our Promises) and in Saint Petersburg
Accountability Report on G20 Development
Commitments both issued in 2013.
However, a number of MDG have not
yet been reached.
Russian presidency in the Group of Twenty
paid high attention to the nancial aspects of
sustainable growth and job creation, adding
new themes to G20 agenda. Among those
the availability of nancing for investment,
government borrowing and public debt
sustainability. The international business
STRONG
FINANCIAL
IMBALANCES
REMAIN AND THE
NUMBER OF RISKS
FACED BY THE
ECONOMY ONLY
INCREASES.
Thought Leadership
community led by the Russian Union of
Industrialists and Entrepreneurs (RSPP)
supported such priorities in the B20 White
Book the list of recommendations,
presented at G20 Summit last September.
Most of them were reected in the Summit
documents and formed the basis for B20s
processes under the Australian presidency.
The business community came to the
conclusion that its time for international
regulators to pause, take stock and align to
ensure their agenda is coherent, consistent
and working as intended. The B20 members
drew the attention of standard setters to the
fact that instead of wider nancial inclusion,
some Basel III requirements lead to nancial
exclusion of important categories of market
participants. Increased supervisory and
enforcement activity of regulators seriously
affected SMEs, innovators and developing
countries, all feel discriminated against by
the new rules for risk weighting of assets
and higher reserve requirements.
Concerns have been expressed that
the global rules setters give insufcient
consideration to the impact of regulatory
requirements on emerging economies.
An independent report on the cumulative
impact of the new rules on nancial systems
capacity to contribute to growth would be
helpful. It becomes obvious that Basel
capital and liquidity requirements should be
reviewed, to ensure that they do not impose
severe restrictions on SME loans, trade
nance, long term infrastructure investment
or capital inow to emerging economies.
But a free capital ow could be dangerous
if it has a speculative background and so
direct investment and speculations should
be treated differently. The standard setting
bodies are also expected to secure greater use
of cost/benet analysis and arrange post
implementation reviews.
Some fundamental G20 decisions, such as
the one for new IMFs quotas, voting power
and governance, which was taken in 2010,
remained implemented for years. And there
Biography
Oleg M. Preksin is
B20 Sherpa for Russia
& Deputy Chairman
of Committee
for International
Cooperation, Russian Union of
Industrialists and Entrepreneurs (RSPP);
Vice President of the Association
of Russian Banks (ARB); Senior
Advisor to Renova Group; Chairman
of Supervisory Committee-Member
of the Board of Directors, Bank of
Settlements and Savings: Board Member
of Energotransbank; Advisor to Rector
of Financial University under the
Government of the Russian Federation.
THE GAP BETWEEN THE FINANCIAL
SPHERE AND REAL ECONOMY IS
BECOMING MORE CHALLENGING, NOT
ONLY FROM THE GENERAL BALANCE OF
POWER POINT OF VIEW, BUT ALSO ON
THE EXPECTATIONS THAT FINANCIAL
INSTITUTIONS ARE TO FULFILL THEIR
KEY FUNCTIONS IN SUPPORTING
GROWTH AND DEVELOPMENT.
is a growing understanding that the one-
size-ts-all approach in G20 decision making
is not-applicable to every economy.
The gap between the nancial sphere and
real economy is becoming more challenging,
not only from the general balance of power
point of view, but also on the expectations
that nancial institutions are to fulll their
key functions in supporting growth and
development. Strong nancial imbalances
remain and the number of risks faced by the
economy only increases. The core nancial
reforms are inevitable and the sooner the
international community begins to prepare
and execute these - the better.
Combined and well-balanced investment in
productive capacity and infrastructure seems
to be the best way to contribute effectively
to global recovery. And there is no need to
choose between public and private sector
investment in most cases both sources
of nance will need to be tapped and
compliment to each other in various PPP
forms, facilitating risk-sharing.
To support the reform process, governments
will need to improve their impact analyses
and regulatory consultation practice with
business. Independent preliminary assessment
of the potential impact of new regulatory
measures seems to be a step in the right
direction.
To encourage further interaction on
the global agenda between the authorities,
business community and other outreach at
national, regional and broad international
levels, a network of public and private
dialogue centers would be helpful in opening
new opportunities to overcome global
challenges and establish momentum for
sustainable growth and high employment.
ICC Feature / Global Commerce
Authored by: Jamal Malaikah
The G20 agenda, together with with the WTO, needs to work to foster
the development of a more laissez-faire trade system that allows greater
transparency and openness in both tarif and non-tarif transactions.
How the G20 and B20
can work to resolve
commerce barriers
B
usiness leaders around the globe
view the G20 as a platform that can
effectively lead policy coordination to
address economic and trade imbalances
that have been exposed during the global
nancial crisis. The G20 can resolve
remaining imbalances by emphasizing that
stimulating the ow of goods across borders
ultimately supports growth and creates jobs.
The business community applauds the
G20 governments efforts to shape policy that
allows prosperity not only to developed and
emerging countries but also to developing and
least-develop countries. Economic theory and
practices prove that policies that encourage
globalization bring better returns than policies
that primarily focus on local development.
While mindful of domestic economic and
social realities, G20 governments must
continue to strive to develop comprehensive
disciplines that will facilitate exchanges
between both companies and individuals.
Dialogue between the business community
and G20 governments is vital in shaping
practical economic and trade policies
THE BUSINESS COMMUNITY CALLS ON G20 GOVERNMENTS
TO AGREE TO FURTHER STRENGTHEN THE MULTILATERAL
TRADING SYSTEM THAT IS EMBODIED BY THE WORLD TRADE
ORGANIZATION (WTO) AND DEVELOP A NEW GENERATION OF
COMPREHENSIVE MULTILATERAL TRADE AND INVESTMENT
AGREEMENTS THAT WILL BRING OPPORTUNITIES FOR
GROWTH AND BALANCE TO ALL REGIONS.
Thought Leadership
for the greater benet.
Accordingly, the G20 agenda should
emphasize the business communities
trade-related recommendations, expectations,
and priorities.The G20 governments must be
aligned in their domestic recommendations
that respond to international trade challenges.
Such alignment in trade recommendations
among the G20 is key to promote robust and
sustainable growth in all countries, regardless
of their level of development.
Improving the environment, so as to allow
for the growth of international trade ows,
requires willingness and effort on the part
of G20 governments with the support of the
business community. The Bali Package that
was negotiated by WTO members at the end
of last year and concluded in the last hour is
a good example of the importance and force
of political will. The business community
calls on G20 governments to agree to further
strengthen the multilateral trading system that
is embodied by the World Trade Organization
(WTO) and develop a new generation of
comprehensive multilateral trade and
investment agreements that will bring
opportunities for growth and balance to all
regions. In pursuit of this objective, the WTO
must have a proactive rather than a reactive
role. It must ensure that the international
environment is suited to meet tomorrows
challenges by allowing for greater
transparency and openness.
Today, enterprises of all sizes are
vulnerable to tariff and non-tariff barriers.
Despite reductions, tariffs remain a
signicant barrier to trade and have a
substantial cost for exporters and importers
alike. They affect the competitiveness of
industries and their ability to innovate. The
G20 should therefore give special attention to
the multilateral removal of tariffs as bilateral
and regional preferential trade agreements do
not provide a far-reaching solution.During the
Doha Ministerial Conference, WTO members
agreed to negotiations to reduce or as
appropriate eliminate tariffs, including the
reduction or elimination of tariff peaks, high
tariffs, and tariff escalation, as well as non
-tariff barriers, in particular on products
36_38_G20_ICC_Nat_Pet_Malaikah_Barriers.indd 36 27/06/2014 18:55
How the G20 and B20
can work to resolve
commerce barriers
of export interest to developing countries.
G20 governments should support the immediate
resumption of the negotiations on market
access for non-agricultural goods (NAMA).
Attention is also required in these
negotiations to the removal of non-tariff
barriers that play an increasing role in
restricting trade. The promising work
undertaken within the NAMA negotiations
in the last decade must be pursued. WTO
Members had submitted proposals covering,
in particular, chemical substances and
preparations for which sufcient information
is available and which pose minimum risk
to human health and the environment.The
proposals identied obstacles concerning
substance labeling requirements;
requirements with regard to conformity
assessment procedures; substance registration
and cost registration; and laboratory
accreditation. Basic parameters were
proposed to dismantle the obstacles identied.
Failure to remove non-tariff barriers will
signicantly weaken growth at a time
when it is most needed.
If tariff and non-tariff barriers are lowered
or removed, even on sectoral basis, it will
send a strong signal to the business
community that will contribute to healthy,
fair trade ows and bring less uncertainty
to global trade.
Lastly, the G20 must continue to condemn
all protectionist measures, including the
abusive use of trade remedy instruments.
With over 35 percent of cases concerning
chemicals and plastics, the chemical industry
greatly suffers from the unjustied initiation
of trade remedy investigations and the
imposition of unwarranted trade remedy
measures. Multilateral disciplines must
continue to be reviewed and improved to
ensure that anti-dumping, anti-subsidy
and safeguard measures are only imposed
in exceptional circumstances and are
balanced. Measures cannot be repeatedly
extended particularly in the absence of
imports. Also, the WTO, in the least, needs
to be rm in its response to members
imposition of all protectionism measures
and encourage and reward policies towards
liberalization.
Global trade reform is a condition for
economic and trade development within
and amongst G20 members and beyond.
Biography
Jamal Malaikah has
been the President
of the National
Petrochemical
Industrial Company
(NATPET) since 2007. Malaikah is
a Board member of Alahli Takaful
Company (Islamic Compliance
Insurance), and Board member of
the Petrochemicals Manufacturer
Committee (Saudi Arabia).
At ICC, Malaikah is a member of G20
CEO Advisory Group and 2014 B20
Trade Taskforce.
FAILURE TO REMOVE NON-TARIFF
BARRIERS WILL SIGNIFICANTLY
WEAKEN GROWTH AT A TIME
WHEN IT IS MOST NEEDED.
T HE
B R I D L E H I D E
COL L EC T I ON
E T T I NGE R . CO. UK
Ettinger_Bridle_FP_G20_Jul14_279.4x215.9.indd 1 06/06/2014 16:52
39_G20_ADVERT_Ettinger.indd 39 27/06/2014 18:58
ICC Feature / Future of Argentina
Authored by: Eduardo Eurnekian and Javier Milei
Eduardo Eurnekian and Javier Millei outline the
countrys challenges in resource development and
food production to feed and manage a growing
population in its increasingly urbanizing future.
Argentina:
Back on Track to
the Promised Land
B
eyond its continuous cyclical and
idiosyncratic challenges, Argentinas
desire for long term-sustained
development sits upon its staggering
endowment of natural resources and available
human capital. It represents an opportunity in
itself, especially if we draw the lens while the
world is struggling with the consequences
of demographic change. If the potential for
increasing the capital stock (implying high
rates of return on investments), short levels
of actual government debt and low asset
prices across the market is to be added, one
cannot but see solid foundations for strong
investment-driven growth, thereby generating
value for both business and consumers.
As from 2010, for the rst time in history,
more than half of the worlds population now
lives in urban centers. In 2012, 82 percent of
the U.S. population lived in cities while in
Mexico, Brazil, Russia and Japan that
percentage was measured at 78, 87, 73 and
92 percent respectively. Interestingly enough,
this phenomenon is only nascent in India and
China, where in the former 52 percent of the
population live in cities while in the latter
that percentage comes down to 32. Naturally,
these countries continue their convergence
towards Western levels. In fact, China sees
its urban population increasing at a rate
of 50,000 individuals per day (that means
more than 18 million people annually). This
impressive demographic phenomenon implies
strong future challenges regarding food,
energy, services and the environment.
One major consequence of these challenges
is the loss of productive farmland: during the
last twenty years, Chinas rapid urbanization
with, consequentially, a strong environmental
impact has eliminated 8 million hectares of
former suitable farmland. In comparison, 8
million hectares of land represent three times
Argentinas current corn-production farmland
area. In addition, as more and more people
join the middle class, they no longer look to
produce solely for their own needs but
instead offer their services within a growing
labor market. The middle class in Asia is
currently measured at 500 million people and
forecasted in 3.2 billion people in 15 years.
These phenomena result in a reduction of
land and labor, necessary for sustained food
production. But urbanization and an
enlarging middle class also have an impact on
eating habits. In urban areas, diets become
more meat-intensive, increasing the demand
for animal feed and reducing food self-
sufciency. Indeed, it is estimated that by
2030, Southeast Asia will have to import 26
percent of the food that it consumes, in order
to feed up to 900 million people. Therefore,
the essential feature of Asias urbanization
phenomenon is that the world will have to
face a higher demand for food, while
resources are simultaneously falling.
Naturally, increasing productivity and
human capital in rural activities will be the
only way to solve this conict.
In fact, as estimated by the World Hunger
Index, the total productivity of agricultural
factors should be doubled from the present to
2050 so as to cover the dietary needs of the
Thought Leadership
40_41_G20_ICC Argentina.indd 40 27/06/2014 19:00
Authored by: Eduardo Eurnekian and Javier Milei
Eduardo Eurnekian and Javier Millei outline the
countrys challenges in resource development and
food production to feed and manage a growing
population in its increasingly urbanizing future.
Argentina:
Back on Track to
the Promised Land
B
eyond its continuous cyclical and
idiosyncratic challenges, Argentinas
desire for long term-sustained
development sits upon its staggering
endowment of natural resources and available
human capital. It represents an opportunity in
itself, especially if we draw the lens while the
world is struggling with the consequences
of demographic change. If the potential for
increasing the capital stock (implying high
rates of return on investments), short levels
of actual government debt and low asset
prices across the market is to be added, one
cannot but see solid foundations for strong
investment-driven growth, thereby generating
value for both business and consumers.
As from 2010, for the rst time in history,
more than half of the worlds population now
lives in urban centers. In 2012, 82 percent of
the U.S. population lived in cities while in
Mexico, Brazil, Russia and Japan that
percentage was measured at 78, 87, 73 and
92 percent respectively. Interestingly enough,
this phenomenon is only nascent in India and
China, where in the former 52 percent of the
population live in cities while in the latter
that percentage comes down to 32. Naturally,
these countries continue their convergence
towards Western levels. In fact, China sees
its urban population increasing at a rate
of 50,000 individuals per day (that means
more than 18 million people annually). This
impressive demographic phenomenon implies
strong future challenges regarding food,
energy, services and the environment.
One major consequence of these challenges
is the loss of productive farmland: during the
last twenty years, Chinas rapid urbanization
with, consequentially, a strong environmental
impact has eliminated 8 million hectares of
former suitable farmland. In comparison, 8
million hectares of land represent three times
Argentinas current corn-production farmland
area. In addition, as more and more people
join the middle class, they no longer look to
produce solely for their own needs but
instead offer their services within a growing
labor market. The middle class in Asia is
currently measured at 500 million people and
forecasted in 3.2 billion people in 15 years.
These phenomena result in a reduction of
land and labor, necessary for sustained food
production. But urbanization and an
enlarging middle class also have an impact on
eating habits. In urban areas, diets become
more meat-intensive, increasing the demand
for animal feed and reducing food self-
sufciency. Indeed, it is estimated that by
2030, Southeast Asia will have to import 26
percent of the food that it consumes, in order
to feed up to 900 million people. Therefore,
the essential feature of Asias urbanization
phenomenon is that the world will have to
face a higher demand for food, while
resources are simultaneously falling.
Naturally, increasing productivity and
human capital in rural activities will be the
only way to solve this conict.
In fact, as estimated by the World Hunger
Index, the total productivity of agricultural
factors should be doubled from the present to
2050 so as to cover the dietary needs of the
Thought Leadership
THE MIDDLE
CLASS IN ASIA
IS CURRENTLY
MEASURED AT 500
MILLION PEOPLE
AND FORECASTED
TO BECOME 3.2
BILLION PEOPLE
IN 15 YEARS.
new population structure. Recent data has
shown that biotechnology is on the right
path to solve this problem by fostering higher
yield and, at the same time, decreasing the
characteristic volatility in food production.
In addition, the use of biotechnology
has shown a dramatic reduction in the
implementation of chemicals and the
toxicity side-effects, rendering the food
production process more sustainable and
ensuring the coverage of increasing
food requirements. However, investment
opportunities in Argentina will not be limited
to the food sector. Research shows that its
infrastructure needs in the next ten years will
require investment of up to USD 295 billion
(86 percent of Argentinas GDP in 2012).
Demand for road transport works, electricity
and oil & gas represent 68% of this total.
Immediate needs for the oil & gas sector
(including downstream) sum up USD 107bn,
allocating USD 29.7bn to conventional oil &
gas, USD 29.3bn to shale oil, USD 34.7bn to
shale gas and approximately USD 14bn to
downstream activities. Regarding electricity,
investment demand stands at USD 36bn,
allocating USD 24bn to generation and
USD 12bn to distribution. In addition,
corresponding modernization and
maintenance demands reach USD 50bn.
Current needs for road works are estimated at
USD 58bn, railways and subways at USD
34.5bn, water and sanitation at USD 6.5bn
and mobile phone infrastructure at USD 1bn.
All in all, if Argentina manages to attract
this investment, its growth rate will increase
to levels of 7 percent, with real GDP doubling
over the course of the next decade. Naturally,
this is where long term policy planning becomes
essential in order to rebuild the institutional,
political and economic framework that is
friendly to private capital and keen to overcome
the current investment gaps. Therefore, if
Argentina succeeds in achieving these basic
standards, fundamentals for shaping an
incentive-compatible institutional framework,
the way to convergence will no longer
be a chimera.
Biography
Javier Milei
is a Graduate
in Economics
(Universidad de
Belgrano, Argentina)
has two Master degrees in Economics
(Universidad Torcuato Di Tella and
CEDES/IDES). Is currently Head
Economist at Corporacin Amrica and
a B-20/G-20 Advisor. As from 2012, leads
the Department for Economic Studies
at Fundacin Acordar, an Argentine
think tank.
Has been Head Economist at Maxima
AFJP, Senior Economist at HSBC
Argentina, and Argentine Government
Advisor to the ICSID (2005-2007). Is
the author of more than 50 academic
papers (two of them together with
William Baumol) and three books. His
latest, Poltica Econmica Contrarreloj
(Counter-clock Economic Policy) was
published in January 2014.
Biography
Eduardo Eurnekian
is an Argentine
entrepreneur and
is the President of
Corporacin Amrica,
Board-member of the
ICC, and Chairman
of the International Raoul Wallenberg
Foundation.

He initiated his career in the textile
industry to later create a multi-media
company in Argentina.

Since 1998, Corporacin Amrica has
grown into a global holding company
diversifed in airport management,
infrastructure development, fnancial
services, energy, wine and microchip
production. Corporacin Amrica
currently operates 53 airports in
Argentina, Italy, Armenia, Ecuador, Peru,
Brazil and Uruguay and is championing
the Biocenico Aconcagua project, a 52
km-long tunnel across the Andes, linking
Chilean harbours with South Americas
most productive region.
ICC Feature / Energy Security
Authored by: Zola Tsotsi
Thought Leadership
44_46_G20_ICC ESCOM.indd 44 27/06/2014 19:05
Can Africa cope with the increasingly explosive demands
for energy and pave the way for a sustainable global future?
Meeting the
energy demands
of the future
P
rojections of global energy demands
suggest that emerging economies are
expected to account for more than
90% of the worlds total energy
demand in 2035. It is against this background
that the discussions and preparations for
the energy demands of the future should be
taking place now. However, these debates
and preparations should be taking place
within a climate expansion on, and saving
of, the energy resources we currently have.
For Africa, this means going beyond a solar
panel outside a home, where people then
have to choose among heating, cooking, or
listening to the radio. It is about enabling
communities to do all of these things at the
same time, if necessary. It is about growing
communities, enabling economic growth,
achieving socio-economic upliftment,
and doing all of this while protecting
the environment and pursuing a lower
carbon growth.
Africa, as a continent, is a low emitter of
greenhouse gas emissions, but is one of the
most vulnerable continents to the impacts
of climate change due to its geographical
location and poverty levels which means
that the ability to respond quickly to disasters
is compromised. Due to the nature and reach
of the electricity business, the sector itself
remains very vulnerable. Pursuing a
sustainable energy future for Africa is,
therefore, about meeting a number of
interlinked imperatives.
44_46_G20_ICC ESCOM.indd 45 27/06/2014 19:05
Sustainable Energy for All initiative (SE4All)
run by the UN Secretary-Generals ofce.
The goal is to facilitate 100 million new
connections worldwide by 2025. This starts at
home, where we are involved in a number of
partnerships in developing an electrication
roadmap for Southern Africa. The aim is to
deliver the 35 million connections that are
required in the SADC region and, thereafter,
to replicate the roadmap in other regions.
This is an exciting initiative that will go
a long way to turning the tide for Africa.
Sustainable energy access translates
into sustainable economic growth, poverty
eradication, and the opportunity for equitable
growth in the region. With this comes the
belief that the continent can rid itself of
the stigma of being a risky place to
do business.
AFRICAN
POWER UTILITIES
ARE INCREASINGLY
AWARE OF THE
GLOBAL ENERGY
TRENDS THAT
HAVE A DIRECT
IMPACT ON THE
CONTINENT.
Biography
Andile Zola Tsotsi
has been serving
as the Chairman of
Eskoms Board of
Directors since June
2011. He obtained a Bachelor of Science
in Mathematics and Chemistry from the
the then UBLS (University of Botswana,
Lesotho and Swaziland)in 1970. He
was then appointed as a research
assistant and a lecturer at the University
of Zambia for a period of three years.
In 1974, he was awarded an honours
degree in Chemical Engineering by the
University of Surrey in the
United Kingdom.
Tsotsis career began in the Process
Division of Universal Oil Products (UOP)
in Illinois in the United States of America,
where, on joining, he was immediately
assigned to the parent ofce for training.
He has had an illustrious career in
business.
He was appointed Chairman of the
Board of Eskom in July 2011. Tsotsi is
passionate about transformation.
African power utilities are increasingly
aware of the global energy trends that have
a direct impact on the continent. The global
energy landscape is changing; there is a
growing reticence regarding nuclear power
in some countries, a resurgence of oil and gas
in others, and continued growth in wind and
solar power, while coal remains steadily in
the background. Energy demand is barely
rising in the developed countries, while the
developing countries are becoming more
and more power hungry. In this, lies the
opportunity for the African continent
to shine.
Africa has an abundance of primary energy
resources that could easily meet the needs
of the continent and beyond in a sustainable
manner. Resources range from hydro, to solar,
to gas, to coal and nuclear. The abundance
44_46_G20_ICC ESCOM.indd 46 27/06/2014 19:05
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47_G20_ADVERT_WCF.indd 47 27/06/2014 19:08
IN THE PAST 20 YEARS THE INTERNET HAS CONNECTED
2.5 BILLION PEOPLE TOGETHER. IN THE COMING 8 YEARS,
THIS NUMBER WILL DOUBLE. CONCURRENTLY THE
INTERNET WILL CONNECT 40 BILLION MACHINES TO
THOSE 5 BILLION CONNECTED PEOPLE.
ICC Feature / Future of Energy
Authored by: Jean-Pascal Tricoire, Chairman & CEO of Schneider Electric
Jean-Pascal Tricoire comments on newfound issues with
increasingly decentralized energy systems and his optimism
for the future of global energy .
The new world of energy:
Digital, local and
consumer focussed
T
he energy world is changing.
From a concentrated and centralized
system discovered in 1888, the
energy system is evolving to a
decentralized system with diverse energy
generation sources. There are two main
factors causing this transformation: the
introduction of information technology in
the energy sector, and the emergence of
alternative energy generation sources
at scalable levels.
The convergence of information
technology and energy
In the past 20 years, the internet has
connected 2.5 billion people together and in
the coming 6 years, this number will double.
Concurrently, the internet will connect 40
billion machines to those 5 billion connected
people. The next stage of connectivity is
about machines. The combination of IT
software with electrical devices and products
provides customers with real-time information
and smart services that allow all stakeholders
an opportunity to implement active energy
Thought Leadership
efciency, share better energy, and consume
at the right moment across smart grids.
Alternative energy generation sources
From the shale-gas boom in America to the
rise of renewable in the energy mix, energy
sources are widening and reaching scalability.
The price of crystalline silicon photovoltaic
cells, for instance, have gone from USD 78 per
watt to USD 0.72 in less than 4 decades (1978
to 2013, BNEF). Policy driven markets have
facilitated the deployment of these technologies
that are reaching grid-parity in many markets.
As of the rst quarter of 2014, there are 79
countries where price of photovoltaic electricity
is equal to or less than the grid average price
(Al Gore, http://www.politico.com/).
This wider choice in energy generation
sources, combined with the emergence of
information technologies in the energy sector,
are redening the energy ecosystems on demand
and supply side, and paving opportunities of
increased efciency at all levels, from people
to power plant, to ensure a complete
optimization of the supply chain.
Impact on the entire energy chain
For consumers, the connection of
energy systems, phones and machines,
in everyday life provides real-time
information on consumers needs and
offers an opportunity to control their
consumption. It reduces the consumers
energy bill, and increases their purchasing
power within a very short pay back. Access
to real time information and exible,
connected devices, allow consumers to
change their consumption patterns. They
are empowered to choose when, what and
how they consume energy, presumably
when electricity is cheap and green.
At the utilities and regional level, energy
efciency enables increasingly reliable
supply and provides hedging against black
outs. It also saves signicant amounts in
investments costs by avoiding the creation
of new plants. Energy efcient technologies
also save signicant amounts by increasing
resilience, security and anticipation of
extreme weather conditions. Utilities can
connect supply and demand, and offer new
48_50_G20_ICC_Schneider.indd 48 27/06/2014 19:10
services to their customers, so that they
consume less and at a more optimal time.
At a country level, the implementation of
higher energy efciency levels creates an
economic opportunity for reduced public
expenditure as Governments balance their
energy trades that are causing major strains
on the economy. The EU energy balance has
multiplied by 6 in 10 years, with oil imports
alone reaching USD 500bn in 2012 (Enerdata,
2013).The Efcient World Scenario put
forward by the World Energy Outlook of the
IEA, highlights that there could be USD 570Bn
positive effect of the Energy Balance of 5 key
regions, with China seeing USD 190Bn and
India USD 110Bn of positive effect, through
the implementation of a higher energy
efcient scenario; as well as a huge potential
for job creation, with estimates ranging from
800,000 to 1 million jobs by 2025 in a country
like France (Ademe, OFCE, 2013).
Power the People
Individuals are at the center of this new
energy world, where roles are redened. No
doubt, utilities must keep their central role in
this evolution and they are already rethinking
the way they operate and address customers.
Customers are changing in needs, behaviors
as well as demands.This transition needs
solid change management to avoid over-
production. All stakeholders, utilities, cities,
facility managers, technology suppliers,
should be prepared to continue an evolution
in their roles, in business models and in
technology offers. The transformation places
consumers at the center and opens the way
for new models of consuming energy
and managing resources. A reliable and
simple technology is needed to guide all
through the various transitions.
Technologies exist to harness
this efciency at all levels
The evolution of technologies, through
software and the internet of Things, are
opening new means of optimizing the overall
energy chain through systems of integration.
Such systems ensure that energy is safe,
reliable, green, and efcient for the least
amount of money. Already, by using the
Internet to connect people to their
environment, and their environment to the
smart grid, by switching off automatically, by
promoting consumption when energy is cheap
and green, at least 30% savings is achieved
through energy efciency measures that do not
involve major renovations or disturbances to
the end-users. All this with paybacks under 5
years. Software now allow the curtailment of
peaks. As an example, Schneiders EnergyPool
has curtailed over 1.7GW of energy since its
inceptionequivalent to 1 nuclear reactor.
Customers in buildings, industry, data-centers
and infrastructures are offered a range of
technologies, from products to systems and
solutions, that restrain energy use and allow
saving energy throughout the entire chain.
While we should embrace cost-effective
tactics to confront some of the major
challenges of our generationfrom resource
scarcity, trafc congestion, pollution, and an
increase in extreme weather conditions, as
well as energy poverty and competitiveness
estimates show that over 2/3rd of energy
efciencys cost-effective potential is still
not being implemented.
Change is now
Market failures and resistance to change
explain this untapped potential.
Pay back times are short, within a few
years, and investments are refunded by
savings. Governments should create
environments to facilitate the implementation
of energy efciency and smart grids. They
should enforce a level-playing eld and
ensure that all energy markets are free and
competitive, notably by halting subsidies of
fossil fuel technology.
1
Transitions can be long. But this one is
worthwhile, and should be happening faster
as it brings benets to all: Carbon emissions
reduction, consumer purchasing power, job
creation, and country balance of payments
and capital expenditure avoidance. It is time
to power the people and unleash a new
world of energy that is digital, local and
consumer focused.
1
Estimates show that there are still yearly subsidies of over
USD 500bn in fossil fuel generation and some renewable
subsidies are no longer justifed.
Biography
Jean-Pascal Tricoire,
50 years old, joined
Schneider Electric
in 1986. He was
appointed President
and Chief Executive Ofcer in 2006 and
named Chairman & CEO in April 2013.
His career at Schneider Electric has
developed largely outside France in
operational functions in Italy, China,
South Africa and USA. Within the
General Management, he served as Vice
Executive President of the International
Operating Division from 2002 before
being appointed in 2004 Chief
Operating Ofcer (COO).
Moreover, Jean-Pascal is President of the
France-China Committee since 2009.
Jean-Pascal holds a degree in Electronic
Engineering and a MBA.
UTILITIES CAN
CONNECT SUPPLY
AND DEMAND,
AND OFFER NEW
SERVICES TO THEIR
CUSTOMERS,
SO THAT THEY
CONSUME LESS
AND AT A MORE
OPTIMAL TIME.
Schneider Electric
51_G20_ADVERT_Schneider.indd 51 27/06/2014 19:12
ICC Feature / Global Economy
Authored by: Antonio Estrany y Gendre
Capitalism, proven to be the most efective human system
in the allocation of goods and resources, needs to better
facilitate emergency situations to ensure a quicker return
to economic growth and development.
The need to preserve
the genuine instruments
of progress

T
hroughout history, civilizations
have developed without contributing
substantial improvements to the
living standards of the worlds
population. Circumstantial discoveries such
as the wheel or the gunpowder have hardly
fostered advances in the global conditions.
The civilization that Spengler used to
call Western, which today might be called
world, has caused a profound change in
the history of humankind, as it generated a
number of resources that would have been
unimaginable in previous civilizations. The
conjunction of the capitalist system with the
ndings of experimental science have made
it possible to accumulate virtually unlimited
wealth to such an extent that the world
capital accumulated in recent decades
dramatically exceeds the total produced
throughout all previous civilizations.
This wondrous growth has been possible
thanks to an instrument that constitutes the
essence of capitalism: the market. Today there
is almost worldwide consensus that the
market is the best imaginable system for the
allocation of production-related resources.
The gradual incorporation of all the countries to
the World Trade Organization, which requires
precertication of its members as market
economies, is sufcient proof of this reality.
The fact that the market system has
eventually established itself as ideal for the
allocation of production factors does not
mean that it offers appropriate solutions
to all the problems of the economy. The fair
distribution of what is produced inevitably
requires prudent actions by public authorities,
whose intervention may also be necessary to
correct the disparities arising from business
cycle alternatives and other unforeseen
emergencies.
It is well known that the process of
production, distribution and consumption
is not static but evolves over expansion and
contraction cycles. Additionally the world
economy in our days is characterized by
increasing globalization, which implies
degrees of homogenization and integration,
and therefore more possibilities to participate
in global growth during periods of expansion
cycles, but also risks that the difculties or
disorders from other countries may spread
globally in any crisis that may arise during
contraction periods.
The size of the current world economy
poses new challenges to its governance as
a result of said globalization process. The
depressive phase of the global economic cycle
we are going through has led to extraordinary
international political decisions of which the
creation of G20 is good evidence. Without
a doubt, emergencies caused by wars are
inevitable, while other circumstances
occurring at present might just as well
lead to exceptional decisions.
During the two world wars of the last
century, the destruction costs of directly
affected countries were huge, and perhaps
their magnitude and severity resulted in other,
less immediate and less visible costs going
unnoticed, though they also hit hard and
delayed world recovery. All affected countries
were forced to implement a series of
measures that were collectively regarded as
war economies to cope with their most
urgent needs. Price controls, rationing, export
and import bans, stiffer government permits,
etc. interfered in the countries economies
and replaced the market mechanisms with
central planning systems. It took quite some
time to assess the cost of these measures
fully; restoration of the market system was
slow and expensive due to the obstacles
placed by the remnants of obsolete
protectionism, some of which is still reluctant
to disappear either due to individual or
sectorial interests, and the lack of perception
of a global economic future.
Today the world feels it is just coming out
of a deep crisis that had a strong impact on
all countries. The coincidence of the
depressive phase of the global economic
cycle and the particularly hard situation of
countries such as the United States and those
of the European Union stepped up concerns
in all countries. The problems arising from
the subprime mortgage crisis in the United
States, along with the delicate situation in
several member countries of the European
Union and the increasing perception - that the
creation of the Euro zone should have been
accompanied by some kind of agreement
towards the joint development of budgetary
and economic policy commitments -
certainly justied these concerns.
It was only logical that, in such situations,
the countries would decide to establish a High
Level Group to propose emergency measures
in light of the unforeseen problems that might
emerge from the existing situation. The G20,
Thought Leadership
52_53_G20_ICC Instruments of Progress.indd 52 27/06/2014 19:13
Authored by: Antonio Estrany y Gendre
Capitalism, proven to be the most efective human system
in the allocation of goods and resources, needs to better
facilitate emergency situations to ensure a quicker return
to economic growth and development.
The need to preserve
the genuine instruments
of progress

T
hroughout history, civilizations
have developed without contributing
substantial improvements to the
living standards of the worlds
population. Circumstantial discoveries such
as the wheel or the gunpowder have hardly
fostered advances in the global conditions.
The civilization that Spengler used to
call Western, which today might be called
world, has caused a profound change in
the history of humankind, as it generated a
number of resources that would have been
unimaginable in previous civilizations. The
conjunction of the capitalist system with the
ndings of experimental science have made
it possible to accumulate virtually unlimited
wealth to such an extent that the world
capital accumulated in recent decades
dramatically exceeds the total produced
throughout all previous civilizations.
This wondrous growth has been possible
thanks to an instrument that constitutes the
essence of capitalism: the market. Today there
is almost worldwide consensus that the
market is the best imaginable system for the
allocation of production-related resources.
The gradual incorporation of all the countries to
the World Trade Organization, which requires
precertication of its members as market
economies, is sufcient proof of this reality.
The fact that the market system has
eventually established itself as ideal for the
allocation of production factors does not
mean that it offers appropriate solutions
to all the problems of the economy. The fair
distribution of what is produced inevitably
requires prudent actions by public authorities,
whose intervention may also be necessary to
correct the disparities arising from business
cycle alternatives and other unforeseen
emergencies.
It is well known that the process of
production, distribution and consumption
is not static but evolves over expansion and
contraction cycles. Additionally the world
economy in our days is characterized by
increasing globalization, which implies
degrees of homogenization and integration,
and therefore more possibilities to participate
in global growth during periods of expansion
cycles, but also risks that the difculties or
disorders from other countries may spread
globally in any crisis that may arise during
contraction periods.
The size of the current world economy
poses new challenges to its governance as
a result of said globalization process. The
depressive phase of the global economic cycle
we are going through has led to extraordinary
international political decisions of which the
creation of G20 is good evidence. Without
a doubt, emergencies caused by wars are
inevitable, while other circumstances
occurring at present might just as well
lead to exceptional decisions.
During the two world wars of the last
century, the destruction costs of directly
affected countries were huge, and perhaps
their magnitude and severity resulted in other,
less immediate and less visible costs going
unnoticed, though they also hit hard and
delayed world recovery. All affected countries
were forced to implement a series of
measures that were collectively regarded as
war economies to cope with their most
urgent needs. Price controls, rationing, export
and import bans, stiffer government permits,
etc. interfered in the countries economies
and replaced the market mechanisms with
central planning systems. It took quite some
time to assess the cost of these measures
fully; restoration of the market system was
slow and expensive due to the obstacles
placed by the remnants of obsolete
protectionism, some of which is still reluctant
to disappear either due to individual or
sectorial interests, and the lack of perception
of a global economic future.
Today the world feels it is just coming out
of a deep crisis that had a strong impact on
all countries. The coincidence of the
depressive phase of the global economic
cycle and the particularly hard situation of
countries such as the United States and those
of the European Union stepped up concerns
in all countries. The problems arising from
the subprime mortgage crisis in the United
States, along with the delicate situation in
several member countries of the European
Union and the increasing perception - that the
creation of the Euro zone should have been
accompanied by some kind of agreement
towards the joint development of budgetary
and economic policy commitments -
certainly justied these concerns.
It was only logical that, in such situations,
the countries would decide to establish a High
Level Group to propose emergency measures
in light of the unforeseen problems that might
emerge from the existing situation. The G20,
Thought Leadership
TODAY THE
WORLD FEELS
IT IS JUST COMING
OUT OF A DEEP
CRISIS THAT
HAD A STRONG
IMPACT ON ALL
COUNTRIES.
both at summits and at technical meetings
known as sherpas level, has shown great
caution in their actions and consistently
sought the advice of international institutions
such as the International Monetary Fund,
the World Bank and the World Trade
Organization, while also taking into
consideration the recommendations
put forward by the private sector.
Moreover, even though countries are
free to formulate and implement their own
policies, they denitely analyze the issues
raised by the G20 with respect and
consideration. Therefore, it would
surely help if the G20 reminded them of
the lessons learned from past experiences
when exceptional measures are adopted to
deal with emergency situations.
The rst recommendation would be that
emergency measures should always be
temporary. Once their origin has been
overcome, they should be repealed. But
the most important concept to bear in
mind in any emergency is that, once the
emergency is over, it is necessary to
preserve the system that made it possible
to accumulate wealth and constitutes the
groundwork of the capitalist system, which
is a main feature of our civilization. When
faced with emergency measures that interfere
with market mechanisms, we must make
sure that the system will be restored in
due course. If it is clear that the market is the
best mechanism to allocate resources, and
that the private enterprise is the best unit
capable of achieving higher productivity
through competition, there will be no
doubts about how to move from
emergency measures to normal
growth and development.
Biography
Antonio Estrany
y Gendre is an
Argentine economist
and diplomat,
specialized in
international afairs. He is President
of AXION Energy (former ESSO
in Argentina, Paraguay, Uruguay)
and member of the Board of Bridas
Corporation. Besides he is the President
of the CICYP (Consejo Interamericano
de Comercio y Produccin) in Latin
America and Vice-President of the CARI
(Consejo Argentino para las Relaciones
Internacionales). He is member of
the Advisory Board of the Center for
Strategic and International Studies
(CSIS), in Washington. He is former
Co-President of the Mercosur European
Union Business Forum (MEBF) and
member of the Argentine National
Committee of the International Chamber
of Commerce (ICC).
During seven years he has been
Secretary of State for International
Economic Relations and ambassador
in Geneva for the GATT negotiations.
He became Alternate Governor of
the World Bank and has presided on
many opportunities over the CECLA
(Comisin Especial de Coordinacin
Latinoamericana).
ICC Feature / Danfoss
Authored by: By Niels B. Christiansen
Modern infrastructures
help drive development
N
o Man is an Island, wrote the
English poet, John Donne, in
1624. This statement still holds
true today. It could even be a
slogan for this years G20 summit. The fact is
that global megatrends concern us all, and if
they present a challenge in one part of the
world, a solution is likely to exist in another
part. And as decision-makers from across the
world meet up at the G20 summit to discuss
ways to drive global sustainable growth, they
can help ensure that these solutions are put
into play just where they are needed most.
Examples of megatrends that generate a
growing need for solutions are urbanization
and a growing population. These trends
spur on a demand for modern infrastructure,
food safety, efcient energy consumption and
tools to combat climate change. The good
news is that the innovative technologies
which provide the solutions already exist:
technologies that can contribute to driving
development and long-term sustainable growth.
City developers have the opportunity
to get it right rst time
Urban growth plays a key role. Today, half the
worlds population lives in cities, but in 2030,
just sixteen years from now, two out of three
people will have settled in urban areas
1
.
Another key point is that 60% of these future
urban areas have not even been built yet.
The demand for modern infrastructure that
can cater for this development is massive.
This includes roads, energy supply, food
supply chains and water distribution systems.
With this development comes signicant
opportunities. City developers in emerging
markets have the chance to get it right rst
time and achieve great results by choosing
the best innovative solutions to invest in.
By applying modern technologies today,
developers can cater for tomorrows needs
and expand their cities without causing
an explosion of energy consumption.
Therefore, it is vital that they are aware of
what technologies are available within, for
example, district heating and cooling, controls
to regulate heating and air conditioning,
construction and waste water. A lot can be
achieved; Shanghai Tower
3
, for example,
will take a leap forward by applying 6700
new control valves to the heating, ventilation
and air conditioning system of the building,
which is the tallest in China. This will cut
down 20 percent of the energy used by the
system. And adding motor controls will
generate an additional savings of 20-40%.
Chinese city puts surplus heat to good use
The world needs to increase investment in
infrastructure by nearly 60% up to 2030.
Thought Leadership
As decision-makers from across the world meet up
at the G20 summit to discuss ways to drive global
sustainable growth, they can help ensure that solutions
are put into play just where they are needed most.
56_57_G20_ICC_Danfoss.indd 56 27/06/2014 19:18
ICC Feature / Danfoss
However, there is also a lot to gain by
improving the productivity of existing
infrastructures such as power distribution
4
.
A great example is the Chinese city Anshan
4
,
where a comprehensive district heating solution
is being applied, in which surplus heat from the
local steel plant is used as energy. The surplus
heat is channeled into the district heating
network instead of being lost. This means that
over the next four years, coal usage and CO2
emissions will be reduced by 60-90%, and air
quality will be improved for the 1.8million
people who live in the city. At the same time, a
lot of energy and money will be saved too.
The solution could also be applied in many
other cities, and as district heating can utilize
a wide range of energy sources, there is great
untapped potential to be seized so that
even more people across the world can
experience the benets of reduced carbon
emissions, cleaner air and cheaper heating
and cooling.
Innovative technologies provide food safety
The worlds increasing population is another
common focus. Going towards 2050
5
, the
number of people in the world will grow by
a third, putting food safety and minimization
of food waste high on the global agenda.
A staggering one third of all food produced
goes to waste instead of ending up on the
dinner table. There are several means to
reduce this: strengthening cold chains,
upgrading infrastructure and free trade.
Simultaneously, the food sector accounts
for approximately one third of the worlds
energy consumption. This can be reduced by
applying technologies that enable the user
to obtain the required effect with less energy.
Today, innovative technologies can control,
steer and propel agricultural vehicles with
optimal effectiveness so that farming output
is increased and diesel consumption is
reduced. Other solutions keep food fresh
and safe all along its journey to consumers;
motor controls, for example, can reduce the
energy consumption of refrigeration systems
by 15-25% in the dairy, meat and poultry
industries. Refrigeration technology can
optimize the daily operations of supermarkets,
so the risk of poor food quality and waste is
minimized while at the same time energy is
saved. An example is Winn-Dixie
3
, the ninth
largest supermarket chain in the US, which
has installed modern refrigeration system
controllers and services to monitor energy
consumption and ensure food safety. This
project has resulted in Winn-Dixie reducing
energy consumption massively over the last
two years, and many other retailers are
following suit.
THE WORLD
NEEDS TO INCREASE
INVESTMENT IN
INFRASTRUCTURE
BY NEARLY 60% UP
TO 2030.
The G20 summit helps pave
the way for solutions
We have many of the solutions at hand
that can cater for some of todays global
challenges, and at the same time contribute
to growth. Modern technologies that improve
energy efciency can help people and
societies prosper. Energy efciency has
already helped reduce our energy
consumption by 65%
6
since the seventies.
This is way more than achieved by
renewable energy and shale gas put together.
It is also over two thirds less energy that
needs to be paid for and catered for by
power plants or grids.
Maria van der Hoeven, Executive
Director of IEA sums it up, when she says;
Energy efciency is the only fuel that
simultaneously meets economic, energy
security and environmental objectives.
However, for the energy efcient solutions
to come into play to a much greater extent,
an increased awareness of what they can
achieve is essential as well as a positive
political framework. This is where the G20
summit makes the difference; by joining
forces and reaching out to decision-makers
in the eld, G20 delegates can pave the way
for modern infrastructures that will help
drive development and sustainable growth.
It takes awareness, focus and action to open
the door to innovative solutions.
Biography
Niels B. Christiansen
is the President &
CEO of global group
Danfoss A/S, which
produces and sells
an extensive range of energy-efcient
products and services. Danfoss is also a
world leader within mobile hydraulics
and provides solutions for renewable
energy such as solar and wind power.
Niels B. Christiansen has a broad
experience of leading large global
high-tech companies.
He joined Danfoss in 2004, and before
that he was Executive Vice President at
GN Store Nord and President & CEO of
GN Netcom. He has also held leading
positions at McKinsey & Co., and
Hilti Corp., Switzerland.
Niels B. Christiansen has an MSc
in Engineering from the Technical
University of Denmark and holds an
MBA from INSEAD in France.
He is the Chairman of the Board of Axcel
A/S, a member of the Board of Directors
of A. P. Mller-Mrsk A/S and a member
of the Board of Directors of William
Demant Holding A/S.
He is also Vice Chairman of the Board
of the Confederation of Danish Industry
and member of the Board of Directors of
the Federation of Regional Industries
in Denmark.
1
Citygroup: Citi Perspectives, Volume 6, Q1/Q2 2012)
2
Institute for Sustainable Communities: Urban Climate
Adaptation: From Risk Barriers to Results, 2013
3
Danfoss Media Relations (3 cases)
4
McKinsey Global Institute Infrastructure productivity:
How to save $1 trillion a year, 2013
5
UNs Food and Agriculture Organization: Global
Food Losses and Waste. Extent, Causes and Prevention (2011)
and Food wastage footprint. Impact on natural resources.
Summary report (2013).
6
IEA New Policies Scenario
56_57_G20_ICC_Danfoss.indd 57 27/06/2014 19:18
ICC Feature / G20 Priorities
Authored by: Kimball C. Chen, Chairman, Energy Transportation Group
Energy Access:
a G20 Priority for Economic Growth,
Social Development, Political
Stability and Sustainability
I
t is widely accepted that access to
affordable, usable energy is essential
for economic and social development.
Major world institutions, including
the United Nations, the International Energy
Agency (IEA), and World Bank, concur that
there are three top priority energy goals for
the world:
1. Universal access to modern energy,
to benet health and development.
2. Increased energy efciency, to
decarbonize growth.
3. A greater share of renewable energy
in the global energy mix, to increase
sustainability.
These are goals not only for developed
countries but also for the 2.7 billion people
in developing countries who presently lack
access to modern forms of energy such as
electricity, natural gas and natural gas liquids
(LPG). These goals will be recognized and
included in the Sustainable Development
Goals that will succeed the Millennium
Development Goals in 2015.
In the developing world, lack of access
to modern energy causes several major
problems:
1. Smoke from cooking with solid fuels
causes 4 million premature deaths per year
more than HIV, malaria and TB combined
among the 2.7 billion people who lack
access to clean cooking energy.
2. In Africa, harvesting of biomass for fuel
causes 50% of the continents deforestation
less than a decades worth of trees remain
in many key regions.
3. Fuel gathering diverts huge amounts of
time every day away from productive uses
and from education for many of the women
and children among those 2.7 billion people.
4. Lack of lighting causes the work day and
study day to stop after sunset, curtailing
economic activity and educational progress.
5. The solutions to these problems differ greatly
in cost, complexity, and time to carry out.
Providing another one billion people with
access to LPG for cooking and heating on a
commercial basis would require only $12-15
billion of capital investment and could be
implemented in 10 years, with no requirement
for technological breakthroughs. Universal
electrication would take 20 years and cost
up to $700 billion over 20 years (OECD/
IEA estimate).
However, all solutions have been delayed
for want of public-private coordination and
cooperation, with a few notable exceptions.
Indonesia and India, as examples,
undertook major public-private initiatives
which between them have transitioned in just
5 years, 10% of the worlds population to LPG
(200 million people in Indonesia; 500 million
people in India) from traditional, unhealthy
fuels in just 5 years.
Other nations can and must match this
rate and scale of progress.
The G20 nations must continue their
diversication of energy mix and sources to
realize policy goals of security, stability, growth
and climate change mitigation. But the G20
must also add global access to clean, modern
energy as a necessary top-priority goal. The
benets for the entire world will be signicant:
1. Achieving universal access to
affordable energy not only saves lives,
forests and the climate, it also increases
productivity and drives growth.
2. In turn, growth creates larger markets
and strengthens trade and investment
ows for both buyer and seller nations.
3. Growth also moderates disorderly
emigration and political unrest.
4. In turn, shared and sustainable prosperity
is increased for G20 and non-G20 nations
alike when all countries have adequate
access to affordable energy.
Thought Leadership
UNIVERSAL
ELECTRIFICATION
WOULD TAKE
20 YEARS AND
COST UP TO $700
BILLION OVER 20
YEARS (OECD/IEA
ESTIMATE).
Achieving universal access to afordable energy saves lives, forests,
the climate; it increases productivity and drives growth.
Biography
Mr. Chen is Chairman
of Energy Transpor-
tation Group, Inc.,
(ETG) which develops
international liquefed
natural gas (LNG) and liquefed petro-
leum gas (LPG) projects. He presently
serves as Chairman of the Global LPG
Partnership (GLPGP), a public private
partnership leading global eforts to pro-
vide LPG to the 1 billion people who most
urgently need it. Mr. Chen also is the
current President of the World LP Gas
Association (WLPGA), the global LPG
industry association. He advises govern-
ments and international agencies in
regard to LNG and LPG policy issues and
also serves on the International Chamber
of Commerce G20 CEO Advisory Group,
which provide policy recommendations
to G20 heads of state. Mr. Chen gradu-
ated from Harvard University with a B.A.
(Magna Cum Laude) in 1973 and with an
MBA in 1978.
58_G20_ICC ETG.indd 58 27/06/2014 19:19
59_G20_ADVERT_ETG.indd 59 27/06/2014 19:24
M
anagers have ever-changing
needs when it comes to their
education and development as
they look to continue on the
upward trajectory in their career progression.
IE Business School, one of the leading
business schools in the world, has responded
to those needs and ne-tuned its approach to
blended teaching. The results of this change
have been hugely positive, culminating in our
blended Executive MBA being named the best
in the world in 2014 by Financial Times.
The recognition earned by the program has
been the result of a truly innovative process,
following a trial and error approach. At the
same time, we kept a close eye on
developments in the management education
sector and beyond. Developing our blended
educational method was not so much about
inventing a new model, radically different
from traditional teaching. Instead, it was
based upon time-honored methods
combining teaching strategies with
accessible technology.
Furthermore, we understood that involving
our teaching faculty in this process was
essential. We knew that if teachers lacked
the qualications and experience of our
professors, they would not be able to
successfully deliver blended teaching. We
gave support and intensive training to our
faculty about how to teach online. At the
same time, we understood that traditional
teaching materials as well as innovative
teaching tools, needed to be developed by the
same people, rather than being outsourced.
To do this, we set up a special team to help
our professors develop materials such as
multimedia case studies.
Last but not least, the success of these
blended programs does not rely on a magical
technological platform that is able to solve
the challenges associated with the learning
process. As with traditional teaching methods,
the successful outcome is a result of the
interaction between students and staff,
program directors, and the technicians who
keep the platform running. We have been
able to make the blended learning experience
just as satisfying and effective as traditional
methods; it is not about the platform but
the quality of the learning process.
Along the way, we have seen that the
hurdles we have faced while developing our
blended learning method can be overcome
or worked through. One of the greatest
challenges was to ensure that our teaching
staff could dedicate enough time to each
individual following a blended program.
Other online educational providers have
separate tutors for their online programs, but
we ensure that our blended students receive
the same experience as students in the
traditional classroom as they are taught
by the same professors.
Students at IE Business School can
access an online session for several days. Our
experience shows that teachers often end up
putting about four times as much work into
answering students questions and advising
them as they would in a normal classroom
situation. Therefore, the learning momentum
lasts longer than traditional face-to-face
sessions.
Another aspect of our blended programs is
that we require students to nish their studies
within the same time frame as they would if
they were following a face-to-face course.
In other words, they learn as a group and
share the blended experience together. We
feel that this approach builds a stronger sense
of belonging because students establish
rapport with their fellow participants. At a
rst glance, our blended approach might
seem less exible than those at other schools,
which allow participants to complete their
studies over a longer period of time.
However, we believe the benets of
continuous learning far outweigh any
disadvantages and makes for a more
complete educational experience.
Blended format education will continue to
grow and improve in the coming years and I
can see three principal challenges in the future.
Firstly, dealing with market segmentation as
more and more schools seek to set themselves
apart from the mainstream online
competition. Secondly, the need for ongoing
training by teachers to improve their ability
to combine technology with educational
delivery. And nally, developing new content,
formats and networks by making use of the
growing number of new resources and
relationships available through the internet.
I am sure that the future belongs to blended
programs, no matter what challenges arise as
a result of new technologies being developed
and introduced to business schools.
The Future Belongs
to Blended Education
Human Capital / Education
Authored by: Santiago Iniguez, Dean IE Business School
For further information:
www.ie.edu/business
The life of a manager is continually evolving. Their careers change, they move to diferent
companies, and they even switch between diverse sectors. You could say they live blended
lives. Advances are also made in management practices and managers must keep their skills
up to date. Education should also be blended, accommodating these necessities.
Advertisement
62_63_G20_IE BIZ SCHOOL_Advocacy.indd 62 27/06/2014 19:30
THE BENEFITS OF BLENDED LEARNING FAR
OUTWEIGH ANY DISADVANTAGES AND MAKE FOR
A MORE COMPLETE EDUCATIONAL EXPERIENCE.
Above: Santiago Iiguez, Dean of IE Business School
Human Capital / Education
62_63_G20_IE BIZ SCHOOL_Advocacy.indd 63 27/06/2014 19:30
Feature / Food Security
Authored by: Juergen Voegele
Juergen Voegele discusses the evolving needs of
agricultural development and food production
within a changing, modern world.
The Urgency for
Global Action on Food
64_66_G20_Global Food.indd 64 27/06/2014 19:32
The Urgency for
T
he world is changing at an
increasingly faster rate income
growth, shifts in consumption
patterns, climate change, and natural
resource depletion are all occurring faster
now than at any time over the last century
and the responsiveness of our food system
needs to change too if we want to ensure a
sustainable and prosperous future. We need a
food system that can feed every person, every
day, in every country; that can raise incomes
of the poorest people; that can provide
adequate nutrition; and that can better
steward the worlds natural resources.
Urgently, we need a food system that shifts
from being a major contributor to climate
change to being part of the solution.
The amount of food the world consumes
continues to increase with more people to
feed, more calorie intensive diets, and more
use of food crops for biofuels. Added to this
is the high food loss and waste between
farmers elds and dinner plates. World food
prices have increased as grain stocks have
declined. Farmers are responding to higher
prices to produce more, but they are faced
with rising water scarcity, degrading land,
and increasingly extreme weather events. We
need an agriculture and food system that can
adequately respond to the worlds food needs.
Global diets are changing rapidly. While a
billion people go to bed hungry every night,
a similar number of people in developing
countries are obese. Calorie consumption of
the most undernourished needs to increase,
and the changing nutrient content of foods
and diets shaping poor nutrition and health
outcomes need more attention. We still live
in a world where seven million children die
before their fth birthday every year, and
almost half of these deaths are associated
with undernutrition.
Current food production and processing
practices make agriculture the largest user
of water, one of the largest polluters of
the atmosphere through greenhouse gas
emissions, and one of the largest user of
mined elements (due to inorganic fertilizers)
all of which are nite. While other sectors
are innovating to reduce greenhouse gas
emissions, agriculture is lagging. The world
needs to shift from denial to action to rapidly
catch up. Water and fertilizer efcient
agricultural practices must be more widely
adopted, and emissions must be lowered
and even removed wherever possible.
PRODUCTION
SYSTEMS CAN AND
NEED TO MANAGE
RESOURCES IN A
MORE INTEGRATED
WAY, BALANCING
TRADE-OFFS.
The Urgency for
T
he world is changing at an
increasingly faster rate income
growth, shifts in consumption
patterns, climate change, and natural
resource depletion are all occurring faster
now than at any time over the last century
and the responsiveness of our food system
needs to change too if we want to ensure a
sustainable and prosperous future. We need a
food system that can feed every person, every
day, in every country; that can raise incomes
of the poorest people; that can provide
adequate nutrition; and that can better
steward the worlds natural resources.
Urgently, we need a food system that shifts
from being a major contributor to climate
change to being part of the solution.
The amount of food the world consumes
continues to increase with more people to
feed, more calorie intensive diets, and more
use of food crops for biofuels. Added to this
is the high food loss and waste between
farmers elds and dinner plates. World food
prices have increased as grain stocks have
declined. Farmers are responding to higher
prices to produce more, but they are faced
with rising water scarcity, degrading land,
and increasingly extreme weather events. We
need an agriculture and food system that can
adequately respond to the worlds food needs.
Global diets are changing rapidly. While a
billion people go to bed hungry every night,
a similar number of people in developing
countries are obese. Calorie consumption of
the most undernourished needs to increase,
and the changing nutrient content of foods
and diets shaping poor nutrition and health
outcomes need more attention. We still live
in a world where seven million children die
before their fth birthday every year, and
almost half of these deaths are associated
with undernutrition.
Current food production and processing
practices make agriculture the largest user
of water, one of the largest polluters of
the atmosphere through greenhouse gas
emissions, and one of the largest user of
mined elements (due to inorganic fertilizers)
all of which are nite. While other sectors
are innovating to reduce greenhouse gas
emissions, agriculture is lagging. The world
needs to shift from denial to action to rapidly
catch up. Water and fertilizer efcient
agricultural practices must be more widely
adopted, and emissions must be lowered
and even removed wherever possible.
PRODUCTION
SYSTEMS CAN AND
NEED TO MANAGE
RESOURCES IN A
MORE INTEGRATED
WAY, BALANCING
TRADE-OFFS.
Production systems can and need to manage
resources in a more integrated way, balancing
trade-offs. We cannot produce the food we
eat without preserving the ecosystem services
provided from other sources such as forests,
we cannot sustain forests without thinking
how we will feed a growing population, and
both require consideration of how we manage
our watersheds and rural landscapes.
Even with urban migration, 4 of every 5
people in extreme poverty live in rural areas
and most rely on agriculture for their
livelihoods. We are within reach of ending
extreme poverty globally within a generation.
In order for us to achieve this remarkable
milestone, incomes from agriculture in the
poorest countries will need to increase
substantially.
Global and local action, at scale, is
needed to address this agenda private
sector innovation, effective government
policy, partnering with civil society,
universities, and global institutions. More
open trade can facilitate a more responsive
food system to shocks, better science can help
adapt to climate change and lower emissions,
better education can help inform diet choice,
and more nance to support farming systems
in poor countries can help raise farmer
incomes. These are some of the ingredients
needed. The worlds food system has made
life and prosperity possible, lets ensure that
going forward we better shape a system that
can provide the world with needed food,
incomes, nutrition, and sustainable
management of natural resources.
Biography
Mr. Juergen Voegele
joined the World Bank
in 1991 afer working
with the University
of Hohenheim,
the GTZ, and the BMZ Federal
Ministry of Economic Cooperation in
Germany, including a three-year feld
assignment in Western Samoa. His
initial assignments in the World Banks
Washington headquarters included
working in agriculture and natural
resources divisions in the Europe and
Central Asia Region and in the East Asia
and Pacifc Region. He held various
assignments for the East Asia and Pacifc
Region and in 1998, he transferred to the
World Banks Beijing, China Ofce to lead
the Agriculture Unit. This article is part of
the 2014 Global Action Report.
WE ARE WITHIN REACH OF ENDING
EXTREME POVERTY GLOBALLY.
Nymity / Privacy Compliance
Authored by: Terry McQuay, President and Founder, Nymity Inc
Is your organization adequately responding
to the increasing privacy risk?
Are you at risk?
W
e live in an increasingly
interconnected world where
personal data collection
and use is escalating at an
exponential pace and personal data ows
are more complex and unclear increasing
risk is inextricably linked with this trend.
Governments are responding to this new
reality by creating and expanding rules and
regulations that address specic industries
(e.g. telecom rules in EU); specic
technologies (e.g. cookie rule in EU); specic
uses (e.g. social media laws in USA); and
specic concerns/risks (e.g. data breach
notication rules in USA). Regulatory
authorities are also casting the net wider by
broadening existing obligations or creating
new ones (e.g. right to be forgotten and
data portability in new EU Regulation).
Governments are expanding powers of the
data protection authorities and regulators
(e.g. power of UK regulator to levy monetary
penalties) and regulators are increasing the
use of technology and enhanced international
co-operation to enforce data protection laws
(e.g. Google Streetview orders in many
jurisdictions, Facebook).
As technology and regulations rapidly
change, how can organizations mitigate
the regulatory risk? How can organizations
deal with more data privacy laws, more
contractual obligations, more data protection
authority powers and more enforcement
actions? These are pressing questions that
all organizations face every day - now is
the time to act!
We believe a strategic approach to
effective privacy management and standing
ready to demonstrate accountability mitigates
the privacy compliance risk.
At Nymity, we know a challenge like this
is too great for any one organization and that
the strength in addressing this challenge is a
holistic, multi-disciplinary approach to risk
and benchmarking across organizations,
globally. We understand that organizations
want to be accountable and seek a framework
to demonstrate this accountability. We also
realize that privacy compliance and risk
Advertisement
mitigation need to be an ongoing
process, embedded into the operations of
the organization, with metrics. At Nymity,
we measure privacy regulatory risk based on
the following premise: laws and regulations
created by governments are designed to
protect the interest of citizens and
therefore reect societal values.
How are organizations responding to
the challenge of mitigating privacy risk?
Nymity works closely with its customers,
research partners and regulators around
the world to innovate compliance software
technology and methodologies that will
provide answers to these global risk
challenges. In doing so, we strive to help
our customers comply with condence
and make compliance a tangible benet
to their organization.
Organizations including governments
around the world are seeking the most
effective means to demonstrate compliance/
accountability and mitigate risk.
Organizations are increasingly searching for
benchmarking metrics to ensure that their
organization is doing the right things to
mitigate the risk. Many want to ensure that
their privacy program is best in class while
others want to be on par with industry norms.
Nymity has responded to this challenge by
developing privacy management software that
enables organizations to manage and measure
their privacy program effectiveness, making
it a tangible benet to the organization.
Based on privacy management processes and
activities, our software enables the privacy
ofce to easily measure privacy management,
understand privacy regulatory risk, monitor
their privacy program and demonstrate
accountability and compliance
on demand.
Based on our research, responsible
organizations can incorporate privacy
risk management within their governance
structure and mitigate risk simply by
implementing a privacy program and
approaching privacy compliance strategically.
By appointing a privacy ofcer, the
foundation for accountability-based privacy
risk management is established. This
individual rst establishes a foundational
privacy program based on processes and
activities common to all jurisdictions,
then addresses outliers.
In the privacy and data protection regimes
around the world, implementing a privacy
program - with evidence - is equal to
68_70_G20_Nymity.indd 68 27/06/2014 21:49
Authored by: Terry McQuay, President and Founder, Nymity Inc
Is your organization adequately responding
to the increasing privacy risk?
Are you at risk?
W
e live in an increasingly
interconnected world where
personal data collection
and use is escalating at an
exponential pace and personal data ows
are more complex and unclear increasing
risk is inextricably linked with this trend.
Governments are responding to this new
reality by creating and expanding rules and
regulations that address specic industries
(e.g. telecom rules in EU); specic
technologies (e.g. cookie rule in EU); specic
uses (e.g. social media laws in USA); and
specic concerns/risks (e.g. data breach
notication rules in USA). Regulatory
authorities are also casting the net wider by
broadening existing obligations or creating
new ones (e.g. right to be forgotten and
data portability in new EU Regulation).
Governments are expanding powers of the
data protection authorities and regulators
(e.g. power of UK regulator to levy monetary
penalties) and regulators are increasing the
use of technology and enhanced international
co-operation to enforce data protection laws
(e.g. Google Streetview orders in many
jurisdictions, Facebook).
As technology and regulations rapidly
change, how can organizations mitigate
the regulatory risk? How can organizations
deal with more data privacy laws, more
contractual obligations, more data protection
authority powers and more enforcement
actions? These are pressing questions that
all organizations face every day - now is
the time to act!
We believe a strategic approach to
effective privacy management and standing
ready to demonstrate accountability mitigates
the privacy compliance risk.
At Nymity, we know a challenge like this
is too great for any one organization and that
the strength in addressing this challenge is a
holistic, multi-disciplinary approach to risk
and benchmarking across organizations,
globally. We understand that organizations
want to be accountable and seek a framework
to demonstrate this accountability. We also
realize that privacy compliance and risk
Advertisement
mitigation need to be an ongoing
process, embedded into the operations of
the organization, with metrics. At Nymity,
we measure privacy regulatory risk based on
the following premise: laws and regulations
created by governments are designed to
protect the interest of citizens and
therefore reect societal values.
How are organizations responding to
the challenge of mitigating privacy risk?
Nymity works closely with its customers,
research partners and regulators around
the world to innovate compliance software
technology and methodologies that will
provide answers to these global risk
challenges. In doing so, we strive to help
our customers comply with condence
and make compliance a tangible benet
to their organization.
Organizations including governments
around the world are seeking the most
effective means to demonstrate compliance/
accountability and mitigate risk.
Organizations are increasingly searching for
benchmarking metrics to ensure that their
organization is doing the right things to
mitigate the risk. Many want to ensure that
their privacy program is best in class while
others want to be on par with industry norms.
Nymity has responded to this challenge by
developing privacy management software that
enables organizations to manage and measure
their privacy program effectiveness, making
it a tangible benet to the organization.
Based on privacy management processes and
activities, our software enables the privacy
ofce to easily measure privacy management,
understand privacy regulatory risk, monitor
their privacy program and demonstrate
accountability and compliance
on demand.
Based on our research, responsible
organizations can incorporate privacy
risk management within their governance
structure and mitigate risk simply by
implementing a privacy program and
approaching privacy compliance strategically.
By appointing a privacy ofcer, the
foundation for accountability-based privacy
risk management is established. This
individual rst establishes a foundational
privacy program based on processes and
activities common to all jurisdictions,
then addresses outliers.
In the privacy and data protection regimes
around the world, implementing a privacy
program - with evidence - is equal to
68_70_G20_Nymity.indd 68 27/06/2014 21:49
NYMITY WORKS CLOSELY WITH ITS CUSTOMERS,
RESEARCH PARTNERS AND REGULATORS AROUND THE
WORLD TO INNOVATE COMPLIANCE SOFTWARE TECHNOLOGY
AND METHODOLOGIES THAT WILL PROVIDE ANSWERS TO
THESE GLOBAL RISK CHALLENGES.
68_70_G20_Nymity.indd 69 27/06/2014 21:49
Feature / Global Economy
Authored by: Emiliano Duch
Building an
Abundant
Ecosystem
for Prosperity:
The Competitiveness
Agenda
T
he World Bank Group has set
two ambitious goals, to end
extreme poverty within a generation,
something which has always been in
our mission, but now setting a concrete target
of reducing Extreme Poverty to less than 3%
by year 2030, and we have added a new goal,
increasing shared prosperity, by fostering
income growth of the bottom 40% of the
population. These two goals address the
stigma of poverty and inequality that our
society cannot tolerate, focusing on enriching
livelihoods through economic growth,
inclusion, and sustainability
In the past decades, great advances have
been made in tools and policies to ght
poverty, from the advances in health to
micronance, using a combination of social
and economic growth policies, but when
we set the ambitious goal of increasing the
prosperity of almost half the population
of our countries, we will need to rely on
increasing prosperity by increasing jobs and
the productivity of those jobs, so they can
generate higher returns to the ones that
perform them; and that is only possible in
the long term having competitive industries.
Competitiveness is a requisite for creating
prosperity and inclusion for sharing it, a
challenge that all countries in the world
are facing, including the United States.
One of the roles of the World Bank is to
facilitate the dialogue and action in ongoing
and emerging development challenges,
bringing the perspective of developing
countries to global issues. We support our
client countries in delivering customized
development solutions by packaging nance,
knowledge, and convening services, so it is of
utmost importance for us to help advance the
knowledge about what works and what does
not work to promote Competitiveness, and
thus our interest to exchange experiences
with the policy makers and practitioners
participating in the Global South Summit.
Even if our focus is in emerging and
developing economies, we observe carefully
the examples in advanced economies like the
Unites States as well, especially to understand
the role of the Public Private Dialogue in
developing a competitive economy. We all
know that the Private Sector is the one
that will create the jobs at the same time,
an uncompetitive private sector is the one
that will lose the jobs. How do we establish
that positive competitiveness building
dialogue and not end in rent seeking behavior
by the incumbent players? One of the
examples here in the United States, that we
can learn from, is the rise of the Tucson
Optics cluster, starting from literally nothing
Emiliano Duch discusses goals for the
World Bank Group in the reduction and
eradication of poverty and the struggle
between the public and private sectors
in the process.
72_73_G20_Eco-System.indd 72 27/06/2014 20:20
ONE OF THE
ROLES OF THE
WORLD BANK IS
TO FACILITATE
THE DIALOGUE
AND ACTION
IN ONGOING
AND EMERGING
DEVELOPMENT
CHALLENGES,
BRINGING THE
PERSPECTIVE
OF DEVELOPING
COUNTRIES TO
GLOBAL ISSUES.
in the Arizona dessert less than 50 years ago,
and the disastrous fallout (as the Harvard
researcher Dina Gederman called it)
1
of the
Rochester Optics cluster, where the iconic
companies like Kodak, Xerox, Bausch and
Lomb were based, and leaded the dialogue.
What is really at the center of this example
is the confrontation of two Private Sector
Development policy models: an old model of
incumbent driven dialogue, and new model
of dialogue driven by new market needs and
companies willing to pursue them changing
their business models. A better competitive
position does not come only from improving
efciency in the existing businesses by
working together, but by identifying business
in new strategic segments that respond to
new consumer demands, environmental,
health and socially responsible, addressing
our societal challenges while making sound
business. The Tucson Optics cluster
developed new light-based tissue diagnostics
techniques that dramatically reduce the cost
and time of each analysis, resulting in a large
investment by Swiss company Roche, which
moved its knowledge base there. But we
also have many examples of this change
in strategic segment in developing countries,
from moving from basic commodity coffee
to specialty in Colombia, or from low
cost garment manufacturing (maquila)
to fast fashion in Mexico.
The need of a dynamic and innovative
private sector ready to move to more
attractive strategic segments is particularly
important for many of our client countries,
where some of the incumbent players have
built their position based on protectionism or
favoritism. It is very difcult to engage in the
positive Public Private Dialogue to develop
competitive industries with a Private Sector
anchored in the old model, which is why
we are very interested to know more about
your experiences.
But, as Christian Ketels has mentioned,
we cannot say anymore that this is new,
when we have been working in developing
the tools to move cluster of companies up to
more attractive and competitive positions for
already more than twenty years. So one of the
roles that we need to play, as a development
institution, is to enhance and diffuse these
learnings, collaborating with other academic,
governments and multilateral institutions.
This is the objective of the Competitive
Industries and Innovation Program, a joint
initiative of the World Bank, with the support
of the European Union, the governments
of Austria and Switzerland, that will help
us work better towards our two goals,
and more especially on our new
challenge of increasing shared prosperity
through more competitive and
inclusive growth.
Biography
Emiliano Duch is
the Lead Specialist
at the Competitive
Industries Global
Practice at the World
Bank. The Practice
was created to help
achieve the banks goals of elimination
of poverty and shared prosperity, by
helping countries to develop competitive
private sectors that create sustainable
shared value. Before joining the Bank in
June 2013, Emiliano was the founder of
Competitiveness, the frst consulting frm
specialized in supporting governments
in their economic development
strategies based on clusters. More
recently, Emiliano has led the
European Cluster Excellence Initiative,
a European Commission program
to set the standards of excellence for
competitiveness focused cluster work.
This article is part of the 2014 Global
Action Report.
1
D. Gederman, Kodak: A Parable of American
Competitiveness, HBR Research, Feb. 2012
72_73_G20_Eco-System.indd 73 27/06/2014 20:20
Feature / Healthcare
Authored by: Tim Evans
Tim Evans discusses challenges in the struggle for universal
healthcare, both in the developed and developing world.
Saving Lives, Increasing
Economic Growth and
Lifing Millions
out of Poverty:
The Push for Universal
Health Coverage
74_75_G20_Economic Development.indd 74 27/06/2014 20:24
Saving Lives, Increasing
Economic Growth and
Lifing Millions
out of Poverty:
The Push for Universal
Health Coverage
W
ith just more than a
year remaining until the
deadline for the Millennium
Development Goals, countries
are pushing to achieve and exceed all of
the goals. Yet despite our best efforts, our
work will not be done when 2015 ends.
Too many people will be dying from
preventable causes because they lack access
to essential, quality care, or because they
cannot afford to pay for the care they need.
The developmental and global health
landscapes will continue to change, with half
of todays low-income countries transitioning
to become middle-income countries, and
chronic conditionssuch as heart disease
and diabetesrapidly becoming an even
greater threat.
Yet, we know what is needed to end
preventable maternal and child deaths.
And we know how we can sharply reduce
deaths and disability from chronic illnesses.
The most equitable and sustainable way to
achieve the health outcomes we all want by
2030 is through universal health coverage,
which means that everyone can access quality,
essential health services without struggling to
pay for them. Worldwide, 1 billion people
lack access to health care, and about 100
million people face poverty every year as a
result of out-of-pocket health care costs.
If we want to end extreme poverty by 2030
and boost shared prosperity, we must reach
universal health coverage. Countries like
Japan, Thailand, and Turkey have shown the
promise of universal health coverage for their
people, and more and more countrieslike
Myanmar, Nigeria, Peru, Senegal, Kenya,
South Africa and the Philippinesare
prioritizing universal health coverage.
These countries and others will chart their
progress, both in scaling up equitable access
to essential health services, and in preventing
poverty due to out-of-pocket payments for
health, using new, time-bound targets for
universal health coverage. These targets,
which the World Bank Group and the World
Health Organization developed, can be
applied to all countries, rich and poor, as
envisioned in the post-2015 framework.
These targets will drive policy and program
choices that will lead to better heathsuch
as investing in strong, front-line primary care
that is accessible to the poorest and most
marginalized communities. Good primary
care delivers essential services like antenatal
care, skilled birth attendants, child vaccines,
blood pressure and diabetes monitoring, and
other interventions that prevent health crises
and keep health care costs from escalating.
Investing in health also will continue to
ACHIEVING
UNIVERSAL HEALTH
COVERAGE BY 2030
IS POSSIBLE.
drive great economic returns. The Lancet
Commission on Investing in Health found that
nearly a quarter of the growth in full income
in low-and middle-income countries between
2000 and 2011 was due to better health
outcomes. Universal health coverage is the
progressive pathway that will save lives,
increase economic growth and help millions
of people lift themselves out of poverty.
Achieving universal health coverage by 2030
is possible. Unwavering political commitment,
clear progressive goals and measureable targets
will drive the change. Investing in healthand
achieving universal health coveragewill help
us achieve the development goals to end
extreme poverty by 2030 and boost shared
prosperity. This is an unprecedented
opportunity to achieve these goals and
change millions of lives for the better.
Biography
Timothy Evans is
Senior Director of
Health, Nutrition and
Population at the
World Bank Group.
From 2010 to 2013, Tim was Dean of the
James P. Grant School of Public Health at
BRAC University in Dhaka, Bangladesh,
and Senior Advisor to the BRAC Health
Program.
From 2003 to 2010, he was Assistant
Director General at the World Health
Organization. Prior to this, he served as
Director of the Health Equity Theme at
the Rockefeller Foundation. Earlier in
his career he was an attending physician
of internal medicine at Brigham and
Womens Hospital in Boston and was
Assistant Professor in International
Health Economics at the Harvard School
of Public Health. This article is part of the
2014 Global Action Report.
74_75_G20_Economic Development.indd 75 27/06/2014 20:24
Authored by: Jeff Balser
Jef Balser outlines the need for new innovation in health care to
maximize output of care and cost efectiveness to the public.
The Urgency for
an Innovation Roadmap
to Transform Health Care
76_78_G20_Healthcare.indd 76 27/06/2014 20:26
The Urgency for
an Innovation Roadmap
to Transform Health Care
T
he U.S. health care system is in
crisis. In America, the health of
our citizens not only compares
unfavorably to many other nations;
annual health care costs account for 18
percent of the gross domestic product (GDP)
and drive a large portion of our growing
annual budget decit. There is no other
country on the planet where the cost of
health care is so disproportionate to the
results achieved.
Not only here in the U.S., but elsewhere
around the globe, health care is being called
upon to be not only more cost-effective, but
simply better. We are far beyond the point
where small xes and iterative change will
achieve meaningful improvement in the time
frame demanded by a too-long avoided, and
now urgent economic predicament. Riding the
same bicycle harder and faster will not get us
to the nish line. We need an entirely new
kind of vehicle to carry us forward a new
kind of thinking.
That new kind of thinking is surely a
commitment to innovation. Innovation
begins with creativity, but also requires
those participating in the ecosystem to alter
perceptions and behaviors in a manner that
allows innovation to soar. Turning ideas into
products and services at a rapid pace requires
a willingness to consider and test new ideas,
even those that might prove to be failures.
In such an atmosphere, the best ideas can
succeed, allowing that nations health
to leap forward.
While sweeping change in a health care
industry as large and complex as ours creates
excitement and opportunity, it is at the same
time anxiety provoking. It sometimes feels
like we are attempting to x an airplane while
in mid-ight. Many people working at the
front lines of health care, as well as patients
experiencing gaps in service delivery, wonder
whether we are headed to better place
or simply toward chaos.
Success requires both our optimism
and courage. We nd ourselves at a point
of convergence, where the urgency for
innovation is matched by decades of
discovery and development in broad areas of
computer science and information technology,
to fundamental advances in biology and
genetics, to the social and process-oriented
sciences that consider the means of health
care service delivery to patients.
If we are going to leverage these gains,
how do we do so to effect change? A rst
step will almost certainly be humility a
recognition that what we are doing today,
while seemingly good in a local sphere,
does not scale to improve the health of all
WHILE SWEEPING CHANGE IN A
HEALTH CARE INDUSTRY AS LARGE
AND COMPLEX AS OURS CREATES
EXCITEMENT AND OPPORTUNITY,
IT IS AT THE SAME TIME ANXIETY
PROVOKING.
people and is economically unsustainable.
Innovation is born in such an atmosphere,
where both procedural and cultural norms
can be openly questioned and challenged.
For example, the model where the
physician is the sole or even primary point
of service, a cornerstone of our health care
model in the U.S. for more than a century
whether in an ofce setting or in an
emergency room no longer scales to the
continuous and growing health needs of our
aging population. MyHealth Team, a project
initiated at Vanderbilt and funded by the
Centers for Medicare and Medicaid Healthcare
Innovation Awards Program, is implementing
a regional, team-based innovation model for
ambulatory health management to nd a
better and more cost-effective way to manage
some of the most costly and debilitating
chronic diseases in our society: diabetes,
hypertension and congestive heart failure.
In collaboration with other regional hospitals
in the Vanderbilt Health Afliated Network,
using enhanced health information
technology (HIT) and evidence-based
decision support integrated into the clinical
workow, an inter-professional staff including
physicians, nurses and medical assistants
are working to improve communication,
care planning and monitoring. The goal is
to communicate with patients continuously
in a manner that results in improved care
with reduced hospital admissions and
emergency room visits.
The proverb necessity is the mother
of invention, ascribed to Plato, was never
more real in health care as we witness
the development and testing of innovative
solutions like MyHealth Team at centers
across the country. For sustainable change,
measures of cost and quality in these
experiments must show clear improvement
over the status quo. But even so,
transformative gains will not be realized
unless we as providers and patients
can imagine a new normal for how
people can remain healthy and prosper
in an entirely new delivery system.
Biography
Jef Balser, M.D.,
Ph.D., is Vice
Chancellor for
Health Afairs (CEO)
for Vanderbilt
University Medical Center and Dean
of the Vanderbilt University School of
Medicine. He is a member of the Institute
of Medicine of the National Academy
of Sciences, American Society of
Clinical Investigation and Association of
American Physicians, and is past chair
of the NIH Directors Pioneer Awards
Committee. This article is part of the 2014
Global Action Report.
NOT ONLY
HERE IN THE U.S.,
BUT ELSEWHERE
AROUND THE
GLOBE, HEALTH
CARE IS BEING
CALLED UPON TO
BE NOT ONLY MORE
COST-EFFECTIVE,
BUT SIMPLY
BETTER.

79_G20_ADVERT_World Chamber.indd 79 27/06/2014 20:31
Feature / International Afairs
Authored by: Kate Carnell AO
Small and medium-sized enterprises (SMEs) are the worlds
most concentrated, booming and innovative engine for
world trade and growth, according to the Executive Director
of the International Trade Centre (ITC), Arancha Gonzlez
Too Big to Ignore -
globally
O
nce it is over, 2014 will be seen as
one of the most signicant years in
terms of Australias international
engagement. As host of the G20,
Chair of the Indian Ocean Rim and the
completion of multiple preferential trade
agreements, there is no shortage of global
attention on Australia.
During 2013, ACCI took a leading position
to highlight the issues of importance for
small business during the Federal election
campaign. The sentiments of the Big 4 You
cant Ignore identied in the campaign
continue to be relevant and the focus
of our advocacy into the global arena:
1. Cut down red tape
2. Simplify the tax system
3. Make it easier to employ people
4. Build better infrastructure
Too often high level discussions take
place between Governments, and sometimes
business interests, based on the assumption
that what is good for big business is also
good for small business. Sometimes this is
right but we need to ensure that the SME
sector and their representatives are fully
engaged and that their voice is being heard
at the highest levels.
With more than 95% of global businesses
being small and medium enterprises, clearly
the challenge that the G20 Finance Ministers
developed this year at their February meeting
in Sydney to increase global growth by 2%
above trend over the next 5 years, must
include invigorating the SME sector in
each one of the G20 countries and the
world in general.
Critical to achieving this ambitious
target will be:
1. Signicant labour market reforms
2. Major tax reform
3. Global trade liberalisation
As the world continues to suffer from
lower than expected growth, options for
continued stimulus become more limited.
The debt free stimulus available to the
worlds Governments is the completion of
the Doha Round of trade talks. It is estimated
that completion of the previous Uruguay
Round provided benets of about 1% lift in
global GDP. Estimates of the current Doha
Round value of benets could be around
0.5% lift in GDP globally.
The G20 is critical to maintaining the
momentum towards a nal agreement.
In December last year the Governments
of the World Trade Organisation (WTO)
parties demonstrated they were capable of
an agreement of this scale. They agreed to
the Bali package which included benecial
aspects on trade facilitation but also some
on agriculture. The procedural steps for
ratication of this agreement by the required
2/3 of WTO party Governments are
underway and Australia should signify its
leadership in this eld by being one of
the rst to ratify and do this before the
G20 Leaders Summit in Brisbane
n November.
The B20 have been deliberating on these
and other issues and ACCI will join our
international partners of ICC, BIAC and IOE
as delegates to the B20 Summit in Sydney in
July. Aligned to this meeting, the G20 trade
Ministers will also be meeting. This is the
rst time this group of Trade Ministers has
met since the Mexican host year and so it
is an important step in the work plan to
achieve the goals set by G20 Leaders to
complete the Doha Round, noted in their
previous Summit communiques.
But completing Doha is hard work. Multiple
Leaders declarations have not resulted in a
breakthrough. ACCI and the international
business community have identied that
Trade needs to be elevated to the same focus
within the G20 as nancial matters. If this
status can be achieved then the Australian
host year can be considered a success. With
this focus, with regular meetings between the
G20 trade ministers, we are condent that it
is possible to reach a nalisation of the
Doha Round in the foreseeable future.
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80_81_G20_ACCI & TRADE AD.indd 80 27/06/2014 20:33
Feature / International Afairs
WITH MORE THAN 95% OF GLOBAL
BUSINESSES BEING SMALL AND
MEDIUM ENTERPRISES, CLEARLY THE
CHALLENGE THAT THE G20 FINANCE
MINISTERS DEVELOPED THIS YEAR AT
THEIR FEBRUARY MEETING IN SYDNEY
TO INCREASE GLOBAL GROWTH BY
2% ABOVE TREND OVER THE NEXT 5
YEARS, MUST INCLUDE INVIGORATING
THE SME SECTOR IN EACH ONE OF THE
G20 COUNTRIES AND THE WORLD IN
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Returning to the Growth Target of the
G20, this is a platform that enables a national
discussion. The targets require each member
of the G20 to develop a National Action Plan
of unilateral initiative that each Government
can commit to undertaking that will lead to
the target being reached. These are driven
by national self-interest and dont depend on
group action - simply mutual unilateral action.
ACCI is involved with the development of
Australias national plan. Our advocacy is based
on the Big 4 You cant Ignore and have hosted
an event in Melbourne on 20 June jointly with
Minister for Small Business, the Hon Bruce
Billson MP which discussed what opportunities
lie ahead and how we can overcome any
constraints to enable the power of the SME
sector to be unleashed and make appropriate
national contributions to meeting these
targets for global growth.
Our key message in this discussion
was Small Business is Too Big to Ignore
globally.
80_81_G20_ACCI & TRADE AD.indd 81 27/06/2014 20:33
Authored by: Roger N. Beachy
Dr. Roger Beachy details the growing need for agricultural reform,
both locally and globally, and outlines four potential areas for reform,
along with the measures necessary for those reforms to occur.
The Urgency for
Academic-Business Collaboration:
Establishing a Global Food
System Roadmap
M
any voices have called for the
global community to ensure
adequate food and nutrition
for a growing world population,
a goal that must take into account changing
climates, both physical and political. The
call to feed the planet comes from inuential
individuals, NGOs, universities, national
and international governing bodies, and
the private sector.
There is a growing recognition that
challenges for security in food and nutrition
are more than can be addressed by single
actions: real solutions include more than
simply increasing food production per se;
more than simply increasing availability
of clean; more than better transportation
infrastructure; more than increasing supplies
of affordable energy; more than improving
training and access to communications;
more than providing food calories; more
than increasing markets; more than access to
credit and safety nets for farmers; more than
favorable policies from central and regional
governments. The complex, integrated system
that comprises food and agriculture is both
broad and deep. All members of the food
system must be knowledgeable of the breadth
of challenges while taking responsibility
for creating a sustainable system that
meets global needs. While the scale of the
challenges for the global community is
signicant, it is possible to make changes
in the immediate term that can increase the
chances of long-term success to achieve
food and nutrition security.
Universities, colleges, technical schools
and research laboratories have vital roles
to play in improving the food and agriculture
system. However, it is not reasonable
to expect that any single institution will
have all the necessary expertise and resources
required to meet these emerging challenges.
Rather, each academic/research institution
must recognize its role and responsibility in
the complex system if they are to contribute
to creating innovative solutions for global
food and nutrition security. For example,
universities that focus on research, education
and outreach related to food production likely
also have strengths in agriculture economics,
and agriculture policy programs; but they
may be less strong in food safety and
nutrition, or in public health. Other research
institutions have strengths in fundamental
sciences in plant, animal, human biology,
medicine, and social sciences but have little
expertise in agriculture, agroecology and
sustainability, or water management, and
so forth. As a consequence of the nature
of how colleges and universities have
historically developed and survived
nancially, very few faculty, and fewer
students, have the capacity or incentives to
engage across the full spectrum of the food
and agriculture system. Moving forward,
academic collaborations and larger systems
understanding are both essential.
In other words, to build the comprehensive
system that the world needs, and to have
greater impact, we need to actively expand
our research and education collaborations
among academic institutions and the private
sector. As a result, those that we educate,
train and employ will be better suited to
compete successfully, to innovate, to
contribute and to work towards improved
solutions for our food and nutrition
challenges
Developing research and education
missions with greater impact in this
space requires signicant changes in
institutional, national and international
policies and processes. Some changes
to be considered in the immediate and
near term include:
82_84_G20_Academic Business.indd 82 27/06/2014 20:35
Authored by: Roger N. Beachy
Dr. Roger Beachy details the growing need for agricultural reform,
both locally and globally, and outlines four potential areas for reform,
along with the measures necessary for those reforms to occur.
The Urgency for
System Roadmap
M
any voices have called for the
global community to ensure
adequate food and nutrition
for a growing world population,
a goal that must take into account changing
climates, both physical and political. The
call to feed the planet comes from inuential
individuals, NGOs, universities, national
and international governing bodies, and
the private sector.
There is a growing recognition that
challenges for security in food and nutrition
are more than can be addressed by single
actions: real solutions include more than
simply increasing food production per se;
more than simply increasing availability
of clean; more than better transportation
infrastructure; more than increasing supplies
of affordable energy; more than improving
training and access to communications;
more than providing food calories; more
than increasing markets; more than access to
credit and safety nets for farmers; more than
favorable policies from central and regional
governments. The complex, integrated system
that comprises food and agriculture is both
broad and deep. All members of the food
system must be knowledgeable of the breadth
of challenges while taking responsibility
for creating a sustainable system that
meets global needs. While the scale of the
challenges for the global community is
signicant, it is possible to make changes
in the immediate term that can increase the
chances of long-term success to achieve
food and nutrition security.
Universities, colleges, technical schools
and research laboratories have vital roles
to play in improving the food and agriculture
system. However, it is not reasonable
to expect that any single institution will
have all the necessary expertise and resources
required to meet these emerging challenges.
Rather, each academic/research institution
must recognize its role and responsibility in
the complex system if they are to contribute
to creating innovative solutions for global
food and nutrition security. For example,
universities that focus on research, education
and outreach related to food production likely
also have strengths in agriculture economics,
and agriculture policy programs; but they
may be less strong in food safety and
nutrition, or in public health. Other research
institutions have strengths in fundamental
sciences in plant, animal, human biology,
medicine, and social sciences but have little
expertise in agriculture, agroecology and
sustainability, or water management, and
so forth. As a consequence of the nature
of how colleges and universities have
historically developed and survived
nancially, very few faculty, and fewer
students, have the capacity or incentives to
engage across the full spectrum of the food
and agriculture system. Moving forward,
academic collaborations and larger systems
understanding are both essential.
In other words, to build the comprehensive
system that the world needs, and to have
greater impact, we need to actively expand
our research and education collaborations
among academic institutions and the private
sector. As a result, those that we educate,
train and employ will be better suited to
compete successfully, to innovate, to
contribute and to work towards improved
solutions for our food and nutrition
challenges
Developing research and education
missions with greater impact in this
space requires signicant changes in
institutional, national and international
policies and processes. Some changes
to be considered in the immediate and
near term include:
The Urgency for
System Roadmap
AS A CONSEQUENCE OF THE NATURE OF HOW COLLEGES
AND UNIVERSITIES HAVE HISTORICALLY DEVELOPED
AND SURVIVED FINANCIALLY, VERY FEW FACULTY, AND
FEWER STUDENTS, HAVE THE CAPACITY OR INCENTIVES TO
ENGAGE ACROSS THE FULL SPECTRUM OF THE FOOD AND
AGRICULTURE SYSTEM.
1. For policy and planning institutions
a. Commit to making changes that lead to
achievable national goals for local and
global security in food and nutrition
b. Establish roadmaps with clear steps to
achieve goals for food and nutrition
security; engage the natural and social/
policy sciences, and stakeholders spanning
all implicit parts of the system from the
lab/clinic to the consumers fork.
2. For universities and research institutions
a. Ensure commitment of administration,
faculty and students to the common
mission
b. Engage with private sector, funders and
other partners to establish common
interests and pathways to success
c. Commit incentives and seed funds that
create interdisciplinary research/teaching
activities leading to productive
collaborations across and among
essential disciplines in the food and
agriculture system
d. Create changes in the review and reward
system to value more innovative research
collaborations, goal oriented activities,
teaching, communications among faculty
and staff with incentives to participate
in joint, long term projects.
3. For agencies and organizations
that fund and facilitate programs
a. Develop well-formed programs that lead
to goals set forth in the roadmap which
can be nancially supported by multiple
or single sources
b. Establish mechanisms to create team-based
projects that require trans-disciplinary
research and education, while achieving
specic goals and with metrics; create
disincentives for lack of performance
c. Establish mechanisms for sponsoring
program activities and for sharing
benets/outcomes
d. Measure outcomes against the roadmap,
adjust, and move to continue, expand,
extend or abandon
4. For corporations and the private sector
a. Actively participate as a stakeholder in
developing suitable roadmaps that prioritize
short and mid-term goals in food and
nutrition security, including strategies
for developing economies
b. Promote collaboration with other companies
and agencies to co-fund pre-competitive
research that builds knowledge and
targets roadmap goals
c. Develop collaborative goal oriented research
and education programs with universities
and institutes that lead to increased global
impacts in food and nutrition security
and nutrition
There are those that would consider
some of these steps to be inappropriate for
universities and academic institutions. Fair
enough. On the other hand, it can be argued
that unless there is such collaborative
engagement, the chances of achieving global
security in food and nutrition are lessened:
grand challenges require input from as many
brains and hands as can be mustered.
The challenges facing our food system
require a global food system roadmap with
proactive collaboration among the worlds
academies as well as broader collaboration
with governments and the private sector.
Biography
Dr. Roger Beachy is
Executive Director of
the World Food Center
at the University of
California, Davis.
He is also Professor of Biology at
Washington University in St. Louis.
In 2013 he was Founding Executive
Director and CEO of the Global Institute
for Food Security at the University of
Saskatchewan, Canada. Beachy was
appointed by President Obama to serve
as Director of the National Institute
of Food and Agriculture (NIFA) in the
U.S. Department of Agriculture, from
October, 2009 through May, 2011; and
was Chief scientist of the USDA in 2010.
Action Report
THE COMPLEX,
INTEGRATED
SYSTEM THAT
COMPRISES FOOD
AND AGRICULTURE
IS BOTH BROAD
AND DEEP.
Bondurant School of Driving
85_G20_ADVERT_BONDURANT.indd 85 27/06/2014 20:37
Authored by: Christian Ketels
86_88_G20_Increasing Growth.indd 86 27/06/2014 20:43
Does growing global economic development still speak to
societal needs? Christian Ketels distinguishes the need for data
transparency and collaboration between public and private
enterprises to foster innovation and ft modern needs. .
Economic Development
goes Societal Needs:
A work in progress
W
ith the global economy slowly
grinding its way out of the
nancial and economic crisis,
the reality of a new normal
with lower growth rates in many parts of the
world is starting to sink in. But it is not only
the outlook of lower growth and the fear of a
secular reduction in the speed of innovation
seen by some (but disputed by others) that
worries many. It is also that headline GDP
growth seems to translate less clearly into
standard of living-improvements. Is the
economy no longer serving the needs of
society, as Adam Smiths invisible hand
was supposed to ensure?
This concern is highly visible in the US,
where median prosperity has fallen behind
GDP growth and income mobility has shown
to be no higher than in Europe. There is
widespread unease about the future of the
American Dream, whether it materializes
in Occupy Wall Street or the enthusiastic
reception of Thomas Pikettys Capital in
the Twenty-First Century. In Europe, other
societal needs, especially environmental
sustainability, are right there next to the
concerns about the social repercussions of
scal consolidation in the name of future
economic growth. Emerging countries like
China and Korea, too, experience growing
demands for more than headline
GDP growth. What has been the reaction to
these societal needs, whether they are shared
ACROSS
SOCIETIES, THERE
IS A GROWING
CONSENSUS
THAT ECONOMIC
DEVELOPMENT
NEEDS TO FULLY
EMBRACE SOCIETAL
NEEDS.
prosperity, environmental sustainability,
or other dimensions of social progress? For
companies, the pressure from NGOs and other
stakeholders has signicantly increased
efforts to show corporate social responsibility.
There has also been growing interest in social
entrepreneurship, i.e. applying the techniques
of business with a mission to address specic
societal needs. While on both tracks there
have been many interesting developments, a
key challenge turns out to be scalability: as
long as what a rm does to address societal
needs is not generating a prot, these efforts
are not self-sustaining and remain a cost
burden on their traditional business activities.
For governments, social, environmental,
and economic policies have historically been
organized in different silos. The European
Unions approach to making a number of
so-called grand (societal) challenges the
key focus of regional and innovation policies
points into a new direction: using existing
policy tools but adjusting the objective
function from economic growth to a broader
bundle of societal needs. It remains to be
seen whether policy approaches that have
seen their effectiveness being questioned
already for more narrow economic goals will
fare better under this new orientation. And
while redirecting funds into addressing
environmental issues and other societal
needs will have some effect, the experience
in many countries has been mixed as to the
efciency of this spending.
Here, too, scalability is an issue: there are
many competing demands on limited
government funds.
Across societies, there is a growing consensus
that economic development needs to fully
embrace societal needs. But what is important
is to act more effectively in this spirit.
First, transparent data on a broader
measure of progress is critical. A lot has been
happening in this area over the last few years,
from research on beyond GDP measures and
happiness to the Better Life index to the
recently launched Social Progress Index. In
these areas, as in others we need to know where
we are to inform what we are going to do.
Second, collaboration, often among public
and private actors, is needed to create the
innovations and make the systemic changes
to implement them that are required to
address the societal challenges we are facing.
This will only happen if we create the right
kind of institutional architecture and social
capitalto facilitate this type of collective action.
Third, within the context of collaboration,
it is important to have rms and governments
focus on what they can do best. For rms,
this is striving for protability by serving
market needs and continuously exploring new
markets and new ways to serve them. Here,
the work on Corporate Shared Value has
shown that there is a lot of room for raising
protability in ways that also address societal
needs by taking a new look at unserved
markets, at collaborating with partners in the
supply chain, and at the internal processes.
For governments, this remains providing
public goods that individual rms do not
deliver. Importantly, this includes organizing
markets in which these rms get the
economic signals that serving societal needs
is protable. When such market signals are
in place, traditional policies like the provision
of nancial support, for example research
on sustainable energy sources, will trigger
a much stronger response by rms.
The new frontier for economic development,
then, is to simultaneously solve the equations
for shared prosperity, social progress, and
environmental sustainability. This will require
Biography
Dr. Christian Ketels is a member of
the Harvard Business School faculty
at the Institute for Strategy and
Competitiveness. Dr. Ketels has worked
with a many international organizations,
government agencies, and frms and is
President of TCI, a global professional
network on cluster-based economic
development. He has published widely
on economic policy issues and is co-
editor of the Competitiveness Review.
Action Report.
new tools and approaches, not only the
acknowledgment of a broader objective
function. And it will involve making sure
that Adam Smiths old dictum is perceived to
hold again and the market rewards those the
most that serve the needs of all individuals
in society the best.
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personal foreign affairs department with experience drawn from developed and
emerging markets around the world. Our team helps you navigate the challenges
of operating in a truly global environment.
APCOs Global Investment Compass (GIC). In a highly competitive market,
GIC charts the path to increased foreign direct investment with a report that
collects data from a variety of sources, produces an analysis and offers strategic
recommendations on how the investment destination can better promote itself.
n
Helping Governments Communicate
in a Changing World
ABOUT APCO
WORLDWIDE
APCO Worldwide is a
global communication,
stakeholder
engagement and
business strategy frm
with more than 30
offces in major political,
business and media
capitals around the
world.
APCO is an
industry leader in
providing services to
governments and has
assisted dozens of
regional, national and
state governments
throughout the
Americas, Europe,
Asia and Africa in
developing and
implementing strategic
communication
campaigns.
Brad Staples
has decades
of experience
providing
communication
counsel for
governments
around the world.
For more information please contact Brad Staples, president, International, APCO Worldwide:
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bstaples@apcoworldwide.com +32.2.645.9811
www.apcoworldwide.com
89_G20_ADVERT_APCO.indd 89 27/06/2014 20:46
Feature / Mining
Authored by: Glen Cass, Managing Director, WYN Recruitment
The boom of Australias mining industry has positively
contributed to economic growth but ferce competition
on the international market have impacted east coast
operations with mine closures and job losses.
How Australias Mining Industry
Contributes to Regional
and Global Prosperity
O
ver recent years the boom of
Australias mining industry has
positively contributed to economic
growth and job creation,
undoubtedly reducing the impact felt by
global recession. However, erce competition
on the international market for coal combined
with high extraction costs have impacted east
coast operations with mine closures and job
losses creating a ripple effect on the mining
supply and manufacturing industries. Coal
has undoubtedly been the worst to suffer, due
to international over supply, with the closure
of all Vale operations for maintenance. Iron
ore has largely escaped major job loss but
expected job growth has not occurred. Mining
industry shareholders in 42 of the worlds
biggest miners lost 20 per cent of investments
last year according to a global research survey
by Boston Consulting group. Falling
commodity prices and soaring costs - led by
Australian mines - have meant shareholder
returns trended downward. Companies have
been focusing on reducing debt and reviewing
potential efciency gains as the market
becomes largely survival of the ttest.
Indeed, in the words of NSW Minerals
Council CEO Stephen Galilee over the last
18 months we have experienced some of the
most difcult trading conditions for decades.
The Australian resource industry is
currently shifting from its construction
phase to operations and maintenance with
increasing volumes of iron ore, coal and gas.
Many projects will have a long operational life
ensuring increases in export capacity for the
next decade or beyond are possible. According
to the recent Bureau of Resources and Energy
Economics (BREE) April 2014 report the value
of committed resource projects has decreased
from its peak in April 2013 with 8 projects
approved in the last six months to start
constriction with a combined value of $12.8
billion. There are now 48 projects at the
committed stage with a combined value of
$229b. While the number of projects in the
construction phase has declined, this decline
is from record highs, and has been offset by
the recent approval of the $10.7b Roy Hill iron
ore project, and a handful of other smaller
projects. For the year ending June 2014,
mining rms plan to spend a commendable
enough $167 billion, still a high level of
investment by historical standards.
Signs on the west cost for iron ore
operations indicate a move towards
stabilization even though prices have
90_91_G20_Mining.indd 90 27/06/2014 20:47
Feature / Mining
Authored by: Glen Cass, Managing Director, WYN Recruitment
The boom of Australias mining industry has positively
contributed to economic growth but ferce competition
on the international market have impacted east coast
operations with mine closures and job losses.
How Australias Mining Industry
Contributes to Regional
and Global Prosperity
O
ver recent years the boom of
Australias mining industry has
positively contributed to economic
growth and job creation,
undoubtedly reducing the impact felt by
global recession. However, erce competition
on the international market for coal combined
with high extraction costs have impacted east
coast operations with mine closures and job
losses creating a ripple effect on the mining
supply and manufacturing industries. Coal
has undoubtedly been the worst to suffer, due
to international over supply, with the closure
of all Vale operations for maintenance. Iron
ore has largely escaped major job loss but
expected job growth has not occurred. Mining
industry shareholders in 42 of the worlds
biggest miners lost 20 per cent of investments
last year according to a global research survey
by Boston Consulting group. Falling
commodity prices and soaring costs - led by
Australian mines - have meant shareholder
returns trended downward. Companies have
been focusing on reducing debt and reviewing
potential efciency gains as the market
becomes largely survival of the ttest.
Indeed, in the words of NSW Minerals
Council CEO Stephen Galilee over the last
18 months we have experienced some of the
most difcult trading conditions for decades.
The Australian resource industry is
currently shifting from its construction
phase to operations and maintenance with
increasing volumes of iron ore, coal and gas.
Many projects will have a long operational life
ensuring increases in export capacity for the
next decade or beyond are possible. According
to the recent Bureau of Resources and Energy
Economics (BREE) April 2014 report the value
of committed resource projects has decreased
from its peak in April 2013 with 8 projects
approved in the last six months to start
constriction with a combined value of $12.8
billion. There are now 48 projects at the
committed stage with a combined value of
$229b. While the number of projects in the
construction phase has declined, this decline
is from record highs, and has been offset by
the recent approval of the $10.7b Roy Hill iron
ore project, and a handful of other smaller
projects. For the year ending June 2014,
mining rms plan to spend a commendable
enough $167 billion, still a high level of
investment by historical standards.
Signs on the west cost for iron ore
operations indicate a move towards
stabilization even though prices have
90_91_G20_Mining.indd 90 27/06/2014 20:47
Feature / Mining
fallen below the $100 a tonne mark. In the
next 12 months the increased global supply
and shift by the Chinese economy toward a
consumer driven economy will continue the
pressure for further price falls. Companies
will seek increased efciencies and
productivity from their workforce and look to
employ only those with proven track records
of successful delivery. WYN Recruitment is in
a prime position to assist companies in this
transition with our wide array of contacts and
close relationships with the top players in the
industry. A strong Australian currency means
a falling iron ore price is less troublesome
than seen in 2012 and increased export
levels ensure slim margins can still mean
protability for the companies concerned.
More positively, the 2014 budget was
largely a win for the resource industries
with the government pledging to abolish
the Mineral Resources Rent tax and support
development of new projects whilst cutting
red and green tape requirements. The Diesel
Fuel Tax Rebate scheme remains unchanged
and a promise of $100 million as exploration
incentives should help halt the decline in
exploration spending seen industry wide
in recent years. The decision to develop a
whitepaper to consider a Northern Economic
Zone will be popular as will the political
focus on increased infrastructure projects.
Longer term prospects for mining remain,
in our opinion, positive with continued high
demand, a very skilled experienced workforce
and good infrastructure access. Australia has
a very strong traditional resources base and
remains top of the queue to meet the
emerging Asian market demand.
The resource industry market
turnaround may take several years to occur
but more positively, signs were of increasing
manufacturing industry spend in 2013-14
to partially ll the void. Other industries are
also improving such as the LNG sector.
There are seven Australian based LNG
projects coming on stream over the next ve
years, accounting for around 60 per cent of
the 138 bcm under construction worldwide.
Current LNG projects under construction
represent a combined $188b in investment,
and revenues are expected to increase
ve fold over the next ve years. On the
Australian east coast major investment in
rail is positive with the rst step to
investigating the Inland Rail line to
Brisbane being conrmed.
Glen Cass, Managing Director,
WYN Recruitment
www.wynrecruitment.com
glen.cass@wynrecruitment.com
SIGNS ON THE WEST COST FOR
IRON ORE OPERATIONS INDICATE A
MOVE TOWARDS STABILIZATION EVEN
THOUGH PRICES HAVE FALLEN BELOW
THE $100 A TONNE MARK.
90_91_G20_Mining.indd 91 27/06/2014 20:47
Feature / Future of Education
Konica Minolta and iMirus, have partnered with the leading
authority in K-12 and higher education researchthe New
Media Consortium (NMC)to bring insight into the future
trends and challenges in the feld of education.
Trends and Challenges
in Education: What global
leaders need to know!
I
f you ask current world leaders today,
what is the single most important
initiative in preparing our childrens
future, the response is simple
education. Two of the top print and
digital technology companies in the world,
Konica Minolta and iMirus, have partnered
with the leading authority in K-12 and
higher education researchthe New Media
Consortium (NMC)to bring you insight into
the future trends and challenges in the eld
of education through a special digital
version of an NMC and Open Universities
Australia report:
The 2014 NMC Technology Outlook for
Australian Tertiary Education: A Horizon
Project Regional Report reects a collaborative
research effort between the New Media
Consortium (NMC) and Open Universities
Australia to help inform Australian education
leaders about signicant developments in
technologies supporting teaching, learning,
and creative inquiry in tertiary education.
All of the research underpinning the report
makes use of the NMCs Delphi-based process
for bringing groups of experts to a consensus
viewpoint, in this case around the impact of
emerging technologies on teaching, learning,
or creative inquiry in Australian tertiary
education over the next ve years. The
same process underlies the well-known
NMC Horizon Report series, which is the
most visible product of an on-going research
effort begun more than 12 years ago to
systematically identify and describe emerging
technologies likely to have a large impact
on education around the globe.
The 2014 NMC Technology Outlook for
Australian Tertiary Education was produced
to explore emerging technologies and forecast
their potential impact expressly in a tertiary
education context. In the effort that took
place from January through March 2014, a
carefully selected panel of experts was asked
to consider hundreds of relevant articles,
news, blog posts, research, and project
examples as part of the preparation that
ultimately pinpointed the most notable
emerging technology topics, trends, and
challenges for Australian tertiary
education over the next ve years.
Known as the 2014 Horizon Project
Australia Expert Panel, that group of thought
leaders consists of notably knowledgeable
individuals, all highly regarded in their elds.
Collectively the panel represents a range of
diverse perspectives across the education
sector. The project has been conducted under
an open data philosophy, and all the interim
projects, secondary research, discussions,
and ranking instrumentation can be viewed
at aus.wiki.nmc.org.
The 12 technologies to watch presented
in the body of the report reect our experts
opinions as to which of the nearly 60
technologies considered will be most
important to Australian tertiary education
over the ve years following the publication
of the report. As Table 1 above illustrates,
the choices of our experts overlap in
interesting ways with those who contributed
to the NMC Horizon Report > 2014 Higher
Education Edition, which looked at
technology uptake from a global perspective,
and the 2013 NMC Technology Outlook
for Australian Tertiary Education, which
provides perspective on how the technology
discussions in Australia have shifted
in the past year.
All three of these projects expert panels
a group of 145 acknowledged experts
strongly agree that mobile learning and online
learning, in some form, will likely tip into
mainstream use within the next yeara trend
that spans education across much of the
world. While there are several other overlaps
between two of the panels, there are some
differences between perceived time-to-
adoption horizons. For example, the 2013
Australian panel and the 2014 Higher
Education panel felt that learning analytics
and the mining of student data would enter
the mainstream within a year, while the 2014
Australian panel placed the topic further out,
at two to three years away. That is not to
say that learning analytics has slowed in
Australian tertiary education, but different
facets of it have emerged in the past year,
such as adaptive learning, adding more
complexity to the topic that will require
more time to explore and implement at scale.
Both the 2014 Australian panel and global
Higher Education panel agree that games and
gamication are gaining traction in teaching
and learning, but expect it will take two to
three years to fully come to fruition. While
games and game elements have proven to
Table 1: Comparison of Final 12 Topics Across Three NMC Horizon Research Projects
92_93_G20_Imirus.indd 92 27/06/2014 20:49
Feature / Future of Education
make learning more engaging for students,
some panel members discussed concerns
about educational games matching the high
quality of games that are produced for
entertainment. Individual institutions,
such as Grifth University and their
World Trade Game, have developed
successful models to emulate.
New this year to the list of top challenges
facing Australian tertiary education is the
concern over keeping formal education
relevant. As the workforce has evolved,
calling for a mix of highly technical and
communication-centric skill sets, student
expectations of the traditional university
degree are changing. There is less perceived
value in large lecture hall courses and a
greater emphasis on campus experiences
that invoke more hands-on, immersive
learning that either simulate the real
world or are part of it.
These points and comparisons provide
an important context for the main body
of the report. There, 12 key technologies are
proled, each on a single page that describes
and denes a technology ranked as very
important for Australian tertiary education
over the next year, two to three years, and
four to ve years. Each page opens with a
carefully crafted denition of the highlighted
technology, outlines its educational relevance,
points to several real life examples of its
current use, and ends with a short list of
additional readings for those who wish to
learn more. Following those discussions are
sections that detail the expert panels top
ranked trends and challenges, and frame
them into categories that illuminate why they
are seen as highly inuential factors in the
adoption or proliferation of any of these
technologies over the coming ve years.
Those key sections, and this report in
general, constitute a reference and
straightforward technology-planning guide for
educators, researchers, administrators, policy
makers, and technologists. It is our hope that
this research will help to inform the choices
that institutions are making about technology
to improve, support, or extend teaching,
learning, and creative inquiry in Australian
tertiary education. Educators and
administrators worldwide look to the NMC
Horizon Project and both its global and
regional reports as key strategic technology
planning references, and it is for that purpose
that the 2014 NMC Technology Outlook for
Australian Tertiary Education is presented.
To view the entire report, visit http://nmc.
imirus.com/Mpowered/book/vnmc14/i3/p1
For more information about the New Media
Consortium visit www.nmc.org.
KNOWN AS THE 2014 HORIZON
PROJECT AUSTRALIA EXPERT
PANEL, THE GROUP OF THOUGHT
LEADERS CONSISTS OF NOTABLY
KNOWLEDGEABLE INDIVIDUALS,
ALL HIGHLY REGARDED IN
THEIR FIELDS.
92_93_G20_Imirus.indd 93 27/06/2014 20:49
T
urkey has joined various
international organizations, which
aim to provide a more secure
investment environment for foreign
investors, such as the WTO, IMF, World
Bank Group, as well as G-20.
Ensuring global economic and nancial
stability, reforming the global economic
system according to the realities of today,
reecting the increasing weight of emerging
economies are important issues for Turkey.
As a member of the G-20, Turkey, with its
global and regional connections and dynamic
economy, gives utmost importance to
expanding and strengthening the
competiveness, effectiveness and visibility
of its business environment.
In 2015, Turkey will assume the G-20
Presidency and host the G-20 Leaders
Summit. Turkey attaches the highest
importance to this task. Turkey also aims
to further develop the relationship and
cooperation between the G-20 and the
countries and organizations in its region.
In addition, Turkey has signed various
agreements to protect and promote
investments and to avoid double taxation
with specic countries. In other words,
Turkey has internal as well as external checks
and balances in place to ensure the efciency
of the business environment in Turkey.
Which industry sectors in Turkey
are currently showing the most
investment potential?
Abundant investment opportunities are
available in Turkey ranging from real estate,
nance, automotive, ICT, energy, renewable
energy, iron and steel to petro-chemicals. The
national and local authorities in Turkey have
been implementing numerous investment
projects through PPP, and they are also keen
to realize further opportunities in education,
energy, defense, healthcare, transportation
and other public services. Similarly,
opportunities are also available in the
privatization projects.
It is also a national target for Turkey to
make Istanbul an international nance center.
Having been tested by the global economic
crisis, Turkey has one of the most stable and
protable nancial sectors in its region. The
Turkish governments Istanbul Finance Center
project offers global companies a chance to
run their nancial operations in the region
through Istanbul, thanks to various
incentives, a skilled workforce, and a
global, cosmopolitan city with a vibrant
local economy.
What are the key factors you would
highlight to companies and investors
considering Turkey as part of their
future business strategy?
Turkey has set specic targets to achieve
by 2023, the centennial celebration of the
foundation of the republic, from healthcare
to economy, and from defense to education.
It targets to become one of the top 10
economies in the world with a GDP of
USD 2 trillion, to increase exports to USD
500 billion, to upgrade the countrys energy,
transportation and healthcare infrastructure
through the construction of hospital cities, to
more than double its electricity generation,
and to build new bridges on the Bosphorus
and the Dardanelles straits.
What benets have resulted from Turkeys
status as an ofcial European Union
candidate country, and how do you
envisage the countrys future investment
landscape once accession is conrmed?
Turkey has been an EU accession country
since October 2005 when the negotiations
started for full membership. The hindsight
speaks for itself; Turkey has attracted
more than USD 70 billion of foreign direct
investment from the EU over the past eight
years since the negotiations started. Today
there are more than 18,000 companies from
the EU countries with active investments
in Turkey. Similarly, foreign trade between
Turkey and the EU has tremendously
increased. It is noteworthy to highlight that
almost three quarters of FDI inows to
Turkey have come from the EU countries - a
clear indication of our economys de facto
integration with the EU economy.
Turkey became a member of the European
Union Customs Union in 1996, since then
trade between Turkey and the EU has more
than quadrupled. Today, many EU companies
are using Turkey as a manufacturing base for
the EU and other markets surrounding Turkey.
Most European business leaders choose
Turkey not just because of its vast domestic
market, but also to expand their businesses in
the region through Turkey, using it as a hub
for their regional operations. The European
Union accession negotiations have made
Turkey one of the most attractive destinations
for foreign investment, and an entry to
European Union as a member country
will serve both Turkey and other
investing countries.
How does Turkeys strategic geographical
position contribute to its appeal to
investors, domestically and regionally?
Turkey has part of her land in Europe and
other part in Asia, and is referred to as the
bridge between the East and the West. It is
indeed a source of sensation when every time
you cross the Bosphorus Bridge, as you cross
between Europe and Asia at the same time.
Yet, the phrase of the bridge between the
East and the West does not quite explain the
geopolitical benet of Turkey and its location
A Safe Harbour for international
investors with its dynamic economy
Interview / Turkeys Leadership
Authored by: Mr. Ilker Ayc, President of Prime Ministry Investment Support and Promotion Agency of Turkey
With its young population, fast-growing economy and strategic location, Turkey
ofers vast opportunities to international investors and will continue to be one of the
top destinations for investments in its region and in the globe.
Advertisement
96_98_G20_Turkey_Advocacy.indd 96 27/06/2014 20:52
in the global map. Especially in the current
uncertain economic climate in mature
markets of the US and Europe, the benet of
Turkeys location is that the country is at a
close proximity to North African countries,
the Middle Eastern countries, Iraq, with its
tremendous demand for reconstruction,
resource-rich Iran, Central Asian countries
which are also rich in natural resources
and in an urgent need to upgrade their
infrastructure, and Russia in north.
All of these countries have potential demands
that are much stronger than mature markets.
Of course, it is right next to the EU. Turkey
has been a member of the EU Customs Union
since 1996 and any product manufactured
in Turkey can be shipped to Europe without
paying customs duties. Most large-scale
companies, however, have already done what
they have to with regard to European market,
but very few activities are available in the
Middle East. North Africa and Central Asia
are even less developed as a market for
them and when they try to establish a
regional base to develop these markets,
Turkey is often the answer.
What role does ISPAT play in
assisting potential and existing
foreign investors in Turkey?
Turkey strongly supports foreign investors
through its public institutions. To this end,
it established the Investment Support and
Promotion Agency of Turkey (ISPAT), under
the auspices of the Prime Ministry. Since its
foundation in 2006, the Agency has been
providing assistance to global investors before,
during and after their entry into Turkey. The
Agencys free services include, but are not
limited to providing market information and
analyses, site selection, B2B meetings,
coordination with relevant governmental
institutions, facilitating legal procedures and
applications, such as establishing business
operations, incentives applications, obtaining
licenses and work permits. Being attached to
the Prime Ministry and directly reporting to
the Prime Minister provide the Agency with
operational freedom and exibility.
The Agency serves as a reference and a
point of contact for international investors by
linking them with both the government and
businesses in Turkey, working on a fully
condential basis and functioning as a
private venture. We consider investors
as clients and client satisfaction is a top
priority for us.
Of the many success stories of foreign
and multinational companies expanding
their operations in Turkey, which are
your personal highlights?
Today, there are more than 38,000 foreign
companies in Turkey and they invested
billions of dollars in Turkey over the last
decade. In order to benet from Turkeys
economic dynamism and unique advantages,
such as a young population, skilled labor
force, economic performance, strategic
location, and its historical and cultural ties
in the region, many global companies have
either established their manufacturing bases
in Turkey or moved their regional
headquarters to Istanbul as the country
offers a robust platform for economic
expansion on a regional scale, enabling these
companies to leverage common qualities and
local capabilities in Turkey. For example, HP
has inaugurated a manufacturing facility in
Turkey to produce and export more than 2
million computers to the Middle East and
North Africa. GE Healthcare has moved its
regional headquarters to Istanbul to manage
its operations in 80 countries in four major
regions - Central Asia, the Middle East, Russia
and Africa. Both Coca-Cola and Microsoft
have their regional headquarters in Turkey,
managing almost a hundred countries
from Turkey.
Do you have a concluding message
for potential investors?
As the president of the Investment Support
and Promotion Agency of Turkey, I invite
global investors to join Turkeys economic
rise. The global economy is undergoing a
profound transformation; the center of the
world economy is shifting toward emerging
economies like Turkey. In such a juncture,
Turkey is differentiating itself economically
with its robust and stable economic growth;
hence it is the right time to invest in Turkey
in order to seize the opportunity. Global
investors will not only benet from the
opportunities in Turkey but also in emerging
markets surrounding Turkey.
AS THE
PRESIDENT OF
THE INVESTMENT
SUPPORT AND
PROMOTION
AGENCY OF
TURKEY, I
INVITE GLOBAL
INVESTORS TO
JOIN TURKEYS
ECONOMIC RISE.
The fastest growing economy among the OECD members with
an average annual growth rate of 5.2% (OECD 2012-2017)
One of the fastest growing economies in the world and the fastest
growing economy in Europe with an average annual real GDP
growth rate of 5,1% over the past decade (2004-2013)
More than 37,500 foreign companies have already invested in Turkey.
How about you?
16
th
largest economy in the world with over $1,1 trillion
GDP at PPP (IMF 2013)
A population of 76,6 million with half under the age of 30,4
Access to Europe, Caucasus, Central Asia, the Middle East and
North Africa
Highly competitive investment incentives as well as exclusive
R&D support
Around 610,000 university graduates per year
99_G20_ADVERT_TURKEY.indd 2 27/06/2014 18:08
Sergey Aksyonov. Aleksei Chaliy. Sergey
Chemezov. Vladimir Dzhabarov. Andrei
Fursenko. Sergey Glazyev. Alexei Gromov.
Sergei Ivanov. Victor Ivanov. Andrei Klishas.
Vladimir Konstantinov. Yuri Kovalchuk.
Dmitry Kozak. Vladimir Kozhin. Mikhail
Malyshev. Valentina Matviyenko. Viktor
Medvedchuk. Valery Medvedev. Sergei
Mironov. Yelena Mizulina. Evgeny Murov.
Sergey Naryshkin. Viktor Ozerov. Oleg
Panteleev. Aleksey Pushkov. Dmitry Rogozin.
Boris Rotenberg. Arkady Rotenberg. Nikolai
Ryzhkov. Igor Sechin. Igor Sergun.
Leonid Slutsky. Vladislav Surkov. Rustam
Temirgaliev. Gennady Timchenko. Aleksandr
Totoonov. Sergey Tsekov. Vyacheslav
Volodin. Vladimir Yakunin. Sergei
Zheleznyak. Yuriy Zherebtsov. Pyotr Zima*
*Source: US Department of Treasury:
Ofce of Foreign Assets Control: Ukraine-related designations 2014 (3/17, 3/20, 4/11, 4/28)
2014 Dow Jones & Company, Inc. All rights reserved.
ARE YOU
EXPOSED TO
RUSSIAN
SANCTIONS?
ARE YOU
WORKING
WITH A
COMPANY
OWNED BY
Protect your company.
Visit dowjones.com/risk
100_G20_ADVERT_DOW JONES.indd 2 27/06/2014 18:09

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