*{Business and the Global Economy 
ICC statement on behalf of world business to the Heads of State and Government attending the Genoa Summit, 
20-22 July 2001 [http://www.iccwbo.org/home/statements_rules/statements/2001/genoa_summit_trade.asp]
  
French version
     
Paris, 19 July 2001 - The International Chamber of Commerce (ICC), the world business organization, is pleased to present this statement to the Heads of State and Government attending the G8 Summit in Genoa, Italy (20-22 July 2001). The statement addresses several key issues of particular concern to world business;} 

*partie=titre 1. International trade policy *partie=nil

World business believes strongly that the rules-based multilateral trading system built up through the General Agreement on Tariffs and Trade/World Trade Organization (GATT/WTO) is one of the central pillars of international cooperation. It has contributed greatly to liberalizing world trade and improving market access, and is a major driving force for global economic growth, job creation, and wider consumer choice. Regional and plurilateral trading arrangements are no substitute for that system. It is in the urgent interest of all WTO member countries to work closely together to reaffirm in concrete form the key role of the WTO multilateral system in the management of globalization and in enabling its benefits to spread throughout society in all parts of the world.

ICC continues to believe that new broad-based multilateral trade negotiations (whether formally labelled a 'round' or not) under the aegis of the WTO should be a priority on the international economic agenda. Early agreement to launch such negotiations would:
reassure business that governments will continue to seek further market-opening measures and will work to align multilateral rules with new business realities and requirements; 
send a confidence-boosting signal to investors, traders and consumers that, at a time of growing uncertainty in the face of a pronounced slowdown in the global economy, governments from all continents are able to work together not only to resist protectionist pressures but to enlarge the potential for increasing trade and investment links between nations; 
reverse the impression given by governments in recent times that their focus has shifted to a preoccupation with creating bilateral, plurilateral and regional trading arrangements at the expense of efforts to further liberalize multilateral trade through a global institution, the WTO. 

ICC believes that the next ministerial conference of the WTO, scheduled for November 2001 in Qatar, provides a valuable opportunity to launch new multilateral trade negotiations. And it sees the Genoa Summit as a key international gathering to greatly reinforce the momentum in favour of such a goal.

A start has already been made in Geneva, where negotiations on trade in services and agriculture are already under way as mandated by the Uruguay Round. ICC urges an agreement in Qatar to expand this agenda to cover a broader range of trade policy issues so as to improve the prospects of achieving a balanced result that all WTO members can subscribe to - but which is also manageable in the sense of being able to yield results within a relatively short period of time. ICC has recently issued a policy statement on what world business considers to be the strategic priorities for new multilateral negotiations. If Qatar is to succeed, governments must demonstrate flexibility in the search for a consensus and commit themselves to summon the political will to carry out essential preparatory work well before the ministerial conference itself.

ICC continues to attach the highest importance to the faithful implementation, in full and on schedule, of the commitments agreed to by governments in the Uruguay Round and in subsequent multilateral negotiations that formed part of that round's unfinished business.

Of particular importance to ICC is that new broad-based negotiations address as a priority the concerns of developing countries, especially their concerns arising out of the implementation of the Uruguay Round agreements. The developing countries, which now account for about three-quarters of WTO members, carry substantial weight in that organization and it is clear that they will support new multilateral negotiations only if they can feel strongly confident of making dependable gains in access to developed country markets, and especially for products in which they have a competitive advantage.

*partie=titre 2. G7/G8 and the developing countries *partie=nil

ICC would like to state that it warmly welcomes the growing influence of developing countries in intergovernmental organizations and in international economic policy-making. Many developing countries are now major actors in the world economy and their contribution to policy-making is essential to minimize systemic risks and, more positively, to encourage and efficiently manage the process of globalization.

In the past decade, the developing world has for the most part embraced with courage and in good faith the challenges of implementing market economy principles urged upon it by the G7 and other developed countries. In return it has the right to expect due regard for its growing commercial interests and, in particular, improved market access for its exports.

As for the least developed countries, the UN, multilateral development agencies, and national governments should give special priority to capacity-building, particularly as regards human resources development, physical infrastructure and institutional reform. Business will support these efforts, particularly with a view to enabling such countries to attract more foreign direct investment. Towards this goal, ICC played a prominent role in the Third UN Conference on Least Developed Countries held in Brussels in May this year - including in the establishment of an Investment Advisory Council for this group of nations.

*partie=titre 3. Global financial stability *partie=nil

Business has a major stake in preserving and enhancing global financial stability, which is a vital condition for economic growth and critical to expanding international trade and investment. That is why ICC has welcomed the initiatives of the G7 countries to improve the quality and supervision of the financial system at both the national and international levels, involving both borrowing and lending countries.

Business is concerned, however, that reform efforts lack a sense of urgency and that the pace of change is too slow. While strong growth in recent years may have masked systemic weaknesses, these could very well resurface during an economic slowdown, with consequences not unlike those experienced in Asia only a few short years ago. Building a strong and stable global financial system requires continuing attention and steady work.

A key to global financial stability is the convergence of national systems around high-quality international standards and norms in such areas as prudential supervision and regulation, corporate governance, accounting and auditing, and various aspects of fiscal and monetary policy making. At present, initiatives to promote international standards lack comprehensiveness and coordination, and all too frequently the adoption of international standards is counteracted by a serious absence of infrastructure and technical capabilities to assure effective implementation. 

Globalization is creating new risks as well as new wealth. ICC urges the countries represented at Genoa to reinforce international cooperation in minimizing the risks of sudden and internationally contagious collapses in investor confidence and in improving global financial stability. This requires the active participation of developing countries and transition economies. It requires better coordination among international institutions, with a clearer alignment of priorities and agendas. And it requires collaboration with the private sector. To that end, ICC offers itself as a unique institution to coordinate world business views and contributions in working with the G7 countries, the G20 countries, the Financial Stability Forum and other intergovernmental groups dedicated to addressing the issue of global financial stability.

*partie=titre 4. Globalization, technology and development *partie=nil

World business believes strongly that globalization is the most powerful force for raising living standards across the world. Indeed, it has already brought unprecedented advances to billions of people. Increased flows of trade, information technology and capital constitute the best hope for maintaining high economic growth and stimulating sustainable development in all nations. Business accepts that it has an indispensable role to play, together with governments, in explaining the benefits and opportunities that flow from a readiness to adapt creatively to the changes necessary to embrace globalization. The fears and misconceptions must be dispelled. Business will work with governments to promote change and support their efforts to establish the good governance necessary to allow all countries to participate in the gains from globalization.
 
One of the major challenges of today is the emergence of the global knowledge economy and the opportunities it opens to spread more widely the benefits of globalization. ICC welcomed the initiative of the G8 leaders in Okinawa last year in establishing a Digital Opportunities Task Force to report to the Genoa Summit on how to bridge the so-called global digital divide. We trust that this important project will be continued into a further phase and that business will be invited to participate on an expanded scale. ICC is profoundly committed to the value of this G8 exercise. It urges that bridging the digital divide will require a holistic approach to the problem, rather than focussing on just one component of development. A holistic approach should include, among other things, promotion of a competitive marketplace in information technology and services, education and training, regulatory reform and encouragement of foreign direct investment. 

While major advances in communications and information technologies are creating valuable tools for enhancing the capacity of developing countries and economies in transition to integrate themselves into the global economy and share in the benefits of globalization, new technologies in agriculture, biotechnology and life sciences are holding out the promise of dramatic improvements in human nutrition and in health care. The potential for genetically modified food products to feed rapidly growing populations in developing countries is a matter of vital concern to the international community. 

The freedom to research and innovate is one of the main engines of economic growth, rising living standards and job creation. Technological advances have been one of the key driving forces in the history of human progress - even though at the time of their introduction they frequently provoke public fear of the new and different. Business recognises the need for an informed dialogue to ensure that genuine public concerns are addressed. We urge governments to play their roles in ensuring a balanced public debate, and particularly to underline the importance of risk assessment based on sound scientific enquiry and a national application of the precautionary principle. We also believe that it is vital for governments to cooperate closely in developing a common approach to health and safety standards and regulatory requirements in order to accelerate the global diffusion of new technologies and reduce the potential for trade conflicts.

*partie=titre 5. Business in society *partie=nil

The primary function of business is to create wealth and value for its customers, shareholders, employees and society at large. Today, this role of private enterprise in a market economy and the positive contribution of entrepreneurial initiative to environmental and social progress are increasingly recognized worldwide. Wealth generation and economic growth are the foundations of business's capacity to contribute effectively to improved environmental and social conditions.

ICC wishes to express its growing concern at the renewed trend towards the proliferation and widening scope of government-mandated codes of conduct at the international level purporting to improve the "corporate social responsibility" of enterprises, particularly those trading or investing overseas. We urge governments, and particularly those represented at Genoa, to stand firm in rejecting demands by publicly unaccountable, and frequently unrepresentative, external groups seeking to impose such codes on "multinationals" and claiming the right to pass judgement on companies' compliance with them.

There is no demonstrable need for further government-mandated detailed rules of such a nature. Research by a variety of international organizations has found no evidence of any significant or systematic problems, either economic or political, stemming from the activities of the rapidly growing number of multinational enterprises. Numerous studies have shown that multinationals are good corporate citizens who contribute very positively to raising standards among customers, suppliers and business associates - in areas such as labour, the environment and human rights - in countries where they operate.

ICC and its member companies are already demonstrating their determination to encourage good corporate practice and responsible business conduct through principles developed by individual companies - as well as through their participation in the Global Compact, their constructive contribution to the revision of the OECD Guidelines for Multinational Enterprises, and various other initiatives such as the Global Sullivan Principles.

History has shown that improvements in human rights and in labour and environmental standards are more readily attainable in conditions of rising prosperity, produced by the interaction of the market economy and good governance. And good corporate practice is spread more effectively by example, persuasion and peer pressure - rather than by prescriptive government codes and regulations. Voluntary business principles, developed by companies themselves or by business organizations such as ICC, also have the invaluable advantage of bridging cultural diversities within multinational enterprises and offering the flexibility to tailor solutions to particular conditions.

*partie=titre 6. Sustainable development *partie=nil

ICC took a lead role in conveying the views of world business to the 1992 UN Conference on the Environment and Development (the so-called Rio Summit). Ten years on, we find it wholly appropriate that governments should meet again next year in Johannesburg at a further UN "Earth Summit" to evaluate progress and identify new imperatives to be addressed - albeit in the now far wider context of "sustainability".

Business has made an enormous contribution to resolving environmental problems since 1992. It is no longer regarded as the primary cause of environmental degradation. Indeed, it has proved itself to be the most efficient delivery vehicle of innovative and flexible methods of tackling environmental problems. Business is now very much part of the solution, and will be proud to take a positive and pro-active message to Johannesburg.

To ensure a structured and productive participation in the 2002 World Summit on Sustainable Development, ICC is helping business organizations across the world to come together under the common theme of "Business Action for Sustainable Development". The goal of business is to be fully equipped to participate in the dialogue with governments and other stakeholders that will be a key element in the preparation process and the Summit itself. Business will highlight its achievements, particularly since 1992, through voluntary initiatives and projects. Conscious of its key role and the requirement for stakeholder partnerships to tackle complex problems effectively, it will offer a constructive, flexible and cooperative approach.

Meanwhile, business calls on governments to continue international negotiations to combat greenhouse gas emissions in the context of the Framework Convention on Climate Change that came out of the 1992 Rio Summit. Business requires clear policy decisions from governments to enable it to plan its own actions accordingly. Through research, investment and voluntary nitiatives, companies are constantly introducing new products and processes that lower emissions. And the best way for governments to encourage these new technologies is through a free market setting. It is therefore with satisfaction that ICC notes that the governments of the United States, the European Union and many other countries wish to work constructively with their partners to contain greenhouse gases through the development of technology, market-based emissions trading and other innovative measures.