This Newsletter has been prepared by the Public Affairs Division of the OECD for the purpose of informing the public of OECD cooperation with civil society. The Public Affairs Division acts as a clearing house for information about OECD dialogue with civil society. OECD staff who are in contact with civil society through consultations, workshops or other activities contribute to this newsletter.

OECD countries appoint Angel Gurria as new Secretary-General of the OECD from June 2006

I. Feature Article: OECD Forum 2006 “Balancing Globalisation” 22-23 May, Paris

This year’s OECD Forum drew over 1400 participants from business, government, civil society, academia, and the media to discuss globalisation and how to strike a better balance between the advantages and disadvantages, the winners and the losers (www.oecd.org/forum2006). 

The topics of the two-day discussion ranged from economic growth and jobs to energy, investment, technology, development and trade. Keynote speakers included Kostas Karamanlis, Prime Minister of Greece and Finance, Jean-Claude Trichet, President of the European Central Bank, Pascal Lamy, Director-General of the World Trade Organisation, and Stanley Fischer, Governor of the Bank of Israel.

Highlights of the discussion:

 “There are some who perceive global economic integration as a threat, especially as regards socially sensitive issues such as job security and unemployment…. And there are others who perceive global economic integration as an opportunity for a more prosperous world….In both cases, however, global economic integration is a challenge. Indeed, balancing globalisation is a sine qua non condition for a better future for all of us.”

Duck-so Han, Deputy Prime Minister and Minister of Finance and Economy for the Republic of Korea offered his own personal view of globalisation from the Korean perspective:  

“My recollection of Korea’s relations with the international community during my childhood is aid from rich countries after the Korean War. Then I remember our parents began running all around the world to sell our products.  Salaries rose and we could afford to buy larger houses.  While in comes continued to rise, I could see more and more foreigners in Korea, not only in the business of trade, but also in finance and even in sports. And today I am standing in front of you to speak of globalisation.”

“Although history has repeatedly proven that globalisation brings economic prosperity with better opportunities, many people still resist and even fear it.  This is primarily because the enhancement of efficiency resulting from globalisation is brought about by intensified competition among countries firms and workers. … if we fail to contain it at acceptable levels, a number of countries will continue to resist the trend of globalisation, putting the noble cause for the “better welfare of humankind” at peril. And those nations that opt for maintaining closed economies will lose out on opportunities to save their citizens from poverty, eventually finding it even more difficult to promote social integration.”

Kenneth Georgetti, President of the Canadian Labour Congress, evoked concerns of trade unions regarding the growing inequalities between labour and management: 

“The ratio of CEO compensation to average production worker compensation has jumped from 30 to 1 in 1970 to 500 to 1 today… The dominant focus on high, short-term profits imposed by the financial sector has been achieved by slashing jobs, wages and pension and benefit coverage of ordinary workers….Companies must have an eye to the long term if they are to invest enough in research and development, innovation and the skills of workers…the real building blocks of productivity and long-term growth…”

According to John J. Sweeney, President, American Federation of Labour - Congress of Industrial Organizations, "measures are needed to balance the effects of globalisation, otherwise gaps will widen between rich and poor, capital and labour." Mr. Sweeney pointed to the effects on world labour markets of the entry into the global trading system of countries, such as China, India and Russia. This arrival on labour markets of some 1.4 billion extra workers "effectively doubled the existing number of workers around the world, and exercised a downward pressure on wages everywhere".

"We need the right sorts of rules so that there is a race to the top and not to the bottom in terms of employment conditions," Mr. Sweeney suggested. He pointed to China where "there is no protection of workers' rights," and he suggested that if it is good for business to protect industrial property rights, similar benefits should flow from ensuring protection for workers. He added that there should be a focus on "creation of high quality jobs with an emphasis on innovation in which employers would be willing to pay high wages to attract the necessary skills."

Grey Warner, Senior Vice President for Latin America Human Health at Merck & Co., Inc. stressed that developing as well as developed countries can be innovative and benefit from globalisation when the right policies are in place: “The challenge for politicians is to catalyze a dynamic and competitive regulatory and economic environment that leads to sustained job creation. For advanced industrial economies, economic growth and job creation are inextricably linked to the capacity for innovation – the ability to transform knowledge and intellectual assets into new products, processes or services. No nation can maintain high wages or compete in global markets by producing standard products using standard methods, especially against lower cost foreign competitors. My company believes that developing countries are no less capable of wringing economic value from their intellectual assets, but that in order to do so they must promote greater collaboration between the public, private and academic/research sectors.”

Referring to the current WTO trade talks, Fanjul Suárez, Head of Research Intermón Oxfam, pointed out that a country's trade policy is a possible asset in attracting investment because it influences both domestic and foreign investment and is important for any development strategy. Trade can either substitute for or complement investment. Trade can also draw attention to resources and markets that can highlight investment opportunities. So unsurprisingly, greater trade correlates with greater investment flows.

Mr. Suárez expressed his disappointment at the way investment was dealt with in the early years of the WTO. Government proposals then focused on discouraging national governments from imposing any conditions on investors. Oxfam would have preferred to see a more balanced approach preventing the misuse of regulation and a greater opening of markets.

Transparency International’s Huguette Labelle pointed out that financial markets can promote growth, but insisted that people should be concerned not just with growth itself, but with the extent to which growth is equitable, and benefits those in developing as well as developed countries. The World Bank estimates that around $1 trillion is spent each year on bribes, and that a comparable amount of money is laundered. Most of this money must pass through the financial system, Ms Labelle believes, meaning that institutions are in a strong position to police these financial flows, and to prevent such corruption from becoming a barrier to equitable growth. Financial companies have to be more vigilant to avoid assisting fraudsters or corrupt regimes and organisations in developing countries. 

There has been some progress to date via conventions sponsored by the OECD, the IMF, and other bodies aimed at tightening controls on corruption and allowing international efforts to recoup funds shifted offshore illegally. But more could be done, Ms Labelle continued, saying that the market itself is not self-correcting in this regard, and requires some assistance. The trouble is, as she put it, “when the invisible hand wreaks havoc, it is difficult to find an invisible wrist to slap”. There is therefore a need for new or more sophisticated regulation. Voluntary compliance and improved corporate citizenship of the type the OECD encourages are positive steps, she said, but in the end it is strong and intelligent regulation that is required.

Sheri Xiaoy Liao, president of the Global Village of Beijing, a leading Chinese NGO, expressed concern about the environmental challenges ahead. Seven of the world’s ten most polluted cities were in China, she pointed out, while China was the second largest CO2 emitter after the United States. The Chinese government was now aiming to set up a “green partnership” between government, businesses and NGOs. The goal was “harmony between people, society and nature”, measured by a “green GDP” indicator. A great deal was at stake given that 20% of the world’s population lived in China, and therefore China’s choices would be defining for the future of humanity as a whole.

This 7th edition of the OECD Forum provided ministers attending the OECD Council meeting at ministerial level 23-24 May with a wealth of ideas and viewpoints to stimulate their debate. The Forum is, as Korean Deputy Prime Minister Duck-so Han pointed out, a “de facto manifestation of the positive aspects of globalisation” in “seeking and sharing best practices around the world.”

II. Bulletin Board: coming and recent events with civil society

May

22-23- Paris: OECD Forum 2006: Balancing Globalisation (see feature article).

29- Paris: May 9th Informal Consultation between Members of the OECD Working Party on Export Credits and Credit Guarantees (ECG) and Civil Society Organisations (CSOs) to exchange views in the context of the review of the OECD Recommendation on Common Approaches on Environment and Officially Supported Export Credits, which is due to be completed by the end of 2006: a summary of the meeting is publicly available on the OECD Web site and the CSO submissions (in the form of Room Documents) should be made available shortly.

The CSOs requested a further consultation with the ECG based on a revised Draft Recommendation; the ECG, at its subsequent Meeting, agreed that, in principle, another consultation would be welcome; the exact timing and form of this would be decided at a future ECG Meeting. The ECG plans to meet again in September.

June

5-7 – Nairobi, Kenya: Meeting of civil society liaison officers from international organisations For the sixth consecutive year, liaison officers from international organisations met to discuss the situation within their organisations as regards dialogue with civil society. The first networking meeting took place at the OECD in March 2001, and subsequent meetings have taken place in Washington, DC, London, Paris, Geneva, Rome and, this year, Nairobi. The meeting was organised by UN-HABITAT, UNDP and UNEP and included representatives from OECD, ILO, WB, ADB, WHO, the Commonwealth Secretariat, and a number of UN agencies. Participants discussed the role of CSOs in Africa today and the role of MDGs and PRSPs in support of Africa’s development. Presentations by local civil society representatives (Action Aid International, Indigenous Movement for Peace Advancement, Society for Youth Advancement, Kenyan section of the International Commission of Jurists, Defence for Children International, Centre for Law and Research International, Centre for Rural Development and many more) set the tone for animated discussions between local CSOs and the IGO representatives over the two days of meetings. A visit to Kiberia, a Nairobi slum, concluded the visit.

19 – Paris: Roundtable on Corporate Responsibility: Developing a proactive approach to the OECD Guidelines for Multinational Enterprises. Further information is available via www.oecd.org/daf/investment .

19-21 Milan, Italy: Preparatory conference: Workshop on Measuring Well-Being and Societal Progress. The OECD and the Centre for Research on Lifelong Learning (CRELL) are hosting a workshop on "Measuring Well-Being and Societal Progress" at the University Cattolica in Milan, with the participation of the Universities of Bocconi and Bicocca. Tony Atkinson (Nuffield College, Oxford University) will chair the workshop. This workshop is one of several events the OECD is co-coordinating as part of an OECD global project on "Measuring the Progress of Societies".

20-21 - Paris: OECD Guidelines for Multinational Enterprises: Annual meeting of the National Contact Points. Further information is available via www.oecd.org/daf/investment.

23-Paris: OECD Development Centre Informal Seminar: Presentation of the Reality of Aid Global Report 2006. Established over ten years ago, The Reality of Aid network (http://www.realityofaid.org/) comprises more than 40 civil society organisations working in the field of international development co-operation in Asia, the Americas, Africa and Europe. Its analyses of aid and poverty eradication policies and practices in the global development co-operation system as well as its lobbying activities have spurred heated debates in the aid community. The Reality of Aid produces biennially a thematically-based report on international aid issues. The 2006 Report focuses on ‘Conflict, Security and Development Cooperation’. After a presentation by Reality of Aid Chair Tony Tujan, the discussion was led by Jeff Dayton-Johnson, Senior Economist, Development Centre and DAC Chair Richard Manning.

July

6 - Paris: Globalisation and corporate income tax: A meeting of trade union and OECD experts will take place 6 July 2006 at OECD Headquarters taking as theme "Globalisation and Corporate Income Tax". On this occasion, the Centre for Tax Policy and Administration (CTPA) will present recent trends in corporate tax reforms in OECD countries and measures addressing harmful tax practices. The International Confederation of Free Trade Unions (ICFTU) will present its 2006 Report on Corporate Income Tax. The meeting is part of the OECD Labour and Management Programme and is by invitation only.

6-7 – Paris: Global Forum on Sustainable Development Workshop (GFSD) on Economic Benefits of Climate Change Policies of the OECD Environment Committee; representatives of the OECD Business Industry Advisory (BIAC) Committee and the Trade Union Advisory Committee (TUAC) are invited to participate.

September

11-15 Ukraine and 25-29 Armenia: On-site visits during which civil society and business organisations will notably be invited to comment on the examined country's anti-corruption policies. Evaluation reports will be presented at the December meeting of the Anti-Corruption Network for Eastern Europe and Central Asia (ACN), the Secretariat of which is with the OECD Anti-corruption Division.

12 - Paris: Workshop on Evaluating the Effectiveness and Efficiency of Environmental Partnerships. Representatives of environmental NGOs, BIAC and TUAC will be invited to participate.

20-22 – Paris: Working Group on Waste Prevention and Recycling. Representatives of BIAC, TUAC and environmental NGOs (co-ordinate through the European Environmental Bureau ((EEB)) will be invited to participate in the meeting.

21-22 - Berlin: 4th Joint Meeting of the EAP Task Force and the Project preparation committee (PPC). Civil society representatives will be invited to participate in the meeting.

27- Santiago de Chile, Conference on “Detection, investigation and prosecution of bribery” open to a wide range of participants from Chile and other Latin and Central American countries.

October

16 - Paris: Competition Committee/WP2 Roundtable on Entry Barriers in Banking with the participation of BIAC.

18 and 19 - Paris: Competition Committee Roundtables on Competition and Innovation, and on Competition in Bidding Markets with the participation of BIAC.

16-20 Varese, Italy: Working Group on Chemical Accidents and the OECD-EC Workshop on Risk Assessment Practices for Hazardous Substances Involved in Accidental Releases. Civil society and industry representatives will be invited to participate in the meetings.

25-27 Krakow, Poland: OECD Environment Policy Committee (EPOC) Representatives of BIAC, TUAC and environmental NGOs (co-ordinate through EEB) will be invited to participate in a half-day Special Session on the OECD Environmental Outlook and a consultation with the EPOC Bureau.

November

6-7 – Istanbul: Global Forum on International Investment “International investment and the public interest: the case of infrastructure. Further information is available via www.oecd.org/daf/investment.

14-15 Bonn: Working Group on Pesticides. Civil society and industry representatives will be invited to participate in the meeting.

15-17 Bonn: Joint Meeting of the Chemicals Committee and the Working Party on Chemicals, Pesticides and Biotechnology. Civil society and industry representatives will be invited to participate in the meeting.

29-30 Paris: Global Forum on Sustainable Development (GFSD) Roundtable on Public-Private Partnerships in the Water Supply and Sanitation Sector of EECCA Countries. Private sector and civil society representatives will be invited to participate in the meeting.

20-22 – Stockholm: OECD Workshop on "Perfluorocarboxylic acid (PFCA) and Precursors" Representatives of BIAC, TUAC and environmental NGOs (co-ordinate through EEB) will be invited to participate in the meeting.

29-30, Paris: Working Group on Transport -- the European Federation for Transport will participate.

December

11 – Paris, OECD Working Party on Private Pensions. The Working Party will meet with TUAC to exchange views on private pensions' issues. For further information, contact juan.yermo@oecd.org.

11-12, Paris, Istanbul Anti-Corruption Action Plan Monitoring Meeting reviewing anti-corruption progress in Eastern and Centre Europe is open to civil society participation.

Fourth Quarter 2006

NEPAD-OECD Africa Investment Initiative – Launch Event. Further information is available via www.oecd.org/daf/investment

February 2007

27 February-1 March 2007, Paris: Pollutant Release and Transfer Registers (PRTR) Task Force. Representatives of BIAC, TUAC and environmental NGOs (co-ordinate through EEB) will be invited to participate in the meeting.

III. Further reading: OECD Publications regarding civil society

Publications