G20 Magazine - Argentina 2018

A R G E N T I N A 2 018 SUSTAINABILITY & DEVELOPMENT The Power of Global Goals Lise Kingo outlines how the private sector is rising to the challenge of the Sustainable Development Goals Page 58

HEALTHCARE Non-communicable Diseases

Dr Tedros Adhanom Ghebreyesus calls for action on NCDs as a Sustainable Development Priority Page 46

In partnership with the

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CREDITS

A R G E N T I N A 2 018 Published By Intrinsic Communications Ltd St Magnus House, 3 Lower Thames St London EC3R 6HE Managing Director Robi Harper info@intrinsic-communications.com Editor-in-Chief Steven O’Brien Sales Andy Barrett & Robi Harper Design Matt Dettmar www.freelancemagazinedesign.co.uk

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CONTENTS

HEALTHCARE

WELCOME 6

Dr. Steven O’Brien, G20 Foundation

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President Mauricio Macri, Argentina

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G20 Mayors, Buenos Aires & Paris GLOBAL ECONOMY

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The Current World, Changes Ahead and The Creation of Spaces to Tackle These Changes Marcelo Elizondo, Instituto Tecnológico De Buenos Aires (ITBA)

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OECD Supporting the Argentinian Presidency of the G20 Angel Gurría, Organisation for Economic Co-operation and Development (OECD)

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Now is the Time for Argentina to Show Real Green Finance Leadership Fiona Reynolds, Principles for Responsible Investment

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G20 Finance Ministers Communiqué Finance Ministers & Central Bank Governors 19-20 March 2018, Buenos Aires, Argentina

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Innovation Needed to Offset Risks to the SDGs Tom Cardamone, Global Financial Integrity

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We Must Face the Challenges of a New Industrial Revolution Roberto Azevêdo, World Trade Organization

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24

30

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To Help People Obtain their Right to the Highest Possible Level of Health, We Must Begin Designing Tomorrow’s Health Systems Today Ashling Mulvaney, AstraZeneca

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To Stop NCDs, the Global Community Must Focus on Prevention Strategies in Adolescence Helen Seibel, AstraZeneca

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Tackling Drug Resistant Infection through Concerted Global Action Alison Holmes, Imperial College London

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Co-Creating Solutions for Better Health: We Must Start Now Dr. Harald Nusser, Novartis

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Updates from the International Metasub Consortium Ebrahim Afshinnekoo & Christopher E. Mason

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Closing Speech at the WHO Global Conference on Noncommunicable Diseases Dr Tedros Adhanom Ghebreyesus, World Health Organization

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NTDs: Maintaining Focus on the Neglected Poor John H. Amuasi, African Research Network for Neglected Tropical Diseases

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A Trust-Based Culture is the Backbone of the National Danish E-Health Portal Sundhed.Dk Morten Elbæk Petersen, Sundhed.Dk

TRADE 30

Why Portugal?

Luís Castro Henriques, AICEP Portugal Global

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Customs: Securing the Business Environment and Providing Impetus for Growth Dr Kunio Mikuriya, World Customs Organization

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International Taxation: Where We Are and Where We Are Going Roberto Bernales, University of Deusto

SUSTAINABILITY

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Nespresso: The Positive Cup Jérôme Pérez, Nespresso

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Training Needs to Reach The SDGsby 2030 Nikhil Seth, UNITAR

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The Power of the Global Goals Lise Kingo, UNGC

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Achieving Gender Equality by 2030: A Reality Check and a Roadmap Phumzile Mlambo-Ngcuka, UN Women

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Shaping the Future by Accepting Responsibility and Investing Sustainably Simon Tribelhorn, Liechtenstein Bankers Association

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Remarks at Closing of High-Level Political Forum on Sustainable Development António Guterres, UN Secretary General

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The Role of Islamic Finance in Achieving The SDGs ICD

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The Critical Role of the G20 for Advancing Sustainable Development for All Achim Steiner, United Nations Development Programme Strengthening Public Responsibility for Education and Lifelong Learning Audrey Azoulay, UNESCO

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Unleashing Potential: How Enlightened Leaders Tackle the World’s Most Pressing Challenges Dr. Christian Busch, LSE Christa Gyori, Leaders On Purpose Maya Brahmam, World Bank Group Leith Sharp, Harvard University Tatjana Kazakova, Horvath & Partners

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Large-Scale Infrastructure and Development Michel Sudarskis, International Urban Development Association

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Fintech: What is the Promise for Financial Inclusion?

Alfred Hannig, Alliance for Financial Inclusion

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Portugal: Travel Startup Hub Visit Portugal FOOD

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Declaration: G20 Meeting of Agriculture Ministers 27-28 July 2018 Buenos Aires, Argentina

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What Decision Makers Need to Know About Water Benedito Braga, World Water Council

CORRUPTION 74

Promoting Good Governance a Key Factor for Stability and Security Thomas Greminger, OSCE

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How Crime Follows in Conflict’s Slipstream Yury Fedotov, UN Office on Drugs and Crime

CLIMATE 100

INNOVATION 78

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The Future of Work in the Digital Era: It Depends on All of Us Houlin Zhao, International Telecommunication Union

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Building Fair and Sustainable Development In The G20 Guy Ryder, ILO The Future of Work, Technological Change and Global Inequality Andrew Norton, Institute for Environment and Development The Key Lies in Using Digital Technologies to Solve Entrepreneurial Challenges that Impact Very Fast In Business Agustín J. Sáenz, TECNALIA

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Accelerating the Clean Energy Transition Erik Solheim, Head of UN Environment ENERGY

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Why Digitalisation is Key to the Energy Transition Dr. Christoph Frei, World Energy Council

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Europe’s Power System 2040: Completing the Map Laurent Schmitt, Entso-E

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What’s Stalling the G20’s Move to Clean Energy?

Scott Vaughan, International Institute for Sustainable Development R. Andreas Kraemer, Emeritus of Ecologic Institute, Berlin

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Member Countries Sponsors Index 5

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WELCOME

DR. STEVEN O’BRIEN Secretary General, G20 Foundation

This year’s G20 Summit in Argentina should have conversation as its watchword. In another year when the world has seen further populist flashpoints and entrenchment calm, thoughtful conversation is needed more than ever. Where there are tendencies towards populism and protectionism the core need to be debated. Only by listening to complex and multi-faceted grievances can we prepare a rational response. Those who feel left behind by the advances and opportunities of finding a global common weal deserve to have their concerns respected.

Conversation can only be a good thing in this regard. The sensationalist tone

of the news channels is often the most unhelpful way to examine the state of the world. The G20 should always stand ready to offer considered argument for the positive aspects of globalisation.

Argentina will see the gathering of twenty of the world’s leading economies, coming together in the spirit of mutual cooperation. There are undoubted challenges. Climate change, poverty, corruption and transparency in global finance practice will feature high on the agenda in Buenos Aries. The very fact that there is a G20 Summit is an affirmation that governments hold these issues in the highest importance. Moreover, the often understated timbre of the G20 forum

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belies the crucial commitments that come out of pooling ideas and looking for 21st century solutions to problems. All G20 countries are meshed by adherence to international standards and the rule of law.

Within the broad appraisal of the world in 2018 there is much that is positive. The EU’s recent ban on single use plastics and the creation of giant marine reserves in South American waters show that international solutions can be found for globally critical issues. In the year when Argentina hosted the Youth Olympics it is worth remembering that the young people are overwhelmingly optimistic about the future.

Yet there are specific economic challenges on the horizon that will

need concentrated focus. This year is the tenth anniversary of the G20, which came into being amid the consensus that the G7 organisation could no longer deal with the global financial crisis. Now, we must all ask if the G20 has the wherewithal to deal with the next financial crisis and which specific issues this will throw up.

For one thing, it is generally viewed that any new spasm will be triggered in one of the emerging markets. Moreover, it is quite possible that the current trade conflict might escalate such a crisis.

Macro growth is gradually slowing down. Volatility is steadily increasing in the markets. Central banks are beginning to raise interest rates, while, at the same

time stock markets are ten percent of recent record highs. There is a growing amount of nervousness in local markets such as China, the UK and the Gulf. In this context we know that the course will not be one of plain sailing. So it behoves this year’s forum to be pre-emptive in the formulation of policy that will prevent a collapse similar to that which we saw ten years ago. â–

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WELCOME

PRESIDENT MAURICIO MACRI Federal Chancellor, Germany

We assume the presidency of the G20, the most relevant global forum for economic cooperation.

This process culminates in the Leaders’ Summit, which will take place in South America for the first time. It convenes heads of state and government from the 20 most vital world economies, who advance the coordination on the critical issues of the present, and for our development.

As with the WTO’s Ministerial Conference, beginning in a few days’ time, we are putting Argentina in a place of relevance in the world. A world to which we inspire confidence because it sees that we are on the right path. A

world that we see as an opportunity for us to grow and to develop.

We want to be the voice for an entire region, not just our country. This is why we will bring the aspirations and concerns of this entire developing region, eager for new opportunities, to the table at the G20.

We will show that we can join the global conversation without raising our voice in anger, yet also without passively following the interests of others. Our view from the south of the world in the 21st century can be a bridge for diversity.

The challenge is to be up to the task of these events and to generate the conditions for a broad and diverse

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dialogue. The presence of all of you here today is an invitation to be the protagonists of our intelligent insertion to the international community.

By “intelligent insertion”, I refer to be able to express our democratic and multilateral identity, and to take advantage of global opportunities to create jobs, investment and exports; as well as to elevate the quality of our education and scientific systems, and to live in a safer environment.

We are a nation with a diverse identity.

Diversity is in our DNA, and sustains our tradition of peace and peaceful coexistence. Our language is that of justice and consensus. Our diplomacy

is based on the power of the norm, not of the norm of power. We have a vocation to better the quality of life of our people without harming the quality of life of others.

An important part of what we’re doing at the G20 has to do with the major goal we have in Argentina: to reduce poverty.

Our vision is for the G20 to be a group of countries that cooperate to generate inclusive growth.

In light of this, we have decided on the slogan for our presidency: “Building consensus for fair and sustainable development.” We will lead the G20 based on the principle of putting people first, with a focus on equality and sustainability.

During the 2008 crisis, the G20 proved its effectiveness. It prevented an international economic depression and strengthened financial framework.

By contrast, today’s growth is firm; however, we must remain cautiously optimistic.

This growth has not benefited everyone and this has breached many people’s confidence in globalisation. The level of inequality is a daily reminder that implores us to ensure that growth reaches all.

Our presidency will build on the agreements met in Hamburg. We are proposing priorities where we believe there is a shared interest. ⊲

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WELCOME

Argentina will propose an agenda focused on three key themes: the future of work, infrastructure for development, and a sustainable food future.

The future of work aims to unleash people’s potential. Technology is changing the processes of production, which offers opportunities as well as challenges. We must ensure that the adoption of these technological advances does not lead to economic exclusion or other negative side effects.

Education is at the centre of debate.

Making the next wave of technological advances as inclusive as possible will require great investment in training and updating skillsets for life and work.

Now is the time to forge these opportunities and abilities to prepare our people for this change. We are employing this in Argentina: creating fundamental consensus, and adhering to the spirit of agreement and dialogue with workers, business leaders, and the public sector.

Infrastructure is crucial for development. Investing in it spurs growth and productivity, and provides physical and digital access to take advantage of future opportunities. Encouraging private investment is fundamental to close the global infrastructure gap.

In this country, we are undertaking the most ambitious infrastructure plan in our history. In the G20 we will seek to

develop infrastructure as a new asset class which can channel today’s savings into transport, sanitation services, energy, and connectivity which will transform each individual today into a citizen and worker of the world in the future.

A sustainable food future in everyone’s interest. As the producer of foodstuffs for more than 400 million people, Argentina is ready to do its part.

Agricultural lands are a natural resource that produces most of our food.

As a finite and non-renewable resource, their preservation is crucial. The G20 can create the coordination necessary to foment major public-private partnerships and to create a sustainable food future.

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To ensure continuity of the G20’s work, we will find support in the legacy of previous presidencies. We will further the efforts on issues ranging from gender equality, anti-corruption, strengthening global financial governance, protecting the environment, amongst others.

Today we begin the period of intense work that will serve to tell the world about Argentina and to tell Argentina about the world. It is one of the greatest challenges of our history. We will lead the G20 with the spirit of being an honest broker. The Argentine G20 presidency will be a success only if we work together. I invite you all to put forth all of our effort and talent to achieve it. â–

Today we begin the period of intense work that will serve to tell the world about Argentina and to tell Argentina about the world.

Source: www.g20.org

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WELCOME

MAYOR HIDALGO & MAYOR LARRETA One Planet Summit in Paris

Over the past few years, the G20 has established itself as one of the world’s most important forums for dialogue to address global challenges and discuss the agenda for economic development.

What began as a space for intergovernmental coordination on financial and economic matters now includes a broad agenda of issues, including employment, agriculture, technological change, climate action and the fight against corruption. Each G20 chair is responsible for following up on current issues and proposing new lines of action in an ongoing process of updating and enriching the discussion on the global development agenda.

This enriched G20 agenda went hand in hand with the incorporation into the process of various stakeholders. These stakeholders form various “engagement groups�, which provide the perspective of experts from various areas and help to inform and enrich the matters addressed by the leaders. Business leaders, women, young people, think tanks and civil society organisations make up some of those groups that contribute to the G20 agenda.

The majority of the topics addressed by the G20 and its engagement groups have an impact on cities; furthermore, the policies and actions that we pursue at local government level are crucial for implementing and driving forward

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these agendas, and also so that countries are able to fulfil many of the commitments that they undertake in various international forums. In spite of this central importance of cities, until now large cities did not have a channel for dialogue within the G20 that enabled them to contribute their viewpoint to the discussion on the development agenda.

Therefore, from Buenos Aires and Paris, and supported by C40, we are launching the Urban20 (U20), a space that enables cities to be involved in the G20. This initiative seeks to establish a forum in which the major cities of the world develop a joint position that helps to inform and enrich the discussion

between national leaders during the next G20 summit, which will take place in Buenos Aires towards the end of 2018.

In 2010, for the first time in history, the urban population surpassed the rural population, and by 2050, it is estimated that at least two-thirds of the world’s population will live in cities.

The transformations brought about by urbanisation, and the experience gained by cities with regard to innovation and the quality of their public policies, have the potential to boost well-being and economic growth across the globe.

Cities can enrich spaces such as the G20. As part of an inclusive solution to succeed in solving global problems,

U20 will work to ensure that cities play an increasingly important role in the response to the development concerns of our time, particularly in the areas of climate action, the future of employment and social integration, starting with the creation of more inclusive, resilient and prosperous societies.

We believe that this journey, upon which we are embarking today and which will culminate in the first U20 Mayors Summit in October 2018 in Buenos Aires, is an appropriate and necessary first step towards establishing a regular and productive channel of dialogue that enables cities to contribute to the global agenda discussed by the G20. â–

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GLOBAL ECONOMY

THE CURRENT WORLD, CHANGES AHEAD AND THE CREATION OF SPACES TO TACKLE THESE CHANGES

MARCELO ELIZONDO Research Coordinator on Competitiveness School of Graduate Studies of Instituto Tecnológico de Buenos Aires (ITBA)

The relations among the countries of the world are built on the basis of forces that sometimes converge into more balance and sometimes into greater disagreement.

At present, we are witnessing tensions among countries. Even though some of these tensions are not related to the economy (such as climate change, redefinition of strategic equilibrium or transnational terrorism), there are many that occur within the framework of economic linkages.

The trade conflict between the United States and China seems to be the most complex crisis ahead. But there are also signs of a less harmonious relationship within the European Union, a weakened intrinsic force in the Mercosur as well as harsh internal disagreements within NAFTA. Nevertheless, some strategic advances worldwide are also evident in China, for example, with its project on the new Silk Road, the signing of the new Trans-Pacific Partnership (TPP) without the United States, or the free trade strategic agreement between the European Union and Japan.

But, in the meantime, it is also true that international trade grew in 2017 as it had never grown before in years.

These are signs of a world where economic linkages among countries do not stop, even though they are now more complex than they were until recently.

A relevant aspect to bear in mind is that the world economy and trade among countries continue growing and quite considerably, in fact.

But, in turn, it is also true that technological advances have given renewed support to the forces of private organizations (which either produce, or trade in, goods and services), and these private forces challenge and even outperform the political operating capacity of the states (an article published in a World Bank blog compares “the 100 largest economies of the world”, and it states that when considering the revenue of the countries’ public sectors and the revenue of companies – on the basis of their turnover– it turns out that today 70 of the largest economies are companies and only 30 are countries). Added to this, the common competencies now shared by emerging and developed countries alike and the possibility opened by productive delocalization (multinational companies may now transfer their stringent standards, practices, methods and operations wherever they want)

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have given rise to a situation where those in developed countries which could compete in the past and keep costly systems of public benefits now feel the pressure of those in emerging markets who threaten and defy them with more flexibilities.

In addition, the value creation matrix has changed all over the world. The Asian businessman Stan Sheh states (in what he calls the “smiling curve”) that, in the production chains of the 21st century, value is created preeminently at the beginning (design, invention, innovation, intellectual property) or at the end (marketing, trading, distribution – which are now increasingly electronic). This means that the great value factor of the 20th century, i.e. physical manufacturing operations, was pushed to a position of lesser relevance, disrupting the relationships within international value chains which account for 80% of global trade (world trade is equivalent to 30% of the world GDP).

On the other hand, services are increasingly more relevant, people migrate as never before and knowledge is global. As a result, the capabilities of countries to face supranational phenomena (which impact more on

The world is facing the end of a period of equilibrium and we are now witnessing a transition characterized by imbalances that will probably lead to a new scenario of emerging equilibrium still unknown to us. daily life than local phenomena) are lesser. This context compels countries to face the challenge of redefining politics, and they usually follow two paths: they either react by defending their position and therefore they repeat tensions, or they try to keep the status quo and adjust to it. The world is facing the end of a period of equilibrium and we are now witnessing a transition characterized by imbalances that will probably lead to a new scenario of emerging equilibrium still unknown to us.

All of this puts human resources trainers (and especially universities) at the critical core of the system. As Klaus Schwab has stated, we are no longer living in the age of capitalism but of “talentism”, where training people, generating knowledge, developing new skills and building up virtues aim at strengthening the main link. And this is achieved by helping companies develop competitive attributes: designing correct strategies; attaining regular and systemic architectures for connection with partners and allies that may be useful and permanent; incorporating knowledge, differentiation and innovation to production and trading; creating reputational instruments that may allow them to compete sustainably; and developing the ability to manage ever-changing and complex environments.

This is why priority must be given to the consolidation of spaces for countries to discuss and come to an agreement. And not just for the political environment in itself but also for companies, universities and other creators of knowledge and information, NGOs and even spontaneous groups. ■ 15

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GLOBAL ECONOMY

WORKING FOR A GLOBALLY FAIR AND MODERN INTERNATIONAL TAX SYSTEM

ANGEL GURRÍA Secretary General, OECD

Remarks at G20 Finance Ministers and Central Bank Governors Meeting Buenos Aires, Argentina 22 July 2018

On tax matters, thanks to the support of Leaders and Finance Ministers, major progress has been achieved which has demonstrated that international cooperation, in a multilateral framework, can support and strengthen national sovereignty.

On tax transparency, international cooperation today is far better than could have been imagined just a few years ago. You demanded that countries automatically exchange financial account information – this is becoming a reality. In fact, as a result of voluntary compliance mechanisms and offshore investigations put in place since 2009, and particularly in anticipation of the beginning of automatic exchange of information last September, jurisdictions around the globe have received €93 billion in additional revenue. That is real money for hospitals, schools and other vital public services.

When some started lagging in putting their commitments on tax transparency into action, you asked the OECD to establish criteria to identify those not performing well enough. You have now asked for recommendations on how to strengthen these criteria so that they remain a lever for progress. I am pleased

to deliver to you today updated criteria.

We will report to the Leaders at their summit this year on the number of noncompliant countries and names (hopefully none) will follow in June next year along with a report on the progress made.

Progress on BEPS implementation continues. The time when MNE’s could use tax planning-based on a lack of transparency or the exploitation of cross-border loopholes to avoid paying their fair share of tax, is over. 175 harmful preferential tax regimes have been reviewed by the OECD/G20 BEPS Inclusive Framework and changes to more than 130 are underway or already completed. Information on 17 000 tax rulings has already been identified and exchanged. The exchange of Countryby-Country Reports, requiring the largest MNEs to provide tax administrations with a complete and coherent picture of their tax situation, has started.

Most importantly, taxpayers are changing their behaviour. A significant number of MNEs have already reported taking steps to align their tax structures with their real economic activity.

More work needs to be done. In March of 2018, I delivered the OECD’s Interim Report on the Tax Challenges Arising

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As a result of voluntary compliance mechanisms and offshore investigations put in place since 2009, and particularly in anticipation of the beginning of automatic exchange of information last September, jurisdictions around the globe have received â‚Ź93 billion in additional revenue. from Digitalisation. You will recall that the report showed differences of opinion both on the nature of the problem and on how it could be tackled. But all 116 members of the OECD/G20 BEPS Inclusive Framework agreed to work towards a consensus-based solution.

A meeting held only a few days ago allowed countries to refine their positions to bridge the gaps between them and identify a clear way forward. This was a very positive sign. I urge countries to maintain such a spirit of compromise. The stakes are high and we all stand to benefit greatly by finding common ground. I will be updating you regularly on the progress towards a long-term solution in 2020.

Clearly, the faster we converge on the what, the how, the when and the how much about digital taxation, the faster we can define a common roadmap towards implementation of a policy whose main tenet we all support: all companies pay their fair share of taxes. â– 17

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GLOBAL ECONOMY

NOW IS THE TIME FOR ARGENTINA TO SHOW REAL GREEN FINANCE LEADERSHIP

FIONA REYNOLDS Managing Director, Principles for Responsible Investment (PRI)

As the G20 summit moves to South America for the first time, all eyes will be on Argentina this spring, hoping that the country shows real leadership on climate action – especially as President Macri has affirmed his desires to bring Argentina into a new role in global politics through the G20 presidency.

Now is the time to make good on that desire. As a leader among emerging economies, Argentina must galvanise momentum at the summit and show real leadership to promote a development model that is compatible with the longterm goals of the Paris Agreement by phasing out fossil fuel subsidies by 2020 and providing support to those most vulnerable to climate change.

Meeting the aims of the Paris Agreement is fundamental to tackling many of the world’s problems: according to a 2017 World Economic Forum survey, 750 of the world’s top economists agree that extreme weather events are the most pressing potential long-term risk to the global economy. A failure to rapidly shift to a zero-emissions growth trajectory can exacerbate poverty, increase food insecurity and render adaptation efforts impossible in the years to come.

Institutional investors have been showing clear dedication to climate action. Last year, for example, nearly 400 global investors representing more than US$22 trillion in assets signed a letter coordinated by the PRI to the governments of the G7 and G20 nations reiterating their belief that the mitigation of climate change is essential to the safeguarding of their investments. They urged all nations to stand by their commitments to the Paris Agreement and to put in place policy measures to achieve their nationallydetermined contributions (NDCs) with the utmost urgency.

It is imperative that governments respond to this dedication by advancing efforts to stop funding fossil fuels and start a real conversation of a managed decline of the fossil fuel industry in line with climate science.

With COP23 announcing the Talanoa Dialogue in 2018, this year is a critical one for countries to permanently tip the scale towards faster action and stronger ambition when they assess their NDCs. They must signal an intent to step up and enhance ambition by 2020 in their revised NDCs to keep warming below 1.5 degrees Celsius.

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This year is a critical one for countries to permanently tip the scale towards faster action and stronger ambition when they assess their NDCs. In July 2017, 19 of the 20 G20 leaders demonstrated their support to act on climate change when they signed onto the Climate and Energy Action Plan for Growth at the G20 summit in Hamburg. The Argentine presidency must strengthen and build on this existing framework and work with the other G20 nations towards its effective implementation in the run up to the heads of state summit on 30 November 2018. It’s up to the Argentinian presidency to move from commitment to action – especially after the previous host, Germany, failed to confront their own fossil fuel subsidies through the last G20 process.

Despite this setback, G20 nations have already taken significant strides forwards to tackle the climate issue. China, for example, has been on the frontlines of pushing for green finance to be at the heart of economic development policies, championing it both domestically and internationally during its G20 presidency.

The country has had a meteoric rise to green finance leader. In 2016, China issued US$36 billion of green bonds – up from almost none the year before.

Two percent of bonds issued last year

by Chinese domestic entities were classified as ‘green’ – against 0.2% of bonds issued internationally. And last year, the country set up five

“green finance” pilot zones – areas where financial institutions will be given a number of incentives to provide credit and special funds for environmentallyfriendly industries.

Developing G20 nations are also displaying firm climate commitments.

Brazil’s central bank, for example, has created detailed and advanced environmental regulations independent of the country’s Environment Ministry.

And the Brazilian labelled green bonds market reached US$3.67 billion in 2017 – with over 60% of bond proceeds going to renewable energy projects, and agriculture and forestry.

So, it is with an increased optimism that Argentina takes the G20 reigns. The country has an extraordinary opportunity to demonstrate they are serious about climate action and lead the G20 to make a clear commitment to mainstreaming climate action. ■ 19

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GLOBAL ECONOMY

COMMUNIQUÉ FINANCE MINISTERS & CENTRAL BANK GOVERNORS 19-20 MARCH 2018, BUENOS AIRES, ARGENTINA The global economic outlook has continued to improve since we last met in October 2017, with the broadest synchronised global growth upsurge since 2010, and a pick-up in investment and trade. While we welcome this progress, recent market volatility despite sound fundamentals of the global economy is a reminder of risks and vulnerabilities.

Downside risks persist and, over the medium term, challenges remain to raise growth and make it more inclusive.

This is our moment to take action to address structural growth impediments, rebuild buffers, reduce excessive global imbalances, and mitigate risks.

We discussed key risks to the outlook, including financial vulnerabilities that could be revealed with a faster

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than expected tightening of financial conditions and heightened economic and geopolitical tensions. We agree to continue using all policy tools to support strong, sustainable, balanced and inclusive growth. We will implement structural reforms to enhance our growth potential. Fiscal policy should be used flexibly and be growth-friendly, prioritise high quality investment, while enhancing economic and financial resilience and ensuring debt as a share of GDP is on a sustainable path.

Strong fundamentals, sound policies, and a resilient international monetary system are essential to the stability of exchange rates, contributing to strong and sustainable growth and investment.

Flexible exchange rates, where feasible, can serve as a shock absorber. We recognise that excessive volatility or disorderly movements in exchange rates can have adverse implications for economic and financial stability. We will refrain from competitive devaluations, and will not target our exchange rates for competitive purposes. International trade and investment are important engines of growth, productivity, innovation, job creation and development. We reaffirm the conclusions of our Leaders on trade

at the Hamburg Summit and recognise the need for further dialogue and actions. We are working to strengthen the contribution of trade to our economies.

Technology, including digitalisation, is fundamentally reshaping the global economy given its borderless and intangible nature, and its increasing ability to automate cognitive tasks. We are developing a common understanding of the nature of the changes and their potential implications. Transformative technologies are expected to bring immense economic opportunities, such as new ways of doing business, new industries, new and better jobs, and higher GDP growth and living standards.

At the same time, the transition creates challenges for individuals, businesses, and governments. These include changes to labour markets, the growing importance of skills and adaptability, and the risk of increased inequality within and between countries. Policy responses, including international cooperation, are needed to harness the opportunities and ensure the benefits are shared by all.

We therefore agree to develop a menu of policy options for consideration at our meeting in July.

Infrastructure is critical to boost productivity, enhance connectivity, sustain long-term inclusive growth and provide our citizens with physical and digital access to the new economy. Despite its importance, a persistent infrastructure financing gap remains. Public financing of infrastructure is essential but mobilising additional private capital is needed to meet global infrastructure needs. To achieve this, we agree to promote the necessary conditions to help develop infrastructure as an asset class. To guide our work, we endorse the Roadmap to Infrastructure as an Asset Class which builds on the outcomes of past G20 presidencies and draws together the steps needed to achieve our ambition.

The Roadmap identifies seven work streams, including regulatory frameworks and capital markets, as well as quality infrastructure. In 2018, our focus under the Roadmap will be to improve project preparation, move towards greater standardisation of contracts and infrastructure financing instruments, address data gaps, and improve risk mitigation, taking into account countryspecific conditions. We look forward to continuing and deepening the dialogue with the private sector. ⊲ 21

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GLOBAL ECONOMY

We note the report of the Independent Board of the Global Infrastructure Hub recommending renewal of its mandate.

We call for coordination among current initiatives sponsored by MDBs and others to avoid duplication of efforts.

We reaffirm our commitment to further strengthening the global financial safety net with a strong, quota-based, and adequately resourced IMF at its centre.

We are committed to concluding the 15th General Review of Quotas and agreeing on a new quota formula as a basis for a realignment of quota shares to result in increased shares for dynamic economies in line with their relative positions in the world economy and hence likely in the share of emerging market and developing countries as a whole, while protecting the voice and representation of the poorest members by the Spring Meetings of 2019 and no later than the Annual Meetings of 2019.

Cross-border capital flows offer significant benefits, but their size and volatility may pose policy challenges.

We will continue to monitor capital flows and refine our understanding of the tools to improve the resilience of the international monetary system.

We recognise the importance of

macroprudential policies in limiting systemic risk. We continue to deepen our understanding of capital flow management measures and the conditions under which they might be effective, taking into account countryspecific circumstances. We are looking forward to further work by the IMF, based on the IMF Institutional View on Capital Flow Management, that will help inform country actions and to the results of the Review of the OECD Code of Liberalisation of Capital Movement.

Rising debt levels in Low Income Countries (LICs) have led to concerns about debt vulnerabilities in these economies. We agree that building capacity in public financial management, strengthening domestic policy frameworks, and enhancing information sharing could help avoid new episodes of debt distress in LICs. We call for greater transparency, both on the side of debtors and creditors. We reaffirm our support to the ongoing work of the Paris Club, as the principal international forum for restructuring official bilateral debt, towards the broader inclusion of emerging creditors. We support the provision of technical assistance by the IMF and the World Bank Group (WBG)

in debt recording and reporting in LICs, where needed, and look forward to the work of these institutions on debt transparency.

The global financial system must remain open, resilient and supportive of growth and grounded in agreed international standards. We will continue to closely monitor and, if necessary, address emerging risks and vulnerabilities in the financial system. We welcome the finalisation of Basel III, which completes main elements of the post crisis reforms.

We remain committed to the full, timely and consistent implementation and finalisation of the reforms and their evaluation to help identify and address any material unintended consequences and ensure that the reforms accomplish their objectives. We look forward to the FSB-led evaluation of the reforms, including their effects on the financing of infrastructure investment and on incentives for central clearing of overthe-counter derivatives. We will continue to address the decline in correspondent banking relationships.

We acknowledge that technological innovation, including that underlying crypto-assets, has the potential to improve the efficiency and inclusiveness

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We look forward to the FSB-led evaluation of the reforms, including their effects on the financing of infrastructure investment and on incentives for central clearing of over-the-counter derivatives. of the financial system and the economy more broadly. Crypto-assets do, however, raise issues with respect to consumer and investor protection, market integrity, tax evasion, money laundering and terrorist financing.

Crypto-assets lack the key attributes of sovereign currencies. At some point they could have financial stability implications.

We commit to implement the FATF standards as they apply to crypto-assets, look forward to the FATF review of those standards, and call on the FATF to advance global implementation. We call on international standard-setting bodies (SSBs) to continue their monitoring of crypto-assets and their risks, according to their mandates, and assess multilateral responses as needed.

We will continue our work for a globally fair and modern international tax system and welcome international cooperation and pro-growth tax policies. We remain

committed to the implementation of the Base Erosion and Profit Shifting package and welcome progress to date. The impacts of the digitalisation of the economy on the international tax system remain key outstanding issues.

We welcome the OECD interim report analysing the impact of the digitalisation of the economy on the international tax system. We are committed to work together to seek a consensus-based solution by 2020, with an update in 2019.

We have made substantial progress on tax transparency. Further steps to implement transparency standards and requirements for the exchange of information for tax purposes will take place this year. Jurisdictions scheduled to commence automatic exchange of financial account information for tax purposes in 2018 should ensure that all necessary steps are taken to meet this timeline. We call on all jurisdictions

to sign and ratify the multilateral Convention on Mutual Administrative Assistance in Tax Matters. We look forward to the OECD’s recommendations on how to further strengthen the criteria for assessing jurisdictions compliance with internationally agreed tax transparency standards. Defensive measures will be considered against listed jurisdictions. We continue to support assistance to developing countries to build their tax capacity.

We welcome the first conference of the Platform for Collaboration on Tax and the efforts undertaken to help developing countries implement the new international tax standards.

We also encourage countries to enhance tax certainty.

We commit to step up our fight against terrorist financing, money laundering and proliferation financing. We call for the full, effective and swift implementation of the FATF standards worldwide. We reaffirm our support for the FATF, as the global anti money laundering and counter terrorist financing standard-setting body, to further strengthen its institutional basis, governance and capacity. We call on FATF to enhance its efforts to counter proliferation financing. â– 23

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GLOBAL ECONOMY

INNOVATION NEEDED TO OFFSET RISKS TO THE SDGS

TOM CARDAMONE Managing Director, Global Financial Integrity

Widespread implementation of the Sustainable Development Goals (SDGs) is predicated on two generally-accepted assumptions. First, the gap in funding between current development financing levels and that needed to attain the SDGs – estimated to be $2.5 trillion annually – will be filled. Second, the majority of the “new money” that fills the gap will be generated by the developing countries themselves. The mechanism to realize this tremendous increase in funding, known as “domestic resource mobilization” is, in turn, based on developing countries fulfilling two key requirements. First, they must create substantial economic growth and, second, this must be coupled with significantly improved governance which will enable them to collect taxes and implement programs needed to attain the SDGs. However, two global analyses released this year sow doubt that a sufficiently large number of emerging market and developing economies will accomplish either of these two prerequisites to warrant optimism that the SDGs will be achieved.

In its semi-annual report Global Economic Prospects, the World Bank notes that there will be a “short-term

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upswing” in developing country economies in 2018, but over the next decade it predicts “slowing potential growth.” This slowdown, which the Bank estimates will be a flat 4.3 percent average annual growth rate during the period (one-half percentage point below current growth rates), will “risk gains in improving living standards and reducing poverty around the globe.” Simply put, during the majority of the 15-year SDG period when growing economies and significantly improved tax collection are vitally important to poverty reduction programs, the Bank believes lower growth will continue for the foreseeable future.

An annual report by Freedom House titled Freedom in the World 2018 paints a similarly bleak picture of the state of democracy around the world. Free societies with democratic institutions are the bedrock needed to create well-run programs that reduce poverty and boost economies. But according to the Freedom House survey, in 2017 democracy declined for the twelfth year in a row and “countries experiencing setbacks in political rights and civil liberties far outnumber those showing improvements”. For example, in Africa only ten of the 54 countries in the region were deemed to be “free” with over 80 percent listed as either only “partially free” or “not free.” Low levels of freedom beget increased uncertainty and unrest which, in turn, undermine efforts to increase economic growth. The World Bank’s Global Economic Prospects comments on this reality in its report by noting that much-needed reforms will likely be “resisted by politically powerful groups.”

While there are numerous efforts around the globe to increase capacity and provide technical assistance more must be done to offset the grim predictions of the World Bank and Freedom House reports. One effort that should be pursued is to establish, in any country receiving financial assistance from an International Financial Institution (IFI), a body like the International Commission against Impunity in Guatemala (CICIG). This grand corruption-fighting organization

is effective, independent, funded by the United Nations, and is headed by a highly qualified legal expert from outside Guatemala. Given the stakes, the international community must insist that a well-funded and robust CICIGtype unit be permitted to operate in all recipient states in order to protect the people of that country from the ravages of corruption, money laundering, and organized crime. All aid, except that for emergency humanitarian assistance due to famine, natural disaster, war, or pandemic, should be tied to the establishment of such an organization in order to underscore the seriousness of the effort.

Additionally, a multi-agency task force established in Australia in 2006 to attack tax evasion and international crime has been very successful and should be a model for similar programs in developing countries. With more than $3 billion in taxes collected and new tax liabilities raised, “Project Wickenby” provides a best practice for bringing together experts from seven different departments to coordinate actions to fight the offshoring of wealth and the proceeds of crime. This whole-of-government approach can be instrumental in curtailing what, in many countries, is an almost effortless movement of illicit funds to tax havens and secrecy jurisdictions. This fundamental challeng, faced by nearly all developing nations, is a clear and present danger to their economies. As with the CICIG-type bodies, IFIs should make the creation of a multi-agency taskforce a prerequisite for financial assistance.

Both CICIG and Project Wickenby have been time-tested and are effective institutions that are making great progress. Funding for similar efforts should come from the IFIs and should be brought to scale as soon as is possible. As Norwegian Prime Minister Erna Solberg noted in Davos, “promoting peaceful, just and inclusive societies (i.e. SDG 16) is the key to achieve all the other” SDGs. And the quickest way to achieve that is to eliminate the impunity with which criminals and corrupt officials have operated for decades. ■ 25

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GLOBAL ECONOMY

WE MUST FACE THE CHALLENGES OF A NEW INDUSTRIAL REVOLUTION Speaking at the International Monetary Conference in Washington D.C. on 4 June 2018

ROBERTO AZEVÊDO Director General, WTO

We are living through a time of fundamental structural economic change, but also a time of real disaffection and division.

Throughout history these two factors, economic change and social division, are often found together. Today we say we’re seeing the ‘Fourth Industrial Revolution’.

The term is accurate, not just because of the economic message it sends, but also because of the societal upheaval it implies.

Previous industrial revolutions created great wealth and opportunity, but they also created significant social disruption – with many missing out on the benefits entirely.

The economic revolution we are seeing today has to be different. It has to be inclusive. It has to be an answer to the problems we are seeing today – not an aggravating factor.

The expansion of global trade in recent decades has helped to lift hundreds of millions of people out of poverty. It has helped to raise living standards for many millions more. And it has boosted growth and development around the world.

It has acted as a tool to deliver in the national self-interest – not as a threat to those interests.

I know that I don’t have to make the case for globalisation here. But, as positive as it has been on the whole, there is no doubt that many people feel excluded. Many feel angry and let down.

The tendency can be to find easy targets – the foreigner or the outsider.

And as these sentiments enter the political arena, they can lead the debate down the path of nationalism, intolerance, and protectionism. This is a real concern.

Of course moves towards protectionism are nothing new. We all rely on the stability and predictability that the system creates.

In fact, it can be argued that without the WTO, we would have been in a trade war some years ago.

After the crisis of 2008 we did not see an outbreak of protectionist policies, as we did in the past. This is precisely because of the framework of rules and practices provided by the multilateral trading system, by the WTO. However, the circumstances today feel somehow different from anything we have seen before.

Some of the policies and the rhetoric in the trade debate are actively opposed to the aims of the trading system itself.

Long-held principles such as shared rules, cooperation, dispute settlement

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According to the Bank of England, as many as 15 million jobs in the UK could end up being replaced by AI-enabled software and machines in the years ahead. through the system, and enhancing stability and predictability, seem to be thrown into question.

Taking those policies further could undermine the system, and thereby pose a serious risk to the stability of the global economy as a whole.

Without the rules, trade war would be a certainty. Unilateral actions would escalate, leading to a tit-for-tat series of trade measures. In the best case scenario this could happen slowly and take time to develop. But if we go down this road, the destination is clear.

And in an interconnected economy, the effects of such actions would likely be globalised, reaching far beyond those countries who are directly involved.

These effects are likely to spread to many different economic sectors as well, touching on areas that were entirely disconnected from “ground zero”.

If tariffs returned to the levels before the multilateral trading system was

created, we could see trade flows fall by almost two thirds. At the same time, the global economy could contract by 2.4%.

That’s even bigger than the contraction after the 2008 crisis. So how should we respond?

The challenge is to shape the new economy in a positive and inclusive way, and to shape the debate which is raging on these issues right now.

There are three main steps we need to take.

The first step is to take a clear-eyed look at what is really causing the disruptions in our economies.

The research shows that trade is not the key factor. The majority of jobs lost in manufacturing, around 80%, have been lost due to automation and new technologies.

This is the major force that is driving economic change today.

The shift is structural, and it is global – it is not only happening in the advanced economies. McKinsey research suggests that by 2030 manufacturing jobs will fall by 22% in China and 15% in India.

And it will affect the services sector as well – including financial services.

As Artificial Intelligence develops, it’s going to be replacing white-collar jobs in fields such as accounting, banking and legal services. According to the Bank of England, as many as 15 million jobs in the UK could end up being replaced by AI-enabled software and machines in the years ahead. ⊲ 27

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GLOBAL ECONOMY

A response that simply raises trade barriers would not respond to the cause of the difficulties we face today. Indeed, choking off global trade would only bring greater harm.

The fact is we are entering a new economic era. The ‘Fourth Industrial Revolution’ is real.

We need to find ways to adapt and do it in a way that benefits all, with a particular focus on those who are being left behind.

We have no precedent for the speed, scale and scope of change that is underway today. Besides, entrepreneurs, companies and other economic agents are already creating rules, norms, techniques and infrastructure around the new technologies. So it is clear that, in 10 years, it will be too late to try to frame these changes in a more inclusive manner.

The structure of new technologies will be more or less set, and the perspectives and values of those who created them will be firmly embedded in possibly anti-competitive platforms and within the many technologies that surround us and which have become part of us.

So this is an urgent challenge.

In addition, we need to help the workforce to adjust to these new realities. Domestic policies will be key here.

Education, skills and support policies, for example, will have to evolve to match the challenges of the new economy. And there is no ‘one size fits all’ recipe to deal with these challenges. Each country will have to find the policies that work best for them.

So that’s the first step – responding to real drivers of change today.

With all of that in mind, the second step is to speak up for the trading system, and to raise awareness of its inherent value.

Trade can continue to be a powerful force for growth and development in the world – but only if we continue to strengthen and improve it.

Governments listen to the private sector. Yet, I think that many are not

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The structure of new technologies will be more or less set, and the perspectives and values of those who created them will be firmly embedded in possibly anti-competitive platforms. making their views heard. This has to change. The global trading system cannot be taken for granted. Its efficacy and responsiveness rely on the support of those who have the clear vision to perceive its vital importance.

This brings me to my third point; the third step. International institutions – including the WTO – need to be ready to evolve to meet the challenges of today. The trading system needs to be responsive to members’ needs.

While stability is essential, that does not mean stasis. Helping governments and businesses meet the demands of a rapidly evolving global economy is a vital, on-going task for multilateral institutions.

Our members have shown that they are prepared to deliver new reforms, and that they are prepared to think differently.

The WTO’s Trade Facilitation Agreement is a case in point. This

deal aims to streamline, simplify and standardise customs procedures.

Estimates show that the full implementation of the Agreement could reduce trade costs globally by an average of 14.3 per cent. The economic impact here would be greater than if we eliminated all tariffs that exist today around the world.

This Agreement succeeded because members were willing to do things differently and pursue a more flexible framework for that agreement.

In an organisation with 164 members of different sizes, different political priorities and different stages of development, these kinds of flexibilities are essential.

Members are still seeking to make progress where negotiations are already ongoing. And many have begun conversations in a number of new areas, which are related to the economic changes we are living through.

Trade finance is another case in point.

After the financial crisis banks started to pull out of certain markets as risk appetites shrank and new regulations changed the calculus.

Huge gaps have since emerged in trade finance provision. The Asian Development Bank estimated that the global trade finance gap was $1.5 trillion. And of course the effects are felt most acutely

by SMEs and in developing countries.

I am working with the International Finance Corporation, the regional development banks, the Financial Stability Board and others to tackle this issue. This is vital if the system is to be genuinely inclusive and responsive to its users.

So there is a range of challenges before us.

We are on the cusp of a new era. It truly is a new industrial revolution. And this demands a truly revolutionary response aiming at the right targets.

It demands clear thinking. It demands new thinking. And it demands engagement – we can’t just cross our fingers and hope for the best.

We have the chance to ensure that this revolution is truly inclusive, to reshape the debate, and to ensure that a modern, responsive trading system is part of the solution. ■ 29

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TRADE & FINANCE

WHY PORTUGAL?

LUÍS CASTRO HENRIQUES CEO & Chairman AICEP Portugal Global

Portugal is increasingly a destination for ambitious multinationals worldwide.

Just this year, Volkswagen and Amyris committed to Portugal, setting up two major R&D centres!

Most of these projects are anchored in R&D activities, technologically demanding and advanced with a growing number of firms co-creating products with Universities and other centres of knowledge.

We are evolving from Made in Portugal to Created and Made in Portugal.

Investors are considering Portugal for the location of their hi-tech, technologyintensive activities and industries. In that regard we can see evidence in the expansion of the automotive and aeronautical sectors in Portugal. New projects in 2017 included investment, for example, by the German engineering giant Bosch, the French aeronautics component producer Lauak, tire-maker Continental and U.S.-headquartered Portuguese software developer OutSystems. This last company has just been named a new unicorn in the startup industry.

Investment in Portugal’s export-oriented sectors doubled last year to hit a record high, underlining the country’s fast shift up the economic value chain. Overall, between 2007 and 2014, AICEP raised

the same amount of investment that we had been able to raise between 2015 and 2018, so this means the Agency was able to double the rate of investment.

Good news for Portugal!

Portugal is boosting its competitiveness in order to stimulate economic growth in a sustainable way – and according to Doing Business 2018 published by The World Bank, Portugal is one of the Top 30 best countries in the world when it comes to doing business.

We firmly believe that our current offer is very attractive. So, why should you invest in Portugal?

TALENT a) Talent availability that embraces change and innovation from a world class science and university system. Let me recall that we have great Engineering, Business and Economics Universities, with three Portuguese Business Schools among Europe’s best, according to the Financial Times ranking. Also, the quality of Portuguese Engineering is one of the relevant factors to invest in Portugal, mainly to move up the value chain and capture high technology projects. b) Portuguese young people have multilanguage skills, speaking two or more

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foreign languages, which show their will to work with multiple markets. They are skilled and flexible. Talent has become more important than cost reduction as what really matters is overall productivity.

INFRASTRUCTURES We have high quality ICT infra-structure, top of the line logistics, a broad and diverse number of reference institutions, suppliers and companies oriented to R&D and innovation.

events, since 2016 and the organizers just announced it is to continue being held in Lisbon for the next 10 years. Portugal has also been signalled by investors in the high technology sectors and can be an interesting platform for startups with ambitions in the scale up phase. b) Portugal has also competitive grants and incentives, for instance, for job creation, innovation, R&D and start-ups. Furthermore, AICEP provides incentives, including tax breaks and loans from EU cohesion funds for investors in export-oriented businesses.

For example, there has been a strong growth in demand for R&D incentives in the country, with a yearly volume of projects supported 2x higher and a much larger pipeline of projects underway: Over €500M, which doubles the total value of R&D projects the Agency supported between 2007-2014.

INNOVATIVE AND TECHNOLOGICAL ECOSYSTEM a) A strong new generation of startups, entrepreneurs and entrepreneurial businesses has placed Portugal on the map as a technological hub. Lisbon is home to the Web Summit, one of the world’s biggest technology and innovation

Last but not least, there are other ATTRACTIVENESS ASPECTS, such as hospitality, easy integration of expatriates and the fact that we are a pleasant and safe country to live in. According to the Global Peace Index we are the 4th safest country in the world in terms of security and social peace!

STRATEGIC LOCATION Portugal is a platform from Europe to the Atlantic countries – Americas and Africa. We are also a gateway to the Community of Portuguese Language Countries (CPLP) with more than 250 million consumers. Therefore, investing in Portugal can give access to more than 750 million consumers.

These key factors are also attracting to Portugal many Shared Service and Software Development Centres. Siemens, Mercedes-Benz, Nestlé, BNP Paribas and Bose are only a few examples of international companies that chose Portugal. The growth and potential of the country as a new hub of global services happens because Portugal has clearly risen in the value chain. The growing specialization of processes, services, products and resources is an opportunity where we can differentiate ourselves.

We are pleas that investment from all over the world is coming to Portugal.

AICEP – Portugal Trade & Investment Agency and Portugal’s Institutions are highly committed with strengthening this trend given its importance to Portugal’s economy, as these investments are creating highly-qualified employment, fostering an innovation ecosystem and boosting exports.

For all the companies that are thinking of new investments, please contact AICEP (aicep@portugalglobal.pt) and our Delegations (www.portugalglobal.pt /EN/about-us/overseas-network/Pages/ overseas-network.aspx) to schedule a visit to Portugal. ■ 31

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CUSTOMS:SECURING THE BUSINESS ENVIRONMENT AND PROVIDING IMPETUS FOR GROWTH DR KUNIO MIKURIYA Secretary General, World Customs Organization In an era increasingly marked by the growing presence of both the digital and shared economies, underpinned by the use of information communication technology (ICT), and the sharp increase in cross-border trade, the global Customs community is poised to play a major role in the establishment of a secure business environment in order to foster economic growth.

Ensuring a safe and secure supply chain is central to achieving an enabling environment for legitimate trade to thrive.

To this end, Customs has been called upon to streamline procedures, tackle corruption and uphold integrity, and to facilitate the cross-border movement of goods, conveyances and people in general.

The WCO has developed instruments, tools, and initiatives to assist in building the ideal environment for international trade to flourish. Such instruments include, amongst others, the revised WCO International Convention on the Simplification and Harmonization of Customs Procedures (Revised Kyoto Convention/RKC), the WCO SAFE Framework of Standards to Secure and Facilitate Global Trade, and the WCO Security Programme.

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Customs and the Digital Economy Rapid digitalization has become one of the key drivers of economic growth, providing inclusivity by reducing entry barriers to economic systems and global value chains, but it requires new collaborative approaches by governments and trade stakeholders.

In order to better respond to the fast-evolving digital economy and to seize new opportunities, the WCO has focused its efforts on providing all necessary support to Customs administrations in order to facilitate ICT implementation at the strategic, policy, legal and operational levels through a comprehensive ‘Digital Customs’ agenda and its strategic capacity building initiative, called the ‘Mercator Programme’.

The WCO strongly believes that digitally-enabled and data-driven Customs and other border agencies have enormous potential not only to improve efficiency and reduce trade costs, but also to achieve enhanced trade facilitation, improved supply chain security and effective border controls.

To this end, the global Customs community is leveraging ICT solutions in pursuing the efficient implementation of various trade facilitation measures stipulated in international conventions and agreements, such as the WCO’s Revised Kyoto Convention and the WTO’s Agreement on Trade Facilitation.

Enabling Cross-Border E-Commerce Cross-border e-commerce has revolutionized the way businesses and consumers sell and purchase goods, providing global economic opportunities and a broader range of options. This phenomenon has also presented a number of challenges in terms of the facilitation of legitimate e-commerce trade, safety and security, fair and efficient revenue collection, and community protection.

The WCO, working through a multi-stakeholder Working Group on E-Commerce, has developed collaborative solutions that support the needs and expectations of all stakeholders in the e-commerce supply chain. Recently, the WCO issued its Luxor Resolution on Cross-Border E-Commerce, setting out the key principles for developing an enabling

e-commerce regulatory framework and supporting its implementation.

Noting the importance of a global standard in cross-border e-commerce, the WCO is currently engaged in developing a “Framework of Standards on Cross-Border E-Commerce” that will further support the development of a secure, inclusive and sustainable e-commerce environment.

Illicit Financial Flows and Mis-Invoicing To build a business environment that is fair and sustainable and conducive to trade, it is of prime importance to combat illicit financial flows (IFFs), as such activities can undermine domestic resources which could otherwise be mobilized for economic development.

IFFs can furthermore destabilize the global financial system, and be exploited to finance international organized crime and terrorist activities. Since trade misinvoicing was identified as the main channel for IFFs, Customs has been taking appropriate action.

In order to successfully combat IFFs, Customs can examine whether financial transactions between traders correspond with their trade records. In addition, not only can Customs investigate the under/ over-invoicing of imports in order to detect IFFs, it can also use the same mechanism for exports.

Partnership with the G20 The WCO and the G20 enjoy a mutually beneficial and well-established relationship. Collaborative work on a range of issues such as IFFs, challenges of digital economy, and capacity building initiatives has consolidated the cooperation between the two entities.

The G20 Leaders’ Communiqué issued at the close of the September 2016 Summit held in Hangzhou, China, welcomed increased communication and coordination with the WCO to address the issue of cross-border financial flows derived from illicit activities, including deliberate trade mis-invoicing. The WCO has devoted significant resources to this issue, mobilizing experts and stakeholders in an attempt to accurately assess the magnitude of IFFs and their impact.

Furthermore, the WCO was invited by the German G20 Presidency to attend the G20 Africa Partnership Conference held in Berlin in June 2017. The Conference provided an opportunity for the WCO to outline the work of Customs in relation to economic growth, domestic resource mobilization and peace and security, and to advocate further investment to support capacity building and technical assistance initiatives among its 53 Members throughout the African continent. ■ 33

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TRADE & FINANCE

INTERNATIONAL TAXATION: WHERE WE ARE AND WHERE WE ARE GOING

ROBERTO BERNALES International tax consultant and Professor of Tax Law of the University of Deusto

The last few years have seen the consolidation of the two most important pillars supporting the new institutional framework in international taxation: the OECD/ G20 Inclusive Framework on BEPS (established by the OECD in June 2016), and the Global Forum on Transparency and Exchange of Information for Tax Purposes (Global Forum). The mere fact that these two organizations operate and are actively modeling the new framework of international taxation is an achievement in itself.

There have been four significant developments in this new international tax era during the last year.

The most important landmark has undoubtedly been the entry into force of the Multilateral Convention to Implement Tax Treaty related Measures to Prevent BEPS (the Multilateral Instrument, MLI, BEPS Action 15), on 1 July 2018, following the deposit of the fifth instrument of ratification by Slovenia. Currently, depositaries are Austria, the Isle of Man, Jersey, and Poland, New Zealand, Serbia, Sweden and the United Kingdom. The MLI will update the current tax treaty network and its provisions will start having

effect as from 2019. This means that the new international tax standards leave the fuzzy environment of soft law to enter the juridical field of legally binding instruments.

The second important achievement has been the publication by the OECD/ G20 Inclusive Framework of the Interim Report on Tax Challenges Arising from Digitalisation (BEPS Action 1), in March 2018. The report describes the main features of digital markets and how they shape value creation. However, there are significant differences between members regarding the impact of digitalization and the subsequent measures to be taken (from those countries who think that there is no need to make changes to others who defend that future changes should not be limited to digital firms).

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The Panama Papers and the Paradise Papers showed that including intermediaries within the scope of transparency rules is another urgent target.

The third significant achievement is the publication in June 2018 of the Revised Guidance on the Application of the Transactional Profit Split Method (BEPS Action 10), which will be incorporated into the OECD Transfer Pricing Guidelines.

Finally, it is important to mention that the first exchange of the country by country reports (BEPS Action 13), already took place this year.

The Challenges Ahead The first important challenge that the Inclusive Framework will have to tackle

is to achieve a common view within the members on how the taxing rights on the income derived from cross border digital activities should be divided between the countries concerned.

Apart from the different views, the Interim Report recognizes that there are countries that are eager to take interim measures to tax profits derived from value created within their jurisdictions. The Interim Report takes into consideration an excise tax on the supply of certain electronic services provided within their jurisdictions that

would apply to the gross consideration paid for that supply (in line with the EU Commission proposal on digital economy of 21 March 2018). The OECD Secretariat will provide an advance of the results by June 2019 and the final report should be prepared by 2020 and we will see then whether the approach assumed by the countries and the individual measures taken will harm or not the fragile coherence of the new international tax system.

The Panama Papers and the Paradise Papers showed that including intermediaries within the scope of transparency rules is another urgent target. The Model of Mandatory Disclosure Rules for Common Reporting Standards (CRS) Avoidance Arrangements and Opaque Offshore Structures was adopted by the OECD on 9 March 2018, and in May 2018 the European Council adopted a directive in the same direction. Several countries are also considering the introduction of rules based on BEPS Action 12.

The above mentioned scandals also highlight the fact that whistleblowers should not be forgotten in the new international tax order. The EU Commission has already made a proposal on 23 April 2018 on whistleblower protection setting out principles to guide States when introducing or reviewing rules for whistleblowers and, in our opinion, the OECD should follow the path of the EU. In any case, the most important challenge is to maintain and improve a fair tax system in times of globalization. From the corporate tax stand view taxation of companies where the final sale takes place could be a solution. This is in line with the EU Commission proposal on digital economy of March 2018, and could also be the approach of the US (although referred to a sale´s tax, see US Supreme Court’s recent ruling in South Dakota v.

Wayfair). However, developing countries could understand that this would put them in an unfavorably position because of the size of their markets. Again, the subsequent challenge is to maintain the consensus and the coherence of the whole system. â– 35

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TO HELP PEOPLE OBTAIN THEIR RIGHT TO THE HIGHEST POSSIBLE LEVEL OF HEALTH, WE MUST BEGIN DESIGNING TOMORROW’S HEALTH SYSTEMS TODAY

ASHLING MULVANEY Sustainability Strategy and Healthy Heart Africa, AstraZeneca

In the past, health systems were designed to make sick people well again. People engaged with the health system only when they needed it.

This model no longer works – and it leaves countries vulnerable to emerging health challenges.

Noncommunicable diseases are now responsible for 7 in 10 deaths worldwide, and they’re projected to reduce global economic output by a cumulative $47 trillion by 2030.1 The complex demands on 21st century health care have led us to rethink the purpose of a health system, and how health systems best serve the needs of individuals, families and communities.

The health systems of tomorrow must help people maintain optimal health over their entire lifetimes, from infancy through old age.

Over a century of experience in treating cardiovascular disease has taught us critical lessons about how to evolve today’s health systems.

First, we must work together to integrate NCD care into the existing health-system infrastructure. Often this means integrating new NCD services into systems that were designed to control infectious diseases.

Second, we must partner with public, social franchise, and faith-based facility networks to strengthen the delivery of health services within community settings – bringing services as close as possible to where people live, work and socialize. No one actor can do it alone.

Third, improving the capacity of health systems to deliver convenient, affordable access makes good business sense.

Health fuels economic growth, which drives innovation, strengthens markets, and ensures that social benefits are distributed more broadly.

AstraZeneca is applying these lessons every day in programs like Healthy Heart Africa. Working with NGO partners including Amref Health Africa, Kenya Conference Of Catholic Bishops (KCCB), CHAK (Christian Health Association of Kenya), PSI (Population Services

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International) Ethiopia and Touch Foundation, we are helping governments in Africa to integrate hypertension services into the existing healthcare infrastructure and expanding into other disease areas.

Through these collaborations, we are increasing the numbers of people screened for high blood pressure and providing patented medicines through a no-profit/no-loss model. We aspire to reach 10 million people living with high blood pressure across Africa by 2025 – an ambitious, but achievable goal.

The Healthy Heart Africa program is teaching us what it will take to deliver NCD care at scale within resource-limited settings, where addressing NCDs requires strong collaboration between many public and private groups. Flexibility and realtime innovation are key to developing models that work at the local level.

The world still has much to learn about the prevalence and impact of NCDs in low-income regions. Support for NCD research will be continue to be key to helping governments make the best decisions when investing in their people’s health. ⊲

1. First, NCDs already pose a substantial economic burden and this burden will evolve into a staggering one over the next two decades. For example, with respect to cardiovascular disease, chronic respiratory disease, cancer, diabetes and mental health, the macroeconomic simulations suggest a cumulative output loss of US$ 47 trillion over the next two decades.

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TO STOP NCDS, THE GLOBAL COMMUNITY MUST FOCUS ON PREVENTION STRATEGIES IN ADOLESCENCE

HELEN SEIBEL Global Community Investment, AstraZeneca

Noncommunicable Diseases have emerged to become the number one cause of death worldwide – and many of them are preventable. The World Health Organisation calls this trend an “invisible epidemic.” Should it continue, the economic toll on evolving health systems is predicted to amount to trillions of dollars.1 To change this trajectory, we need to increase our attention on two things: disease prevention and youth.

Today, a quarter of the world’s population is under the age of 30. And in low to middle-income countries, youth can make up to 50% of the population.2 The decisions they make today will have a profound impact on our world’s future.

We can empower young people to have a transformative effect on their own health – and on the global economy – by helping them make healthier choices.

That’s because two out of every three premature NCD deaths in adults are associated with conditions or behaviors that began in youth, such as smoking, unhealthy diet and sedentary lifestyle.

Interventions during the teenage years, when adolescents are prone to risky or unhealthy behaviors, are proving especially effective.

Quitting smoking for just one year during youth increases the likelihood of long-term smoking abstinence to 67%. By the same token, 70% of obese adolescents remain obese throughout their adult lives, while people who are fit in their 20s are more likely to stay fit throughout adulthood.

However, investment in prevention is often lacking – typically only a fraction (1-2%) of budget is spent on NCDs and we know that is often focused on treatment.

AstraZeneca’s Young Health Programme contributes to this growing body of knowledge with new research and partnerships that nurture good behaviours and healthy lifestyle choices for adolescents. Our commitment to the science of adolescent health is just one part of how we are working to enable longer, more fulfilling lives while avoiding the costs associated with NCDs. By empowering youth to make healthy choices today, we can prevent NCDs tomorrow. Investing in prevention, building adolescent-friendly programming and fine-tuning protective policy needs to be a central part of the solution. ■ REFERENCES 1. WHO 2015a 2. https://www.karger.com/Article/FullText/488865

Photo © Marco Betti, Young Health Programme

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TACKLING DRUG RESISTANT INFECTION THROUGH CONCERTED GLOBAL ACTION The world faces the unprecedented challenge of drug resistant infection due to increasing antimicrobial resistance (AMR). Concerted global action is needed to address this pressing and alarming public health issue. Without a strong, unified response, SDG targets will not be met, and valuable progress will be lost.

ALISON HOLMES Professor of Infectious Diseases, Imperial College London

The Need for Leadership The continued inclusion of AMR in the G20 agenda, under the leadership of Argentina, is greatly welcomed. This year I was invited to speak in Buenos Aires on initiatives to optimise antibiotic use, at the International Congress on Infectious Diseases1, co-hosted by the Infectious Diseases Society of Argentina.2 The ethos of shared learning and strong leadership was central in our discussions, and considered fundamental to effective action.

A particular focus is needed in low and middle income countries (LMICs), where the burden is greatest.

Gro Harlem Brundtland, speaking on behalf The Elders*, highlighted the importance of national leaders in harnessing political will to address AMR by ‘bold action’ in overcoming ‘institutional hurdles’ and challenging ‘vested interest in agricultural and pharmaceutical sectors’, particularly in addressing unnecessary use in livestock.3 Although global leaders have shown clear commitment, with unified landmark pledges at G20 summits and the UNGA High Level Meeting on AMR, she warns that complacency could ‘wipe out development gains… with alarming consequences for us all… especially the poorest and most vulnerable people on the planet’.3 Commitment to Preventing Infection Whilst there must be a major focus on developing new antimicrobials, it is critical that existing agents are preserved, and unnecessary use, that drives resistance, minimised. Effective infection prevention, including improved sanitation and use of vaccines, is also fundamental to reduce antimicrobial consumption.

Within healthcare facilities, increasing AMR combined with the high risk of acquiring infection, severely compromises patient outcomes and represents an

* The Elders were founded by Nelson Mandela in 2007 to offer their collective experience to promote peace, justice, and human rights worldwide

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Cohesive multidisciplinary action was recently demonstrated by the ‘Technology versus Infectious Disease Summit’, at the Royal Institution, where representatives from academia, industry and NGOs came together to describe their work on combating infectious diseases. interlinked and intractable problem. This poses an immediate threat to medical and surgical care, and undermines potential advances and innovation. A particular focus is needed in low and middle income countries (LMICs), where the burden is greatest. By 2050, 90% of the estimated 10M deaths attributed to AMR will occur in LMICs4 where the incidence of healthcare associated infections is over double that seen in the EU.5 Although all inpatients are at risk, LMIC disparities are especially marked in neonatal and surgical care where targeted action is needed.5 Data and Information to Inform Action and Policy Global data on AMR is variable, particularly in resource limited countries.

The increasing recognition of the importance of quality data to inform

global, national and local action is therefore greatly welcomed. WHO’s Global Antimicrobial Resistance Surveillance System (GLASS) programme, introduced in 2015, seeks to address the paucity of standardized surveillance methods.6 It monitors ‘trends in infection and resistance to develop standard treatment guidelines that support best practice for patient care’ whilst recognising ‘the importance of linking information on AMR from different sectors’.7 Antimicrobial consumption, a key driver of AMR, will be monitored as part of the programme later this year.8 Targeted antibiotic use and accurate surveillance requires quality assured laboratories with sufficient infrastructure, skilled personnel and equipment to provide accurate, timely diagnosis. This has been the focus of the Fleming Fund,

which supports LMICs in developing this infrastructure, addressing WHO initiatives, including GLASS, and implementing national action plans.9 2018 saw the launch of an international ‘Surveillance and Epidemiology of Drugresistant Infections Consortium’, organised by the Wellcome Trust, to address how data can be used collectively to maximise impact and efficacy.10 The consortium considers how we can work more effectively across nations and evaluates how the global community can generate and use high quality surveillance data, to inform practice, policies and interventions across sectors.

Innovation through Technology and Social Sciences Imperial College recognised that this multi-faceted challenge, requires an

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inter-disciplinary approach. Experts are working together, across faculties, in an ‘antimicrobial research collaborative’11 on cutting edge solutions from rapid diagnostics, to disease surveillance and artificial intelligence. Cohesive multidisciplinary action was recently demonstrated by the ‘Technology versus Infectious Disease Summit’, at the Royal Institution, where representatives from academia, industry and NGOs came together to describe their work on combating infectious diseases, including AMR. This solution focussed, cross disciplinary working is required nationally and internationally.

Translation of solutions must not add resource waste due to nonadoption or sub-optimal implementation; especially in under resourced settings.

Co-development from problem

inception through to solution development, implementation and evaluation means contextual fit is built into the process. Broad minded and intelligent research funding supporting bi-directional learning and opportunities to accelerate learning through partnerships with LMIC leaders and researchers, has been welcomed.

The complexities of AMR present a significant societal challenge that must be addressed to protect global health and security. International initiatives can only succeed in combatting AMR through multi-disciplinary, harmonised collaborations where evidence based data, shared learning and strong leadership drive concerted action to minimise the impact of AMR on global health and achieving SDGs. ■

1.http://www.isid.org/ 2.http://www.sadi.org.ar/ 3. Brundtland, 2017. Gro Harlem Brundtland: New WHO guidelines are crucial step to fighting antimicrobial resistance. The BMJ Opinion.

4. O’Neill J. Antimicrobial resistance: tackling a crisis for the health and wealth of nations. Rev Antimicrob Resist. 2014. http://amr-review.org/Publications.

5. Allegranzi B, Bagheri Nejad S, Combescure C, Graafmans W, Attar H, Donaldson L, et al. Burden of endemic health-care-associated infection in developing countries: systematic review and metaanalysis. Lancet. 2011;3 77:228–241 6. http://www.who.int/glass/en/ 7. Seale AC, Gordon NC, Islam J et al. AMR Surveillance in low and middle-income settings – A roadmap for participation in the Global Antimicrobial Surveillance System (GLASS). Wellcome Open Res 2017, 2:92 8. Tornimbene, Barbara & Lucia Pessoa-Silva, Carmem & Eremin, Sergey. (2016). Global Antimicrobial Resistance Surveillance System (GLASS) Report: Early implementation 2016-2017.

9. http://www.flemingfund.org/ 10. Fukuda K, Limmathurotsakul D, Okeke IN et al. Surveillance and Epidemiology of Drug Resistant Infections Consortium (SEDRIC): Supporting the transition from strategy to action [version 1; referees: 2 approved, 1 approved with reservations].

Wellcome Open Res 2018, 3:59 11. http://www.imperial.ac.uk/arc/

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CO-CREATING SOLUTIONS FOR BETTER HEALTH: WE MUST START NOW

DR. HARALD NUSSER Head of Novartis Social Business

India’s population has a median age of about 30, yet almost 10 percent of the population has type 2 diabetes. This is a higher rate than Germany, although India’s average age is about 15 years younger. As India’s population ages, a catastrophe may develop.

Noncommunicable diseases (NCDs) like diabetes or cancer carry a high risk of disability and premature death. This is a growing concern particularly in lower – and middle-income countries, threatening economic growth and development.

Today 32 million deaths occur due to NCDs in these countries – more than three-quarters of the world’s total.

Ironically, the big rise in the risk factors for chronic disease are due to the very forces of progress that are improving economic prospects for so many. For example, people live in close proximity to booming cities, can afford to eat more food – much of it unhealthy yet cheap – and do less manual labor.

If the global economy is to sustain its current productivity, workers need to stay at peak productivity for longer.

A 2017 study estimated that NCDs might cause a cumulative global loss of output of USD 47 trillion between 2011 and 2030. Failure to fund chronic disease

prevention and care will see more lost opportunities every year. I hope the G20 recognizes the critical importance of fighting this global pandemic in their countries, and beyond.

As this year’s Summit reminds us, fair and sustainable development depends on good healthcare, and this will only happen if we build consensus across stakeholders. An achievable goal, even in our polarized world.

The fact that NCDs often require lifelong treatment calls for healthcare systems that can diagnose, manage and control these diseases. The risk of a pandemic – and the sustainable development agenda – lends urgency to global efforts to achieve universal health coverage (UHC). However, as the WHO High Level Commission said earlier this year, the fight against NCDs must be a whole-of-society undertaking.

Everyone has a part to play. Factors that contribute heavily to NCD risks, like physical inactivity, unhealthy diet, alcohol and tobacco use, and air pollution, are beyond health systems alone to manage. This is why we urgently need multi-sectoral action. Each sector must be willing to leave its own comfort zone, step into unchartered territory and be

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Regardless, the challenge of chronic diseases will require new approaches, new partnerships between the public and private sectors and new ways of financing these activities that reflect their importance to national prosperity. proactive, going beyond how we usually define our roles and responsibilities.

As far as the pharmaceutical industry is concerned, we must recognize our role in providing for the health needs of people (not just treatments). We should contribute meaningfully to the discussion surrounding global health.

I am particularly passionate about the importance of primary healthcare and about supporting access to chronic disease medicines that the WHO considers essential. I also believe that innovations in technology ranging from mobile health and telemedicine to artificial intelligence as well as

personalization and on-demand healthcare will shape health systems in the future. Against this background, how can G20 countries leverage these advancements to make health systems more equitable, efficient and effective?

Healthcare systems in G20 countries are at very different maturity levels but everywhere, healthcare provision is compounded by the social inequities affecting these countries. Regardless, the challenge of chronic diseases will require new approaches, new partnerships between the public and private sectors and new ways of financing these activities that reflect their importance to national prosperity.

Given rising costs, a central question is thus who is going to finance healthcare?

Clearly, we need innovative approaches to financing. In order for countries to progress toward UHC, there is increasing interest to identify ways to supplement traditional sources of financing, and adopt new methods of financing global health programs, research, and development. As such, governments and global health actors are looking to blended financing partnerships to unlock investment in global health.

Government and non-governmental organizations, corporations, private investors and philanthropic institutes could collaboratively mobilize greater amounts of capital than any one of them in isolation.

Despite the challenge, there is hope. According to the World Health Organization, four-fifths of premature deaths from NCDs are preventable.

People who manage their chronic conditions with prevention, proper diagnosis, care and treatment, or lifestyle or dietary changes, are often able to continue to work, save and invest in the future.

Health is a crucial building block for development. We must work together on new solutions and we must start now. â– REFERENCES 1. https://www.statista.com/statistics/254469/ median-age-of-the-population-in-india 2. https://www.kff.org/global-health-policy/factsheet/the-u-s-government-and-global-noncommunicable-diseases

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UPDATES FROM THE INTERNATIONAL METASUB CONSORTIUM EBRAHIM AFSHINNEKOO & CHRISTOPHER E. MASON the surfaces of those very same stations.

To date the consortium has collected over 22,000 samples across 75 participating cities, 42 countries, spanning all seven continents. For ongoing updates to the MetaSUB sample collection map and the map of the latest year’s collection, you can visit the Consortium’s web site: metasub.org/2018-sample-map.

Figure 2

The MetaSUB Consortium was founded in 2015 as a global, transparent, and integrative metagenomics initiative with the primary goal of building a molecular profile of cities around the globe to improve their design, functionality, and impact on health. This year the consortium has been registered as an official 501(c)(3) non-profit corporation to further our research, educational, and outreach endeavors.

Global City Sampling Day June 20, 2018, marked the third consecutive global City Sampling Day (gCSD), where scientists from over 45 cities collected swab samples from subway surfaces including ticket kiosks, turnstiles, benches, and more (Figure 1).

Some cities also participated in joint air sampling to characterize and compare the microbiome and molecular signatures of the air circulating in a station compared to

Preliminary Results and Ongoing Projects Olympiome – In 2016, the summer Olympic Games were hosted in Rio, Brazil. MetaSUB scientists launched the ‘Olympiome’ project in conjunction with these games, collecting over 1300 samples from stations and areas throughout the city, before, during, and after the Olympics. With over 500,000 visitors expected to converge to Rio, the Olympics offered a unique opportunity to explore how large-scale human movements into a city can impact the microbiome and metagenomics dynamics. Indeed, preliminary results indicate that the alpha diversity increased during the games, and then decreased after the games.

The Olympiome experiment will be repeated and expanded for the 2020 games hosted in Tokyo, Japan.

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Figure 1

AMR Map – According to the Center for Disease Control, resistance to antibiotics will kill more people than all cancers by 2050. Consequently, one of the major goals of the consortium is to map the global distribution of antimicrobial resistance (AMR) genes and to find those which are the most mobile, dynamic, and potentially the most important for public health.

Moreover, beyond mapping the prevalence of AMR markers, we seek to understand the biochemical and functional mechanisms behind their activity and spread. Our preliminary data thus far suggests that different cities have distinct AMR profiles, whereby different AMR genes are enriched in different cities. MetaSUB is collaborating with government institutions, nonprofit organizations, and industry stakeholders in the

development of novel next generation sequencing technologies and visualization tools that will allow for “real-time” AMR surveillance.

StuckOnU – Our phones help us keep in touch with friends, colleagues, and family. The millions of apps help us get through our day to day, but did you know they also represent a molecular echo of our lives? The activities, habits, foods, and travel history of people are represented by genetic and biochemical traces left behind on our bodies and phones, but also everywhere else that we touch. Over the past year we’ve been conducting experiments at major conferences including the JPM Health Summit, World Government Summit, the ABRF Annual Meeting, and most recently, the Milken Global Conference

We’ve been conducting experiments at major conferences including the JPM Health Summit, World Government Summit, the ABRF Annual Meeting, and most recently, the Milken Global Conference in 2018, swabbing attendee’s phones, sequencing them, and creating molecular profiles.

in 2018, swabbing attendee’s phones, sequencing them, and creating molecular profiles including predicting ancestry, a comprehensive breakdown of the phone’s metagenome (bacteria, animals, plants, and other organisms), and mapping AMR genes. Check out the results from our latest experiment at the Milken Global Conference, which was supported by WorldQuant, here: worldquant.metasub.org.

Annual MetaSUB Summit On August 14-15, 2018, the MetaSUB Consortium hosted its annual meeting in Praia do Forte, Brazil. Scientists from all over the world (Figure 2) convened to share and discuss their preliminary results as were plans for publication and release of the results.

Other topics discussed included the applications of metagenomics methods and technologies in the clinic, sampling from extreme environments ranging from Antarctica to the International Space Station, and careful science communication with the public.

For the latest updates on the MetaSUB Consortium and our project check out www.metasub.org and follow us on Twitter @metasub ■ 45

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CLOSING SPEECH AT THE WHO GLOBAL CONFERENCE ON NONCOMMUNICABLE DISEASES

DR TEDROS ADHANOM GHEBREYESUS Director General, WHO

There has been great hope and energy generated by this Global Conference on Noncommunicable diseases. We have achieved so much in what seems such a short period of time.

The launch of the Montevideo Roadmap on NCDs as a Sustainable Development Priority is a milestone for a new era. It gives direction for meeting the essential SDG target of saving millions of people from succumbing to these diseases, while promoting the attainment of the highest levels of mental health and wellbeing.

The Roadmap is the result of a truly international process, one led by the governments of Uruguay, Finland and Russia, to ensure the promotion of health is at the heart of all areas of government.

It has shown that NCDs prevention and control, and the promotion of mental health, are central to the achievement of the 2030 Agenda for Sustainable Development.

We witnessed strong commitment from heads of state and government, from Argentina, Chile, Paraguay, Zimbabwe and our kind hosts, Uruguay.

More of this is needed. When it comes to NCDs and mental health, real change starts at the top.

But here in Montevideo we have achieved even more. Around 400 people have participated in rich, powerful sessions and workshops. The lessons we have learned from you will help guide our response going forward. I want to thank and congratulate you for sharing your wisdom and enthusiasm.

The Conference has offered a stark reminder of the urgent need for accelerated action to protect people today and tomorrow from NCDs and their causes, from tobacco to foods and drinks high in salt, sugar and trans fats. Action on improving mental health also took centre stage.

Participants have truly provided wisdom and insights that will enrich and inform our work going forward. I am satisfied, but the most important thing will be the action.

And where are we going?

Next year’s 3rd United Nations High-level Meeting on NCDs and mental health in New York presents countries, WHO and the broader UN system a litmus test. This effort will need the support of four key parties.

First, a major feature of preparations for the UN NCDs meeting will be the work of the WHO High-level

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Commission on NCDs and Mental Health, that we are honoured to have President Vazquez co-chair with Dr Sania Nishtar, from Pakistan.

Their leadership of the Commission will be vital for the process WHO will lead to prepare for the UN meeting.

To President Vazquez and Dr Nishtar, we are grateful for your support, and very much looking forward to the results of your work. I felt humbled and honoured when you accepted my call, Mr President and Sania. Everybody has confidence in both of you. I count on you to make a big difference.

Second, we will be recruiting even more high-level champions and ambassadors from all regions of the world to help drive this process forward.

We will need many champions and influencers to mobilize everybody.

We saw in 2011 that 34 heads of state and government participated in the first UN High-level Meeting on NCDs and mental health, but at the second meeting in 2014 there were none? It is this apparent leadership vacuum that we have focused on here in Montevideo, and which we are determined to fill next year in New York.

This way, we will go into 2018 in full force, demonstrating real gains and deciding on even more ambitious action going forward to protect people and safeguard society from NCDs and promote mental health.

Third, we will benefit in this process from the commitment of the UN Secretary-General, a strong supporter of addressing NCDs and promoting the mental health and well-being of all people. I have been so impressed by his commitment to NCDs and mental health.

But, this whole effort leading up to New York in 2018 will rely heavily on the fourth part of this equation: the collaboration of civil society, academia, and philanthropies. Everybody is needed, we have to work together.

I have met with civil society twice, and I was so encouraged by their level of engagement, and the concrete work we will do together going forward. No one should be left behind, everyone should be a player.

The networks, expertise and resources they bring is critical to our efforts to win the NCD fight and promote mental health is key. They can mobilize the whole society.

I have learned much from several meetings I have had with you over these three days, and I look forward to collaborating with you on the process to prepare for the UN High-level meeting.

I also must mention the private sector.

We want to build bridges to new communities, but not at any cost.

We see great potential for food and beverage makers, for example, to produce healthier options to the market.

The solutions exist. But is there the will to change? I believe so.

Because without change, the epidemic of NCDs and improving mental health will continue to kill and maim millions needlessly, and hinder national development. Who wants that?

The death toll from cancer is equivalent to that of malaria, HIV and tuberculosis combined. Seventy percent of all deaths are due to NCDs, including 15 million dying between 30 and 70.

More than 300 million people are living with depression, an increase of more than 18% from 2005 to 2015.

This is unacceptable. But much of this is avoidable. It all starts from belief.

This is why the political declaration to be issued in New York next year needs to be a game changer. We must work differently.

It is clear we need to do more.

Solutions are in our grasps and are readily implementable, but they are sitting on the shelves of many governments.

But with determined and committed leadership, all this can change. WHO will work side by side with all governments to help them embrace new ways of working.

The time to act is now. Our lives depend on it, as do those of our loved ones today, and the children of the future.

And from what I have seen this week, I truly believe we can succeed. I see success and determination in the President’s eyes, and in what he says.

I commend you all for your participation in this Conference, your commitment to beating NCDs and improving mental health, and your valuable contributions to the advancement of global public health. â– 47

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NTDS: MAINTAINING FOCUS ON THE NEGLECTED POOR

JOHN H. AMUASI (MBCHB. MPH. MS. PHD) Executive Director, African Research Network for Neglected Tropical Diseases

The expression “Neglected Tropical Diseases” (NTDs) emerged within the period 2003 – 2005, being used by the World Health Organization (WHO) and also in peer-reviewed articles 1,2.

However, NTDs are neither diseases that share a common biomedical etiology (bacterial or genetic diseases), nor diseases with a common phenotypic manifestation (such as febrile or diarrhoeal illnesses) or affecting a particular part of the body (such as skin or eye diseases). What brings diseases under the banner of “neglect” is the predominant feature of poverty. Whether “neglected tropical diseases” is a phrase, a clause or even a sentence, there is a subject within, which is not immediately apparent – people; neglected individuals, families and societies. In effect it is primarily the people who share the common feature of poverty), who are neglected by their governments, the private sector, and the world. Then by extension, the diseases which these poor suffer from are also being neglected.

Focus on the neglected poor is therefore important because there are a number of other diseases which might be neglected for reasons other than poverty, including low morbidity and mortality.

The sub-optimal visibility of the core of poverty in the expression “NTDs”, has preferred the expression “Infectious diseases of poverty” (IDoPs) to some stakeholders 3. However, IDoPs have been described as including the “unholy trinity” (HIV/AIDS, Tuberculosis (TB), and Malaria) and NTDs, even though arguably the former are not as strongly linked to poverty as the NTDs. “Blue marble health” has also been described as a paradoxical NTD burden among the poor living in G20 countries 4, further cementing poverty as being central to the problem, even in middle-income countries. Also, with the African Leaders Malaria Alliance (ALMA) annual progress scorecard for accountability and action on diseases (HIV/AIDS and TB included) recently seeing the addition of NTDs 5, IDoPs might be a more appropriate expression which shines the spotlight on poverty as being the key feature of these diseases. Nonetheless, with the inclusion

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1. Hotez, P. J. The Neglected Tropical Diseases and the Neglected Infections of Poverty: Overview of their common features, global disease burden and distribution, new control tools, and prospects for disease elimination. (National Academies Press (US), 2011).

2. Unwin, V. Neglected Tropical Diseases – to elimination and beyond! BugBitten (2015).

Available at: https://blogs.biomedcentral.com/ bugbitten/2015/05/14/neglected-tropical-diseaseselimination-beyond/. (Accessed: 14th September 2018) 3. Hansen, C. & Paintsil, E. Infectious Diseases of Poverty in Children: A Tale of Two Worlds.

Pediatr Clin North Am 63, 37–66 (2016).

4. Hotez, P. J. Blue Marble Health Redux: Neglected Tropical Diseases and Human Development in the Group of 20 (G20) Nations and Nigeria.

PLoS Negl Trop Dis 9, e0003672 (2015).

5. Bigelow, A. African heads of state endorse new measurement of progress on neglected tropical diseases. EurekAlert! (2018). Available at: https:// www.eurekalert.org/pub_releases/2018-01/ghsaho012618.php. (Accessed: 19th July 2018) 6. Engels, D. Neglected tropical diseases in the Sustainable Development Goals. The Lancet 387, 223–224 (2016).

7. Uniting to Combat NTDs. London Declaration on Neglected Tropical Diseases. (2012).

8. WHO. Accelerating work to overcome the global impact of neglected tropical diseases – A roadmap for implementation. (2012).

9. WHO. Ghana eliminates trachoma, freeing millions from suffering and blindness. WHO (2018).

Available at: http://www.who.int/neglected_ diseases/news/Ghana-eliminates-trachoma-2018/ en/. (Accessed: 14th September 2018) 10. Moeti, M. To solve Africa’s health crises, we need to enlist women and girls. World Economic Forum (2017). Available at: https://www.weforum.org/ agenda/2017/04/to-solve-africas-health-crises-weneed-to-enlist-women-and-girls/. (Accessed: 14th September 2018)

of NTDs within the health targets of the Sustainable Development Goals (SDGs) 6; the visibility afforded NTDs in the G7 agenda in Germany in 2015 and in Japan in 2016; and the London Declaration on NTDs and launch of the WHO Roadmap in 2012 7,8, the war-machinery is well-positioned to achieve success in significantly reducing the burden of these poverty-linked diseases, and terminology might hardly be relevant.

Having African scientists, policy makers and other actors directly involved in agenda setting and key activities in efforts to control and eliminate NTDs is critical to developing a sense of ownership and responsibility, which allows the focus to remain on those individuals, families and societies who suffer extreme poverty and neglect.

Even where African governments have achieved successes, such as Ghana eliminating trachoma in July 2018 9, in-country recognition and visibility of

these significant achievements among the general population has remained low. Recognizing the importance of support from African Governments towards NTD research to support control and elimination, the African Research Network for Neglected Tropical Diseases (ARNTD) remains eager to partner with the African Union via NEPAD to use grassroots efforts and structures to promote the consciousness and visibility of NTDs among the general population.

This approach is aimed at allowing NTDs to be seen by the general population as a valid measure of government’s efforts at reducing poverty and improving socioeconomic well-being. The ARNTD is also eager to partner stakeholders to develop innovative strategies to woo African philanthropists to contribute directly and openly to the fight against NTDs. The Network also strongly encourages increased cooperation among G7 countries and African governments with

greater emphasis on capacity building for African scientists, policy makers and NTD advocates, particularly women in science. Even among the limited number of African scientists contributing to NTDs, women are in the very low minority, even though among the poor, women suffer disproportionately from the impact of NTDs 10.

The WHO’s list of 20 NTDs, the London Declaration’s emphas on NTDs which lend themselves to preventive chemotherapy via mass drug administration, and the ALMA scorecard’s inclusion of measures of progress in the fight against malaria, HIV/AIDS, TB and NTDs, all reflect the healthy tension between focusing on the low-hanging fruit and leaving no disease (and invariably person) behind.

Notwithstanding differences in the constellation of poverty-linked diseases, the focus needs to be maintained on those who are being neglected – the poor. ■ 49

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HEALTHCARE

A TRUST-BASED CULTURE IS THE BACKBONE OF THE NATIONAL DANISH E-HEALTH PORTAL SUNDHED.DK MORTEN ELBÆK PETERSEN CEO for the Danish e-Health Portal sundhed.dk Personal medicine overview, notes from Electronic Health Records from hospitals, lab responses, vaccination data and historical overview of treatments.

That’s just a small sample of the possibilities, you have as a citizen on the Danish public owned eHealth portal sundhed.dk. All Danes from 15 years and above can log on to “My Health” with a digital signature in combination with the social security number.

A Trust-Based Culture The Danish culture is characterized as trust-based and citizens rely on the public authorities and their handling of personal clinical data. Therefore, the Danish e-health Portal is seen as a Safe Harbour in a sometime chaotic e-health market.

This safe harbour brand is due to a high degree of confidence in the institutions and public sector in Denmark in general – and it confirms that the well established security system around sundhed is trusted.

So it is a confidence in a healtcare sector governed by democratic elected politicans at national, regional and local levels.

That’s some of the reasons, why the number of unique visitors to sundhed.dk 50

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keep increasing and by 2018 sundhed.dk has 1,7 million unique visitors per month out of a population of 5.8 million inhabitants.

But we also know, that we have to work hard to maintain the culture of trust.

Thats why data security has high priority in Denmark in general – but especially in eHealth.

Patient Empowerment The many opportunities and easy access to personal health data makes sundhed. dk the most innovative and significant digital solution in Denmark to support patient empowerment and hereby contributing to cost reducing work flows of health care professionals.

A brand new Danish e-health strategy from January 2018 highlight health data as essential for quality improvement and health research, both of which are significant drivers in the continued development of health care. Initiatives to support patient empowerment and cost reducing workflows grows, taking in consideration that the OECD estimates that public authorities, using data systematically to improve their workflows, reduce operating costs by 15-20 percent.

A Great Demand for Learning Over the last few years there has been a great demand for learning more about the sundhed.dk solution, and more than 35 countries from all over the world, EU, WHO and organizations with a focus on health IT want dialogue on the possibility of implementing similar models.

And Denmark is not hesitant to share the experiences. Late in 2017 a new spin out sundhed.dk International Foundation was created in public and private partnership with the purpose to assist other countries or health organisations make cheap and trustworthy e-health solutions. The successful implementation of sundhed.dk – which was launched in 2003 – rely on different key factors such as a common, ambitious national eHealth strategy and one coherent, public, funding based on an economic perspective to reduce costs. The trustbased culture, the expectations to openness and transparency, the high reliability in public authorities and their handling of personal clinical data – are all, important factors.

Since health data is automatically produced in the meeting between the citizens and the health care sector there is a common interest in optimize and

mutual gain from theses outcomes: Citizens “give” data to the system – and patient empowerment through digitization providing insight and transparency is “giving back” data to the citizens”.

One Access Point At the same time sundhed.dk technologically builds on the idea of “one access point”, re-using and showing information and data from local systems.

Sundhed.dk is an integration point presenting an overview.

The economic perspective behind sundhed.dk has primarily been to support the general practitioners in their gate keeping function: To keep citizens out from the hospitals, focus on prevention and treatment at home.

And at the same time provide a digital solution that provide citizens the possibility to actively use the resources they already have providing insight in own personal health data.

Sundhed.dk is an example of exploiting the opportunities in the spread of digital technology providing citizens transparency and openness about their own data and hereby drive changes and improvements in the health care sector. ■ 51

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SUSTAINABILITY & DEVELOPMENT

NESPRESSO THE POSITIVE CUP

JÉRÔME PÉREZ Global head of Sustainability, Nespresso

ABOUT Headquartered in Lausanne, Switzerland.

Nespresso operates in 76 countries and has over 13,000 employees. In 2017, it operated a global retail network of more than 700 boutiques. www.nestle-nespresso.com/sustainability

What is the defining characteristic of Nespresso’s sustainability vision?

What do you hope to achieve?

Sustainability is one way by which we bring to life our company purpose to inspire tasteful and meaningful living.

We defined a vision for sustainability within our strategic framework of The Positive Cup: To make each cup of Nespresso an extraordinary experience creating pleasure for consumers and benefits for society and the environment.

For 30 years, we have been integrating sustainability into our activities. By focussing in the areas most material to our business and our stakeholders, we can contribute to long term business performance and deliver a positive impact on society and the planet through our value chain.

We call this Creating Shared Value.

Our sustainability journey aims to achieve the following ambitions: 1. Ensure sustainable coffee sourcing, improving the livelihoods of farmers and communities 2. Unlock solutions for the circular use of aluminium with a focus on sourcing and recycling

3. Take integrated actions on climate change, mitigation and adaptation 4. Engage everyone in our company, our partners and consumers in the benefits of sustainable production and consumption

These enable us to contribute to 11 of the 17 United Nation Global Goals, particularly the SDG12: Sustainable Production and Consumption and the SDG8: Decent Work and Inclusive Growth

Please give our readers some background on your AAA Sustainability Quality Program.

To fulfil our promise to consumers, we depend on the consistent availability of the highest quality coffee, therefore on resilient farming communities. For us, quality and sustainability go hand in hand.

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To fulfil our promise to consumers, we depend on the consistent availability of the highest quality coffee, therefore on resilient farming communities. For us, quality and sustainability go hand in hand.

In 2003, together with Rainforest Alliance, we designed the “Nespresso AAA Sustainable Quality™ Program, our coffee sourcing program to promote sustainable agricultural practices and build long-standing relationship with producers.

Since 2014, the program also aims at innovating solutions for broader systemic challenges such as climate change and social security, gender. And Last year, we joined the Sustainable Coffee Challenge led by Conservation International to consolidate and complement our coffee ambition into wider industry goals

Thanks to the network of more than 460 agronomists, the program covers more than 75,000 producers in 12 countries, resulting in CHF 35 Mio investment per year. By the end of 2017, 90% of Nespresso’s coffee was sourced from the program (target 100% by 2020), 51% sourced from certified farms (Rainforest Alliance, FLO, FTUSA).

We are interested in how your partnership with the Colombian government, and Fairtrade International, has created a retirement plan for smallholder farmers.

The topic of aging producers is a challenge for our industry: Younger generations are not incentivised to join a sector where social security is lacking.

Inspired by the mission of Fairtrade International to promote empowerment, we felt that we could further leverage the premium that is paid to the certified communities. Joining forces with them and the Colombian Ministry of Labour, we co-created a mechanism that enabled topping up 20% of the national framework of retirement for the agricultural population At the end of 2017, over 1,400 farmers of the Aguadas Coffee Growers’ Cooperative had planned for their retirement.

And what we are most proud of: two cooperatives have independently adopted a similar mechanism and the programme is spreading beyond the core AAA regions.

How did the Peace Dividend in Colombia create such a fertile environment for sustainable development?

Nespresso has a long history in Colombia.

The AAA Program was rolled out in 2004, today reaching over 33,000 producers in 10 regions.

Our November 2017 announcement that we are investing an additional 50 MioUSD in Colombia in the coming 5 years, continues and accelerates the process of building sustainable production of Colombian coffee.

These investments are in parallel with the opening of a new zone now also touched by the peace process: Caquetá.

Over the last 2 years we have deployed technical assistance in this area. Around 500 producers have been trained to our sustainable quality practices. More will be enrolled in the program, as we increase our volume of coffee purchased 5 times over the next 5 years.

Together with the National Federation of Coffee Growers, we know that coffee can drive social cohesion in post conflict situations, creating the conditions for local economic development.

The peace process brings a fertile and conducive environment for sustainable development and for attracting private sector investments. We wish to increase our investment, with external donors interested in constructing the future of Colombia.

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SUSTAINABILITY & DEVELOPMENT

Food and Water Security forms one of the cornerstones of this year’s G20 Agenda. Shade-Grown coffee is claiming public attention as a means towards these goals. Can you elaborate?

Water is essential for coffee communities: For farm productivity, postharvest coffee processing and the quality of life of the farmers themselves.

We have been working on this via the AAA program, supported by co-financing institutions to upgrade the infrastructure of water treatment solutions on farm.

These early efforts were stepped up in 2014 through a 20 mioUSD multistakeholder initiative, known as Manos al Agua (manosalagua.com). Combining on farm and watershed socio-environmental actions, the 5 year initiative has reached more than 11,000 coffee families.

The recent droughts in Colombia underlined the importance of shade grown coffee farms which are more resilient than full sun production systems.

Since 2014, we have been promoting Agroforestry models for coffee production.

In Colombia, over 1 mio native trees have been planted around the coffee farms to protect water sources and provide additional income to farmers (via fruit or timber production). The financing of this

Everyone has their role to play. As a private corporation, we must engineer our value chain to ensure environmental and social performance is part of our business model. transition (around 2 MCHF per year) is made possible by a mechanism similar to a payment for ecosystems services. The agroforestry operations are designed and implemented to deliver carbon credits that compensate the equivalent of our operational carbon footprint. Known as insetting (www.insettingplatform.com), the approach drives the internalisation of the GHG emissions costs while delivering multiple benefits for the farming communities, like water source protection.

Sustainability seems to have come of age, as a global issue, and corporations and the consumer are now fully engaged.

The product improves, the environment improves, and both corporation and consumer are enhanced. Can the Colombian model be exported across both borders, and cultures?

Everyone has their role to play. As a private corporation, we must engineer our value chain to ensure environmental

and social performance is part of our business model. We see our role being in innovating to shape tomorrow, related both to food production and agricultural land use as well as resources and the circular economy.

The Colombian model can be exported across borders and cultures, but the big challenge is to obtain the recognition by stakeholders like consumers, civil society and policy makers of what is achieved.

The positive actions undertaken need to be more widely recognised so we can all promote best practice and further progress. We take this challenge seriously, particularly to engage consumers in the benefit of sustainable choices. This was reflected in our 2017 brand campaign ‘The Choices We Make” in which our ambassador, George Clooney, narrated the true story of Humberto, a farmer from the Jardin community in Colombia, whose life has been positively affected by the commitments of our company. ■

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TRAINING NEEDS TO REACH THE SDGS BY 2030

NIKHIL SETH Executive Director, UNITAR

Over two years since the historic adoption of the goals and targets contained in the 2030 Agenda, the time has come to assess the bottlenecks which impact their realization. I focus only on the promise to reach the furthest first while leaving no one behind. The UN membership of 193 has almost half of its membership which are either severely conflict distressed and/ or severely development distressed.

The question is how are we going to reach these countries to make the promises of the 2030 Agenda a reality in the lives of the citizens of these member states – in UN jargon “the countries in special situations”, including countries in Africa, least developed countries (LDCs), land locked developing countries, small island developing states and conflict stressed countries. These are not exclusive categories but together account for the bulk of UN membership.

Let me first put aside the argument that it will depend on transfer of resources and technology alone. Transfers in the form of aid, or concessional lending or more efficient remittances or better trade deals or greater investment flows.

Yes, these are important but what is most urgently needed is smart policy with better planning, smarter resource allocations and robust engagement of a myriad of actors, national and foreign, which are often well intentioned but do not engage in a coordinated and coherent way. Let me, therefore, put resource and technology issues aside and focus instead on the capacity dimension of the problems faced and one of the real bottlenecks which is the limited capacity in most of these countries to use the tools, the data and the modeling, to reboot policy away from the baggage and inertia of history, into the new “transformational” era defined by the 2030 Agenda.

The real challenge is creating a critical mass of national data producers and analysts from Samoa to Burkina Faso to Haiti who can help in guiding policy makers to the right decisions.

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SUSTAINABILITY & DEVELOPMENT

UNITAR, the organization I head in Geneva, trains 55,000 public policy officials and others annually. Training includes pre-deployment training for African military and police, climate change learning, de-centralized training of local authorities, training in chemicals and waste management, diplomatic training, analysis of satellite imagery and other training which covers the pillars of the Agenda 2030 – people, peace, planet, prosperity – and we do this in partnership with governments, the UN system, academia and the business sector. What has been most striking is how remote the great agendas of 2015, the Sustainable Development Goals (SDGs), climate change, disaster management, and financing are from the root and branch delivery of services at the national and local levels. The great halls of the General Assembly in New York and Geneva are churning out significant outcomes which are often stuck at the level of diplomatic discourse.

Here is the nub of the problem. Can the international system get together to build capacities in the countries furthest behind and what are the most immediate tasks?

Let me briefly highlight the four major tasks ahead.

In our interactions with LDCs in Africa and the small island states, the first issue we face is the incorporation of SDGs into national planning frameworks and the issues of aligning and harmonizing them with multiple national, regional and international agreements, e.g.

Africa 2063 and the SAMOA pathway as well as the nationally determined commitments (NDCs) for implementing the Paris climate change agreement.

For smaller planning ministries, the task is truly daunting. The international agreements are in harmony to a general degree, but weaving them into one national plan is a task for which support is required. The UN system is stepping up to the task but the specialized agencies with expertise, including on health, environment, sustainable agriculture and education, need to co-jointly work with country teams in these 90+ countries, to help Governments generate harmonized and aligned plans to guide programming and resource allocation for the achievement of the SDGs. This work at the national level would need to trickle down to provinces, cities and rural communities.

Strengthening capacities at the local level will be as critical.

The second major task is helping these countries, one by one, to better understand the deep network of connections between the goals and targets. How do the goals on sustainable agriculture interface with the goals on water, energy, poverty, hunger and climate change? Are scarce resources best spent on drip irrigation or larger irrigation infrastructures? What are the co-benefits of sectoral investments and what should be the planning and policy priorities?

Should quality girls’ primary education be a better investment over early childhood education? Countries need help with data, statistical analysis and modelling in light of the new integrated focus on “ending poverty in all its forms everywhere” along a sustainable pathway, without trading off present prosperity with future needs.

Training is needed in most planning and line ministries to look at issues afresh – to understand better the interconnection of goals and targets, quantify social benefits like equality, gender empowerment, social inclusion, climate change and the creation of peaceful and just societies.

The third, linked and immediate task, is building the capacity for modern data gathering, data analysis including through better household surveys,

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We have become accustomed to a world where lip service is paid to education and training, but where the resources and efforts are marginal in comparison to the needs. improved censuses and strengthened data collection and use. Policy to reach the most vulnerable must be able to identify who they are, where they live and how to improve their lives. This includes categories like the disabled (including mentally disabled), the elderly, indigenous peoples, migrants and others. This is no easy task but modern technologies including mobile telephony can facilitate crowdsourcing of problems and solutions.

Satellite and drone applications have a broad potential for enhancing analysis.

They are low cost, cutting edge and easily replicable. The real challenge is creating a critical mass of national data producers and analysts from Samoa to Burkina Faso to Haiti who can help in guiding policy makers to the right decisions. Developing capacities for data collection and use is not sufficient, however. Data needs to be analyzed and key questions asked in order to ascertain what real differences our investments are making and how

we can learn and improve policies, programmes and other undertakings for the betterment of society.

The fourth is the training needs of the business sector and civil society to understand their role and engagement in the implementation of the SDGs and the NDCs. Penetration is needed beyond the FORTUNE 500 companies, to the millions of medium and small industries in the countries in special situations. What do the SDGs mean for their activities? How can the goals, targets and indicators percolate down into the language and actions of their modest business models? Where should the focus of advocacy and civil society vigilance be directed in the implementation of the 2030 Agenda?

A strong and concerted effort needs to take place in building the capacities of these crucial non-governmental actors. Vital to this task is the creation of meaningful multi-stakeholder spaces

for regular interaction with governments.

Governments themselves require capacities to engage effectively with these actors, while ensuring underserved constituencies are well represented.

Beyond simply informing the critical stakeholders, Governments can promote a real collaboration through innovative institutional mechanisms and ensure there is shared ownership around localized SDGs. The training needs, in just these four larger conceptual areas, are huge. When we add the sectoral needs – in education, health, energy, water, security sector reforms, agriculture and infrastructure – it requires a truly gargantuan effort. We have become accustomed to a world where lip service is paid to education and training, but where the resources and efforts are marginal in comparison to the needs.

The deep transition we need for peaceful and just societies, with an end to poverty along a sustainable growth trajectory, firstly needs a mindset change in millions of decision makers’ minds.

Education and modern training are the best guarantee of this shift but when this will happen is a question mark.

We cannot wait until 2030. ■ 57

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SUSTAINABILITY & DEVELOPMENT

THE POWER OF THE GLOBAL GOALS

LISE KINGO CEO & Executive Director, United Nations Global Compact

When leaders from 193 countries adopted the 2030 Agenda and its 17 Sustainable Development Goals nearly three years ago, it marked the start of the most ambitious plan of action for people and planet the world has ever seen. A step forward from the previous Millennium Development Goals, these new Global Goals rightly identify the private sector as a necessary actor in tackling the biggest challenges faced by our world today. In response, the United Nations Global Compact and our Local Networks based in over 70 countries have been actively bringing business to the table through our “Making Global Goals Local Business” campaign. And companies everywhere are stepping up and taking action, something I have been able to witness first-hand through my travels to meet with businesses and Global Compact Local Networks on the ground.

The Latin American and Caribbean (LAC) region is no exception. On a visit to Argentina this April for our Making Global Goals Local Business regional event, nearly 600 local and global leaders from business, finance, civil society, Government and the UN convened to highlight business progress

on the Global Goals in the region. Held ahead of the G20 Meeting in Argentina, the event underscored the impact of multi-stakeholder partnerships and demonstrated how companies in the region are shifting sustainability from the fringes to the business mainstream.

We recently published a report illustrating how the business community in the LAC region is leading the way towards 2030. In fact, 80 per cent of the more than 2,100 companies participating in the UN Global Compact in the region are taking action on the Global Goals.

This level of engagement is unsurpassed by any other region in the world, and we should look to and learn from its causes.

The LAC region is facing a set of unique challenges associated with climate change, rapid and unsustainable urbanization, deforestation and loss of biodiversity. Many countries in the region have also seen the effects of an increase in the rate of obesity and noncommunicable diseases on a population that is also fighting hunger and undernourishment. These are all issues that the Global Goals explicitly address, and present clear opportunities for business to partner with other stakeholders to amplify impact. So it’s no surprise that

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61 per cent of companies in the region are engaging in multi-stakeholder partnerships to advance the Global Goals (compared with 54 per cent globally).

Centring a Principles-based Approach This year’s G20 meeting, hosted

by Argentina, will look at these very issues, and focus on fair and sustainable development, placing special attention on the future of work, creating infrastructure for development and building a sustainable food future.

Underlying themes include empowering women, fighting corruption and taking action on climate change.

More than 15 Global Compact Local Networks across the LAC region, including our Local Network in Argentina, have been proactively involved in contributing to this agenda from a private sector perspective through public policy dialogues. Most importantly, we are calling on all companies in the region to commit to the Ten Principles of the UN Global Compact — including human rights, labour, the environment and anti-corruption — as the foundation for private sector action towards sustainable development, and as a foundation for any public-private-partnership.

Many businesses in the region have already shown exceptional progress towards integrating the Ten Principles into their strategies and operations, including the most recent 10th Principle against corruption. And a growing number of companies – 14 per cent – are also requiring their suppliers adhere to the Ten Principles, with 61 per cent of considering adherence when selecting their supply chain partners.

But we need to go further and help enable businesses on the ground to centre principles across all operations.

At Making Global Goals Local Business – Argentina, I launched a year-long dialogue with leading experts and business leaders to explore putting the Ten Principles into practice, not least Principles 1 and 2, which are derived directly from the Universal Declaration of Human Rights. Putting human rights into action is essential to multiplying and magnifying the positive impact of responsible business, and it’s under the spotlight as we look ahead to the commemoration of the 70th anniversary of the Universal Declaration of Human Rights later this year.

The 2030 Agenda itself is grounded in the Declaration’s essential framing

of rights as universal and inalienable, which is why understanding human rights and integrating them into business practices is essential to making a meaningful and holistic contribution to the Global Goals. The regional dialogue in LAC was enlightening and inspiring in its demonstration of the power of collaboration across sectors to achieve common goals.

Creating the World We Want The Global Goals are a unique catalyst for businesses that want to turn risks into opportunities, and a hugely important lighthouse for the LAC region that has so much economic, social and environmental development potential. If we can learn from and replicate some of the energy and optimism building around the Global Goals there, then we can expect more and more businesses and stakeholders to join forces to create the world we want. But with less that 4,500 to meet the 2030 deadline, this is a time for bold action. Let us not become too comfortable, and remember the words of Argentine poet Jorge Luis Borges: “Nothing is built on stone; all is built on sand, but we must build as if the sand were stone.” Let’s keep building. ■ 59

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SUSTAINABILITY & DEVELOPMENT

ACHIEVING GENDER EQUALITY BY 2030:

A REALITY CHECK AND A ROADMAP

PHUMZILE MLAMBO-NGCUKA UN Under-Secretary General and Executive Director of UN Women

In 2015, world leaders adopted the 2030 Agenda for Sustainable Development and promised to transform our world, making gender inequality a thing of the past. As members of the United Nations, G20 countries have committed to follow up these commitments with action—promoting gender equality and sustainable development through both domestic policies and international cooperation.

Three years later, where do we stand?

And what will it take to turn the 2030 Agenda’s promises into a lived reality for all women and girls? Our global monitoring report Turning Promises into Action provides both a reality check and a road map for moving from rhetoric to sustainable change.

It’s a mixed picture. At the global level, girls’ enrolment in primary and secondary education has almost caught up with that of boys, though significant gender gaps remain in some regions. In other areas, progress is too slow to achieve the targets set out in the 2030 Agenda. Maternal mortality ratios, for example, went down by 44% between 1990 and 2015, but to achieve our targets we still need to triple the annual rate of decline. Finally, there are areas where progress has been

minimal and wide gender gaps persist.

With the exception of Latin America and the Caribbean, for example, the gender gap in labour force participation has remained relatively unchanged over the last 20 years and the global gender pay gap stands at a stubborn 23%.

The report makes it starkly apparent that women are more affected by extreme poverty. Across regions, the gender gap for those living on less than $1.90 a day is widest for the 25-34 age group, with women 22 per cent more likely than men to be living with this extreme deprivation.

These are peak productive years where many women and men are earning a living to sustain themselves and their families; but they are also prime reproductive years, meaning that many of them have small children to care for. The fact that women in this age group are so much more likely to be poor than men shows that the responsibility for ‘reconciling’ production and reproduction falls disproportionately on their shoulders. For many women this implies harsh tradeoffs: either leaving their children unattended or sacrificing an income that could lift them and those very same children out of poverty.

In most G20 countries, women are more likely to be income poor than

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men, with single mothers particularly affected. In the United States, Brazil, South Africa, Luxembourg and Italy more than 40 per cent of single mothers live below the 50 per cent of median income, a measure of relative poverty. There are solutions that the G20 can lead the way on: by promoting a supportive policy framework, at home and abroad, which enables women and men to care for their family members without being condemned to poverty. That will take solutions such as universal social protection, affordable childcare services, paid maternity and parental leaves as well as long-term care solutions for rapidly ageing societies.

Investments in these areas can yield important benefits for women, for families and for economies. The expansion of quality early childhood education and care services, for example, has rightly been recognized as an important pillar of inclusive growth by the G20 Development Working Group. Broad-based and affordable access to these services can help women increase their participation in paid employment, create jobs in the social service sector and contribute to children’s development, particularly those from disadvantaged backgrounds.

Such investments have price tags, but they also generate important pay offs. In South Africa, for example, a gross annual

investment of 3.2 per cent of GDP would not only make quality childcare services available to all. It would also create more than 2 million new jobs and raise female employment rates by 10.2 percentage points. The new jobs would generate additional tax and social security revenue.

We live in a world where resources are plentiful, but do not reach those who need them the most. The financial resources flowing out of developing countries are 2.5 times the amount of aid flowing in. Unrecorded capital flight, including illicit financial flows, constitute the bulk of these outflows – compared to which gender allocations in official development aid are a drop in the ocean.

Since 2016, developed and developing countries alike have been eroding safety nets and essential services on which so many women and girls depend. In virtually all countries, there is scope for raising additional revenue from both domestic and external sources to avoid cut-backs and prioritize genderresponsive investments.

We can afford the resources needed to achieve the SDGs. It is a matter of political will and of using all the available policy tools. The cost of inaction is simply too high. â– 61

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SUSTAINABILITY & DEVELOPMENT

SHAPING THE FUTURE BY ACCEPTING RESPONSIBILITY AND INVESTING SUSTAINABLY

SIMON TRIBELHORN CEO of the Liechtenstein Bankers Association

Our society is facing major challenges from an environmental, social, technological and political perspective. We must all fulfill our social and corporate responsibility and contribute to a livable future.

To overcome these many and diverse challenges, we not only need a strong political system. We also need businesses to act sustainably and make their own contribution by introducing structural changes and technological innovations. The financial sector has a significant responsability and plays an important role in the necessary transformation process when allocating capital.

UN SDGs are Key In 2015, the UN adopted Agenda 2030, with the backing of all member states.

The core components of this agenda are 17 goals for sustainable development, the so-called SDGs. For the first time, combating poverty and sustainable development have been combined in a single agenda. It aims to achieve an all-round improvement of the future: the future of our planet. “No one shall be left behind,” emphasised the UN SecretaryGeneral Ban Ki-moon when adopting

the SDGs. The holistic dimension of this sustainability approach shows that new ways of thinking and acting are urgently necessary. Only then can a compromise be reached between sustainability and development. But the true test is yet to come – namely implementation. The UN can only achieve these goals if all actors play their part: states, businesses, local communities and each individual person.

A Question of Allocation The inclusion and mobilisation of private wealth is crucially important for reaching the sustainability goals. According to Deutsche Bank, the global wealth of private households amounted to a total of USD 250 trillion in 2015. Juxtaposed with this figure, the Brookings Institution expects that USD 5 to 7 trillion will be needed each year to finance the defined sustainability goals. The assets managed worldwide by institutional investors such

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Stability and sustainability are probably among the most important challenges of today, and they increasingly shape political agendas. as pension schemes, investment funds, insurers, etc., are about USD 83 trillion according to OECD estimates. Both investments of private wealth as well as investments by institutional investors tend to have a long-term orientation, as do the sustainability goals themselves.

Private investments and investments by institutional investors could accordingly be employed worldwide to end hunger, ensure education, promote health and well-being, secure access to affordable and clean energy, support innovation and infrastructure projects, and fund climate protection measures. Or in the words of Philipp Hildebrand, vice chairman of BlackRock, the world’s largest asset

manager, at the Frankfurt European Banking Congress in November 2015: sufficient capital is available; it is merely a question of the right allocation.

The majority of institutional investors are already convinced that sustainable investments help increase risk-adjusted yield. Sustainable investments are also becoming increasingly important for private investors. However, there still seem to be a lot of constraints preventing relevant investment entities and private investors from integrating sustainability factors in their investment decisionmaking. In order to further disseminate sustainable investments, we need to raise awareness and acceptance of the fact

that environmental and social returns do not mean renouncing economic returns.

This erroneous belief is still strongly rooted in the minds of investors, but also of product providers – even though numerous studies have shown that sustainable investments even lead to better financial returns in the long run.

More Leadership is Imperative This means that there is not only a need for action, but also for information and education. The financial industry plays an essential role in this regard. Having said that, it is apparent that in order to overcome these obstacles leadership at the top of each and every financial institution is needed, actively driving the change and accepting responsibility – for ourselves and our future, but also for future generations. The ongoing digitalisation opens up completely new opportunities to tackle all these issues, ⊲ 63

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be it in order to have the right data available, everywhere at anytime or be it in the form of new educational tools and working models, but as well on the frontend to reach out to new generation clients via innovative communication channels.

Taking a look at Liechtenstein Stability and sustainability are probably among the most important challenges of today, and they increasingly shape political agendas. The example of Liechtenstein – a financial centre in the heart of Europe with an international orientation – shows that even small national economies can make an important contribution to reaching the Sustainable Development Goals as well as to stability and sustainability in general.

Liechtenstein, with its 37,000 inhabitants, offers the institutional framework for sustainable development: economic growth at a high level, low CO2 emissions, and fast and unbureaucratic channels to act in a capable and adaptable way. With these indicators alone, the small country of Liechtenstein has an advantage over larger national economies in terms of initiating and realising sustainability. With its balanced, debt-free national budget and a AAA country rating that has been confirmed over many years, Liechtenstein

The Liechtenstein financial centre also has the ideal preconditions for accepting a significant role in the responsible investments of assets. is also one of the most stable countries in the world. At the same time, the country has proven to be a reliable partner of the international community over the years. This can be seen in its participation in automatic exchange of information, its effective measures against money laundering and terrorist financing, and its implementation of international regulations.

All of this demonstrates that Liechtenstein is a small country that acts sustainably.

And despite all of the regulations and international obligations – which may at times be challenging – the Liechtenstein financial centre is successful.

Investing with Impact With more than 1,300 non-profit foundations and its many years of experience and expertise in wealth management, the Liechtenstein financial centre also has the ideal preconditions for accepting a significant role in the responsible investments of assets and thus to serve as an important bridge

between investors who want to invest their money in a meaningful way and the existing financing gap for sustainable investment. LGT – Liechtenstein’s largest banking group – is one of the pioneers in this regard both nationally and internationally. With its subsidiary, LGT Venture Philanthropy, and its activities in sustainable investments, it has become one of the most important impact investors. The goal is to help low-income and disadvantaged people around the world directly. Numerous examples show that the investments needed for that purpose are bearing fruit – such as the opportunity to increase the number of children with access to school in poorer regions by a factor of ten, or contributing to improved electricity supply by supporting the construction of small power plants in Indian villages. These examples illustrate, in the Liechtenstein financial centre, sustainability is not merely a model for the future. It is the model for the future! ■

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REMARKS AT CLOSING OF HIGH-LEVEL POLITICAL FORUM ON SUSTAINABLE DEVELOPMENT

ANTÓNIO GUTERRES Secretary General United Nations

The eight days of the High-Level Political Forum on Sustainable Development have been a time to recommit to the transformative vision of the 2030 Agenda and to assess where we are.

I believe your discussions – along with the Voluntary National Reviews of 46 countries – have helped show the resolve to implementing the Agenda.

They demonstrated also the commitment at other levels of your governments, namely at local and regional authorities.

They reflect the growing and increasingly crucial efforts of civil society, the private sector, academia and others.

And, indeed, we see important progress in a number of areas around the world – reducing maternal and child mortality, expanding basic education, improving access to electricity and much more.

But your discussions have also made clear that we are lagging or even backtracking in other areas that are fundamental to our shared pledge to leave no one behind.

For the first time in a decade, the number of people who are undernourished has increased,

mainly due to conflict, drought and disasters linked to climate change.

Gender inequality continues to hold women back and deprive them of basic rights and opportunities.

And investment in critical sustainable infrastructure remains entirely inadequate.

At the same time, we face mounting challenges. Runaway climate change.

A growing number of conflicts and inequality. An erosion of human rights.

An unprecedented global humanitarian crisis and persistent pockets of poverty and hunger.

The 2030 Agenda and the Sustainable Development Goals are our collective response to building a fair globalization.

They are a recognition of the need to address the gaps in the extraordinary expansion of the global economy over the last decades.

We need to embed the essence of the 2030 Agenda into everything that we do.

How do we get there? Let me point to several essential pathways.

First, we must mobilize the transformative power of the world’s young people. In September, we will launch the UN’s strategy to support and engage young people. ⊲ 65

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Education is essential – as a critical tool for empowerment, for advancing gender equality and decent work for all, and for changing the way we produce, consume and live.

Second, we need to get greenhouse gas emissions under control. Climate change is moving faster than we are.

Yet we see insufficient political will to meet commitments.

The foundation for climate action is the Paris Agreement on climate change. Its main goal is to limit global temperature rise to well below 2 degrees Celsius, and as close as possible to 1.5 degrees.

But we must acknowledge that Paris is not enough. The economic and social transformation needed to stay well below 2 degrees requires nothing short of an industrial and energy revolution and we are not yet there.

In September 2019, I will convene a Climate Summit to galvanize greater climate ambition. I count on you to pave the way for bold climate leadership and innovative action.

Third, funding gaps for SDG investments are vast and urgent. We must unlock the large levels of financing necessary to implement the 2030 Agenda, particularly in vulnerable countries.

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For peaceful and inclusive societies, we need justice, effectiveness, transparency, accountability, and participation – principles that institutions should follow to deliver the 2030 Agenda.

Countries must do everything to mobilize internal resources. But the international community must do all it can to make sure they support countries in this effort by fighting illicit flows of capital. money laundering and tax evasion. In September, I will convene a High-level Meeting on Financing the 2030 Agenda.

Fourth, technology has great potential to help deliver the SDGs. But it can also be at the root of exclusion and inequality.

We need to harness the benefits of advanced technologies for all. Last week I announced a new High-Level Panel on Digital Cooperation that will focus on this challenge.

Finally, we must further strengthen institutions. This was apparent both in the Goals reviewed this year, and in the Voluntary National Reviews.

For peaceful and inclusive societies, we need justice, effectiveness, transparency, accountability,

and participation – principles that institutions should follow to deliver the 2030 Agenda, to realize all human rights and to strengthen the trust on which social cohesion is built.

In today’s globalized world, we cannot look at development simply as a conflict prevention tool. Development also plays a very important role in creating the conditions for resilient societies and a peaceful world. But development is an end in itself and it must be a central objective of the action of the UN. We must address the drivers of conflict and support the long-term capacities and institutions that are required for sustaining peace and sustainable development.

Multilateralism is the only way to tackle the complex, inter-connected and long-term challenges we are facing.

The recent conclusion of consultations on the Global Compact for Migration

and the Global Compact on Refugees is extremely encouraging – addressing issues that are central to realizing the Sustainable Development Goals, where comprehensive and robust international cooperation is essential.

I am also pleased that Member States have embraced reform of the UN Development System so that we are better equipped to help Governments respond to the 2030 Agenda.

Operationalizing the Resident Coordinator system is an essential next step and I am grateful to those countries that have already indicated their willingness to help fund that system during the transition in 2019.

Every government, every human being can rally behind the 2030 Agenda as an agenda for prosperity and peace on a healthy planet.

Let us leave this Forum with a fresh commitment to work together, to share innovative solutions and live up to the Agenda we set for ourselves.

Let us demonstrate through decisive actions that the transformation demanded by the 2030 Agenda for Sustainable Development is well and truly underway. ■ 67

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THE ROLE OF ISLAMIC FINANCE IN ACHIEVING THE SDGS ICD

The Islamic Corporation for the Development of the Private Sector (“ICD”) is a multilateral development financial institution and is member of the Islamic Development Bank (“IsDB”) Group. ICD was established to support the economic development of its member countries through the provision of finance for private sector projects, promoting competition and entrepreneurship, providing advisory services to the governments and private companies and encouraging cross border investments.

The new SDGs unlike the previous MDGs, are focusing on solutions owned by countries that can make sustainable improvements in people’s lives. However, with all the ongoing initiatives, nationally or internationally driven, complementing, overlapping or conflicting sometimes, how would we know in the end the best solutions that have really made significant difference in achieving the SDGs? In this article, we first highlight the case of Islamic Finance with some unanswered questions on its role in development.

Section 2 presents rigorous methodologies that help answer those questions and section 3 concludes on concrete steps being taken at IsDB Group level.

1. Unanswered questions on the role of Islamic Finance in development More and more development agencies are relying on building strong empirical evidence as one of their main contributions to the SDGs. In fact, their greatest impact will not be the amount of financing they provide (which is insignificant compared to domestic and private finance) but the evidence they provide in addition, to inform development policy on ways to accelerate the achievement of the SDGs.

For the ICD point of view, as a premier Islamic Financial institution, how are we going to demonstrate that Islamic finance is able to make significant difference in people’s lives, with rigorous empirical evidence?

How do the different Islamic finance products affect repayment and longterm utilization of financial services, and ultimately the profits of Financial Institutions? How do Islamic finance products affect the welfare of the recipients? Evidence has shown that classical micro-credit has no significant impact on poverty, can we say the same for Islamic Microfinance?

2. Rigorous methodologies to answer the unanswered questions The above causal inference questions cannot be rigorously answered with anecdotal stories or classical surveys, which often suffer from selection bias and measurement errors, which lead to “False Positive” or “False Negative”

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ICD, the private sector arm of IsDB Group, is taking steps to start including empirical research in its program design. results. Instead, to minimize these issues, researchers are using advanced empirical methods such as : Randomized Control Trial (RCT): a sample is randomized between treatment and control groups.

As the treatment (the intervention) has been randomly assigned, the difference in outcomes of the two groups is the effect of the intervention.

Although RCT is the ideal set-up for causal inference, it is not doable for some interventions because of its strict requirements.

Difference-in-Differences (DD): DD compares outcome before and after an intervention for a group affected by the change (treatment) to a group not affected by the change (control).

The validity of the method depends on whether the control group and the treatment group would be on the same trend in absence of the intervention.

Regression Discontinuity Design (RDD): RDD compares outcome for people whose value of the underlying targeting variable is just below (group 1) and just above the discontinuity (group 2).

These two groups are similar before the intervention. Any difference could be attributed to the intervention. Here, large sample or sometimes census data are required.

3. Concrete steps undertaken by ICD to invest in empirical evidence ICD, the private sector arm of IsDB Group, is taking steps to start including

empirical research in its program design.

The first attempt using Randomized Control Trial will be with the “Business Resilience Assistance for Value-adding Enterprises for Women (BRAVE Women) program” initiated by the Women and Youth Empowerment Division of IsDB and the Industry and Business Environment Support Advisory Program of ICD. They have partnered to submit a joint proposal to the Women Entrepreneurs Finance Initiative (We-Fi), a multi-donor fund supported by 14 governments and managed by the World Bank.

Based on the proposal, in April 2018, the IsDB Group was granted $32 million to implement the BRAVE Women program with the aim to enhance the resilience of women-owned SMEs in Yemen, Nigeria and Mali. One of the empirical research question that the RCT will address is: In fragility context, which types of women-owned businesses benefit the most from business resilience training combined with grant-matching. ■ 69

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THE CRITICAL ROLE OF THE G20 FOR ADVANCING SUSTAINABLE DEVELOPMENT FOR ALL

ACHIM STEINER Administrator of the United Nations Development Programme

The world economy is growing at its fastest pace in several years, and the short-term trends for growth and employment are promising in many countries. We also see, however, clear signs and risks that could derail this trajectory, potentially leading to negative consequences for many emerging economies and developing countries.

Adding to these economic factors, challenges such as climate change put longer-term development prospects at risk. The 2030 Agenda for Sustainable Development, a universal agenda that is meant to shape our collective future, provides a blueprint to manage these risks towards sustainability and inclusion.

Policy choices currently being made that steer us away from multilateral approaches may appear beneficial in the short term.

But in the long term, they could put us in a downward spiral. While decisions are made by a few, consequences will be borne by many, if not all.

G20 countries have an individual but also collective responsibility to find multilateral solutions to advance sustainable development for all. The financial architecture must play a key role in creating economic gains through greater stability and resilience, but also

in the social and environmental realms, including by reducing inequalities.

Objectives such as “financial stability” and “stable growth” should not be seen as ends in themselves but rather as instrumental in advancing sustainable development.

I would like to highlight three policy areas where the G20’s voice would be particularly relevant.

First, tax systems are not only a means to mobilize public resources but also a tool to provide incentives towards sustainability.

G20 economies bear a special responsibility to strengthen multilateral and cooperative approaches to taxation to curtail harmful tax competition. It is also important to ensure that tax reforms pay greater attention to their spill over effects, avoiding tax uncertainty. Similarly, taxation of economic activities in the digital space requires collective action towards a coherent set of international tax rules.

Such rules need to create policy space for developing countries.

A second area is debt sustainability.

Debt risks have risen rapidly in many developing countries in recent years. A growing number of low-income countries have tapped international debt markets,

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G20 economies bear a special responsibility to strengthen multilateral and cooperative approaches to taxation to curtail harmful tax competition. and foreign-currency denominated corporate debt is high in several emerging economies. Many have been experiencing currency depreciations, making these countries particularly vulnerable to an abrupt tightening of global liquidity conditions.

It is critical to design financial instruments that respond to shocks in ways that disperse more quickly and that have built-in incentives for risk reduction and prevention. Innovative instruments – such as state-contingent debt instruments – could, over time, enable countries to better cope with shocks and have a more predictable flow of resources, particularly in light of the risks

of climate change-induced disasters.

The G20 could take steps to realize their potential, including by using them in their own lending and development cooperation efforts.

Sustainable finance is a third area.

The work of the G20’s Sustainable Finance Study Group, building on the work supported by the United Nations over several years, can make an important contribution to advancing sustainable finance.

Corporations have progressively incorporated environmental, social and governance elements into their reporting and their corporate management, although often on

ad-hoc basis and mostly through unaudited self-reporting. There is a need to agree on global standards that financial products need to meet in order to be marketed as “sustainable.” The UN could contribute to identifying minimum, sector-specific sustainability criteria that companies should be disclosing, thereby introducing greater standardization in sustainability metrics.

The United Nations is committed to working with the G20 very closely in ensuring that we promote collective action not only to diagnose but also to mitigate risks and create an enabling environment for the timely realization of the 2030 Agenda and the Sustainable Development Goals. In addition to their collective actions, G20 countries can lead by example by showing how they are adopting economic and financial policies domestically that are consistent with the SDGs. ■ 71

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STRENGTHENING PUBLIC RESPONSIBILITY FOR EDUCATION AND LIFELONG LEARNING

AUDREY AZOULAY Director General of UNESCO

For the first time, G20 education ministers will meet this September to agree on strategies that aim ‘to unleash people’s potential for the future of work’ as per the aim of the Argentine presidency of the group.

This marks a recognition that education is a cornerstone of development, fairness and sustainability, goals at the heart of the G20’s vision this year.

Such a recognition must translate into robust policies, combined with financial commitments, to ensure that children, youth and adults are equipped with the knowledge and skills they need to shape a more inclusive model of growth and development.

The evidence is unequivocal: education is a major determining factor of economic growth, employment and earnings; it is key to helping individuals escape poverty and one of the most powerful ways to improve people’s health. women’s education, WithGirls theandsupport of in particular, has unmatched transformative power.

All societies are undergoing change at a vertiginous rate, led by the ongoing revolution in technology that is disrupting previous models whilst opening up tremendous opportunities to expand

UNESCO

United Nations Educational, Scientific and Cultural Organization

learning, and to learn differently and better. The mismatch between skills and labour markets is coming to the forefront of political agendas. There is a recognition of the need for education and training systems that can better assess and anticipate changing skills needs, and offer more flexible learning pathways.

The stakes are high: at a time when knowledge is the frontier of wealth, 263 million children, adolescents and youth worldwide are out of school and 617 million are not achieving minimum proficiency skills in reading and mathematics. Among the latter, 47% – or 287 million – reside in G20 countries, according to estimates by the UNESCO Institute for Statistics.

The first imperative is to address these inequalities that are jeopardizing the life chances of millions of young people. The future of work must be built upon strong foundations, starting in the earliest years, to address inequalities at their root, before they start to amplify due to poverty, discriminatory practices and other barriers. The economies of the future cannot be dissociated from the education systems of the present. Are education systems adequately preparing

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This vision is captured in the fourth Sustainable Development Goal on education that places the focus on equity, quality and inclusion at all levels, through a lifelong learning perspective. learners to deal with uncertainty and rapid change, for jobs that do not yet exist, for the transition to green economies and the digital age?

The transformations at work in society, coined as a “fourth industrial revolution”, require reorienting education systems around new competences, new skills and new ways of teaching. This vision is captured in the fourth Sustainable Development Goal on education that places the focus on equity, quality and inclusion at all levels, through a lifelong learning perspective. This is not a numbers game but one that values learning achievement and the acquisition of digital skills that are critical to all sectors of the economy. It also demonstrates the motivation to act as responsible global citizens, to find innovative solutions that will improve human well-being, strengthen peace and protect our planet and its finite resources. Critical thinking, creativity,

collaboration, problem-solving skills and entrepreneurial capabilities – these are increasingly the skills we need to foster. They are also pre-requisites for increased social and economic inclusion.

Respected, well-trained and motivated teachers have the most powerful influence on learning – they must be empowered to lead change in their classrooms. Clearly, technology must be an ally in this process, to expand opportunities for the most marginalized, and to enrich the teaching and learning process.

UNESCO is acting across all these dimensions to encourage more holistic, relevant and inclusive education systems that are geared to 21st century challenges. We have been at the forefront of advancing the understanding and practice of education for global citizenship, sustainable development and the prevention of violent extremism. As the United Nations

agency responsible for coordinating Sustainable Development Goal 4, we are piloting a strategic and collaborative approach to steer progress, to promote deeper knowledge sharing of policies and practices across countries, and to advocate for a focus on education and skills at the highest political levels.

Representing the world’s largest advanced and emerging economies and two-thirds of the world’s population, the G20 countries hold the reins of future global prosperity and peace.

The common challenges they face – in improving educational quality, in anticipating skills, managing diversity, bridging digital divides and encouraging mobility requires reinforced international collaboration. They can bring about stronger synergies between education and labour ministries, between public and private sectors.

Current global inequalities are widening, which will weaken G20 economies and the fabric of their societies. The 2030 Agenda of the United Nations is about leaving no one behind. UNESCO’s Global Education Monitoring Report estimates that low and lower middle incomes face an annual financing gap of USD 39 billion.

Even if they increase their domestic revenue raising capacities, public expenditure will be insufficient to bring the transformational change required to achieve the ambitions of the new education agenda. The share of education in total aid fell six years a row from 2009 to 2015, while the share of aid to basic education in sub-Saharan Africa – which hosts over half of the world’s out of school children – fell by half.

To face this challenge, we need a surge in global solidarity.

By championing increased public aid to education and innovative financing tools that work together to maximize learning opportunities, the G20 would send a clear message of collective responsibility for education as a global public good and a human right.

Education has found its rightful place on the G20 agenda – this must be reflected in the Summit outcomes and remain a priority for future presidencies. ■ 73

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PROMOTING GOOD GOVERNANCE A KEY FACTOR FOR STABILITY AND SECURITY

THOMAS GREMINGER Organization for Security and Co-operation in Europe

Good governance leads to economic benefits in a globalized world and it accelerates economic development.

As such, it is an integral part of the comprehensive concept of security of the Organization for Security and Cooperation in Europe (OSCE) that encompasses political-military, economic and environmental, as well as human rights issues.

Our Organization works to enhance security and stability in the OSCE region by promoting international co-operation on economic issues, strengthening good governance and assisting our participating States in combating corruption, money laundering and the financing of terrorism.

We promote good governance by working closely with government institutions and relevant national structures as well as regional and international organizations, by teaming up with the business community and civil society, and by leveraging our extensive field presences in Southeast Europe, Eastern Europe and Central Asia. Our 57 participating States have long recognized that good governance is an important factor for stability and security everywhere.

The Office of the Co-ordinator of the OSCE Economic and Environmental

Activities holds some of our best expertise in good governance and it supports participating States through tailored technical assistance and policy advice, helping them to identify and tackle key challenges in the areas of anticorruption, anti-money laundering and combating the financing of terrorism. For instance, we have recently contributed to capacity-building of the financial intelligence units of Moldova, Ukraine and in all five of our Central Asian participating States, and provided policy advice and anti-corruption trainings in Mongolia.

The OSCE has also developed a Handbook on Combating Corruption, which is being translated into a number of other languages. A set of training modules will be developed and implemented in close co-operation with OSCE field operations and external partners.

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The OSCE, moreover, provides assistance to participating States in implementing their anti-corruption commitments, in particular those related to the UN Convention against Corruption (UNCAC). Many of our activities correlate with the 2030 Agenda, including those focused on providing access to justice for all, building effective, accountable and inclusive institutions at all levels, ensuring sustainable management of resources, support for climate action, providing access to affordable and clean energy, and building sustainable cities and communities.

In Ukraine, to use another example, we conducted an anti-corruption needs assessment mission and provided support and assistance in formulating anti-corruption strategies in municipalities that have requested

OSCE support. Our work in good governance also includes the facilitation of bilateral co-operation between our participating States. Following a request by the National Anti-Corruption Bureau of Ukraine, the Office facilitated co-operation for the Specialized AntiCorruption Prosecutor’s Office of Ukraine and relevant counterparts in Austria.

In Central Asia, the OSCE conducted a series of targeted trainings aimed at fostering a participatory approach towards the prevention of corruption.

In Belarus, Moldova and Kazakhstan, a recent project aims at contributing to political confidence among official authorities to promote connectivity and trust among governments and the business community.

As we continue our work in these and similar projects, I intend to make sure

that we remain a first-rate provider of support for our participating States and that we are well-placed to respond to relevant challenges and opportunities in partnership with regional and international institutions such as UNODC, OECD and the World Bank that are engaged in a similar mission.

I take this opportunity to congratulate Argentina on its 2018 G20 Presidency. I am confident that the political, economic and financial discussions in this format will contribute to international efforts to increase accountability, transparency, public participation and respect for the rule of law. On the basis of its longstanding experience in these areas, the OSCE will continue to advocate for better governance and make its expertise available to help foster stability and security in Europe and beyond. â– 75

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HOW CRIME FOLLOWS IN CONFLICT’S SLIPSTREAM

YURY FEDOTOV Executive Director, UN Office on Drugs and Crime

Shocking images in Libya last year showed human traffickers selling people to the highest bidder like cattle in a market. These powerful CNN images flashed across the world, and they are deeply shaming. The disturbing pictures are also the highwater mark for how conflict, weak institutions and crime combine to exploit the most vulnerable people.

Libya, however, is not the only country where conflict helps to drive crime.

In the Democratic Republic of Congo – the DRC – years of bloody fighting have aided smuggling and the theft of natural resources – charcoal, gold, timber and endangered wildlife. Hundreds of millions of dollars have flowed out of the country and into the hands of organized crime; making the criminals enormously wealthy, and leaving citizens to eke out bleak and bare existences.

Brutal conflict in Syria and economic instability are adding to the vast movement of people across the world— the largest since the end of the Second World War. All of these people—many of them children travelling alone—are prey to smugglers, but also cruel traffickers.

Thousands are dying as they cross deadly deserts and cruel seas.

Somalia, with Africa’s longest mainland coastline, was always historically prone to piracy. Conflict and economic crisis – in the form of unemployment – have powered the rise of this maritime crime that the World Bank estimated once cost global trade billions of dollars. Although there has been a lull in significant attacks, last year saw the issue creep back onto the world’s radar.

Afghanistan last year posted astonishing, and profoundly worrying, increases in the cultivation and production of opium. Based on the latest Afghan Opium Survey by the UN Office on Drugs and Crime (UNODC) opium production rose 87 per cent in 2017. Not all of Afghanistan’s problems are due to the bitter insurgency, endemic corruption also plays a sustaining role, but the fighting is ever-present.

Crime is a leech – deeply opportunistic, attaching itself to any nation made fragile by conflict or crisis and siphoning off resources and riches. Where crimes such as drug trafficking, human trafficking, migrant smuggling appear, corruption and money laundering are close behind to compound suffering.

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Hundreds of millions of dollars have flowed out of the country and into the hands of organized crime; making the criminals enormously wealthy, and leaving citizens to eke out bleak and bare existences.

Transnational organized crime, however, is not simply the beneficiary of horrific conflict and destabilizing insecurity, it is actively fuelling these global problems. Armed groups such as al-Shabaab, Boko Haram and ISIL are engaged in crimes to spread fear, but also to profit and bankroll atrocities.

The Taliban, in Afghanistan, earns tens of millions of dollars from taxing organized crime groups moving opium through their territory and are perhaps involved in production. A snapshot of human trafficking in areas of conflict shows how child soldiering, sexual slavery and forced labour spread further terror.

Given crime’s ability to feed off and fuel conflict, new approaches are necessary.

Fortunately, the 2030 Agenda for Sustainable Development is enabling new critical thinking. The 2030 Agenda represents a dramatic sea change that includes tackling crime. Goal 16 calls for

peace, justice and strong institutions, and recognises that drugs, crime, corruption and terrorism are barriers to secure societies.

Perhaps the shining example of this changing paradigm is the way the Colombian government approached peace with FARC. The government has incorporated essential strategies for ending the country’s cultivation and production of the coca plant into the peace agreement. This will prevent the possibility of crime blossoming in any vacuum.

But if we are determined about tackling crime rooted in weakened societies, we must also inject anti-crime strategies into peacebuilding and conflict prevention efforts. Here are three essential points.

Education is fundamental to building civic participation and encouraging young people to grasp their hopes and opportunities. UNODC is assisting through its Education for Justice Initiative

under the Doha Programme that builds respect for the rule of law among children and young people.

Ignoring the need to build and strengthen institutions is perilous.

The absence of the rule of law, and weak institutions can promote conflict and instability. They can create mass migration, the growth of illicit economies and calamitous loss of life.

We are nothing without cooperation at every conceivable level. The role of UNODC is to use it forums to highlight the challenges and to help forge unity among member states for delivering solid solutions on the ground.

Cooperation is the binding glue of our work and the chances of success are diminished by its absence.

Conflict, along with climate change, represents one of the greatest challenges of our times, but considerable thought needs to be given to the terrible impact that crime has on post-conflict societies.

To do this, we must integrate efforts against crime not only into the search for peace, but also into our conflict prevention efforts. We cannot and must not lose the incalculable benefits of lasting peace to the greed of criminals and traffickers. â– 77

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THE FUTURE OF WORK IN THE DIGITAL ERA: IT DEPENDS ON ALL OF US

HOULIN ZHAO Secretary General of the International Telecommunication Union

The emerging technologies that are driving the digital economy are also reshaping the future of work.

Big data, blockchain technologies, cloud computing, and artificial intelligence (AI) are already increasing productivity and economic growth, opening up new job opportunities in a wide range of fields.

Information and communication technologies (ICTs) will accelerate progress towards the United Nations’ Sustainable Development Goals, including No. 8 – economic growth and decent work for all – but we have to recognize that these new technologies are disruptive, and are causing anxiety and resistance to change. In order to ensure progress, all stakeholders must come together as we approach the challenges and opportunities that this new era presents.

As the UN specialized agency for ICTs, the International Telecommunications Union (ITU) rallies stakeholders from around the world to develop global standards on communication technologies and services, manage spectrum and satellite orbits, and assist developing countries with infrastructure and policy development on ICTs. With its wide membership of governments,

private companies, academia and civil society, ITU has an important role to play to build consensus on how emerging technologies can shape our future for the better, and to speed progress on each and every one of the 17 Sustainable Development Goals (SDGs) of the 2030 Agenda.

As countries everywhere start to prepare their economies for the digital transition, I urge them to consider one important challenge: to bring online the 3.9 billion people who still do not have access to the Internet and the opportunities, services, and skills it provides. If explicit efforts to develop skills, to ensure inclusion and universal accessibility are not urgently undertaken, ICT disruption risks accelerating the growing income disparity and fostering winner-take-all economics. International solidarity to bridge the global digital divide is now more urgent than ever.

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Developing ICT Skills Building or upgrading the necessary infrastructure is a priority. In the twentyfirst century, broadband networks are critical. They are as important as roads, railways, water, and power networks.

But giving people, especially those in low-skill jobs, the ICT skills they need to succeed is equally as important. That is why ILO and ITU, for example, are leading the Digital Skills for Decent Jobs Campaign as part of the Global Initiative on Decent Jobs for Youth. The idea is to bring digital skills training to five million young people around the world by 2030 so as to equip them with job-ready, transferable digital skills.

Fostering Economic Growth through Financial Inclusion More than two billion adults still don’t have a formal bank account, most of them in developing economies. But 1.6

billion of these unbanked people have access to a mobile phone. Because digital financial inclusion can act as a multiplier for poverty eradication and job creation, ITU has teamed up with several partners to launch a new global program to accelerate digital financial inclusion in developing countries.

event, ITU focuses on supporting the success of innovators who drive socioeconomic growth and job creation.

Tech SMEs have a crucial role to play in stimulating economic and social growth, accelerating innovation, digital inclusion and the development of smart societies everywhere.

Promoting SMEs Small and Medium Entreprises (SMEs) make up more than 95% of all businesses worldwide, and represent a path out of poverty for many developing countries. Since digital technologies are improving the prospects for small businesses in developing countries to participate in global trade, ITU is participating in ‘e-Trade for all’ – a collaborative effort which aims to help developing countries engage in, and benefit from, e-commerce.

Every year, at the ITU Telecom World

A Moment of Opportunity Employment lies at the heart of human survival, wellbeing, and identity.

If we are to achieve economic growth and full and productive employment for all, we need to turn this moment of uncertainty into a moment of opportunity and make technology disruption work for job creation. In this endeavour, ITU stands ready to assist all stakeholders in their effort to meet their commitment to build a people-centered, inclusive and development-oriented Information Society. ■ 79

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BUILDING FAIR AND SUSTAINABLE DEVELOPMENT IN THE G20

GUY RYDER ILO Director General

This year’s G20 theme under the Argentine presidency is “Building Consensus for Fair and Sustainable Development”. It deepens the Leaders’ 2017 commitment in Hamburg “to promote greater inclusiveness, fairness and equality in our pursuit of economic growth and job creation”. Argentina brings to the presidency the perspective of Latin America and the Caribbean, in particular the region’s desire to reduce poverty and promote more inclusive societies in this rapidly changing world.

Through that lens, Argentina has identified three priorities to drive the work of the G20: the future of work, infrastructure for development and a sustainable food future.

The priorities chosen by the Argentinian presidency come at the right time. Although the world economy has rebounded and economic growth is expected to remain stable over the next few years, major challenges persist in the employment arena. The unemployment rate in G20 countries overall has decreased by 0.5 percentage points since its peak in 2009 but employment is stagnating in G20 emerging countries.

Youth unemployment (13.5 per cent in 2017) remains a major concern and is on

average 2.5 times higher than the overall unemployment rate. While the gender gap in labour force participation rate decreased by 30 per cent in advanced G20 countries over the last 20 years, it increased by seven per cent in emerging G20 countries. And globally, the number of workers in extreme poverty stands at over 300 million.

Labour market challenges are compounded by technological, climate and demographic change. However, the idea of skills and lifelong learning being a means to achieve inclusive growth and decent work is gaining acceptance.

Enhanced skills development systems should allow people to embrace and adapt to technological change, facilitating dynamic learning over the life cycle so that people keep pace with digitalization and other factors of change.

Much hard work lies ahead in terms of social protection, a priority of the

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Argentinian presidency: only 29 per cent of the global population enjoys access to comprehensive social security while the other 71 per cent, or 5.2 billion people, are not, or only partially, protected.

Contributory social protection schemes need to be better adapted to labour market characteristics, particularly to the increasing number of workers in nonstandard forms of employment, including those in the platform economy. Such schemes should also be open to workers in informal employment. The latter group is particularly important for emerging G20 countries, where informal employment remains stagnant at 47 per cent.

The ILO, as an international organizations with observer status, has, for many years, provided technical inputs to facilitate the G20’s ongoing work, particularly in the Employment Working Group (EWG). Under the Argentine presidency, the ILO has

had the opportunity to deepen and expand its collaboration across several work streams. The ILO’s own Future of Work Centenary Initiative, including the ongoing work of its Global Commission, has enabled it to provide inputs for one of the presidency’s major themes.

In addition, the ILO has assisted the presidency in providing basic data on the situation in developing countries and has contributed to its goal of achieving policy coherence across several work streams.

The EWG has taken the future of work as its overarching theme. Priority areas are 1) promoting skills and lifelong learning for inclusive growth and decent work; 2) strengthening social protection for the future of work; and 3) promoting labour formalization and decent work. Social dialogue, gender equality, and disability inclusion are cross-cutting themes.

Argentina has stressed the importance of working across ministries to accomplish

G20 goals. As one reflection of that commitment, Argentina held a joint meeting of Education and Employment Ministers in September 2018. The ILO, with the OECD, submitted papers for this meeting on skills and lifelong learning.

Similarly, in the climate sustainability track of the G20, the ILO has emphasized the importance of a just transition to a green economy for both enterprises and workers, in order to achieve inclusive growth and ensure that job losses in carbon intensive industries are offset by the creation of new jobs.

Argentina is now working with the G20 Sherpas to build the Leaders’ Communiqué. When they come together for the G20 Summit in November, it will be essential for Leaders to re-emphasize the importance of inclusive labour markets in reducing inequality and achieving fair and sustainable growth, as the world prepares for the future world of work. ■ 81

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THE FUTURE OF WORK, TECHNOLOGICAL CHANGE AND GLOBAL INEQUALITY

ANDREW NORTON Director, International Institute for Environment and Development

The world of work is experiencing dramatic disruption from accelerating technological change on a global scale. In richer countries evidence suggests that increasing automation is not leading to the ‘end of work’, but rather contributing to stagnating living standards for most people and growing disempowerment in the workplace.

For developing countries impacts arise from changing disparities of wealth and income between countries – and between people within those countries.

So, in what ways is rapid technological change affecting inequality and what emerging solutions can we identify?

Global inequality Many Asian countries have pursued rapid growth through manufacturing goods for export to rich country consumer markets. Automation will erode this pathway, as low labour costs become less important for manufacturing. Increasing automation in textile manufacturing, which has expanded opportunities for women in many developing countries, will have negative impacts on gender equality. And for Africa, with a high youth population, not being able to capitalise on low-

cost labour to attract manufacturing investment is particularly concerning.

Developing countries can also be affected by political change in developed countries. The erosion of people’s sense of identity and security in the world of work can lead to rising nationalism and xenophobia. This tends to reduce tolerance of migration, public support for aid and openness to imports, as well as undermining support for tackling global challenges like climate change.

Inequality at the national level Inequality within countries can also be exacerbated by rapid changes in the world of work. Technological advances tend to increase returns to capital (the owners of the machines) and decrease returns to workers. And digital technologies provide a huge boost to

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highly skilled workers’ productivity in some sectors, leading to lower demand for the less skilled.

How technological change plays out in agriculture will be critical for the progress of inequality in poor countries.

If automation enables agri-business to develop more profitable capital-intensive business models, the asset base of poor households may increasingly be at risk from commercial land acquisition.

Technological change affects people’s working conditions as well as the nature of their work, particularly through digital platforms that are transforming both local labour markets (taxi rides) and global ones (accounting services). This can undermine labour protections and living standards, and lead to increasing insecurity and isolation for workers in the digital economy.

Opportunities But technological change also brings opportunities for inclusive and sustainable development. Developing countries can leap frog out-dated technologies, whether through pioneering innovative uses of information technology, or avoiding being locked into the use of fossil fuels in energy and transport. Kenyan businesses, for example, pioneered the use of mobile money with many benefits including helping migrant labour remittances reach intended recipients reliably.

While poor countries stand to lose access to rich country markets as industrial production gets ‘re-shored’, global digital platforms for services such as accountancy and copy-writing might enable workers in developing countries to directly access work opportunities in developed countries.

Emerging solutions None of this is inevitable. Policies and politics can also determine the outcomes of technological change.

Education policies can ensure that people throughout the workforce have the skills they need to cope with rapid change. These skills are not only technical. Automation will not do away with jobs which require human creativity, empathy and communication. There will also be opportunities to draw on digital technology to improve access to the highest quality of education on a global scale.

Developing countries will need to build on their economies’ strengths as the industrialisation route to growth becomes harder to achieve. This will mean making the most of their assets – whether in terms of abundant ⊲ 83

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natural capital or an informal sector with many dynamic small-scale entrepreneurs. In agriculture, if family farms can access micro technologies such as drip irrigation and drones then their productivity can match new highly automated agribusiness models that will quickly spread from the north to the south. Without such efforts

countries may not just lose their smallholder farmers, but also the bulk of rural livelihoods.

Social protection schemes will have to support people as they manage the resulting life changes. Public works schemes such as India’s Mahatma Gandhi National Rural Employment Guarantee Act can enhance incomes

of the vulnerable while building local infrastructure. Recent work by IIED shows how this scheme also works to preserve the local environment and can enhance resilience of poor households to the impacts of climate change.

While the new global digital economy will create opportunities for flexible working through on-demand platforms, without regulation or effective collective action by workers there is a risk of a race to the bottom in pay rates, eroding possible benefits to workers in the new global digital economy. This will be one of the key challenges for workers and governments if rising inequality is to be avoided.

Many policies that will be needed depend on a sustainable tax base.

This will be challenged by technological change, including new mediums of exchange such as crypto-currencies created independently of governments.

Technological change can create economies that are more sustainable and inclusive. But this will not happen without effort and action. To realise the promise we will need citizens who can demand a future that works for all and are properly equipped to engage with a changing world of work, politics and policy. â–

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THE KEY LIES IN USING DIGITAL TECHNOLOGIES TO SOLVE ENTREPRENEURIAL CHALLENGES THAT IMPACT VERY FAST IN THE BUSINESS What does Industry 4.0 mean for TECNALIA? It’s a new reference model for competitiveness and digital transformation of industrial companies.

We have a multi-disciplinary team with over 300 people to display this model. This team combines industrial competences and digital knowledge to guarantee the effective deployment of initiatives with a true impact.

AGUSTÍN J. SÁENZ Director of Industry and Transport of TECNALIA

TECNALIA is a benchmark Research and Technological Development Centre in Europe with 1,400 experts, focused on transforming technology into GDP. Agustín J. Sáenz, Director of Industry and Transport and member of the B20 Industry 4.0 group, points to some of the keys to the implementation of 4.0 strategies.

their processes, etc. However, not all challenges are digital, more efficient processes in the consumption of materials are also relevant. Without forgetting improved human-machine interaction that is more intuitive, multimedia and flexible. But the greatest challenge is to make everything have an impact on the Income Statement.

How do you forecast which technologies will have a greater impact on business?

We have researchers who analyse our specialisation within 3 years time.

They delve into technologies, but focus especially on future entrepreneurial needs. Companies detect problems, but struggle to find the most appropriate technologies. We have the ability to solve these future challenges by means of technological solutions.

In this path towards digitalisation, what are the main technological challenges in TECNALIA’s opinion?

The technologies showing greater impact are artificial intelligence, big data, cloud computing, IoT, flexible robotics, real-time process simulation, and artificial and augmented vision.

Our challenge is to integrate them in a smart way in order to reach companies efficiently, and achieving an impact on their results, as soon as possible.

How would you define the industrial challenges in terms of digital transformation?

The industrial world faces challenges related to sensorisation, massive data management, AI, precise mathematical models that simulate machines and

Why TECNALIA? Because of our deep knowledge of the industry, the sectors we operate in, industrial processes and the most relevant problems that are applicable to the digital sphere where it may have an impact on the Income Statement of our customers. ■ 85

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INNOVATION & WORK

UNLEASHING POTENTIAL:

HOW ENLIGHTENED LEADERS TACKLE THE WORLD’S MOST PRESSING CHALLENGES

DR. CHRISTIAN BUSCH London School of Economics

The role of leadership is changing, and that’s good news for future generations. Throughout 2017 and 2018, Leaders on Purpose – an international, cross-sector collaborative – has conducted a research study focused on how fifteen top Fortune 500 CEOs make their organizations fit for the future. In this process, we have uncovered innovative strategies that promote both responsible business growth and planetary wellbeing. We

CHRISTA GYORI Leaders on Purpose/ Harvard University

have also found a consistent correlation between the leaders that are getting ahead in these efforts and a suite of new leadership approaches and strategies – three in particular:

MAYA BRAHMAM World Bank Group

Serving the Wider Stakeholder Ecosystem The ratification of the Sustainable Development Goals (SDGs) by governments of 193 countries points to both a significant opportunity and

As employees experience what it is like to work in a company that enables a good idea to come from anywhere with maximum agility, they respond with increased levels of engagement, retention and performance.

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a fundamental shift in the business landscape. As these countries implement policies and incentives meant to support the successful achievement of these goals, they will look to the business community to play a significant role. Two organizations accepting this challenge are Sodexo and Ab-Inbev. Following the end of a 50-year conflict in 2016, the Colombian government signed a peace agreement with rebel FARC forces. Columbia’s National Sustainable Development Plan includes a reform program focusing on three primary areas: peace, education, and equity. Sodexo and AB-InBev work with the government, local farmers, and the FARC in rebuilding peace in the area, for example, by introducing barley as commercial crop.

Our study found that many CEOs do not go through this process alone.

Instead, they embed their organizations in relevant ecosystems of public and private partnerships and build on the SDGs as a common denominator connecting and coordinating diverse stakeholders.

Creating a Culture of Purpose Embedding purpose within an organization is not simply an act of charity.

In our increasingly networked age, it is a defining principle that drives the business forward. Companies such as Siemens introduce “ownership cultures” wherein equity ownership goes hand in hand with the development of cutting edge skillsets.

Employees that choose to engage with technological and strategic innovation are allowed to share in organizational profits and benefit from the growth that they have helped to achieve.

Our study also shows that CEOs engage heavily in communication in order to sustain and promote their cultures of collaboration. They use message carriers to spread the word around the globe, embedding purpose and strategy in every business function.

Their key goal: to incent purpose driven behaviour.

get there and fostering the necessary agility to do so. By promoting a culture of engaged-purpose, leaders can help employees move with more agility through the life cycle of new projects and initiatives. This activates a dynamic balance of traditional hierarchical processes, designed for scaling, accountability and execution with new adaptive non-hierarchical processes designed for fostering engagement, collaboration and creativity. Gone are the days of these different modalities being considered oppositional. As DSM’s Feike Sijbesma told us, “you need both”.

Many leaders are adding new leadership functions to their role, such as fostering psychological safety, reducing fear of failure, activating collaborative group processes, and optimizing group intelligence. As employees experience what it is like to work in a company that enables a good idea to come from anywhere with maximum agility, they respond with increased levels of engagement, retention and performance.

As our year long study comes to a close, the Leaders and Purpose team has much to reflect on and analyze.

We are particularly interested in digging deeper into the most unique and surprising insights we have culled.

This commitment is informed by the very CEOs we have studied. One of the most surprising things we discovered is how receptive purpose-driven leaders are to gleaning unforeseen insights. The CEOs we interviewed all delight in fostering cultures where serendipity and sense making spontaneously emerge.

By celebrating the art of the unexpected, they promote innovation and secure long lasting organizational success. ■

We thank Brad Gyori, Jill Juergensen, Kelsey Beuning, Nicole Bellisle and Viviana Jimenez for research and editing support.

TATJANA KAZAKOVA Horvath & Partners

LEITH SHARP Harvard University

Developing Organizational Agility The third key finding that surfaced from our study is that there is a strong connection between purpose and agility.

The leaders we interviewed say that knowing the right direction – their north star – is only half of the challenge. The other half involves discerning how to 87

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LARGE-SCALE INFRASTRUCTURE AND DEVELOPMENT

MICHEL SUDARSKIS Secretary General, International Urban Development Association

A coherent infrastructure policy is a central factor in the global economy – delivering the urban built environment and social infrastructure for communities and thereby enabling all other economic activity.

Construction alone contributes about 6% to global GDP and is also the number one consumer of raw materials.

Traditionally, the sector has seen little technological advancement and is substantially lagging behind other industries in terms of productivity.

At the same time various global megatrends, such as climate change, rapid urbanization, the infrastructure gap of more than $1 trillion and the bleak performance in delivering megaprojects, challenge the status quo and provide a strong call for action.

The Industry is Transforming New developments and disruption are currently reshaping the construction industry – from digital technologies to new construction methods and processes that boost productivity and enhance efficiency; however, the main challenge is finance.

To keep pace with population growth (+25% by 2040) and expansion of the

middle classes, far-reaching development in infrastructure, including upgrading and mass urbanisation, is needed.

Many countries in the global South are catapulting economic development by accelerating infrastructure projects like fast intercity-train, MRT, LRT, tollroads, sea-tolls (hub-spoke ports), airports, dams… This is to increase the connectivity locally, regionally and internationally and to lay the foundation for industrial estates, integrated tourism resorts, and massive urban development. The downstream projects include New Towns, LRT cities, aeropolis, integrated tourism development area, smart and resilient cities, one million housing programmes, etc.

Maintaining and replacing current infrastructure, while tapping into funding sources for expensive new projects, is a daunting challenge for City Council and administration. Every City maintains its infrastructure assets to protect its investment; but the job is becoming increasingly difficult. The average age of infrastructure is over 30 years and their average life expectancy is 50. To meet the demand for new infrastructure, while ensuring that existing one remains safe and reliable to maintain service levels,

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every City requires significant investment to renew or replace deteriorating assets.

This surge in infrastructure spending encouraging urbanisation is linked to the political will to boost economic prospects as possible and underpin growth through job creation.

Large-scale urban development seems to be an almost accidental consequence of this infrastructure surge, and several governmental actors like State-owned enterprises and the local governments have placed the onus on public construction companies to build the infrastructure and the urban components together.

There seems to be a lack of clarification of the role of other stakeholders like private sector, industrialists, foreign-enterprises or NGO’s in this overwhelming task of developing the huge programme rising from this massive infrastructure investment.

Separately and almost accidentally the private investors have reacted positively to the increased pace of making more and more land ‘within reach’ or available for development with very large-scale real estate programmes.

It seems that both the public and the

private sector may overestimate their capacity to carry such mega projects.

Infrastructures are not profitable if they are not integrated in a project that expresses a convergence of interests and will of the actors; isolated operations in a globalized world have no future.

Infrastructure impacts urban equilibrium: It attenuates or accentuates certain dysfunctions: social mix, urban congestion, access and supply of leisure spaces, etc. Cities are searching a variety of innovative asset management tools to ensure that limited capital resources are wisely invested. However, the focus has shifted to developing solutions; finding innovative ways to maintain and replace existing infrastructure while dealing with increased demands to support growth.

Innovation can help reducing the cost of infrastructure while improving the quality and range of services to the population.

The management of this “balance” implies the capacity and the vigilance of the local government to ensure the necessary regulation that cannot be achieved without planning and finance mechanisms, at the level of the regional or metropolitan urban system and at the lower levels. The ideal being that the main public and private actors coconstruct their regulation mechanism.

The G20 should voice the many unsaid concerns about future infrastructure, innovation and territorial development and indicate the way forward. Many countries do not have anymore a tradition of strong centrally controlled planning but seems to overrate the power of the quasi-public enterprises to enact large-scale urban & industrial development. A good time for the G20 to make a meaningful intervention, if not a disruption. ■ 89

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FINTECH: WHAT IS THE PROMISE FOR FINANCIAL INCLUSION?

ALFRED HANNIG Executive Director of the Alliance for Financial Inclusion

Around the world, emerging financial technology companies (FinTechs) are disrupting the finance industry.

They affect how we save, borrow, make payments and transfer money, both domestically and internationally.

They can better address customer needs through enhanced accessibility, convenience and tailored products.

This impressive success of FinTechs also holds promise for financial inclusion in developing and emerging economies.

To get a fuller picture, we must examine the varied bundle of outcomes, including risks, that may emanate from this potential.

The conventional roles of regulators are being challenged. As they are not traditionally in direct contact with emerging technological innovations, the sheer speed and complexity of financial digitization can trigger cautious initial reactions.

Learning is therefore key.

Regulators in developed economies e.g., the UK Financial Credit Authority (FCA) have established regulatory sandbox environments, as have an increasing number of central banks and financial regulators from emerging economies such as Malaysia, Mexico,

and Thailand. This facilitates learning among regulators and the industry, and enables isolated, risk-neutral pilot-testing of regulatory responses to FinTech.

Cooperation is key to reap the full benefits of FinTech, including benefits for regulators. As Christine Lagarde, the IMF Managing Director, noted in 2017, dialogue is needed among experienced regulators, ones new to FinTech, investors, policymakers, FinTechs themselves and governments.

For further understanding, decadeold research refers us to additive and transformative models of technologyenabled financial service delivery.

Additive solutions made the mobile phone merely another channel to an existing bank account. With transformative models, the financial product provided through the mobile phone was targeted at the unbanked.

Many current FinTech innovations are additive in the above sense. At AFI, we go further and ask: which are potentially transformative? Which can successfully address access and usage for the two billion people who are still completely outside the formal financial system?

An essential first step is to build a knowledge base with information on

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The additional resources and inputs are, in principle, welcome. Equally important are rationalization and coordination of support activities to preserve the neutrality of regulatory approaches. This will also help prevent confusion among potential beneficiaries, duplication of efforts and overlapping work streams.

Some key elements are emerging with regard to regulatory balance:

Support for policymakers and regulators to create conducive regulatory frameworks and supervisory mechanisms for FinTechs is widely available in an increasingly overcrowded financial inclusion space. experience with transformative FinTech.

This way, policymakers and regulators can educate themselves about solutions that make a real difference for the unbanked.

With FinTech for financial inclusion, the regulatory landscape becomes more complex. New risks will arise, including unfair lending practices and increased systemic vulnerabilities due to cybersecurity threats. With fast-moving FinTechs interlinked with thriving e-commerce, household debt could grow, bringing demand faster into regulatory focus.

If effectively supervised, FinTech can strengthen financial stability and integrity by broadening the deposit base. Digital financial services are an important channel for this. Likewise – as has been recognized by the Financial Action Task Force (FATF) – financial inclusion can reduce the volume of unseen transactions taking

place in the gray economy, such as money laundering and the financing of terrorists.

This landscape means that financial regulators will need to balance their traditional regulatory oversight with the development of highly competitive markets, while enabling transformative FinTech. With more actors, come more roles, competencies and appropriate funding among in-country implementers, development partners, agencies and projects, industry groupings, privatesector players, consulting companies, research institutions and funders.

Support for policymakers and regulators to create conducive regulatory frameworks and supervisory mechanisms for FinTechs is widely available in an increasingly overcrowded financial inclusion space.

Amidst all this, who does what in the future becomes more contested than ever before.

1. Creating opportunities to build a knowledge repository for financial regulators, focusing on transformative FinTech.

2. Enabling test-and-learn approaches on the country level.

3. Collaborating with global Standard Setting Bodies and experts and providing additional regulatory guidance originating from practical examples on risk proportionality and peer learning efforts among regulators.

4. Facilitating peer learning, knowledge sharing and capacity building to upscale awareness in the regulatory space. This can be done by implementing key policy enablers to reinforce digital financial services.

Knowledge sharing should include lessons on effective approaches for balancing financial innovations with other key public policies of financial stability and financial inclusion.

5. Incorporating FinTech into National Financial Inclusion Strategies with facilitated collaboration among regulators.

6. Enhancing Public Private Dialogue (PPD) and global dialogue with the private sector, technology companies, researchers, development partners, and regulators from developed and developing economies to enhance mutual understanding of FinTech innovations’ risk profiles, their role in financial inclusion and their contribution to solutions to strengthen compliance to international standards.

This preliminary agenda is not exhaustive, nor does it offer a universally-applicable solution.

It can, instead, be seen as one way to reduce complexity and make FinTech truly transformative yet still tangible for regulators who see financial inclusion as part of their stability mandate. ■ 91

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PORTUGAL: TRAVEL STARTUP HUB VISIT PORTUGAL www.visitportugal.com

Being an entrepreneur means having the tenacity, the perseverance, to transform an idea into a business even when, from the outset, not all the needed resources are in place to do so.

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In an environment of global competition within the travel and tourism sector, the ability of destinations and companies to reinvent and improve their competitiveness is crucial to ensuring their success.

The competitiveness of business activities, and tourism in particular, depends especially on new ideas, to make things different and better. Therefore, the momentum of the entrepreneurial sector is an essential factor for the competitiveness of national tourism.

Today, entrepreneurship and innovation are two decisive drivers in the success of any industry. Entrepreneurship is, nowadays, a decisive economic force in creating employment, both in emerging and advanced economies.

Being an entrepreneur means having the tenacity, the perseverance, to transform an idea into a business even when, from the outset, not all the needed resources are in place to do so.

Tourism offers a vast field for entrepreneurial activities. In the competitive environment we see today in this sector, the biggest challenge that motivates entrepreneurs is the constant improvement of the ability to attract and retain clients.

These challenges exist all throughout the value chain. They include the need to systematically reinvent the experience at the destination and involve the solution of complex problems of interoperability between information systems and business platforms.

Entrepreneurship is a factor in the renewal of the tourism offer, the creator of qualified and geographically distributed employment. But from a global perspective, the technological sector of tourism is also important, not only because it enhances the development of our tourism competitiveness, but also because it projects our ability to export knowledge.

Even if it is primarily a spontaneous process, the importance of entrepreneurship requires the development of active public policies that favour its development.

In order to support its growth, it is necessary to act with concerted effort in three areas:

The first relates to favouring the creation of entrepreneurship ecosystems, communities formed by entrepreneurs, investors and mentors who gather knowledge and experience and enable the combination of small ideas to create bigger ones, who help so that not everyone makes the same mistakes, who mobilise knowledge so that first steps can be taken.

A second area is the creation of conditions for access to capital.

Fast access, and in conditions that are advantageous for financing instruments, including private investment, especially in the form of risk capital, may mean the difference between the success or failure of these initiatives.

Finally, a third area pertains to the need to develop an entrepreneurial culture. Portugal is an entrepreneurial country. It is essential, especially in the system of education and training, that a framework is developed that promotes this innate ability and gives it an operational perspective.

This approach will encourage innovation in the Portuguese tourism sector, while also promoting a more sustainable management of the tourism development process in Portugal, improving the quality of service provided to tourists and contributing to a more efficient management of resources.

Following Government guidelines, Turismo de Portugal (Tourism of Portugal) launched the Tourism 4.0 programme, which seeks to promote innovation in the Tourism value chain, supporting the development of new business ideas,

the development and experimentation of projects and the stimulation of an entrepreneurial culture in the sector, supported by financial incentives that create new and innovative tourism services.

Within this context, a national protocol was established with more than three dozen incubators from all over the country and a â‚Ź1 million investment, creating the necessary conditions to incubate startups and develop new business ideas related to the tourism sector.

Today, we have more than a dozen acceleration programmes underway throughout the country, developed by a network of acceleration and incubation structures that support the creation and development of new tourism projects.

These programmes involve more than 340 startups that develop projects in the areas of consumer technologies, new services, new business models and new management support tools.

Also within the context of the Tourism 4.0 programme, the foundation is currently being laid for the creation of a Centre of Tourism Innovation, both as a vehicle for supporting the digital transformation of the sector as well as its establishment as a global innovation hub.

NEST – Centre for Tourism Innovation will have as its mission to promote innovation in the Tourism value chain, supporting the development of new business ideas, the development and experimentation of projects and the empowerment of companies in the areas of innovation and the digital economy. ■93

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FOOD, AGRICULTURE & WATER

DECLARATION

G20 MEETING OF AGRICULTURE MINISTERS 27-28 JULY 2018, BUENOS AIRES, ARGENTINA We, the G20 Ministers of Agriculture, highlight our countries’ central role in the global food system, representing about 60 percent of all agricultural land and about 80 percent of world trade in agricultural products. We acknowledge that this entails the great responsibility to actively contribute to enhance global food security and improve nutrition by increasing agricultural productivity and incomes, while fostering the sustainable management of natural resources.

We recall the 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs) as a milestone towards global sustainable

development and a valuable framework for collective action. We are aware that the fight against the scourge of hunger and malnutrition in all its forms can only be addressed collaboratively, by sharing our views and experiences on the matter, coordinating actions and joining efforts of all national and international actors.

We, the G20 Agriculture Ministers, while strengthening adaptive capacity of food systems, agree that agriculture contributes to addressing global challenges such as a changing climate.

In that regard, we recall the respective commitments taken by the leaders at the G20 meeting in Hamburg Sustainable Food Future We are concerned that, after many years of decline, global hunger increased in 2016 and now affects 815 million of the world population, and that about 2 billion people suffer from micronutrient-deficiencies. We are committed to work collaboratively.

We note that hunger and malnutrition have multiple causes, and that many of these challenges transcend national borders. We are committed to strengthening the international mechanisms we have created to jointly

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We, the G20 Agriculture Ministers, while strengthening adaptive capacity of food systems, agree that agriculture contributes to addressing global challenges such as a changing climate. and collaboratively achieve the goal of a world free of hunger and malnutrition in all its forms, address the challenges of food security and nutrition and take into consideration the Voluntary Guidelines to support the Progressive Realization of the Right to Adequate Food in the context of national food security and the relevant work of the Committee on World Food Security.

We acknowledge that family farmers, smallholders, women and young people living in rural areas are important actors in the fight against food insecurity and malnutrition in all its forms.

We recognize that agricultural development, investment and trade, as well as the use of improved technologies, have been essential drivers of human progress in recent decades and of the improvement in the living conditions of millions of people around the world. As a result,

we highlight the importance of both encouraging the use of innovative agricultural practices and technologies that improve the productivity and sustainability of agriculture, as well as efficiently bringing such innovations to farmers and the global marketplace.

We recognize that the increasing frequency and intensity of extreme weather events and their impacts on agriculture call for an integrated approach to risk management. In this regard, we acknowledge the contribution brought by the G-20-initiated Platform for Agricultural Risk Management (PARM) to the agenda of promoting holistic approaches to risk assessment and risk management in the agriculture sector and we encourage the G20 Agricultural Chief Scientists (MACS) to give scientific contribution for improving the available risk assessments and management tools for possible further decisions.

We believe that the challenges of achieving food security and nutrition and promoting sustainable agriculture in a changing climate and biosphere, can and must be addressed jointly and collaboratively. We will promote sustainable agriculture and the fight against climate change through collaborative partnerships, encouraging interdisciplinary approaches and involving farmers in the co-development and evaluation of sustainable agriculture systems, to accelerate the adoption of new technologies and management practices, and to revitalize sustainable traditional farming systems.

Healthy Soils We stand by our responsibility to protect soils, water and biodiversity against degradation, loss and pollution.

Therefore, we recall that healthy soils are an essential resource, and have a key role in food production, reduction of impacts of frequent and extreme weather events, and deliver essential ecosystem services.

We are aware that soil and riverbanks degradation and loss of fertile agricultural land, increase our societies’ vulnerability, and these are expected to continue to increase in several regions. ⊲ 95

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FOOD, AGRICULTURE & WATER

We emphasize the importance of developing and enhancing actions at different levels, including appropriate frameworks, to stimulate national policies to promote soil health, soil carbon sequestration, degraded soil restoration and use of soils in a sustainable manner.

We undertake to continue the strengthening of institutions that promote soil health, in multiple dimensions and approaches, and coordinate actions and initiatives among them We recognize that some segments of the bioeconomy have an impact on land, soils and associated biological processes.

However, the bioeconomy based on the responsible use of natural resources and the conversion of agricultural waste streams into value added products, has the potential to significantly contribute to achieving food security and, furthermore, it can be effectively used to develop rural spaces and economies, and to meet ambitious environmental goals.

We acknowledge that land-use management, and secure land tenure, are valuable tools for sustainable soil management. Loss of agricultural land, including soil sealing, due to urban expansion, and infrastructure development, which is often carried out at the expense

of fertile agricultural soil, can be a threat to potential agricultural production, and its associated ecosystem services.

Information & Communication Technologies (ICTs) We reaffirm that the rapid and constant growth of ICTs and their applications in agriculture contribute to agricultural productivity and profitability, food security and nutrition and to promote sustainable agriculture. We concur on the need to continue G20 discussions, as initiated by the Chinese Presidency and carried forward by the German Presidency, on their potential opportunities and impacts, particularly on women and small and family holders, addressing scientific and technological issues, as well as institutional, commercial and trade-related aspects.

We note that the current flood of data and information suggests the need to balance the Big Data and Smart Analytics approaches, as well as the promotion of skilled farmers and professionals capable of interpreting data streams.

We emphasize the need to promote academic, scientific and technological activities, and foster interdisciplinary experience exchanges at institutions and cooperatives.

We support interdisciplinary collaboration and inter-institutional arrangements on innovation in agricultural ICTs, fostering discussions, knowledge and views exchange to enhance agricultural ICT application.

Food Loss and Waste We reaffirm that this issue requires a comprehensive food systems approach, covering all levels of the agri-food value chains, from production in the field, through harvest and postharvest, and up to the consumer level; including prevention and awareness-raising in order to reach sustainable food systems.

We will increase efforts to engage with the private sector in making the investments and developing the technologies and best practices needed to enhance productivity, efficiency and sustainability in food value chains.

We call to emphasize the role of the Technical Platform on the Measurement and Reduction of Food Loss and Waste launched under the Turkish G20 Presidency We support the concept for an International Day of Awareness of Food Loss and Waste, as a special observance of United Nations.

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We reaffirm that the rapid and constant growth of ICTs and their applications in agriculture contribute to agricultural productivity and profitability, food security and nutrition.

Trade, Investment and Transparency of Agricultural Markets We recognize the importance of an open and transparent multilateral trading system, based on rules as agreed by WTO members.

We are concerned about the increasing use of protectionist non-tariff measures, inconsistently with WTO rules.

We recognize the importance of responsible investment through the application of internationally accepted principles and good practices.

We recognize that regional and global agricultural and food value chains play an production and generating income and decent employment, promoting development in a more equitable and inclusive manner. In this context, we recognize the importance to promote the dynamism of rural areas, through all possible tools, including for instance agri-tourism.

To promote transparency in global food markets, we confirm our commitment to strengthen the Agricultural Market Information System (AMIS), which should further evolve and also consider exploring the monitoring of food trade junctures that are important to international trade.

We undertake to continue support for GEOGLAM’s activities on enhancing national and global agricultural monitoring using earth observations.

We recognize this as amongst the key mechanisms to promote transparent markets and food security.

Antimicrobial Resistance (AMR) We emphasize the importance of combating AMR in a “One Health” approach promoting access to affordable and quality antimicrobials, vaccines and diagnostics, based on well-developed national action plans.

1. To foster awareness of AMR through dissemination activities and the inclusion in educational curricula for all relevant professions, from initial levels to degree programs.

2. To encourage public-private cooperation, supporting the scientific community for the research and development of new antimicrobials as well as new technologies (e.g. rapid diagnostics, vaccines and alternative treatments) that help prevent infection and reduce inappropriate antimicrobial use.

3. To promote good practices, preventive measures and health care in order to reduce the need for and optimize the use of antimicrobials in agriculture while striving to restrict it to therapeutic use alone.

4. We call on FAO, OIE and WHO to collaborate to improve the prudent use of antimicrobials and on infection prevention to safeguard human and animal health (terrestrial and aquatic), our common food systems, and support scientific collaboration to address knowledge gaps regarding AMR in the environment, in cooperation with other institutions such as UNEP. ■ 97

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FOOD, AGRICULTURE & WATER

WHAT DECISION MAKERS NEED TO KNOW ABOUT WATER

BENEDITO BRAGA President World Water Council

If you are a decision maker in any sector attending G20 in Argentina, take a moment to think about water.

How does water shape the decisions you make? There is a great deal of data that links safe, reliable and accessible water with economic growth and development.

But this doesn’t happen through a single causal path – it happens through countless streams embedded in nearly every sector. Water is needed for crops to grow, for industries to run, for health burdens to be overcome, for students to learn, and much more.

Water Shapes Development With water being so central to so many development efforts, decision makers have directed investment into water resources for many years – indeed, throughout history. Yet water shortages, risks and inequalities demand as much action now as ever before. Both disparity and uncertainty cloud water’s future. At the same time, increasing demands on water resources are coming up against scarcity, pollution and a changing climate.

Adapting to climate change is a water question, too. Water is part of flooding, drought, ice melt and weather patterns, and it is singled out as a key concern

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We focus on the need for institutions, policies, financing, capacity and legal frameworks that can give form to the management of water resources in our planet’s multitude of local contexts. in more than 93% of the nationally determined climate contributions that governments have submitted to the UN. However, water shortages and floods, even when linked to climate change, often reveal problems that already exist: weak water resources management, governance or infrastructure. Improving these means improving resiliency; they prevent change from becoming disaster.

Therefore, I am especially encouraged by the Argentina G20 Presidency’s promotion of the systematic development of climate-sustainable infrastructure.

The new Climate Sustainability Working Group, under the Argentinian priority on Infrastructure for Development, is guiding the way to closing the infrastructure gap and enabling climate-ready, inclusive growth in G20 economies.

Water is Not a Sector, but a Connector Infrastructure concerns and climate concerns meet through water. This is not surprising; water has a way of bringing things together. It unites economy, society and the environment, and offers greater synergies with every voice that is brought into decision making. Human settlements, agriculture, industry, energy, transport, conservation: all benefit from water security. And all benefit from understanding that water security is not only a chance outcome of rainfall and snowmelt; it is determined by robust institutions, investment, regulatory frameworks and policies.

This can be seen in the design of multipurpose infrastructure that meets the demands of different water users. Such infrastructure offers immense synergies, and a large evidence base now exists on the multi-stakeholder processes of decision making that can produce it. What is required is investment. Water systems account for 15–30% of the trillion-dollar gap in annual infrastructure investment, and everyone who could benefit from better multipurpose infrastructure is paying the price.

This year the residents of Cape Town faced a water security crisis together,

in a highly developed city of a G20 country. Many other urban centers are water-vulnerable, and Cape Town will not be the last shocking example of severe urban shortages we will see. In fact, in Argentina and the rest of Latin America water security is very strongly connected to urbanization, and closing the water infrastructure gap will also mean perfecting the governance of urban water services. The stakes are high in the world’s thirsty cities.

We must Act Together for Water Security – and We Are All water problems and solutions are local.

Parts of Argentina, for instance, are under threat from the retreat of Andean glaciers, a complex phenomenon of a unique geography. Water security depends on such specific conditions, and on the needs of specific water users. Many decision makers have parts of this map – fine-grained data, local perspectives, or sectoral understanding. This is good, as long as we act together in full awareness of the ways water connects us.

The World Water Council exists to be a facilitator for this action, representing nearly 300 member institutions in 70 countries and many different sectors. We focus on the need for institutions, policies, financing, capacity and legal frameworks that can give form to the management of water resources in our planet’s multitude of local contexts. This March, we organized the 8th World Water Forum in Brazil, bringing together the world of water and mobilizing decision makers at the highest level. We also engage with global climate action as an observer to the UNFCCC, seeking opportunities for countries to mitigate and adapt to climate change through water.

Every member of the G20 is well aware of the uncertain times we face. But I am hopeful about the possibility of shared action. By keeping perspective on the basics of life – and nothing is more basic than water – we can make decisions that will make the most of our connectedness and ensure a future for all. ■ 99

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CLIMATE CHANGE & SUSTAINABILITY

ACCELERATING THE CLEAN ENERGY TRANSITION

ERIK SOLHEIM Head of UN Environment

Only months ago, the world’s biggest lithium battery kicked off a future of more stable and cheaper power in South Australia. In India, the southern state of Tamil Nadu is on track to generate more than half of its power from wind and solar well within the next 10 years.

Denmark is meanwhile sometimes producing more power from wind than it needs, while China is banking heavily on both wind and solar – accounting for close to 45 percent of the world’s new solar installations in 2017.

What is abundantly clear is that a future of almost limitless clean energy is perfectly feasible. In addition, this shift will not only bring about the kind of positive climate action we so desperately need to see. There are other positive externalities: the public health benefits of shifting from dirty fossil fuels, more and better paid jobs per dollar invested in renewables, and a level of energy security that could significantly ease global tensions.

Despite this enormous progress, it’s time for all of the G20 to step up action.

At the G20 meeting in 2017, global leaders recognized that they cannot go back, and that action on climate change is absolutely critical. While this has been a welcome step, we need to move

beyond the global framework, to actions that can help countries go well beyond national commitments.

Some of this is already happening.

France’s historic decision to end the sale of diesel and gasoline vehicles by 2040 is one such step. Brazil now has the second greatest number of jobs in the renewable energy space. But we need many more examples, and much more climate leadership to transform our planet.

The Argentinian G20 Presidency has identified three key areas of focus, energy efficiency, renewable energy and the reduction of fossil fuel subsidies. This could not come at a more opportune moment. G20 members consume over 80 percent of global energy and allocate four times more public funding to fossil fuels than to renewables energy. The G20 accounts for 93% of the world’s coal use.

This must change.

A recent OECD study has found that energy taxes in many OECD and G20 countries are far too low to help combat global warming. This means we are not enough to reduce energy use and dirty fuels, or to drive a shift towards greater energy efficiency.

We’re not thinking big enough, and the mere fact that we are still having

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China has embraced the philosophy of “Ecological Civilisation”, while India’s prime minister bluntly said it would be a “crime against future generations” not to act decisively now. discussions on whether to drill in the Artic or finance coal projects is wrong. In 2017, financing from G20 governments for overseas coal projects reached a five-year high. In contrast, financing was provided to only two solar farms. We are betting on the wrong kind of future.

The alternatives to drilling and digging more fossil fuels are already being played out by several G20 countries, and with great success. China has embraced the philosophy of “Ecological Civilisation”, while India’s prime minister bluntly said it would be a “crime against future generations” not to act decisively now.

Both nations are steering a path towards a green economy with greater sustainability.

And they’re doing so because it makes sound economic sense.

Perhaps the biggest threat facing the G20 is continued use of coal. I have heard a lot over the years about how coal is absolutely critical to providing millions of people electricity. But this is more myth

than truth. Energy for all is and must be a priority for every nation in the world.

But we must dispel the assumption that it is coal that will drive progress. This is because many of the people, communities and regions that remain without energy access are so because they are often remote or far-flung. Decentralized or offgrid renewable energy projects may in fact be the quickest and most effective way to bring these people on-line. A continued dependence on coal is a serious challenge to our ability to keep temperature increases below 2 degrees Celsius.

Much of the US$ 221 billion global market for energy efficiency investments is concentrated in large G20 nations.

The G20 has made remarkable progress on improving the energy intensity of its economies, but for us to make a dent in climate change, this must accelerate even more. Energy efficiency offers the group a tremendous opportunity, but it is not without its challenges. How do we

make users opt for the energy efficient choice, over the cheap option? Necessity is the mother of invention, and innovation is the result. And the biggest opportunity will be in the building sector.

On virtually every front the G20 has scripted success. G20 countries today account for an astounding 85 percent of the world’s GDP. People live better than ever before. The G20 has worked hard to successfully resurrect the global financial system after the economic crisis of 2009 and are living proof that we are stronger together than we are alone.

But it is also clear to G20 members that an unsustainable economy is no economy at all. Long-term energy security is a key concern. High levels of pollution and the public health costs that accompany it need to be higher on the agenda. The G20 needs to be in the driver’s seat – on innovating and developing technologies that will leapfrog the world into a low carbon growth path. This includes almost every area of opportunity from renewable energy storage to electric mobility and green buildings. The decisions that the G20 countries make, and the issues that they remain silent on, will have a huge impact on the wealth and fate of our planet. ■ 101

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ENERGY

WHY DIGITALISATION IS KEY TO THE ENERGY TRANSITION

DR. CHRISTOPH FREI Secretary General, World Energy Council

The energy world is undergoing a Grand Transition driven by a combination of factors including the increasing pressure for decarbonisation, the fast-paced development of new technologies, an unstoppable digital revolution, emerging physical and virtual risks and changing growth and demographic patterns.

Energy leaders face and are increasingly acknowledging disruptive change. The one thing above everything else that is keeping energy leaders awake at night globally is the impact of digitalisation on the future of the energy system. Industry leaders and policymakers across the globe are considering the impact of innovation with a mixture of excitement and unease.

The World Energy Council’s G20 Issues Monitor Map shows issues such as decentralisation, electric storage and blockchain technology are rapidly moving to the top on the list of CEO insomnia issues, while a more uncertain growth context and new physical and digital risks are posing ever greater threats to the energy sector.

Decentralised energy systems are becoming increasingly important to the global energy system, particularly in the context of the energy transition.

Key findings leveraging on interviews with global energy leaders analysed in our 2017 World Energy Trilemma report, show the share of decentralised energy systems will increase rapidly to a share of 15% or higher of installed generation capacities by 2025.

Energy storage, including batteries are becoming a key element of the grid of tomorrow, helping to enhance system efficiency and cost stability. Global energy storage capacity along with revenues from utility scale applications are expected to increase dramatically over the next 5 – 10 years.

The world in which the internet of things and blockchains will enable direct and low-cost transactions between parties and appliances is fast approaching, with at its core precisely recorded transactions in unfalsifiable ledgers that also open new

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Mobile technology with cloud support already today enable new financing models, such as micro-leasing schemes in the developing world and greater customer choice and control for all. possibilities for supply chain tracing and product labelling by fabrication origin, materials used or emissions caused.

A world where big data, machine learning, and artificial intelligence enable automated system analytics and instant demand response is very different from the analogue world where many leaders started their careers.

The next decade will begin to define the winners and losers of the energy transformation, making it crucial to understand the new realities for the energy sector now.

In a context provided by continued electrification of final demand – on transport, heat, and industrial energy demand – we will see greater diversity in types of actors and business models, enhanced system response capability through digitalisation, and more decentralisation and direct interactions between prosumers and devices enabled through technologies such as blockchain.

These new technologies not only change the way we operate the energy system but revolutionise the potential for a sharing and leasing economy

through new platform solutions, which will affect traditional business models in energy and change the way we think about supply-demand interaction. Mobile technology with cloud support already today enable new financing models, such as micro-leasing schemes in the developing world and greater customer choice and control for all.

In such a context of acclaimed technology democratisation and a changing energy system we must re-think the role of the state and of companies in ensuring access to secure, affordable and environmentally sustainable energy.

For infrastructure and system-critical companies the digital revolution doesn’t come for free: they face broader exposure to cyber risks due to greater number of digital entry points into the system and increased planning uncertainty resulting from lowering entry barriers for new players.

Addressing cyber risks in the energy sector is critical not only to global energy security, but is also vital for a resilient state and economy to avoid total collapse.

A rapid transition is underway.

Photovoltaic or digital and platform revolutions are witnesses of a new reality.

Adapting to this new reality, with new market players and business models will require a massive effort. However, global policymakers, business leaders, and governments need to plan for these transitions and anticipate its likely impact on energy systems and market actors.

If there is a digital rent to be harvested in the transitioning energy system it is vital that policymakers and energy leaders within the G20, among others, work towards greater energy policy cooperation. The goal of achieving a sustainable energy future critically depends on an internationally coordinated, collaborative, approach.

There is a real opportunity for the G20 Energy Transitions Working Group to promote and deliver greater energy policy cooperation with a focus on developing energy grids that are more flexible, transparent and clean as the world witnesses rapid digitalisation of energy markets. ■ 103

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ENERGY

EUROPE’S POWER SYSTEM 2040: COMPLETING THE MAP

LAURENT SCHMITT Secretary General ENTSO-E

What should the electricity grid look like in 2040 to create maximum value for Europeans, ensure continuous access to electricity and deliver on the climate agenda? What would be the cost of not having the right grid by 2040? These questions are at the heart of the work of our association, the European Network of Transmission System Operators for electricity (ENTSO-E). For the first time, we have tried to evaluate the cost of non-grid for Europe.

Our new report ‘European Power System 2040: completing the map” and the six associated regional analysis are aiming to deep dive as far as possible on these strategic questions for Europe.

These reports provide comprehensive quantitative assessments and qualitative analysis from TSO experts operating the European power system on a daily basis.

People who are at the heart of the power system and its changes.

While it originally was designed on the basis of centralised predictable generation assets ensuring steady power flows, Europe’s power system has progressively evolved to integrate more decentralised and variable renewable energy sources. Already today almost a third of the capacity of the power

generation mix is provided through variable renewables in Europe and European leaders have the objective to decarbonise their economy by 2050.

Renewables, particularly photovoltaics and wind onshore, have introduced new challenges for power system operation that have to orchestrate distributed, small scale generation assets scattered around their networks sometimes interacting through communities. The power networks that were built progressively in Europe since the early days of electricity have to adapt to this paradigm shift.

In fact, the European power system is evolving into an architecture where centralised and decentralised will co-exist, a new orchestrated System of Systems. The “fourth industrial revolution” is indeed increasing interfaces, interactions and transactions at every scale of the system and between systems.

New actors and new services are needed to optimise flexibility at local, national, regional, and European level.

New transactions will be made throughout the value chain. Power networks are best placed in orchestrating these new interactions and transactions.

The power networks are fundamental

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The analysis clearly demonstrates more interconnection and thus more capacity to exchange energy and support each other are today required to maintain European security of supply at least cost. in a transformation where sectors will need to further couple across electricity, gas, heating, transport and digital.

The power network will first need to be expanded with the necessary hardware infrastructure but also augmented through digitisation with new software apps to optimally flow competitive renewables from North to South of Europe, ultimately bridging offshore wind from Nordics with photovoltaics from Southern countries. The TSO community together with ENTSO-E is driving a programme to create the first

pan-European platform for a seamless exchange of data across European grid operators. The Common Grid Model is the flagship of our efforts in smartening our networks preparing them for a system of systems, enabling consistent grid capacity calculations across Europe.

The Cost of Non-Grid Europe Power System 2040: completing the map analyses for the first time the costs – financial but also environmental – of not investing in European power networks while keeping ambitious

decarbonation targets on generation.

The analysis clearly demonstrates more interconnection and thus more capacity to exchange energy and support each other are today required to maintain European security of supply at least cost.

Failing to invest in grids means exposing European citizens and companies to higher risk of disconnection.

On average, not building the necessary power links means that more than 150 terawatt/hour of green energy would go to waste each year as there would simply be no capacity to transport it. This is the equivalent to the forecast annual consumption of the Benelux in 2040.

This green energy gone to waste also means increased emissions by 2040.

Finally, the cost of non-grid adds up to more than 40 billion euros per year of extra costs due to lack of market integration; preventing cheap generation to reach where demand is the highest.

This is more than three times the cost of building all the lines and storage facilities foreseen in the pan-European grid development plan (the ENTSO-E 10-year network development plan) – which is estimated at 150 billion until 2030; that is +/ – 10 billion per year.

The released reports represent indeed the second of three stages of our ENTSO-E Ten-Year Network Development Plan 2018, the master plan for grid development in Europe. The TYNDPs serve as basis for the European Project of Common Interest process; an initiative from the EU to develop crossborder networks.

The TYNDP is built on scenarios that are largely co-created with stakeholders. To increase transparency and trigger debate, ENTSO-E is planning to launch towards the end of the year a report and a web platform – ENTSO-E PowerFacts Europe – as a one stop-shop for all data and analysis on the European power system transformation. We hope this will further foster constructive exchanges with all parts of society and facilitate development of new flexibility business models at the edge of our European power system.

Indeed, commitment of all is needed to make this ambitious, but needed for our quality of life, journey a success! ■ 105

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ENERGY

WHAT’S STALLING THE G20’S MOVE TO CLEAN ENERGY?

SCOTT VAUGHAN President and CEO, International Institute for Sustainable Development

R. ANDREAS KRAEMER Founder & Director Emeritus of Ecologic Institute, Berlin Momentum towards the transition to clean and low-carbon energy pathways is growing, in G20 countries and beyond. Many G20 countries have led world markets in renewable energy investments, notably China, Mexico and Australia.

Global investments in renewable energy add up to more than US$2 trillion, according to a new report from UN Environment and the Frankfurt Business School.

A record 157 gigawatts of renewable power–classified by the report as wind, solar, biomass and waste-to-energy, geothermal, marine and small hydro– were commissioned in the world’s electricity sector in 2017.

This transition matters in addressing climate change: just over 12 percent of the world’s electricity came from renewables last year, avoiding or displacing an estimated 1.8 gigatonnes of carbon dioxide (C02) emissions.

Last year, overall investment in renewable energy grew by roughly 2 percent, to nearly $280 billion. As the costs of renewable energies decrease rapidly, what appears to be modest growth is in fact a strong expansion of renewable generating capacity. These investment trends mean that renewable energy markets are growing much faster than conventional fossil fuels, by a rate of roughly two-to-one in overall investments.

There are various drivers behind this increase, led by a drop in the price of solar technology, which is now the lowestcost form of power generation across most of the world. Increased exploitation of other clean energy solutions such as geo-thermal and bioenergy at large scale have also been instrumental.

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Some of the growing momentum that stemmed from the release of the FSB task force report was on display last December at the One Planet Summit hosted by French President Emmanuel Macron.

In at least two fundamental ways, the G20 provided the underlying conditions for this accelerated growth: First, the G20 Finance and Central Bank Deputies adopted a proposal to launch a G20 Green Finance Study Group (GFSG). The remit of that group is to “identify institutional and market barriers to green finance” and identify options to accelerate green investments.

A central part of this mandate is environmental risk in general, and climate risk in particular. The GFSG committed to identify, and help quantify, different kinds of environmental risk.

Since their report was adopted, China – which made up roughly 45 percent of all global renewable energy investments in 2017 – has begun to implement the most ambitious, systematic approach to green finance, encompassing not only green bonds (for which it is a world leader) but also insurance, stock markets and other pillars of financial services.

Second, the June 2017 report of the Financial Stability Board (FSB) Task Force on Climate-related Financial Disclosures recommended that, because climate risk poses a material risk to financial markets in G20 countries, preparers of climate-related financial disclosures should provide such disclosures in their mainstream (public) annual financial filings.

Some of the growing momentum that stemmed from the release of the FSB task force report was on display last December at the One Planet Summit hosted by French President Emmanuel Macron. There, 225 investors – including many of the world’s biggest asset managers – pledged to put pressure on 100 of the most carbon-intensive companies – from oil and gas to aviation and consumer products–which together are responsible for nearly 85 per cent of global greenhouse gas emissions.

A list of the top greenhouse gas emitters was shared at the Paris

conference, meaning carbon polluting companies are being ‘named and shamed’ and squeezed on the one side from central bank regulators and on the other by big asset companies like Blackrock, Vanguard and others.

While these two G20 efforts continue to push markets towards low-carbon pathways, 2017 also reminded us of the unfinished agenda in tackling fossil fuel subsidies, and of the inertia that makes moving away from fossil fuels difficult.

Next year will mark a decade since G20 leaders met in Pittsburgh and promised to eliminate subsidies to fossil fuels. In that time, trillions of dollars in government budgets have been spent to subsidize fossil fuel production and consumption.

The continued pricing distortions that subsidies exert within energy markets are counterproductive. They not only weaken the fiscal position of governments by increasing deficits and debt, they also slow the energy transformation and thus delay climate action as well as the multiple benefits of the shift to clean energy.

Those benefits include not only improvements in public finance, but also improved public health from reduced air pollution, higher energy security and reduced total cost of energy supply, innovation and a renewable of capital stock, business and employment growth, rural development, and improved balances of trade and payment, notably countries that can reduce their imports of fossil energy commodities and products.

But realising these benefits needs governments across the G20 to plan and implement an energy transition. While a lack of pricing of local and global air pollution has hampered the ability of markets and investors to pick the clean options, a fear of economic shock and job losses in communities with strong reliance on fossil fuels hampers governments.

The recent Berlin Energy Transition Dialogue is one of a series of events and initiatives that have highlighted the fact that transition can be successful and that communities do not need to be left behind.

Exchanging experiences and lessons learned – both good and bad – can only help the G20. Common approaches and a commitment would be even better. ■ 107

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MEMBER COUNTRIES

CANADA

UNITED KINGDOM

Prime Minister JUSTIN TRUDEAU

Prime Minister THERESA MAY

USA

FRANCE

President DONALD TRUMP

President EMMANUEL MACRON

MEXICO

President ENRIQUE PEÑA NIETO

BRAZIL

President MICHEL TEMER ARGENTINA

President MAURICIO MACRI

108

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EU COMMISSION

EU COUNCIL

RUSSIA

President JEAN-CLAUDE JUNCKER

President DONALD TUSK

GERMANY President VLADIMIR PUTIN

CHINA

Chancellor ANGELA MERKEL ITALY

President XI JINPING

TURKEY

Prime Minister GIUSEPPE CONTE

SOUTH KOREA

JAPAN

President MOON JAE-IN

Prime Minister SHINZŌ ABE

President RECEP TAYYIP ERDOĞAN

SAUDI ARABIA

INDIA

INDONESIA

Prime Minister NARENDRA MODI

President JOKO WIDODO

King SALMAN

SOUTH AFRICA

AUSTRALIA

President CYRIL RAMAPHOSA

Prime Minister SCOTT MORRISON

109

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SPONSORS INDEX

30

AICEP Portugal Global

IFC

Aids Healthcare Foundation

36

Astra Zeneca

68

Islamic Corporation for the Development of the Private Sector (ICD)

14

Instituto Tecnolรณgico de Buenos Aires (ITBA)

62

Liechtenstein Bankers Association

52

Nespresso

42

Novartis

IBC

Prince Sultan Institute for Environmental, Water & Desert Research

85

TECNAILIA

92

Visit Portugal

110

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G20 - Argentina_IBC_Ad - PSIPW.indd 111

06/11/2018 17:11

G20 - Argentina_OBC_Ad - Aids Healthcare Foundation.indd 112

06/11/2018 17:12