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The Official APEC Publication 2012 G7: Beyond 2015 Report and Business Briefing Authorized by the G7 Task force 2015 Feature / Technologies

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DYNAMIC AND SUSTAINABLE GROWTH:

THE CONTRIBUTION OF INTERNATIONAL BUSINESS INSIDE G7

› WELCOME: Angela Merkel, Chancellor of the Federal Republic of Germany › G7 Leader Perspectives: Statement Overviews › Global Healthcare: The Battle Against Ebola › TTP & TTIP: What They Create For Europe

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The Authoritative G7 Magazine for VIP’s, Delegates, Diplomats and World Leaders

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The Authorised G7 Publication

June 2015

Contents

Official Statements

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31 / Joint Statement on Ukraine 32 / Joint Statement on the Close of the 2014 G7 Summit G7 › Schloss Elmau ❙ Germany ❙ June 7 – 8 ❙ 2015

42 / Leaders Statements

G7 Nations

The Official APEC Publication 2012 G7: Beyond 2015 Report and Business Briefing Authorized by the G7 Task force 2015 Feature / Technologies

G Story by: John V. Oyler

DYNAMIC AND SUSTAINABLE GROWTH:

THE CONTRIBUTION OF INTERNATIONAL BUSINESS The Authoritative G7 Magazine for VIP’s ,Delegates ,Diplomats and World Leaders

63 / Member Nations Profiles

INSIDE G7

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The Authoritative G7 Magazine for VIP’s, Delegates, Diplomats and World Leaders

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Features

28 / Putin’s Russia in Denial By Richard Rousseau

Publisher: Chris Atkins Editor-in-Chief: Chrisella Herzog

60 / Dynamic and Sustainable Growth: The Contribution of International Business

Creative Director: Christian Gilliham christian@cgcreate.co.uk T: (+44) 7951 722265

By Dr Werner Brandt

68 / Getting TPP to the Finish Line: A Review By Paul Nadeau

WElComE NotEs: Editor’s Note Chrisella Herzog

70 / Regional Deals. TPP & TTIP: What They Create for Europe By Almaldo Abruzzini

74 / Time to Reconsider Intellectual Property as a Trade Issue? By Jeremy Malcom

78 / Closing the Gap Through Expanding the Women’s Participation Conversation: Employees and Employers

By Holly Ranson

86 / Leveraging the Benefits of G20: Australia’s Innovative and Game-Changing Approach

Welcome by Angela Merkel Chancellor of the Federal Republic of Germany Horst Seehofer Minister President of Bavaria Contributors: Dr. Richard Rousseau Dr Werner Brandt Paul Nadeau Almaldo Abruzzini Jeremy Malcom Holly Ranson Dr Robyn Stokes Oscar Montealegre

By Dr Robyn Stokes

90 / Ebola: Global Health Threats Need a Global Research and Development Solution. 92 / Speech by Germany Federal Chancellor Angela Merkel at the G7 Dialogue Forum with Trade Union Representatives 96 / High Skill Jobs: The Wave of the Future By Oscar Montealegre

Special Editorial Feature 06 / GCEL: SME’s are the Main Foundation of Our Real Global Economy 10 / GCEL (Continued)

Sponsored Features 20 / Invest in Bavaria: From High-Tech Location to Pioneer in Digitalisation 27 / SIXT: Sixt renders its services at G7 Summit 2015 56 / Advanced Environmental Recycling Technologies: The Next Generation in Decking 84 / Trans Maldivian Airways: The History of Trans Maldivian Airways 04 ❙ g7germany.de

Publishing Firm: The CAT Company, Inc.

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The Authorised G7 Publication

Willkommen

Angela Merkel Bundeskanzlerin der Bundesrepublik Deutschland

Herzlich willkommen! “Think ahead. Act together.–An morgen denken. Gemeinsam handeln.“ Unter dieses Motto haben wir den G7-Gipfel in Schloss Elmau gestellt. Die Gruppe der Sieben ist eine Wertegemeinschaft: Die Staatsund Regierungschefs Frankreichs, Großbritanniens, Italiens, Japans, Kanadas, der Vereinigten Staaten und Deutschlands stehen gemeinsam für Freiheit und Menschenrechte, Demokratie und Rechtsstaatlichkeit, Wohlstand und nachhaltige Entwicklung. Ich werde immer wieder gefragt: Wozu braucht es noch diese informellen Treffen? Schließlich gehören wiederkehrende und standardisierte Gesprächsformate, Telefonate und Videokonferenzen längst zur internationalen Diplomatie. Reicht das nicht aus? Der Wert von Treffen wie in Schloss Elmau liegt ganz besonders im persönlichen Kontakt – in der Möglichkeit, an einem Ort zusammenzukommen, der Raum und Zeit lässt, grundlegende Fragen miteinander zu besprechen und sich persönlich näherzukommen. Schloss Elmau erfüllt alle Anforderungen, damit aus informellen Gesprächen zukunftsweisende internationale Politik wird.

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Von Beginn an standen stabile Finanzen, offene Weltmärkte und ein funktionierender Arbeitsmarkt auf der Agenda. Seit langem fördern wir ein dynamisches und nachhaltiges Wirtschaftswachstum. Die G7 hat immer auch Umweltthemen von globaler Bedeutung im Blick. Zwei UN-Vorhaben sollen deshalb in Schloss Elmau vorangebracht werden: das Internationale Klimaschutzabkommen, das im Dezember in Paris auf der UNKlimakonferenz (COP 21) vereinbart werden soll, und die UN-Agenda für eine nachhaltige Entwicklung. Die Weltmeere sind bedroht durch Verschmutzung mit Plastikmüll. Das belastet nicht nur die Ökosysteme. Über die Nahrungskette kann das auch zu Gesundheitsgefährdungen für Menschen führen. Der Plastikmüll muss reduziert werden. Auch der weltweite Missbrauch von Antibiotika bei Menschen und bei Tieren gefährdet unsere Gesundheit. Die Zahl antibiotikaresistenter Bakterien nimmt zu. Weniger, aber dafür wirksamere Antibiotika beim Menschen und eine andere Art der Tierhaltung sind nötig. Auch in Afrika müssen verlässliche Grundlagen für Frieden und Sicherheit, Wachstum und nachhaltige Entwicklung entstehen. Reformbestrebungen afrikanischer

Staaten brauchen unsere Unterstützung. Dazu gehört besonders, Existenzgründerinnen zu unterstützen und die Rechte der Frauen zu stärken. Faire Arbeitsbedingungen weltweit heißt auch: faire und transparente Lieferketten zu fördern. Afrika ist stärker als andere Kontinente von armutsbedingten Krankheiten bedroht. Ebola hat das gezeigt. Zur Bekämpfung braucht es abgestimmte Notfallpläne, das Gesundheitswesen vor Ort gilt es zu stärken. Die Gespräche in Schloss Elmau sind gut vorbereitet. Außen-, Energie-, und Finanzminister haben im Vorfeld getagt, die Wissenschaftsminister folgen. Die G7-Prozesse sind in Deutschland gesellschaftlich breit verankert. Eine freie und lebendige Zivilgesellschaft ist ein hohes Gut. Dialogforen begleiten den Prozess. Aus Veranstaltungen mit Jugend- und Nichtregierungsorganisationen, Wirtschaftsund Gewerkschaftsvertretern sowie mit Wissenschaftlern, nehme ich Impulse und Erkenntnisse für die G7-Diskussionen mit. Ich freue mich auf die Gespräche und hoffe auf fruchtbare Ergebnisse. Angela Merkel Bundeskanzlerin der Bundesrepublik Deutschland

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The Authorised G7 Publication

Welcome

Angela Merkel Chancellor of the Federal Republic of Germany

Welcome! “Think ahead. Act together. – An morgen denken. Gemeinsam handeln.“ This is the motto we have chosen for the G7 Summit in Schloss Elmau. The Group of Seven is a community of shared values. Together, the Heads of State and Government of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States stand for freedom and human rights, democracy and the rule of law, prosperity and sustainable development. I am constantly asked about the point of these informal meetings. After all, recurrent, standardised meeting formats, telephone calls and video conferences have long been a part of international diplomacy. Isn’t that enough? The value of meetings such as the Summit in Schloss Elmau lies particularly in the personal interaction – the opportunity to come together in one place with the space and the time to discuss central issues and get to know one another better. Schloss Elmau fulfils all the criteria for informal talks to produce forward-looking international policy. Sound finances, open world markets and a functioning labour market were on the

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agenda from the start. We have long been promoting dynamic and sustainable economic growth for some time. Global environmental issues are also always a focus of the G7. Progress on two UN projects is therefore planned for Schloss Elmau: the international climate change agreement which is to be adopted at the UN Climate Change Conference in Paris in December (COP 21) and the UN Sustainable Development Agenda. The world’s oceans are under threat from pollution from plastic debris. This not only has a negative impact on ecosystems. It can also threaten human health via the food chain. Plastic waste has to be reduced. The global abuse of antibiotics in humans and animals also poses a threat to our health. The number of antibioticresistant bacteria is increasing. We need fewer but more effective antibiotics for humans and a different approach to animal farming. A reliable basis for peace and security, growth and sustainable development has to be established in Africa. The reform efforts of African states need our support. That includes, specifically, providing help for women starting their own businesses and

strengthening women’s rights. Fair working conditions throughout the world also means promoting fair and transparent supply chains. Africa is at greater risk from povertyrelated diseases than other continents, as the example of Ebola has shown. Coordinated contingency plans are required to combat these diseases, and local healthcare systems must be strengthened. The talks in Schloss Elmau have been well prepared. The Ministers of Foreign Affairs, Energy and Finance have convened in advance, and a meeting of the Science Ministers is scheduled. The G7 processes attract keen interest within German society. A free and vibrant civil society is a precious commodity. Dialogue fora will accompany the process. Events involving young people’s and non-governmental organisations, business and union representatives and academics have given me ideas and insights for the G7 discussions. I am looking forward to the talks and hope they will bear fruit. Angela Merkel Chancellor of the Federal Republic of Germany

T H E M E T R O P O L I TA N C O L L EC T I O N t h e s e r i o u s b u s i n e s s o f t i m e l e s s p e r f e c t i o n . Uncompromising experience guides the construction of every hand-turned edge and uncut corner. Fine grain cowhide without and vibrant London Tan calf within conspire to blend understated luxury with elegant necessity. The rigours of work and travel made a singular pleasure. e t t i n g e r . t o e a c h t h e i r o w n .

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Editors note

Sustainability

Chrisella Sagers Herzog Editor-in-Chief

It is a key word on every world leader’s mind this year. It is little wonder why: every major international summit, from Germany’s G7 meeting to Turkey’s G20 Meeting, from the United Nations General Assembly to the November COP21 meeting in France, has a theme of sustainability at its core. This sustainability theme is not just about going green—although climate change and sustainable environmental practices are the focus of the COP21 meeting—but rather about creating a world in which resources are available to all. Sustainable job creation, sustainable food supplies, and sustainable economic development, especially in low income nations, are all topics at the forefront of summit agendas in 2015. And there is no better place right now than Germany to kick off this conversation with the 2015 G7 Summit. The nation has not only led the way in clean and renewable energy—it has been the world’s top photovoltaic installer for several years, and is well on its way toward reaching its goals of 35 percent renewable power in the country’s electrical grids by 2020—but its leadership in pulling the European Union through the Global Financial Crisis has demonstrated its commitment to sustainable business development and financial leadership as well. The push for sustainability is inherently an optimistic one—a vision in which we imagine the world we want to create by 2030. But that does not mean achieving sustainability will be an easy task, particularly at a time when international security threats such as cyber espionage and worsening refugee crises demand attention. The pages ahead comprehensively feature calls for bold action and steadfast leadership. Perhaps never before has so much action been demanded of global leaders at this scale: from addressing climate change to solving global poverty; from taking action on a global jobs crisis to structuring international trade deals in ways that are fair and beneficial to all. For 19 years, the publication you hold in your hands has been the authoritative voice in bringing world-class analysis of these global challenges to leaders. It has seen the progress achieved by the Millennium Development Goals and the creation of the Sustainable Development Goals; it has seen this summit grow from the G7 to the G8, and the crises that shrunk it again. The world has seen radical change in these years, and we look with hope toward the radical changes to come. Thank you for reading.

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Welcome

Horst Seehofer Minister President of Bavaria

Welcome to Bavaria – welcome dahoam!

Photography: Thomas Plettenberg

We look forward to welcoming you here in Bavaria. Hospitality is a long-honoured tradition where we come from. Our home— the Free State of Bavaria—is known around the world for its mountains, lakes and thousand years of culture. Elmau is an inspiring location nestled in a spectacular natural landscape where you can experience for yourself why I like to say: “It is a good fortune to live in Bavaria.” Bavaria is Germany’s economic powerhouse. One of every three German patents comes from our state. We generate over one-quarter of our value added in the manufacturing sector. The “Made in Bavaria” label is a sign of top quality. Bavarian manufacturers export well over 50 per cent of the products they make. Bavaria is home to small and medium-sized

enterprises as well as major global players who are successful worldwide. We feel Bavarian and think global. Bavaria is connected to the world. We believe firmly that working together with our international partners is the key to a good future. That is the spirit of the G7 summit—and our Bavarian philosophy. It is the reason why our state has more than two dozen representative offices around the world, from Chile to Japan, from Warsaw to Vietnam. We maintain particularly close ties with nine partner regions in China, India, South Africa, Brazil, Canada, Austria and the U.S. Today’s power regions know that we can only remain competitive through innovation. This is the foundation for tomorrow’s social stability and quality of life. Only courageous and curious people create innovation and premium quality. Our world-class universities attract bright minds

Bavaria is connected to the world. we Believe firmly that working together with our international partners is the key to a good future. that is the spirit of the g7 summit—and our Bavarian philosophy. 18 ❙ g7germany.de

from all over the world. There is a good reason why Munich is Europe’s IT capital. Germany’s decision to transition into a new energy era poses major challenges. Here in Bavaria, we are already meeting one-third of our gross electricity needs through renewable energy today. Bavaria offers opportunities for all. That is why people from Germany and the entire world are moving to our state. In the past 25 years, the population of Bavaria has grown by more than 1.6 million people to 12.6 million. Bavaria is nature and culture, technology and hospitality. I am proud that we are playing host to the world. Come and experience our state’s diversity. The people of Bavaria look forward to welcoming you! Horst Seehofer Minister President of Bavaria

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Putin’s Russia in Denial T he Free State of Bavaria in Germany has been selected to host the G7 Leader’s Summit in June. This is a significant opportunity to make a difference in the global economy and policy. The spirit of the G7 is a belief in, and commitment to, the growth and prosperity of all people on the planet. This vision is shared by world leaders as well as the German economic community. It’s a great honour for me to have been selected to provide one of the official limousine service bringing you safely and comfortable to your conference venue, Schloss Elmau, in the picturesque setting of the Bavarian Alps. We are proud to offer you world-class service. Supporting this summit, we want to contribute, in our way, to great outcomes in times of severe global change by providing you with utmost security, discretion and loyalty. Sixt, established in 1912, was the first car rental company in Germany – founded only a stone’s throw away from Elmau. Through our service, we have been delivering the spirit of peaceful economic growth over the last 100 years. Germany has been our cradle, but the world is our family. We are present in 105 countries with a fleet of more than 250.000 cars today. At Sixt, we go beyond any frontiers and barriers because we embrace all cultures,

languages and religious beliefs. Our clientele is also multinational, multitasking, multi-demanding and multi-serviced. I personally focus on international marketing and on strengthening relationships with business partners from many industries worldwide that result in a truly global cooperation. We are very mindful of the value and importance of global collaboration to build a healthy world economy. Together, we will steer global business towards responsibility and strong growth. Being aware of social challenges we perform a wide range of projects that foster understanding and integration. We are mindful and responsive to the problems of our time. This is proven by many awards like the Golden Victoria for Integration that I received for my social engagement. We work hard to bring responsibility and the best German attitudes into the world to contribute to progress and a promising future. We are honoured to be able to showcase a little of our company’s capabilities and performance. Three hundred of our premium vehicles are on duty with specially trained, multi-lingual chauffeurs to transport all high-ranking participants and press from around the world. It is our commitment and obligation to do all we can to satisfy your needs. With 10 on-site coordinators,

The vast majority of Russians are now convinced that the European Union and the United States are working together to destroy their country by supporting a fascist regime in Kiev.

we are dedicated to helping make the logistical part of your travel experience effortless and convenient. Sixt has a strong tradition of fulfilling demanding challenges: Over the decades, we have chauffeured prime ministers, royalty, leaders of industry and celebrities. We hope that our German hospitality will strengthen international mutual trust, giving way to sustained and balanced global economic development. I wish all the participants of the G7 Summit memorable and productive days in our beautiful Bavarian state. ■

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Feature / Russia Authored by: Richard Rousseau

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Russia

Putin’s Russia in Denial The vast majority of Russians are now convinced that the European Union and the United States are working together to destroy their country by supporting a fascist regime in Kiev.

ussia, under the iron rule of Vladimir Putin, has become the victim of incomparably efficient state propaganda. This is conducted according to tried and trusted methods: first, casting doubt on the facts, and second, presenting the most vulgar conspiracy theory as the sole reality, which only analysts “paid by Washington” or naïve idealists cannot see. The goal of this is to create doubt and confusion in Russian and international public opinion while at the same time generating strong emotions which ultimately distort, overshadow, and finally push aside the reality. These emotions can be manipulated at will by the authorities. To serve this purpose, the Maidan revolution in Kiev in 2014 is not presented in the Russian media as a broad popular uprising of Ukrainians dissatisfied with the policies of President Yanukovych, but as a fascist coup d’état instigated, financed, and perpetrated by the CIA, the responsibility for which falls on none other than U.S. President Barack Obama himself. The coarseness of this explanation does not take away from its effectiveness, as the vast majority of Russians are now convinced that the European Union and the United States are working together to destroy their country by supporting a fascist regime in Kiev. The Kremlin’s propaganda uses another grotesque but formidable tool: it equates binding international agreements, signed by Russia, with the most insignificant rumors. For example, it compares the vague promise that NATO would not expand to East Germany, allegedly whispered to Gorbachev by the U.S. Secretary of State in 1990 (to this day there are no documents certifying that “promise”), with the 1994 Budapest Memorandum (the memorandum in which the Russian Federation, the United States, and the United Kingdom guarantee the non-use of force against Ukraine, Belarus, › Schloss Elmau. Germany 2015 ❙ 29

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Feature / Russia › and Kazakhstan) which has been signed by the Russian government and ratified by the Duma, the Russian parliament. This agreement makes Moscow a guarantor of Ukraine’s territorial integrity in exchange for Kiev’s surrender to Russia of all its nuclear weapons and accession to the Treaty on the Non-Proliferation of Nuclear Weapons (NPT). In another example, the quick and unilateral annexation of Crimea by Moscow is compared to the long diplomatic process—conducted under the auspices of the United Nations over a period of eight years—which led to the independence of Kosovo, a small territory in the Balkans. A third component of the Russian propaganda is to utterly disregard the will of East European nations. Putin has repeatedly declared that Ukraine does not exist as a state and that the Kiev authorities are mere puppets of the West. Following this logic, EU and NATO enlargement towards the East is obviously not the result of sovereign decisions taken by East European nations to free themselves from Soviet and now Russian domination, but of an American plan to encircle Russia. Ultimately, the Russian propaganda is designed to make East European states forget that they are sovereign nations and that they can decide their own futures for themselves without being subject to pressure, direct or indirect, from any quarter. The last element of the Russian propaganda is to depict Russia as the “Third Rome”, the last bastion of Christianity, the heart of the reactionary right in a Western world riddled with homosexuals and pedophiles. There is no evidence to support any of these preposterous ideas, but even Muscovites who dance their nights away in the numerous rowdy and sex-charged bars and wild clubs of the capital swallow these most outrageous claims with a straight face. In the West, some journalists and politicians find this propaganda attractive. In Germany, in particular, some journalists can be quite incisive and rigorous in their analyses of Angela Merkel’s or Jean-Claude Juncker’s policies but also accomplish the remarkable feat of interviewing Vladimir Putin without asking him any embarrassing questions. These “Russlandversteher”, as they are dubbed in Germany because they connive with the “ideas” of the Kremlin’s boss, play their own part in covering up the reality, contribute to distorting it, and thus become a powerful instrument in the information warfare the Kremlin is waging. Former Chancellor Gerhard Schröder is acting as the spearhead of the Russian 30 ❙ g7germany.de

IT wIll noT bE EaSy foR amERIcanS and EURopEanS To dEal wITh a REvanchIST and IRRITaTEd RUSSIa.

government’s misinformation campaign in Germany and globally. Former French President Nicolas Sarkozy has taken on the same role in his country when he began repeating Moscow’s arguments in midFebruary. He has likewise compared the unilateral annexation of Crimea with the independence of Kosovo and claimed that waging a “new Cold War” in Europe has been a longstanding U.S. desire (Le Monde, 09/02/2015). This intellectual cowardice from the man who fully and full-heartedly reintegrated France into NATO’s military structures raises many questions.

Did Sarkozy read Putin’s speech to the Russian Federal Assembly on March 18, 2014 on the occasion of the annexation of the Crimea? How is it that he did not discern in Putin’s view of a “Russian world” a serious challenge to the accepted borders and political stability of a dozen states neighboring Russia? Why did he not see in Putin’s outlook many similarities with Slobodan Milosevic’s speech at Kosovo Polje in 1987, which was a prelude to the Balkan wars? In Russia itself the courageous dissident voices speaking on Echo of Moscow radio and the few remaining critical newspapers, which have a limited readership, are under no illusions about what the future holds. Grigory Yavlinsky, the former leader of the Yabloko opposition party and still a member of its Political Committee, has painted a bleak yet realistic portrait of the future isolation of Russia in Novaya Gazeta, one of the last newspapers not subservient to the Kremlin. Russia, he wrote, will lose the confidence of the most progressive countries and is heading towards a provincialization of its elite, science, and economy. Its credibility will fall further and further in international arenas as a result of its ideologized and vehement anti-Western stand. A bitter and aggressive Russian leadership, argues Yavlinski, will strive to further restrain its neighbors’ sovereignty, a reaction that does not bode well for the cause of peace and security in Russia’s “near abroad”. It will not be easy for Americans and Europeans to deal with a revanchist and irritated Russia. A policy of both strategic patience and firmness on principles is now an essential component to hold Russia in check in the eastern fringes of Europe. Russia’s recent behavior has left many disheartened and ready to abandon their dream of a Russian policy committed to strengthening respect for human rights, the rule of law and civil society. Now it runs the risk of finding itself in the unenviable position of meeting the challenges of the 21st century all by itself, unless Russians soon wake from their authoritarian dream. ■

Richard Rousseau is Associate Professor at the American University of Ras Al Khaimah, United Arab Emirates. His research, teaching and consulting interests include Russian politics, Eurasian geopolitics, international political economy, and globalization.

Joint Statement / Ukraine

G7 Leaders Statement on Ukraine February 13, 2015

Editor’s note: Following the 2014 G7 Brussels Summit, in which Russia was removed from the group of nations, the hope was that Russian President Vladimir Putin would be pressured into cooperating with the international consensus. However, tensions between Russia and Ukraine only worsened, prompting a special statement from the G7 Leaders in February 2015.

e, the leaders of Canada, France, Germany, Italy, Japan, the United Kingdom, the United States, the President of the European Council and the President of the European Commission welcome the “Package of Measures for the Implementation of the Minsk Agreements” adopted by their original signatories on 12th February 2015 in Minsk. Implementation of the “Minsk Package” offers a way forward to a comprehensive, sustainable, and peaceful resolution to the crisis in eastern Ukraine. However, the G7 remains concerned about the situation in Ukraine, in particular in view of the fighting around Debaltseve where Russian-backed separatist militias are operating beyond the line of contact agreed upon in the Minsk agreements of September 2014, causing numerous civilian casualties. We urge all sides to adhere strictly to the provisions of the Package and to carry out

its measures without delay, starting with a ceasefire on the 15th of February. All parties should refrain from actions in the coming days that would hinder the start of the ceasefire. The G7 stands ready to adopt appropriate measures against those who violate the “Minsk package” and therefore intensify the costs for them, in particular against those who do not observe the agreed comprehensive ceasefire and withdrawal of heavy weapons. We again condemn Russia’s illegal annexation of Crimea which is in violation of international law. The G7 welcomes the agreement in principle reached on the 12th of February by the IMF and the government of Ukraine on a new economic reform program that will be supported by an IMF Extended Fund Facility. The G7 members look forward to prompt consideration of the program by the IMF Executive Board. We are providing financial assistance to support Ukraine. This international assistance will help Ukraine in the ambitious economic reforms it is undertaking to restore economic growth and improve the living standards of the Ukrainian people. We commend the government of Ukraine for its commitment to implement this ambitious reform agenda with regard to economic, rule-of-law, and democratic reforms.

Pictured Right: Activists And Supporters Of The “right Sector” Held “march Of Truth” In Kiev.

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Joint Statement / Close of the 2014 G7 Summit

The Brussels G7 Summit Declaration June 5, 2014

We, the Leaders of Canada, France, Germany, Italy, Japan, the United Kingdom, the United States, the President of the European Council and the President of the European Commission, met in Brussels on 4 and 5 June 2014. This Group came together because of shared beliefs and shared responsibilities. We are profoundly committed to the values of freedom and democracy, and their universality and to fostering peace and security. We believe in open economies, open societies and open governments, including respect for human rights and the rule of law, as the basis for lasting growth and stability. For nearly forty years, we have shown through our actions that collective will can be a powerful catalyst for progress. Our efforts to address major global challenges have also been guided by a commitment to transparency, accountability and partnership with other concerned members of the international community. We remain bound together as a group by these values and this vision. Guided by these shared values and principles, we will continue to work together to meet the challenges of our times. We thank the European Union for hosting this Summit and welcome Germanyâ&#x20AC;&#x2122;s Presidency. Global Economy Supporting growth and jobs remains our top priority. The global economy has strengthened since we met at Lough Erne, downside risks remain which will need to be managed carefully. Advanced economies are recovering, but continued and sustained growth is needed to bring down unemployment, particularly among young people and the long-term unemployed. â&#x20AC;ş

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Close of the 2014 G7 Summit

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The Authorised G7 Publication

Joint Statement / Close of the 2014 G7 Summit

We will take further steps to support strong, sustainable and balanced growth, with a common goal of increasing the resilience of our economies. We will present ambitious and comprehensive growth strategies at the G20 Summit in Brisbane, to include action across a broad front including in the areas of investment, small and medium enterprises, employment and participation of women, and trade and innovation, in addition to macroeconomic policies. We will continue to implement our fiscal strategies flexibly to take into account near-term economic conditions, so as to support economic growth and job creation, while putting debt as a share of GDP on a sustainable path.

We agreed that 2014 will be the year in which we focus on substantially completing key aspects of the core financial reforms that we undertook in response to the global financial crisis: building resilient financial institutions; ending too-big-to-fail; addressing shadow banking risks; and making derivatives markets safer. We remain committed to the agreed G20 roadmap for work on relevant shadow banking activities with clear deadlines and actions to progress rapidly towards strengthened and comprehensive oversight and regulation appropriate to the systemic risks posed. We will remain vigilant in the face of global risk and vulnerabilities. And we remain committed to tackling tax avoidance including through the G20/Organisation of Economic Cooperation and Development (OECD) Base Erosion and Profit Shifting Action Plan as set out in the agreed timetable, and tax evasion, where we look forward to the rapid implementation of the new single global standard for automatic exchange of tax information. We call on all jurisdictions to take similar action.

Trade and investment are key engines for jobs and growth. We reaffirm our commitment to keep our markets open and to fight all forms of protectionism including through standstill and rollback. We are committed to strengthening the rules-based multilateral trading system. We will protect and promote investment and maintain a level

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We will continue to provide, within our current Aid for Trade commitments, substantial support and capacity building to help implement this agreement, in particular to the benefit of the Least Developed Countries. We fully support efforts in the WTO to secure swift agreement to a balanced work programme for completing the Doha Round.

We Will take further steps to support strong, sustainable and balanced groWth, With a common goal of increasing the resilience of our economies. playing field for all investors. International standards for public export finance are crucial for avoiding or reducing distortions in global trade. Since we met at Lough Erne, we have made substantial progress on major trade negotiations: Canada-EU; Japan-EU; CanadaJapan; EU-US; the Trans-Pacific Partnership; and the Trade in Services Agreement. We aim to finalise them as soon as possible. We are committed to liberalising trade in environmental goods and services, including through an Environmental Goods agreement. We will work to conclude an expanded Information Technology Agreement as soon as possible. These agreements and initiatives can help support and will be consistent with the multilateral trading system and act as building blocks for future multilateral deals. We welcome the successful outcomes of the 9th World Trade Organisation (WTO) Ministerial Conference. We will prioritise full and swift implementation of the Bali Package, in particular the Trade Facilitation Agreement.

EnErGY

The use of energy supplies as a means of political coercion or as a threat to security is unacceptable. The crisis in Ukraine makes plain that energy security must be at the centre of our collective agenda and requires a step change to our approach to diversifying energy supplies and modernising our energy infrastructure. Under the Rome G7 Energy Initiative, we will identify and implement concrete domestic policies by each of our governments separately and together, to build a more competitive, diversified, resilient and low-carbon energy system. This work will be based on the core principles agreed by our Ministers of Energy on May 5-6 2014, in Rome:

› Development of flexible, transparent and competitive energy markets, including gas markets. › Diversification of energy fuels, sources and routes, and encouragement of indigenous sources of energy supply. › Reducing our greenhouse gas emissions, and accelerating the transition to a low carbon economy as a key contribution to sustainable energy security. › Enhancing energy efficiency in demand and supply, and demand response management. › Promoting deployment of clean and sustainable energy technologies and continued investment in research and innovation. › Improving energy systems resilience by promoting infrastructure modernization and supply and demand policies that help withstand systemic shocks. › Putting in place emergency response systems, including reserves and fuel substitution for importing countries, in case of major energy disruptions.

Close of the 2014 G7 Summit

› We will complement the efforts of the European Commission to develop emergency energy plans for winter 2014-2015 at a regional level. › Working with international organisations such as the International Energy Agency (IEA), the International Renewable Energy Agency, and the international financial institutions, we will supply technical assistance, including leveraging the private sector, and facilitate exchanges with Ukraine and other European countries seeking to develop indigenous hydrocarbon resources and renewable energies, as well as to improve energy efficiency. › We will conduct assessments of our energy security resilience and enhance our joint efforts, including on critical infrastructure, transit routes, supply chains and transport. › We will ask the IEA, in close cooperation with the European Commission, to present by the end of 2014 options for individual and collective actions of the G7 in the field of gas security.

Based on these principles we will take the following immediate actions:

We commit to Work With all partners to agree an ambitious and universal post2015 agenda.

We will also:

› Promote the use of low carbon technologies (renewable energies, nuclear in the countries which opt to use it, and carbon capture and storage) including those which work as a base load energy source; and › Promote a more integrated Liquefied Natural Gas (LNG) market, including through new supplies, the development of transport infrastructures, storage capabilities, and LNG terminals, and further promotion of flexible gas markets, including relaxation of destination clauses and producer-consumer dialogue.

We ask our Energy Ministers to take forward this Rome G7 Energy Initiative and report back to us in 2015.

ClimatE ChanGE

Urgent and concrete action is needed to address climate change, as set out in the Intergovernmental Panel on Climate Change’s Fifth Assessment Report. We

therefore remain committed to low-carbon economies with a view to doing our part to limit effectively the increase in global temperature below 2°C above pre-industrial levels. We affirm our strong determination to adopt in 2015 a global agreement – a new protocol, another legal instrument or an agreed outcome with legal force under the convention applicable to all parties - that is ambitious, inclusive and reflects changing global circumstances. We will communicate our intended nationally determined contributions well in advance of the 21st session of the Conference of the Parties (COP21) in Paris (by the first quarter of 2015 by those Parties ready to do so) and call on others to follow our lead. We welcome the Climate Summit of the United Nations Secretary General in September and his invitation to all Parties to prepare for ambitious contributions and to deliver concrete action to reduce emissions and strengthen resilience. We look forward to a successful Summit.

We reaffirm our support for the Copenhagen Accord commitments to mobilise USD 100 billion per year by 2020 from a wide variety of sources, both public and private, to address the climate mitigation and adaptation needs of developing countries in the context of their meaningful and transparent mitigation actions. We welcome the adoption of the Green Climate Fund’s operating rules and the decision to commence its initial resource mobilisation in the coming months. We remain committed to the elimination of inefficient fossil fuel subsidies and continued discussions in the OECD on how export credits can contribute to our common goal to address climate change. We will strengthen efforts to improve measurement, reporting, verification and accounting of emissions and improve the reporting of international climate finance flows, consistent with agreed decisions of the United Nations Framework Convention on Climate Change. We will work together and with others to phase down the production and consumption of hydrofluorocarbons (HFC) under the Montreal Protocol. We will also continue to take action to promote the rapid deployment of climate-friendly and safe alternatives in motor vehicle air-conditioning and we will promote public procurement of climate-friendly HFC alternatives.

DEvElopmEnt

The pursuit of sustainable and inclusive development and greater prosperity in all countries remains a foundational commitment that unites our people and our countries. We continue to implement the commitments we have made at previous Summits. To be accountable we will provide a report in 2015 on progress toward their attainment.

We commit to work with all partners to agree an ambitious and universal post-2015 agenda, anchored in a single set of clear and measurable goals. That agenda should complete unfinished business of the Millennium Development Goals. It should be centred on people and focused both on the eradication of extreme poverty, promoting development and on balancing the environmental, economic and social › Schloss Elmau. Germany 2015 ❙ 35

The Authorised G7 Publication

Joint Statement / Close of the 2014 G7 Summit

remain committed to prevent the misuse of companies and other legal arrangements such as trusts to hide financial flows stemming from corruption, tax evasion, money laundering, and other crimes, ensuring that beneficial ownership information is available in a timely fashion to financial intelligence units, tax collection and law enforcement agencies, for example through central registries or other appropriate mechanisms, leading by example in implementing the Financial Action Task Force and other relevant international standards and our national action plans in line with the principles we agreed at Lough Erne. Greater transparency in this area will help developing countries.

› dimensions of sustainable development, including climate change. It should also promote peace and security, democratic governance, the rule of law, gender equality and human rights for all. We are committed to build a global partnership with shared responsibility and mutual accountability to ensure its implementation. We await the synthesis report of the United Nations Secretary General in the second half of 2014. We welcome the African Union’s common position.

We will continue to promote inclusive and resilient growth in Africa, working with governments and citizens in Africa to enhance governance and transparency, improve infrastructure, notably in the energy sector, eliminate trade barriers, facilitate trade and investment, and strengthen the responsible and sustainable management of natural resources and the revenues they generate. We welcome the active role of the African Union and the New Partnership for Africa’s Development in the process of reforming the Africa Partnership Forum.

Security and development are the prerequisite of a lasting peace in regions affected by the scourge of war, terrorism, organized crime, corruption, instability and poverty, notably the Sahel region, Somalia, Nigeria, South Sudan and Central African Republic. We welcome efforts by African partners and the African Union, supported by the international community, aimed at building their capacities to respond to crises and support stabilisation.

We confirm our strong commitment to the Deauville Partnership and our support to Arab countries in transition in their efforts to improve governance and stimulate inclusive growth and job creation, particularly for their youth and women. Our Foreign and Finance Ministers will meet in the margins of United Nations General Assembly, and the International Monetary Fund/World Bank Annual Meetings, to take forward the Partnership.

We remain committed to work towards common global standards that raise extractives transparency, which ensure disclosure of companies’ payments to all

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20 governments. We welcome the progress made among G7 members to implement quickly such standards. These global standards should continue to move towards project-level reporting. Those governments that are signing up to the Extractive Industries Transparency Initiative standard will voluntarily report their revenues. We confirm our commitment to implement fully the extractive partnerships launched in 2013.

We today announce a new initiative on Strengthening Assistance for Complex Contract Negotiations (CONNEX) to provide developing country partners with extended and concrete expertise for negotiating complex commercial contracts, focusing initially on the extractives sector, and working with existing fora and facilities to avoid duplication, to be launched in New York in June and to deliver improvements by our next meeting, including as a first step a central resource hub that brings together information and guidance.

We will continue to work to tackle tax evasion and illicit flows of finance, including by supporting developing countries to strengthen their tax base and help create stable and sustainable states. We renew our commitment to deny safe haven to the proceeds of corruption, and to the recovery and return of stolen assets. We

Recent events illustrate that corruption undermines trust in governments and limits economic growth. We will build on existing efforts, including in the G20, to take additional steps to prevent this. We continue our engagement to and support of United Nations Office on Drugs and Crime and the World Bank’s Stolen Asset Recovery Initiative. We welcome the outcomes of the Ukraine Forum on Asset Recovery and look forward to the third Arab Forum on Asset Recovery. The G7 remains committed to working with governments and global financial centres to follow up on asset recovery efforts.

We remain committed to the Muskoka Initiative on maternal, newborn and child health, and welcome the call made at the Saving Every Woman, Every Child Summit in Toronto to accelerate progress on this global priority. In addition we are committed to ensuring sexual and reproductive health and reproductive rights, and ending child, early and forced marriage and female genital mutilation and other harmful practices. The health and well-being of women and children are improved through ensuring universal access to affordable, quality, essential health services, strengthening health, education and child protection systems and improving nutrition and access to immunisation. We recognise the impact of the GAVI Alliance (Global Alliance for Vaccines and Immunisation) and welcome its efforts to expand access to vaccines to an additional

Close of the 2014 G7 Summit

300 million children during 2016-2020. We welcome Germany’s offer to host the second replenishment in early 2015, reaffirm our commitment, and call on other public and private donors to contribute to the replenishment of the GAVI Alliance. We reaffirm our commitment to an AIDS free generation and to the Global Fund to fight AIDS, Tuberculosis and Malaria to reduce the burden of these three major infectious diseases on eligible countries and regions.

To address the threat posed by infectious diseases, we support the Global Health Security Agenda and commit to working with partner countries to strengthen compliance with the World Health Organisation’s (WHO) International Health Regulations and enhance health security around the world. We commit to working across sectors to prevent, detect and respond to infectious diseases, whether naturally occurring, accidental, or the result of a deliberate act by a state or non-state actor. That includes building global capacity so that we are better prepared for threats such as the recent Ebola outbreak in West Africa and working together, in close cooperation with WHO, to develop a Global Action Plan on antimicrobial resistance.

We continue to strongly support comprehensive approaches to achieve global food security and nutrition. We look forward to the second International Conference on Nutrition in November 2014 and the Expo Milan 2015, which will provide a platform for the global post-2015 debate on sustainability and food and nutrition security. We continue to support the New Alliance for Food Security and Nutrition under strong African leadership and the successful completion of principles for responsible agricultural investment by the Committee on World Food Security. These will better enable smallholder farmers, especially women, to benefit from sustainable rural development. We continue to support the consistent implementation of the Voluntary Guidelines on Responsible Governance of Tenure of Land, Fisheries and Forests, including by building on the land partnerships we launched in 2013 and the Global Agriculture and Food Security Programme.

in the face of unacceptable interference in ukraine’s sovereign affairs by the russian federation, We stand by the ukrainian government and people. UkrainE

We welcome the successful conduct under difficult circumstances of the election in Ukraine on 25 May. The strong voter turnout underlined the determination of Ukraine’s citizens to determine the future of their country. We welcome Petro Poroshenko as the President-elect of Ukraine and commend him for reaching out to all the people of Ukraine.

In the face of unacceptable interference in Ukraine’s sovereign affairs by the Russian Federation, we stand by the Ukrainian government and people. We call upon the illegal armed groups to disarm. We encourage the Ukrainian authorities to maintain a measured approach in pursuing operations to restore law and order. We fully support the substantial contribution made by the Organisation for Security Cooperation in Europe (OSCE) to the de-escalation of the crisis through the Special Monitoring Mission and other OSCE instruments. We commend the willingness of the Ukrainian authorities to continue the national dialogue in an inclusive manner. We welcome the “Memorandum of Peace and Unity” adopted by the Verkhovna Rada on 20 May and express the wish that it can be implemented rapidly. We also encourage the Ukrainian parliament and the Government of Ukraine to continue to pursue constitutional reform in order to provide a

framework for deepening and strengthening democracy and accommodating the rights and aspirations of all people in all regions of Ukraine.

The G7 are committed to continuing to work with Ukraine to support its economic development, sovereignty and territorial integrity. We encourage the fulfilment of Ukraine’s commitment to pursue the difficult reforms that will be crucial to support economic stability and unlock private sector-led growth. We welcome the decision of the International Monetary Fund (IMF) to approve a $17 billion programme for Ukraine, which will anchor other bilateral and multilateral assistance and loans, including around $18 billion foreseen to date from G7 partners. We welcome the swift disbursement of macro-economic support for Ukraine. We support an international donor coordination mechanism to ensure effective delivery of economic assistance and we welcome the EU’s intention to hold a high-level coordination meeting in Brussels. We welcome ongoing efforts to diversify Ukraine’s sources of gas, including through recent steps in the EU towards enabling reverse gas flow capacities and look forward to the successful conclusion of the talks, facilitated by the European Commission, on gas transit and supply from the Russian Federation to Ukraine.

We are united in condemning the Russian Federation’s continuing violation of the sovereignty and territorial integrity of Ukraine. Russia’s illegal annexation of Crimea, and actions to de-stabilise eastern Ukraine are unacceptable and must stop. These actions violate fundamental principles of international law and should be a concern for all nations. We urge the Russian Federation to recognise the results of the election, complete the withdrawal of its military forces on the border with Ukraine, stop the flow of weapons and militants across the border and to exercise its influence among armed separatists to lay down their weapons and renounce violence. We call on the Russian Federation to meet the commitments it made in the Geneva Joint Statement and cooperate with the government of Ukraine as it implements its plans for promoting peace, unity and reform. › Schloss Elmau. Germany 2015 ❙ 37

The Authorised G7 Publication

Joint Statement / Close of the 2014 G7 Summit

We confirm the decision by G7 countries to impose sanctions on individuals and entities who have actively supported or implemented the violation of Ukraine’s sovereignty and territorial integrity and who are threatening the peace, security and stability of Ukraine. We are implementing a strict policy of non-recognition with respect to Crimea/Sevastopol, in line with UN General Assembly Resolution 68/262. We stand ready to intensify targeted sanctions and to implement significant additional restrictive measures to impose further costs on Russia should events so require.

The projects funded by the donor community to convert the Chernobyl site into a stable and environmentally safe condition have reached an advanced stage of completion. While recognizing the complexity of these first of a kind projects, we call upon all concerned parties to make an additional effort to bring them to a satisfactory conclusion and call upon project parties to keep costs under control. This remains a high priority for us.

SYria

We strongly condemn the Assad regime’s brutality which drives a conflict that has killed more than 160,000 people and left 9.3 million in need of humanitarian assistance. We denounce the 3 June sham presidential election: there is no future for Assad in Syria. We again endorse the Geneva Communiqué, which calls for a transitional governing body exercising full executive powers and agreed by mutual consent, based on a vision for a united, inclusive and democratic Syria. We strongly condemn the violations of international humanitarian law and human rights and indiscriminate artillery shelling and aerial bombardment by the Syrian regime. There is evidence that extremist groups have also perpetrated grave human rights abuses. All those responsible for such abuses must be held to account. We welcome the commitment of the National Coalition and Free Syrian Army to uphold international law. We deplore Russia and China’s decision to veto the UN Security Council (UNSC) Resolution draft authorising referral to the International Criminal Court and demanding

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Syria

We strongly condemn the assad regime’s brutality Which drives a conflict that has killed more than 160,000 people and left 9.3 million in need of humanitarian assistance. accountability for the serious and ongoing crimes committed in Syria.

We are committed to supporting the neighbouring countries bearing the burden of Syrian refugee inflows and deplore the failure to implement UNSC Resolution 2139 on humanitarian assistance. We urge all parties to the conflict to allow access to aid for all those in need, by the most direct routes, including across borders and conflict lines, and support further urgent action by the UNSC to that end. In our funding we decide to give particular support to humanitarian actors that can reach those most in need, including across borders. We call for the international community to meet the enormous funding needs of the UN appeals for Syria and its neighbours. We resolve to intensify our efforts to address the threat arising from foreign fighters travelling to Syria. We are deeply concerned by allegations of repeated chemical agent use and call on all

parties in Syria to cooperate fully with the Organisation for the Prohibition of Chemical Weapons (OPCW) fact-finding mission. We call on Syria to comply with its obligations under UNSC Resolution 2118, decisions of the Executive Council of the OPCW and the Chemical Weapons Convention to ensure the swift removal of its remaining chemical stockpile for destruction, and to destroy its production facilities immediately and answer all questions regarding its declaration to the OPCW.

liBYa

We reaffirm our support for a free, prosperous and democratic Libya which will play its role in promoting regional stability. We express serious concern at the recent violence and urge all Libyans to engage with the political process through peaceful and inclusive means, underpinned by respect for the rule of law. We urge continued and coordinated engagement by the international community to support the Libyan transition and efforts to promote political dialogue, in coordination with the UN and with the UN Support Mission in Libya fulfilling its mandate in that respect. We ask all in the international community to respect fully Libyan’s sovereignty and the principle of non-intervention in its affairs. In this framework, we commend the proposal of the High National Electoral Commission, endorsed by the General National Congress, to convene the elections on June 25. We emphasise the importance of these elections in restarting the political process and appreciate the vital work of the Constitution Drafting Assembly.

mali anD CEntral afriCan rEpUBliC

We welcome the ceasefire signed on May 23 by the Malian Government and armed groups in the North of Mali, thanks to efforts by the African Union, through its Presidency, and the UN. We reaffirm our strong commitment to a political solution and to an inclusive dialogue process that must start without delay, as prescribed by the Ouagadougou agreement and UNSC decisions. We fully support the United Nation’s Multidimensional Integrated Stabilisation Mission in Mali efforts in ›

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The Authorised G7 Publication

Joint Statement / Close of the 2014 G7 Summit

› stabilising the country and, with the commitment of neighbouring countries, including Algeria, Mauritania and the Economic Community of West African States, in working for a durable settlement respectful of the unity, territorial integrity and national sovereignty of Mali.

We commend the role played on the ground in the Central African Republic by the AU-led International Support Mission to the Central African Republic, together with the forces sent by France and the European Union, to support the transition and encourage the Transitional Authorities to take urgent concrete steps toward holding free, fair, transparent and inclusive elections. We fully support the UN efforts in the areas of security, reconciliation, preparation of the elections, and humanitarian assistance.

iran

We reaffirm our strong commitment to a diplomatic resolution of the Iranian nuclear issue and welcome the efforts by the E3+3, led by High Representative Ashton, and Iran to negotiate a comprehensive solution that provides confidence in the exclusively peaceful nature of Iran’s nuclear programme. We underline the importance of the continuing effective implementation by the E3+3 and Iran of the Joint Plan of Action. We call on Iran to cooperate fully with the International Atomic Energy Agency on verification of Iran’s nuclear activities and to resolve all outstanding issues, including, critically, those relating to possible military dimensions. We strongly urge Iran to fully respect its human rights obligations. We call on Iran to play a more constructive role in supporting regional security, in particular in Syria, and to reject all acts of terrorism and terrorist groups.

north korEa

We strongly condemn North Korea’s continued development of its nuclear and ballistic missile programmes. We urge North Korea to abandon all nuclear weapons and existing nuclear and ballistic missile programmes and to comply fully with its obligations under relevant UNSC resolutions and commitments under the September 2005 Joint Statement of the Six-Party Talks. We call

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North Korea

We strongly condemn north korea’s continued development of its nuclear and ballistic missile programmes.

on the international community to implement fully UN sanctions. We reiterate our grave concerns over the ongoing systematic, widespread and gross human rights violations in North Korea documented in the report of the UN Commission of Inquiry, and urge North Korea to take immediate steps to address these violations, including on the abductions issue, and cooperate fully with all relevant UN bodies. We continue to work to advance accountability for North Korea’s serious human rights violations.

miDDlE EaSt pEaCE proCESS

We fully support the United States’ efforts to secure a negotiated two-state solution. We regret that greater progress has not been made by the parties and urge them to find the common ground and political strength needed to resume the process. A negotiated two-state solution remains the

Close of the 2014 G7 Summit

coercion or force. We call on all parties to clarify and pursue their territorial and maritime claims in accordance with international law. We support the rights of claimants to seek peaceful resolution of disputes in accordance with international law, including through legal dispute settlement mechanisms. We also support confidence-building measures. We underscore the importance of the freedom of navigation and overflight and also the effective management of civil air traffic based on international law and International Civil Aviation Organization standards and practices.

Afghanistan

othEr iSSUES

We reaffirm our commitment to the protection and promotion of all human rights and fundamental freedoms, including religious freedom, for all persons. We recognise the need to show unprecedented resolve to promote gender equality, to end all forms of discrimination and violence against women and girls, to end child, early and forced marriage and to promote full participation and empowerment of all women and girls. We look forward to the Global Summit to End Sexual Violence in Conflict taking place in London later this month.

Maritime Navigation and Aviation

only way to resolve the conflict. We call on both sides to exercise maximum restraint and to avoid any unilateral action which may further undermine peace efforts and affect the viability of a two-state solution.

reduce corruption, combat terrorism, support economic growth, and counter narcotics. We continue to actively support an inclusive Afghan-led and Afghan-owned process of reconciliation.

afGhaniStan

maritimE naviGation anD aviation

We renew our long-term commitment to a democratic, sovereign, and unified Afghanistan and our enduring partnership with the Government of Afghanistan based on the principles of mutual respect and mutual accountability. The first round of presidential elections and the provincial council elections marked a historic achievement, especially for the more than 2.5 million women who voted, and we look forward to the completion of the electoral process. We continue to assist the Government of Afghanistan to strengthen their institutions of governance,

We reaffirm the importance of maintaining a maritime order based upon the universally-agreed principles of international law. We remain committed to international cooperation to combat piracy and other maritime crime, consistent with international law and internationally recognised principles of jurisdiction in international waters. We are deeply concerned by tensions in the East and South China Sea. We oppose any unilateral attempt by any party to assert its territorial or maritime claims through the use of intimidation,

We reiterate our condemnation of terrorism and our commitment to cooperate in all relevant fora to prevent and respond to terrorism effectively, and in a comprehensive manner, while respecting human rights and the rule of law. We condemn the kidnapping of hundreds of schoolgirls by Boko Haram as an unconscionable crime and intend do everything possible to support the Nigerian government to return these young women to their homes and to bring the perpetrators to justice.

We confirm that non-proliferation/ disarmament issues remain a top priority and welcome the G7 Non-proliferation Directors Group statement issued today. â&#x2013; Schloss Elmau. Germany 2015 â?&#x2122; 41

The Authorised G7 Publication

Leaders Statements / Angela Merkel

Statement from the Office of Angela Merkel, the Federal Chancellor of Germany, on the 2014 G7 Summit June 5, 2014

Important tasks for the G7 states next year Include the unIted natIons clImate chanGe conference In parIs, whIch Is to be brouGht to a successful conclusIon. 42 ❙ g7germany.de

Making the most of growth he G7 heads of state and government aim to harness increased global growth to generate jobs. They expect their meeting in Brussels, which has just come to a close, to provide impetus for a new climate change agreement and development policy, as well as reliable energy supplies. Talks on the second day of the summit meeting of the G7 heads of state and government were overshadowed by the decisions taken the evening before with respect to relations with Russia and Ukraine. Nevertheless the summit meeting also sent important signals regarding the global economy, trade, energy, climate and development policy. “All in all the discussions were very intensive and most harmonious. It was vitally important that we have common positions, particularly in terms of relations with Russia and Ukraine, and that we continue what we have managed over the last few months—to act in concert as the G7,” said Angela Merkel at her final press conference. Harnessing growth to create jobs The International Monetary Fund (IMF) expects global growth to hit 3.6 per cent this year, rising to 3.9 per cent next year. This would put growth at or slightly above the average of recent years. Against this background, the G7 summit, said the Chancellor, sends a clear signal to the forthcoming G20 summit meeting in Australia: the G7 states support ambitious and specific strategies for more growth. “Strategies of this sort will include labour market reforms. They will look at the issue of increasing the numbers of women in work and encouraging investment in small and medium enterprises.” The heads of government want increased growth to benefit the people in the form of more jobs, reported the Chancellor.

Making progress on trade agreements The heads of government noted that free international trade is an important driver of economic growth. They aim to further open international markets and dismantle trade barriers. The aim must be to make good progress on the free trade agreements with the USA and Asia by next year, said the Chancellor. Securing energy supplies Energy and climate was another field tackled during the summit. The resolutions of the G7 energy ministers were analysed and welcomed. In the medium term strategies are to be elaborated for ensuring a secure energy supply, especially with regard to gas supplies for European Union member states. Important tasks for the G7 states next year include the United Nations Climate Change Conference in Paris, which is to be brought to a successful conclusion. The Millennium Development Goals are also to be further developed at international level. Development-policy impetus The G7 summit meeting wound up with a discussion of development policy. Angela Merkel reported that this had already provided the foundations for the issues to be discussed at the next summit meeting. The sustainable development goals, which are to replace the ongoing Millennium Development Goals after 2015, will play a major part at the next summit, announced the Chancellor. The post-2015 development agenda is to bring together poverty reduction and sustainable development processes. On the German side there is a great deal of interest in improving transparency in the extractive industries and trade in raw materials and resources. The focus must now be on further developing the G7â&#x20AC;&#x2122;s CONNEX Initiative (Strengthening Assistance for Complex Contract Negotiations), said the Chancellor. This initiative is to help developing countries in complex contract negotiations in the extractive sector, and is to be continued under the German G7 presidency. The Chancellor announced that many of the ongoing development programmes will be re-evaluated and continued. This includes the Global Alliance for Vaccines and Immunization (GAVI), for which a replenishment meeting is to be held in Germany in 2015. Schloss Elmau. Germany 2015 â?&#x2122; 43

The Authorised G7 Publication

Leaders Statements / David Cameron

David Cameron, Prime Minister of the United Kingdom, Statement Excerpt on 2014 G7 Meeting June 11, 2014

his was a G7 rather than a G8 because of Russia’s unacceptable actions in Ukraine. Right from the outset, the G7 nations have been united in support for Ukraine and its right to choose its own future, and we have sent a firm message that Russia’s actions have been totally at odds with the values of our group of democracies. At the summit, we kept up the pressure on Russia. We agreed that the status quo is unacceptable and the continuing destabilisation of eastern Ukraine must stop. We insisted that Russia must recognise the legitimate election of President Poroshenko; it must stop arms crossing the border into Ukraine; and it must cease support for separatist groups. We agreed that wideranging economic sanctions should remain on the table if Russia did not follow this path of de-escalation, or if it launched a punitive trade war with Ukraine in response to Kiev proceeding with the trade aspects of its association agreement with the European Union. I made those points directly to President Putin when I met him in Paris on the eve of the D-Day commemorations. The inauguration of President Poroshenko has created a new opportunity for diplomacy to help to establish a proper relationship between Ukraine and Russia. I urged President Putin to ensure that this happens. It is

In my bIlateral meetInG wIth presIdent obama, we dIscussed what I belIeve Is the Greatest threat to our securIty: how we counter extremIsm and the terrorIst threat to our people at home and abroad. 44 ❙ g7germany.de

welcome that he met President Poroshenko in Normandy and that Moscow and Kiev are now engaging each other again. It is important that we continue to do what we can to sustain the positive momentum. We also agreed to help Ukraine to achieve greater energy security by diversifying its supplies. The G7 also continued the work we began last year at Lough Erne to deal with the cancer of corruption, with further agreements on what I call the 3 Tâ&#x20AC;&#x2122;s of greater transparency, fairer taxes and freer trade. We made good progress in working towards common global standards of transparency in extractive industries, we agreed to push forwards with establishing new international rules to stop companies artificially shifting their profits across borders to avoid taxes and we agreed to make a concerted push on finalising bilateral trade deals as soon as possible. These included the EU-Canada and EU-Japan deals, but of course also the EU-U.S. deal, which we launched at Lough Erne last summer. I believe this is one of the greatest opportunities to turbo-charge the global economy and could be worth up to 10 billion for Britain alone. With these agreements, the Lough Erne agenda on transparency, tax and trade has been hardwired into these international summits for many years to come. There was also a good discussion on climate change, where the recent announcements by the U.S. make a potential agreement next year more achievable, and we should do what we can to make that happen. In my bilateral meeting with President Obama, we discussed what I believe is the greatest threat to our security: how we counter extremism and the terrorist threat to our people at home and abroad. We agreed to intensify our efforts to address the threat of foreign fighters travelling to and from Syria, which is now the top destination in the world for jihadists. And here in Britain, my Right Hon. Friend the Home Secretary will be introducing a new measure to enable prosecution of those who plan and train for terrorism abroad. In Libya, we are fulfilling our commitment to train the Libyan security forces, with the first tranche of recruits arriving in the United Kingdom yesterday. On Nigeria, we reaffirmed our commitment wto support President Jonathanâ&#x20AC;&#x2122;s government and the wider region in confronting the evil of Boko Haram. We continue to help address the tragedy of the abducted schoolgirls. Schloss Elmau. Germany 2015 â?&#x2122; 45

The Authorised G7 Publication

Leaders Statements / Barack Obama

Barack Obama, President of the United States, Statement on 2014 G7 Meeting June 5, 2014

at the G7, we aGreed to help ukraIne reduce Its enerGy rIsks to Include dIversIfyInG Its supplIes. 46 ❙ g7germany.de

ood afternoon, everybody. It is good to be here with my great friend and partner, Prime Minister David Cameron. Earlier this afternoon we concluded our summit with our fellow G7 leaders. And I want to thank His Majesty King Philippe, the Prime Minister, as well as the Belgian people for welcoming us back to Brussels. David and I also just had the opportunity to meet and discuss some pressing challenges —including Syria, Libya and Iran, as well as the process of ending our combat mission in Afghanistan. We spoke about the deepening partnership that we have on issues like Nigeria, in support of our shared goal of safely returning the kidnapped girls to their families. But what I want to focus on briefly before we take questions are two issues that dominated our discussion over the last two days, and that’s the situation in Ukraine and energy security. Originally, of course, our summit was supposed to be in Sochi. But after Russia’s actions in Ukraine, our nations united quickly around a common strategy. We suspended Russia from the G8 and we cancelled the Sochi meeting, making this the first G7 held without Russia in some 20 years. All seven of our nations have taken steps to impose costs on Russia for its behavior. Today, in contrast to a growing global economy, a sluggish Russian economy is even weaker because of the choices made by the Russia’s leadership. Meanwhile, our nations continue to stand united in our support and assistance to the Ukrainian people. And the G7 Summit was an occasion for me, David and our fellow leaders to ensure that we’re in lockstep going forward. On Ukraine, I shared the results of my meeting yesterday with President-elect Poroshenko. Like so many Ukrainians, he wants to forge closer ties with Europe and the United States, but also recognizes that Ukraine will benefit from a constructive relationship with Russia. So I believe his inauguration provides an opportunity,

particularly since he has demonstrated a commitment to reach out to the east, and pursue reforms. Russia needs to seize that opportunity. Russia needs to recognize that President-elect Poroshenko is the legitimately elected leader of Ukraine and engage the government in Kyiv. Given its influence over the militants in Ukraine, Russia continues to have a responsibility to convince them to end their violence, lay down their weapons, and enter into a dialogue with the Ukrainian government. On the other hand, if Russia’s provocations continue, it’s clear from our discussions here that the G7 nations are

ready to impose additional costs on Russia. I also briefed David on the new initiative I announced in Warsaw to bolster the security of our NATO allies, especially in Central and Eastern Europe, as well as our focus on building counterterrorism capabilities across the Middle East and North Africa. David will be hosting the next NATO Summit in Wales in September, and I appreciated him updating me on the preparations for that summit. We agree that it’s going to be an opportunity for every ally to make sure they’re carrying their share and investing in the capabilities our alliance needs for the future. The situation in Ukraine has also highlighted

the need for greater energy security. At the G7, we agreed to help Ukraine reduce its energy risks to include diversifying its supplies. We’re going to help countries in Central and Eastern Europe strengthen their energy security as well. And following the review I called for in the United States earlier this year, every G7 country will conduct an energy assessment to identify the possible impact of any potential disruptions and to offer ways we can better prevent disruptions and recover from them more quickly. Related to this, we agreed at the G7 to continue to lead by example in the fight against climate change, which poses a danger

to our environment, our economies, and our national security. I made it clear that the United States will continue to do our part. Earlier this week, we took a major step— proposing new standards that, for the first time, would limit carbon pollution from our existing power plants. This is one of the most ambitious steps that any nation has taken to combat climate change. It would reduce carbon emissions from our electricity sector by 30 percent. It will help us meet the commitments that we made when I first came into office, at Copenhagen. And it will improve our public health. It’s also going to be good for our economy—by helping to create more clean energy jobs and ultimately lower electricity bills for Americans. So it’s the right thing to do. This builds on the steps we’ve taken over the past five years to invest more in renewables like solar and wind, raise fuel standards for our cars and trucks, and make our homes and businesses more energy efficient. And today we’re holding our carbon emissions to levels not seen in nearly 20 years. So we’re making important progress, but my Climate Action Plan for climate change indicates that we’ve got to keep at it and do more. I know this is a cause that David is also passionate about. We agree that every nation has to do its share. All the major economies, including the G7 and emerging markets like China, need to show leadership as we work on a new global climate agreement. And that includes putting forward by March of next year ambitious long-term targets for reducing emissions. So, again, I want to thank Prime Minister Cameron and our fellow leaders for our work here together in Brussels. David, I believe that whenever our two nations stand together it can lead to a world that is more secure and more prosperous and more just. And we’ll be reminded of that again tomorrow in Normandy as we mark the 70th anniversary of D-Day. On that day, like so many others, American and British troops stood together and fought valiantly alongside our allies. It didn’t just help to win the war; they helped to turn the tide of human history and are the reason that we can stand here today in a free Europe and with the freedoms our nations enjoy. So theirs is the legacy that our two nations and our great alliance continue to uphold. And I’m grateful to have a fine partner in David in making that happen. Schloss Elmau. Germany 2015 ❙ 47

The Authorised G7 Publication

Leaders Statements / José Manuel Durão Barroso

José Manuel Durão Barroso, President of the European Commission, Statement on 2014 G7 Meeting June 5, 2014

on enerGy, I am very Glad to see that thIs summIt endorsed the prIncIples and actIons of the rome G7 enerGy InItIatIve. 48 ❙ g7germany.de

ood afternoon ladies and gentlemen. Some time ago we were not expecting to be meeting here in Brussels for this G7, but it was well worth it. It was a very successful summit with very good conversations and with a very remarkable level of convergence. On a range of geo-strategic issues we have a unity and common determination to lead the global response. I am particularly pleased that the G7 has formally endorsed many of the key initiatives that the European Union has tabled: from our intention to organise a donors’ conference, to our approach on energy security. We will keep driving policies and progress in all these areas. The G7 also confirmed the intention to reach an ambitious and binding climate agreement by 2015 as we have repeatedly called for, and on development, the G7 takes action in areas in which we have led by example, such as food security, health and vaccination. But as you know, we have organised this G7 here in Brussels because of Ukraine. The most important message clearly is: the G7 stands united behind Ukraine. We have made clear that we stand behind its new leadership, politically and economically. We have made clear that we stand by the citizens of Ukraine who want to live in a sovereign, free, democratic and hopefully prosperous country. As this is our immediate neighbourhood the European Union has a special responsibility. That’s why we have mobilised fast and are deploying financial and technical assistance already to Ukraine. And that’s why we aim to sign the remaining parts of the association agreement as quickly as possible. Both sides are committed to this. As a next concrete step, the G7 has agreed that the European Commission will host a high-level donor coordination meeting next month, here in Brussels. Our group of like-minded members of the international community is also united in

sending a resolute message to Russia that it should recognize and fully engage with the Ukrainian authorities, namely with the recently newly elected President of Ukraine, Mr Poroshenko. And that Russia should also take concrete and credible measures to de-escalate the situation in the Eastern part of Ukraine. We stand ready to take further action if that’s necessary. President Van Rompuy has outlined our positions on the other key foreign policy issues we have discussed, which I fully

share. I won’t repeat what President Van Rompuy just said. Let me briefly address other points on the G7 agenda that are also very important: On trade, we have re-committed to exploit to the full the enormous growth and jobs potential of keeping markets open and liberalising global trade. That’s why we will aim for a rapid conclusion of ongoing trade negotiations, implement our multilateral commitments stemming from Bali, and fully support the efforts in the WTO for completing the Doha Round.

We have also agreed that as G7 leaders, we have to come out stronger in public on explaining the advantages of trade opening in terms of concrete consequences on growth and jobs, addressing especially the concerns of those most vulnerable and those who feel sometimes alienated from the advantages of trade liberalisation. On energy, I am very glad to see that this summit endorsed the principles and actions of the Rome G7 Energy Initiative. This will ensure that our citizens and businesses benefit from energy that is cleaner, safer

and more secure than in the past. We have agreed that in fact energy security is a geopolitical issue of the highest importance. The Commission has just presented a proposal for the European Union for an Energy Security Strategy that we will discuss on the 27th of this month at the European Council. I hope that it will be agreed. I think that if it is not now, when can you really agree on that very important piece of work? And I also believe that this issue is also related to climate change. Because the less dependant we are on fossil fuels, that sometimes are in problematic areas of the world, and the more we rely on renewables and on indigenous resources, the better our security of supply will be. So, both for the sake of environmental protection and also energy security, it is very important that we step up our efforts to fight climate change. 2015 will be a crucial year and I am confident that the world can count on our ambitious contributions in the run-up to the UN climate conference in Paris. We have all agreed at the G7 table that this is the key date. We are hoping to have a multilateral agreement and this besides the national commitments that are already being put in place. On that point, I have specifically welcomed and congratulated President Obama on the recent measures he announced domestically. Finally, on development, this G7 has shown again that fairness and solidarity towards the world’s poorest is one of our most important concerns. We have agreed that all of us work for an ambitious outcome of the discussions on a universal post-2015 development agenda. And we had the time to discuss some concrete initiatives that are important not least from a health point of view. To conclude, in this meeting we have agreed a strong and clear stance on Ukraine and we have also given further proof of our commitment and action on trade, energy, climate change and development. But this meeting was much more than agreeing a piece of paper, a communiqué. Because the multitude of serious challenges we are all facing has once again demonstrated the importance of close cooperation between like-minded partners that share the values of freedom and democracy. Here in Brussels, at this very important G7 Summit, we have reaffirmed with force and conviction our commitment to these values and to an international order based on the rule of law. Schloss Elmau. Germany 2015 ❙ 49

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The Authorised G7 Publication

Leaders Statements / Shinzo Abe

Shinzo Abe, Prime Minister of Japan, Statement on the 2014 G7 Summit Meeting June 5, 2014

durInG the sessIon on the economy, I declared my determInatIon to contInue to push forward wIth reforms wIthout flInchInG. 52 ❙ g7germany.de

he world is now standing at a major historical crossroads. Now in particular the G7 leaders must stand united in indicating the direction in which the world should proceed from now on. Demonstrating their determination and convictions in this regard, the leaders of the world’s major developed nations met here in Brussels these two days and held frank discussions. Above all else, we share a common “language” of freedom and democracy, fundamental human rights, and the rule of law. While sharing these fundamental values, we discuss the path forward that the world should take. That is the G7 summit. Last month at the NATO headquarters here in Brussels and last week in Singapore, I appealed to the international community for the importance of the rule of law. It is freedom of navigation and freedom of overflight that are the most important assumptions for developing free trade and developing the world economy. “States shall make their claims based on international law. They shall not use force or coercion in trying to drive their claims, and they shall seek to settle disputes by peaceful means.” These are principles that all countries must naturally uphold as members of the international community. On this occasion we successfully confirmed these principles as the G7. We must not under any circumstances accept changes to the status quo with force in the background. The issues which have their roots in Ukraine are global issues that also impact Asia. If we fail to address the rampant use of force or coercion, the world will be thrown into turmoil. I shared that sense of crisis with the leaders of the G7 once more. We are adamant that in neither Ukraine nor Asia can accept expansionism that challenges the regional order. The G7 was united in sending out to the world a message of its clear-cut will on this matter. In Ukraine, a presidential election was

held and the country is now beginning new nation-building under President-elect Poroshenko. Japan will provide assistance to the greatest extent possible in order to foster the stability of the new Ukraine. In nation-building, the international community must be united in its cooperation. That point was also confirmed at this summit. In particular, the cooperation of Ukraine’s neighbor Russia is indispensable. Originally, Russia’s President Putin was to be here at this summit. I would like Russia to be

constructively involved in the various issues facing the international community as a responsible nation. The world also hopes for this. For this reason too, I intend to continue to have dialogues with President Putin. The current state of international affairs may turn into major risk factors even for a world economy that has finally begun to recover from the Lehman Shock. Emerging economies showing sluggish growth also constitute a significant challenge. The G7

will act in cooperation in its efforts to support structural reform in emerging economies and bring their great potential for growth into full bloom. At the summit one year ago, the attention of the world was focused on Japan’s new economic policy, Abenomics. This year it was the results of this policy that drew attention. Through my “three arrows,” the ratio of job offers to job seekers in Japan has risen for 17 consecutive months and is now higher than one offer of employment for

every person seeking work. A large number of companies have taken the bold decision to raise wages from this spring. At present, Japan is also an engine for reviving the global economy. During the session on the economy, I declared my determination to continue to push forward with reforms without flinching. “Japan has returned once more to the world’s center stage.” This was also a summit where I realized that once again. I explained the situation in East Asia to the other countries and I was able to gain the understanding of the G7 nations. I believe that together with the other leaders of the G7 I was able to send out a clear message to North Korea, which has continued its provocative actions, that “we will absolutely not accept North Korea possessing nuclear weapons, and that there will be no future in maintaining the current state of affairs.” I also introduced the recent agreement between Japan and North Korea and appealed for the need to resolve the abduction issue. I succeeded in gaining the strong support and understanding of each country. My mission will not be complete until the day comes that the families of all the abductees are able to embrace their relatives with their own hands. I will work to the utmost of my ability to resolve the abduction issue, acting in cooperation with other related countries. Here in Brussels, I have been shown superb hospitality during both this visit and my visit last month. I would like to express my appreciation once again to the people here in Brussels for this. From here, I will head to Italy. Italy will hold the presidency of the Council of the European Union from next month. With Prime Minister Renzi I wish to discuss the future of Japan and the EU, including notably the early conclusion of an economic partnership agreement between Japan and the EU. Europe is an essential partner as I advance my “diplomacy that takes a panoramic perspective of the world map.” To make a grand finish of my series of visits throughout Europe, this time I will visit the Holy See and hold discussions with Pope Francis. Even the challenges of conflicts and poverty facing the world can most certainly be resolved. To make that a reality, we must continue to make our best efforts on a continuous basis. I would like to share with the Pope this way of thinking that Japan has. Schloss Elmau. Germany 2015 ❙ 53

The Authorised G7 Publication

Leaders Statements / Stephen Harper

Stephen Harper, Prime Minister of Canada, Statement Excerpt on 2014 G7 Summit Meeting June 5, 2014

54 â?&#x2122; g7germany.de

bviously, our G7 meeting here takes place at a challenging time for global peace and security, not to mention freedom, democracy and the rule of law. The situation in Ukraine in recent months underscores the need now more than ever for what the G-7 provides. A group of like-minded allies, aligned on issues of global importance, capable of coordinated and sustained action. We stand with our G7 partners in maintaining strong measures that will achieve the further political and economic isolation of the Putin regime. These measures should remain in place

until Russia ceases its interventions in Ukraine including its illegal military occupation of Crimea. G7 leaders also addressed the global economy, energy, climate change and other international issues of concern including the situation in Syria, Iran, North Korea, the Middle East and others. Finally, we also encouraged G7 leaders to maintain the Muskoka Initiative on maternal, newborn and child health as the development focus past 2015 takes shape.

Close of the 2014 G7 Summit

Excerpt Statement by François Hollande, President of France June 5, 2014

Excerpt Statement by Matteo Renzi, Prime Minister of Italy June 5, 2014

e are no longer in crisis. There is still stagnation in a certain number of countries. There is even a slowdown in the growth that was particularly vigorous in emerging countries. Already for several months, there have been encouraging signs from the United States. The European economy is still in a state of hesitation, from where the will expressed at the G7 to stimulate growth and jobs. I want to praise the decision that the ECB took today in lowering rates and improving the financing of the economy. The Central bank understood that the danger is not inflation, it’s. It’s the risk of having economies that do not advance enough.

taly does not have a name or national candidature, nor does it attach itself to geographical choices. Nobody can hand down diktats, not a European political force elected to the European parliament, not a country nor anybody else. I would add that no candidate has obtained a majority and this is a very important step, therefore we must find a common understanding. Schloss Elmau. Germany 2015 ❙ 55

The Authorised G7 Publication

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The Authorised G7 Publication

Feature / G7 and Sustainable Development Authored by: Dr. Werner Brandt

60 â?&#x2122; g7germany.de

G7 and Sustainable Development

Dynamic and Sustainable Growth: The Contribution of International Business Economic growth provides the foundation and resources for societies to develop and prosper. German business today is well placed to lead the successful transition to a more sustainable managed economy and society.

ith the world population growing fast and natural resources becoming limited, there is a need for a more sustainable approach to promoting and sustaining economic growth. What can we do? The G7 as an informal group of leading industrial nations addresses this issue in its 2015 agenda. The International Chamber of Commerce (ICC) believes that the contribution and involvement of the international business community is essential for a successful rethinking of the process and offers its help and support. Economic growth provides the foundation and resources for societies to develop and prosper, and for people to meet their needs and pursue their aspirations. But the globalization of economies creates new challenges which governments and the industry need to face. For one, increasing economic growth has a direct impact on the earth’s finite natural resources. Thus, the present growth patterns have their own limitations and can only be kept at its present level if it is combined with a more efficient use of natural resources and increased investment in energy efficiency. The fact that in 2050 our planet will be home to over 9 billion people is another indicator that immediate action is desperately needed. Last but not least, climate change is another immediate global challenge which will have—if we continue business as usual— long-term implications on the well-being

of us all. All these challenges ask for more sustainable economic development that enables economic empowerment and poverty eradication, as well as advances environmental stewardship. It also contributes to the transboundary global challenges reflected in the UN Sustainable Development Goals (SDGs), which hopefully will be adopted in September this year. Looking at Germany, sustainability is already an important component of our business models. And it is not new: First developed in Germany by Carlowitz three hundred years ago, the aim was to introduce sustainable practices in the forestry sector. Building on deep cultural roots and seizing market opportunities for greener products and technologies, German business today is well placed to lead the successful transition to a more sustainable managed economy and society from the front. However, a lot more still needs to be done, and Germany’s G7 Presidency this year may facilitate the promotion of the sustainability agenda in a global context. The G7 Summit 2015 Agenda The 2015 G7 summit in Elmau offers an opportunity to support the emerging global challenges with strong commitments. The 2015 agenda has a strong focus on natural resource efficiency, climate protection, improving working conditions and trade and supply chain standards as well as the protection of the maritime environment. ›

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The Authorised G7 Publication

Feature / G7 and Sustainable Development › The UN Framework Convention on Climate Change and the Post 2015-Agenda for Sustainable Development will also be part of this year’s G7 consultations. With the G7 made up by the world’s seven most powerful industrialized countries, it is predestined to be one of the key players in creating dynamic and sustainable global economic conditions. The G7 represents the lives and aspirations of over 750 million people and accounts for approximate 64 percent of global net worth. The G7 countries have a special responsibility in promoting and contributing to a sustainable global environment. And this responsibility is not only related to their respective constituencies, but also to less industrialized countries. Many developing countries are particularly affected by the effects of the climate change and resource scarcity. Promoting a global sustainability agenda will send a strong signal to the whole world. ICC’s contribution to the G7 agenda The International Chamber of Commerce (ICC) has been a longstanding partner on all issues related to sustainable growth and development. Therefore, ICC welcomes the focus on sustainability in this year’s G7 agenda. The impact of climate change on our societies, the safeguard of natural resources and the need for a more sustainable economic growth are central issues of ICC. Our aim is to raise awareness within business and to make sustainability part of the business models of companies. ICC has a unique leverage: As a world business organization—with a network reaching over 6 million companies, chambers of commerce and business associations—ICC provides a global forum for businesses and other organizations to develop and implement rules and guidelines on all aspects of sustainability on a worldwide voluntary basis. In order to deal with today’s global challenges, ICC reflects the economic, societal, and environmental dimensions of sustainable development and works on global solutions and ways to promote global trade while setting a focus on sustainability. The ICC Commission on Environment and Energy develops recommendations for business on significant regulatory and market issues concerning energy and environment. ICC acts as business’s primary interlocutor and partner in key intergovernmental negotiations and dialogues, including the United Nations Framework Convention on Climate Change (UNFCCC) and the UN Environment Program (UNEP). ICC supports the development of the UN SDGs and is committed to a successful outcome at the 62 ❙ g7germany.de

21st Conference of the Parties of the UN Framework Convention on Climate Change (COP21) in Paris. ICC supports an ambitious, worldwide agreement that fully engages the private sector over the short and long term. With the Global Business Alliance, a business group across sectors and nations, a broad range of approaches, expertise, and perspectives is offered to strengthen and inform the deliberations for the post-2015 negotiations at every step of the way. Various ICC publications developed from business for business contribute to solutions of the addressed issues. For example, the ICC policy statement, “Enabling framework to scale up investment in energy efficiency”, encourages global investment in clean energy and proposes additional investment in energy efficiency as an important contribution to a more sustainable energy future. A critical aspect here is that investments in clean energy and energy efficiency are in need of a stable political framework, legal investment protection, and an adequate return for investors. Furthermore, in order to provide for a more efficient overall use of natural sources of energy and to increase security of supply, it is vital that all countries fully exploit their indigenous sources of raw material—in due consideration of environmental protection aspects. In the policy statement, “A business perspective on international climate change policy”, ICC shares a business view on climate change and offers helpful business recommendations to strengthen the business engagement. With this year’s “ICC Business Charter for Sustainable Development”, ICC developed new guidelines for a more sustainable economy. The Charter proposes concrete business actions and provides a practical

framework including guidelines for all business sectors on how to shape their own business sustainability strategy. Implementing the Charter offers key benefits such as creating new job opportunities, increasing employee loyalty and a long-term cost reduction and helps businesses to establish their own environmental and human resources management systems. The need for a more sustainable economic development is apparent. The contribution and involvement of the industry are fundamental: Business is not part of the problem but part of the solution. A steady but dynamic government-business dialogue is essential. The G7 agenda has a major impact on international business goals and will contribute to more awareness of the importance of sustainable economic growth. At the same time, ICC offers a valuable perspective from the business industry and helps to integrate sustainability into business objectives and management systems. Partnering with governments as the G7 states is an important and effective way to implement commitments. The way forward We encourage the G7 to use its increasing influence on global policy priorities to further advance dynamic and sustainable economic growth. The 2015 G7 summit will be one important step towards a more sustainable economic environment. We recommend an active exchange between industry and politics, because sustainable development needs the capabilities, contributions, engagement and solutions of the business community. ICC is ready to make its contribution to ensure that a global framework includes all three dimensions of sustainable development: the ecological, social and economic factor. Together we can create new opportunities on a global basis that will spur sustainable economic growth. ■

Dr. Werner Brandt is Chairman of the German National Committee, ICC Germany. In addition, he is Chairman of the Supervisory Board of ProSiebenSat.1 Media AG and Qiagen N.V, and Member of the Supervisory Board of Deutsche Lufthansa AG, RWE AG and OSRAM Licht AG. From 2001 to 2014 he was member of the Board of Directors and Chief Financial Officer of SAP AG.

G7 Nations

The G7 Nations: At a Glance

Federal Republic of Germany

Government Chief of State: President Joachim Gauck › entered office: 23 March 2012

The G7 Leaders Summit is one of the most exclusive groups in world politics. However, while the nations these leaders represent are singular in being among the most prosperous in the world, it does not mean they are not without their differences. The following statistics snapshot gives an insight into the similarities and differences between the G7 Nations.

› elections: Elected for a five-year term (and eligible for a second term) by a Federal Convention. Last election held February 2012; next election held June 2017.

Sources: World Bank, UN Data, CIA Factbook, US Census

GdP (Per Capita): 46,268.64 USD (2013) › Growth rate: 1.4% (2014) › inflation rate: 0.9% (2014)

head of Government: Chancellor Angela Merkel › entered office: 22 November 2005 › elections: Elected by an absolute majority of the Federal Parliament for a four-year term. Last vote for Chancellor held December 2013; next vote held after the September 2017 elections.

Economy Growth

1.4%

(2014)

top exports: Machinery, vehicles, chemicals, household equipment Youth Unemployment (ages 15 to 24, 2012): › Total: 8.1% › Male: 8.8% › Female: 7.4%

Population Growth

total: 82.65 million (2014)

-0.18%

Growth rate: -0.18% Urbanization: 75.1% of total population (2014) Percent of Population with access to the internet: 84% (2012 ITU Estimate) Percent of Population Below Poverty Line: 15.5% (2010) refugee Populations admitted, 2014 (by Country of origin): › Turkey: 23,478 › Iraq: 40,402 › Iran: 18,146 › Syria: 28,823 › Afghanistan: 25,963 › Serbia: 9,526 › Stateless: 11,709 (2013)

internet total

84%

82.65m

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G7 Nations

Canada

France

Government

Chief of State: Queen Elizabeth II, represented by Governor General David Lloyd Johnston › entered office: 1 October 2010

Chief of State: President Francois Hollande › entered office: 15 May 2012

› appointment: The Governor General is appointed by the monarch, generally for a five-year term, on the advice of the Prime Minister. Governor General Johnston’s appointment has been extended to September 2017. head of Government: Prime Minister Stephen Harper › entered office: 6 February 2006 › elections: The leader of the majority party or the leader of the majority coalition in the House of Commons is generally named Prime Minister by the Governor General following legislative elections. The next elections will be October 2015.

› elections: The president is elected by popular vote for a five-year term, and is eligible for a second term. Last election May 2012; next election in the spring of 2017 head of Government: Prime Minister Manuel Valls › entered office: 1 April 2014 › appointment: The prime minister is appointed by the president.

Economy GdP (USd)

GdP (Per Capita): 42,503.30 USD (2013) › Growth rate: 0.4% (2014) › inflation rate: 0.7% (2014)

Economy

42,502.30

top exports: Machinery, aircraft, plastics, chemicals, pharmaceutical products, iron, steel, beverages

GdP (Per Capita): 51,958.38 USD (2013) › Growth rate: 2.3% (2014) › inflation rate: 2% (2014) top exports: Vehicles, industrial machinery, aircraft, telecommunications equipment, chemicals, fertilizer, wood products, crude petroleum, natural gas, aluminum Youth Unemployment (ages 15 to 24, 2012): › Total: 14.3% › Male: 15.9% › Female: 12.6%

Youth Unemployment (ages 15 to 24, 2012): › Total: 23.8% › Male: 23.9% › Female: 23.7%

Population total: 66.26 million (2014) Growth

Growth rate: 0.45%

Population

Percent of Population with access to the internet: 83% (2012 ITU Estimate)

total: 34.8 million (2014) Growth

Growth rate: 0.76% (2014)

0.76%

Urbanization: 81.6% of total population (2014) Percent of Population with access to the internet: 86.8% (2012 ITU Estimate)

(2014)

Percent of Population Below Poverty Line: 9.4% (2008) refugee Populations admitted, 2014 (by Country of origin): › Sri Lanka: 12,326 › Colombia: 17,381 › Pakistan: 10,641 › China: 15,344 › Haiti: 7,872 › Mexico: 6,512 Poverty

9.4%

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0.45%

Urbanization: 79.3% of total population (2014)

Percent of Population Below Poverty Line: 7.9% (2011) refugee Populations admitted, 2014 (by Country of origin): › Turkey: 10,843 › Sri Lanka: 24,055 › Democratic Republic › Vietnam: 8,483 › Laos: 7,227 of the Congo: 13,783 › Mauritania: 5,166 › Russia: 13,374 › Stateless: 1,247 (2013) › Cambodia: 12,482 › Serbia: 12,061

internet

86.8%

internet total

66.26m

83%

G7 Nations

Italy

Japan

Government

head of State: President Sergio Mattarella › entered office: 3 February 2015

head of State: Emperor Akihito › entered office: 7 January 1989

› elections: The president is elected by an electoral college consisting of both houses of parliament and 58 regional representatives for a seven-year term, with no term limits. Last election held in April 2013; next election in 2020.

› appointment: Hereditary

head of Government: Prime Minister Matteo Renzi › entered office: 22 February 2014 › appointment: The prime minister is appointed by the president and confirmed by parliament.

Economy

GdP (Per Capita): 35,925.88 USD (2013) › Growth rate: -0.2% (2014) › inflation rate: 0.1% (2014)

GdP (USd)

35,925.88

top exports: Textiles and clothing, vehicles, engineering and production machinery, foodstuffs, beverages, tobacco, minerals Youth Unemployment (ages 15 to 24, 2012): › Total: 35.3% › Male: 33.7% › Female: 37.5%

head of Government: Prime Minister Shinzo Abe › entered office: 26 December 2012 › appointment: The bicameral legislature, designates the prime minister; following legislative elections, the leader of the majority party or majority coalition in the House of Representatives usually becomes prime minister. Last legislative elections held in December 2014; next elections held in July 2016.

Economy

GdP (Per Capita): 38,633.71 USD (2013) › Growth rate: 1.3% (2014) › inflation rate: 2.8% (2014)

Growth

1.3% (2014)

top exports: Vehicles and parts, semiconductors, iron/steel products, plastic materials, power generating machinery Youth Unemployment (ages 15 to 24, 2012): › Total: 7.9% › Male: 8.7% › Female: 7.1%

Population Population

total: 61.7 million (2014) Growth rate: 0.3% (2014)

Growth

0.3%

Urbanization: 68.8% of total population (2014) Percent of Population with access to the internet: 58% (2012 ITU Estimate)

(2014)

Growth

total: 127.1 million (2014)

-0.13%

Growth rate: -0.13% (2014) Urbanization: 93% of total population (2014)

Percent of Population Below Poverty Line: 29.9% (2012)

Percent of Population with access to the internet: 79.1% (2012 ITU Estimate)

refugee Populations admitted, 2014 (by Country of origin): › Eritrea: 12,666 › Somalia: 10,846 › Afghanistan: 6,657 › Stateless: 350 (2013)

Percent of Population Below Poverty Line: 16% (2010)

Poverty

29.9%

refugee Populations admitted, 2014 (by Country of origin): › Stateless: 852 (2013)

Poverty total

61.7m

16%

internet

79.1%

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G7 Nations

United Kingdom

United States of America

Government

head of State: Queen Elizabeth II › entered office: 6 February 1952

Chief of State/head of Government: President Barack Obama; Vice President Joseph Biden › entered office: 20 January 2009

› appointment: Hereditary. head of Government: Prime Minister David Cameron › entered office: 11 May 2010 › appointment: Following legislative elections, the leader of the majority party or majority coalition usually becomes prime minister. House of Lords – no elections; House of Commons – last elections held in May 2015, next held in May 2020.

› elections: Single ticket with president and vice president selected by an electoral college of representatives, who are elected directly from each state. Limited to four-year term, but eligible for a second term. Last election held November 2012; next election to be held November 2016.

Economy

GdP (Per Capita): 41,787.47 USD (2013) › Growth rate: 3.2% › inflation rate: 1.6%

inflation

1.6%

(2014)

top exports: Manufactured goods, fuels, chemicals, food, beverages, tobacco

Economy

GdP (Per Capita): 53,041.98 USD (2013) › Growth rate: 2.4% (2014) › inflation rate: 2% (2014) top exports: Aircraft, computers, telecommunications equipment, vehicles, organic chemicals, medicine, agricultural products. Youth Unemployment (ages 15 to 24, 2012): › Total: 11.9% › Male: 12.9% › Female: 10.9%

Youth Unemployment (ages 15 to 24, 2012): › Total: 21% › Male: 23.8% › Female: 17.9%

Population

total: 318.9 million (2014)

total: 63.7 million (2014) Growth

Growth rate: 0.54% (2014)

0.54%

Urbanization: 82.3% of total population (2014) Percent of Population with access to the internet: 87% (2012 ITU Estimate) Percent of Population Below Poverty Line: 16.2% (2011)

(2014)

Growth rate: 0.77% (2014)

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(2014)

Percent of Population Below Poverty Line: 14.5% (2010)

internet

Poverty

63.7m

0.77%

Percent of Population with access to the internet: 81% (2012 ITU Estimate)

refugee Populations admitted, 2014 (by Country of origin): › Total: 69,926 › Somalia: 7,608 › Iraq: 19,488 › Cuba: 4,205 › Burma: 16,299 › Iran: 2,578 › Bhutan: 9,134 › Eritrea: 1,824

refugee Populations admitted, 2014 (by Country of origin): › Iran: 11,368 › Afghanistan: 9,166 › Somalia: 11,249 › Pakistan: 5,297 › Zimbabwe: 10,302 › Stateless: 205 (2013) › Eritrea: 10,010

total

Growth

Urbanization: 81.4% of total population (2014)

16.2%

total

63.7m

81%

diplomatic courier magazine presents

The World in 2050 A forum about our future.

A Global Affairs Magazine www.diplomaticourier.com/2050

The Authorised G7 Publication

Feature / Trans-Pacific Partnership Authored by: Paul Nadeau

Getting TPP to the Finish Line: A Review Trade is inevitably a difficult sales job, both domestically and internationally, and while TPP and future agreements like it are worthy on merit alone, making the case goes far beyond merit.

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Trans-Pacific Partnership

rade agreements are always a difficult sell to domestic audiences. Generally speaking, the fact that liberalized trade’s benefits are diffuse and gradual, while its frictions are acute, mean that trade agreements will always generate loud constituencies in opposition, regardless of their size. And coupled with the continuing recovery and fallout from the 2008 financial crisis, an ambitious trade agenda like that which President Obama has undertaken becomes, fairly or not, a referendum on the economic recovery and how people would like to see that recovery advance. Ideally, the legislative process is designed to avoid turning trade agreements into referendums. Trade Promotion Authority (TPA) gives Congress the opportunity to set its negotiating parameters in exchange for an expedited up-or-down (simple majority) vote on the final agreement when it is presented to Congress. While TPA is not required for congressional ratification, it makes the process more predictable by giving Congress the chance to weigh in on its priorities while assuring negotiators that the final text will not be reopened through amendments when it comes to a vote. This makes trade negotiations a truly “two-level game” where the administration must negotiate with domestic stakeholders and international partners simultaneously. But with the Trans-Pacific Partnership (TPP), legislative progress on TPA only came in 2015, even though the United States joined the negotiations seven years earlier. Essentially, the reason for this is politics: because trade is an issue that traditionally unites Republicans and divides Democrats, Democratic leadership wanted to protect their members from difficult votes leading up to midterm elections in 2014. Although President Obama and Republican leadership have consistently identified trade as an opportunity for bipartisan cooperation, significant Democratic support remains necessary to achieve TPA and ultimately TPP. While now less exposed to upcoming

elections (especially in President Obama’s case), holding back on TPA until this late in the process has put the administration in a difficult spot, and exposed TPP to accusations of secrecy and of leaving Congress out of the process. Saving TPP from electoral politics did not save it from the necessities of the legislative process. To buttress their case, TPP advocates began to emphasize the national security dimensions of the agreement. There are essentially two parts to this argument— first, that TPP is necessary to politically and economically cement the U.S. pivot to Asia in keeping with the original vision that went beyond military dimensions to a more holistic form of engagement. Second, that the United States can contribute to East Asia’s future stability by creating a transparent rules-based structure that will ensure a harmony of interests among regional states, as opposed to transactional relations that leave open the possibility for coercion. The obvious subtext to the national security argument is China, and making the argument difficult—but important—to finesse. While TPP advocates have emphasized that the agreement is not designed to contain China, the argument frequently lacks an answer for how to constructively engage China in East Asia. This isn’t so important on one hand, since TPP is an answer to a different question (how to integrate Pacific economies to address 21st century economic issues). On the other hand, the larger geopolitical context where TPP will rest is inseparable from China’s future role in the Pacific region’s economic architecture. As a result, the situation that ensues from having China on TPP’s sidelines places (often undeserved) scrutiny on any multilateral economic initiatives in East Asia. For the national security argument to work, it needs to do better at squaring the circle between emphasizing that a U.S.-led order is better than a Chinese one, while also ensuring a role for China in that order. The Asian Infrastructure Investment Bank (AIIB) is the biggest example of this, where U.S.-led

In EuroPE, 81 PErcEnT of all Eu ExPorTIng EnTErPrIsEs arE sMEs ThaT EMPloy alTogEThEr 6 MIllIon PEoPlE. efforts to dissuade allies from joining China’s initiative begged more than a few questions about how the United States sees China’s role in the future economic order. To be clear, there are fair and legitimate misgivings that the United States and others should have about the AIIB, but the way that the United States managed the process put a spotlight on the role the United States sees for China in the future economic order and raised questions of whether China believes that the United States is seeking cooperation or containment. How the United States finesses the national security argument for TPP will go a long way towards mollifying or enhancing those concerns. In the end, TPP will be concluded and ratified—but with a higher degree of difficulty than was necessary. Trade is inevitably a difficult sales job, both domestically and internationally, and while TPP and future agreements like it are worthy on merit alone, making the case goes far beyond merit and the administrations that are the most successful in this regard are the ones that press early and often to win support. President Obama’s greatest challenge in securing TPP will be to master the process— counting votes in Congress, thinking broadly and pragmatically about the international context, and engaging in the give-and-take that is necessary for presidents to succeed. ■

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Feature / Transatlantic Trade and Investment Partnership Authored by: Arnaldo Abruzzini

Regional Deals. TPP & TTIP: What They Create for Europe Negotiators and policy-makers must focus on rolling back global protectionism, as well as increasing the participation of SMEs in global trade.

he financial crisis of 2008 is often said to have constituted the heaviest global economic shock since the Great Depression in the 1930s. In its wake, the risk and temptation for countries to resort to protectionism as an adequate response to shield industries and economies from external economic volatilities and competition was as high as ever. As the worldâ&#x20AC;&#x2122;s largest and most integrated trading bloc, Europe has been especially hit by the disruptions in international financial markets and a re-orientation of its liberal trade policy has been anticipated by many. Yet policy makers in Europe and elsewhere held course, with free trade and global economic cooperation prevailing. When looking back,

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it was in large part due to the continued commitment to open markets and the unswerving cooperation among the worldâ&#x20AC;&#x2122;s leading economies in fora such as the G7 or the G20 that has contributed to the global economy not sliding into recession, and a key towards paving the way for its recovery. However much remains to be done to return to a path of sustainable long term growth, especially in the developed world, as the most recent economic outlook by the International Monetary Fund confirms yet again. Therefore, particularly in Europe and in other partner G7 countries, more trade and investment is rightly seen as a key ingredient to deliver that growth, without further burdening already constrained public budgets.

Transatlantic Trade and Investment Partnership

The Transatlantic Trade and Investment Partnerhsip (TTIP) and the Trans-Pacific Partnership Agreement (TPP) are a case in point, making the G7 now more than ever a prime forum to lead the way towards a renewed multilateral framework for trade and investments worldwide. Towards this end, more focus among the leading economies should be placed on pursuing two parallel tracks. First, by ensuring a more consequent roll back of protectionism to uphold the credibility of the multilateral trading system.; and second, to revive and expand the multilateral trade agenda by building on the regional “mega deals” currently negotiated, such as the TTIP and the TPP, in order to adapt existing trade rules to business realities in the 21st century. By doing so, policy makers should place a distinct emphasis on increasing the participation of SMEs in global trade, as they constitute a major untapped source of growth and job creation in the G7 economies and beyond. In what concerns the roll back of global protectionism, some progress has been achieved to date, when it comes to a scale back of global export restrictions. However, the overall stock of restrictive trade measures introduced by the world’s biggest economies has continued to rise steadily since 2008, despite numerous pledges to the contrary. According to the World Trade Organisation’s latest report on trade developments, in the period between midMay and mid-October in 2014 alone, 93 new traderestrictive

IN EuropE, 81 pErcENt of all Eu ExportINg ENtErprISES arE SMES that EMploy altogEthEr 6 MIllIoN pEoplE.

measures have been applied, which adds up to over 18 new measures per month in the G20 economies. In a world of global value chains, these measures not only risk disrupting the supply chains of industry essential for delivering exports, but also limit economic output and competitiveness as a whole. Additionally a continued surge in trade restrictions risks jeopardising the credibility of the multilateral trading system if not contained adequately. Therefore, in conjunction with their respective business communities, the G7 should work more closely together in order to combine their collective weight, in fora such as the G20 and the WTO, to push for a more targeted implementation of previous pledges ›

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Feature / Transatlantic Trade and Investment Partnership

IN what coNcErNS thE roll back of global protEctIoNISM, SoME progrESS haS bEEN achIEvEd to datE, whEN It coMES to a ScalE back of global Export rEStrIctIoNS.

› to reduce trade restrictions and increase capabilities for a swift and collective response to systematic violations of the underlying principles of international trade, such as local content requirements and discrimination. In addition, international trade rules need to be adapted to today’s global business environment. Trade obstacles are now increasingly found behind the border in the form of regulatory differences, rather than at the border, through tariffs. Moreover the need for rulemaking in new areas has steadily increased, be it in competition policy, state owned enterprises (SoEs) or the better integration of small and medium sized enterprises (SMEs) in global trade. As a result, a proliferation of regional deals has taken place among key global growth centres, in the form of the TTIP or the TPP, aiming to cover new ground where agreements have not yet been possible or envisaged at the multilateral level. For some these developments are an issue of concern, as they fear that the multilateral trading system will be weakened by it. However this should not and will not be the case, as the vast majority of regional deals concluded up to date has in fact boosted trade from non-members. Additionally, a stronger focus on regulatory cooperation in trade agreements, such as, for instance, a closer alignment of regulations in the EU and the U.S. through the TTIP, will make it easier for all companies to operate in more integrated markets. Moreover, many foreign subsidiaries from international companies will benefit from those trade deals due to their 72 ❙ g7germany.de

incorporation. So rather than being geared against the multilateral system, these regional deals should be seen as a stepping stone towards a renewed global framework for trade. But not only has there been criticism of these agreements abroad; also within Europe, TTIP continues to face criticism. NGOs, including many anti-globalisation critics, fear that trade, and TTIP in particular, will be used as a vehicle to start a race to the bottom in terms of labour, environmental, or health standards. While many of the fears surrounding this debate are not grounded in facts and are to be demystified through informed communication campaigns, they do risk clouding the vision for the strategic importance that regional mega deals such as the TTIP have in shaping future global rules and standards. In this regard, TTIP can unleash the potential of the transatlantic economy, which remains by far the world’s largest and wealthiest market, and by combining their collective weight both the EU and the U.S. can exert significant leverage on the multilateral scene to drive the global trade agenda forward in many different areas. One of these areas to be considered is how we can better integrate SMEs in the transatlantic economy and consequently how TTIP can set an international benchmark for a 21 century SME friendly trade agreement. In Europe, 81 percent of all EU exporting enterprises are SMEs that employ altogether 6 million people. Yet despite exporting SMEs representing a large share of total exporting enterprises, they only represent 13 percent of the more than 20 million of SMEs existing in the EU. Accordingly there is a large untapped potential for growth if more SMEs go international. The value of SMEs as an employer and generator for growth is thereby not only an EU specific phenomenon, but common, albeit to varying degrees, among all G7 economies. For the next generation of trade agreements to be more inclusive towards SMEs our efforts should be geared towards making progress in areas where specific obstacles for small businesses are found such as: streamlining

and reducing the administrative burdens associated with customs procedures; increased harmonisation of standards; arranging mutual recognition of certifications and a reduction in heavy mandatory labelling requirements; and taking steps to ease the movement of people and simplifying rules of origin. Additionally, through dedicated SME chapters in future Free Trade Agreements, the creation of a common, product-specific online platform among FTA partners should be envisaged, providing comprehensive information on helping SMEs achieve regulatory compliance on all levels of government. For SMEs, a dedicated chapter in FTAs including such a “one stop shop” can be a real multiplier for the entire set of benefits that will be created throughout more SME-friendly provisions in trade agreements in the future, and allow for their better implementation. The G7 as a leading international forum should thus make its contribution felt in working towards a more predictable, better equipped and more SME-friendly global trade environment. ■

Arnaldo Abruzzini is Secretary General of EUROCHAMBRES, the Association of European Chambers of Commerce and Industry, representing over 20 million enterprises in Europe—93 percent of which are small and medium enterprises—through members in 45 countries and a network of 2000 regional and ocal Chambers. Main activities of EUROCHAMBRES include lobby at European level on socio-economic issues like enterprise and employment policies, as well as delivery of services—to Chambers of Commerce as well as directly to businesses at international level— related to market access, capacity building and trade and investment promotion. www.eurochambres.eu

The Authorised G7 Publication

Feature / Intellectual Property Authored by: Jeremy Malcom

Time to Reconsider Intellectual Property as a Trade Issue? The failings of the 2007 Anti-Counterfieting Trade Agreement are being repeated in the Trans-Pacific Partnership; if anything, the TPP negotiations are even more exclusionary.

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Intellectual Property

ince the mid-90s when the TRIPS Agreement was struck at the World Trade Organization (WTO), the negotiation of international intellectual property standards has been framed as a trade issue; and ever since then, these negotiations have been shifting from fully multilateral venues such as the WTO and the World Intellectual Property Organization (WIPO), to narrower coalitions of the willing. Part of the reason for this shift is that reaching a global accord on intellectual property issues has become increasingly difficult. Just as the Doha round of WTO talks has been stagnant for a decade, so too the multilateral negotiations at WIPO have been grinding to a halt, if any indication of this is given by the complete lack of progress made on substantive issues at its 41st General Assembly in 2014. Thus the move to smaller groupings of states, a trend that has been termed “minilateralism”—as coined by Moisés Naím to describe “the smallest possible number of countries needed to have the largest possible impact on solving a particular problem”. (The G7 itself, as a small group of the world’s leading developed economies, falls into this category.) Minilateral agreements are frequently intended to set de facto global standards to which other countries will later be pressured to subscribe. In the context of intellectual property (IP) rules, an example of a minilateral agreement is found in the Anti-Counterfeiting Trade Agreement (ACTA), which was announced in 2007 by the United States and Japan, and by the time of its conclusion in 2011 had grown to include nine other partners including the European Union. Ultimately ACTA failed to reach the threshold of ratifications that it required to take effect, due to an effective international civil society campaign against the agreement that led to its rejection by the European Parliament in July 2012. The architects of ACTA found themselves in between a rock and a hard place; its membership had been crafted narrowly enough to exclude the developing countries who would cause it to stall if the agreement were discussed at WIPO or the WTO (Mexico was the token developing country in the ACTA club), but by excluding those same countries and by further limiting public participation and access to the negotiations,

MinilATerAl AgreeMenTs Are frequenTly inTended To seT de fACTo globAl sTAndArds To whiCh oTher CounTries will lATer be Pressured To subsCribe.

ACTA was thereby drained itself of its public legitimacy. Oddly, these failings of ACTA are being repeated in negotiations over a Trans-Pacific Partnership agreement (TPP). The TPP also contains a chapter on IP, and has been pursued on a similar basis to ACTA, having already expanded from an original group of four negotiating countries into a current partnership of twelve. If anything, the TPP negotiations are even more exclusionary than those of ACTA, for which draft text was officially released prior to its conclusion. Other than courtesy of Wikileaks, no such release has been made of the TPP text. The argument raised is that the agreements are being negotiated in private because trade agreements have always been negotiated in that way. But trade agreements have most certainly not always looked the way that they do now, extending to include so many › “behind the border” issues, including those that impact on the Internet. Aside from IP, recent agreements such as the TPP also include rules on e-commerce (“free flow of information”), telecommunications services, and “regulatory coherence”, amongst other measures. The negotiations thus bring up a range of other areas of law and policy ›

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Feature / Intellectual Property › outside of trade law, including competition law, data protection and human rights law. In most cases there are already more well established homes for multilateral discussion of these issues (such as WIPO, the WTO and UNCTAD), but including them in narrower trade agreements enables them to be played off against offers of trade concessions, as well as excluding the powerful blocs of developing and emerging economies who would otherwise more strongly oppose the rules that highly industrialized countries such as the United States seek to impose on their trading partners. There is, however, a significant risk that this strategy of forum shifting will backfire. Whereas trade agreements may traditionally have been negotiated in relative secrecy, the same has not been true of intellectual property treaties, and is still less true of the discussion of other Internet-related global public policies such as rules on information flows. The NETmundial Multistakeholder Statement, concluded in April 2014 and since incorporated by reference into a number of multilateral resolutions and recommendations, provides: The development of international Internetrelated public policies and Internet governance arrangements should enable the full and balanced participation of all stakeholders from around the globe, and made by consensus, to the extent possible. Decisions made must be easy to understand, processes must be clearly documented and follow agreed procedures, and procedures must be developed and agreed upon through multistakeholder processes. The mode of negotiation of trade agreements such as the TPP is facially incompatible with these criteria. The TPP has offered no means for the participation of non-governmental stakeholders in text discussions; even the ability for nongovernmental delegates to make presentations to delegates, as allowed in early negotiation rounds, has been discontinued since 2013. The transparency of the process has also been consistently poor. There is not even an official TPP website where information can be found; rather, the responsibility of disseminating information about the negotiations to the public is delegated to individual countries, none of whom execute it very well. Compounding these specific faults of the TPP are the broader democratic deficits that apply to many multilateral processes, whereby negotiators move in something of an accountability vacuum, disconnected from domestic political oversight. This 76 ❙ g7germany.de

renders the overall process vulnerable to business lobbying, and also allows the misuse of multilateral negotiations for the purposes of “policy laundering” of rules that would be too politically unpopular to be negotiated directly in local parliaments. The upshot of this is that the scathing reception that ACTA received may be nothing to that awaiting the TPP, if ever the agreement is finally concluded and the text released. However well-established the secrecy of trade negotiations may have been until now, significant changes are clearly going to be required going forward. In the parallel negotiations between the European Union and the United States for a Trans-Atlantic Trade and Investment Partnership (TTIP), the first signs of these are visible in the European Commission’s 2014 undertaking to release all EU text proposals to the public as they are presented in the negotiations. There is much scope for the refinement and formalization of such standards. One possible avenue for this may be through the Open Government Partnership (OGP), a multilateral body through which member governments make periodic public commitments to improve their transparency and openness. Civil society takes a role in shaping these commitments and in reviewing the independent assessment of states’ compliance. Although the commitments given to the OGP are voluntary, these best practices could ultimately feed into the development of a binding international instrument on trade transparency; perhaps at the WTO, or at

UNCITRAL, which has already developed a set of Rules on Transparency in Treatybased Investor-State Arbitration and concluded a 2014 Convention on the topic. Complementing or perhaps feeding into such state-led initiatives, it would also be appropriate to commence a fully multistakeholder dialogue on trade transparency. Given the relatively well-established norms of multi-stakeholder engagement that exist in the regime of Internet governance, the development of norms to guide the development of Internet-related trade rules could be a most apt topic for the consideration of a multi-stakeholder body such as the Internet Governance Forum (IGF) or even the recently-formed NETmundial Initiative, which was established to operationalize the NETmundial principles. Initiatives such as these could begin to construct a positive alternative to the current exclusionary, opaque, and democratically illegitimate process by which IP and other internet-related rules are being foisted on the citizens of negotiating countries, and ultimately, beyond. Aside from being more open, participatory and transparent than the status quo, it is difficult to say exactly what reforms such a process might point to— whether, for example, to more thoroughly reform trade negotiation processes, or rather to exclude certain issues from such negotiations altogether, in favour of more inclusive and accessible fora (whether new or existing). Whatever form these new arrangements may take, the cost of failing to develop them will be the repetition of the fate of ACTA. Much may ride on the final outcome of the TPP, which is soon to be known—perhaps even as soon as this article sees print. If, as seems quite possible, the agreement falls to clear its last hurdle due to widespread public opposition over its process and substance, this will speak volumes for the future prospects of this antiquated mode of trade negotiation. ■

Jeremy Malcolm is Senior Global Policy Analyst at Electronic Frontier Foundation, where he works on the international dimensions of issue such as intellectual property, network neutrality, Internet governance and trade. Prior to that he worked for Consumers Internationa coordinating its global programme Consumers in the Digital Age. He lives in California.

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Feature / Employees and Employers Authored by: Holly Ranson

Closing the GapThrough Expanding the Women’s Participation Conversation: Employees and Employers Chrisella intro here of Russians are now convinced that the European Union and the United States are working together to destroy their country by supporting a fascist regime in Kiev.

espite accounting for over half of the world’s population, women remain considerably underrepresented in the global labor force, and overrepresented in the informal sector and among the world’s poor. The perpetuation of the gendered division of labor markets and the slowing of progress towards closing the gap has serious macroeconomic consequences: GDP per capita losses attributable to gender gaps in the labor market have been estimated at up to 27 percent in certain regions.1 Many countries in the G7 are expected to face a shrinking

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labor force over the next 20 years. This, combined with increased gains in education for women all over the world and against a backdrop of exhausted fiscal and monetary policy mechanisms, highlights that G7 countries have much to gain from increased female labor force participation. To unlock the full economic might of women’s participation it’s critical that world leaders pursue a multi-faceted approach to reform that places an increasing focus on removing impediments to women being employers, as well as continuing to remove barriers to womens participation as employees.

The case for women’s participation Increasing women’s workforce participation was one of the focal points of the 2014 G20 Summit in Brisbane, where leaders committed to reduce the gender gap in the workforce by 25% by 2025.2 Setting a target of this nature, within a traditionally target-averse diplomatic landscape, is to be applauded, however, the reform required to achieve it is as difficult as it is critical. The International Monetary Fund’s (IMF) Fair Play report, released in February, highlighted that over 90% of countries worldwide have some kind of legal distortion or discrimination that keeps women

Employees and Employers participation, baseline projections estimate that the GDP per capita will grow at an average annual rate of between 0.8% and 3.4% among OECD economies.6 However, full convergence in the participation rate between men and women over 20 years will boost the GDP per capita growth rate, on average, among OECD by 0.6 percentage points the annual growth rate of GDP per capita, with an equivalent increase in GDP of 12.0% by 2030.7 Shifting the conversation to entrepreneurship Importantly, the focus of the next tranche of policy reforms designed to advance women’s labor force participation needs to encompass further initiatives to empower female entrepreneurs. Comparatively less focus and resourcing has been given to this issue to date, meaning it remains a largely untapped source of economic potential. The Global Entrepreneurship Monitor (GEM) found that in just the 67 countries recognised by the World Bank, 126 million women are

operating their own business is increasing globally, women continue to face huge obstacles that stunt the growth of their businesses. The average growth rate of women’s enterprises is significantly lower than the average growth rate for SMEs run by men and their average earnings from self-employment are up to 60% lower.12 Worldwide, at least 30 percent of women in the non-agricultural labor force are self-employed in the informal sector; in Africa, this figure is 63 percent.13 The major barriers to starting and scaling an enterprise include institutional and regulatory issues, lack of access to finance, relatively low rates of business education or work experience, risk aversion, confinement of women’s businesses to slower growth sectors, and the burden of household management responsibilities.14 Access to education and training to support enterprise Increasing women’s education, skills, and experience would further enhance

InCREaSIng womEn’S EdUCatIon, SKIllS, and ExpERIEnCE woUld fURthER EnhanCE thEIR aCCESS to fInanCE and hElp to RaISE thE pRodUCtIvIty of EntERpRISES ownEd and managEd by womEn.

from working, getting loans, or owning property.3 Equity barriers such as unaccounted for unpaid work, affordable childcare and education and training provision and uptake are additional gender-specific impediments highlighted as requiring further initiatives to better enable women’s economic participation.4 The potential economic rewards of enhanced female participation are substantial; countries could lift their GDPs by up to 30% just by increasing the percentage of women in their workforce.5 In the absence of a reduction in the gender gap in labour force

running early-stage businesses, and 98 million operating established businesses.8 While aggregated data on female entrepreneurship is difficult to source, this sample size alone represent the significance of the employment generation and economic growth potential of female entrepreneurs; beyond their incomes, 112 million of the GEM surveyed entrepreneurs employed one or more people, and 12 million expected to employ up to six people in the next five years. 9 In the U.S., more than half of the 9.72 million new jobs to be created in the SME sector by 2018 will be created by woman-owned SMEs.10 Women’s increased income and assets are also a ‘gender dividend’ driving family, community and country wellbeing, especially in emerging market; women reinvest 90 cents of every additional dollar of income in their families’ education, health and nutrition, compared to 30-40% for men.11 However, while the number of women

their access to finance and help to raise the productivity of enterprises owned and managed by women.15 Since 1970, the number of women enrolled in tertiary institutions has grown at almost twice the rate of men, and the tertiary gender enrolment ratio (GER) for women is now higher than that of men in 92 out of 131 countries in UNESCO’s data set.16 Despite this, women tend to be the least educated entrepreneurs; in developing countries, 54 percent of women entrepreneurs have not completed secondary education, compared to the 34 percent who have some graduate experience in developed countries.17 Women also generally lack the vocational and technical training and experience compared to their male counterparts.18 Only one G20 country, England, has full gender equality in apprenticeships.19 Access to apprenticeships is sometimes restricted on the basis of age, required educational qualifications or to youth entering directly › Schloss Elmau. Germany 2015 ❙ 79

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Feature / Employees and Employers › from the education system, all of which can serve as impediments to women, particularly in developing countries. This could readily be redressed by tailored ‘on-boarding’ initiatives that provide a pathway for women in to the formal vocational program. Apprenticeships may also be limited to traditional sectors such as construction and manufacturing, or to a very narrow range of occupations in the service sector.20 Expanding the sectors and occupations covered by apprenticeships is seen as one of the key initiatives to encourage greater female participation in vocational education. Reducing ‘capital punishment’ and assisting scale Public policy has an important role to play in improving the financing prospects of women-owned firms. Preventing discrimination in lending markets, increasing the scale and reach of public interventions aimed at improving conditions of access to credit particularly for small and medium firms (including microfinance for informal businesses), and increasing the capacity of financing institutions to respond to female entrepreneurs’ needs would all go a long way towards levelling the playing field in the credit markets and access to equity.21 Examples of such government initiatives include India’s Trade Related Entrepreneurship Assistance and Development (TREAD) Scheme for Women which involves preferential interest rates and credit guarantee schemes for women entrepreneurs, and Brazil’s Individual Microentrepreneur Programme (MEI) which reduces registration costs with large effects on informality among female, low-income entrepreneurs, are examples of public policy initiatives that are removing hurdles to women-owned enterprises.22 Business can also play a proactive role in stimulating female entrepreneurship through including female entrepreneurs in their supply chain; Coca-Cola is focused on ensuring five million women entrepreneurs are part of their global supply chain by 2020 and Walmart’s ‘Empowering Women Together’ is looking to similarly leverage this growing resource base to innovate compelling products for the female consumer base.23 Incentives to encourage the integration of women-led businesses in to supply chains, or taking gender reporting data beyond just women-inmanagement to women in ‘whole of business’ could help stimulate further market access and scale opportunities for female entrepreneurs. Unlocking the full economic might of women means expanding the focus of the 80 ❙ g7germany.de

thE potEntIal EConomIC REwaRdS of EnhanCEd fEmalE paRtICIpatIon aRE SUbStantIal. global conversation to channel more focus and resources in to enabling females to be job creators, as well as job takers. Measures to level the playing field with regards to access to finance and to improve the accessibility

and applicability of vocational training programs would go a long way towards making what’s been earmarked as ‘century of the woman’ a global economic reality, and dividend.24 ■

D Cuberes and M. Teignier, 2012, Gender Gaps in the Labor Market and Aggregate Productivity, Sheffield Economic Research Paper SERP 2012017 G20 Leaders Communique, Brisbane Summit, November 2014, paragraph 9. ‘Fair Play: more equal laws to boost women’s participation, International Monetary Fund, February 2015, SDN/15/02 4 Gender Equality in Education, Employment and Entrepreneurship: Final Report to the OECD Ministerial Council Meeting, OECD, May 2012. 5 Fair Play: more equal laws to boost women’s participation’, International Monetary Fund, February 2015, SDN/15/02 6 Promoting inclusive labour markets in g20 countries: potential returns and obstacles, OECD Gender note for Australian G20, January 2014. 7 IMF, OECD, World Bank, ILO, Achieving stronger growth by promoting a more gender-balanced economy, Report for the G20 Employment and Labour Ministers Meeting, August 2014. 8 Global Entrepreneurship Monitor Report, 2012 Women’s Report, http://www.babson.edu/Academics/centers/blank-center/global-research/gem/ Documents/GEM 2012 Womens Report.pdf 9 Ibid. 10 Vandenburg, J, The Global Rise of Female Entrepreneurs, Harvard Business Review, September 4 2013. 11 Why Fund Women?, US State Department, http://www.state.gov/s/gwi/programs/womensfund/why/ 12 Strengthening Access to Finance for Women-Owned SMEs in Developing Countries, Global Partnership for Financial Inclusion, October 2011. 13 Gender and Development: Female Entrepreneurship Resource Point, WorldBank, http://web.worldbank.org/ WBSITE/EXTERNAL/TOPICS/EXTGENDER 14 Ibid. 15 Hallward-Driemeier, Mary, 2013, Enterprising Women: Expanding Opportunities in Africa, Washington: Agence Française de Développement and World Bank 16 Maria Minniti (2009), Gender Issues in Entrepreneurship, Foundations and Trends in Entrepreneurship: Vol. 5: No. 7–8, pp 497-621 17 Ibid. 18 Watkins, J.M and Watkins, D.S (1984) The Female Entrepreneur: Her Background and Determinants of Business Choice- Some British Data, International Small Business Journal, 2, No.4 21-31; ILO Report to G20 Employment Taskforce 2012. 19 Overview of Apprenticeship System and Issues, International Labour Organisation, November 2012. 20 G20-OECD-EC Conference on Quality Apprenticeships for Giving Youth a Better Start in the Labour Market, OECD, April 2014, http://www.oecd.org/els/emp/G20-OECD-EC%20Apprenticeship%20Conference_Issues%20Paper.pdf 21 Achieving stronger growth by promoting a more gender-balanced economy, OECD, IMF, World Bank and IMF Report to the G20 Labour and Employment Ministers Meeting, Sugust 2014. 22 Ibid. 23 Vandenburg, J, The Global Rise of Female Entrepreneurs, Harvard Business Review, September 4 2013; ‘Empowering Women Together’, Walmart, http://news.walmart.com/news-archive/2013/03/07/empowering-women-together 24 ‘This is the Century of the Woman’ (speech), United Nations Deputy Secretary-General, 23 September 2014 1 2 3

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Sponsored / Trans Maldivian Airways

The History of Trans Maldivian Airways The Maldives has shown that travel to even the remotest and unspoilt archipelagos on the planet is attainable. The islands’ striking beauty, combined with luxury resorts, would not be as accessible as they are if it wasn’t for a handful of daring people. They turned their passion into a service benefiting visitors, resorts and Maldivians alike.

How it started The Maldivians undertook voluntary work in order to build their own airport and in 1966 Male saw the first commercial landing. The few adventurous travelers who came to the Maldives in the following years were limited to exploring the pristine islands close to Male. The natural and untouched beauty of the islands started to appeal an increasing number of inquisitive travelers, and the first resorts opened in 1972, all within reach of boat from Male. Maldivian Air Taxi Almost ten years later, with infrastructure problems relating to the established helicopter air service, and the many resorts still only reachable by boat, the idea of faster and more convenient travel was about to be floated. Traveling to Kuredu in 1991, Lars Erik Nielsen recalls ‘The passengers were so sick on the voyage, I had to find a better way to travel!’ And he did. With his love of seaplanes and the much needed Scandinavian entrepreneurship, he started Maldivian Air Taxi. From its humble beginnings in 1993 with 84 ❙ g7germany.de

only two aircraft, the company transferred over 500,000 passengers per year. Trans Maldivian Airways The beginnings of aviation in the Maldives are to be undoubtedly attributed to Trans Maldivian Airways. TMA started in 1989 as a company operating a helicopter fleet under the name Hummingbird Island Helicopters. Eight years later the name was changed to Hummingbird Island Airways, as the first seaplane was added to the fleet. The transition to a seaplane-only fleet was completed in 1999. A year later, the name Trans Maldivian Airways name came to be, and still today represents a synonym for connecting the Maldives islands. TMA is the oldest air services operator in the Maldives and has grown to become the largest seaplane operator in the world. Lars Petré, Hussain Afeef and Mohammed Moosa, the brains and investors behind the first air services operator in the Maldives, changed not only visitors’ experience but also the country for the better. Petré believes that ‘seaplanes will remain the best way to travel

in the Maldives’. Transporting about 400,000 passengers per year, and new resorts being built, TMA has, too, become a trendsetter in the global tourism industry. What it has come to be In February 2013 Maldivian Air Taxi (MAT) and Trans Maldivian Airways (TMA) partnered with Blackstone, one of the world’s leading investment and advisory firms. A private equity fund managed by Blackstone on behalf of its private equity investors acquired a controlling interest in the two companies. The founders and majority shareholders of both MAT and TMA will continue to play a significant role in the new merged company, under the name of Trans Maldivian Airways. Mr. Lars Petré said “We have partnered with Blackstone, one of the leading private equity firms in the world, to help take our business and tourism in the Maldives to the next level. The Maldivian economy will gain from the presence of one of the world’s largest and most respected investment firms.” Mr. Lars Nielsen stated “We are extremely

Trans Maldivian Airways Some key facts: › TMA has transferred close to a million passengers annually since the merger. › TMA currently has a fleet of 46 Twin Otter Aircrafts on floats. (This includes the New 400 series of the twin otter aircraft manufactured by Viking air in Canada and one aircraft configured with the VIP seat configuration) › TMA has over 1000 staff working under the company. › TMA has close to 200 pilots out of which 50 % is consists of Maldivian Pilots. › TMA has over 20 different Nationalities of staff members working in mixed groups. › TMA has over 23 different dedicated resort lounges. › TMA services to over 60 different resort islands. › TMA has won the World’s leading Seaplane operator and the Indian Oceans leading Seaplane operator under World travel awards in 2014. › TMA has played a major role in the growth and expansion of the Tourism throughout the country by being the most reliable and convenient way of transportation provider for the tourists arriving to the Maldives. › TMA has a dedicated lounge service provided to resorts that do not have dedicated lounges and require to provide VIP services, to accommodate CIP’s etc. › TMA has dedicated VIP vehicles to cater for the requirement for accommodating VIP transfers. ■

Image: Ulrike Van Eden

FroM iTs huMble beginnings in 1993 wiTh only Two aircraFT, The coMpany TransFerred over 500,000 passengers per year. happy to partner with Blackstone in the combined enterprise. With their strong network and operational focus, Blackstone will contribute significant value to the venture. This will be beneficial to the employees and enhance their career growth. In addition, together we look forward to delivering more efficient services to the tourists coming to the Maldives and the resorts in which they are staying. This combination will increase service efficiency to our resorts.” Mr. Hussain Afeef further added “We are committed to playing a significant role in building the tourism industry in the Maldives.

Blackstone will bring to Maldives a wide global experience and an established track record in the tourism and hospitality sector. Incorporating global best practices would be beneficial, not just to the companies, but to the tourism industry in general.” Together the two airlines operate 46 seaplanes including three new DHC-6-400 series and conduct well over 100,000 flights per year making them the world’s largest Twin Otter operator on land or sea. Together the companies employ around 1000 people and service more than 60 resorts, safari boats and liveaboards and carries close to a million passengers a year.

Following link have relevant information regarding: ISO Certification: www.transmaldivian.com/iso-ohsas-certifications/ Trans Maldivian Airways Celebrates 25 Years of Service Excellence. www.transmaldivian.com/tma-celebrates25-years-of-service-excellence/ Trans Maldivian Airways Pilot Scholarship training Program: www.transmaldivian.com/pilot-scholarshipprogram-winners/ TMA has played major roles in contributing to the local community: www.transmaldivian.com/maldivianthalassaemia-society/ www.transmaldivian.com/flying-green-fund/ TMA route MAP: www.transmaldivian.com/north-of-male/ www.transmaldivian.com/south-of-male/ Social Media: www.facebook.com/transmaldivianairways www.twitter.com/TransMaldivian www.youtube.com/user/MaldivesTMA

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Feature / Benefits of G20 Authored by: Dr Robyn Stokes

The wheel of Brisbane

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Benefits of G20

Leveraging the Benefits of G20: Australia’s Innovative and GameChanging Approach Australia’s successful hosting of the 2014 G20 meeting demonstrates that major international summits can provide a unique window to showcase trade and investment opportunities, the nation’s role in regional and global supply chains, and an opportunity to forge new global partnerships.

he choice of a city or nation to host a G7 or G20 Summit recognises the political maturity, leadership, and governance of the host, but also presents a ‘once in a lifetime’ opportunity to leverage unique diplomatic and business benefits. Australia has built a long lasting legacy from its G20 Presidency in 2014. With Turkey now well advanced with its G20 meeting agenda, China looking ahead to 2016, and other G7/G20 nations waiting in the wings, this paper shares with leaders of other cities the leveraging success stories that coloured Australia’s G20. Few would dispute that Australia knows how to plan, manage, and deliver major events with impeccable precision. Mega sporting events such as the Sydney 2000 Olympics, the forthcoming GC2018 Commonwealth Games on the Gold Coast, and the ICC Cricket World Cup in 2015, plus major cultural events, conferences, and meetings, are hosted each year in Australia. The 2014 G20 Summit was no exception, with the city of Brisbane providing a uniquely colourful, friendly, and innovative Asia Pacific backdrop for a meeting that was flawlessly delivered. Brisbane stepped up with confidence but also a sense of humility when it was chosen to host the G20 Leaders Summit. Nobody underestimated the global significance, operational scale, and complex security involved in staging the event. Challenges had prevailed in other G20 cities and Australia did not rest on its laurels. The Australian and Queensland governments quickly set about planning what was dubbed as the country’s largest peacetime security plan integrating ‘state of the art’ technology with world class policing, transport, and operational intelligence to deliver a safe and secure event. Brisbane and other G20 cities in Queensland (including Cairns in the state’s tropical north that hosted a Finance Leaders and Central Bank Governors Meeting) seized the unique, two-year lead time to devise innovative strategies to turbocharge city marketing and economic development. With strong leadership from Lord Mayor Graham Quirk and the CEO of Brisbane Marketing, John Aitken, the city of Brisbane hit the ground running to capitalise on the incredible global marketing platform that the Summit brings. A fast emerging, second tier world city in Asia, Brisbane was already home to the Asia Pacific Cities Summit (and other major A-Pac cultural events) and the city already had a high profile ‘Choose Brisbane’ campaign rolling out across global markets when the G20 came to its door. › Schloss Elmau. Germany 2015 ❙ 87

The Authorised G7 Publication

Feature / Benefits of G20

ChinaTown, Brisbane

In helpInG the SummIt cIty of BrISBAne to ShApe ItS G20 leverAGInG plAnS, the Author of thIS ArtIcle revIewed the G20 ‘hIGhS And lowS’ of other cItIeS. › The announcement that Brisbane would host the Leaders’ Summit was perfectly timed. One year out from the G20, Brisbane had colourful images of G20 leaders (President Obama, Chancellor Angela Merkel, and President Xi Jing Ping) emblazoned on its ‘Choose Brisbane’ billboards in cities across Europe, Asia, and North America urging the world to visit, do business, and invest in Brisbane. The state of Queensland also responded quickly seeing a unique window to showcase trade and investment opportunities, the state’s role in regional and global supply chains, and its desire to forge new partnerships across the G20. During Australia’s G20, a panel of twenty of Queensland’s most talented business and university leaders (the Q20) came together to help fulfil these goals. In the lead-up to the Summit, an international publicity campaign in Queensland’s top 10 markets was used to tell the story of the state’s trade and investment opportunities across agriculture, resources and energy, tourism, construction, science, and innovation. The Queensland Globe (a high tech, geo-spatial, open data project) depicting the state’s resources, attractions, and trade was on display at the Leaders’ Summit and at The Cube, a highly acclaimed science and 88 ❙ g7germany.de

engineering exhibit at Brisbane University, QUT (http://www.thecube.qut.edu.au). G20 leaders and delegates from India, Indonesia, Turkey, and other nations who saw the Queensland Globe were treated to ‘multi-storey’ images and data that captured each country’s trade and investment ties with Queensland and new possibilities (http://www.tiq.qld.gov.au). The G20 Queensland Trade and Investment Summit (inspired by similar events in Mexico in 2012) also engaged global partners in robust discussions about bi-lateral trade. At this event, the critical drivers of trade with G20 nations were in focus, e.g. free trade agreements. With trade being one of the major G20 agenda items in Australia (the China Australia Free Trade Agreement followed hard on the heels of the Brisbane Summit) the locally-led summit on trade spearheaded by Andrew Tulloch, CEO of Trade and Investment Queensland, was a solid model to engage local exporters and offshore partners. During Australia’s G20, however, the real game changer was the spotlight on the role of cities in driving new waves of economic growth. Brisbane as ‘Australia’s New World City’ and Cairns as a fast-emerging tropical world city successfully tapped this phenomena. London-based city futurist, Greg Clark,

a senior fellow at the Brookings Institute, adviser to the World Bank and OECD, has published widely on leveraging major events. While there are multiple drivers of success, he asserts that events such as the G20 must accelerate and amplify the host city vision and economic development agenda, capitalise on the city’s ‘genuine’ asset base (points of difference), and engage widely with stakeholders. Engaging the private sector and a number of talented individuals (digital entrepreneurs and others) in putting together an innovative program of activity alongside the G20 is pivotal (http://thebusinessofcities. com/the-publications). Just prior to the Brisbane Summit, the tropical city of Cairns showed its own leveraging prowess in staging a Future of Tropical Economies Conference alongside the Finance Ministers and Central Bank Governors Meeting. This event put the media spotlight on Australia’s leadership (via James Cook University) of the State of the Tropics research that involves a number of leading research institutions and universities across the tropics. The G20 in 2014 was the ideal backdrop for the release of the landmark State of the Tropics report addressing one simple question: ‘is life in the tropics getting better?’ Reflecting the ‘genuine’ asset base of Australia’s far north, the Future of Tropical Economies Conference gave the city of Cairns a perfect vehicle to showcase its tropical industry and innovation hub including the region’s leadership in tropical health and medicine. With global health on the agenda at G7 and G20 and tropical health and diseases on the table for discussion in Schloss Elmau, this is an area where Australia and Queensland’s tropical north will continue to make its mark. In helping the Summit city of Brisbane to shape its G20 leveraging plans, the author of this article reviewed the G20 ‘highs and lows’ of other cities. A ‘one size fits all’ approach is far from relevant in planning an event leveraging strategy with diverse politics, leadership issues, venues and security, business and legal environments. The history of staging major events is very different in each city and former hosts, including St Petersburg, Los Cabos, Seoul, Cannes, Toronto, London, and Pittsburgh, each drew their own learnings and legacies. What was untapped, untested, and ‘waiting to be staged’ when Australia assumed the G20 Presidency was a global conversation alongside the Summit to engage the world’s best and brightest minds and deliver fresh insights on the world’s most pressing

Benefits of G20 themes—digital transformation of world economies, breakthroughs in science and innovation, and the role of cities in effecting economic growth. Taking inspiration from the cutting edge ‘world café’ model of engagement, the idea of staging a Brisbane Global Cafe was born. The Global Café was a bold and ambitious idea requiring a ‘leap of faith’ by city leaders and private sector partners to make it happen—a virtual, real and ‘disruptive’ conversation that would galvanise thought leaders and focus the eyes of the world on Brisbane. The Café immersed more than 80 international thought leaders in a social media dialogue and culminated in a fast paced, two-day event that attracted 2,300 delegates to Brisbane’s iconic City Hall. Five themes excited the involvement of visiting thought leaders from around the globe: improving human life, powering future economies, the digital age, cities of the future, and tourism’s new frontiers. A stellar cast participated, including theoretical physicist and futurist, Michio Kaku; reddit co-founder Alexis Ohanian; Asian tourism magnate Pansy Ho; Queensland’s Marita Cheng, founder and CEO of 2Mar Robotics; Dr Kathleen Pike, leader of the Global Mental Health Program; and many more. Lead-in events to the Global Café were also remarkable, with one staged in Washington, DC to showcase a “world model” for harnessing science and technology to help manage global resilience. Dr Tim Foresman, Digital Earth founder, former UN Chief Environmental Scientist, and SIBA Chair of Spatial Information at Queensland University of Technology (QUT)in Brisbane headlined this event at the Australian Embassy in Washington. A legacy of those discussions is Pivotal 2015, a global executive event held in Brisbane this year to link spatial information technology, sustainability, climate change, and governance with future prosperity. The Brisbane Global Café injected many new possibilities for Queensland’s education, science and innovation agenda. A Global Business Challenge (http://www.2015gbc.org) begun by Vice Chancellors at three Brisbane universities in 2014 is now set to provide sustainable solutions to global problems on an annual basis. This year, the Challenge will address global food security with competing teams from around the world outlining solutions to double food production by 2040. An Innovation 20 (led by Life Sciences Queensland) was also staged alongside the Brisbane Global Café and provided a further legacy from Australia’s G20. Liaisons with Turkey have seen the adoption of a similar

Global Café, Brisbane

discussion agenda on innovation in 2015 round tables and forums that are set to directly inform the G20 Leaders Communique at year’s end. Since the Global Café, Brisbane’s Digital Strategy has been boosted with the appointment of Australia’s first Chair in Digital Economy (funded by PwC) at local university, QUT. According to the city’s Chief Digital Officer, Cat Matsen, the Café has further stimulated the digital scene. “A new level of digital entrepreneurialism is fast emerging in Brisbane”, she said. “There is no doubt that the G20 and Global Café has paved the way for Brisbane’s digital entrepreneurs to tap new partnerships and digital business platforms that span cities in Asia, the U.S., and Europe”. The G20 has delivered an impressive global media legacy for Brisbane. International online media coverage alone has been valued at US$170 million (Meltwater Pulse Brisbane Marketing Report, 2015). Adding to this result, local media coverage of the Brisbane Global Café delivered exposure valued at $2 million over the two days of the event. Brisbane and its ‘new world city’ message reached an estimated audience of 18.3 billion as a result of international online media articles about the Summit and city of Brisbane. The city featured in 48,000 online articles worldwide with top publications by ad value (AVE*) being Yahoo, Mail Online, Mail on Sunday, and Xinhua News. The Brisbane Global Café became the top trending item in Australia’s ‘twitter sphere’ on its first day (with over one million Tweets over the two days of the Cafe). A partnership

between the Brisbane Global Café and Bloomberg Business Media saw a telecast of a 30-minute special program about the Summit City beamed on Bloomberg’s Asia, Indian, and UK channels. Print advertising was also used to reach readers across the Bloomberg network, the Economist, New York Times, and Monocle. Like other G20 hosts, Brisbane has also seen a marked increase in delegate numbers and new conference leads. Business tourism is a high yield sector in Australia with meeting delegates spending on average five times more than an average international visitor with many tapping into pre- and post-event tourism opportunities in Queensland. As a direct result of the G20 and the Brisbane Global Café, the city’s convention bureau has received leads with an estimated economic impact of AUD $30 million. According to Lord Mayor Graham Quirk the benefits keep coming, with a recent announcement that the World Science Festival will be held in Brisbane in 2016, making the city the first outside New York to host the prestigious event. General Manager of Conventions and Business Events, Rob Nelson says, “There is no doubt that the G20 was a game changer for Brisbane as a business events destination”. The 2014 G20 experience in Brisbane, Australia has shown that legacies from hosting the Summit and G20 outreach events are very achievable if the ‘reputational’ returns and business impacts are recognised early, and the world’s best expertise is used and succeeds in smoothly delivering the event. Just 48 hours after the Global Café— with the ink barely dry on the Brisbane Action Plan from G20—Lord Mayor Graham Quirk announced that the city would embark on a new phase of economic development. Inspired by the G20, Brisbane’s strategy for the next wave of industry innovation, business growth, and prosperity is worth watching. No doubt the city will draw on some of the best ideas aired at the Brisbane Global Café to stimulate growth and help deliver G20 growth targets agreed in 2014. ■

Dr Robyn Stokes, a business strategist and event leveraging specialist, was involved in Australia’s G20, incubating the Brisbane Global Cafe and guiding the development of a G20 leveraging plan for the state of Queensland.

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Feature / Ebola

Global Health Threats Need a Global Research and Development Solution We thought we had learnt lessons from SARS, avian influenza, and pandemic influenza; until Ebola revealed the true fragility of our capabilities. Oxford University researchers argue that a global R&D road-map is needed to identify and rectify major deficiencies in preparedness.

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ast Oxford is a long way from West Africa, but researchers based there have been working on combatting diseases that affect the region for many years. Whether trialling new vaccines, researching new treatments, or bringing together networks of researchers and health professionals worldwide, the battle against persistent killers like Malaria and outbreak diseases like Ebola is a daily fight for dozens of staff here. The seriousness of West Africa’s Ebola outbreak gave that fight additional urgency. Clinical trials were rapidly set up to test vaccines and treatments for the deadly disease. Some results offer hope for the future but the fact that such a response was necessary has shown a huge gap in global healthcare. Professor Adrian Hill is the Director of the Jenner Institute, which develops innovative vaccines against major global diseases. In his office at Oxford University’s Old Road Campus research site, he brings up a slide listing fifteen outbreak pathogens, including MERS, Lassa virus, and of course, Ebola. Then he delivers the bad news. “There are no licensed vaccines for any of these,” says Professor Hill, “And the list could be two or three times as long. We know there will be more outbreaks. There are more people, especially in Africa, living in bigger cities where transmission is easier. There is more long distance travel, allowing diseases to spread rapidly. Many viruses are lurking, and then there are going to be new viruses like SARS was when it appeared. “When this Ebola outbreak began there were very few doses available of any of the treatments and vaccines in development. So even though we could get trials running in short timescales, production couldn’t scale up as quickly.” The global response has been swift. Since October 2014, seven vaccine candidates have been trialled in humans, with four of those first tested in Oxford and another at the joint Oxford University/ Wellcome Trust/ Kenyan Government Kenya Medical Research Institute (KEMRI). Even so, Adrian Hill explains that the answer next time is not to find ways of doing the same things more quickly when the call comes; it is to get ahead of the game. “We could develop vaccines to the phase II trial stage, proved safe and with dose and regimen optimised in small groups of people, for each of these pathogens. Based on that, we can get emergency use approvals and then build stockpiles of 10,000 to 50,000 doses in affected areas.” The cost could be around £450 million

ThERE ARE mORE pEOplE, ESpEciAlly in AfRicA, living in biggER ciTiES WhERE TRAnSmiSSiOn iS EASiER.

with use of a common vaccine technology platform. But Professor Hill explains: “In an outbreak, we could rapidly deploy a vaccine, check that it works, and then scale up production. Because you have done the work on developing a manufacturing process to get those stockpiles, getting full production going is much more straightforward.” Elsewhere in the building, Professor Peter Horby, who leads the Epidemic Diseases Research Group Oxford (ERGO), has been working on trials of possible Ebola treatments. The situation was similar: very few candidate therapies, little safety or efficacy data, and insufficient numbers of treatment courses. The lessons from vaccines and therapeutics for Ebola are replicated across many other areas. These include our understanding of how outbreaks occur and spread, how the diseases develop and progress in the body, the effects of supportive clinical care and public health interventions, and understanding the impact of different human behaviour and customs. “We should identify all the major gaps and bottlenecks in the Ebola response, and replicate that process across a range of potentially dangerous infections”, says Professor Horby. “The skills and technologies to do this exist, but the key is to do it in a systematic and integrated way, and then to share the burden of rectifying the deficiencies.

“The process should be used as a mechanism to build capacity in countries that are most vulnerable, by matching and twinning R&D projects based on a technology transfer model.” He also believes that research must be embedded as a core part of the emergency response. While hard-pressed staff in medical facilities and health ministries understandably focus on managing the immediate issue, ignoring research means that we are never better prepared to meet the next threat. In January, Jim Yong Kim, President of the World Bank Group, said: “All countries should make investing in pandemic preparedness a top priority for 2015.” The economic and social impact of the Ebola outbreak has been severe: more than 11,000 deaths to date1 and an expected economic impact this year totalling $1.6 billion, or more than 12 percent of GDP2 in the three most affected countries, and further billions spent on the global emergency response. Oxford University’s experts know that if the world is to avoid such devastating impacts in future, a coordinated global effort to get ahead of the next outbreak is vital. ■ 1 2

Figures from www.who.int/ebola/ Figures from www.worldbank.org/en/topic/ebola

For more information www.tropicalmedicine.ox.ac.uk www.jenner.ac.uk

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Feature / Angela Merkel

Speech by Germany Federal Chancellor Angela Merkel at the G7 Dialogue Forum with Trade Union Representatives. March 23, 2015

Mr Hoffmann Ms Burrow Representatives of the international trade union associations and of the trade unions in the G7 countries.

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Ladies and gentlemen,

llow me also to bid you very welcome here in Berlin. I hope you have a chance, alongside your working itinerary, to gain a good impression of Germany’s capital city. This dialogue forum with you, the trade unions, is the first in a run of discussions with organisations outwith government. We’re talking first to the trade unions and then—though not in this order—to the business community, young people, academics and environmental associations. And after the G7 summit in autumn, we’re going to hold a women’s conference dealing with autonomy and vocational training for women. Our topic today is good work around the world. Why are we talking about that in the G7 context? Mr Hoffmann just gave lots of good reasons, and I want to add one of my own. It’s because good work is one of the key conditions of economic success. People often lose sight of that. Economic success and growth depend on the availability of work that is secure and good—and I mean good work in both senses: high quality products and services and jobs with good working conditions. Those two things go hand in hand. That’s what social market economy means to us in Germany. It’s not something we’ve invented to put on the G7 Summit agenda; the Federal Republic of Germany’s success throughout its history has been built on those ideas. It’s not enough, of course, only to pay attention to good work in industrialised countries. Value chains can be global these days, so we cannot pretend that working conditions in the countries we buy supplies from have nothing to do with us. We reap the benefits of globalisation and an international division of labour, so we ought to know how that division of labour actually functions. We have therefore proposed to our partners in the G7 that our Summit at Schloss Elmau in Bavaria this June should ›

Angela Merkel

Our tOpic tOday is gOOd wOrk arOund the wOrld. why are we talking abOut that in the g7 cOntext?

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Feature / Angela Merkel › include discussion of fair working conditions. This is a topic that naturally draws the attention of trade unions. Thanks to your expertise—let me make this explicit— makes you a vital source of information for us, and a source of ideas too. We won’t be able to realise all the ideas you think of, but knowledge and know‑how are nonetheless extremely important to us. I am therefore very glad to have this opportunity to speak here today and to discuss things with you later on—including the paper you have presented to me. You have not contented yourselves with a positive assessment of the subject matter but have made some very specific proposals which look likely to resonate far beyond the scope of Germany’s G7 Presidency. We will be trying to keep this topic on the agenda of subsequent Presidencies, though I feel it may prove to be a long slog. Fair working conditions—it’s a subject that cannot and should not be confined to the remit of individual states. An estimated 80 percent of trade involves international supply and value chains. Interestingly, more and more people in the G7 countries are not basing their purchasing decisions on price alone but are interested in sustainable and socially responsible production and processing. There are therefore economic reasons too for investors and traders to ask what conditions are like at the various stages of a supply chain. The answers they get must be full and truthful. We will only be able to improve things if we know exactly what the situation is—and in some areas today, that situation turns out to be quite shocking. Innumerable people are suffering greatly from environmental and air pollution in many industrial areas around the world. Roughly every 15 seconds, someone dies from an accident at work or a disease caused by their job. Next to the enormous human tragedy that each one of those deaths means, there are massive economic damages too. You have to wonder—I do wonder—whether we have to wait until something dramatic happens, like the collapse of the Rana Plaza factory building in Bangladesh, before reasonable working conditions are finally given a higher priority. Clearly, there is still far too little incentive to avoid such situations. One and a half weeks ago, I hosted a meeting with the leaders of international economic and financial organisations in Berlin, as I do once a year: the World Bank, the IMF, the OECD, the WTO and the ILO. I believe that my annual invitation helped ensure those organisations also participate 94 ❙ g7germany.de

in the G20 Summit, which is very important. It was not at first self‑evident that the ILO should take part, but since they all in a sense go together, they got that sorted together too. At that most recent meeting with the international organisations, we also spoke about labour standards. We were agreed that good work is a key component of sustainable growth around the world. Companies based in G7 countries should scrutinise their supply chains to check that guidelines, including occupational health and safety guidelines, are being upheld. The G7 countries should work together towards that goal. One aspect of this is to talk to large firms which operate internationally. The other is to decide how we deal with small and medium‑sized enterprises. They need to be supported in upholding the standards and rules that are in place. I find three points here particularly important: transparency, prevention and the possibility of voicing complaints. To start with the first, greater transparency. In future, large corporations are to report more fully on corporate social responsibility. The EU has passed a directive to that effect. The directive proposes that certain companies make declarations about their environmental protection and their commitment to the welfare of their employees. This applies to large enterprises. The guidelines from Brussels now need to be translated into practice, and we’re in the process of doing that here in Germany. However, we do also need to find a sensible way of avoiding too much red tape while not losing sight of the essential objective. Greater transparency is also ensured by online services, such as those enabling consumers to compare ecolabels and welfare‑standards certificates. The need is

acute, given just how many of these there are. The German Government has set up a website called “Siegelklarheit” which examines common certification marks from the textile industry and assesses their quality, as we can’t just make do with all those different assertions. We intend to gradually expand our online services, adding one group of products after another. Greater transparency helps consumers make informed purchasing decisions. Indian Nobel Peace Price winner Kailash Satyarthi put his finger on the essential point when he called transparency the key to fair supply chains. Transparency serves both to advertise positive examples and to drag negative examples out into the light, which should prove less of a boost to sales. This can generate incentives to create good working conditions even in those place where things are still very bad. Of course, it’s always better to counteract risks in the first place, before they result in industrial accidents and diseases. This brings me to my second point, the importance of prevention. Relevant factors here are, for example, training for inspectors and the establishment of on‑site fire services. The development of accident insurance is also crucial. What’s clear though is that we need to collaborate with partner states and companies in order to establish a long‑term safety architecture. And that won’t just take good will, of course—it’s a question of money too. Hence our idea for a prevention fund. Such a fund could be sourced from the budgets of large enterprises. I will say, however, that the whole discussion is still at a very early stage. The idea has not been met with enthusiasm in every quarter. The aim has to be to reduce industrial accidents as much as possible. That’s what we intend to work towards with our partners in the G7. We also want to continue working on the topic in the G20. We are very glad that the Turkish G20 Presidency has set itself the goal of advancing occupational health and safety this year. Nonetheless, experience has shown that, however much we do in the interests of transparency and prevention, there will always be companies which ignore agreements and break the rules. And so wwe come to my third point: the vital importance of structures which make it easier for employees to voice complaints and stand up for their rights—and without having to risk losing their jobs as a result. We have to keep that in mind at all times. One possible solution is to have companies set up their own points of contact

Angela Merkel for complaints. Access to them should be as unhindered as possible. And of course this shouldn’t be allowed to erode the rights of any trade unions active in a particular enterprise. On the contrary, global framework agreements between trade unions and businesses, covering the entire supply chain, would seem to be a possibility. We might consider that option. I’m not trying to get other people to do my job for me; I just mean that’s also something we could think about. Alongside companies’ own initiatives and agreements between labour and business, there are the National Contact Points. These are maintained by each state which considers itself bound by the OECD Guidelines for Multinational Enterprises. One of the things those National Contact Points do is to follow up complaints in order to mediate between the affected individuals and companies. In our international relations too, we could insist on adherence to those OECD Guidelines as part of our development aid agreements. I believe we could still exert more pressure there in our day‑to‑day work. The G7 countries should take a leading role in that regard and scrutinise their National Contact Points to establish what has and what hasn’t proved worthwhile. We should also talk in this context about what the consequences should be when companies refuse to participate in mediation proceedings. I believe if we G7 countries really took on a leading role here, it would help us be able to say that the G7 shoulders global responsibility. When the leading industrialised nations agree on something, when we act in concert, we do in a way set standards which others around the world can’t easily avoid. This is very important, not least with regard to the transition from G7 to G20. That’s why we will be reporting on your meeting here and on what you are calling for at the sherpa meetings between now and the G7 Summit— this will make the demands we make of our G7 partners look practically easy, which might help us get a few steps forwards. Ladies and gentlemen, it is important not to leave any globally significant subject out of the G7 process. The topic we are discussing today is vital, but you talk about other things too, such as pay, job creation and much more. I want to use this opportunity to give you a quick outline of our other topics too. Next to the state of the global economy, which is always on the G7’s agenda, Ukraine and other foreign‑policy matters will in all probability also play a role. Sadly, we found ourselves forced to turn the previous G8 format into the G7 format in view of the

annexation of Crimea. We will talk about dismantling trade barriers and other obstacles to trade. I completely agree with you: free‑trade agreements must not guarantee free trade alone but must, fundamentally, also uphold standards of welfare and consumer protection. I believe a free‑trade agreement with the United States of America could set very high standards for other agreements to follow. Here we have two negotiating partners, after all, one of them, the EU, already in possession of really high standards and the other, the U.S., symbolising a major proportion of the world market. We could thus play the role of pioneers. Our agenda also covers such topics as protecting the environment and consumer protection, to name but two. This year the G7 will be endeavouring to contribute to two international processes. Firstly, we will be supporting the UN conference being held in autumn to take the Millennium Development Goals to the next stage. It would be useful if the G7 countries came to it with a shared stance. Secondly, the Climate Conference will be taking place in Paris at the end of the year. The G7 also wants to support the French Government, which is organising that conference. We know that a lot depends on whether we establish an international agreement for an ambitious climate regime— particularly considering the levels of poverty in Africa and people’s standards of living there. During Germany’s G7 Presidency, we want to ensure that the industrialised countries assume a leading role in the development of a more low‑carbon and resource‑efficient economy, advance the relevant innovations and technologies and make sure the funding is in place for adapting to the effects of climate change. We pledged in Copenhagen that 100 billion dollars would be available by 2020—but we’re still a long way from fulfilling that pledge. We will also be keeping up with the UN process of establishing the post‑2015 agenda for sustainable development. We’ve planned a number of topics that we feel could be helpful here: protection of the marine environment, resource efficiency, resistance to antibiotics and the fight against diseases. We particularly need to ask ourselves what we have actually learned from the Ebola epidemic. We will be collaborating closely with the World Bank and the World Health Organization. Furthermore, as I have mentioned, we will be looking at education and vocational prospects for women. On the topic of health, I would just like to point out that we have, alongside Ghana and Norway, submitted a proposal to the UN

the aim has tO be tO reduce industrial accidents as much as pOssible. that’s what we intend tO wOrk tOwards with Our partners in the g7. Secretary‑General on how we might set up a panel to ask what lessons we have learned from the Ebola outbreak. I don’t think we are really aware yet just how quickly epidemics can develop these days in view of our dense global network of ties. As an epidemic, Ebola actually spread relatively slowly. The international community is not ready for such crises. This is the context for our discussion of supply chains. I think it’ll fit in nicely, because it’s a subject that’s connected to all sorts of social issues, including the protection of health and environmental matters. Let me thank you once again for dedicating so much time and attention to this topic. As I’m sure you’re aware, two members of our Federal Government, Social Affairs Minister Nahles and the Development Minister, have dealt with and discussed the subject in a major conference. We will endeavour to feed the outcomes of that conference into the negotiating process too. It is handy that we still have a bit of time before the G7 Summit in June; it should allow us to make progress on some of the concerns. Thank you very much—and now, I look forward to the discussion! ■

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Feature / Future Jobs Authored by: Oscar Montealegre

High Skill Jobs: The Wave of the Future Up to 2 billion jobs will disappear by 2030, and many of our childrenâ&#x20AC;&#x2122;s jobs have not even been invented yet. Is a jobless future upon us? Definitely not.

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or many, the idealization of the 9 to 5 workday job is on course to becoming an endangered concept, or quite possibly, extinct. Along those lines, the current narrative on the future of employment is based on the anxiety that permanent jobs will vanish to machines and technology. Is a jobless future upon us? Some economists, analysts, pundits and academics would argue the groundwork has already been laid in that direction. In a 2014 op-ed, former U.S. Secretary of the Treasury Lawrence H. Summers argued that the problem will not be producing enough, but instead producing enough work, i.e. jobs. Futurist Thomas Frey predicts that no less than 2 billion jobs will disappear by 2030— a future only 15 years away! Academic and entrepreneur Vivek Wadwha paints a not so rosy picture in a Washington Post column where he foresees there will not be much work in the future for human beings; instead robots will be replacing manufacturing workers, farms, pharmacists, taxi drivers, and even grocery clerks. The focal point for both the private and public sphere of tomorrow’s future is the same as today, as it was in the 2008 Great Recession, and as it was in the 1930s Great Depression: employment and the wherewithal to determine where future job growth will stem from. As much as governments want to assist in job creation, a la the 1930s New Deal, they are not able to keep up with the advances of technology. In addition, especially in the U.S., the problems of government-run organizations go way beyond job creation. For example, the United States Postal Service is on the brink of bankruptcy, struggling to combat the growth of UPS and Federal Express, and that does not even include the possibility of delivery services being executed by drones in the future. Besides the purpose of government is to serve the best interests of citizens, not to be burdened in creating jobs—how well that worked was demonstrated with the Soviet Union and other controlled economies. Moreover, U.S. local, state, and federal agencies are downsizing instead of hiring due to being overly in debt. There is currently more than $50 billion public employee pension debt with more than 500 municipalities with underfunded retirement plans. Governments and their accompanying ›

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Feature / Future Jobs

A fAlse DreAm In beIng chUrneD throUgh AmerIcAn UnIversItIes: A gUArAntee of UpwArD socIAl mobIlIty.

› agencies are looking for ways to increase their revenues through taxation to have a shot of balancing their budgets and chipping away at the enormous deficits; generating jobs, for better or worse, may be an issue that government(s) are concerned about, but they do not have the tools or resources to make an impact on the challenges of future job growth. To the chagrin of many public employees, Reagan’s infamous assessment of government systems still resonates today when he quipped, “the nine most terrifying words in the English language are: I’m from the government and I’m here to help.” Jobs will come from where we least expect them. A 2013 paper by the University of Oxford contended that jobs are currently at a high risk of being automated, and 47 percent of occupational categories will be fully optimized via automation, including technical writing, legal work, accountancy, real estate, and other white-collar professions. But on other hand, history has always demonstrated throughout the past centuries that many jobs eventually become obsolete due to technological advancement, yet least expected professions surface out of necessity, market forces, adaptation, disruption, and individual ingenuity. For instance, advances in technology will allow the ability for individuals to generate their own livelihoods through entrepreneurship. We are already experiencing the advent of a ‘sharing’ economy with Airbnb, Lyft, Lending Club, and thousands of more enterprises. Also, technology has lifted more informal economies in Africa and Latin America into formal levels, enabling entrepreneurs to grow, hire, and scale their 98 ❙ g7germany.de

businesses. We are going to become a workforce where we create our own professions, and become experts in our fields, similar to artisans that existed before the Industrial Revolution—only this time technology and the internet will allow us to expand our markets and trade with others locally, as well as internationally. Second, jobs will appear in the future that currently do not exist. We only have to look at big data, virtual reality, voice recognition, biological and molecular engineering, and artificial intelligence to get a visual of where the new jobs will be. Jobs will adjust to the new individual that does not aspire to nor desire a traditional version of employment, one that entails economic and social safety nets, benefits, training, pensions systems, and ultimately retirement. Individuals will be trained and educated with a plethora of skills that will be easily transferable across a range of industries, enabling an environment of ‘do-it-yourself-ers’ and an economy that is less dependent on big corporations, allowing space for more smaller to mid-size enterprises. One caveat though: economies need to be cautious that they do no leave low skill workers behind. This is where government intervention may be welcomed, in setting the outline of what higher education must do to train and educate the new workforce. In the U.S., the economy is gradually —albeit somewhat slowly, frustrating to many—growing compared to other developed countries such as the European Union. Job growth ticked upward in the last year, where unemployment reached a much more reasonable 5.5 percent, compared to 2008’s

11.8 percent. However, business leaders and human resources executives point out that unemployment would be lower if there were not a mismatch of skills desired by companies and the skills possessed by the current labor pool. Technology and robotics will remove jobs that are labor-focused, and as a result, jobs of the future will require more education and technological training. However, too many universities are not taking a proactive approach in training students for the new wave of jobs; in fact, students are often getting a higher education in skills that may no longer be needed. A false dream in being churned through American universities: a guarantee of upward social mobility. No longer should individuals should think that only one road—a university degree—exists to secure stable employment. The Economist in April 2015 published an article showing that an American bachelor’s degree still yields a 15 percent return on investment in the U.S., however in terms of equity the outcome is grim. Graduation rates between the rich and poor are widening at a rapid rate in the last decade or so, creating a situation where university degrees are more accessible for the “haves” and not the “have-nots.” Universities, governments and the private sector can without a doubt strengthen their partnership and set an agenda where more affordable options are created in terms of education, avoiding creating a society where people that lack a university degree forfeit a life of dignity and hover slightly above and below the poverty threshold. Most importantly, economies are and will always be dependent on human capital. Regardless of how advanced we become technologically and the quantities of robots that will replace low skilled jobs, the market cannot function without people making complex and emotional decisions of buying, selling, negotiating, setting strategy and growth, downsizing, merging, acquiring, etc. People can live without the machines, but machines cannot live without the people. So is a jobless future upon us? Definitely not. Economies and employment are changing at a radical pace, but humans tend to adapt to the new ‘normal’. People will want and expect different things from the concept of jobs, therefore jobs will adjust to people’s needs and wants, with a different structure that is more fluid and less rigid than the 9 to 5 norm. New technologies and robotics will remove jobs that are labor intensive, but technology and robotics will create more jobs that will require more education and training— a much better outcome than the doomsayers imagine. ■

BUSINESS MATTERS.

Chairman: Marcus Wallenberg Chairman and CEO, SEB (Sweden)

www.iccwbo.org/G20 Aâ&#x20AC;&#x2122;amal Group Australia New Zealand Bank Bayer Bridas Corporation CinĂŠpolis Corporacion America Corrs Chambers Westgart Daesungh Danfoss Group Deep Roots Capital Doha Insurance

Union of Chambers and Commodity Exchanges of Turkey Eskom Holdings Fung Group GDF Suez Great Eastern Energy Hanwha Ilthabi Rekatama Infosys McGraw Hill Financial MK Sanghi Group

The Dow Chemical Company

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Comprising business leaders and CEOs from major global corporations, the ICC G20 Advisory Group effectively targets G20 policy development on a worldwide scale. The group has proven itself to be an enduring, legitimate voice of international business, gaining recognition by G20 governments as the primary source of business expertise on the global policy agenda.

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