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Development, particularly in Africa
The Working Group on Development has focused on:
Shared understanding on key development issues such as sustainable economic growth, the Millennium Development Goals, peace and security, the need to build on the Monterrey Consensus and the Doha Declaration on Financing for Development, and capacity development and good governance as important elements for sustainable development;
Full commitment to implement the Accra Agenda for Action including the need to move beyond aid effectiveness to development effectiveness;
The value of triangular cooperation in providing an important link that can enhance synergies between South-South and North-South cooperation; and
Assisting states in fragile situations, based on lessons learned from Brazil-Canada cooperation in Haiti and consultations with African institutions.
The Working Group on Development is co-chaired by France (initially Jean-Marc Chataigner, Director of the Office of the Minister of State for Cooperation and Francophonie, and recently Laurent Amar, Deputy Director for Development and Cooperation Strategy and European and Multilateral Issues) and South Africa (Kurt Morais, Director for International Economic Relations, National Treasury). It met five times (Paris, 21 February 2008; Cape Town, 16 May 2008; Paris, 27 October 2008; Mexico City, 16-17 February 2009; and Rome, 29-30 April 2009). In addition, a Workshop on Triangular Cooperation was organized jointly with the African Development Bank (Tunis, 4-5 February 2009) with the purpose of improving understanding of effective triangular cooperation among HDP countries and African partners.
The HDP has enabled partners to take a significant step forward in enhancing common ground on development and international cooperation. They have exchanged ideas and experiences on objectives, principles and instruments of development policy based on a paper prepared by the Partners on Common Ground on Aid Policy and Instruments. Issues discussed included the achievement of the Millennium Development Goals; sustainable economic growth; peace and security; and the importance of building on the Monterrey Consensus and the Doha Declaration on Financing for Development. Partners also exchanged views on the implications of the global financial and economic crisis on developing countries.
The HDP partner countries recognized the need to take further steps to improve the quality, predictability and effectiveness of development policies and international cooperation, including North-South and South-South cooperation, based on the principles of ownership, alignment, coordination, mutual accountability and capacity development. They discussed the importance of mobilizing all potential resources for development. They shared views on the relevance of having a strategic approach to development, covering not only aid but also other resources for development.
Dialogue partners explored the potential for triangular cooperation in enhancing synergies between South-South and North-South cooperation. They engaged in consultations with key institutions such as the African Union (AU) and the African Development Bank (AfDB) and identified Working Principles for Effective Triangular Cooperation. The AU priorities on infrastructure and agriculture were highlighted as ways to foster growth and reduce poverty.
Considering that peace and security are essential for economic growth, sustainable development and poverty eradication, dialogue partners shared experiences and identified lessons learned for effective cooperation with states in fragile situations. Dialogue partners shared thoughts on the importance of implementing their common efforts on the basis of the priorities and needs of developing country partners; of consolidating institutions and capacities in key state functions; of promoting whole-of-government approaches; and enhancing coordination and information sharing. Dialogue partners recognized that such a strategy could contribute to have a greater impact on peace-building and development.
Energy with special focus on energy efficiency
The Energy Working Group has focused on:
Energy security, an increasingly important global challenge;
The establishment of a Sustainable Buildings Network to facilitate energy efficiency in buildings all over the world;
Renewable energy, a key component for low-carbon economic growth and a green economic recovery; and
Retrofit of coal-fired power plants, an important measure for urgent short term reduction of greenhouse gas emissions, given the significant role that coal-fired power production will have also in the future.
The Working Group on Energy is co-chaired by Canada (Carol Buckley, Director General, Office of Energy Efficiency) and India (Ajay Mathur, Director General, Bureau of Energy Efficiency). It met four times (Paris, 18 March 2008; La Chapelle en Serval, 1 December 2008; Moscow, 9 March 2009; and Milan, 22 April 2009). Additional workshops have been organized with relevant stakeholders.
Dialogue partners recognised how crucial energy is to prosperity, economic stability and sustainable development. Economic growth and the desire for better economic opportunities increase the demand for energy. Energy security, energy access, and energy poverty are considered by the partners to be major challenges of our time. The HDP Interim Report states that "What the world needs is a future global energy market that adequately allows supply and demand to match, and that provides stable, economical, clean and safe energy on a predictable basis. To contribute to this end, the development, deployment and diffusion of new technologies, also taking into account the development perspective, the further development of renewable energies and the enhancement of energy efficiency, are necessary prerequisites".
The Energy Working Group focused its discussions on energy efficiency, recognizing its high potential to raise energy security and to contribute to climate change mitigation through reduced CO2 emissions.
The partners have discussed aspects of energy security on the basis of the G8 St. Petersburg Declaration on Global Energy Security, as well as subsequent proposals by G5 countries. The Working Group considered energy security as an overarching concept encompassing other areas of energy policy such as energy efficiency and renewable and alternative energy. It was noted that the economic and financial crisis is increasing the relevance of these discussions – energy markets are interdependent and greater international collaboration on the security of energy demand and supply would be beneficial.
Among alternative actions to combat climate change, efforts to increase energy efficiency give the quickest and most cost effective results. Taking into account that approximately 40% of final global energy consumption is in buildings, the dialogue partners have worked on the creation of an international Sustainable Buildings Network (SBN) to improve the possibilities for all countries to exploit the large untapped potential for energy savings in buildings. The SBN is expected to be launched in the second half of 2009 by the Italian G8 Presidency.
With global energy demand increasing very fast over the next decades, a large share of electricity generation will continue to come from power plants that use coal as primary energy source. The dialogue partners have explored ways to increase energy efficiency in fossil fuel-fired power plants, and have shared national experiences in this field. The discussions have concentrated on the feasibility of retrofitting existing coal-fired power plants to higher efficiency, policy instruments, access to technology, capacity building measures and suitable incentive mechanisms.
The current economic downturn has provided renewed attention to the role of renewable and alternative energies in the energy mix, in particular as national economic stimulus plans have a strong "green" component. They have exchanged information on national experiences, policies, regulations and technologies and on that basis discussed some common factors that can sustain the successful implementation of renewable energy policies.
Promoting cross-border investment to our mutual benefit including the encouragement of responsible business conduct
The Investment Working Group has focused on:
Promoting, protecting and facilitating international investment with the aim of supporting economic and social development.
Improving the investment climate by making it more predictable and stable, while respecting the different legal and institutional settings in partner countries.
Promoting Responsible Business Conduct and Corporate Social Responsibility in order to enhance the contribution of international investment to sustainable development.
The Working Group on Investment is co-chaired by Mexico (Gregorio Canales Ramirez, Director, Directorate General of Foreign Investment, Ministry of Economy Mexico) and the United States (Wesley Scholz, Director of the Office of Investment Affairs, United States Department of State). It met six times (Paris, 25-26 March 2008; Paris, 25 June 2008; Mexico City, 23-24 October 2008; Paris, 18 December 2008; Divonne-les-Bains, 12-13 February 2009; and Rome, 27-28 April 2009).
The Dialogue partners noted that international investment is a major source of growth, employment and development in partner countries. The Dialogue has demonstrated its value for deepening mutual understanding of the political challenges the Partners face in maintaining and promoting freedom of investment, particularly in the context of the financial and economic crisis. There is need to strengthen open and transparent investment regimes and resist tendencies to impose restrictions, while acknowledging that each country has primary responsibility for its own economic and social development and for protecting its own legitimate national security interests.
The Dialogue partners reiterated their commitment to resist pressures to introduce protectionist measures, to monitor this commitment and rectify such measures, and to explore the removal of existing barriers to investment. Partners foresee to discuss the policy implications of joint OECD, WTO, IMF and UNCTAD monitoring. The HDP has facilitated the exchange of information on measures that affect investment decisions and the informal discussion of the links between national measures and an effective and coordinated international response to the crisis, avoiding negative external impacts.
Dialogue partners discussed enhanced coherence in international investment rules as central for growth and development. Partners consider that such rules should ensure respect for the rights of foreign investors and preserve the policy flexibility for governments to regulate according to legitimate public interests while respecting regulatory predictability. Dialogue Partners examined dispute settlement processes and their implications with respect to the rights and obligations of investors and host countries. A balanced approach is necessary to meet the needs of governments and investors and enhance transparency of the international arbitration system. In the future it may be useful to discuss the conditions and elements that would be necessary for consideration of a multilateral framework. OECD and UNCTAD have participated in discussions.
The Dialogue partners coincided that building confidence and trust in open investment policies is crucial to ensure public support of foreign direct investment and that common principles of responsible business conduct and corporate social responsibility contribute in this respect. In this context international voluntary CSR instruments, including the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy, the OECD Guidelines for Multinational Enterprises, and the UN Global Compact, could be fostered and promoted.
Promoting research and innovation including IPR
The Innovation Working Group has focused on:
The benefits of promoting and protecting innovation, knowledge, entrepreneurship, and creativity and associated intellectual property rights (IPRs) to the benefit of all economies;
The importance of an enabling policy and business environment where intellectual property rights are respected;
The costs of counterfeiting and piracy for innovative firms in all countries and the importance of fighting against the infringement of intellectual property rights;
The contribution of genetic resources and associated traditional knowledge to innovation, especially in the agricultural and pharmaceutical sectors, and the importance of adequate protection;
The important role of the World Intellectual Property Organisation (WIPO) in developing an efficient, accessible and balanced international intellectual property system in response to a rapidly evolving environment.
The Working Group on Innovation is co-chaired by India (Ajay Shankar, Secretary, Department of Industrial Policy & Promotion) and the United Kingdom (Ian Flecher, CEO, Intellectual Property Office). It met five times (Paris, 3 April 2008; Wilton Park, 19-20 June 2008; La Chapelle-en-Serval, 6-7 November 2008; Rio, 18-19 March 2009; and Milan, 24 April 2009).
The Heiligendamm Dialogue on Innovation has made an important contribution to build common understanding on priorities of Partner countries, on the socio-economic aspects of intellectual property, and on ways to increase the efficiency of the international system to the benefit of all. In particular, the Dialogue has served as an important platform for exchanging views on changes such as the digitalisation of the economy, the internationalisation of research and development networks, industrial design, and the development of open innovation.
National innovation systems are increasingly interconnected and there is great value in mutual learning about country experiences in the design and implementation of innovation policies. In particular, an effective global IP system is seen as an important foundation. Partners have also shared the view that mutually-agreed technology transfer can make an important component for diffusion and dissemination of innovation. Technology transfer is a complex undertaking, national laws, international obligations and IPR respect are important in this regard, as it is to involve important stakeholders such as government, industry, and academia in developing innovative models and strategies that reflect country- and business-specific situations.
Another important area of work has been counterfeiting and piracy, including of falsified medical products. Such phenomena inflict economic losses to innovative firms in all countries and strengthened international collaboration is required to prevent infringement of intellectual property.
Genetic resources and associated traditional knowledge can also contribute to innovation, especially in the agricultural and pharmaceutical sectors. The rights of indigenous groups and members of local communities, as determined by relevant national laws, ought to be respected. Likewise, it was noted that countries have sovereignty over genetic resources and that prior informed consent and equitable benefit-sharing for the use of genetic resources and associated traditional knowledge are important issues.
A final area where Partners have found value in exchanging views is on the important role of the World Intellectual Property Organisation (WIPO) in developing an efficient and accessible international IPR in response to a rapidly evolving environment. They acknowledged the substantial and institutional challenges to the processing of patent applications posed by changes in the world economy and that these may be particularly severe for small- and medium-sized enterprises. From the exchanges it became clear that WIPO should continue to reinforce its activity in these areas, to implement the Development Agenda and facilitate the development of vibrant IP regimes in its Member States which build respect for IPRs and promote their socio-economic development.
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