Post Rio+20: Where Do We Stand 21 Months Later?

Thursday April 3, 2014 6:30-8:30 PM

42 West 44th Street, New York, NY 10036

Prepared by:

Louise Kantrow

Permanent Representative of the ICC to the UN

ICC OVERVIEW

Founded in 1919 by a group of industrialists, financiers and traders who called themselves “the merchants of peace” who believed fervently that strong and mutually beneficial commercial ties among nations would not only make them more prosperous but also make them less likely to go to war.

Today, ICC is the largest, most representative business organization in the world, encompassing 6.5 million businesses in our global network, with national committees in 130 countries, and active presence in over 230 countries though ICC’s World Chambers Federation.

The fundamental mission of ICC has always been to promote an open international trade and investment system and foster the economic growth of developed and developing countries alike, particularly with a view to better integrate all countries into the world economy.

ICC has three main activities: rule setting, dispute resolution, and policy advocacy.

Private sector leaders and experts drawn from ICC’s networks establish the business stance on broad issues of trade and investment policy as well as on vital technical, sectoral and regional subjects.

ICC AT THE UNITED NATIONS

During the 1920s and 1930s, the International Chamber of Commerce took part in most economic conferences convened by the League of Nations, where it had been accredited since 1920. By early 1922, the secretariat of the Economic Section of the League began consulting with the International Chamber of Commerce as the representative of business.

On 1 October 1946, the ICC was accorded General consultative status with the UN Economic and Social Council (ECOSOC) – the highest level consultative status.

ICC promotes business views and policy guidance at the United Nations through substantive engagement/ partnership with UN Agencies, Departments and Programmes and participation at intergovernmental deliberations.

Coordinate the work of the Global Business Alliance on Post-2015. Support ICC Secretary General and ICC HQ on UN activities of: the Post-2015

Development Agenda including (1) Open Working Group on Sustainable Development Goals; (2) Intergovernmental Committee of Experts on Sustainable Development Financing; (3) High-Level Political Forum; as well as the Landlocked and Least Developed Countries; UN Global Compact; Financing for Development; and UN Peacebuilding Commission among others.

ICC AND INTERNATIONAL TRADE NORMS

As the foremost business rules-maker for international trade, ICC sets voluntary rules that enterprises from all parts of the world apply to millions of transactions every year.

The rules of the Commission on Commercial Law and Practice (CLP), such as Incoterms® 2010, have become part of the legal fabric of international commerce.

Products relating to the work of the Commercial Law and Practice Commission include:

- Incoterms - Commercial Agency - Confidentiality- Distributorship- eContracting - eTerms 2004- Force majeure - Legal Handbook for Global Sourcing Contracts

- Mergers and Acquisitions- Model Subcontract- Occasional Intermediary Contract- Sale of goods- Technology Transfer- Trademark licensing- Turnkey Transactions

GLOBAL BUSINESS ALLIANCE FOR POST-2015

• In September 2015 the member states of the United Nations will convene to approve a new global agenda to resolve two of the most critical issues confronting the world community: how to end poverty and how to promote sustainable development.

• A preparatory process that will culminate in this historic meeting of the General Assembly is underway and unlike the Millennium Declaration, the business community is involved to help shape policy debate, contribute critical areas of expertise and demonstrate best practices.

• At these intergovernmental meetings, operating under the rules of the Major Group process, the official views of the private sector will be represented by the Business and Industry Major Group.

• Business representatives came together during the opening of the UN General Assembly in September 2013 to form The Global Business Alliance for Post 2015 in order to make effective, concrete and long-term contributions to the new international development agenda.

• Composed of major international private sector organizations, the Alliance encompass the views of global, regional, national and sectoral business organizations and associations, as well as, companies from multinational corporations to small and medium size enterprises from all geographic regions having a shared vision that market-based solutions are essential to move toward a more sustainable and equitable world.

GBA ORGANIZATIONS

The Global Business Alliance for post-2015 is a diverse group across sectors and nations, which offers a broad range of approaches, expertise and perspectives to strengthen and inform the United Nations deliberations at every step of the way.

ENABLING ENVIRONMENT

One critical and over-arching pre-condition for sustainable development is good governance and an enabling environment.

At all levels – domestic markets, foreign investment and international trade – private enterprise requires an operating environment conducive to growth and development, including:

– peace and stability, – the rule of law, – good governance with accountability and transparency, – absence of corruption– adequate infrastructure,– educated workforce, – clear property rights and enforceable contracts

Creating the right regulatory environment for business to thrive will build on: a stable macroeconomic and regulatory environment, supported by sound fiscal and economic policies reviewing regulation affecting business to ensure it creates an enabling environment for doing business

and has a pro-employment impact whilst also meeting its regulatory purpose reforming regulations to redress legal and administrative barriers to formalization better facilitating and supporting the registration and early stage growth of new businesses (including

providing access to credit, financial support, often at the micro level) providing sound, open and transparent government, free from corruption and inefficiency, which strives

to make investment and partnership opportunities accessible to all but particularly to new, smaller businesses

protecting property rights and the rule of law and ensuring efficient law enforcement systems embracing an inclusive and open society, with equal opportunities for all Develop local expertise capable of drawing on readily available international standards, tools and

expertise for carrying out commercial law reforms at the country level.

REGULATORY ENVIRONMENT

Commercial law, depending on how one drafts it, can promote local productive capacities or make ones’ local market less competitive;

it may create mechanisms to ensure accountability or may only give impression that it does so; it can create market incentives for corporate responsibility and good governance or can promote fraudulent activities;

it may be an effective deterrent of conflicts triggered by economic factors by addressing their root causes or may trigger conflicts by creating environment where favoritism and corruption flourishes and inequalities are involved.

Outdated commercial law framework is a major impediment to development and the effective mobilization of resources, creating barriers to the formalization of the informal sector of economy, inclusive finance, innovation, new economic opportunities, public expenditure efficiency and savings, recovery from financial crisis and other benefits.

COMMERCIAL LAW

ABSENCE OF RULE OF LAW

A functional legal system is not only key in building economic foundations, it is also crucial in safeguarding democratic values.

Without an integrated system of institutions that create order and facilitate daily transactions of all types – from traffic flow to business contracts – true rule of law and true democratic governance are lacking.

Widespread informality leads to weak rule of law and corruption; in the absence of legal protection, that comes with property rights and the livelihood of informal entrepreneurs depends on the whim of local officials. When legal protection is out of reach for the majority of the population and when rules are enforced arbitrarily, abuse thrives and democracy cannot flourish.

RECOMMENDATIONS

Promotion of consensus-building through stakeholder dialogue is vital for designing effective solutions and for implementing them in practice.

Improved state-business relations can contribute to a better understanding of private sector needs by the government and thus to a more efficient allocation of resources in the economy.

A government that is informed through regular meetings with the private sector about investment climate problems will usually have stronger ownership for reforms.

Constant dialogue with private investors is also necessary to enable public officials to assess where markets can be expected to work and where they are likely to fail and offer or withdraw public support accordingly. This can create trust between the public and private sector, make policies more predictable, and thus minimize the risks for the private sector.