The Official G20 Leaders Summit Global Briefing Report Brisbane Australia by The Group of Nations

The Queensland Governmentâ&#x20AC;&#x2122;s official G20 publication

Queensland,

The Economic Powerhouse

Beyond G20

For G20 Nations and Future Generations

Let’s Turn the Lights On for Billions Imagine if we could flip a switch to give the gift of modern energy to every child for learning and living. Imagine if we could turn on the lights for generations awakening each day with no electricity. Imagine the possibilities for half the world’s population if we bring energy into their lives. Today, some 3.5 billion people lack adequate access to electricity. Citizens from around the world are asking G20 leaders to take meaningful actions that turn the lights on. We need all forms of energy to tackle this crisis… and especially coal. With advanced coal technologies we can continue to improve emissions while providing abundant, low-cost energy that affords people everywhere a better quality of life. We can do so much more to create energy access for all. Together, let’s light up the lives of billions. To learn more, visit AdvancedEnergyforLife.com. Follow us on Twitter @AdvancedEnergy, hashtag #LightsOnProject.

Australia’s G20 presidency

The Hon Tony Abbott MP Prime Minister of Australia

It is an honour for Australia to host the G20 in 2014. It is an important opportunity and a major responsibility. Our Presidency comes at a time when global economic growth is too low and unemployment too high. This is preventing people from reaching their full potential. So why is the G20 important? It comes down to a simple idea: the world’s major governments can do more economic good for our citizens when we work together. That is what the G20 Leaders Summit is about. The G20 has proved itself in difficult times. It helped prevent an economic collapse following the global

financial crisis. The main problem we must now solve is how to strengthen economic growth and employment, to create opportunities for our people. That is our common challenge. The best way to do this is by empowering the private sector. To have strong economies, we need business to invest, build the infrastructure of the future and trade with the rest of the world. We must also implement the G20’s financial reforms to ensure our economies are more resilient to future economic shocks. The challenge for the G20 this year will be to make concrete decisions and take real steps that will improve people’s lives through stronger growth, more jobs and better

The challenge for The g20 This year will be To make concreTe decisions and Take real sTeps ThaT will improve people’s lives Through sTronger growTh, more jobs and beTTer infrasTrucTure. 06 ❙ G20 Leaders’ 2014

infrastructure. As the chair of the G20 in 2014, I will ask world leaders to come to Brisbane with a commitment to take practical action. It means developed and emerging economies working together. And it means partnership between governments, private enterprise and the community. I look forward to hosting world leaders in the beautiful riverside city of Brisbane in November 2014. The G20 will be the most important meeting of world leaders Australia has ever hosted. I want it to make a lasting difference. The Hon Tony Abbott MP Prime Minister of Australia

KNOWLEDGE LEADERSHIP FOR A BETTER WORLD

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Welcome to Queensland

Campbell Newman MP Premier of Queensland

It has been an exciting time in Queensland planning for the 2014 G20 Leaders’ Summit. Our state is known across the world for its beautiful weather, stunning beaches, pristine rainforest, and of course the Great Barrier Reef. Queensland is also Australia’s economic powerhouse, leading the nation in job creation with economic growth forecast at 6 per cent in 2015-16. So it makes sense to hold the summit here in our wonderful State and host the world’s leaders as they discuss future investment and trade. Being chosen as the host state of the 2014 G20 Leaders’ Summit is a massive vote of confidence in Brisbane and Queensland—only eight other cities have hosted the event in its current format. Brisbane’s Convention and Exhibition Centre is first-rate, the host venue of the

summit, and we have a growing reputation for attracting, planning and staging world-class events. Along with the leaders, around 4000 delegates and 2000 media will come to Queensland for the summit. This will be a chance to showcase our State to the world and highlight the many business and tourism opportunities that are available here. The Queensland Government has been working hard to grow the economy based around the four pillars of tourism, agriculture, resources and construction. We are also focused on promoting Queensland as an education and science and innovation hub. Much has already been accomplished and the G20 summit will allow us to build on the solid foundation that has been set, and cement Queensland’s place as Australia’s

Being chosen as the host state of the 2014 g20 Leaders’ summit is a massive vote of confidence in BrisBane and QueensLand– onLy eight other cities have hosted the event in its current format. 08 ❙ G20 Leaders’ 2014

gateway to the Asia-Pacific region. The economic benefits of the G20 are estimated to be around $100 million to Brisbane alone. We expect an increase in trade for local shops, restaurants, hotels and venues. Just before the summit begins though, Queenslanders and tourists alike will have their chance to get involved with a free three week cultural celebration happening in Brisbane, both in the city and the suburbs. We are committed to making the summit a great success and a great experience for everyone. The Queensland Government welcomes the world to Queensland, a state with endless opportunities.

Campbell Newman MP Premier of Queensland

Contents & Contributors

November 2014

Focus: Queensland

Masthead

20 / Brisbane: Australia’s New World City CATCOMPANYInc

24 / UQ Advanced Water Management Centre: Innovative approaches to urban water management

The Queensland Government’s official G20 publication Beyond G20: Queensland, the economic powerhouse

32 / Financing growth & infrastructure in Australasia 38 / Tourism and major events: New frontiers in Queensland

Queensland,

The Economic Powerhouse

Beyond G20

46 / Trade, investment and economic growth: Queensland beyond G20 52 / Queensland Globe for G20: A spectacular Queensland project leading the way with open data

01_G20 Cover.indd 1

56 / Open innovation: The challenges for industries and universities By Dr. Peter W. Beven

07/11/2014 06:42

Publisher: Chris Atkins Editor-in-Chief: Chrisella Herzog csherzog@jabirpublications.com

60 / Queensland science breakthroughs and world firsts 64 / Global supply chains: Australia’s role and Queensland’s future connectivity

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

66 / Building a strong future: Queensland construction 68 / Energy and resources to power growth 70 / Food biosecurity and agriculture: Queensland, Australia, and the G20

Welcome: Hon Tony Abbott MP Prime Minister of Australia

72 / Development and future of tropical economies: Queensland paves the way By Professor Sandra Harding

Campbell Newman MP Premier of Queensland

Terry McGraw Chairman of the International Chamber of Commerce

Focus: G20 04 / Human wealth must be our priority By Dr. Merza Hasan, Dean of the Board - The World Bank 90 / G2O business engagement: The challenge for 2014 92 / Expanding G20 horizons through youth engagement 100 / Creating legal frameworks to encourage investment in IT security and informational privacy By Hayden Delaney 112 / The growing nexus between the public and private sectors By Daniel Woker 114 / The G20 and global governance: Early successes, later lessons By Wesley Widmaier 116 / Strategies for sustainable job creation By Professor Fabrizio Carmignani 118 / WTO and WIPO dispute settlement systems: Success stories By Richard Rousseau Stories 10 / Global Coalition for Efficient Logistics

43 / Economic Development City of Gold Coast

28 / WaterAid.org

50 / Springfields Land Corp

16 / Peabody: Exclusive Interview Greg Boyce, Chairman, Chief Executive Officer Peabody Energy

54 /

Queensland University of Technology

76 / James Cook University 80 / University of Queensland 84 / Griffith University 108 / Schneider Electric 124 / Imirus 131 / Go Turkey 133 / Invest in Turkey

14 ❙ G20 Leaders’ 2014

ICC INTRODUCTION:

Publishing Firm: The CAT Company, Inc. Chris Atkins, President

Greg Boyce, Chairman, Chief Executive Officer Peabody Energy

Advertisers Index 02 07 09 15 23 27 31 34 41 42 44 49 59 63 75 78 82 86 89 93 94 96 98 103 104 106 110 111 113 120 122 126 128 129 130 135 136

Peabody Energy University of Queensland Queensland Tourism Griffith University ARUP Waterland Invest Australia Waterland Invest Australia KPMG Queensland Tourism Queensland Tourism Economic Development City of Gold Coast Springfield Land Corp Queensland University of Technology Fergies Print and Mail United Airlines Logan City Council Danfoss University of Tasmania ICC G20 Advisory Group Ettinger Celebrity Cruises Heifer International IE Business School DSX Access Systems RCCL Philippine Airlines Schneider Electric WCF Denon Alila Hotels Imirus Waters Corp Bondurant School of Driving ENZED Go Turkey Turkey Invest Peabody Energy

President of Sales: Mike Nyborg Director EMEA: Tryrone Eastman Sales Executives: Tony Royle, Phil Cook, Antony Leigh Jones Special thanks: Editorial strategy and consulting by: Jabir Publications

Disclaimer: The information presented in this document is distributed by the Queensland Government as an information source only. The State of Queensland makes no statements, representations, or warranties about the accuracy or completeness of, and you should not rely on, any information contained in this publication. The Queensland Government disclaims all responsibility and all liability (including without limitation, liability in negligence) for all expenses, losses, damages and cost you might incur as a result of the information being inaccurate or incomplete in any way, and for any reason. Any reference to any specific organisation, product, or service does not constitute or imply its endorsement or recommendation by the State of Queensland.

Tomorrow’s leaders are made here. It takes a certain kind of leader to navigate the path to a stronger, more sustainable economic future. As the number one university in Queensland for political science, home to world-class research centres including the Centre for Governance and Public Policy and the Griffith Asia Institute, our Graduate Certificate in Policy Analysis graduates are at the frontline of contemporary political discourse. It’s an ever-changing political and economic landscape. As the leaders of the day gather to shape global strategies for tomorrow, Griffith University is grooming the corporate and political power players of the future.

Joshua Creamer Griffith law graduate Barrister-at-law

Georgia Sands Griffith law and languages student President, Australia China Youth Association

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Cameron McEvoy Griffith science student Commonwealth Games gold medallist

Brittany Laidlaw Griffith business graduate Prime Minister’s Endeavour Award winner

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Find out more at griffith.edu.au/g20-summit

Story / Peabody Energy

An Interview with Gregory H. Boyce

Chairman and Chief Executive Officer, Peabody Energy “Energy is central to sustainable development and poverty reduction efforts… None of the Millennium Development Goals can be met without major improvement in the quality and quantity of energy services in developing countries.” United Nations Development Programme

eabody Energy Chairman and Chief Executive Officer Gregory H. Boyce is an industry leader and outspoken advocate for alleviating energy inequality in developing and developed nations. At a time when the United Nations is calling to reduce global poverty by half by 2015 and emerging nations continue a rapid march toward urbanization, Boyce is calling on global leaders to focus on twin energy challenges: Creating low-cost energy access to satisfy long-term energy demand and addressing the immediate needs of the world’s energy impoverished. All forms of energy will be vital to meet this demand, and 21st century coal represents a major part of the solution. About Greg Boyce Greg Boyce leads Peabody at a time when coal is the world’s fastest-growing major fuel, set to surpass oil as the world’s largest energy source in coming years. Boyce joined Peabody Energy in 2003 as President and Chief Operating Officer, assumed responsibility for the company as President and CEO in 2006, and became Chairman the following year.

Greg Boyce

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Boyce’s industry leadership positions include Chairman of the Coal Industry Advisory Board of the International Energy Agency and former Chairman of the National Mining Association. He serves on the Board of Directors of the U.S.-China Business Council, and is a member of The Business Council, Business Roundtable and the National Coal Council. Tell us about Peabody Energy’s work. Peabody Energy is the world’s largest private-sector coal company and a leader in sustainable mining, energy access, and clean coal solutions. We participate in all major global coal markets and ship about 500 tons of coal each minute to customers in more than 25 countries, representing the vast majority of G20 nations. Over the past decade, Peabody has sculpted its portfolio to achieve a leading position in high-growth, low-cost U.S. basins as we developed a larger presence to serve Asia Pacific markets. Over the last decade, we completed three major acquisitions in Australia, increased our investments in the Powder River and Illinois Basins in the U.S., expanded our trading platform and entered North Asia. These investments have resulted in a world-class,

well-capitalized global platform with tier-one assets. You have called energy poverty “the number one human and environmental crisis the world faces” globally. Why is energy poverty such a serious issue? Energy is essential for people and economies to thrive. It enables us to live longer and better and is directly correlated with improvement in the U.N. Human Development Index, a tool for measuring progress based on life expectancy, educational attainment and income. Yet as we near the 2015 U.N. Millennium goal deadline to reduce extreme global poverty by half, the effects of energy poverty remain widespread. As many as 3.5 billion people lack proper energy for daily needs, and 1.2 billion are children. The effects of energy poverty are dire, and the human suffering extends to vaccines that aren’t kept cold, hospitals that lack proper electricity, food that spoils from lack of refrigeration, water that isn’t purified, and inadequate sanitation. Billions in South Asia and Sub-Saharan Africa spend their days foraging for wood or biomass for fuel to cook meals or heat dwellings. Household air pollution from indoor fires is estimated to be the fourth-leading cause of death in the world. Over 4 million people die each year from the effects of indoor smoke. World leaders have the responsibility to create the right policies and actions to extend energy access to all people everywhere. The responsibility falls on each one of us and on each source of fuel: We’ll need more wind, more solar, more gas, more nuclear, and more

Story / Peabody Energy coal, and we must recognize the strengths and limitations of each fuel. With energy, we can do almost anything. Without energy, the world is consigned to short, difficult lives. Quite simply: energy is life, and coal is energy. What is your vision for coal’s role in providing energy access to developed and developing nations? Here is the energy landscape we face in the next 15 years: the world population is forecast to exceed 8.3 billion people. Electricity generation is expected to be up 69 percent, world steel output would be up 70 percent and global GDP would nearly double to more than A$124 trillion. And an unprecedented 75 million people will be added to cities each year, which means much greater use of appliances, electronics and other energyintensive devices. All of this movement is underpinned by the need for massive

infrastructure development programs to build expressways, railways, hospitals, schools, airports and housing. These services will require large amounts of thermal coal for electricity and metallurgical coal for steel production. The result of this growth is that coal demand is expected to grow nearly 50 percent over the same period, as coal continues to fuel more electricity than any other fuel. This decade alone, over 800 generating units have come on line representing 350 gigawatts of new coal-fueled generation. This development covers 30 countries and spans the globe. That’s enough capacity to support more than 850 million people. And forecasts project we will see similar growth over the next five years. I would also add that these plants offer access to low-cost electricity and offer valuable energy security: a benefit that is insecure if others control your energy supplies.

How will technology play a role in ensuring a sustainable energy future? As the developing world urbanizes and aspires to the same quality of life enjoyed by developed nations, coal will be vital to this effort. Twenty-first century coal is the primary fuel with the abundance, low-cost and scale capable of meeting the world’s growing energy demand. Coal fuels more than 40 percent of the world’s electricity, which is far more than any other source. Coal also delivers the lowest-cost power of any major fuel source. It is reliable, too, serving as a buffer to volatile natural gas prices, spikes in the cost of oil, and the intermittency of renewables. The term “21st century coal” was introduced by the governments of China and the United States in 2009 in the context of an international partnership to advance long-term clean energy solutions from coal. It describes today’s high-efficiency ›

The GreenGen power plant and carbon research center in Tianjin is China’s signature climate project and began generating commercial power in 2012. At full build it may be among the world’s largest near-zero emissions coal plants. Peabody is GreenGen’s only non-Chinese equity partner.

Brisbane. Australia 2014 ❙ 17

Story / Peabody core issues has increased dramatically when compared to pre- and post-campaign launch. As part of the campaign we initiated the “Lights On Project,” an online movement urging G20 leaders to advance policies to alleviate energy poverty. Nearly half a million advocates from all G20 member nations have joined our campaign. This further illustrates the growing global awareness of energy inequality and the need to take real, meaningful action to end this crisis.

The “Lights On Campaign” is an online movement to encourage G20 leaders to support policies and actions to alleviate energy poverty.

With ENErGy, WE caN Do alMost aNythiNG. Without ENErGy, thE WorlD is coNsiGNED to short, Difficult livEs. QuitE siMply: ENErGy is lifE, aND coal is ENErGy. › supercritical technology as well as the collection of technologies that reduce key power plant emissions of sulfur dioxide, nitrogen oxides, particulates, and mercury. These technologies are highly efficient and deliver major environmental improvements. In the United States, for example, coal used for electricity has increased more than 170 percent since 1970, as GDP more than doubled and the key emissions rate per megawatt hour decreased 90 percent. Worldwide, there are more than 600 gigawatts of supercritical plants in operation or under construction. China leads this effort, representing more than half of the world’s advanced coal fleet. A single, large coal plant, if built with the best-available technology, can reduce carbon dioxide (CO2) emissions by the annual equivalent of taking a million cars off the road. Projects and partnerships also are progressing around the world to advance next-generation technologies. For example, the GreenGen power plant and carbon research center in Tianjin commissioned its first 250 megawatt unit in 2012. In later 18 ❙ G20 Leaders’ 2014

phases of development, GreenGen is expected to increase generation to 650 megawatts with CO2 capture for enhanced oil recovery. GreenGen could eventually be among the world’s largest near-zero emissions power plants, and Peabody is honored to be the only non-Chinese equity partner in the project. Today’s advanced coal technologies are a major environmental success story. Investment in research and development of next generation technologies will continue this progress. Tell us about the Advanced Energy for Life campaign. What are the campaign’s goals and the plan to achieve them? The “Advanced Energy for Life” campaign is a global initiative Peabody launched in early 2014 to educate and mobilize world leaders and global stakeholders toward policies and actions that will help end energy poverty, increase access to low-cost electricity and use today’s advanced coal technologies to reduce emissions. Hundreds of millions have seen our messages across our social media platform, and the online news discussion about these

Peabody Energy has been vocal about its social license to operate. Tell us what you believe is most important to achieve sustainable mining practices? Peabody earns a social license through our unwavering commitment to operational excellence and leadership in sustainable mining practices that are core to our mission and values. Our activities make a positive impact in the communities where we operate. We start with a relentless focus on safety that is central to our commitment to operational excellence. We strive toward achieving zero incidents of any kind. Every employee commits to the safety vision and is held responsible for safe behavior and practices. Our results are strong, and in the United States, coal mining consistently ranks higher in safety than other industries, ranging from retail to construction. We also work to continually improve productivity and resource recovery through enhanced mining and extraction methods, and we are focused on land restoration and efforts to best support the communities where we do business. Advanced mining technology is the backbone of modern coal mines. Peabody employs global positioning satellites, real-time monitoring systems, and computerized dispatching technologies to improve operating efficiency. Next, Peabody’s efforts to restore lands and provide lasting benefits to current and future generations delivers superior results that are recognized globally. We advance sustainable practices in land restoration and energy efficiency. This past year, our employees restored more than 2,600 acres of mined lands, including rangeland, wildlife habitat, hardwood forests, prime farmland and wetlands. These lands are often more productive than before mining occurred. Responsible mining helps communities thrive. Peabody believes in empowering healthy, vibrant neighborhoods in communities where we do business. Last year, Peabody made A$5.6 billion in direct contributions to economies around the world. These contributions included wages, taxes,

Story / Peabody

Peabody’s flagship North Antelope Rochelle Mine is the world’s largest and most productive coal mine, with seams more than 25 meters thick and producing more than 110 million tons of low sulfur coal per year.

capital investments and vendor contracts and resulted in an indirect benefit of A$22 billion. We also seek to improve lives and livelihoods through philanthropic donations, community outreach and employee volunteerism. Making a positive difference in the communities where we do business is central to how we earn our social license to operate. What can world leaders at the G20 do to address energy poverty? All of us share the same basic desire to make the world cleaner, healthier and more energy secure. It is incumbent on all government leaders—including G20 nations—to advance policies aimed at protecting people, advancing economies, and improving the environment. When it comes to energy, we are going to need it all. And as we continue to use more coal, we should use coal more cleanly. This includes investment in and deployment of high-efficiency advanced supercritical coal plants that minimize emissions and even reduce carbon dioxide. A cooperative, technology-driven path will be essential to meeting global energy and environmental goals.

Together we can alleviate energy poverty if we are willing to work with governments and allies across all sectors. I would appeal to leaders of G20 member nations to take a leadership role in advancing solutions to address the crisis of energy poverty as the number one human and environmental issue we face. I offer a five point plan toward solutions we can all share: 1. Elevate the issue of energy inequality as a major priority for policy and action. Global energy poverty should be a key focus area for the G20’s 2015 agenda; 2. Recognize the tremendous impact of energy policy on all citizens and the importance of keeping energy available and costs low. Any new energy policy recommendations should show how energy access increases and energy affordability is strengthened; 3. Embrace a true “all of the above” energy strategy that recognizes all quantifiable benefits and limitations for each fuel alternative;

4. Support continued investment in advanced coal technologies to minimize emissions and drive down costs; 5. Promote development bank funding to expand broad electricity access in emerging markets. Listen to the voices of citizens around the world who are calling for greater action so that we may ensure a bright future for our families and children. ■ Peabody Energy (NYSE: BTU) is the world’s largest private-sector coal company and a global leader in sustainable mining, energy access and clean coal solutions. Learn more at PeabodyEnegy.com and AdvancedEnergyforLife.com.

Brisbane. Australia 2014 ❙ 19

Focus Queensland / Brisbane Authored by: Lord Mayor Graham Quirk

Brisbane: Australia’s New World City

A Message from Lord Mayor Graham Quirk

Being the G20 Leaders’ Summit host city for 2014 positions Brisbane as a strong competitor among other emerging new world cities of the 21st Century.

The Story Bridge

or Brisbane, the opportunity to host the 2014 G20 Leaders’ Summit and the leaders of the world’s most influential economies is recognition of the city’s evolution into a new world city. The Summit will place Brisbane squarely in the global spotlight and offers a once-ina-generation chance to show off our vibrant and entrepreneurial business community, world-class facilities and enviable subtropical lifestyle. 20 ❙ G20 Leaders’ 2014

Being the Summit host city for 2014 positions Brisbane as a strong competitor among other emerging new world cities of the 21st Century. It is a profile the city continues to build on, as a leading destination for business investment, exports, education, conventions, tourism, and the arts. These industries along with our work to cultivate innovation and creativity have helped drive Brisbane’s strong economic success,

which over the last decade has grown to A$135 billion and is forecast to increase to A$217 billion by 2031. As one of Australia’s fastest growing regions, the Greater Brisbane Area is expecting its population to increase to an estimated 3 million by 2031. Our ambitious approach to planning for this forecast growth includes key infrastructure projects such as the Legacy Way tunnel, Kingsford Smith Drive entry statement project,

Beyond G20: Queensland, the economic powerhouse

Howard Smith Wharves redevelopment and, the Kurilpa Riverfront Renewal Master Plan. These projects present opportunities for significant investment, with the Kurilpa renewal offering more than 25 hectares of prime inner-city real estate and parkland, to be transformed into a new world-class destination. This past year has been very exciting for Brisbane, claiming a string of city accolades including a spot in the Monocle Quality of

Life Survey’s top 25 cities, for the first time. Travel bible Lonely Planet also declared Brisbane ‘Australia’s hippest city’ for 2014. The city’s reputation as a safe, clean, green, accessible, and friendly destination is appealing to tourists, with Brisbane attracting more than six million visitors in 2013. The return on tourism exports in 2013 generated A$5 billion for our local economy. With tourists from the Asia-Pacific identified as the main source for this increase in visitation, Brisbane is securing its reputation as a popular gateway to the Asia-Pacific regions. As Lord Mayor, I am focused on attracting more business meetings, major events, tourists, and investors to our city. With Brisbane’s proximity to the AsiaPacific region and to the 1.3 billion potential consumers in China alone, this global market represents endless opportunity. Over the past few years Brisbane City Council has been working to strengthen ties in the Asia-Pacific region, to help secure our position within this market. With existing relationships in areas of business, trade and education, we are committed to unlocking new opportunities through our strong international program. Council showed remarkable vision when it established the Asia Pacific Cities Summit (APCS) in 1996. Seventeen years on, the biennial threeday event has become one of the region’s leading business and civic forums, drawing city mayors and 1100 delegates from 115 cities. In recent years, APCS has been used as a platform for global cities and industries to do business in the region. The Summit has been held in cities such as Chongqing in China, Incheon in South Korea, Seattle in the United States of America, and Kaohsiung in Taiwan. Cities are the social, political, and economic engines of the global economy in the 21st Century. The commonality of issues and challenges faced by cities in the Asia-Pacific is explored during APCS as a means for regional collaboration. City centres like Brisbane are vital to Australia’s prosperity, being the key means for which growth is promoted and success is achieved. More recently Brisbane has become the host of the prestigious Asia Pacific Screen Awards, which recognises and promotes the cinematic excellence and cultural diversity of the world’s fastest-growing film region. In 2014, shortly after the G20, the city will introduce a new Brisbane Asia Pacific Film Festival to run in tandem with the awards. These awards are the pre-eminent film awards in the Asia Pacific

Lord Mayor Graham Quirk

supported by the Motion Picture Association and endorsed by the United Nations Educational, Scientific and Cultural Organization (UNESCO) and the Fédération Internationale des Associations de Producteurs de Films (FIAPF). In February 2014, Brisbane held the first of three biennial Australian Performing Arts Markets and in 2015 we will be the proud host city of the Asian Football Confederation Asian Cup. Our proven success in hosting major events demonstrates Brisbane is more than capable of stepping up to the global stage and Brisbane City Council, in its drive to build on our new world city status, has set some long-term goals for the future. My aim for Brisbane is to grow and deliver a prosperous economy for all residents. We are striving towards being regarded as a top 10 lifestyle city worldwide and a leading destination in the Asia-Pacific Region for major events and business, tourism, and global conventions. Through Brisbane’s commitment to continuous innovation and improvement, our aim is to be ranked in the top 20 world cities on independent global city ranking indices by 2031. The G20 Leaders’ Summit is the platform from which Brisbane will launch itself toward these bold and ambitious targets. The Summit will deliver a major boost for Brisbane through a surge in business for local › Brisbane. Australia 2014 ❙ 21

Focus Queensland / Brisbane

BRISBANE’S STATUS IS ALREADy INCREASINGLy ATTRACTIvE TO LARGE NUMBERS OF INTERNATIONAL STUDENTS WITH 75,000 STUDENT ENROLMENTS FROM MORE THAN 100 COUNTRIES. › shops, restaurants, hotels, and an increase in investment opportunities and students. Brisbane’s status is already increasingly attractive to large numbers of international students with 75,000 student enrolments from more than 100 countries. Its three world-class universities—University of Queensland, Griffith University, and Queensland University of Technology—are leading the change. All three rank highly in the world university ranking with the University of Queensland in the top 50. The work of their scientists and researchers is further bolstered by the creation of several new science precincts in Brisbane. Economically, international student enrolments in Brisbane contribute in excess of A$2 billion in revenue to the city each year. With international students playing such a significant role in growing Brisbane’s economy, Council has introduced a number of initiatives such as the Brisbane International Student Ambassadors Program. The program utilises the global reach of the city’s international students to spread the word about the business and investment

opportunities Brisbane has to offer. I also regularly host International Student Friendship Ceremonies which aim to establish lifelong relationships with the political, business and trade leaders of the future. By building mutually beneficial relationships with other international cities, Brisbane is helping to secure its place in Asia. Networking with other leading global cities allows Brisbane to exchange best practice ideas and experiences, informing future thinking on delivering economic growth and providing effective and efficient local services for the community. This year, I had the pleasure of leading the 2014 Lord Mayoral Business Mission to Abu Dhabi, Shanghai, Hyderabad, and Singapore, which provided an opportunity for 50 Brisbane business leaders to connect with key decision makers and business figures in these regions. Currently Brisbane has nine Sister City relationships and over the past three years Brisbane’s Sister Cities and international programs have generated more than A$500 million of economic benefits for local companies. Furthermore, Brisbane continues to forge

BriSBANe: FACTS

› It is the closest Australian capital city on the eastern seaboard to Asia.

› Brisbane is Australia’s new world city, with a A$AU135 billion economy

› Brisbane’s economy benefits from a strong mining and energy sector, servicing many countries around the world with coal and other commodities.

› Brisbane enjoys a sub-tropical climate, with year-round sunshine › A population of 2.1 million call Brisbane home, with a median age of 35 › Mandarin is the second most common language spoken at home after English. › The largest demographic in Brisbane is aged between 24 and 40. › More than a quarter of Brisbane residents were born overseas. › Population numbers are expected to reach to an estimated 3 million by 2031 for Great Brisbane Area › The city’s economy is predicted to grow to more than A$217 billion by 2031.

22 ❙ G20 Leaders’ 2014

› Brisbane is a recognised global player in business, major events and international education. › Brisbane’s economic growth is fuelled by a competitive base for doing business, high levels of business investment and innovation and the largest public infrastructure spending program in Australia’s history. › Investors seek opportunities in Brisbane across the renewable energy, clean technology, food and beverage, infrastructure, manufacturing, life sciences, and mining and technologies sectors.

stronger relationships with its own multicultural residents. With more than 29 per cent of Brisbane residents born outside of Australia, Brisbane is truly a friendly, welcoming, and diverse city. Over the past year, Council introduced an initiative to ensure Culturally and Linguistically Diverse (CaLD) residents were included in all aspects of Brisbane life, by having key information translated into a number of languages, on Council’s website and promotional material. This small but effective initiative ensures all residents have the means for gaining access to all the great things this city has to offer. All of these factors have prepared us to host the G20 Leaders’ Summit and Brisbane is ready to welcome the world. Brisbane has so much to offer, so much untapped opportunity and this is reinforced by my aggressive approach to growing our economy. We have a big vision for Brisbane, as a city of the world, and we hope visitors to this year’s G20 Leaders’ Summit will appreciate our city, just as much as we do. ■ Brisbane City Council: www.brisbaneqld.gov.au Asia Pacific Cities Summit www.apcsummit.org Asia Pacific Screen Awards www.asiapacificscreenacademy.com Australian Performing Arts Market www.performingartsmarket.com.au Brisbane Marketing www.brisbanemarketing.com.au

› Many of the 75,000 international student enrolments at Brisbane institutions each year stay on to embrace local employment opportunities. › Brisbane’s South Bank precinct includes the southern hemisphere’s largest gallery of modern art: GOMA, as well as a world-class Brisbane Convention and Exhibition Centre, venue of the 2014 G20 Leaders’ Summit › Brisbane’s spectacular natural attractions include beautiful beaches, islands, and lush rainforests all within an hour of the city. › Brisbane’s location enables an extended work day across three international time zones.

Shaping liveable cities More than half of humanity now lives in cities. Urban areas account for between 60-80% of energy consumption and a commensurate share of global CO2 emissions. Within a decade, more than 500 cities will have populations exceeding one million. Arup has been working with cities across the world for decades, pioneering integrated solutions for sustainable cities, both new and existing. Our sustainable thinking, technical expertise and integrated approach helps make cities better places to live, work and play. Images (L-R from top to bottom): Kings Cross Station, UK © Hufton + Crow, Singapore Sports Hub, Singapore © Arup, Main Outfall Sewer Redevelopment, Vic © Arup, Metropol Parasol, Spain © Hufton + Crow, Kurilpa Bridge, Qld © Arup

We shape a better world | www.arup.com

Focus Queensland / Water Management

UQ Advanced Water Management Centre: Innovative approaches to urban water management University of Queensland’s Advanced Water Management Centre (AWMC) is uniquely positioned to meet future challenges, with solid research programs that span the entire urban water cycle.

24 ❙ G20 Leaders’ 2014

Beyond G20: Queensland, the economic powerhouse

ncreasing pressure on our water resources due to factors such as population growth and climate change is driving the need to develop innovative solutions to more effectively use resources and infrastructure. At a national level, the University of Queensland’s Advanced Water Management Centre (AWMC) is uniquely positioned to meet future challenges, with solid research programs that span the entire urban water cycle. AWMC programs encompass drinking water production and distribution; wastewater collection and treatment (including water recycling and energy and nutrient recovery); and impact on urban waterways. AWMC Director Professor Jurg Keller said the centre was an international leader in water research and innovation. “The AWMC has an excellent track record in translating scientific discoveries into innovative and practical solutions, with a multidisciplinary approach to research, and strong expertise in process engineering, water chemistry, electrochemistry, microbiology and bioinformatics, as well as strong partnerships with industry,” he said. As an example, AWMC industry partners have achieved economic benefits reaching hundred millions of dollars from the Sewer Corrosion and Odour Research (SCORe) Project—Putting Science in Sewers. The project, led by AWMC Deputy Director Professor Zhiguo Yuan, recognises that sewer systems are critical infrastructure for modern urban society, and are essential for protection of public health. “Asset loss due to sewer corrosion costs Australians in the order of A$100 million a year,” Professor Yuan said. “It’s a world-wide phenomenon, particularly in countries with a warm climate, so on a global scale this corrosion amounts to billions of dollars.” SCORe comprises a joint initiative between the Australian government, 11 Australian water industry partners servicing two-thirds of the Australian population, and nine leading international water research organisations, to address the fundamental lack of understanding surrounding optimal sewer corrosion and odour management. It is believed to be the world’s largest research project focusing on this topic, with key outcomes including novel technologies, innovative modelling tools, and an enormous amount of new knowledge. It recently was awarded the International Water Association (IWA) 2014 Global Project Innovation Award for Applied Research. “The SCORe project fundamentally changes sewer corrosion and odour management practice in Australia, and it will also have an

enduring, beneficial impact on the worldwide water industry,” Professor Yuan said. AWMC researchers have also identified how a simple shift in water industry practice can reduce sulfide-induced concrete sewer corrosion, the major cause of global sewer deterioration. AWMC researchers have revealed that aluminium sulfate addition during drinking water treatment serves as a major source of sulfide in sewage. The global significance of these findings was demonstrated by publication of this work recently in the prestigious journal, Science (vol 345, p812-814). Existing government policies and institutional arrangements separate the responsibilities for drinking water production, water distribution networks, wastewater collection systems, and wastewater treatment plants, which are operated and managed under the jurisdiction of different

departments and agencies. If water practitioners took an integrated approach to urban water management, the unintended consequence of sewer infrastructure corrosion could be greatly reduced by switching to sulfate-free coagulants at the drinking water treatment stage, with little or no additional expense compared to the large savings in sewer corrosion costs. Another opportunity for mutually beneficial outcomes of a cooperative approach to urban water management is in the form of nutrient recovery from wastewater. Substantial depletion of nutrient resources is occurring on a global scale, with peak phosphorous expected over the next 30 years. The amount of nutrients available in wastes is substantial, with potential to supply up to 100 per cent of current global agricultural potassium and phosphorous, and 30 percent of nitrogen demand. ›

Damien Batstone, Deputy Director, Education, Associate Professor

AChIEvInG nUTRIEnT RECOvERY On A GlObAl SCAlE WIll REQUIRE InTERnATIOnAl CO-OPERATIOn AnD TRADE Of WASTE-DERIvED nUTRIEnTS, AS WEll AS EnGAGEMEnT WITh PRIMARY PRODUCTIOn. Brisbane. Australia 2014 ❙ 25

Focus Queensland / Water Management Drinking and Recycled Water Research Program

› Industrial production of n-based fertilisers through the haber-bosch process currently consumes two per cent of world energy and this is expected to double by 2050. Paradoxically, existing wastewater treatment consumes a similar energy load to reverse the haber-bosch process, biologically transforming nitrogen into gaseous form which is lost to the atmosphere. The AWMC nutrient Recovery Program strives for a future where wastewater treatment incorporates nutrient recovery, producing a manufactured fertiliser product, at the same time generating energy and producing water of high quality. AWMC Deputy Director – Education, Associate Professor Damien batstone, leads the development of technologies that will form the basis for next-generation waste management. his team has identified and is developing emerging processes that can match the performance of existing technology while avoiding wasteful energy consumption and nutrient dissipation. both platforms have the potential for net energy generation as well as resource recovery. “Achieving nutrient recovery on a global scale will require international co-operation and trade of waste-derived nutrients, as well as engagement with primary production.” Associate Professor batstone works closely 26 ❙ G20 Leaders’ 2014

with the wastewater industry, including domestic sewage treatment utilities, agroindustry, and the end-users of the fertiliser product. AWMC researchers are also collaborating with industry to address fugitive greenhouse gas emissions from sewers, wastewater treatment plants, waterways (estuaries, bays) and water storage systems. With strong support from 10 Australian and international water utilities, AWMC researchers are international leaders in the modelling of nitrous oxide (n2O) and methane (Ch4) emissions from water systems. The AWMC was the first group in the world to successfully model n2O production in full-scale wastewater plants. fundamental science underpinning the greenhouse gas work led to the discovery of an organism establishing a previously unrecognised link between the global carbon and nitrogen cycles. The innovation of this science was acknowledged through publication in the prestigious journal nature. AWMC researchers also demonstrated that drinking water storages, bays and estuaries emit significant levels of Ch4 and n2O, with wide spatial variability in estuaries and reservoirs. The knowledge generated from these findings has supported the Australian water utilities to accurately estimate system

greenhouse gas emissions and to develop mitigation strategies. Another project with partners is assessing emerging and regulated disinfection byproducts in drinking water and treatment option scenarios. At AWMC, the Drinking and Recycled Water Research Program focuses on technology development and optimisation, and alternative water supply options. These include decentralised drinking water and recycled water production as well as stormwater harvesting using the guiding principle of ‘fit-for-purpose’. Professor Keller said the AWMC had amassed a wealth of experience with membrane filtration, biofiltration, and the application of oxidation technologies including disinfectants. “An in-depth understanding of water quality is critical for designing an adequate treatment solution, and to this end AWMC research includes source water characterisation, and the management of trace organic contaminants and disinfection by-products throughout treatment,” he said. In collaboration with the CRC for Water Sensitive Cities, AWMC also participated in a national stormwater sampling campaign, finding that sewage leakage into stormwater occurs more frequently than expected and poses a significant human health risk due to potential pathogens. Conversely, chemical contamination in Australia is generally lower than has been found abroad, and chemical human health risks seem to be minor. Queensland Government fellowship schemes have enabled both capacity building and direct retention of talented researchers at the AWMC. State government incentive programs have also supported the productive researcherindustry partnerships fostered by AWMC. In addition, AWMC has pro-actively collaborated with Queensland Government departments ranging from environmental health and resource management to economic development and innovation. In fact, over the past decade the Queensland Government and The University of Queensland in partnership with two other institutions were involved in the largest urban water research program in Australia. looking ahead, researchers at the AWMC will continue to provide leadership and innovation in integrated urban water management by applying scientific principles to address real-world issues in strong partnership with the water industry. ■ for more information please email enquiries@awmc.uq.edu.au

Feature / WaterAid

A resident of Camalelara, Timor-Leste on the half kilometre hike that he makes twice daily for water

28 â?&#x2122; G20 Leadersâ&#x20AC;&#x2122; 2014

Feature / WaterAid

Two words should really matter to the G20: Water and sanitation The Sustainable Development Goals are expected to deal with the ambition of ending extreme poverty by 2030. The G20 summit comes at a pivotal moment as UN member states begin their negotiation on what should be prioritised. Progress on water and sanitation must be a key component of this effort.

Image: Dean Sewell/oculi/Agence Vu for WaterAid

hen asked the question, “What two things do you take for granted in your life?” delegates arriving at the G20 summit in Brisbane might reply, “My car,” “My phone,” “My house,” or perhaps, “My partner.” Very few would mention the two things that have arguably made a bigger difference to human development than any others—water and sanitation. For one young woman called Anna, the lack of basic water and sanitation had defined her life until recently. Collecting this water dominated the day and left her little time for productive work. Drinking the dirty water often left her family sick with diarrhoea. Anna and her family in rural Timor-Leste relied on unimproved sources for their drinking water. She had little choice but to take back dirty water to her family. Her family of five had no access to even a basic toilet. Like the rest of the community they had no choice but to defecate in the open. Human faeces polluted the water sources and brought disease into the house through contact with feet and flies. Anna spoke about the shame of relieving herself in the open and the lengths that she and other

women would go to avoid this—not urinating for an entire day and creeping out at night to hide behind a bush, despite the risk to her own safety. Anna’s life has now changed beyond measure. Thanks to a community-driven scheme to install a water system, as well as a behaviour change program to eliminate open defecation and construct basic latrines, she now has access to clean water to drink and wash with, and a safe place to go the toilet. Anna has experienced the transformational change that access to safe water, sanitation and hygiene can bring. As global policy-makers gather in Brisbane, they will be deluged with numbers. Two in particular deserve their attention: 410 and 309. 410 is significant because it is the number of days from the summit until the target date on the Millennium Development Goals (MDGs). Agreed by UN member states in 2000, the MDGs have played a significant role in catalysing action from donor and developing countries on a globally agreed set of priorities. Halving the number of people without an improved water source was included as a target, and this was met in 2010. › Brisbane. Australia 2014 ❙ 29

Image: WaterAid/Tom Greenwood

Feature / WaterAid

Anna, 25, and her family, with their new water tap in Liquica District, Timor-Leste.

› But progress has been uneven. For the 748 million people still living without basic water—often in communities much like Anna’s—daily reality is still an unprotected water source and a daily gamble with their health. The sanitation situation is much worse. Left out of the MDGs until 2002, what little progress there has been to date has not kept pace with population growth. With 2.5 billion people living without access to basic sanitation in 2014, we face the reality that some countries like Nigeria are actually going backwards in terms of the proportion of their population who have access to a basic toilet. Since 1981, WaterAid has worked with communities in over 26 countries worldwide to help provide access to safe water, sanitation, and hygiene. We know from experience that these basic services are the foundation for many of the goals set out in the MDGs. Mothers like Anna who have access to basic water and health clinics have a reduced likelihood of post-birth complications. Children like Nelsa, Anna’s daughter, are much less likely to face repeated bouts of diarrhoeal illness, which is the second biggest killer of children worldwide. Girls like Anna’s eldest daughter, Rosalia, are much more likely to stay in education if they don’t need to collect water or go without basic sanitation facilities when they begin to menstruate. In short, progress on delivering water, sanitation and hygiene is vital if we are going to complete the unfinished business of the MDGs’. The number 309 is significant because it is the number of days countries have to agree the MDGs’ successor following the G20 30 ❙ G20 Leaders’ 2014

summit. The Sustainable Development Goals as they will be known are expected to be much more ambitious in scope—dealing with global issues across the dimensions of economic, environmental and social development—and with the ambition of ending extreme poverty by 2030. The G20 summit comes at a pivotal moment as UN member states begin their negotiation on what should be prioritised. WaterAid is calling on leaders attending the G20 summit to ensure that a dedicated goal for water and sanitation is included in the SDGs, and to recognise that progress on areas ranging from child mortality to gender equality rely on achieving this. We want a framework that is holistically developed and ensures mutual accountability between sectors. We also recognise that the SDGs will only succeed in eradicating extreme poverty by 2030 and placing the world on a truly sustainable path if they are accompanied by a transformational shift in how we finance global development. The Financing for Development Conference in Ethiopia in July 2015 will focus on how this can be achieved. Mobilising domestic resources, harnessing private investment, and increasing aid volumes and effectiveness will all be critical components. WaterAid believes the conference also offers a unique opportunity for high-income countries to deliver their 40 year old pledge to allocate 0.7 percent of gross national income as aid, and to consider how new and innovative forms of financing, such as financial transaction taxes, can augment traditional sources. Conversations at this year’s G20 will be wide-ranging. From developing resilient

For The 748 millioN PeoPle wiThoUT acceSS To baSic DriNkiNG waTer, The Daily realiTy iS a Gamble oN Their healTh. economic growth to tackling youth unemployment, the leaders of the G20 nations have a busy agenda. Despite this, they should not neglect discussions on the role they will play collectively when they join 173 other countries to agree the Sustainable Development Goals in New York in September 2015. If they are to truly commit to ending extreme poverty by 2030, it is paramount that a dedicated goal on water and sanitation be included within them. Anna’s story encapsulates how services that are taken for granted can be transformational. She told us, “[Basic water and sanitation] have made my life easier— I now have lots of time with the children. I can collect firewood and grow vegetables in my garden.” To secure and improve the lives of millions of people like Anna who still live without access to safe water and basic sanitation, we call on delegates to seize the remaining 309 days and deliver a sustainable development framework that leaves no one behind. ■ About WaterAid WaterAid is an international nongovernmental organisation with a mission to transform lives by improving access to safe water, hygiene, and sanitation in the world’s poorest communities. We work in 26 countries worldwide, and have federated offices in Australia, Japan, the UK, the USA, Sweden, and Canada. You can find out more about our work and download resources for decision-makers involved in the post-2015 process at www.wateraid.org/post2015

Focus Queensland / Growth

Financing growth and infrastructure in Australasia Investors see Australia—and particularly Queensland— as an investment choice where the government supports infrastructure development and public private partnerships

any of the greatest challenges facing world economies take root in the gulf between the demand for infrastructure and its availability. Worldwide demand for infrastructure vastly outstrips the availability of quality roads, reliable power, safe water, secure telecommunications, efficient transportation, and effective hospitals and schools. In 2014 the B20—the forum of international business leaders engaged to produce policy recommendations to the G20—has tightened its focus on the need to shrink the gap between infrastructure demand and availability to create jobs and stimulate economic growth. Greater investment in infrastructure is critical to the G20 achieving its ambitious growth target of two per cent above trend over the next five years, the B20 has said. It estimates that every US$1 billion invested generates 8000 jobs and flow-on economic benefits. G20 countries will require infrastructure worth about A$60-$70 trillion by 2030, yet only A$45 trillion is forecast to be spent, according to B20 Infrastructure and Investment Taskforce Coordinating Chair David Thodey. This leaves a global infrastructure investment shortfall of about A$15-20 trillion by 2030. Road-building and maintenance projects require A$17 trillion, followed by power and water at about A$12 trillion each, telecommunications at A$10 trillion and transportation at A$8 trillion. “You can get a sense of this enormous demand for infrastructure,” Mr Thodey said. “Yet there is a significant volume of private, long-term funding available and interest rates are at historically low levels. “Addressing this gap by developing more investable projects more quickly would enable trade, business and better government

32 ❙ G20 Leaders’ 2014

services and increase employment end economic growth.” Closing the gap The B20 has recommended a Global Infrastructure Initiative to match private sector investment funds with critical infrastructure projects. Its 2014 policy summary notes that “high quality economic infrastructure underpins economic activity both within and across national borders” and sets out six key steps that G20 nations should take to promote more, and more efficient, investment in infrastructure. These are: › to recognise the critical value of private investment in infrastructure in national growth plans; › to establish, publish and, deliver credible national infrastructure pipelines that have been rigorously assessed and prioritised by independent national infrastructure authorities; › to establish a Global Infrastructure Hub to facilitate private sector investment in a range of quality investment projects; › to implement transparent, world-class infrastructure procurement and approvals processes with specified time limits for approval procedures; › to promote cross-border capital flow; and › to increase the availability and attractiveness of long-term financing for infrastructure investment. Australia’s G20 host state of Queensland has already travelled a considerable distance down this road. Its Government-run infrastructure investment broker, Projects Queensland, has aims, functions, and achievements closely

aligned to the B20’s proposed key enabling mechanism, the Global Infrastructure Hub. How G20 host state drives public-private matchmaking The Queensland Government has voiced its firm commitment to asset recycling, a mechanism keenly supported by the B20’s David Thodey. Its plan to lease out established transport, water and energy infrastructure will allow the state to reduce debt and fund new infrastructure. “By reducing our debt, we can free up funds to create jobs and build the infrastructure our growing state needs,” said Queensland Premier Campbell Newman. Expert advice from both public and private sectors contributed to the government’s decision to lease the busy resource and agriculture seaports of Gladstone and Townsville, the Mt Isa rail line, commercial water pipelines, electricity generation, transmission and distribution, and other non-core business activities. “Of the resulting revenue, A$8.6 billion would be dedicated to supporting infrastructure considered vital to economic growth, jobs, and the vibrancy of regional communities,” the Premier said. Projects Queensland Executive Director David Quinn said the unit set up in 2012, had grown out of an understanding that interested investors needed to be connected with attractive, appropriate infrastructure investment propositions that also met the needs of the State and achieved valuefor-money outcomes. Both the public and private sectors benefited from a central unit working with and leading governmental agencies to coordinate major infrastructure procurement and manage high-value or high-risk publicprivate partnerships. “The Queensland Government’s position is to look to private financing and private delivery for infrastructure,” Mr. Quinn said. “Our role is to help package projects to make them attractive to the private sector. “Projects Queensland works with line agencies, such as the Department of Transport and Main Roads, to build a business case that will be approved by government, engage the private sector on the preferred financing and delivery model and manage the project through to procurement.” Like the B20’s proposed Global Infrastructure Hub, Projects Queensland draws up business cases for approved public-private partnerships by engaging with government specialists and private sector advisers.

Beyond G20: Queensland, the economic powerhouse

InFrAsTruCTure CAse sTudIes

Photo courtesy of the Queensland Government.

It operates under a Public Private Partnerships Policy and Value for Money Framework. “We consider unsolicited offers and exclusive mandates and, assessing them against agreed guidelines,” Mr. Quinn said. “We have a number of projects now in the business case phase. We’re engaged with the private sector to ensure that what we’re putting forward is an attractive option to investors. The feedback has been positive.” Investors see Australia—and particularly Queensland—as an investment choice where the government supports infrastructure development and public private partnerships, he said. Trade and Investment Queensland points out that the state has led Queensland’s economic growth for more than 20 years. Its two per cent annual population growth is the country’s second-highest, while its net interstate migration is Australia’s highest. Outcomes Queensland’s Treasurer and Minister for Trade, the Honourable Tim Nicholls notes that Projects Queensland had achieved outstanding outcomes in its short period of existence. Since 2012, Projects Queensland has successfully managed the financing and awarding of contracts providing billions of dollars’ worth of infrastructure for Queensland, including: › the procurement of the government Wireless Network for Queensland’s public safety agencies; › Bombadier NGR Consortium being contracted to deliver and maintain new generation rolling stock to replace and expand an ageing train fleet;

› the landmark 1 William Street Office building currently being constructed; › The Commonwealth Bank of Australia, American Express and Australia Post to manage Queensland Government banking services; › Plenary Schools to design, build, finance, and maintain 10 new schools in south-east Queensland. Three consortia are shortlisted for Queensland’s multi-billion-dollar Toowoomba Second Range Crossing, a 41 kilometre toll road funded by federal and state governments and private enterprise. The project is forecast to boost regional economy activity by A$2.4 billion over 30 years, and create more than 1800 full-time equivalent jobs during construction. Some 63 consortia and individual companies registered their interest in the venture with Projects Queensland in early 2014. The shortlist was announced mid-year, with contracts to be awarded in mid-2015 and the route operating by late 2018. B20 chair Richard Goyder and his working group are firmly behind the model of matching private investment with demand for private infrastructure, noting the wealth of economic growth and job creation to be gained. “There is a really significant gap of infrastructure spending,” Mr. Goyder said, in Cairns for the meeting of Finance Ministers and Central Bank Governors in September. “If we can close that gap, we’ll create millions of jobs and investment and economic wealth on the supply and demand side.” ■

Toowoomba second range Crossing Queensland’s construction sector has almost tripled in 10 years, accounting for about one-third of all construction in Australia. It has A$98 billion in investment projects under construction, with a further A$93 billion either committed or under consideration. The Queensland Government is committed to cutting red tape and development costs, stimulating growth, and boosting infrastructure financing. It has earmarked A$8.6 billion for supporting infrastructure vital to economic growth, jobs and regional communities. Three consortia—two international and one with international ties—have been shortlisted to build the multibillion-dollar Toowoomba Second Range Crossing road infrastructure in southwest Queensland. The project is a centrepiece of major economic development in the region, supported by federal, state, and private funding. Some 63 consortia and individual companies registered their interest in the venture in early 2014. The shortlist was announced mid-year, with contracts to be awarded in mid-2015, and the route operating by late 2018. Nexus, RangeConnect, and RangeLink have been chosen to bid for the 41 kilometre toll road, supporting heavy vehicles and linking Australia’s secondlargest agricultural basin to Brisbane. The Toowoomba Second Range Crossing project is forecast to boost regional economic activity by A$2.4 billion over 30 years and create more than 1,800 full-time equivalent jobs during the three year construction phase. Transport Australia’s G20 host state of Queensland is planning an ambitious, worldfirst, underground mass transit system to cater for its booming economy. The Queensland Government aims to start building the A$5 billion BaT (Bus and Train) Project in the state capital of Brisbane next year, combining road and rail in a single tunnel to increase public transport capacity in line with projected demand. Steady population growth and a strong economy is driving a construction boom in Queensland, particularly in the thriving south-eastern region surrounding the Gold Coast and Brisbane.

Brisbane. Australia 2014 ❙ 33

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Putting tax transparency and morality on the agenda Greg Wiebe, KPMG’s Global Head of Tax

Whether you are a policy maker, business leader, politician, journalist, tax authority or a regular citizen, the issue of tax is probably high on your agenda. Over the past few years, there has been a fundamental shift in the way that people view tax. Today, tax – and the issue of paying your fair share – is one of the most prominent areas being scrutinized by governments, the general public and, to a great extent, the media. Just like corporate responsibility and environmental issues, significant brand damage can occur if there is a perception that a company’s tax affairs are overly aggressive or ‘unfair’. As the public looks to businesses to ‘do the right thing’, expectations for more transparency are increasing. Tax on the global agenda While the debate has tended to focus on corporations and high net worth individuals, the reality is that governments, tax authorities and policy makers must also shoulder some of the responsibility. In part, this is because current tax systems have not kept up to date with changes in business models and practices. At the same time, it must also be recognized that many countries use their tax systems to compete for investment dollars and jobs, and to benefit the foreign activity of their own multinationals. Thankfully, there are a significant number of international meetings involving the EU, OECD, G8 and G20 where tax is on the agenda. Some are likely to focus on evasion, others on international tax rules. Regardless, business leaders can expect to see a myriad of scoping documents, discussion papers and communiqués at the country, secretariat and forum levels. The fact of the matter is that, with respect to tax, businesses need an environment that offers regulatory stability and certainty. To this end, KPMG member firms around the world applaud and support the current and future work of the OECD. Much good work has already been done on the global stage over the past few decades to address any number of tax issues. But, now more than ever, it is essential that collaboration between countries and the relevant authorities takes place. This will be difficult to achieve, and the potential for unintended consequences is high. But through proper dialogue, communication and openness, KPMG’s member firms believe that resolutions can be found. A critical business issue Without a doubt, this ever-shifting debate and tax environment creates significant complexity. Indeed, with their very reputations and relationships on the line, business leaders will need to focus on ensuring that their organizations are not only acting responsibly in the eyes of their stakeholders, but also reinforcing their ability to comply with possible further reporting obligations. In my role as KPMG’s Global Head of Tax, I have joined many of my tax colleagues from around the world to talk with business leaders, tax authorities and other influencers about the issues surrounding this debate.

Basedononthis thisdialogue dialogueand andinformation informationgathering, gathering,we webelieve believethat thatthere thereare arefour fourkey keyactions actionsthat thatpublic publiccompany companybusiness business Based leaders– –boards boardsand andthe thefull fullC-Suite C-Suite– –regardless regardlessofofindustry industryororgeography geographymust musttake takeseriously seriouslyand andaddress addressnow: now: leaders Ensureyou youare arefully fullyinformed: informed:Keep Keepabreast abreastofofdevelopments developmentsthat thatwill willoccur occuratatthe thelocal localcountry countryand andinternational international 1.1.Ensure level.Consider Considerhow howthese thesedevelopments developmentscould couldaffect affectthe thetax taxpositions positionsand andplanning planningundertaken undertakenbybyyour yourcompany. company. level. Planfor forpublic publicdiscussion discussionand anddevelop developa atax taxnarrative: narrative:Be Beprepared preparedtotocomment commentononyour yourbusiness businessand andtax tax 2.2.Plan activityatatany anygiven givenmoment moment(a(aparticularly particularlyimportant importantcapability capabilityininthe theera eraofofsocial socialmedia). media).Ensure Ensureboard boardmembers, members, activity management/C-Suitemembers membersand andthe thecore coretax taxteam teamare areaware awareofofthe thepotential potentialquestions questionsand andchallenges challengesthat that management/C-Suite couldcome comefrom fromany anynumber numberofofstakeholders stakeholderssuch suchasasregulators, regulators,investors, investors,media mediaand andthe thegeneral generalpublic. public. could Thinkreputational reputationalrisk: risk:Ensure Ensurethat thatdecisions decisionsaround aroundtax taxare aremade madetaking takinginto intoaccount accountpotential potentialreputational reputational 3.3.Think risksand andnot notsimply simplywhether whetheryour yourorganization organizationhas hascomplied compliedwith withthe thetax taxlaw lawininvarious variousjurisdictions. jurisdictions. risks Assessyour yourcompany’s company’srelationship relationshipwith withtax taxauthorities: authorities:Ensure Ensurethat thatthere thereisisappropriate, appropriate,open openand and 4.4.Assess respectfulrelationships relationshipswith withlocal localtax taxauthorities authoritiesininallalljurisdictions jurisdictionsininwhich whichyou youoperate. operate.Ensure Ensurethat that respectful youput putininplace placeprocesses processestotosupport supportdiscussions discussionswith withthe thetax taxauthorities, authorities,including includingpaper papersupport supportand and you documentationexchange exchangeand andappropriate appropriatecommunications communicationschannels. channels. Thebottom bottomline lineisisthat thatthe thecosts costsofof documentation The earlypreparation preparationtend tendtotobebesignifi signifi cantlysmaller smallerthan thana apath pathofoflong-term long-termconfl confl andlitigation. litigation. early cantly ictictand signssuggest suggestthat thatwe wewill willcontinue continuetotosee seeincreased increasedpressure pressurefor formore moretransparency transparencybetween betweentaxpayers taxpayers AllAllsigns andthe thetax taxauthorities, authorities,and andmore moredisclosure disclosurebybypublic publiccompanies companiesasastotothe theamount amountofoftheir theirtax taxpayments payments and andwhere wherethose thosetaxes taxesare arebeing beingpaid. paid. and Ultimately, business leaders, tax authorities and policy makers will need remember that this a changing Ultimately, business leaders, tax authorities and policy makers will need toto remember that this isis a changing world and one can resist the change embrace The problem with the former that one tends get left world and one can resist the change oror embrace it.it. The problem with the former isis that one tends toto get left behind. Do not become complacent: this issue not going away. behind. Do not become complacent: this issue isis not going away. For more information, please visit www.kpmg.com/tax For more information, please visit www.kpmg.com/tax

Greg GregWiebe Wiebe KPMG’s KPMG’s Global Global Head Head ofofTax Tax E:E: gwiebe@kpmg.ca gwiebe@kpmg.ca T:T:+1 +1 416 416 777 777 3271 3271

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Focus Queensland / Tourism

Tourism and major events: New frontiers in Queensland Tourism is vital to the Queensland economy, creating jobs, attracting investment, and sustaining communities. As we enter new frontiers, we have the plans in place for this to continue in the future. The G20 Leader’s Summit is a once in a lifetime opportunity to showcase our worldclass tourism industry to a global audience as Brisbane hosts this significant event. It’s an exciting time for tourism in Queensland, we have so many spectacular destinations, must-do experiences and a world-class calendar of events. Queenslanders are known for their warm and friendly hospitality. As we welcome visitors from all over the world, we encourage delegates, visiting media, and other participants to stay on, or come back again, and enjoy the unique experiences that our fantastic State has to offer. The Honourable Jann Stuckey, Minister for Tourism, Major Events, Small Business and the Commonwealth Games

“H

eaven on earth,” proclaims Gourmet Traveller magazine. “The sight-seeing near here is wondrous.” “This is a place of extraordinary natural beauty, deserted surf beaches tucked into bush-lapped coves, the entire area cosseted by national park and a nature reserve with whales cruising by in winter and turtles nesting in summer.” The influential international publication was awestruck by the coastal Town of 1770— named after explorer Captain James Cook made his first Queensland landfall in the Endeavour—but it could have been any of a million beauty spots in the stunning state. Tourism is one of Queensland’s four key economic pillars. It’s a A$23 billion industry generating more than A$61 million a day in visitor expenditure and keeping 241,000 people employed.

38 ❙ G20 Leaders’ 2014

Global travel bible Lonely Planet writes that “this vast state is awash with dazzling landscapes, vibrant cities, and 300 days of sunshine a year. It’s also home to some of the country’s most notable highlights, from the golden beaches of the Sunshine Coast and the luminous green of the Daintree rainforest and Daintree Village to the clear blue waters of the Great Barrier Reef.” But Queensland is much more than heart-stopping natural beauty. It is thrilling sports events such as the Australian PGA on the Gold Coast, the Brisbane International tennis in Brisbane, the UCI Mountain Bike World Cup in Cairns and the Magic Millions Racing Carnival at the Gold Coast and the culinary delights of the Noosa International Food and Wine Festival on the Sunshine Coast. And with such material to work with, the Queensland Government vision is to maintain

and grow its strong and prosperous tourism sector, reaching new frontiers and fully engaging with industry and the community. The government’s 20-year plan for tourism, Destination Success, provides a shared purpose and common goal between the industry and government. The six key themes include building strong partnerships, preserving our nature and culture, delivering quality, great service and innovation, targeting a balanced portfolio of markets, offering iconic experiences, and growing investment and access. Queensland’s economy has been buoyed by strong tourism growth over the past three years. The government has taken a collaborative approach to growing tourism, working towards a target of increasing overnight visitor expenditure to A$30 billion by 2020.

Beyond G20: Queensland, the economic powerhouse

Photo courtesy of the Queensland Government.

A number of major tourism projects are also in the pipeline, including the Great Keppel Island resort (worth A$600 million); the Ella Bay integrated tourism and residential community (A$1.4 billion), and the Shute Harbour Marina Development (A$252 million). New airline routes are also providing international travellers with greater access, secured through the A$8 million Attracting Aviation Investment Fund. Advances include China Eastern’s seasonal service between Shanghai and Cairns, Air New Zealand’s expanded flights between Auckland and the Sunshine Coast, AirAsia X’s service between Kuala Lumpur and the Gold Coast, and Emirates’ upgrade to an A380 aircraft on its daily Dubai-Brisbane-Auckland service. As the number of international tourists globally grew five per cent in 2013 to reach a record 1.087 billion arrivals, the Asia/Pacific region recorded the strongest growth at

six per cent according to the United Nations World Tourism Organisation. This global trend highlights the tremendous opportunities for inbound travel to Queensland now and into the future. Last financial year, 20.1 million visitors travelled to Queensland spending A$17.7 billion during their stay. And visitors from several key Asian markets grew strongly— led by China, India, Hong Kong, and Malaysia. As the government’s lead marketing, destination and experience development and major events agency, Tourism and Events Queensland (TEQ) is working with industry to build strong destination brands through innovative marketing and a world-class events calendar—from the Gold Coast in the south to Tropical North Queensland and west to the Outback. Marketing campaigns target a combination of domestic and international visitor markets.

One example includes the successful ‘This is my Paradise’ campaign for Queensland’s Tropical North, staged in partnership with industry, travel wholesalers, and airline partners, through traditional media and social media. The digital and online campaign invited local residents to share their stories and knowledge of the region to inspire others to visit. In its first two weeks approximately 5000 stories were generated, and the number of people following the destination’s Instagram account doubled. TEQ’s global media distribution strategy via Thomson Reuters is enhancing the organisation’s promotional efforts, sharing stories of Queensland’s destinations with a series of video news releases, which have contributed to the A$248 million in global publicity for the state during the past financial year. › Brisbane. Australia 2014 ❙ 39

Focus Queensland / Tourism

Why tourism matters in Queensland

TO REACH THE QUEENSLAND TOURISM INDUSTRy’S 2020 GOAL, TEQ NEEDS TO LEAD TRENDS, SEEK INNOVATION, EVOLVE, ADAPT TO CHALLENGES, BREAK DOWN BARRIERS AND MAKE THE MOST OF EMERGING OPPORTUNITIES. › Internationally, maintaining a balanced portfolio of visitor markets while capitalising on emerging international opportunities is central to TEQ’s global marketing approach. TEQ reviewed its international operations and ramped up activities in the key growth markets of China, Singapore, India, and Indonesia while maintaining a presence in traditional markets. TEQ’s focus on a balanced portfolio of markets has ensured the delivery of marketing campaigns in New Zealand, the U.S., Germany, the UK, Singapore, China, the Middle East, Japan, India, Korea, Taiwan, and Hong Kong. The organisation’s global approach to tourism marketing is executed within the ‘One Voice’ approach under Tourism Australia’s “There’s nothing like Australia” brand”, amplifying the position of Queensland and its destinations across all communications platforms. The focus of the world’s tourism industry turned to Queensland in May 2014, when Cairns welcomed almost 2000 delegates from 38 countries for the Australian Tourism Exchange (ATE14), staged for the first time in a regional destination. This globally-significant trade event was hailed the most successful in the event’s 35-year history by delegates, reaching a record 100 per cent satisfaction rating from international buyers—a testament to Queensland’s tourism industry which 40 ❙ G20 Leaders’ 2014

welcomed delegates beyond expectation and demonstrated why Queensland is where Australia shines! By embracing the fast-evolving digital age TEQ is taking Queensland tourism to new frontiers like never before. To reach the Queensland tourism industry’s 2020 goal, TEQ needs to lead trends, seek innovation, evolve, adapt to challenges, break down barriers, and make the most of emerging opportunities. This focus saw more than 1000 people create the world’s biggest ‘Instameet’ across almost 90 Queensland locations, and the sharing of 6000 images of the state’s tourism experiences on Instagram in October 2014. For a taste, check out the 123,791 (and counting) stunning Instagram posts tagged #thisisqueensland. Other landmark digital marketing initiatives delivered by TEQ in the past 18 months include the world’s first 12-hour live underwater broadcast from the Great Barrier Reef and the staging of QTalks: A Digital Big Bang! which gave more than 150 Queensland tourism businesses the chance to learn the latest online marketing trends and tips from global IT leaders. In addition to delivering significant economic benefits throughout Queensland, a thriving tourism and events industry is also a great source of community pride. There is

strategic focus to support events that align with the destination’s brand, ensuring a sustainable events portfolio into the future. TEQ works to attract, develop, and promote major and regional events in Queensland that attract visitors to the state and in turn generate economic, social and community benefits. Queensland boasts a dynamic calendar of major and regional Queensland events, from the 2018 Commonwealth Games at the Gold Coast, triathlons and major surfing titles to world-class performances led by the Queensland Ballet under the direction of “Mao’s Last Dancer” Li Cunxin. During the past financial year TEQ’s diverse major event portfolio is estimated to have generated in excess of A$273 million in overnight visitor expenditure. TEQ has also created the most comprehensive portfolio of supported events of any state in Australia with more than A$23.5 million invested through its Regional Development Program across 1091 events since the program began in 2001. The organisation also acquired new events such as the Rugby League Four Nations Double Header, Country Music Channel (CMC) Rocks Queensland, and UCI Mountain Bike World Cup. Key major events in 2013-14 included the first solo Australian exhibition by one of the world’s greatest living artists, Cai Guo-Qiang. Falling Back to Earth featured two newlycommissioned works inspired by the landscapes of South East Queensland. The exhibition was the second most-attended ticketed exhibition in the Gallery’s history with a total attendance over 229,000, delivering an estimated economic impact of A$14.51 million and generating 115,000 visitor nights for Queensland. The Brisbane International 2014 is the flagship event for the Queensland Tennis Centre, which opened in January 2009. International tennis champion Roger Federer helped draw a record crowd of 105,730 attendees over the eight days of competition. The state looks forward to the Gold Coast 2018 Commonwealth Games to showcase its capacity to host world-class sporting events. A state-wide examination of the social impact of tourism on local communities by TEQ released in early 2014 reinforced that Queenslanders value tourism as one of the state’s four economic pillars. With Queensland’s people and its government so firmly behind the state’s tourism industry, the Destination Success vision is fast becoming a reality. ■

• The underwater wonderland of the Great Barrier Reef; • Tropical islands with world-class resorts; • The ancient Daintree Rainforest, the oldest in the world; • Queensland’s vast Outback with its infinite starry skies and colourful characters; • Spectacular surfing beaches along Queensland’s coastline; • The Gold Coast’s thrilling theme parks; • Sailing the azure waters and exploring the 74 island wonders of the Whitsundays; • Cuddling a koala at one of the many wildlife parks; • Fossicking for gems in Central Queensland; • Visiting the largest loggerhead turtle rookery in the South Pacific at Mon Repos near Bundaberg; and • Enjoing the distinct seasons and hospitality of locals during a road trip to Southern Queensland Country.

41_G20_BRISBANE_ADVERT_QLD2_1pp.indd 76

07/11/2014 07:32

Story / Gold Coast

Gold Coast, Australia: a city in transformation Now is the time to invest in the Gold Coast.

trategically located on the edge of the Asia-Pacific rim, with access to two international airports, the Gold Coast is perfectly positioned as a destination for business, investment, study, sport, events, tourism, and lifestyle. The Gold Coast stretches along 57 kilometres of coastline and is home to over half a million people. Beyond the city’s beautiful beaches are vast, sub-tropical rainforests with breathtaking scenery. The city enjoys a five-year average annual growth rate of 2.3 per cent and has access to an economic catchment of 3.6 million people. Welcoming close to 12 million visitors each year, the Gold Coast is Australia’s premier tourist destination, offering a vibrant mix of shopping, accommodation, theme parks, restaurants, entertainment, and an abundance of natural attractions. With a robust economy valued at A$25.2 billion, and an ambitious strategy that encourages innovation and sustainable growth, the Gold Coast’s future is promising. It is an economy that has grown from its basis in tourism and construction to a diverse, knowledge-based economic environment. New infrastructure and innovation in the Information Technology (IT), health, education, and advanced manufacturing sectors are redefining the Gold Coast’s economic profile and creating opportunities in education, research, employment, enterprise, and investment. As host city for the Gold Coast 2018

Commonwealth GamesTM (GC2018), the Gold Coast is embracing transformative civic projects like never before, with more than A$13.5 billion in major infrastructure projects planned or underway that will change the face of the city in a way that is distinctly its own. Approximately A$200 million in new world-class sporting infrastructure will be constructed in readiness for GC2018, building on the city’s existing high performance sports facilities. This includes the redeveloped Gold Coast Aquatic Centre which will be the centrepiece for the swimming and diving competition for GC2018, the construction of the Commonwealth Games Village and renovation of the existing Carrara Sport Precinct. At the city’s centre is the emergence of Southport, a modern CBD that is rejuvenated, dynamic, and vibrant; a place that will position the Gold Coast as a globally competitive business and investment destination. The City of Gold Coast is working to enable private investment and development by designating Southport as a Priority Development Area (PDA) of the State. The PDA affirms that the City of Gold Coast is open for business and has the capacity to attract foreign investment and facilitate development in the CBD. At the heart of the CBD is the recently completed A$1.6 billion light rail system that travels through a high density, complex, urban services environment. Stage one

links the city’s business, health, education, tourism and cultural centres; providing new opportunities for development around any one of the 16 stations along the 13-kilometre corridor. Within the CBD, Chinatown is currently under construction. The A$6.8 million precinct will bring a sense of home and community to locals and thousands of international students and tourists who come to the city each year. It will provide a new opportunity for cultural exchange, trade, and investment between Australian and key Asian partners. Enhancing the knowledge and creative industries is a key investment for the city. The A$365 million Gold Coast Cultural Precinct will celebrate, reflect, and build on our unique cultural identity and become a must-see visitor destination while supporting our arts and allied industries. The Gold Coast Health and Knowledge Precinct is home to a brand new teaching hospital, research and allied medical facilities, as well as a world class university, offering a dynamic location for a range of businesses to cluster and grow. With a stable political environment, a positive attitude towards growth and policies that encourage international investment and development, the Gold Coast is open for business. Combined with competitive residential, commercial, and retail real estate markets; and support from our business and investment team, now is the time to invest in the Gold Coast. ■ Brisbane. Australia 2014 ❙ 43

InspIred InspIredby bylIfestyle, lIfestyle, drIven drIvenby byopportunIty. opportunIty. The The Gold Gold Coast’s Coast’s iconic iconic beaches, beaches, world world heritage-listed heritage-listed rainforests rainforests and and climate climate setset the the scene scene forfor aa lifestyle lifestyle unrivalled unrivalled the the world world over. over. We We are are already already Australia’s Australia’s sixth-largest sixth-largest city city and and one one ofof itsits number number one one tourism tourism destinations, destinations, but but the the Gold Gold Coast Coast is is destined destined forfor greater greater things. things. Our Our city city is is rising rising toto emerging emerging opportunities; opportunities; it is it is energised energised and and rapidly rapidly building building onon itsits established established capabilities. capabilities. Major Major preparations preparations forfor the the Gold Gold Coast Coast 2018 2018 Commonwealth Commonwealth Games™ Games™ (GC2018) (GC2018) are are helping helping toto redefine redefine our our economy economy and and create create new new investment investment opportunities. opportunities. Our Our forward-thinking forward-thinking attitude attitude and and significant significant investment investment attraction attraction program program – the – the first first ofof itsits kind kind in in Australia Australia – make – make the the Gold Gold Coast Coast the the right right place, place, atat the the right right time, time, toto live, live, work, work, study, study, visit visit and and invest. invest. This This is is the the Gold Gold Coast. Coast. And And there’s there’s nowhere nowhere else else like like it. it.

www.businesssgoldcoast.com.au www.businesssgoldcoast.com.au

Focus Queensland / Beyond G20

Trade, investment and economic growth: Queensland beyond G20 “Queensland is Australia’s gateway to the world’s fastest growing markets in the Asia Pacific,” says Queensland Treasurer and Minister for Trade, the Honourable Tim Nicholls

hen Australia took on the 2014 G20 presidency, Queensland was the obvious choice as the state to hold the country’s most significant global leadership meeting. With five World Heritage-listed areas, five of Australia’s top 10 beaches, a powering economy and more than two million visitors a year, investors are moving in on Queensland. Queensland has been leading Australia’s economic growth for more than 20 years, built securely on the four robust pillars of agriculture, tourism, resources and construction. It has matured as a leader of the fastestgrowing region in the world—the Tropics— and has an increasingly strong reputation for ground-breaking science, education, technology and medical research. Queensland is committed to sciencedirected partnerships and investments across G20 countries. It has a supportive, probusiness, pro-growth government, a highly skilled workforce and sustained industry and population growth. Queensland Treasurer and Minister for Trade Tim Nicholls said the state was showcasing key opportunities in business, trade, and investment during the G20 Leaders’ Summit. “Queensland is Australia’s gateway to the world’s fastest growing markets in the Asia Pacific,” he said. “This natural advantage

is underpinned by a progressive, ‘open for business’ attitude supported by a businessfriendly state government committed to cutting red tape to allow business to create jobs and opportunities.” A July 2014 report by the Queensland Department of State Development, Infrastructure and Planning, noted there were now 9400 fewer government regulatory requirements than in March 2012 and a reduction in “green tape” had saved more than A$20 million.1 “We are committed to helping capitalise on the significant opportunities that exist for business, trade and investment in Queensland by ensuring our government approvals process is fast and efficient,” Mr Nicholls said. “Our economy is strong and stable. In fact, Queensland is fast becoming an economic powerhouse and is recognised by the World Bank as an innovation hub. Our economy outperformed the OECD average and is forecast to enjoy 6 percent growth in 2015-16. Over the past decade, annual construction work in Queensland has more than doubled to A$53 billion in real terms and the industry now directly employs nearly 250,000 people. Within this, engineering construction activity has undergone an unprecedented expansion, growing more than fivefold since 2003 to almost A$40 billion in 2013. Construction work, including engineering construction work, is at an all-time high in

Our ECONOMy IS STrONG AND STABLE. IN fACT, QuEENSLAND IS fAST BECOMING AN ECONOMIC POWErHOuSE AND IS rECOGNISED By THE WOrLD BANk AS AN INNOvATION HuB. 46 ❙ G20 Leaders’ 2014

Queensland. Approximately one third of all civil construction in Australia currently takes place in Queensland.2 Deloitte Access Economics reports that “Queensland has a proud history of its economic growth outpacing that of Australia as a whole and Deloitte projects that broad trend to continue over time.”3 Its universities and science and research centres are engaged in a wide range of research and development partnerships involving some of the world’s finest minds in medical science, agriculture, business, sport and the arts. A strong global focus Trade and Investment Queensland (TIQ) Chief Executive Officer Andrew Tulloch’s team smooths the way for those interested in exploring Queensland opportunities. “We have a truly global reach with 14 international offices and eight regional centres,” Mr Tulloch said. “We work with partner agencies, industry organisations and international allies to give Queensland companies better access to overseas markets and decision makers. “We help by working with international companies to identify investment opportunities and investment-ready projects. This could include resource, energy, construction, and food and agriculture projects. We are also interested in expanding the opportunities in new export markets. “TIQ works with exporters to provide market intelligence, state-wide and global business connections, and offer in-market introductions through targeted international trade missions.” Agriculture Queensland is the largest producer and

Beyond G20: Queensland, the economic powerhouse

Photos courtesy of the Queensland Government. Images by Ben Vos Productions

Economic growth comparisons

Economic growth by state 7

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exporter of beef in Australia and counts China as a key market for many agricultural exports, including beef. South Asia and South East Asia’s growing middle class is driving an increasing demand for food and fibre, placing Queensland in prime position to become a major supplier of high quality, safety assured food products. The new, privately-funded Brisbane West Wellcamp Airport, opening in late 2014, will have capacity to fly large volumes of international exports, including live cattle,

2013-14 VICTORIA

straight from the heart of Australia’s second-largest agricultural basin. Abundant resources helping to power the world renowned for its wealth of high quality coal, minerals and gas, Queensland’s miners are the largest private sector contributor to the Queensland economy, accounting for more than A$30 billion or 11 percent annually towards Queensland’s economic output.

NEW SOUTH WALES

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And as the world turns toward natural gas energy, Queensland remains at the leading edge. Exploration and development of unconventional gas and oil resources such as coal seam gas (or coal seam methane), oil shale, shale gas, and tight gas is about to come to fruition, with the world’s first LNG from coal seam gas (CSG) exports about to begin. Queensland is at the forefront of the CSG-to-LNG industry with first exports due by the end of 2014. › Brisbane. Australia 2014 ❙ 47

Focus Queensland / Beyond G20 Queenslands economic growth compared to Australias 10

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Queensland’s four pillar economy

› The ramp up in LNG production is expected to underpin a surge in exports which, combined with an improved domestic economy, is forecast to boost economic growth to an 11-year high of around 6 percent. Globally, the early development of the oil shale sector is gathering momentum. Queensland has extensive reserves of oil shale and has a number of proponents investigating potential projects. Development of the sector has the potential to contribute significantly to future exports. In 2014 Queensland re-opened its uranium industry, calling for mining development applications after a 25-year ban. Australia has the world’s largest reasonably assured resources (rAr) of uranium and is already the world’s third-largest producer of uranium, after kazakhstan and Canada. Queensland has a significant uranium potential, estimated at 165.95 million 48 ❙ G20 Leaders’ 2014

tonnes with a total uranium oxide content of 107,000 tonnes. Minister for Natural resources and Mines, the Honourable Andrew Cripps said bids would also be taken to mine high-value rare earths used in the manufacture of mobile phones, flat-screen televisions, magnets, rechargeable batteries, and defence systems, discovered along with uranium at sites such as Mary kathleen in western Queensland. Educating future leaders: Queensland’s growth hotspots, whether in construction, resources, agribusiness or tourism, are underpinned by innovation and a world class education system. The state attracts 160,000 international students a year to its world class universities. International education and training is the state’s fourth-largest export and second largest services export.

“We are presently hosting five international students who were the winners of Queensland’s ultimate Gap year competition. This competition offered winners return flights, accommodation, tuition and a paid internship to live, learn and play in Queensland for one year,” Mr Nicholls said. It attracted more than 300 applications and 150,000 votes with its social media reach extending beyond 4.5 million. “results like this show how much students from around the world want to be a part of Queensland.” ■ for more information on Queensland business, trade and investment opportunities, please visit www.tiq.qld.gov.au regions Q framework July 2014, DSDIP Sources: 2014 Major Projects report – Queensland Engineering Construction Outlook, BIS Shrapnel and IBISWorld. 3 2014 Deloitte Queensland Index 1

GREATER SPRINGFIELD A NATION BUILDING PROJECT

Recognised internationally, Greater Springfield is located 30 minutes from the Brisbane CBD and is Australiaâ&#x20AC;&#x2122;s fastest growing new city. As the only planned city in the country (outside of Canberra) major corporations and thousands of residents already call Greater Springfield home. For more information contact: David Henry, Chief Executive Officer d.henry@springfieldland.com.au I greaterspringfield.com.au

A CITY PLANNED FOR GREATNESS

Queensland Greater Springfield

Story / Springfield

Greater Springfield: a building block of the nation

A glimpse of what the future should look like, on Brisbane’s door step.

City founder and visionary Maha Sinnathamby

50 ❙ G20 Leaders’ 2014

Story / Springfield

ecognised globally as what future greenfield cities might or should look like, Greater Springfield on Brisbane’s door step, grabbed the attention of B20 delegates when they met in Australia recently to consider what advice the world’s business leaders might provide G20 leaders on sustainable communities and development. The city building project has so far attracted AUD A$10.7 billion in both private and public investment and represents an acclaimed long-term private-public partnership where private capital is pointing the way with all three levels of Australian government acting as facilitator and service provider. For example, in 2013, the Queensland Government opened an AUD A$1.2 billion dual rail and transport hub, quickly connecting what is the fastest emerging city in the country to Brisbane and the region. It’s estimated one million passengers are expected to have used the rail service by the end of 2014. Master-planned solidly around interconnecting pillars of health, education and information technology, Stage One of Health City, a uniquely designed 52 hectare e-medical health and wellness precinct located within Greater Springfield is underway with private funds and the backing of the Queensland government. It connects with Education City, which is a diversely framed education offering across more than 10 private and public schools, a University as well as other learning institutes. In 2015, GE Australia opens its first ever Queensland state headquarters in the middle of the fledgling city’s 390ha business centre. A futuristic complex specifically designed to accommodate and showcase the American corporate giant’s multiple business divisions. Greater Springfield plans to deliver at least one full-time job for every three residents. Founder and project visionary Maha Sinnathamby says the sustainability of this city-to-be is about total interconnectivity between guaranteed green spaces, affordable but diverse housing products and the immutable pillars already mentioned that dictate growth and prosperity. “Education is absolutely the currency of the future for us all and this in turn is sustaining the enormous efforts we are putting into creating a never before experienced health and wellness city.” he said. Winner of the 2010 FIABCI World’s Best Master Planned Community, the development has also just announced the construction of Australia’s largest foreign invested resort and together with a variety

The GE building

of high-end investment opportunities has approval for an additional 20 thousand medium to high density apartments in the transit oriented community. For the past nine years Greater Springfield’s Brookwater Golf and Country Club, personally designed by Greg Norman has been Queensland’s number one public access golf course. It is also the

current home of the prestigious Isuzu Queensland Open. “At this time of G20, I urge everyone to strongly consider the leading role that the private sector must take with governments worldwide to create real and lasting smart city solutions that are engineered to care for communities.” Mr Sinnathamby said. ■

At this time of G20, I urge everyone to strongly consider the leading role that the private sector must take with governments worldwide to create real and lasting smart city solutions that are engineered to care for communities.

International delegates visit Greater Springfield as part of Queensland 20 Construction Day

Brisbane. Australia 2014 ❙ 51

Focus Queensland / G20 Globe

Queensland Globe for G20: a spectacular Queensland project leading the way with open data Using a world-first Google Earth-based application, the G20 Globe is achieving its mission to allow access to explore open data on Queensland’s competitive advantages

The G20 Globe uses the latest in digital and interactive technologies allowing users to take a virtual journey into the heart of Queensland from any location in the world. Photo courtesy of the Queensland Government.

52 ❙ G20 Leaders’ 2014

he Queensland Globe is a world-first Google Earth-based application facilitating an information revolution across Queensland. For the first time in Australia, the state government is declaring its information open to the public. Data is being shared to empower people, companies, businesses, researchers, and non-government organisations to find new possibilities and solutions in positive and collaborative ways. The Queensland Globe was launched just 18 months ago as a major Open Data initiative charged with providing a simple, free means for the public to access and view all of the state’s open spatial data. Using the popular Google Earth application access to over 400 layers of data has been enabled, from land properties to mines, school locations to flood hazards, road crash locations to koala habitats. An amazing wealth of open data has been released and demand has been overwhelming with over 1.7 billion map requests delivered so far. The success of the Queensland Globe initiative has driven the creation of new services and apps and business is reporting significant productivity savings (up to 50 percent) over old, traditional ways of accessing data from individual agencies. As preparations for hosting the G20 began in earnest, the Queensland Globe team were set the challenge of specifically developing a G20 Globe. Its mission: to showcase all that Queensland has to offer to the world. In particular, the G20 Globe was developed with the goal of promoting the state’s trade, tourism, major projects, world-class skills and capabilities to G20 delegates and a global media audience, most of whom are visiting

Beyond G20: Queensland, the economic powerhouse

Queensland’s shores for the first time. Using a world-first interactive technology platform, the G20 Globe is achieving its mission. Through the G20 Globe, international visitors have a new and exciting way of exploring Queensland–including everything from information about local tourist attractions to the State’s trade relationship with Japan. Using geography as a framework, Queensland’s competitive advantages can be explored in detail across six economic sectors including agriculture, construction and infrastructure, resources, tourism, science and innovation and education and training; or alternatively from the perspective of a country with international ties or interests in Queensland. Each sector offers three rich and detailed story narratives to uncover. Within each story, the data has been categorised to provide easy comprehension of answers to key trade and investment-related questions. These narratives are supported by videos, statistics, and complementary spatial datasets which can be accessed several ways. The Queensland Globe for G20 has again used Google Earth to great effect but has also developed an app for mobile devices and produced a Commemorative Map which will be distributed to G20 visitors and to all schools in the State as a classroom resource. For delegates and members of the public alike in Brisbane during and after the G20 Summit, there will be the opportunity to visit several site locations around the city, but, most notably at Queensland University of Technology’s Cube facility, which will host an amazing interactive version of the G20 Globe. The G20 Globe is easy to use and caters for all levels. The latest in digital and interactive technologies have been harnessed, allowing users to take a virtual journey into the heart of Queensland from any location in the world. Users can choose to interact with the G20 Globe in a variety of ways, doing anything from watching videos and animations to searching statistics, reading case studies, viewing imagery, or exploring maps and spatial data. As the full potential of the G20 Globe is realised, it is becoming apparent that success will also be achieved domestically. Through the G20 Globe, schools now have a new way to educate the next generation in science, technology, engineering, mathematics, and local tourism, agriculture, construction, and resources. The state government will have a G20 legacy product that clearly demonstrates it is innovative, modern, digitally switched-on, and open for business. ■ To read more about the G20 Globe visit http://www.tiq.qld.gov.au/g20/ queensland-globe-for-g20/

The G20 Globe is a world-first interactive platform providing detailed information about six economic sectors across Queensland including agriculture, construction and infrastructure, resource, tourism, science and innovation and education and training.

ThE G20 GlOBE IS EASy TO USE AnD CATErS FOr All lEvElS. ThE lATEST In DIGITAl AnD InTErACTIvE TEChnOlOGIES hAvE BEEn hArnESSED, AllOWInG USErS TO TAkE A vIrTUAl JOUrnEy InTO ThE hEArT OF QUEEnSlAnD FrOM Any lOCATIOn In ThE WOrlD. Beyond Queensland The Queensland Government invites other cities, states and nations to build on the data and information available in the Queensland Globe for G20. Open data offers a new start for economic reform and productivity growth, promoting the themes of the G20 agenda—trade, finance, fiscal and monetary policy, anti-corruption, employment, energy, and infrastructure—and offering potential to achieve more than half of the G20’s 2 percent growth target (Lateral Economics, 2014). As a collaborative tool, the G20 Globe’s potential continues to grow as a flagship product of the knowledge economy.

Brisbane. Australia 2014 ❙ 53

Story / Queensland University

54 ❙ G20 Leaders’ 2014

Story / Queensland University

Innovation and technology converge at QUT A world-first interactive platform that displays a vast amount of the government’s open data sets and satellite imagery, the Cube Globe enables G20 delegates, business leaders, expert groups, media and visitors to easily explore trade and investment opportunities within Queensland.

UT’s ongoing drive to strengthen its STEM teaching and research (science, technology, engineering, and mathematics) hit new heights in 2013 when the A$230 million Science and Engineering Centre opened on the highly successful Queensland university’s campus at Gardens Point. The two high-rise glass towers next to the Brisbane River provide an impressive new landmark for the city’s CBD and a new technology-rich hub for the campus. In addition to benefiting students, teachers, and researchers, the centre’s world-best digital technology has also drawn in the general public, thanks to The Cube. The Cube is one of the world’s largest digital interactive learning and display spaces, with massive screens soaring two storeys high inside the centre. Its advanced technology comprises 190 square metres of high-definition screens, including 48 touch panels, which integrate with 14 high-definition projectors to reach a massive 115-megapixel resolution. Those immense screen walls are equally at home showing the aquatic—and interactive —wonders of a virtual reef, or being used by researchers to display, analyse and visualise complex data and work. QUT’s Visualisation and eResearch team is partnered with the Queensland Government to build the Cube Globe for the G20 Leaders’ Summit in Brisbane in November 2014. A world-first interactive platform that displays a vast amount of the government’s open data sets and satellite imagery, the Cube Globe enables G20 delegates, business leaders, expert groups, media and visitors to easily explore trade and investment opportunities within Queensland. Underpinned by hard data, the Cube Globe provides information on Queensland’s performance in key economic sectors by using

a combination of immersive visualisation, interactive maps, animation, and multimedia design. The Science and Engineering Centre’s laboratories and research areas are complemented by a plethora of open plan gathering areas that blur the line between study and social spaces with their intriguing interior design and retro furnishing. The precinct-style redevelopment of the south-east area of Gardens Point campus also includes university and community facilities such as a 50m indoor pool, gym, cafes, function spaces, and retail outlets. The push to boost QUT’s STEM capabilities over the past decade has been closely tied to the university’s key strategic planning document, the Blueprint, and the Commonwealth Government’s focus on increasing the study of STEM subjects in schools and at universities. The Cube alone is a unique technical accomplishment that took QUT developers more than two years to build. A certified 5-star Green Star-rated building, the Science and Engineering Centre is a sustainability showpiece—so green that it is even powered by rooftop ‘solar trees’ that are programmed to follow the sun and draw maximum energy. Fittingly, the centre is also home to the university’s newest institute, the Institute for Future Environments. More than 300 scholars in science, engineering, mathematics, business, creative industries, and law work together to seek solutions to some of the world’s most pressing problems, ranging from global food security to managing scarce natural resources. The Science and Engineering Centre, opened in 2013, was jointly funded by the Commonwealth Government (A$75 million), Queensland Government (A$35 million), The Atlantic Philanthropies (A$25 million), and QUT (A$95 million). ■ Brisbane. Australia 2014 ❙ 55

Focus Queensland / Innovation Authored by: Dr. Peter W. Beven

Open Innovation: the challenges for industry and universities The G20 Global Business Challenge is a global innovation competition—a joint initiative of three of Australia’s leading universities, the Queensland University of Technology, The University of Queensland and Griffith University.

ince American organisational theorist Henry Chesbrough first coined the phrase ‘open innovation’1 in 2003, companies have been frantically scrambling to change their respective business models in support of innovation. This has resulted in a broad shift from ‘closed’ innovation systems—where companies have their primary focus on internal R&D and product development—to that of ‘open’ innovation—a proactive environment to encourage greater flows of intellectual property (IP) and know-how between

56 ❙ G20 Leaders’ 2014

different organisations for sharing, product development, and commercial exploitation. This open innovation movement has become the catch cry for modern business, no matter what business you happen to be in. Sounds great, doesn’t it? Well, in a pragmatic sense, the answer depends entirely on who you are. Take, for example, Unilever, a multinational giant in Fast Moving Consumer Goods (FMCG) where new product development is their lifeblood. The shift to open innovation has not resulted in a reduction in their total R&D

spend (around US$ 1.2B in 20142 alone) but rather has resulted in opening up its engagement model to be smarter about the ways in which third parties—from researchers, inventors, small and medium sized firms through to other industrial giants—can engage with the company through collaboration. As Unilever plainly states on its website, “We know that the world is full of brilliant people, with brilliant ideas—and we are constantly looking for new ways to work with potential partners”3. Similarly, open innovation is not confined

Beyond G20: Queensland, the economic powerhouse

to the corporate sphere. Take government as an example. Governments globally are looking at smarter ways of delivering more and better public services, often in an environment of severe and increasing resource constraint. As a result, new models of development and delivery are becoming evident: co-design with the public for new services; more modern approaches to partnering with service providers; and innovation pilots embracing digital disruption. The list goes on and all of it demonstrates open innovation in practice. At the other end of the spectrum we need to consider the role of universities and government research labs in support of open innovation. While collaborative research activity has been a mainstay of the university business model for many decades, their overall rates of collaboration with industry across the ball are less then enviable. This is partly cultural and stems from the traditional business models of universities globally. In an environment where rewards come from success measures such as grant funding levels, publications, and patent application rates, the focus on the diffusion of technology to industry through technology transfer has been low on the priority list. Efforts to support the facilitation of technology transfer commonly become thwarted by over-focus on IP ownership and control as well as the enormous difficulties faced by industry in engaging—such as just how long it takes to ‘do a deal’. Further, this situation is exasperated by a general lack of appreciation of the commercial drivers faced by industry with respect to product development cycles where, for example, speed to market is cited repeatedly as a key success factor in getting new products to market4. In fact, the gap between R&D input measures and how these inputs translate into commercial benefit is significant. Let’s compare Australia to G20 Member countries5. In the recently released Global Innovation Index 2014, which ranks the world’s economies in innovation performance, Australia ranks a very credible 4th amongst G20 member countries for Innovation Inputs (10th globally). This would strongly suggest that our research environment is robust and world-class. However, when examining the key measure of Innovation Linkages as an indicator of open innovation activity, Australia ranks 12th amongst G20 member countries and 48th globally. This is not a uniquely Australian phenomenon. All of the G20 member

countries, with the possible exception of the U.S. and Germany, have a distinct and significant disparity between Innovation Input and Innovation Linkage measures. This poses a very important question: is the business model of universities to support open innovation broken? Unfortunately the answer undoubtedly is, at least in part, yes. Universities are missing the opportunities afforded by participating in a truly open and global innovation economy because we are based in the old world business practices defined by bricks and mortar institutions. Traditional educational institutions are missing out on the full benefits of participating in the global innovation economy. Further, our over-focus on IP ownership and control, as well as the old 1990s business model of technology transfer rather than more open models of diffusion of both technology and know-how, means missed opportunity. After all, the real wealth of the research institutions will never be in patented technologies, although they have their place. Rather, it is in the minds and experiences of the world-class researchers, academics, and new generations of students that are still largely an untapped resource for industry in both creating the basis of new-to-the-world products but, more importantly, in solving the increasingly complex problems being faced by the world. The good news is that a diverse range of new initiatives have more recently arisen out of universities that embrace open innovation. One such initiative is that of the technology and business challenge—the leveraging of competitive environments specifically designed to solve problems by individual companies. While not confined to the university sphere—after all they originated with the likes of 3M, Proctor & Gamble and other multinational corporations as a means of identifying new product concepts and new technologies—they have nevertheless become a regular fixture on the university landscape. Usually positioned as ‘graduate student competitions’ by either graduate business schools, or ‘technology challenges’, by engineering and science based institutions, they attract high levels of student and researcher engagement as well as industry buy-in through sponsoring specific challenges. This year’s G20 Leaders’Summit has seen the spawning of a new generation of competitions aimed not at company-specific problems, but rather industry and economy level challenges. The G20 Global Business Challenge is a global innovation competition specifically › Brisbane. Australia 2014 ❙ 57

Focus Queensland / Innovation

Global Innovation Index Data for G20 Members

Source: Global Innovation Index 20146

› designed to facilitate collaboration between business and technology postgraduate students within and across institutions, industry, and the broader research community. A joint initiative of three of Australia’s leading universities, the Queensland University of Technology, The University of Queensland, and Griffith University, and with support from the Queensland and Australian governments and industry, the G20 GBC has already been seen as an enormous success and a strong demonstration of university support for open innovation. The 2014 competition was specifically designed to address the global water problem. Water, or its increasing scarcity, has emerged as a key challenge for governments, industries, and communities globally. As a consequence, this year’s G20 GBC saw 40 teams from 18 countries submit innovative solutions directly addressing this challenge. One interesting feature of the teams selected to compete in the finals is the strong focus on collaboration: 4 of the 6 finalist teams comprise student members across multiple disciplines; have representative postgraduate students from at least three universities; and have strong engagement with industry as

either technology collaborators, advisors, or mentors in helping shape the most practical and best solutions possible. The Queensland Government has been a strong supporter of the G20 Global Business Challenge given its focus on water for 2014. Water is one of the highest priorities for government. Every Queenslander expects and relies on secure supplies of high-quality water services to support their livelihoods and lifestyles. Government, in responding to these needs and expectations, wants active discussion and participation in creating a new path for Queensland’s urban water future in urban, rural, regional and remote communities. Government understands how water impacts the health, wellbeing, and prosperity of all Queenslanders, no matter where they live, and underpins business, agriculture, and the sustainability of the natural environment. The vision is to create a Queensland water sector with the capability to deliver integrated catchment-based recreation, water supply, sanitation, irrigation and environmental services at lowest cost. To help achieve this vision it has supported the G20 GBC as a way to identify possible solutions to the problems faced in water management across the state.

Henry Chesbrough, Open Innovation: The New Imperative for Creating and Profiting from Technology” (2003) http://www.unilever.co.uk/aboutus/ 3 http://www.unilever.com/innovation/collaborating-with-unilever/open-innovation/ 4 For example, Cooper R., & Kleindschmidt E., (2007) Winning Busienss in Product Development, http://www.stage-gate.com/newsletter/downloads/WP_26_WinningBusiness.pdf 5 With the exception of EU as a single G20 member country representative 6 http://www.globalinnovationindex.org/content.aspx?page=data-analysis 1

58 ❙ G20 Leaders’ 2014

THIS yEAR’S G20 LEADERS’ SUMMIT HAS SEEN THE SPAWNING OF A NEW GENERATION OF COMPETITIONS AIMED NOT AT COMPANy-SPECIFIC PROBLEMS, BUT RATHER INDUSTRy AND ECONOMy LEvEL CHALLENGES. Universities continue to support and engage in initiatives such as the G20 GBC, while at the same time re-inventing their business models through reducing barriers for industry access to the knowledge resources locked away within those institutions and its people. They are also modernising their technology transfer support programs for more timely and commercially-focused engagement. When this is achieved, open innovation will cease being a ‘movement’ and become an embedded and common feature of the business landscape—no matter what business you happen to be in. ■

ABOUT THE AUTHOR Dr. Beven is with the Graduate School of Business in the Queensland University of Technology where he teaches innovation, intellectual property management and strategy in the schools graduate award and executive programs. He is a member of AIM300—a group of the most 300 most influential intellectual property strategists globally— and advises extensively to industry and government on technology transfer and innovation. He is the Director of the G20 Global Business Challenge.

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Focus Queensland / Science

Queensland science breakthroughs and world firsts The Queensland Government is focused on using science, research and innovation to promote economic growth and opportunity in Queensland.

The Nanopatch has the potential for significant global impact. Image Copyright Credit: Kendall/D2G2 Research Group

ccording to Queensland Chief Scientist, Dr. Geoff Garret AO— a former leader of Australia’s renowned science agency, the Commonwealth Scientific and Industrial Research Organisation (CSIRO)—Queensland is a place where there are endless opportunities in the science space: “There is a real ‘wow factor’ in Queensland!” he says. “Behind the doors of our institutes and universities are research projects and discoveries producing incredible results that are making a real, positive difference on the world stage. Queensland is unlike most places in the world; we have some unique advantages and challenges and, 60 ❙ G20 Leaders’ 2014

as such, have developed unique strengths and expertise to share. “The Queensland Government is focused on using science, research, and innovation to promote economic growth and opportunity in Queensland. Significant investments in science and research—A$9 billion over 15 years—have funded research and established numerous world-class research institutes (such as the Translational Research Institute, Ecosciences Precinct, and Health and Food Sciences Precinct) which have paved the way to many breakthroughs and world-firsts. If applied properly, good science can have a tremendously positive impact. We are passionate around translating our great ideas into great outcomes, with a focus on: taking our research from laboratory

to market; ensuring our universities and institutes are working closely with industry; and collaborating with our international counterparts to identify areas to which good science can be applied. That’s what the following breakthroughs are about—clever people identifying a need or issue that science can address, and working together to make meaningful and tangible contributions.” Medical Gardasil set to reduce cervical cancer deaths by two-thirds Gardasil is a vaccine used to prevent strains of human papillomavirus (HPV), which cause an estimated 70 percent of cervical cancers worldwide. HPV is also responsible for most

Beyond G20: Queensland, the economic powerhouse

anal, vulvar, vaginal, and penile cancer cases, and the majority of incidences of genital warts. Developed by scientists Professor Ian Frazer AC and the late Dr. Jian Zhou from the University of Queensland, in parallel with researchers in the United States, Gardasil is the second cancer-preventing vaccine, and the first vaccine designed to prevent a cancer. “It’s really exciting to see that if you put your mind collectively to a problem, a whole group of scientists working together on something, then you can come up with the answers,” said Professor Frazer. According to the U.S. National Cancer Institute, widespread use of this vaccination has the potential to reduce cervical cancer deaths around the world by as much as two-thirds. Health care cost will also be reduced as the vaccines can minimise the need for medical care, biopsies, and invasive procedures associated with abnormal Pap tests. Gardasil use has been approved in more than 120 countries (including the U.S., Australia, Canada, the United Kingdom, and the European Union) and, as of April 2014, more than 170 million doses of Gardasil had been distributed world-wide. Nanopatch to drastically improve the reach of vaccines worldwide The Nanopatch™—invented by Professor Mark Kendall from the University of Queensland—is a needle-free vaccine delivery system set to drastically improve the reach of life-saving vaccines. The Nanopatch prototype contains hundreds of tiny projections, each dry coated with vaccines against viruses like influenza, human papillomavirus, and malaria. Most vaccines are injected into muscle where there are comparatively few immune cells, but the Nanopatch delivers vaccines just below the skin where immune cells are abundant—presenting the possibility of using a fraction of the traditional dose. Other limiting factors of traditional needle and syringe delivery are also overcome. Needle phobias, which prevent people from being vaccinated, will be a thing of the past; needle stick injury risks will be greatly minimised; and transportation costs and logistical difficulties will be substantially reduced. Professor Kendall said in the event of a pandemic, these patches could be posted out to thousands of people because they don’t need refrigeration and can be self-administered. The device—the technology for which has been licensed to U.S.-based pharmaceutical

Research conducted at UQ by Professor Ian Frazer AC (pictured) and the late Dr. Jian Zhou on virus-like particles led to the development of the world’s first cervical cancer vaccine.

company Merck & Co—is under rapid research and development to product through Australian start-up company Vaxxas. U.S. and Denmark inject funds into Australian chronic pain treatment More than 1.5 million people worldwide suffer inflammatory and neuropathic pain (a type of nerve pain most commonly associated with cancer chemotherapy, diabetes, peripheral nerve injury, and osteoarthritis). Earlier this year, A$48 million in funding was secured by an Australian company developing a chronic pain treatment—the drug EMA401— based on research led by Professor Maree Smith at the University of Queensland. The funding for Spinifex Pharmaceuticals Pty Ltd, founded by UniQuest in 2005, came from a syndicate of investors, including Danish venture capital firm Novo A/S and U.S.-based investors Canaan Partners. The clinical trials of EMA401, as an oral treatment for neuropathic and inflammatory pain, will be rapidly advanced and ultimately bring a much-needed treatment option to patients suffering chronic pain. Professor Smith said the funding reflected the notion that excellent researchers who are part of a purposeful commercialisation strategy can deliver tangible benefits to a vast community.

Food Super bananas to lift the health and well-being of millions in Africa The world’s first human trial of pro-Vitamin A enriched bananas, expected to have a huge positive impact on staple food products across much of Africa and lift the health and well-being of millions, will commence soon. The Highland or East African cooking banana has low levels of micronutrients—particularly pro-Vitamin A and iron. Vitamin A deficiency leads to an impaired immune system and can even impact brain development. Approximately 650,000-700,000 children worldwide die from Vitamin A deficiency each year, and at least another 300,000 go blind. With close to A$10 million support from the Gates Foundation, Distinguished Professor James Dale from the Queensland University of Technology (QUT) is leading one of the most significant biofortification projects in the world today. The bananas, harvested from the QUT field trial in north Queensland, will be transported to the United States for the world-first six-week human trial. “Human trial is a significant milestone for this project which started in 2005 and, working with Ugandan scientists, we should see pro-Vitamin A enriched banana varieties commercialised for uptake by Ugandan farmers › Brisbane. Australia 2014 ❙ 61

Focus Queensland / Science

Professor Matt Sanders, Founder of the Triple P–Positive Parenting Program–one of the world’s most effective parenting programs.

› around 2020,” said Professor James Dale. “Good science can make a massive difference here and provide poor and subsistence-farming populations with nutritionally rewarding staple food.” Producing the world’s most efficiently and sustainably farmed prawn James Cook University research will help establish the world’s largest black tiger prawn farm, and develop genetically superior seafood for international markets. The project, Unleashing the Tiger, will lead to the most advanced selective breeding program for this important aquaculture species globally by developing and implementing advanced genetic animal breeding technologies to produce prawns that grow faster, are tolerant to disease, and are more attractive to buyers. In a world first, leading experts in aquaculture genetics, genomics, prawn husbandry, and diseases will work alongside terrestrial animal breeders and the Australian Genome Research Facility to use information within the prawn genome to identify prawns with elite characteristics. The project’s Chief Investigator, Professor Dean Jerry, said Unleashing the Tiger would revolutionise the farmed black prawn sector, and significantly contribute to Australia’s food security and export earnings by producing the most efficient and sustainable prawn to farm globally. 62 ❙ G20 Leaders’ 2014

“This will be a product with quality attributes that the whole world will want to buy and consume,” Professor Jerry said. World breakthrough in harsh climate adaptation Queensland’s Sorghum Research Program—aimed at developing sorghum seed lines to enhance the productivity and sustainability of grain and livestock industries—is a collaborative partnership between the Grains Research Development Corporation, seed companies, government, universities, and the Gates Foundation. The program has led to sorghum yield increases, adaptability to climate variation, a reduction in spraying to control sorghum midge, and advances in breeding techniques, physiology and bioinformatics. The Queensland discovery of the “Stay Green” gene complex has been a world breakthrough in harsh climate adaptation resulting in increased yield, larger grains, reduced lodging, and more efficient use of water. These results help position Queensland at the forefront of agricultural innovation. Social Queensland’s Positive Parenting Program helping world-wide The Triple P–Positive Parenting Program— is one of the world’s most effective parenting programs. Cited by organisations such as the World Health Organisation and the United

Nations, it has been translated into 22 languages, and is used in more than 20 countries, including the US, Canada, Japan, Turkey, the Netherlands, the UK, and Germany. It is the most extensively researched parenting program in the world and based on evidence from 30 years of ongoing scientific research. Developed by clinical psychologist Professor Matt Sanders and his colleagues at the University of Queensland, Triple P has reached millions of families across cultures, socio-economic groups and in many different family structures. Triple P is a system of parenting and family support programs designed to prevent, as well as treat, behavioural and emotional problems in children and teenagers. It aims to prevent problems in the family, school, and community before they arise and to create family environments that encourage children to realise their potential. The benefits can be dramatic and long-lasting. Designed as a public health-based approach to parenting—typically implemented by government or organisations across regions or countries—Triple P is distinctive in that it is not a “one-size-fits-all” course. Its system offers a choice of programs of increasing intensity which give parents the skills to parent well and the right amount of help for their needs. This approach guards against over-servicing and over-spending, which is good for both parents and budgets. ■

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Focus Queensland / Supply chains

Global Supply Chains: Australia’s role and Queensland’s future connectivity In today’s multi-layered, interconnected world, global supply chains are vital to the survival and growth of any economy.

Photo courtesy of Brisbane Airport Corporation

ueensland’s natural resources, fertile agricultural regions, and technological and scientific innovation make it a logical and efficient link in global supply chains. The soy milk you drink in Beijing may be sweetened with high-grade sugar from Queensland’s tropical north; the cotton sewn into saris in India or high fashion in Italy could be from Australia’s largest cotton farm, Cubbie Station in Queensland; and the tender, teppanyaki steak from that five-star restaurant in Tokyo may have grazed in green Kilcoy pastures behind the Sunshine Coast. Stadium lights at the 2014 FIFA World Cup were kept ablaze by Queensland innovation, the same ingenuity behind mining software used worldwide and the revolutionary Gardasil vaccine against cervical cancer. Within months, Queensland will start exporting its newest resources—LNG created from natural gas in coal seams— to supply power to countries throughout

64 ❙ G20 Leaders’ 2014

Asia and beyond. And your future mobile phone, flat-screen television, batteries, or even defence system could incorporate the high-value rare earths discovered alongside uranium deposits in western Queensland. In today’s multi-layered, interconnected world, global supply chains are vital to the survival and growth of any economy. Queensland has spent decades developing those chains, becoming an integral link in worldwide resources, agribusiness, science, technology, and construction. A culture of ongoing innovation, diplomacy, passion, and relationship-building strengthens those chains. Its reputation for superior, safe, and sustainable horticulture, beef, grain, and seafood have helped develop and expand global supply routes for these in-demand products—particularly as Asia’s growing middle-class seeks more high-quality, safe food. Earlier this year, the first fresh milk from southern Queensland dairy farms was flown

to China, where its reputation for safety and quality commands a supermarket price of A$9 a litre. The deal will see an extra 20 million litres of fresh milk hit China’s shelves in the next year. The state’s reputation for some of the world’s finest meat, livestock, and meat products is backed up by the Australian National Livestock Identification System. This allows individual animals or herds (according to market requirement) to be tagged at birth and registered on a national database. The animal can be individually identified and tracked, even back to its region, feedlot or home farm. Queensland is Australia’s largest producer of beef and veal. This system delivers safety assurance to its meat and livestock export markets, including Europe, Japan, and Saudi Arabia, and guarantees its reputation as a supplier of choice. About 6,500 exporters currently take Queensland’s value-added products and services to the world.

Beyond G20: Queensland, the economic powerhouse

By JuNE 2014, ThE ToTAL vALuE oF KNoWN mAJor INvESTmENT proJECTS uNdEr CoNSTruCTIoN IN QuEENSLANd WAS ABouT A$98 BILLIoN.

Queensland has an established track record for entering partnerships or joint ventures with major overseas construction firms in the delivery of new infrastructure projects throughout Australasia. Queensland leads the country in the areas of civil and overall construction, accounting for almost 33 percent of all civil construction in Australia. The construction sector is the largest private sector contributor to the Queensland economy, with projects contributing 11 percent annually towards Queensland’s economic output. By June 2014, the total value of known major investment projects under construction in Queensland was about A$98 billion. A further A$93 billion worth of investment projects were either committed to or under consideration. Queensland is the world’s largest exporter of coking coal, the second largest producer of lead, and the third largest producer of zinc. It exported a record 209 million tonnes of coal in 2013-14.

Coal is shipped out through the major ports of Abbot point, Brisbane, Gladstone, hay point, and dalrymple Bay. Queensland supplies coking and thermal coal to China, Japan, India, Korea, Taiwan, Singapore, the Netherlands, Brazil, Germany, France, and many other countries. Queensland has attracted global recognition for its mining equipment, technology and services (mETS) sector, with more than 400 firms based in the state. These firms are intrinsic to global supply chains for mining projects including exploration, feasibility studies, planning, construction, production operations, equipment, and rehabilitation. plant and equipment manufactured by Queensland companies is used to produce mineral and energy resources on every continent. Queensland’s firm focus on infrastructure and trade support has given international investors the confidence to invest vertically in product supply chains. Chinese food giant CoFCo has bought sugar cane farms, a sugar mill, and sugar cane railway in North Queensland, exporting raw sugar to its refineries in China. Indian mining giant Adani has invested heavily in mine, rail, and port infrastructure in Queensland. It plans to develop Australia’s largest coal mine, the A$16 billion Carmichael project near the Queensland town of Clermont, as well as a railway and a major expansion of the North Queensland port of Abbot point in order to take its estimated 60 million tonnes of coal to market each year. Abbot point, close to two major Queensland coal basins, is one of Australia’s most significant emerging bulk ports and is undergoing a major expansion into a global port precinct. The port of Townsville is also undergoing a A$1.49 billion expansion. deepwater ports are also close to completion at Curtis Island, near Gladstone, where three new A$20 billion LNG plants will export their product to the world. Queensland’s 15 trading ports exported 238 million tonnes of goods in 2012-13. The largest multi-commodity port, the port of Gladstone, houses the world’s

fourth-largest coal export terminal. It exported 85.29 million tonnes of cargo in 2012-13, 67 percent of which was coal but also included grain, cement, fly ash, aluminium, calcite, and other goods. The port of hay point, also one of the world’s largest coal export terminals, shipped out a total of 94.2 tonnes of coal in 2011-12. Queensland has four international airports— with major airlines flying to all corners of the world—in Brisbane, the Gold Coast, Cairns, and hamilton Island on the Great Barrier reef. Brisbane Airport is building a new parallel runway is scheduled to be completed by 2020. The runway will deliver a regional economic benefit of around A$5 billion per year by 2035 and allow the same level of capacity as hong Kong and Singapore airports. They will soon be joined by the new Brisbane West Wellcamp Airport, owned and built by one of Queensland’s largest construction and mining services companies, Wagners. Wellcamp is expected to extend global supply chains with its capacity to fly large volumes of international exports, including live cattle, straight from the heart of Australia’s second-largest agricultural basin. Transport infrastructure is constantly maintained, upgraded, and expanded. The Queensland Government has pledged to set aside A$8.6 billion to support vital infrastructure from a planned asset-leasing strategy. Current infrastructure projects include a second, multi-billion-dollar heavy vehicle route from the agricultural hub of Toowoomba to Brisbane. major road upgrades are increasing access to the Brisbane domestic and international airports, while rail infrastructure upgrades are underway throughout south-east Queensland. major improvement projects on the Bruce highway, the Gateway motorway, and the Warrego highway will benefit from A$13 billion set aside for Queensland roads in the 2014 federal budget. With outstanding resources, sought-after agricultural products, technical innovation, and a sophisticated logistics and transport infrastructure, Queensland’s key role in global supply chains can only strengthen. ■ Brisbane. Australia 2014 ❙ 65

Focus Queensland / Construction

Building a strong future: Queensland Construction Construction is the largest private sector contributor to the Queensland economy, accounting for A$30.8 billion or 11.6 percent of the gross state product.

reative, confident, clever and often spectacular—that’s the style of construction and architecture which has grown up in Australia’s vibrant powerhouse state of Queensland. Inspired by ancient rainforest, stunning beaches, the wide horizons, red dirt, and yellow grasses of the outback cattle country and the deep vitality of the Pacific Ocean and Great Barrier Reef, Queensland’s built environment was always going to be something special. Its architects are winning hearts and minds around the world with their flair for sustainable, resilient, and exceptional designs, while engineers are leading the way on ecological innovations to manage energy and water use. Construction work, including engineering construction, is at an all-time high in Queensland, where about a third of all civil construction in Australia happens. Over the past decade, annual construction work in Queensland has more than doubled to A$53 billion in real terms and the industry now directly employs nearly 250,000 people. Within this, engineering construction activity has undergone an unprecedented expansion, growing more than five-fold since 2003 to almost A$40 billion in 2013. By June 2014, about A$98 billion in known major investment projects were under construction in Queensland. A further A$93 billion worth of investment projects were

either committed to or under consideration. Some of Queensland’s recently-completed, acclaimed buildings include the inspiring Translational Research Institute, the University of Queensland’s intelligent Advanced Engineering Building, the distinctive Kurilpa Bridge, supporting pedestrian traffic between Brisbane’s city centre, and the South Bank arts precints, the clever ‘living tree’ design of the Lady Cilento Children’s Hospital, opening in November 2014, and the elegant grandeur of the Brisbane City Hall Restoration. The buildings are among a raft of spectacular new projects which have already collected dozens of architecture, design, and construction awards. Queensland’s green building and design credentials are highly prized around the world. Queensland Government Architect Malcolm Middleton said Queensland architects understood their roots in the tropical and sub-tropical worlds and in the AsiaPacific region. “They are delivering work to a world-class standard,” he said. “[These projects] demonstrate a creative confidence of time, space and place as well as showcasing the exceptional construction skills available to realise such quality of design work.” Construction is the largest private sector contributor to the Queensland economy, accounting for A$30.8 billion or 11.6 percent of the gross state product. Its high-profile success stories include the

MORE THAN ANy OTHER AUSTRALIAN CITy, BRISBANE HAS TRANSfORMEd TO A WORLd STANdARd CITy IN A vERy SHORT TIME,” SAId MR CHRIS fREEMAN, QUEENSLANd 20 CONSTRUCTION WORKSTREAM LEAdER, WATPAC CHAIRMAN. 66 ❙ G20 Leaders’ 2014

South Bank Riverside precinct—the “outdoor living room” of Brisbane - and the masterplanned community development of Greater Springfield, home to more than 26,000 within a 40-minute rail commute of Brisbane. The A$32 billion Springfield project is the largest of its type in Australia. It has an ultimate planned population of 105,000 and is recognised as a technologically-advanced centre for living, business, health, retail, sport, entertainment, and education. Queensland 20 (Q20) Construction Workstream Leader, Watpac Chairman Chris freeman welcomed dozens of delegates from China, Hong Kong, Taiwan, Japan, Korea, Singapore, and New Zealand to a unique Queensland Construction day tour in July 2014, showcasing several major construction projects. “More than any other Australian city, Brisbane has transformed to a world standard city in a very short time,” Mr freeman said. “It is now a thriving, energetic place with exceptional standards of public infrastructure. “The work of the architects, engineers and urban designers, combined with a progressive and efficient construction industry have created this significant legacy of high standard urban investment…this city has become a sought-after destination.” In a vote of confidence for Queensland, one of the world’s most famous architects and the first woman to win the coveted Pritzker Architectural Prize, dame Zaha Hadid, has just announced Brisbane as the site of her first Australian project. dame Zaha and Queensland developer Sunland are planning three futuristic towers, resembling champagne flutes, on a prime piece of Brisbane riverfront land. The A$420 million Grace on Coronation design includes parkland and preserves a heritage-listed 1860s home which hosted Britain’s Edward, Prince of Wales, in 1920. Queensland’s pace of investment and construction is fuelled by its strong economy—forecast to reach six per cent in

Beyond G20: Queensland, the economic powerhouse

The proposed Grace on Coronation residential development by Sunland Group in Toowong. Designed by Pritzker Architecture Prize winner Dame Zaha Hadid.

Photo Courtesy of Brisbane Marketing

2015—and the state government’s commitment to growth and development. The government has announced a plan to dedicate A$8.6 billion to support infrastructure considered vital to economic growth, jobs and regional communities. In further support of construction projects, a July 2014 report by the Queensland department of State development, Infrastructure and Planning, noted there were now 9400 fewer government regulatory requirements than in March 2012 and a reduction in ‘green tape’ had saved more than A$20 million.

Queensland’s unique meld of architectural design, innovative engineering and skilled construction is celebrated in the newlycompleted and spectacular Alkira Resort House, in Tropical North Queensland’s Cape Tribulation. Insulated with new and recycled concrete, powered by the sun and able to harvest and recycle up to 250,000 litres of water, Alkira is built to withstand a Category 5 cyclone and flooding. The engineering is so strong that the entire home qualifies as a cyclone shelter. Awarded far North Queensland’s 2014 House of the year by the Australian Institute of

Architects, Alkira is in the only place on the planet covered by two World Heritage listings –the Great Barrier Reef and the Wet Tropics. designed by North Queensland-based Charles Wright Architects, the daintree Rainforest home is built on a man-made lake with a sustainable ecosystem including fish, eels, water snakes, crustaceans and turtles. It inspired Britain’s Telegraph newspaper to write, “Australians have a reputation for being down-to-earth, but architecturally, they are the complete opposite. These days, they are raising the bar for ultra-modern design, building homes so fantastic.” ■ Brisbane. Australia 2014 ❙ 67

Focus Queensland / Energy and Resources

Energy and resources to power growth Queensland’s A$37.9 billion resource industry contributes one in every four dollars to the state’s economic activity and supports one in every five jobs.

Photo courtesy of the Queensland Government.

68 ❙ G20 Leaders’ 2014

apid development in emerging countries is driving a strong and sustained demand for energy and minerals to fuel construction, infrastructure and production. Yet at the same time, the world’s key resources have become harder to access and extract profitably. Most of the ‘easy pickings’ have been made. Queensland has abundant and diversified stocks of many of the minerals and energy resources that the world needs, including coking and thermal coal, gas, oil, shale, uranium, thorium, bauxite, and a range of base metals.1 Drilling operations have identified more than 32 billion tonnes of high-quality coal resources in situ.2 Queensland sold 208.7 million tonnes of coal in 2013-14, a record performance and a 16 percent increase on the previous year, exporting shipments from its 15 trading ports. Queensland has also earned a worldclass reputation for the mining engineering innovation, research and development needed to safely and economically extract resources. These factors—combined with the Queensland Government’s support for strategic infrastructure expansion to open up large undeveloped reserves of gas and thermal coal—make the state an attractive resource proposition. Its Galilee Basin Development Strategy aims to significantly lower start-up costs and fast-track development projects in the basin, which contains some of the richest thermal coal deposits in the world. The strategy supports infrastructure development for commercial coal projects, streamlining land acquisition, planning, approvals, and cutting red tape while positioning the North Queensland Port of Abbot Point as the Galilee’s export gateway. Four proposed coal projects in the Galilee Basin have received both state and federal government approval: Alpha Coal (GVK Hancock), Kevin’s Corner (GVK Hancock), Galilee Coal Project (Northern Export Facility/ China First (Waratah), and Carmichael Coal Mine and Rail project (Adani Mining Pty Ltd). Indian resource giant Adani Mining intends its Carmichael project to become one of the world’s largest coal mines. The A$16.5 billion Carmichael Coal Mine is projected to produce up to 60 mtpa of coal for 60 years—enough to power the homes of 100 million people in India. The project will include the building of an airport, accommodation, roads, water infrastructure, 189-kilometre railway and an expansion of Abbot Point into one of the world’s largest coal terminals.3 The mine

Beyond G20: Queensland, the economic powerhouse

and rail project alone will employ at least 1500 in the construction phase and about 4000 when operational. Queensland Deputy Premier and Minister for State Development, Infrastructure and Planning Jeff Seeney says opening the Galilee Basin to mining represents an unrivalled opportunity for his state. “Our government understands growing Queensland’s economy, particularly the resources sector, provides prosperity for all Queenslanders and we will do all we can to facilitate development of the Galilee Basin,” Mr Seeney said. The government has invested heavily in supporting exploration with new geophysical data, catchment baseline geochemistry, and geologic and mineral mapping. The Queensland Government’s Safety In Mines Testing and Research Station (SIMTARS) is one of the world’s leading specialists in mine safety training, education, research, and technology. It has trained mine workers and inspectors from the United States, China, Indonesia, Mongolia, India, Turkey, South Africa, New Zealand, and other countries, according to Queensland Deputy Director-General of Mine Safety and Health Paul Harrison. “It has a world-wide reputation in mine safety and expertise,” Mr Harrison said. In a world-first, Queensland is using new technology to economically and efficiently produce LNG from natural gas trapped in its vast coal seams. Ground-breaking techniques are being used to extract coal seam gas (CSG, also known as coal seam methane) as feedstock for export LNG, with the first international shipments due to leave the Port of Gladstone in late 2014. Three CSG-to-LNG projects are about to come on-line. Each is worth about US$20 billion and use sophisticated engineering to pipe the gas safely 540 km underground and undersea from southern Queensland to high-tech new LNG plants on Curtis Island, off Gladstone. The first to start production, the BG Group-controlled Queensland Curtis LNG, is due to export its first shipment in late 2014. At full production the combined output is forecast at 20 mtpa or 1100 petajoules a year, with offtake agreements stretching to 20 years. The CSG industry is expected to contribute more than A$3 billion in gross state product and A$636 million in royalties annually. The state government is also re-opening the uranium industry after a 25-year mining ban. Queensland has a significant uranium potential, estimated at 165.95 million tonnes with a uranium content of 107,000 tonnes.

Photo courtesy of the Queensland Government.

ROAD-BUILDING AND MAINTENANCE PROJECTS REQUIRE A$17 TRILLION, FOLLOWED BY POWER AND WATER AT ABOUT A$12 TRILLION EACH, TELECOMMUNICATIONS AT A$10 TRILLION AND TRANSPORTATION AT A$8 TRILLION. Innovative and big ideas are welcome– the project team is looking for a uniquely Bowen initiative. Australia has the world’s largest reasonably assured resources (RAR) of uranium and is already the world’s third-largest producer of uranium, after Kazakhstan and Canada. Minister for Natural Resources and Mines, the Honourable Andrew Cripps has called for mining development applications for both uranium and high-value rare earth deposits. Rare earths are used in the manufacture of mobile phones, flat-screen televisions, magnets, rechargeable batteries, and defence systems and have been discovered along with uranium at sites such as Mary Kathleen in western Queensland. But the Queensland resources story goes beyond enormous coal and gas deposits. It is the world’s second-largest producer of lead (10.4 per cent of global production), the third-largest zinc producer (6.9 percent), the fifth-largest silver producer (7.6 percent), and accounts for 1.3 percent of global copper production.4 Queensland leads Australia in copper, lead, silver, and zinc production, as well as being Australia’s second-largest bauxite producer and the third-largest gold producer. It is

expected to become an important producer of molybdenum and rhenium in the future. Overall, Queensland’s A$37.9 billion resource industry contributes one in every four dollars to the state’s economic activity and supports one in every five jobs. The resources sector in coal-rich Central Queensland alone employs almost 9000 people full-time and contributes A$3.4 billion into the state’s economy. Local communities are the direct beneficiaries, with around A$1.5 billion directly invested. The Central Queensland resources sector also indirectly creates a further 34,000 local jobs and A$2.2 billion to the regional economy through local purchases. World-scale reserves, combined with low sovereign risk, transparent regulations, a reputation as a safe and reliable trading partner and accessibility to Asian markets are attracting large and small players to the state’s resource industry. ■

ResourcesQ Foresight Study, DNRM Queensland Resources Council - Coal 3 http://www.dsdip.qld.gov.au/assessments-andapprovals/carmichael-coal-mine-and-rail-project.html 4 Queensland Resources Council 1

Brisbane. Australia 2014 ❙ 69

Focus Queensland / Biosecurity

Food biosecurity and agriculture: Queensland, Australia and the G20 Queensland’s competitive advantage lies in its ability to supply quality, innovative products and services to different markets. The government has set a target of doubling agricultural production by 2040.

he demand for food and fibre in our part of the world is rapidly increasing. The world’s population is estimated to increase from 7 billion to almost 9.3 billion by 2050, and much of that growth will be in Asia. Asia’s rapidly-growing middle class prefers fresh, high-quality fruit and vegetables, sugars, meat, and other animal products, all of which Queensland prides itself on producing to world-class standards. The Queensland Government has set a target of doubling agricultural production by 2040. Key sectors in Queensland are beef, fruits and vegetables, sugar, cereal grains, and cotton. We are working with our partners in Asia to further develop trade and establish ourselves as the number one supplier of the produce Asia wants now, and for decades to come. Queensland food: Quality products for world markets Queensland’s competitive advantage lies in its ability to supply quality, innovative products and services to different markets. Cutting-edge research has advanced Queensland’s food technology developments to world standards. Leading technologies include sophisticated monitoring systems, integrated pest management techniques, product improvement, and non-invasive assessments for quality and freshness. Stringent environmental management and quality assurance practices at each stage of the supply chain ensure our products meet food safety standards and are produced sustainably, both now and into the future. Key to Queensland’s food safety is its

70 ❙ G20 Leaders’ 2014

stringent biosecurity measures. The Australian and Queensland Government have rigorous border control regulations and these, together with continuous monitoring, have provided Queensland with a plant and animal health record which is second to none. These features and advantages, due in part to Australian’s relative geographic isolation, and its natural freedom from most of the world’s serious animal pests and diseases, offer Queensland’s industry an unparalleled opportunity to produce a premium product. World class laboratory testing and biosecurity systems support market access for a wide range of fresh products. The National Livestock Identification System (NLIS) is in place for lifetime traceability of livestock to secure product integrity. This system requires livestock to be clearly identified so that issues that might affect animal or public health can be dealt with in a timeframe that ensures continued customer confidence in our food safety systems. The use of comprehensive biosecurity standards from the paddock to the plate ensures continued consumer confidence in our food safety systems. For example, the Queensland fruit fly (Bacterocera tryoni) is one of the most significant pests of concern for many destination markets and requires produce to be treated to reduce the risk of this pest being introduced in consignments. Although B.tryoni is an endemic pest, Queensland remains free of other exotic fruit flies through continued participation in the national Ports Trapping Program. This program is supported by the Long-term Containment Strategy for Exotic Fruit Flies in Torres Strait which combines surveillance for exotic fruit flies with containment activities

that ensure mainland Australia remains free from these pests. Beef is Queensland’s largest agricultural industry. The beef sector is currently worth A$5.4 billion per annum, A$3.4 billion at the farm gate (33per cent of the total value of agriculture in Queensland), and A$2 billion in further value adding. In 2013/14 Queensland exported 58 percent of Australia’s beef exports, worth more than A$3.72 billion. We currently export beef to 69 countries: Japan

A$973 million

USA

A$744 million

South Korea

A$557 million

China

A$447 million

Taiwan

A$135 million

Queensland’s beef is exported in a number of different forms: live cattle exports (feeder and slaughter), live exports (breeding cattle), chilled or frozen meat (bone in), and chilled or frozen meat (boneless). Each of these products are suitable for very different markets and this is generally reflected by the level of development in the destination country. Indonesia has been the primary market for live cattle exports (feeder and slaughter) for the past 10 years. This market is mainly made up of developing countries with religious slaughtering rituals and a culture of purchasing from markets due to the absence of refrigerators in many homes. Cattle tick is a barrier to market access for live cattle intrastate, interstate, and internationally. Cattle tick is managed by regulating cattle movement across a designated tick line separating free and endemic areas of Queensland.

Beyond G20: Queensland, the economic powerhouse

Above image by Ben Vos Productions Photos courtesy of the Queensland Government.

The National Livestock Identification System (NLIS) supports market access and traceability requirements. Queensland’s strong regulatory system helps prevent the entry of Bovine spongiform encephalitis, making our product highly-desirable in markets such as Korea, Japan, and the USA. Industry perspective In his role as Queensland Farmers Federation CEo, dan Galligan keeps a close eye on the key biosecurity challenges facing Queensland and Australian farming in the near future: “Biosecurity challenges are typically unpredictable and difficult to manage. This requires an industry-by-industry and region-by-region response depending on the situation. “Industries have responded quickly to biosecurity challenges in working with

WE ArE WorKING WITh oUr PArTNErS IN ASIA To FUrThEr dEvELoP TrAdE ANd ESTABLISh oUrSELvES AS ThE NUmBEr oNE SUPPLIEr oF ThE ProdUCE ASIA WANTS NoW, ANd For dECAdES To ComE. government on immediate solutions to deal with the problem, while also investing in long term research and solutions, should a particular threat become uncontainable. “Queensland and Australia have in the past have been the beneficiary of our vast sea borders and strict quarantine measures to help protect our excellent biosecurity status. “our freedom of many pests and weeds and diseases has helped us produce food, fibre, and foliage efficiently and profitability. “It has also helped us maintain a clean and green image that has a worldwide reputation. “Increases in global trade and travel pose extra risks on our biosecurity systems–and therefore some of our farming systems. We must maintain our vigilance in protecting our quarantine status, and work hard to eradicate incursions.

“We must have an ongoing commitment across all levels of government and industry to strong biosecurity programs. “our freedom from many pests and diseases helps open doors to trade by giving our customers assurance that the product they are importing doesn’t pose a risk to their own countries. It forms part of our overall clean and green image, which can be especially important when targeting niche markets. Likewise though, it also serves us well with bulk commodities, perhaps evidenced most starkly following Japan’s enthusiasm for Australian beef after the U.S. BSE scare in the early 2000s. “our members will continue to have biosecurity as one of their key policy issues that they focus upon for famers. Strong biosecurity underpins productive and profitable farming. Therefore we will continue to adapt to new challenges as they arise.” ■ Brisbane. Australia 2014 ❙ 71

Focus Queensland / Energy and Resources Authored by: Professor Sandra Harding

Development and future of tropical economies: Queensland paves the way The Queensland Government is focused on using science, research and innovation to promote economic growth and opportunity in Queensland.

72 â?&#x2122; G20 Leadersâ&#x20AC;&#x2122; 2014

Beyond G20: Queensland, the economic powerhouse

here is a fertile swathe on our planet that is bursting into bloom. It is a region that will soon be home to half of the world’s population and two thirds of its children. A place where thousands of languages are spoken, incomes are rising, infrastructure, education and healthcare are more accessible, and life expectancy is growing. Around 80 per cent of the earth’s terrestrial biodiversity can be found there, along with more than 95 per cent of its mangrove and coral reef-based biodiversity, yet the region bears an unfair share of the world’s land degradation and disease. It is a region whose economy is growing

more than 20 per cent faster than the rest of the world, although it struggles to support two-thirds of the world’s poorest people. The Tropical zone will, in no small way, determine the future of global development. The full story of the Tropics was revealed in late June when the inaugural State of the Tropics report was launched by Aung San Suu Kyi in Myanmar. The report was the result of three years work by a research team based at James Cook University in collaboration with 11 other research institutions around the world. Australia—and more particularly Queensland—has an outstanding opportunity to participate in the dynamic growth of the Tropics worldwide. Bearing this out, in September 2014, the Future of the Tropical Economies Conference was held as an officially aligned forerunner to the 2014 G20 meeting of Finance Ministers and Central Bank Governors in Cairns. Given that many of the G20 have a footprint in the Tropics, the Cairns Regional Council and James Cook University decided that it was high time to focus on factors that would affect tropical economies, secure in the knowledge that these economies, with their rapidly growing middle class and rising expectations about access to health, education, and other economic infrastructure, would have an impact on the world. We were also alive to the fact that Australia is the developed country with the largest tropical landmass and the current push for northern Australia’s development is most timely. Northern Australia is tropical and comprises business, industry, scientific assets, and people who have chosen to work, study and live in the Tropics. The conference traversed a wide range of topics. Delegates had the great benefit of keynote addresses from Australia’s Treasurer, the Honourable Joe Hockey, and Queensland’s Treasurer, the Honourable Tim Nicholls, both challenging Australia and Queensland respectively to understand the size of the

opportunity before us and to grasp that opportunity. And not just for our own benefit, though there is that, but also given the changing global dynamic that means that as the zone to the north, east, and west of Australia grows in influence it may come to dominate the world in important ways. With or without the current bipartisan push to realise the benefits of northern Australian development, the Tropics as a zone of the world simply can’t be ignored. Key themes of these two important addresses were elaborated as world class experts on tropical environments—marine, terrestrial and built—opined on significant issues revealed in the State of the Tropics report that demand attention by global leaders. Urbanisation is accelerating in the Tropics and sustainable built forms are essential to this development. Human capital was explored: the demography of these growing regions and the essential ingredients for development, including ways not just to engage, but to secure Australian Aboriginal and Torres Strait Islander leadership in the global, tropical economy to come. The focus then shifted to economic development, what this demands in the developing, tropical global dynamic; and finally, a free-flowing session testing all issues examined at the meeting, charting a way forward for the further and essential engagement with a profound change that is upon us. A mighty conundrum arose at the end. on the one hand, while tropical economies are growing fast from a relatively low base, the standard of living, while improving, remains poor as measured by average earnings per day. The rule of law is a fragile thing in many tropical nations, with corruption in evidence across many regions. Education is a path—the path—to individual and national progress, but the children of the Tropics—that is currently 51 percent ›

AUSTRAlIA—AND MoRE pARTICUlARly QUEENSlAND—HAS AN oUTSTANDING oppoRTUNITy To pARTICIpATE IN THE DyNAMIC GRoWTH oF THE TRopICS WoRlDWIDE. Brisbane. Australia 2014 ❙ 73

Focus Queensland / Energy and Resources › of the world’s children—experience only six years of schooling on average. R&D spending on issues of critical concern to the Tropics is modest. The closing panel remarked that it isn’t until their economies grow stronger will the 109 nations of the Tropics be able to invest in their own development. So the conundrum is this. We now understand that there is a new and emerging global dynamic. How do we ensure that this part of the world grows and develops in a positive way, in a way that provides opportunity for its peoples? Many tropical nations simply cannot meet this common challenge alone, and yet the seriousness of the issue cannot be denied. It bears repeating that the weight of the world population—and two-thirds of the world’s children—will live in the Tropics, and yet, we have no clear means of ensuring that this population and those children, most of the children in the world, will grow up in a world that has the essential educational,

health, and economic infrastructure they need to secure the ability to contribute productively to their own and their families’ futures and that of their nations. Without such infrastructure in place to meet a need that we know is coming—indeed it is already here—we must not be surprised if the world ends up facing further extremism and radicalism born of alienation, disadvantage, and grinding poverty. If that is the outcome, no one can say we didn’t know this was coming. There is a moral imperative right here, and we turn our faces away at our great peril and to our great shame. For Australia, as the developed country with the largest tropical landmass, northern Australia is key, and Queensland is playing a crucial role. Engaging in the new global dynamic—the global economy to come— means understanding our place in the world and the dynamic of Asia and the Tropics. We have a lot to offer the region, and there is much we can gain from this strategic location. The challenge for us, especially for those of us who live and work in the Tropics, is how

to build a new dynamism and strength. It concerns the pathway this economic growth and subsequent improvements in lifestyle, including health and education, will take while attending to unique tropical ecosystems and cultural diversity. Furthermore, many tropical nations are experiencing a demographic dividend as relatively high proportions of their populations are of working age. Improvements in youth and adult literacy mean there is a workforce growing in skills and that provides the potential for a greater range of job opportunities for local economies. We are on the edge of the great growth and even greater potential of Asia and the Tropics. It is there, waiting for us to engage. There is a new, exciting global dynamic. Australia can take the lead, as it did with the State of the Tropics report, but the opportunities and challenges go well beyond North Queensland. It is a dynamism that must engage the rest of the world. We are on the front foot, and now we need to take the first step. ■

THE CHAllENGE FoR US, ESpECIAlly FoR THoSE oF US WHo lIVE AND WoRK IN THE TRopICS, IS HoW To BUIlD A NEW DyNAMISM AND STRENGTH. IT CoNCERNS THE pATHWAy THIS ECoNoMIC GRoWTH AND SUBSEQUENT IMpRoVEMENTS IN lIFESTylE, INClUDING HEAlTH AND EDUCATIoN, WIll TAKE WHIlE ATTENDING To UNIQUE TRopICAl ECoSySTEMS AND CUlTURAl DIVERSITy. Professor Sandra Harding BSc (Hons) ANU, MpubAdmin UQ, phD NCSU, Hon Doc JIU, FACE, FQA, FAICD, FAIM Professor Sandra Harding took up her appointment as Vice-Chancellor and president of James Cook University Australia in January 2007. In this role, she is responsible for ensuring clear and effective leadership and management of the University across all operating sites, including campuses in Townsville, Cairns and Singapore. Educated at the Australian National University, the University of Queensland and North Carolina State University (USA), professor Harding is an economic sociologist

74 ❙ G20 Leaders’ 2014

with a keen scholarly interest in markets and how they work, and organisation survey methodology. She also has a keen professional interest in education policy and management. professor Harding has extensive academic and academic leadership experience. Currently Chair of Universities Australia, the peak advocacy body for all Australian universities, she has undertaken a wide variety of senior universityaligned roles as well as memberships/ directorships of a variety of local, national and international Boards and Councils. professor Harding is the project Convener for the State of the Tropics 2014 Report.

Story / Australian Institute of Tropical Health & Medicine

Leading the Tropical Health Agenda in Northern Australia Australia faces an ever-growing threat from infectious diseases.

ith 40 percent of Australia’s landmass in the tropics, surveillance and control must be underpinned by a vigorous and effective research capacity in northern Australia. Infectious diseases of particular concern include dengue fever, malaria, Japanese encephalitis, multi-drug resistant tuberculosis (TB), rabies, avian influenza, and new emerging pathogens. Many of these diseases, notably TB and mosquito-borne diseases, are subject to cross-border movement through the IndoPapuan corridor via the Torres Strait and into northern Australia, tropical Australia is at

the front line in the nation’s defence against these diseases and other biosecurity threats. Furthermore, the significant potential of these diseases to enter southern Australia once established in the north is under-recognised. Australian Institute of Tropical Health & Medicine (AITHM) Based in northern Australia, the Australian Institute of Tropical Health & Medicine (AITHM) seeks to confront Australia’s health security risks, attack its worst health outcomes, develop better ways to deliver health services to remote communities, and establish

northern Australia as a centre of excellence for tropical health and medical research. James Cook University (JCU) provides the institutional location for AITHM, with AITHM bringing together the research capacity and expertise of a number of externally and internally funded research centres and key research areas. James Cook University is ranked amongst the top four percent of universities worldwide with campuses in Townsville, Cairns, and Singapore. With its unique geographical spread across Asia and adjacent to the Great Barrier Reef, the dry and wet tropics of Australia, deeply influences JCU’s teaching and research. JCU’s expertise is directed towards the health, environment, and populations of tropical regions. The Division of Tropical Health and Medicine builds on this distinctive commitment to the Tropics, addressing health workforce shortages in regional, rural and remote areas through the provision of a professional, work-ready health workforce. The key focus of the Division is to develop a global tropical health hub. JCU is home to two World Health Organisation Collaborating Centres, with researchers securing major grants, awards, and fellowships from institutions like the Gates Foundation and the National Health and Medical Research Centre (NHMRC), and staff are earning recognition for their achievements both within Australia and across the world. The Division’s research base has

With the fAst groWth in the AsiA PAcific region it is very timely thAt AustrAliA develoPs A nAtionAl cAPAcity to Address the heAlth issues relevAnt to troPicAl regions. Aithm is becoming A globAl leAder in troPicAl heAlth. Professor Ian Wronski, Deputy Vice Chancellor of the Division of Tropical Health and Medicine at James Cook University

76 ❙ G20 Leaders’ 2014

Story / Australian Institute of Tropical Health & Medicine been strengthened significantly with the establishment of AITHM. In 2013, the Queensland and Australian governments equally committed to support AITHM to a total of A$84 million. This funding is enabling AITHM to undertake infrastructure projects, capacity building and research programs in Townsville, Cairns, and the Torres Strait. AITHM aims to fill a major gap that currently exists at the interface between cutting edge research and scientific expertise, health service, workforce, and policy delivery. AITHM will undertake work across areas of significant interest and importance in our tropical region such as neglected tropical diseases, tropical public health, molecular diagnosis of pathogens and ways to improve the delivery of health services to rural and remote tropical communities. AITHM also makes a contribution to the ambitious agenda that is currently being discussed for the future of northern Australia. A healthy and productive population is an essential component to the economic development of northern Australia. However, the distinctive characteristics of health in Australia’s northern environment including tropical diseases and the impacts of chronic diseases in tropical environments and the pacific are ongoing concerns, which this new capacity in Australia’s health research seeks to address. Strengthening Australia’s Health Security The threat of highly prevalent diseases in neighbouring countries and the routine interaction with Australia’s northern-most populations constitute a threat that Australia needs to monitor and prepare for. Tropical northern Australia faces substantial health security and biosecurity threats from infectious diseases, including zoonoses (diseases that can pass between animals and humans). AITHM is building the platforms to understand the nature and extent of these risks and a knowledge base and capacity to protect Australia’s population, build high tech research capability in Northern Australia and contribute to the growth of Australia’s knowledge based economy. Infrastructure Four infrastructure projects are proposed to expand Australia’s capacity in tropical infectious disease research, including Tropical Health Research and Training Facilities in Cairns and Townsville, a Translational Research Centre in Townsville, an Occupational Health Research Centre in Mackay and Network, and a Research

AITHM research program. Together they bring strong experience in tropical health, managing research teams and collaborating with external partners to deliver world-class tropical health and medical research in complementary areas. AITHM research spans a wide range of issues facing people who live in the tropics and includes research projects investigating treatments of inflammatory diseases such as asthma and childhood type 1 diabetes, through to dangerous common parasites and aortic aneurysms. All have potential benefit not only in the Australasian region but for health and medicine outcomes around the world. Examples of AITHM research include;

Artist’s impression of Townsville AITHM Facility

Photo courtesy of Queensland Tropical Health Alliance (QTHA)

and Training Facility on Thursday Island. This investment supports the development of infrastructure and research particularly prevalent to infectious disease and health security. Research AITHM hosts a number of research programs to contribute to better health for people in the tropics world-wide. Key research areas include tropical infectious disease, chronic diseases with high prevalence in the tropics, development of diagnostics and therapeutics, genetic disease and health services in tropical, regional, rural, and remote communities. Leading the way in tropical health and medical research, AITHM plans to develop Australia’s research capacity by building new research and translational infrastructure and building human capacity through a cohort of research leader appointments, research fellowships, and staff. AITHM’s internationally renowned research leaders are critical to the overall

› AITHM’s chronic disease epidemiologists are committed to working with health services and communities in far north Queensland to improve the management of chronic disease, particularly diabetes, heart, and renal disease. › AITHM Molecular and Biomedical scientists are researching the therapeutic potential of parasitic hookworms to treat inflammatory diseases, such as asthma and coeliac. These researchers are also exploring venom harvested from tropical animals and plants for the treatment of cancer. › AITHM vector biologists focus their research on tackling devastating diseases like malaria, dengue, and lymphatic filariasis, and also serve prominent roles translating this research into policy and practice by guiding the international vector-borne disease control efforts. AITHM provides better health outcomes for northern Australia Through innovative research in partnership with key community organisations and health service providers, AITHM will fill the gap between cutting edge research on the one hand, and health service, workforce, and policy implementation on the other. The development of northern Australia relies on a healthy population and AITHM leads the way by providing better health outcomes for northern Australia and the Asia Pacific region. AITHM is committed to commercialising its research findings and technology by transforming evidence based practices to address population health. ■ Visit www.aithm.jcu.edu.au or contact AITHM on aithm@jcu.edu.au.

Brisbane. Australia 2014 ❙ 77

The City of Logan is in the centre of the rapidly growing South-East Queensland region and is uniquely placed at the centre of a major transport corridor. The cityâ&#x20AC;&#x2122;s location allows many businesses to access domestic and global markets and achieve time and cost efficiencies.

Darwin

Noosa Heads

Coolum Beach

Caloundra Kilcoy

Caboolture

City of Logan

Esk

Locating your business in the City of Logan offers the following advantages:

Brisbane Gold Coast

Strathpine

Perth

Brisbane

Gatton

Logan has direct access to three major arterial road networks, two international airports and an extensive freight rail network. All four major supermarket distribution centres are either located in or immediately adjacent to the City of Logan.

QUEENSLAND

Mooloolaba

Ipswich

Beenleigh

Warrill View

City of Logan

Boonah

Gold Coast Beaudesert

Adelaide Sydney Canberra Melbourne

Nerang Surfers Paradise

Tweed Heads

Hobart

> Supportive business environment > Access to vital transport infrastructure

> Access to Asia Pacific markets > Gateway to major Queensland mining, resources and infrastructure projects

> Access to a regional catchment of over 3 million people

> Diverse housing, education and lifestyle options

> Competitive land, leasing, labour and input costs.

“The City of Logan is a beautiful place. I have been here for 14 years. It is a perfect location between Brisbane and the Gold Coast.” Mr Choe-Lam Tan, Jeta Gardens

ECONOMY

INDUSTRY SECTOR OUTPUT

THE CITY OF LOGAN HAS AN ESTABLISHED DIVERSE ECONOMIC BASE. The top sectors are manufacturing, rental, hiring and real estate services, construction, retail and wholesale trade which contribute to approximately 64% of the city’s economic output. Emerging industries include transport and logistics, food manufacturing

Public Administration & Safety $584m

Administrative & Support Services $503m

Other $1.763bn

Manufacturing $4.970bn

Financial & Insurance Services $730m Education & Training $748m

and processing, health care,

education and training. Logan City Council is working with these industries to help the economy grow even further.

Transport, Postal & Warehousing $758m

Professional, Scientific & Technical Services $808m

TOP FIVE INDUSTRIES

Health Care & Social Assistance $950m

> Manufacturing ($4.970bn) > Rental, Hiring & Real Estate Services ($2.403bn)

Wholesale Trade $1.151bn

> Construction ($2.374bn) > Wholesale Trade ($1.151bn) > Retail Trade ($1.149bn)

Construction $2.374bn

REMPLAN (April 2014)

FIND OUT MORE If you are considering relocating or expanding into the City of Logan, Logan Office of Economic Development should be your first port of call. 150 Wembley Road, Logan Central QLD Australia 4114 PHONE: +61 7 3412 4888 FAX: +61 7 3412 3444

Rental, Hiring & Real Estate Services $2.403bn

Retail Trade $1.149bn

WEB: www.loed.com.au EMAIL: loed@logan.qld.gov.au

PROUDLY

TheUniversiTy UniversiTyof ofQUeensland QUeensland The Ranked the world’s top 100*, The University Ranked inin the world’s top 100*, The University ofof Queensland (UQ) one Australia’s leading teaching and Queensland (UQ) is is one ofof Australia’s leading teaching and research institutions, educating more than 215,000 alumni research institutions, educating more than 215,000 alumni – including more than 12,500 PhDs – who have made and – including more than 12,500 PhDs – who have made and continue make positive impacts throughout the world. continue toto make positive impacts throughout the world.

world standard – with more than per cent above world standard – with more than 8080 per cent above well above – and that UQ above world standard oror well above – and that UQ is is above world standard more specialised fields research than any other inin more specialised fields ofof research than any other Australian university. Australian university.

With many notable discoveries credit, UQ With many notable discoveries toto itsits credit, UQ is is leading source expertise many strategically aa leading source ofof expertise inin many strategically important areas research. The Australian Government’s important areas ofof research. The Australian Government’s Excellence Research Australia (ERA) 2012 National Excellence inin Research forfor Australia (ERA) 2012 National Report confirmed that UQ fields research are Report confirmed that allall UQ fields ofof research are atat

UQ’s research record demonstrates excellence UQ’s research record demonstrates excellence delivering benefits people and communities inin delivering benefits toto people and communities worldwide. The focus the future deepening and worldwide. The focus forfor the future is is onon deepening and extending this ‘excellence-plus’, particularly through extending this ‘excellence-plus’, particularly through partnerships with industry, government and nonpartnerships with industry, government and nongovernment organisations. government organisations.

Fightingback back Fighting againstsuperbugs superbugs against

Developingsustainable sustainable Developing energysolutions solutions energy

With top medical scientists working toward solutions global With top medical scientists working toward solutions to to global problems, The University Queensland has become home problems, The University of of Queensland has become home to to significant research discoveries. significant research discoveries. The superbug crisis one that requires attention researchers The superbug crisis is is one that requires thethe attention of of researchers with a global focus. The World Health Organization has declared with a global focus. The World Health Organization has declared antimicrobial resistance one greatest threats human health antimicrobial resistance one of of thethe greatest threats to to human health and, 2011, issued international cease spread and, in in 2011, issued anan international callcall to to cease thethe spread of of antimicrobial resistance. Responding this team UQ’s antimicrobial resistance. Responding to to this callcall is is thethe team at at UQ’s Institute Molecular Bioscience, Professor Matt Cooper. Institute forfor Molecular Bioscience, ledled byby Professor Matt Cooper. UQ, Professor Cooper and team developing drugs and AtAt UQ, Professor Cooper and hishis team areare developing drugs and diagnostics fight superbugs. Every time a person uses a drug, diagnostics to to fight superbugs. Every time a person uses a drug, a bug can gain resistance. this reason, team’s focus a bug can gain resistance. ForFor this reason, thethe team’s focus is is onon superbugs bacteria that resistant antibiotics. superbugs —— bacteria that areare resistant to to antibiotics. You can help war against superbugs washing your hands You can help in in thethe war against superbugs byby washing your hands regularly, only taking antibiotics when needed, and always completing regularly, only taking antibiotics when needed, and always completing prescription, even if you start feel better. thethe fullfull prescription, even if you start to to feel better. Also fight against infectious diseases Nouri Ben Zakour Also in in thethe fight against infectious diseases is is DrDr Nouri Ben Zakour from University’s School Chemistry and Molecular Biosciences, from thethe University’s School of of Chemistry and Molecular Biosciences, who has tracked a potentially devastating multi-drug resistant coli who has tracked a potentially devastating multi-drug resistant E. E. coli strain. Another researcher striving combat superbugs PhD strain. Another researcher striving to to combat superbugs is is PhD student Hosam Zowawi from UQ Centre Clinical Research, student MrMr Hosam Zowawi from thethe UQ Centre forfor Clinical Research, who has won a Rolex Laureate creating a diagnostic tool that can who has won a Rolex Laureate forfor creating a diagnostic tool that can identify superbugs. The work UQ researchers has potential identify superbugs. The work of of UQ researchers has thethe potential to to help people a global scale. help people onon a global scale.

Society demands access reliable energy that affordable and Society demands access to to reliable energy that is is affordable and sustainable, electricity, industry and transport. UQ committed sustainable, forfor electricity, industry and transport. UQ is is committed to to enabling reliable, low-carbon electricity that affordable, through enabling reliable, low-carbon electricity that is is affordable, through itsits research solar power and energy storage, higher efficiency, and low research in in solar power and energy storage, higher efficiency, and low emissions coal-fired power with carbon capture and storage. emissions coal-fired power with carbon capture and storage. Globally, primary energy consumption rose cent over Globally, primary energy consumption rose 2828 perper cent over thethe past decade a trend continue three billion people, who past decade – a– trend setset to to continue asas three billion people, who lack access energy supplies, seek emerge from poverty. lack access to to energy supplies, seek to to emerge from poverty. AtAt same time, global carbon emissions increased almost thethe same time, global carbon emissions increased almost 2929 perper cent over past decade – presenting significant risks – and many cent over thethe past decade – presenting significant risks – and many economies facing increasing energy prices. economies areare facing increasing energy prices. The UQ Energy Initiative oversees sustainable energy research The UQ Energy Initiative oversees sustainable energy research programs with multidisciplinary efforts aimed creating scalable programs with multidisciplinary efforts aimed at at creating scalable technologies renewable electricity and fuels, and low-emissions technologies forfor renewable electricity and fuels, and low-emissions utilisation fossil fuels. These programs can applicable utilisation of of fossil fuels. These programs can bebe applicable in in advanced nations seeking improve resilience their energy advanced nations seeking to to improve thethe resilience of of their energy economies a future low-carbon world, which also facing resource economies in in a future low-carbon world, which is is also facing resource limitations. They can also applied provision energy limitations. They can also bebe applied to to thethe provision of of energy services developing nations. services in in developing nations. improving productivity, environmental performance and ByBy improving thethe productivity, environmental performance and social impact unconventional gas extraction, UQ helping social impact of of unconventional gas extraction, UQ is is helping to to unlock Australia’s potential supply natural gas domestic unlock Australia’s fullfull potential to to supply natural gas to to domestic and export markets. And improving performance biomass and export markets. And byby improving thethe performance of of biomass production, UQ laying groundwork a future transport sector production, UQ is is laying thethe groundwork forfor a future transport sector that less reliant conventional that is is less reliant onon conventional oil.oil.

80 ❙ G20 Leaders’ 2014

CRICOS Provider No. 00025B

Advancing knowledge of the immune system

Monitoring the world’s coral reefs

Autoimmune diseases affect millions of people around the world and, at UQ’s Diamantina Institute, breakthroughs that can enhance our understanding of the immune system are being made. Working toward a cure for autoimmune diseases, including rheumatoid arthritis and Type-1 diabetes, Professor Ranjeny Thomas from UQ’s Diamantina Institute is undertaking research to develop the first antigen-specific immunotherapy for rheumatoid arthritis. Current therapies for rheumatoid arthritis can neither cure nor prevent diseases and often have unwelcome side effects. Professor Thomas and her team are striving to develop a long-lasting treatment that works with the body’s own immune system to fight disease. Since working as a fellow with pre-eminent US immunologist Peter Lipsky, Professor Thomas has been investigating the role of human dendritic cells in autoimmune diseases. Dendritic cells are the educators of the immune system, which Professor Thomas says, “break proteins down into small parts, called antigens. Dendritic cells can be manipulated so that the antigens on their surfaces de-activate arthritic helper T-cells. This manipulation can suppress disease symptoms without suppressing the whole immune system”. Professor Thomas discovered – in a world first – how to develop a vaccine for rheumatoid arthritis. UniQuest, UQ’s main commercialisation company, facilitated a strategic research collaboration agreement in 2013 with US pharma giant, Janssen Biotech Inc, to develop the promising rheumatoid arthritis treatment. Professor Thomas and her team are working towards clinical trials in rheumatoid arthritis in the industry focused R&D collaboration.

Globally, coral reefs are facing major challenges due to overfishing, pollution, ocean warming and acidification. UQ’s Global Change Institute (GCI) is the founding and lead science partner in the Catlin Seaview Survey (CSS), a project conducted by Underwater Earth and sponsored by global insurer, Catlin Group Ltd. The Catlin Seaview Survey commenced in 2012 and will create the first global perspective on coral reef health, by recording, researching and revealing the world’s coral reefs. The survey documents the composition and health of coral reefs with custom-designed underwater equipment, such as a specialist camera system (SVII) and modified remotely operated vehicles, to access rarely studied deep water reefs. The researchers are capturing spectacular 360-degree images, which are accurately GPS-located, so researchers can re-visit the same locations in later years and show changes happening on the reef. Data collected by the project contributes to the Catlin Global Reef Record – a free online standardised research tool and global ocean database – that allows scientists to remotely study coral reefs. The project has unprecedented outreach potential too, offering the public access to coral reefs from the comfort of their homes through Street View in Google Maps. The reef imagery to date covers more than 500 kilometres of reefscape. In 2012, the CSS conducted expeditions to the Great Barrier Reef and in the Coral Sea. In 2013, the CSS documented 206 reef sites throughout 13 Caribbean countries and Bermuda. This year, the survey is covering the Coral Triangle and, in 2015, the team will focus on the coral reefs of the Indian Ocean.

*As measured through a combination of four key global university rankings: the Academic Ranking of World Universities, Times Higher Education World University Rankings, QS World University Rankings, and the Performance Ranking of Scientific Papers for World Universities.

www.uq.edu.au/about Brisbane. Australia 2014 ❙ 81

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2,000,000 tons

Story / Griffith University

Injecting integrity into global governance: Griffith University’s global integrity summit The G20 has a very strong focus on the economy, on growth and development, but it does not give enough attention to broad integrity themes.

hortly after 9.30am on the morning of September 9, Professor Paul Mazerolle stepped back from the podium and Geoffrey Robertson QC took the stage of the Queensland Conservatorium for the opening address of the Global Integrity Summit (GIS). The moment marked the culmination of an ambitious and far-seeing endeavour to inject issues of integrity into the G20 arena in the build-up to the 2014 Leaders’ Summit in Brisbane. Geoffrey Robertson’s participation commanded global attention, allowing the two-day summit to breathe important new life into discussion and debate around themes like financial regulation, infrastructure funding, corporate transparency and information protection. It is a moment that could also have marked the finishing line for the Griffith University team, which brought to reality an idea nurtured from a 2013 discussion between Professor Mazerolle and Director of Griffith’s Institute for Ethics, Governance and Law, Professor Charles Sampford. “We don’t think this is going to be an end point. We think it might be a beginning point,” Professor Mazerolle, Pro Vice Chancellor (Arts, Education and Law) says. The Global Integrity Summit recognised the importance of 2014 as a landmark year for the integrity dimensions of governance reform. The Brisbane G20 Summit coincided with both the 25th anniversary of the publication of the of the Fitzgerald Report into Possible Illegal Activities and Associated Police Misconduct and the 20th anniversary of the Queensland Public Sector Ethics Act, one of the most important reforms emanating

84 ❙ G20 Leaders’ 2014

from the Fitzgerald era. In 1987, Tony Fitzgerald QC led the Commission of Inquiry which would change the political and policing landscape in Queensland and across Australia. Fittingly, Tony Fitzgerald was in Brisbane for the biennial lecture presented by Griffith University and the State Library in his honour hours after the curtain had come down on the inaugural Global Integrity Summit. During the preceding two days the work of the Global Integrity Summit was structured around five key issues on the G20 agenda— corruption, infrastructure, financial regulation, tax erosion, and profit shifting, and strengthening-empowering development. The discussion also weaved forensically through themes around the competing demands of transparency and privacy/secrecy, the under-recognized role of the professions in promoting better governance standards, and the search for global values to address global problems. “Our planning considered the most effective ways of highlighting integrity challenges and solutions to global agendas, particularly that of the G20,” Professor Mazerolle says. A truly extensive body of knowledge was brought to bear on complex discussions during two compelling days at Brisbane’s South Bank in the same precinct where the G20 Leaders Summit takes place in November. Among the organisations and agencies involved were the World Bank; World Forum for Ethics in Business; International Association of Human Values in India; French Central Service for the Prevention of

Corruption; Italian Ministry for Justice; Centre for Corporate Governance, Deloitte Brazil; Professional Standards Council; Australian Information Commission; Integrity Action (UK); CPA Australia; Tax Justice Network Australia; Transparency International Turkey; and Global Integrity. There were also contributions from Argentina, Indonesia, New Zealand, and Mexico. Academics from Australian universities and institutes overseas also took part, as did the former Commissioner and Deputy Chair of ASIC and the former Queensland Integrity Commissioner. Professor Mazerolle recalls the presentation by former Australian ambassador to the United Nations, Senator Robert Hill AC, as one of numerous high points. Another was the enthusiastic response to scholarships offered and invitations issued to university and high school students in Queensland. “We were motivated to produce a program relevant to the key issues but also relevant to the community,” says Professor Paul Mazerolle. “Importantly, we wanted to bring young people to the summit. Our message was ‘Here’s a real opportunity for young people to engage with these issues and to take them forward because this is about their place in the world in the future. Do you want to have integrity dimensions absent from financial institutions and the priorities of the G20 going forward? “To have so many young people in the audience on day one was a real highlight because it showed there was an interest in these issues. It showed me that the community in general, and young people

Story / Griffith University

EsTablishinG an inTEGriTy 20 would rEquirE onGoinG fundinG and oThEr insTiTuTions around ThE world GETTinG bEhind ThE movE To propEl iT forward. in particular, are really interested in global issues of integrity and human rights. “I think our decision to do this has been validated by the response. Certainly, we have been heartened by the opportunity to take it forward, to keep the momentum going, to keep it growing in many ways.” Considering how the project evolves brings Professor Mazerolle to a fork in the road. Can the Global Integrity Summit eventually bring about the establishment an Integrity 20, and allow I20 to take its place in the so-called ‘Alphabet 20s’ alongside B20, C20, L20, T20, Y20? “It’s an important question,” Professor Mazerolle says. “If our ultimate goal is to establish an Integrity 20, it’s not going to happen overnight. Maintaining some momentum with the Integrity Summit makes sense.” Establishing an Integrity 20 would require ongoing funding and other institutions around the world getting behind the move to propel it forward. “I think it’s more of a long-term goal. I think what we did this year was quite extraordinary and we don’t want to lose that momentum. We can probably build on this in other ways for next year,” ,”

says Professor Mazerolle. “Focusing on a Global Integrity Summit, in some ways, allows us to look through a wider lens beyond the G20. If we stick with an Integrity 20 we may well be constrained. “With a Global Integrity Summit, we could be empowered to look further afield at the additional implications for developing countries, the role of women in fostering economic development and community stability around the world and opportunities to seriously confront entrenched poverty. “These goals could be pursued whilst also strengthening the governance of economic expansion, and a range of human rights issues more generally through the lens of integrity. “The G20 has a very strong focus on the economy, on growth, and development but it doesn’t seem to be give attention to broad integrity themes incorporating considerations of integrity systems and institutional settings that we think are really, really important. Some of the work in this space historically has been narrowly conceptualized. “We thought there was an opportunity to make a contribution to a wider discussion about integrity issues and ethics. We felt there was a need for a platform that provides an

opportunity to ventilate these discussions.” How a failure of integrity and lack of ethics can foreshadow disaster is regularly in evidence, whether it’s the enduring economic turbulence brought on by 2008’s GFC or the tragedy wrought from a collapsed bridge in the build-up to this year’s World Cup Finals in Brazil. With the eyes of the world turning to South America, the collapse of an unfinished overpass in the Brazilian host city of Belo Horizonte once more raised issues about safeguards around development, infrastructure and tender purchasing processes. “The Global Financial Crisis was widely recognised at the time as being partly caused by serious ethical failures and a lack of transparency and integrity in significant financial markets,” Professor Mazerolle says. “How do we ensure that investments of public funds are really looked after? How do we build the accountability and the professional standards that ensure that people do the right thing when no one is looking? How do we continually embed not just the systems but the ethos, the culture, of integrity within these organisations? I think it’s fundamental. “It’s about the community we want to live and work in. If we have an opportunity to raise issues and promote issues involving integrity through our leadership, our research, our professional activities aimed towards improving our communities, then I think that’s all for the good.” Issues of integrity and ethics have been close to Paul Mazerolle’s heart for all his working life, not least from his days working at the Crime and Misconduct Commission when he headed up the research and prevention area and oversaw misconduct prevention. “Embracing a personal commitment to ethics and integrity and doing the right thing is a guiding principle that can take you far in your career. When institutions lose sight of some of their fundamental responsibilities to community, it illustrates that they’ve lost their way. Integrity is a fundamental first principle to the work that we do, whether as academics, bankers, lawyers or accountants.” ■ Media Contacts: Stephen O’Grady, Communications Officer Business, 0408 727 706

Brisbane. Australia 2014 ❙ 85

World-class place. World-class results.

The University of Tasmania is one of Australia’s leading teaching and learning institutions, with research programs that have significant global impact. We offer access to a diverse range of degrees, student exchanges and experiences that shape future global leaders, from our home on the unique and iconic island of Tasmania. Our reach can be found in the occupations of our alumni, which includes chief medical officers in Tanzania, diplomats in Pakistan and Thailand, geologists in Canada and marine engineers in Norway.

106

Our broad areas of study cover arts, business, education, engineering, finance, health, law, music and science. And we produce world-class research through many of our programs, including those run at our key institutes:

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Australian Maritime College Home to groundbreaking research in Marine Conservation, Maritime Engineering, Hydrodynamics and advancements in shipping technology, with $24 million of funding secured from the Australian Research Council for an Antarctic Gateway Partnership with the CSIRO and the Australian Antarctic Division. Institute for Marine and Antarctic Studies (IMAS) Our internationally recognised centre for excellence in marine and Antarctic research and education, IMAS is a global leader in seafood security, Antarctic research, and developments in closed-cycle aquaculture. Institute for for Research Medical Research Menzies Institute One of Australia’s leading health and medical research institutes, Menzies conducts state-of-the-art collaborative research in public health, primary care, neurodegenerative injuries, cardio-metabolic health and diseases, and cancer, genetics and immunology. It has a strong reputation providing excellence in postgraduate training and for producing renowned researchers.

The number of Rhodes Scholars we’ve produced since 1904.

117COUNTRIES Our partners are all around the globe.

Our research income in 2013.

159 COUNTRIES Where our students come from.

16 of 21

The number of our research fields which were rated above world-standard by the Australia Research Council in 2012.

We lead the nation in capturing funding with more than $33,000,000 from the Australian Research Council, which we use to transform manufacturing, mining and agricultural industries.

30,000+ 90,000+ Students currently enrolled at the University of Tasmania, including 1,697 students studying overseas in Shanghai, Hangzhou and Hong Kong.

400

The number of our industry partners.

The number of students who’ve graduated from the University since 1890.

17%

Percentage of our students who come from overseas.

125 YEARS How long our graduates have been changing the world.

utas.edu.au UTMC14101R-rj CRICOS Provider Code: 00586B

Academic Ranking of World Universities 2014

International Chamber of Commerce

Terry McGraw Chairman, International Chamber of Commerce

The International Chamber of Commerce (ICC) is–and has been throughout its long history–a steadfast rallying point for those who believe, like our founders, that strengthening commercial ties among nations is not only good for business, but also good for global living standards and good for peace. From our perspective, the G20, with its mixed membership of advanced and emerging economies, is uniquely positioned to address some of the world’s most important and intractable economic problems and will increasingly shape global, intergovernmental policies that affect business internationally. As the world business organization– with a worldwide network reaching over 6 million companies, chambers of commerce

and business associations in more than 130 countries–ICC is committed to ensuring that the voice of business is heard and that business interests considered by policymakers at the highest levels. To that end, we formed the ICC G20 CEO Advisory Group to spearhead global business engagement with G20 governments at the highest levels and to advocate for business priorities within the G20 policymaking processes. I am happy to note that for the fifth consecutive year, ICC CEOs held leadership positions in the B20 task forces and are now recognized by G20 leaders as an important strategic business partner in the push for economic growth and job creation globally. As government and business move forward together, a key challenge will be to ensure that business recommendations remain relevant and that progress continues. With this in mind, the ICC G20 CEO Advisory Group created the ICC G20 Business Scorecard to examine the G20’s recognition of core business messages and its collective policy response to recommendations put forward by the international business community. The third installment of the annual Scorecard shows a year-on-year improvement since ICC’s monitoring began, demonstrating an increasing responsiveness to business priorities over time. ICC and our member companies have high expectations for the G20 Summit this year in Brisbane to provide much-needed stewardship to shore up the drifting world economy and create the confidence to invest.

As government And business move forwArd together, A key chAllenge will be to ensure thAt business recommendAtions remAin relevAnt And thAt progress continues. 88 ❙ G20 Leaders’ 2014

Notably, if G20 leaders follow through on business priorities–such as reducing trade barriers, reinforcing the standstill on protectionism, developing a multilateral framework for investment, implementing transparent infrastructure procurement processes, and removing barriers inhibiting entrepreneurs from starting and growing businesses—they will go a long way in reaching their own target of boosting GDP by 2 percent over the coming five years. The importance of further trade liberalization in achieving this target cannot be underestimated. That is why ICC has pledged unfaltering commitment to a strong, rules-based multilateral trading system embodied by the WTO. We are dedicated to ensuring that global business is an active and constructive partner with WTO members to help strengthen WTO rules and adapt then to the needs of 21st century trading. International business stands ready to work with G20 governments in advancing their growth and jobs agenda before, during, and after the G20 Summit events– from Australia to Turkey and beyond. Together, we can create new opportunities on a global basis that will spur economic growth, create new jobs, and increase prosperity and peace. Terry McGraw Chairman, International Chamber of Commerce

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

National Petrochemical Industrial Company

Energy Transportation Group

Nestle

Novozymes The Rasoi Group Repsol Rothschild Europe Royal Dutch Shell Russian Union of Industrialists and Entrepreneurs Severstal Schneider Electric Telefonica Televisa Wesfarmers Limited Zurich Insurance Group

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.

Focus G20 / G20 Engagement Authored by: Robert Milliner, B20 Sherpa

G20 Business Engagement: The Challenge for 2014 The B20 Australia Summit brought together more than 400 business leaders, government officials, and non-government representatives to discuss policy recommendations for G20 leaders.

he challenge put to G20 leaders following the St Petersburg Leaders Summit in 2013 was to take decisive action to return the global economy to a strong and sustainable growth path. Prime Minister Tony Abbott articulated a strong purpose for Australia’s host year. He committed to focus Australia’s presidency on promoting stronger economic growth and making the global economy more resilient to deal with future shocks. The February Finance Ministers and April Central Bank Governors meetings built on this clear agenda with G20 governments pledging to work together to lift collective GDP by

more than two per cent above trend over the next five years–more than A$2 trillion more in real terms–and add tens of millions of jobs. They committed to take concrete action to increase investment, lift employment and participation, enhance trade and promote competition, in addition to existing macroeconomic policies. The B20 strongly supports these objectives. B20 Priority Areas This year, the B20 committed to a tight focus on a small number of areas where we believed we could make the greatest impact on jobs and growth. The B20 concentrated

ThiS yeAr, The B20 commiTTed To A TiGhT focuS on A SmAll numBer of AreAS where we Believed we could mAke The GreATeST impAcT on joBS And GrowTh. 90 ❙ G20 Leaders’ 2014

on identifying the impediments to a more conducive environment for investment and growth through five groups focused on the core economic drivers of trade, infrastructure, human capital, finance, and transparency. More than 300 taskforce members drawn from over 30 countries in the international business community met regularly to develop, test, and refine a set of recommendations ahead of the July B20 Australia Summit in Sydney. In 2014, B20 Australia also engaged a group of international CEOs known as the CEO Forum, who together with the B20 Australia Leadership Group informed and guided the B20’s work. An Australian Coordinating Chair from the B20 Australia Leadership Group led each taskforce with support from chairs and participants from previous years. The B20 Australia Summit The B20 Australia Summit brought together more than 400 business leaders, government officials and non-government representatives from all G20 countries to discuss, finalise, and prioritise policy

Focus G20 / G20 Engagement recommendations for G20 leaders. The result of this work is 20 mutually reinforcing recommendations for action by G20 governments. These actions are mostly new structural reform measures that if implemented, would drive growth in excess of the G20 target and form a blueprint for sustainable economic growth in the medium term. B20 Blueprint for Growth and Jobs Recent evaluations by the IMF, OECD, and the World Bank highlight the negative impact of lower than expected growth rates on job creation and unemployment and the need for structural reform. Structural reform is challenging because it requires fundamental changes in the conduct and operation of internal markets. In a global economy, structural reforms must also be carefully coordinated to achieve the best outcomes for all communities. This will require both collective actions and collective agreement for unilateral actions to increase economic growth–more trade, better infrastructure, accessible and affordable finance, and human capital in the right place, at the right time, with the right skills. Business supports G20 leaders embracing Country Growth Strategies of sufficient ambition to achieve the two per cent additional growth target. Our recommendations for doing that are drawn from four common themes that are critical to success in a global economy: › Structural flexibility so that governments and business can better respond to the need for change as it arises. The B20 proposes that governments enhance structural flexibility through reforms to promote more efficient and productive supply chains, infrastructure, and labour markets; › Free movement across borders of goods, services, labour, and capital, which is the precondition of a truly global economy. The B20 proposes reforms that tackle trade protectionism, facilitate cross-border investment and better link available labour with productive work; › Consistent and effective regulation to ensure that markets work as efficiently as possible. The B20 supports completion of the stability-enhancing core reforms to global financial markets but recommends improved rule-making processes, and also proposes domestic reforms to improve commercial efficiency; › Integrity and credibility in commerce to ensure that corruption does not create perverse incentives, distort markets or stunt

their growth. The B20 proposes action to incentivise self-reporting, harmonise anti-corruption laws and align beneficial ownership regulation. If G20 countries commit to the proposed reforms the gains will be large, but a failure by any of the G20 countries to commit to and deliver on the proposed reforms will mean a significant opportunity cost. For example, the B20’s four trade recommendations could lead to A$3.4 trillion in GDP which is akin to adding another Germany to the world’s economy. Similarly, closing the infrastructure gap of A$12 to A$22 trillion by 2030 could create 100 million new jobs and A$6 trillion in economic activity. B20 Messages for G20 Leaders The B20 has five key messages for policymakers: › The urgent goal is growth and jobs to lift living standards around the world. There is no room for complacency; › The G20 is the right forum to pursue this goal, because it is the only forum capable of achieving the coordinated action necessary to drive and shape the global economy; › The G20 has set a realistic and necessary growth target, but now must focus on how that target will be achieved; › B20 has identified policy principles to meet the target by focusing on the major impediments to growth and jobs creation; The B20 recommendations require collective agreement by the G20 for unilateral action by each member country. The business community believes the proposals delivered to the G20 are specific, practical, and actionable. If implemented, they will lift inclusive growth, boost participation, create jobs, and build the resilience of the global economy. The business community is committed to working with governments to achieve these outcomes, including through dialogue with governments and communities. B20 Outlook Against a backdrop of declining growth, the B20 believes the G20 remains a critically important and relevant decision-making forum. Returning the global economy to a strong, sustainable growth path will require further coordinated action by developed and developing nations. The G20 is the only forum capable of achieving the necessary level of coordination because it is representative enough to make decisions that change the direction of the global economy

and small enough to make those decisions quickly and effectively. The B20 is committed to helping Australia deliver concrete outcomes from its G20 presidency. Success in this aim will ensure that the Turkish B20 starts from a position of strength in its endeavours to influence the outcomes from the Turkish G20 year. ■ For more information, including the full list of B20 recommendations to the G20, visit www.b20australia.info

Biography Robert Milliner is a Senior Adviser at UBS and the B20 Sherpa for Australia for 2014. From 2004-2011 Robert was Chief Executive Partner of Australia’s pre-eminent international law firm Mallesons Stephen Jaques where he retired from in January 2012 after 28 years as a partner. He has a Bachelor of Commerce and Bachelor of Laws (Hons) from the University of Queensland and an MBA from the University of Western Australia. In 2010 he attended the Advanced Management Program at Harvard Business School.

Brisbane. Australia 2014 ❙ 91

Focus G20 / Youth Engagement Authored by: Scott Limbrick, Deputy Chair of Y20 Australia 2014

Expanding G20 horizons through youth engagement The Y20 means young people need not rely on the discussions of other generations to shape their future.

rom the 12th to 15th of July, just days prior to the official gathering of the B20, more than 100 young leaders from across the G20 and invited economies met in Sydney for the Y20 Australia 2014 Summit. The Y20, or Youth 20, has in recent years joined the Business 20, Labour 20, Civil 20, and Think 20 as an official engagement group of the G20. For young people, this is a welcome addition to the G20’s outreach strategy. By their nature, the decisions made by G20 leaders and officials will disproportionately impact youth in their own countries as well as internationally. Such decisions deal with structural, long-term problems that are difficult to address domestically and must be resolved through international agreement and cooperation. It is clear that the approaches taken to these issues will carry significant consequences for young people as they inherit the economic, social, and environmental opportunities and challenges that have been left for them. Indeed, both the G20 and the B20– through their jobs creation and human capital streams–highlight youth unemployment as one of the key problems to be tackled when speaking to global economic growth. According to the World Bank, more than 300 million young people are neither working nor studying. The World Economic Forum’s Global Risks 2014 report ranked youth unemployment and underemployment as the second most important risk. In one of a series of thought leadership videos created by EyeLevel for the Y20, the Premier of New South Wales Mike Baird noted simply that, “it is important to the global economy that young people are able to access educational opportunities that enable them to enter the labour force and become contributing members of society.” The Y20 means young people need not rely on the discussions of other generations to shape their future. During Australia’s Y20 presidency, participants selected from across the G20 92 ❙ G20 Leaders’ 2014

have discussed and debated ideas over the course of five months under the thematic areas of ‘Jobs and Growth’, ‘Global Citizenship’, and ‘Sustainable Development’. Together, they have produced two documents: three key policy recommendations, presented at a meeting of G20 Sherpas (senior government representatives) and Finance Deputies in Melbourne in June; and a communiqué, adopted by majority vote at the Y20 Summit and presented to the Australian Treasurer, Joe Hockey. Both documents represent the concerns young people have for their future, but they also demonstrate the resolve of youth to take responsibility for and ownership of the solutions to the challenges they face. In drafting recommendations on the topic of jobs creation, youth entrepreneurship emerged as a strong focus. Recognising that businesses started by young people employ more young people, delegates asked that G20 leaders support entrepreneurs by removing bureaucratic and legal hurdles to start-ups and promoting entrepreneurial education to empower young people to take advantage of these reductions in barriers to entry. Queensland University of Technology graduates Shainiel Deo set up Halfbrick Studios in 2001 and later joined by Phil Larsen and Luke Muscat. Their Fruit Ninja game has become one of the most successful video games worldwide, downloaded more than 500 million times and recognised by Apple as the second most popular paid app in the world. Halfbrick now employs 92 people worldwide, mostly in the G20 host city of Brisbane. It has launched the careers of a new generation of digital programmers, designers, artists, production specialists. On labour mobility, leaders were asked to review their migration and visa policies to provide young students and workers greater flexibility in finding employment, all the while being careful to mitigate the impacts of brain drain. Attention was also paid to internships, with delegates requesting a reassessment of measures to prevent the exploitation of interns.

Such proposals strongly align with various recommendations developed by the B20, C20, T20, and L20, a clear signal that G20 leaders should be taking notice. Indeed, the declaration coming out of the recent Labour and Employment Ministers Meeting in Melbourne included twenty-one references to youth unemployment, demonstrating an increased focus on this vital issue. These ideas also cut against the popular notion that young people are not engaged in social or political affairs: they are engaged, and their recommendations aim to increase control of their own lives while encouraging civic engagement more broadly. They are not operating in a silo. Importantly, then, the Y20 provides a broader opportunity for advocacy. Like any constituency, youth incorporates a variety of perspectives and priorities–it is difficult to take any one view as the ‘youth’ view on policy. Yet there is to some extent a shared youth experience where young people confront long-term problems not necessarily encountered by other generations. For this reason, the Y20 delegates’ declaration also calls attention to the challenges of climate change, energy access, and energy efficiency, as well as to questions of net neutrality, fair internet access, youth consultation in public policy, and the mobility of students and workers. Where these issues do not fall squarely within this year’s G20 agenda, young people have sought to bring them to the attention of global leaders for consideration now and under future G20 presidencies. Ultimately, the recommendations proposed by the Y20 will rely on the good faith of G20 officials to be moved forward. However, there is scope for the B20 and other engagement groups to work towards these ends independently and there is a shared interest in doing so. The Y20 is a crosscutting group including representatives from business, civil society, government, and academia, offering a unique perspective on pressing global issues that should be considered carefully by all actors. Meanwhile, young people will continue with their own efforts to ensure that what now appear to be challenges instead become opportunities. ■

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Focus G20 / IT Security Authored by: Hayden Delaney, HopgoodGanim

Creating legal frameworks to encourage investment in IT Security and informational privacy Individuals have lost control of their private information, and that is being misused and exploited. The former CEO of Intel Corporation, Alex Grove, was quoted in 2000 as saying: “At the heart of the internet culture is a force that wants to find out everything about you. And once it has found out everything about you and two hundred million others, that’s a valuable asset and people will be tempted to trade and do commerce with that asset.”

he statement boldly predicted the value, and industry, of so called “Big Data”. One only has to look to the news to see relentless push of technology invading, often without consent, the private sphere of our lives. The potential harm to both individuals and business, include the excessive use of personal information for commercial purposes (such as Big Data analytics), unlawful security and data breaches, and theft of confidential information and IP. Informational privacy and data protection laws do go some of the way to encouraging the adoption of good privacy practices and

100 ❙ G20 Leaders’ 2014

regulating breaches of informational privacy. However, further change is required at the legal and policy level in order to create an ecosystem where investment in informational privacy and security is encouraged. The primary tool to empower an individual to protect their personal information or a corporation its confidential information is via readily available strong encryption. The adoption of cloud services at the consumer level–via things such as iCloud or Gmail–and at the commercial level further exacerbates the problem because there is a loss of physical control of data, often without user awareness. The recent well-publicised data breaches involving unauthorised access to celebrity Apple iCloud accounts illustrate the problem.1 Individuals have lost control of their private information, and that is being misused and exploited. This paper argues for law reform which incentivises investment in IT security products and systems. It calls for a reconsideration of export control laws which impede the adoption and use of cryptography among G20 member states and their citizens, and it recommends a standards-based approach for privacy and IT security to enable competition, interoperability, and innovation. Controls on the use of cryptography and Brisbane’s role in the “crypto wars” While many may not be aware, Brisbane played a central role in the “crypto wars” in the late nineties. RSA Security set up its development facility in Brisbane for almost the sole purpose of avoiding the strict export control laws on cryptography in the United States.2 The purpose of the Brisbane office was to allow RSA to more easily sell its security-software components to foreign companies. RSA continues to maintain its development office in Brisbane to this day. OpenSSL’s3 origin is also from Brisbane in the form of Eric Young and Tim Hudson who went on to found Cryptsoft (a Brisbane-based security technology company, and later to found the RSA Brisbane operation). Cryptography and encryption is the framework-technology upon which all electronic communications and transactions are secured. In many ways, the infrastructure of the internet and the trust and confidence of its users depend upon strong encryption. Having ready access to encryption was the core of the “crypto wars” in the nineties and remains a vital technology today. While cryptography has always been a closely guarded technology used for defence and military purposes, encryption and encryption controls were catapulted into

Focus G20 / IT Security

mainstream culture with the proliferation of consumer computing devices, such as the personal computer. The matter was brought further to light when Phil Zimmermann’s PGP (or “Pretty Good Privacy”) cryptographic software was famously, and controversially, made publicly available on the internet in the nineties. This saw cryptography products subject to equivalent controls on the export of weapons and munitions. Most export controls over cryptography are based on the Wassenaar Arrangement, which is a multi-lateral export control regime encompassing 41 participating states (many of which are G20 states). Most countries which participate in the Wassenaar Arrangement still, to this day, have export restrictions in place over certain cryptographic “goods”, including Australia by virtue of the Customs (Prohibited Exports) Regulations 1958 (Cth). There were valid policy reasons behind these laws, most of which relate to national security concerns and a fear that criminals and terrorists might rely upon

cryptography to hide their illicit activities (which, of course, they do). Export laws in many jurisdictions which participate in the Wassenaar Arrangement operate on the base-premise of strictly controlling physical devices which embody cryptographic methods and algorithms (usually in the form of software). This overlooks the fact that most cryptographic software applications are not embodied in tangible goods but are distributed electronically via the internet. The legal frameworks governing such arrangements have failed to keep pace with the technological changes in the space. The end result is that all cryptography and all uses of cryptography remain locked in a bygone era. We have a large collection of laws in place which serve no purpose in the context of widely available strong cryptography and such laws serve as a bureaucratic barrier to modern Internetbased commerce. Given the mass-proliferation and use

of encryption technologies–from SSL/TLS to TOR to Bitcoin–one has to ask whether these laws have had any efficacy at all in achieving their goals and have any relevance in the modern world. Informational privacy in Australia and globally One of the most challenging issues for the law globally, is the application of the rules of jurisdiction to the internet and the movement of data. Historically, the concept of jurisdiction evolved in relation to geographical boundaries, with each state asserting sovereignty over “persons and things” within its boundaries. However, the evolution of technology issues of sovereignty not only over “persons and things”, but intangible property, such as personal information and data containing intellectual property rights and confidential information. This legal challenge is classified under the umbrella term “data sovereignty”. › Brisbane. Australia 2014 ❙ 101

Focus G20 / IT Security › In Australia, the Privacy Act regulates ways in which certain agencies and organisations collect, use and disclose personal information. Privacy law has been the subject of some significant recent reforms brought about by the Privacy Amendment (Enhancing Privacy Protection) Act 2012. These law reforms have, in part, encouraged investment in information privacy via: › Incorporating principles of “privacy by design” which require reasonable steps be taken to implement practices, procedures and systems that ensures compliance; and › A requirement to take reasonable steps to secure personal information. Separately, data breach notification laws are also currently being considered which are currently quite different to, but draw inspiration from, the data breach notification laws in place in jurisdictions like California, USA4. Conflict of informational privacy laws is a problem of increasing legal and economic significance. The adoption of more uniform informational privacy laws by G20 countries would have considerable benefits. It would dispel some of the legal impediments to cloud solutions which regulate the cross-border disclosure of personal information. Turning back to the recent reforms to Australia’s privacy laws–for instance: › Australian Privacy Principle (APP) 8 requires steps as are reasonable in the circumstances to ensure that the overseas recipient does not breach the APPs; and › Section 16C of the Privacy Act imposes ongoing liability on Australian entities which disclose personal information outside of Australia (including via cloud services), such that the acts or omissions of overseas recipients of personal information which breach Australian privacy law are taken to have been done by the Australian disclosing entity. Similar issues are faced between EU organisations doing business with US organisations, which resulted in Safe Harbor Principles5 after trade between the US and EU was affected because of the mismatch between the informational privacy laws in the respective jurisdictions. In addition to increased uniformity in informational privacy laws (which would of course require significant bipartisan support among G20 member-states), interoperable standards-based information systems will have a radical impact on not only resolving some key data-sovereignty issues but also 102 ❙ G20 Leaders’ 2014

One Of the mOst challengIng Issues fOr the law glObally, Is the applIcatIOn Of the rules Of jurIsdIctIOn tO the Internet and the mOvement Of data and OrganIsatIOns cOllect, use and dIsclOse persOnal. InfOrmatIOn. empowering individuals and organisations to maintain control and security of their data, particularly in cloud environments. Large global organisations are seeing these opportunities and designing their products with this in mind. For instance, Apple and Google are now ensuring that encryption keys are wrapped on-device and protected using authentication details from the customer. This ensures user control over data. Cloud services and interoperable security systems: a standards based approach? Uniform information standards encourage competition in markets where vendors previously locked customers into fixed, static and proprietary formats. This is particularly the case in the IT security and encryption space. Interoperable technologies and standards are required which enable plug-and-play exchange of IT vendor equipment. Organisations like the Organization for the Advancement of Structured Information Standards (OASIS) are at the forefront of this space, with standards such as the Key Management InteroperabilityProtocol (KMIP) Standard and the OASIS PKCS#11 Cryptographic Token Standard now in use by major IT security vendors. When properly implemented, these standards enable vendors and service

providers to provide interoperable security systems and to push the management of encryption keys down to the customer or end-user level.6 These products and standards combining to change how organisations manage and secure their data through each phase of the information lifecycle which, in turn, makes compliance with informational privacy and data protection laws a more streamlined, automated process. For example, if user data is stored in offshore cloud infrastructure, standards-based encryption solutions can be used to enable a cloud-services customer to “push” the management of the associated encryption keys to a jurisdiction which has equivalent privacy laws. In addition, ensuring customermanaged keys enables the data to remain in a de-identified encrypted state and avoid the impact of the cross border disclosure laws mentioned above as well as the risk of unauthorised data breaches. Ultimately, the compliance burden and the mitigation of privacy risks needs to fall on multi-disciplinary teams involving legal professionals and IT security experts. Legal frameworks need to be appropriate to encourage growth in the adoption of proper IT governance and security practices. Informational privacy is, and will continue to be, a significant challenge for the law around the world. ■

1 It is worth noting that following these incidents, Apple and Google announced that they would be pushing encryption keys down to the user device level, to lock vendors, law enforcement officials and hackers out of the data. This paper recommends similar security architecture. See for example: www.itnews.com.au/News/392277,google-follows-apple-to-lock-itself-out-of-devices.aspx; and www.smh. com.au/digital-life/consumer-security/encryption-in-ios-8-means-apple-cannot-unlock-iphones-ipads-for-police-20140918-10j2t3.html 2 See for example www.computerworld.com.au/article/108057/rsa_sells_encryption_software_from_australia/ andwww.archive.wired. com/science/discoveries/news/1999/01/17185 3 The most notable software using OpenSSL are the open source web servers like Apache and nginx. The combined market share of just those two out of the active sites on the Internet was over 66% according to Netcraft’s April 2014 Web Server Survey.Furthermore OpenSSL is used to protect for example email servers (SMTP, POP and IMAP protocols), chat servers (XMPP protocol), virtual private networks (SSL VPNs), network appliances and wide variety of client side software. 4 See California S.B. 1386. 5 See 2000/520/EC: Commission Decision of 26 July 2000 pursuant to Directive 95/46/EC of the European Parliament and of the Council. 6 A Brisbane-based IT consultancy, Cryptsoft, is a leader in this space, licensing standards-compliant software development kits to some of the world’s leading IT security vendors.

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Story / Future of Energy Authored by: Jean-Pascal Tricoire, Chairman & CEO of Schneider Electric

The new world of energy: Digital, local and consumer focused Jean-pascal tricoire comments on newfound issues with increasingly decentralised energy systems and his optimism for the future of global energy .

he energy world is changing. From a concentrated and centralised system discovered in 1888, the energy system is evolving to a decentralized system with diverse energy generation sources. There are two main factors causing this transformation: the introduction of information technology in the energy sector, and the emergence of alternative energy generation sources at scalable levels. The convergence of information technology and energy In the past 20 years, the internet has connected 2.5 billion people together and in the coming six years, this number will double. Concurrently, the internet will connect 40 billion machines to those 5 billion connected people. The next stage of connectivity is about machines. The combination of IT software with electrical devices and products provides customers with real-time information and smart services that allow all stakeholders an opportunity to implement active energy efficiency, share better energy, and consume at the right moment across smart grids. Alternative energy generation sources From the shale-gas boom in America to the rise of renewables in the energy mix, energy

sources is widening and reaching scalability. The price of crystalline silicon photovoltaic cells, for instance, have gone from US$78 per watt to US$0.72 in less than 4 decades (1978 to 2013, BNEF). Policy driven markets have facilitated the deployment of these technologies that are reaching grid-parity in many markets. As of the first quarter of 2014, there are 79 countries where price of photovoltaic electricity is equal to or less than the grid average price (Al Gore, http://www.politico.com/). This wider choice in energy generation sources, combined with the emergence of information technologies in the energy sector, are redefining the energy ecosystems on demand and supply side, and paving opportunities of increased efficiency at all levels, from people to power plant, to ensure a complete optimisation of the supply chain. Impact on the entire energy chain For consumers, the connection of energy systems, phones and machines, in everyday life provides real-time information on consumers’ needs and offers an opportunity to control their consumption. It reduces the consumers’ energy bill, and increases their purchasing power within a very short pay back. Access to real time information and flexible, connected devices, allow consumers to change their consumption patterns. They

are empowered to choose when, what and how they consume energy, presumably when electricity is cheap and green. At the utilities and regional level, energy efficiency enables increasingly reliable supply and provides hedging against black outs. It also saves significant amounts in investments costs by avoiding the creation of new plants. Energy efficient technologies also save significant amounts by increasing resilience, security and anticipation of extreme weather conditions. Utilities can connect supply and demand, and offer new services to their customers, so that they consume less and at a more optimal time. At a country level, the implementation of higher energy efficiency levels creates an economic opportunity for reduced public expenditure as Governments balance their energy trades that are causing major strains on the economy. The EU energy balance has multiplied by six in 10 years, with oil imports alone reaching USD 500bn in 2012 (Enerdata, 2013).The Efficient World Scenario put forward by the World Energy Outlook of the IEA, highlights that there could be US$570Bn positive effect of the Energy Balance of five key regions, with China seeing US$190Bn and India USD 110Bn of positive effect, through the implementation of a higher energy efficient

In the past 20 years the Internet has connected 2.5 bIllIon people together. In the comIng 8 years, thIs number wIll double. concurrently the Internet wIll connect 40 bIllIon machInes to those 5 bIllIon connected people. 108 ❙ G20 Leaders’ 2014

Story / Future of Energy

scenario; as well as a huge potential for job creation, with estimates ranging from 800,000 to 1 million jobs by 2025 in a country like France (Ademe, OFCE, 2013). Power the People Individuals are at the centre of this new energy world, where roles are redefined. No doubt, utilities must keep their central role in this evolution and they are already rethinking the way they operate and address customers. Customers are changing in needs, behaviours as well as demands.This transition needs solid change management to avoid overproduction. All stakeholders, utilities, cities, facility managers, technology suppliers, should be prepared to continue an evolution in their roles, in business models and in technology offers. The transformation places consumers at the center and opens the way for new models of consuming energy and managing resources. A reliable and simple technology is needed to guide all through the various transitions. Technologies exist to harness this efficiency at all levels The evolution of technologies, through software and the Internet of Things, is opening new means of optimising the overall energy chain through systems of integration. Such systems ensure that energy is safe, reliable, green, and efficient for the least amount of money. Already, by using the internet to connect people to their environment, and their environment to the smart grid, by switching off automatically, by promoting consumption when energy is cheap and green, at least 30% savings is achieved through energy efficiency measures that do not involve major renovations or disturbances to the end-users.

All this with paybacks under five years. Software now allows the curtailment of peaks. As an example, Schneider’s EnergyPool has curtailed over 1.7GW of energy since its inception—equivalent to one nuclear reactor. Customers in buildings, industry, Data centres and infrastructures are offered a range of technologies, from products to systems and solutions, that restrain energy use and allow saving energy throughout the entire chain. While we should embrace cost-effective tactics to confront some of the major challenges of our generation—from resource scarcity, traffic congestion, pollution, and an increase in extreme weather conditions, as well as energy poverty and competitiveness— estimates show that over two-thirds of energy efficiency’s cost-effective potential is still not being implemented. Change is now Market failures and resistance to change explain this untapped potential. Pay back times are short, within a few years, and investments are refunded by savings. Governments should create environments to facilitate the implementation of energy efficiency and smart grids. They should enforce a level-playing field and ensure that all energy markets are free and competitive, notably by halting subsidies of fossil fuel technology.1 Transitions can be long. But this one is worthwhile, and should be happening faster as it brings benefits to all: Carbon emissions reduction, consumer purchasing power, job creation, and country balance of payments and capital expenditure avoidance. It is time to power the people and unleash a new world of energy that is digital, local and consumer focused. ■

Estimates show that there are still yearly subsidies of over USD 500bn in fossil fuel generation and some renewable subsidies are no longer justified.

Biography Jean-Pascal Tricoire, 50 years old, joined Schneider Electric in 1986. He was appointed President and Chief Executive Officer in 2006 and named Chairman & CEO in April 2013. His career at Schneider Electric has developed largely outside France in operational functions in Italy, China, South Africa and USA. Within the General Management, he served as Vice Executive President of the International Operating Division from 2002 before being appointed in 2004 Chief Operating Officer (COO). Jean-Pascal is President of the France-China Committee since 2009 and holds a degree in Electronic Engineering and a MBA.

Brisbane. Australia 2014 ❙ 109

Schneider Electric

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Focus G20 / Public and Private Sectors Authored by: Dr. Daniel Woker

The growing nexus between the public and private sectors In order for public private partnerships to be effective, the process must begin at the university level.

espite growing interdependence, private sector representatives often know everything about their own business and their markets but very little about their larger public sector environment. Acquiring such knowledge is a lifelong learning process that should start in business school. Knowing the public sector, its national and international policies as well as its representatives will help private sector entities to avoid costly political mistakes. The G20/B20 Summit is the public sector’s acknowledgment that the private sector is indispensable for growth and development. However the opposite has not yet happened. This might be understandable, but is unwise as the importance of public sector policy for, and its influence over, the private sector increases with growing interdependence between mature and emerging markets. The private sector, especially in the West, continues to see the public sector as a necessary evil and as a fundamentally adverse presence best to be avoided. That explains why large, legitimate business entities will go to absurd lengths to avoid paying taxes. Now, of course, they will point to their efforts to retain as much wealth as possible for managers, staff, and stock holders. That still begs the question though, how paying no or super low taxes in the Bahamas, the Bermudas, or in an obscure Swiss mountain canton helps to provide for physical infrastructure, schools, and countless other state provisions vital for the very existence of a private sector enterprise where its main market is situated. A big part of the problem lays in the fact that private sector participants, especially those from the West often know virtually nothing about how the public sector works and how its representatives think. This is particularly worrying at a time when, both directly and indirectly, the part of the public

112 ❙ G20 Leaders’ 2014

sector in everyday economic life is growing everywhere. This growth can be seen directly in the form of greatly increased interaction between the two sectors, especially in international trade and transnational added value chains in production. Most Chinese companies, for example, are still either outright SOEs (State Owned Enterprise) or comprise a sizeable number of employees who originally hail from the public sector and see nothing wrong with direct state interference in, and often ultimate political control over private business. The increasing role of the public sector is seen indirectly in solutions to the presently greatest challenges facing mankind–local conflict containment, climate change, sustainable production of foodstuffs and water, income inequalities between and inside societies, health care, and old age care for all–can only be provided by overarching PPP (Public Private Partnership) in a large interpretation of this fashionable expression. Mutual comprehension between the two sectors should already be taught at the relatively small number of influential, internationally active business schools where future private industry leaders are preparing for their tasks. There, they learn everything about their markets and their bottom lines but virtually nothing about the greater strategic and social environment in the different markets where they will be active. It can be argued that such political preparation is an ad hoc task for each individual once he or she is sent to a particular place and market. If time is of essence or special knowledge is required, such can still be procured, albeit at considerable cost, from the ubiquitous consultant teaching everything from local table manners to the facilitation of access to the locally high and mighty.

Judging from my long experience both as a diplomat–thus a public sector employee helping business representatives understand and establish themselves in foreign markets– and now as a Senior Lecturer at one of the globally leading business schools, there is a much more efficient, and considerably less expensive, way for private business representatives to acquire the necessary knowledge and skills. The respective learning processes should be started in business school with courses offered jointly by instructors with first-hand experience in both sectors; for example, an ‘Entrepreneur in Residence’ together with an ‘Ambassador in Residence’. Private sector representatives will then have to continue the process all through their working life by being present in the public sector, by staying in legitimate contact with civil servants, and frequenting those with special insight such as policy think-tanks and NGOs. ■

Biography Dr. Daniel Woker is the former Swiss Ambassador to Australia, Singapore, and Kuwait. He currently works as a Senior Lecturer at the University of St. Gallen, as the first ‘Ambassador-in-Residence’ of the University’s Executive School.

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Focus G20 / Global Governance Authored by: Wesley Widmaier, Australian Research Council Future Fellow

The G20 and Global Governance: Early successes, later lessons The G20 deserves an “A+” for its efforts in promoting cooperation in the wake of the Global Financial Crisis, but deserves an “F” for its following actions.

ince the G20’s emergence as a leadership forum in the October 2008 aftermath of the Global Financial Crisis (GFC), it has followed spectacular early successes in putting a floor under a global economic collapse with a disappointing shift to embrace the politics of austerity, only to partly reverse the stance while confronting the inevitable limitations of global governance in the willingness of actors—in this case, European states—to persist in self-inflicting self-inflicted wounds on themselves. In short, one can draw three broad lessons about post-GFC global governance and the role of the G20 in its effectiveness.

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First, it showed how successful global governance could work in promoting an energetic macroeconomic response to the GFC, enabling an early stabilisation of the global economy. Second, it showed how cooperation in global governance could be a “bad thing” if done for the wrong reasons, as the world pivoted toward austerity in late 2009. Finally, it showed how international organisations are limited where states want to “go their own way”—as Europe in particular remained committed to austerity for far too long, even as the Euro itself was threatened with collapse.

Lesson One: Early Successes in Stimulating Recovery Taking the first of these lessons–regarding GFC successes–the world needs institutions like the G20 to look after a global common good that cannot be advanced, even by the most powerful states, on their own. To put this lesson in historical terms, if there was a single moral of the Great Depression of the 1930s, it was that states in crises could not simply “tighten their belts” in the face of falling growth. In a manner reinforced by the classical gold standard of the day, where every state tried to cut spending, the result was to lower growth for all–

Focus G20 / Global Governance and so cause every state’s deficits to rise. In a classic paradox, where every state tried to act responsibly on its own, the result was collective irresponsibility. In the 1930s, such paradoxes were recognized most prominently by the economist John Maynard Keynes, who argued that the gold standard was essentially a transmission mechanism for austerity. Countries were trapped by their ties to the “rock” and could not print money or run deficits—to the point that in 1931 Britain itself was forced to choose between financial respectability and keeping the Royal Navy afloat—ultimately opting for the latter. In 1933, US President Franklin Roosevelt would spectacularly scuttle a London Economic Conference that had been meant to help states restore the gold standard. Roosevelt had had enough of deflation, and saw restoring the gold standard as threatening to deepen a global self-inflicted wound. Lesson Two: Cooperation is Not Always a Good Thing, If It’s For a Bad Idea This points to a second lesson that has emerged in the aftermath of the Global Financial Crisis for the G20. Global governance is not necessarily a good thing where states pursue what might be termed “economically illiterate” policies. Beginning in late 2009—only a year after the depths of the crisis— G20 discussions were increasingly marked with calls for the need to plot a path back to fiscal responsibility. In a global context marked by double-digit unemployment across the US and Europe, this was absolutely premature. For example, in his recent memoirs, former US Treasury Secretary Timothy Geithner has admitted to his own missteps in late 2009 debates within the Obama administration, recalling that: “I was usually the fiscal hawk, arguing that we had to show the world we would address our unsustainable long-term fiscal path even as we pushed for more near-term stimulus.” Geithner recalled that his administration colleague National Economic Council Director Larry Summers “said that would be a dumb validation of austerity arguments”. Nevertheless, the pull of responsible thinking would be hard for Geithner to resist, as he himself conceded that “I had some sympathy, probably unwisely, for a plan floating around in Congress to create a bipartisan deficit reduction commission… I just thought, perhaps naïvely, that showing our willingness to hit the brakes in the future would give us a better chance to persuade Congress to let us

RoosevelT hAd hAd enouGh oF deFlATion, And sAw ResToRinG The Gold sTAndARd As ThReATeninG To deepen A GlobAl selF-inFliCTed wound. keep our foot on the gas pedal now.” Enthusiasm for austerity would peak in late 2010 at the G20 summit in Seoul, South Korea. It was at this summit that US Federal Reserve Chairman Ben Bernanke came to explain the Fed’s policy of “Quantitative Easing,” as it would purchase A$600 billion in Treasury bonds, flooding the economy with money, The Seoul summit witnessed widespread opposition to this move, with Bernanke and Obama equally being pummelled by China (charging the US with manipulating its currency), Brazil (fearing the funds would spill over into increased energy prices), and Germany (fearing a return to the inflation of the 1970s). Some of these concerns, Bernanke conceded, were not unreasonable, particularly with respect to concerns for energy prices and revived speculative excesses. Nevertheless, in keeping with a fundamental Keynesian insight, Bernanke was concerned that in the absence of an energetic monetary policy, the continued weakness of the US economy itself would drive down the dollar. In effect, currency instability was a danger no matter what the US did. Moreover, the fear that such policies would prove inflationary was never one to be taken seriously–as high unemployment rates in the US and elsewhere meant that the wage-price pressures necessary to inflation were never in the offing. To be sure, the ongoing “tapering” of “QE3” remains a concern as states worry that it will result in a flight of capital back to the US—but the Federal Reserve’s gradualist approach seems to have eased such potential dangers on ITS own. Lesson Three: States Can Go Their Own Way Finally, a third lesson for global governance is that the G20 cannot stop states from shooting themselves in the foot. In contrast to the moderate success stories in the US and China, the European Union remained until very recently doggedly devoted to deficit reduction. In this light, even now, it remains unclear whether the European economy has even begun to recover, with economic growth

remaining stuck below one percent. Indeed, the European debt crisis was the definition of a self-inflicted wound—as Greece could have easily been bailed out with a mere A$50 billion or so, appropriately timed. As it stands, the EU’s overall unemployment rate remains in double digits, at 10.6 percent. Broken down regionally, it gets worse. Spain’s unemployment rate is over 25 percent; Italy is at 14 percent. These are numbers that evoke notions of “lost generations”—and over time fuel political extremism. To be sure, there are some signs of European movement, as the European Central Bank has pushed interest rates into negative territory and France and Italy have been pushing for a relaxation of budgetary rules. Nevertheless, European persistence in austerity demonstrates the limits to G20 efforts Coordinating Resources or Ideas? Looking back, even as the G20 deserves an “A+” for its early efforts in promoting cooperation to avert an unprecedented global collapse in late 2008, it deserves an “F” for shifting over the very next year toward an ill-advised belt tightening, and a “C” for subsequently recognising the limits to austerity. In this light, the challenge of global governance is not simply one of marshalling fiscal and monetary resources—it is one of advancing ideas most conducive to stable recovery. In this light, it is worth reflecting on the insights of John Maynard Keynes on the dilemmas of global governance back in the 1930s, as he argued that: “…our predicament is notoriously of another kind. It comes from some failure in the immaterial devices of the mind…necessary to put in movement the resources and technical means we already have. It is as though two motor-drivers, meeting in the middle of a highway, were unable to pass one another because neither knows the rule of the road. Their own muscles are no use; a motor engineer cannot help them; a better road would not serve. Nothing is required and nothing will avail, except a little, a very little, clear thinking.” ■ Brisbane. Australia 2014 ❙ 115

Focus G20 / Job creation Authored by: Fabrizio Carmignani, Discipline Head of Economics, Griffith Business School, Griffith University

Strategies for sustainable job creation

Making employment responsive to growth, ensuring a supporting environment for the private business sector and addressing barriers that limit mobility of workers should be among the priorities for G20 leaders developing strategies for sustainable job creation.

mployment (or lack thereof) is central to social and economic development. It is through work that individuals earn the income necessary to provide for their families and to improve their living standards. Conversely, when work is not available for long periods of time, individuals are at greater risk of poverty and disparities between those who have a job and those who do not undermine social cohesion. It is therefore not surprising that job creation comes always at the very top of the agenda of national governments and international institutions. The G20 is no exception. Employment is included as a priority in the G20 agenda. A taskforce co-chaired by Australia and Turkey coordinates the development of members’ employment plans that will be included in country growth strategies at the Labour and Employment Ministerial meeting where Heads of States and Heads of Governments attended. On 10 and 11 September, a G20 Labour and Employment Ministerial Meeting was held in Melbourne to discuss an ambitious action plan to prevent structural unemployment, create better jobs, address the issue of informality and underemployment, promote safer workplaces, and boost participation in the workforce, especially among youth and women. In the aftermath of the Global Financial Crisis (GFC), interventions in support of employment are more necessary than ever. The World Bank (2013)1 indicates that some 200 million people, including 75 million under the age of 25, are currently unemployed, while many millions more are

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not even participating in the labour force. International Monetary Fund data2 show that after growing at an average annual rate of 1 percent between 1980 and 2008, employment in “advanced” economies dropped by 3 percent as a result of the GFC. Correspondingly, the unemployment rate jumped from 5.8 percent in 2008 to 8.3 percent in 2010. While the number of employed individuals is forecast to return to its pre-crisis level in 2014, the unemployment rate is still projected at 7.5 percent in 2014 and not expected to fall below 6.5 percent before 2019. Looking ahead, it is expected that 600 million jobs worldwide will have to be created to maintain current employment rates over the next 15 years. If not addressed, widespread lack of employment will place an unbearable burden on social and economic structures, leading to an era of hardship and exclusion for many millions around the globe. It is hard to think of a more cogent priority than creating jobs. The question, of course, is how to achieve this. While there is not such a thing as a unique recipe for job creation and different countries might need different type of policies and approaches, the evidence and data produced by many years of economic analysis provide some helpful guiding principles. First of all, it is clear that job creation requires intervening on both the demand and the supply side of the labour market. Strengthening the demand of labour without ensuring that an adequate supply exists (in terms of quality, skills, etc.) is likely to result in a mismatched labour market, with poor employment outcomes. Therefore, the rest of this note presents some

observations and considerations on demandside and supply-side policies. To start with the demand-side, a sustained rate of job creation requires a sustained rate of economic growth in the long-term. However, while growth is likely a necessary condition for job creation (it is hard to think of an economy that can create jobs without going through a period of strong economic growth), it is hardly a sufficient condition. For instance, especially in developing countries, growth based on the export of natural resources does not lead to much employment creation. This is because the exploitation of natural resources is not labour intensive and trickle-down effects on to the rest of the economy are often quantitatively marginal. More generally, for the purpose of job creation, it is important to ensure that growth is employment-intensive. Estimates based on Penn World Tables data3 suggest that the growth elasticity of employment is around 0.4—that is, every one percentage point of GDP growth is associated with employment growth of 0.4 percentage points. Given a current total employment of roughly

Focus G20 / Job creation

LookinG ahead, it is expected that 600 MiLLion jobs worLdwide wiLL have to be created to Maintain current eMpLoyMent rates over the next 15 years.

3 billion people, this elasticity means that global GDP growth will have to grow by 50 percent in 15 years to generate 600 million new jobs. This growth target is more ambitious than the one set by the G20 countries back in February 2014. The implication is that countries ought to identify a set of policies that promote growth and make employment more responsive to this growth. Macroeconomic stabilisation—that is, the use of fiscal and monetary policies to counter-act the cyclical fluctuations of the economy–is likely one such policy. On the one hand, cyclical volatility is generally associated with higher uncertainty, lower investment, and hence slower growth. On the other hand, the decline in employment suffered in recessions is difficult to recover in expansions. Therefore, policies that stabilise the cycle contribute to faster and more employmentintensive growth. A second important area of policy action concerns the business environment. Most employment is generated by the private sector; hence it is necessary to ensure that private businesses can operate

within a supporting environment. This includes effective legal mechanisms for the enforcement of economic rights, transparent and effective business regulations, control of corruption, and access to both infrastructure and credit. Turning to the supply-side, a sustainable increase in employment is possible only if adequate human capital is available. This means that the economy must be endowed with a sufficiently large number of individuals who have the right set of skills to take up the jobs which become available on the market. Human capital formation is essentially a matter of investment in education and health. Here the public sector has a crucial role to play. By publicly supplying education and health, governments can improve future employment outcomes and also achieve redistribution of opportunities and greater social mobility. Public investment in education and health should not just be a matter of quantity (e.g. building more schools or more hospitals), but also quality. For instance, continuously upgrading curriculums is essential to ensure that

students and graduates enter the job market with the skills that are effectively required by employers. Still on the supply-side, strategies for job creation need to address the barriers that limit the mobility of workers across sectors and geographical locations. Economic growth and development often occur through a process of “creative destruction”. As part of this process, some sectors become obsolete and are replaced by new emerging sectors. Similarly, in a globalised economy, production is relocated between cities, regions, or even states, so that jobs might become available at different times in different locations. Workers should be put in the condition to move towards those sectors or areas where work becomes available. To some extent, this can be achieved through active labour market policies whereby jobseekers are re-qualified through training programmes and assisted in the job search process. At the same, employment protection legislation should be designed in such a way not to slow down labour reallocation across sectors as this would lead to an increase in the duration of unemployment. ■ 1 World Bank Development Report 2013, World Bank, Washington.2 World Economic Outlook Database, April 2014. 2 World Economic Outlook Database, April 2014. 3 https://pwt.sas.upenn.edu/ . These author’s estimates are substantially similar ot other estimates reported in the literature, see Kapsos, S. (2005). “The Employment Intensity of Growth: Trends and Macroeconomic Determinants,” ILO Employment Strategy Papers 12 (Geneva: International Labour Organization). Recent IMF estimates indicate that the elasticity is between 0.3 and 0.8, see Crivelli, E., Furceri, D., Toujas-Bernate, J. (2012) “Can Policies Affect Employment Intensity in Growth? A Cross-Country Analysis”, IMF Working Paper WP12/218.

Brisbane. Australia 2014 ❙ 117

Focus G20 / Dispute Settlement Systems Authored by: Richard Rousseau

WTO and WIPO dispute settlement systems: Success stories The WTO and the WIPO Centre offer unique and broadly successful means of settling disputes using international rule of law, providing templates for the future development of world trade.

he World Trade Organization (WTO) is probably one of the best-known international institutions, certainly when compared with its nearest counterparts, the IMF and World Bank. It was tasked with providing a level playing field so that countries would be able to conduct trade under common rules. However, in the eyes of its members the importance of belonging to WTO is as much political as economic. The WTO is criticized in many circles for not keeping pace with the changes affecting world trade. The global economy has been put into a state of flux by the shifting levels of cross-border flows of goods, services, know-how, investment, and peopleâ&#x20AC;&#x201D;supplychain trade, in economic jargon. Therefore, the WTO is facing a difficult dilemma: whether to keep on fulfilling its original mission or address the new and emerging realities of the 21st century. Its lack of response to new challenges has made the WTO appear to be in the grip of a chronic malaise. For instance, developing and industrial countries have been caught up in an acrimonious conflict over tariffs and agricultural barriers since the beginning of the Doha Development Round in 2001, despite its mission to be a mediator in such conflicts. However, two apparatuses within the WTO have performed extremely well: the Dispute Settlement Body and the World Intellectual Property Organization (WIPO) Arbitration and Mediation Centre. The World Trade Organization (WTO) dispute settlement system is a vital element in the maintenance of international trade and the enforcement of WTO rules. Established in 1995, it has an impressive compliance rate (over 80 percent), particularly when compared to other international state-to-state dispute settlement mechanisms.

118 â?&#x2122; G20 Leadersâ&#x20AC;&#x2122; 2014

Focus G20 / Dispute Settlement Systems It addresses a wide range of trade-related topics: from trade in goods and services to intellectual property (IP) rights. WTO success in regulating international trade over the past 15 years is in no small way attributable to its dispute settlement mechanism. This work is undertaken by WTO’s Dispute Settlement Body (DSB), a political body composed of representatives from all WTO member states. Decisions to initiate dispute proceedings and adopt reports from one of the two WTO dispute instances (Panel and Appellate Body) are taken by “reverse consensus” or “consensus against”—if at least one member agrees, the decision is adopted. This unique feature, not present under the old GATT (1947-1994), has transformed the WTO dispute settlement system into both an automatic and a compulsory mechanism. Despite the relatively large number of cases dealt with, many disputes are resolved merely through consultations between the parties concerned: of the 482 consultation requests made so far by WTO members, less than half (46 percent) of disputes have progressed to the Panel hearing stage. In turn, approximately 70 percent of Panel reports have been appealed against, and in the vast majority (88 percent) of cases, one or more violations of substantive WTO obligations have been found by Panels or the Appellate Body. Finally, in only 19 cases has the WTO authorised trade sanctions or the suspension of WTO concessions, the measure of last resort in the event a WTO member fails to implement adverse rulings within a reasonable timeframe. In 2009, after a decade-long dispute, Brazil was authorised to “retaliate” against U.S. products as a result of WTO-inconsistent subsidies granted to U.S. cotton producers. There was an added twist, though: Brazil was also authorised to impose sanctions on IP rights held by U.S. companies. This so-called “cross retaliation” has been authorised by the WTO in only three cases so far, and Brazil seems to be the only country actually preparing to take such measures. Yet, in 2010, Brazilian retaliatory measures were suspended thanks to a U.S.-Brazil agreement (the U.S. agreed to pay the Brazilian cotton industry US$147.3 million annually, in monthly installments), which managed, at least temporarily, to defuse a major trade dispute. However, for budgetary reasons, the Obama Administration put an end to those payments in October 2013. In January 2014, Brazil threatened again to take retaliatory measures against a wide variety of U.S. goods and intellectual property rights.

The World Intellectual Property Organization (WIPO) Arbitration and Mediation Centre, created in 1994, is another ‘success story’. It aims to resolve commercial intellectual property disputes between private parties. It has heard over 320 mediation and arbitration cases, dealing mainly with patents (44 percent), IT and telecom (17 percent), trademark (9 percent) and copyright (7 percent) issues. Common users of the WIPO Centre’s services include collecting societies, artists, inventors, producers and universities. The WIPO Centre also offers internet domain name resolution dispute, having conducted almost 18,000 proceedings under the Uniform Domain Resolution Policy. These proceedings, which involve primarily .com, .org, and .net domains, enable trademark-holders to challenge bad faith registration and use of domain names associated with their trademarks. Thanks to this mechanism, pop stars including Madonna and Sting successfully reclaimed websites or domain names carrying their name. WIPO and WTO dispute settlement mechanisms are used by different parties (only states, not private parties, have standing at the WTO), and are governed by different rules: WIPO applies WIPO treaties, and WTO applies WTO agreements. There is a point of overlap, however, in that the WTO can also deal with IP disputes between states under the Trade-Related Aspects of Intellectual Property Rights Agreement (TRIPS), and, as

noted above in the U.S.-cotton subsidies case, authorisation to “retaliate” can also affect IP rights. Three interesting developments are worth noting in this respect. Firstly, the TRIPS Agreement has rarely been invoked—in fact in only around 3 percent of total WTO disputes. Second, developing countries are not the main parties involved in IP dispute proceedings. On the contrary, the EU (as respondent) and the U.S. (as complainant) are the two parties most involved in IP disputes. Finally, Panels and the Appellate Body have never authorised trade sanctions in other WTO covered areas (“cross-retaliation”) to enhance TRIPS enforcement, a major fear held by developing countries when the TRIPS Agreement was adopted. Actually, and rather ironically, the WTO has authorised developing countries to crossretaliate in IP to enforce goods and servicesrelated rulings against the EU and U.S. WTO panels and the Appellate Body have been able to deal with complex IP issues in the few TRIPS disputes by working closely with WIPO and reinforcing the mutual cooperation of these two organisations. In sum, both the WTO and the WIPO Centre offer unique and broadly successful means of peacefully settling disputes using international rule of law. This being so, they provide possible templates for the future development of WTO as a whole. ■

THE WORLD TRADE ORGANIZATION (WTO) DISPUTE SETTLEMENT SYSTEM IS A VITAL ELEMENT IN THE MAINTENANCE OF INTERNATIONAL TRADE AND THE ENFORCEMENT OF WTO RULES. Biography Richard Rousseau is Associate Professor and Chair of the Department of Humanities and Social Sciences 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 globalisation..

Brisbane. Australia 2014 ❙ 119

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Story / Future of Education

Trends and Challenges in Education: What global leaders need to know Konica Minolta and iMirus have partnered with the leading authority in K-12 and higher education research–the New Media Consortium (NMC)–to bring insight into the future trends and challenges in the field of education.

f you ask current world leaders today what is the single most important initiative in preparing our children’s future, the response is simple–education. Two of the top print and digital technology companies in the world, Konica Minolta and iMirus, have partnered with the leading authority in K-12 and higher education research–the New Media Consortium (NMC)–to bring you insight into the future trends and challenges in the field of education through a special digital version of an NMC and Open Universities Australia report: The 2014 NMC Technology Outlook for Australian Tertiary Education: A Horizon Project Regional Report reflects a collaborative research effort between the New Media Consortium (NMC) and Open Universities Australia to help inform Australian education leaders about significant developments in technologies supporting teaching, learning, and creative inquiry in tertiary education. All of the research underpinning the report

makes use of the NMC’s Delphi-based process for bringing groups of experts to a consensus viewpoint, in this case around the impact of emerging technologies on teaching, learning, or creative inquiry in Australian tertiary education over the next five years. The same process underlies the well-known NMC Horizon Report series, which is the most visible product of an on-going research effort begun more than 12 years ago to systematically identify and describe emerging technologies likely to have a large impact on education around the globe. The 2014 NMC Technology Outlook for Australian Tertiary Education was produced to explore emerging technologies and forecast their potential impact expressly in a tertiary education context. In the effort that took place from January through March 2014, a carefully selected panel of experts was asked to consider hundreds of relevant articles, news, blog posts, research, and project examples as part of the preparation that ultimately pinpointed the most notable

Table 1: Comparison of “Final 12” Topics Across Three NMC Horizon Research Projects

124 ❙ G20 Leaders’ 2014

emerging technology topics, trends, and challenges for Australian tertiary education over the next five years. Known as the 2014 Horizon Project Australia Expert Panel, that group of thought leaders consists of notably knowledgeable individuals, all highly regarded in their fields. Collectively the panel represents a range of diverse perspectives across the education sector. The project has been conducted under an open data philosophy, and all the interim projects, secondary research, discussions, and ranking instrumentation can be viewed at aus.wiki.nmc.org. The 12 “technologies to watch” presented in the body of the report reflect our experts’ opinions as to which of the nearly 60 technologies considered will be most important to Australian tertiary education over the five years following the publication of the report. As Table 1 below illustrates, the choices of our experts overlap in interesting ways with those who contributed to the NMC Horizon Report 2014 Higher Education Edition, which looked at technology uptake from a global perspective, and the 2013 NMC Technology Outlook for Australian Tertiary Education, which provides perspective on how the technology discussions in Australia have shifted in the past year. All three of these projects’ expert panels– a group of 145 acknowledged experts– strongly agree that mobile learning and online learning, in some form, will likely tip into mainstream use within the next year–a trend that spans education across much of the world. While there are several other overlaps between two of the panels, there are some differences between perceived time-toadoption horizons. For example, the 2013 Australian panel and the 2014 Higher Education panel felt that learning analytics and the mining of student data would enter the mainstream within a year, while the 2014 Australian panel placed the topic further out, at two to three years away. That is not to say that learning analytics has slowed in Australian tertiary education, but different facets of it have emerged in the past year, such as adaptive learning, adding more complexity to the topic that will require more time to explore and implement at scale. Both the 2014 Australian panel and global Higher Education panel agree that games and gamification are gaining traction in teaching and learning, but expect it will take two to three years to fully come to fruition. While games and game elements have proven to make learning more engaging for students, some panel members discussed concerns

Story / Future of Education about educational games matching the high quality of games that are produced for entertainment. Individual institutions, such as Griffith University and their “World Trade Game,” have developed successful models to emulate. New this year to the list of top challenges facing Australian tertiary education is the concern over keeping formal education relevant. As the workforce has evolved, calling for a mix of highly technical and communication-centric skill sets, student expectations of the traditional university degree are changing. There is less perceived value in large lecture hall courses and a greater emphasis on campus experiences that invoke more hands-on, immersive learning that either simulate the real world or are part of it. These points and comparisons provide an important context for the main body of the report. There, 12 key technologies are profiled, each on a single page that describes and defines a technology ranked as very important for Australian tertiary education over the next year, two to three years, and four to five years. Each page opens with a carefully crafted definition of the highlighted technology, outlines its educational relevance, points to several real life examples of its current use, and ends with a short list of additional readings for those who wish to learn more. Following those discussions are sections that detail the expert panel’s top ranked trends and challenges, and frame them into categories that illuminate why they are seen as highly influential factors in the adoption or proliferation of any of these technologies over the coming five years. Those key sections, and this report in general, constitute a reference and straightforward technology-planning guide for educators, researchers, administrators, policy makers, and technologists. It is our hope that this research will help to inform the choices that institutions are making about technology to improve, support, or extend teaching, learning, and creative inquiry in Australian tertiary education. Educators and administrators worldwide look to the NMC Horizon Project and both its global and regional reports as key strategic technology planning references, and it is for that purpose that the 2014 NMC Technology Outlook for Australian Tertiary Education is presented. ■ To view the entire report, visit http://nmc. imirus.com/Mpowered/book/vnmc14/i3/p1 For more information about the New Media Consortium visit www.nmc.org.

KNowN as the 2014 horizoN ProjeCt australia exPert PaNel, the grouP of thought leaders CoNsists of Notably KNowledgeable iNdividuals, all highly regarded iN their fields. Brisbane. Australia 2014 ❙ 125

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Story / Go Turkey

Turkey: Where the continents meet At every turn, visitors to Istanbul enjoy cultural diversity combined with a fantastic range of accommodations, gourmet and entertainment options.

Denizli, Pamukkale

urkey is a modern nation with a captivating blend of antiquity and contemporary and of East and West. Turkey was the site of the first human settlement; in many ways, Turkey’s history is the history of mankind. With ruins of countless cultures throughout the country, it is apparent how pivotal Turkey was to the development of civilized societies. From the world’s first known human settlement circa 12000 B.C. at Gobekli Tepe to mighty Ottoman architecture across the empire, Turkey bears the remnants of the world’s major civilizations—Hittites, Phrygians, Urartians, Lycians, Ionians, Lydians, Persians, Macedonians, Romans, Byzantines, Seljuks, and Ottomans; the birthplace of Homer and the last home of the Virgin Mary, just to name a few. Did you know that Turkey is home to two Wonders of the Ancient World, 13 UNESCO World Heritage Sites, with a further 52 on the tentative list? Today Turkey is a holiday and business

Nevsehir, Cappadocia

destination with universal appeal, combining fascinating culture and culinary delights with great weather, value for money, stunning scenery and warm hospitality. Turkey is currently the sixth most-visited country in the world with a record-breaking 39.8 million visitors last year, highlighting its place as one of the most popular travel destinations in the world. Turkey is also one of the world’s top destinations for congresses, conferences, and fairs with many hotels across the country having convention facilities and with purpose-built convention centres present in the major cities of Istanbul, Antalya and Izmir. Tourism in Turkey is focused largely on a variety of historical sites, spectacular coastline, majestic mountains, cosmopolitan cities and quaint villages. Following are some of the most fascinating historic sites in the UNUESCO World Heritage Sites list, throughout Turkey:

Pamukkale, White Dream Water is the sole architect of the gleaming white travertine cliffs of Pamukkale, the watery “Cotton Castle” long famous for its curative powers. Warm calcium-laden mineral waters rise from the ground at a temperature of nearly 100 degrees Fahrenheit, cascading over cliffs to build up fairy billows of snow-white stone. The cream-colored stalactites formed during this ancient process have created a breathtaking sight unequalled in the world. Roman ruins of the thermal baths in the ancient city of Hierapolis are another highlight of this area located just north of Denizli. Cappadocia, a Fairy Tale With its incredible landscapes, ancient rock-carved churches and underground cities, cave hotels, and such activities as hot-air ballooning and hiking, Turkey’s Cappadocia region offers a one-of-a-kind travel experience for travellers. The region › Brisbane. Australia 2014 ❙ 131

Story / Go Turkey

Istanbul, Sultanahmet, Blue Mosque

Istanbul, Maiden’s Tower, Bosphorus

IstAnbul, turkey’s culturAl cApItAl, stAnds out on turkey’s tourIsm lAndscApe As one of the country’s most vIsIted cItIes, welcomIng 10.5 mIllIon vIsItors In 2013, up 12 percent yeAr on yeAr. › of Cappadocia has even been named ‘Best Honeymoon Destination’ by Lonely Planet in their collection of the world’s hottest trends, destinations and experiences. The area is rich in culture and history and Cappadocia is home to the Goreme National Park region, a UNESCO World Heritage site. ISTANBUL, Love of Continents Istanbul, Turkey’s cultural capital, stands out on Turkey’s tourism landscape as one of the country’s most visited cities, welcoming 10.5 million visitors in 2013, up 12 percent year on year. Visitors agree that it’s a special city: Istanbul was recently named the top destination in the world, ahead of cities such as Rome, London, Paris, and New York, in the sixth annual Travellers’ Choice awards for Destinations by TripAdvisor Readers. It’s not difficult to see why. Istanbul is an exciting hub connecting Asia, the Middle East and Europe and the only city in the world to straddle two continents. The city has proved an attractive settlement for various civilizations since ancient times to Romans, Genoeses, Byzantines and Ottomans; indeed, recent archaeological excavations have shown Istanbul’s settlement history now dating back 132 ❙ G20 Leaders’ 2014

8000 years, much older than previously thought. And thanks to its rich history, colourful daily life and dynamic spirit, Istanbul continues to offer a once in a lifetime experience to its visitors. As Turkey’s cultural capital, Istanbul has had many different names and hosted many different cultures during its history. No other city gives the option of travelling from one continent to another with a magnificent view. As one of the most popular cities in the world, and for hundreds of years, Istanbul is one of the most famous metropolises of the world. As a result of its economic growth, every year Istanbul hosts more and more visitors wanting to immerse themselves with its rich history. Istanbul has a famous silhouette including its historical monuments like towers, palaces and mosques. Some of the cultural must-sees are the Grand and Egyptian Spice Bazaars, the magnificent Topkapi Palace and Hagia Sophia Museum and the Sultan Ahmet (Blue) Mosque. Sultan Ahmet (Blue) Mosque, with its massive central dome flanked by six slender minarets, the Blue Mosque stands as the single most recognizable monument on the Istanbul skyline. Istanbul not only presents a historical

journey, but also boasts the vibrancy of a modern city with international film festivals, exhibitions, art galleries and sporting events. In 2010, the city was designated as the ‘European Capital of Culture’ and as the ‘European Capital of Sport’ in 2012. As a leading congress destination with its expanding facilities, excellent transportation network, numerous convention and exhibition venues, and high quality hotels, Istanbul first broke into the world’s Top 10 Congress Destinations in 2010 and has subsequently become the world’s number one congress destination with more than 500 delegates in 2011, 2012, & 2013, leaving such venues as Paris and London behind. In 2013 Istanbul was ranked 8th with 146 congresses, a rise of 14 percent compared to the year before. At every turn, visitors to Istanbul enjoy extensive historic landmarks and attractions. From its mosques and churches to museums; together with its cultural diversity combined with a fantastic range of accomodation, gourmet and entertainment options, Istanbul is one of the top destinations in the world for a city break. ■

Story / Turkey’s Leadership Authored by: Mr. Ilker Aycı, President of Prime Ministry Investment Support and Promotion Agency of Turkey

A Safe Harbour for international investors with its dynamic economy With its young population, fast-growing economy and strategic location, Turkey offers vast opportunities to international investors and will continue to be one of the top destinations for investments in its region and in the globe.

urkey has joined various international organisations, which aim to provide a more secure investment environment for foreign investors, such as the WTO, IMF, World Bank Group, as well as G20. Ensuring global economic and financial stability, reforming the global economic system according to the realities of today, reflecting the increasing weight of emerging economies are important issues for Turkey. As a member of the G20, Turkey, with its global and regional connections and dynamic economy, gives utmost importance to expanding and strengthening the competiveness, effectiveness and visibility of its business environment. In 2015, Turkey will assume the G20 Presidency and host the G20 Leaders’ Summit. Turkey attaches the highest importance to this task. Turkey also aims to further develop the relationship and cooperation between the G20 and the countries and organisations in its region. In addition, Turkey has signed various agreements to protect and promote investments and to avoid double taxation with specific countries. In other words, Turkey has internal as well as external checks and balances in place to ensure the efficiency of the business environment in Turkey. Which industry sectors in Turkey are currently showing the most investment potential? Abundant investment opportunities are available in Turkey ranging from real estate, finance, automotive, ICT, energy, renewable energy, iron and steel to petro-chemicals. The national and local authorities in Turkey have been implementing numerous investment projects through Public-Private Partnerships

(PPPs), and they are also keen to realise further opportunities in education, energy, defense, healthcare, transportation and other public services. Similarly, opportunities are also available in the privatisation projects. It is also a national target for Turkey to make Istanbul an international finance center. Having been tested by the global economic crisis, Turkey has one of the most stable and profitable financial sectors in its region. The Turkish government’s Istanbul Finance Center project offers global companies a chance to run their financial operations in the region through Istanbul, thanks to various incentives, a skilled workforce, and a global, cosmopolitan city with a vibrant local economy. What are the key factors you would highlight to companies and investors considering Turkey as part of their future business strategy? Turkey has set specific targets to achieve by 2023, the centennial celebration of the foundation of the republic, from healthcare to economy, and from defense to education. It targets to become one of the top 10 economies in the world with a gross domestic product (GDP) of US$2 trillion, to increase exports to US$500 billion, to upgrade the country’s energy, transportation and healthcare infrastructure through the construction of hospital cities, to more than double its electricity generation, and to build new bridges on the Bosphorus and the Dardanelles straits. What benefits have resulted from Turkey’s status as an official European Union candidate country, and how do you envisage the country’s future investment landscape once accession is confirmed? Turkey has been an European Union (EU)

accession country since October 2005 when the negotiations started for full membership. The hindsight speaks for itself; Turkey has attracted more than US$70 billion of foreign direct investment from the EU over the past eight years since the negotiations started. Today there are more than 18,000 companies from the EU countries with active investments in Turkey. Similarly, foreign trade between Turkey and the EU has tremendously increased. It is noteworthy to highlight that almost three quarters of foreign direct investment (FDI) inflows to Turkey have come from the EU countries - a clear indication of our economy’s de facto integration with the EU economy. Turkey became a member of the European Union Customs Union in 1996, since then trade between Turkey and the EU has more than quadrupled. Today, many EU companies are using Turkey as a manufacturing base for the EU and other markets surrounding Turkey. Most European business leaders choose Turkey not just because of its vast domestic market, but also to expand their businesses in the region through Turkey, using it as a hub for their regional operations. The European Union accession negotiations have made Turkey one of the most attractive destinations for foreign investment, and an entry to European Union as a member country will serve both Turkey and other investing countries. How does Turkey’s strategic geographical position contribute to its appeal to investors, domestically and regionally? Turkey has part of her land in Europe and other part in Asia, and is referred to as “the bridge between the East and the West.” It is indeed a source of sensation when every time you cross the Bosphorus Bridge, as you › Brisbane. Australia 2014 ❙ 133

Story / Turkey’s Leadership

Galata Bridge

› cross between Europe and Asia at the same time. Yet, the phrase of “the bridge between the East and the West” does not quite explain the geopolitical benefit of Turkey and its location in the global map. Especially in the current uncertain economic climate in mature markets of the US and Europe, the benefit of Turkey’s location is that the country is at a close proximity to North African countries, the Middle Eastern countries, Iraq, with its tremendous demand for reconstruction, resource-rich Iran, Central Asian countries which are also rich in natural resources and in an urgent need to upgrade their infrastructure, and Russia in north. All of these countries have potential demands that are much stronger than mature markets. Of course, it is right next to the EU. Turkey has been a member of the EU Customs Union since 1996 and any product manufactured in Turkey can be shipped to Europe without paying customs duties. Most large-scale companies, however, have already done what they have to with regard to European market, but very few activities are available in the Middle East. North Africa and Central Asia are even less developed as a market for them and when they try to establish a regional base to develop these markets, Turkey is often the answer. What role does ISPAT play in assisting potential and existing foreign investors in Turkey? Turkey strongly supports foreign investors through its public institutions. To this end, it established the Investment Support and 134 ❙ G20 Leaders’ 2014

Mr. Ilker Aycı

Promotion Agency of Turkey (ISPAT), under the auspices of the Prime Ministry. Since its foundation in 2006, the Agency has been providing assistance to global investors before, during and after their entry into Turkey. The Agency’s free services include, but are not limited to providing market information and analyses, site selection, business-tobusiness (B2B) meetings, coordination with relevant governmental institutions, facilitating legal procedures and applications, such as establishing business operations, incentives applications, obtaining licenses and work permits. Being attached to the Prime Ministry and directly reporting to the Prime Minister provide the Agency with operational freedom and flexibility. The Agency serves as a reference and a point of contact for international investors by linking them with both the government and businesses in Turkey, working on a fully confidential basis and functioning as a private venture. We consider investors as clients and client satisfaction is a top priority for us. Of the many success stories of foreign and multinational companies expanding their operations in Turkey, which are your personal highlights? Today, there are more than 38,000 foreign companies in Turkey and they invested billions of dollars in Turkey over the last decade. In order to benefit from Turkey’s economic dynamism and unique advantages, such as a young population, skilled labor force, economic performance, strategic

location, and its historical and cultural ties in the region, many global companies have either established their manufacturing bases in Turkey or moved their regional headquarters to Istanbul as the country offers a robust platform for economic expansion on a regional scale, enabling these companies to leverage common qualities and local capabilities in Turkey. For example, HP has inaugurated a manufacturing facility in Turkey to produce and export more than 2 million computers to the Middle East and North Africa. GE Healthcare has moved its regional headquarters to Istanbul to manage its operations in 80 countries in four major regions - Central Asia, the Middle East, Russia and Africa. Both Coca-Cola and Microsoft have their regional headquarters in Turkey, managing almost a hundred countries from Turkey. Do you have a concluding message for potential investors? As the president of the Investment Support and Promotion Agency of Turkey, I invite global investors to join Turkey’s economic rise. The global economy is undergoing a profound transformation; the center of the world economy is shifting toward emerging economies like Turkey. In such a juncture, Turkey is differentiating itself economically with its robust and stable economic growth; hence it is the right time to invest in Turkey in order to seize the opportunity. Global investors will not only benefit from the opportunities in Turkey but also in emerging markets surrounding Turkey. ■

More than 37,500 foreign companies have already invested in Turkey. How about you?

One of the fastest growing economies in the world and the fastest growing economy in Europe with an average annual real GDP growth rate of 5,1% over the past decade (2004-2013) The fastest growing economy among the OECD members with an average annual growth rate of 5.2% (OECD 2012-2017) 16th largest economy in the world with over $1,1 trillion GDP at PPP (IMF 2013)

A population of 76,6 million with half under the age of 30,4 Access to Europe, Caucasus, Central Asia, the Middle East and North Africa Highly competitive investment incentives as well as exclusive R&D support Around 610,000 university graduates per year

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