Why a Global Standard for a stronger, cleaner, fairer economy?
To restore confidence in our economies among consumers and investors, we must act to forge a stronger, cleaner and fairer world economy. This calls for strengthening the rules by which market economies operate. It also demands the observance of fundamental standards of propriety, integrity and transparency in business dealings.
What is the Global Standard?
Launched as a concept by the Italian G8 Presidency in early 2009, the Global Standard aims to develop a set of common principles and standards for propriety, integrity and transparency in international business and finance.
In the G8 Declaration "Responsible Leadership for a Sustainable Future" adopted at the L'Aquila Summit, G8 Leaders agreed on the objectives of a strategy to create such a comprehensive framework, the “Lecce Framework”, and to "make every effort to pursue maximum country participation and swift and resolute implementation"
The OECD has been associated with this initiative since its start. See here for a timeline of the run-up to the G8 L'Aquila Summit.
The Global Standard draws on a wide range of instruments, established or under development, sharing a common thread related to propriety, integrity and transparency. It classifies them into five categories:
financial regulation and supervision,
tax cooperation, and
transparency of macroeconomic policy and data.
The instruments on which the notion of a Global Standard is built include existing tools and initiatives of the Financial Action Task Force on Money Laundering (FATF), Financial Stability Board (FSB), the International Monetary Fund (IMF), OECD, World Bank, and other international organisations. The project is to be seen in the context of other ongoing international initiatives, including in particular the Global Charter for Sustainable Development. The OECD, in collaboration with other international organisations, is providing support to ensure coherence and consistency between the two efforts.
Why a Global Standard blog?
The Global Standard is “work in progress”. This is why this page also includes a blog: www.oecd.org/globalstandard/blog. The objective is to generate informed opinions while stimulating an open and inclusive discussion around the Global Standard.
What would you like to see in the Global Standard?
What should leaders take into account in their thinking about the Global Standard?
These are key questions you may wish to consider when you submit your posts. We invite the constructive participation of all. We welcome your contribution.
The February 2009 G7 Finance Ministers and Central Bank Governors meeting in Rome marked a formal starting point for this ambitious task.
It was followed by the Villa Madama meeting on a “Global Standard for the 21st Century”, again held in Rome.
In the next major milestone, G8 Finance Ministers meeting in Lecce, Italy, on 12-13 June gave backing in their communiqué to development of the Global Standard to underpin sustainable, long-term economic growth.
>> Secretary-General Angel Gurría outlines OECD's extensive ongoing relationship with the G-8 and notes specific areas of OECD work prepared for the G-8 Summit in l'Aquila.
On 25 June, the 2009 Meeting of the OECD Council at Ministerial Level also endorsed the development of common standards and processes in international business and finance, welcoming the work of the OECD in relation to the Global Standard.
The initiative of the Global Standard was agreed upon and brought a step forward during the Leaders of the Group of Eight meeting that was held in L’Aquila on 8-10 July. See timeline here.