Towards radical critique and action on climate change politics and Copenhagen 2009 via It's Getting Hot In Here
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Our way is the highway via CIPE Development Blog
The King Cobra is not the fastest snake, and it is not the biggest snake, but it just might be the most revered. The city of Nagercoil, at the southern tip of India, contains a temple to the King Cobra, worshipped as a deity. India’s new mascot might be the King Cobra. It is not the fastest growing economy, nor is it the biggest, and who doesn’t like Ghandi?
India’s newest metaphorical cobra is a 3,633 mile long highway connecting its four major population centers, Delhi; Kolkata; Mumbai; and Chennai. Dubbed the “Golden Quadrilateral (GQ)” by the Indian Government, officials expect it to stimulate further economic development in rural India, where 70 percent of India still live, by facilitating the movement of goods into and out of the country.
Combined with...
The Conventions are Coming…and CGD is Going! via Global Development: Views from the Center
Everyone says August in Washington, D.C. is quiet. That is of course, unless you are planning to attend the presidential conventions and from what I can tell, just about everyone is sending someone to the conventions. And this time around, CGD is going to both of them.
CGD President Nancy Birdsall and I are headed to Denver next week for the Democratic National Convention and to Minneapolis the following week for the Republican National Convention. While some may think we’re going for the parties (Kanye West? Willie Nelson? LeAnn Rimes? Rage Against the Machine?) we are not. There is actually a lot more going on related to global development at the conventions than one might expect.
For starters, the National Democratic Institute (NDI) and friends are hosting an... Congressional-World Bank Caucus Launched on the Hill via Global Development: Views from the Center
President Sarkozy’s Compassion for the Poor and Hungry via Global Development: Views from the Center
The political threats to globalisation via Governance Focus
If you had to define “globalisation” with an image, what would it be? A container ship from China stuffed with toys and T-shirts? A programmer tapping at a keyboard in Bangalore? A plane circling gloomily over Heathrow airport?Most people’s pictures of globalisation are to do with economics, technology and business. But before markets, modems and manufacturers could do their work, political changes had to take place. The foundations of the globalised business world are political – and so are the biggest threats to the system.The challenge to the globalisation consensus comes from below. Political elites in the US, Asia and Europe are struggling to convince citizens that globalisation is not just a game that benefits the rich. If the argument is lost in any of the major world...
Politics of Economics via CIPE Development Blog
Gideon Rachman has an interesting column in today’s FT on the “political threats to globalisation.” (registration required to read the whole column). His argument is quite simple, quite powerful, and quite troubling.
Globalization is not an economic phenomenon - as we’ve come to think of it - it is primarily political. As Rachman points out, it was the politics that drove the process forward - including China’s embrace of a more open economy, collapse of the Berlin wall, deregulation in the US and the UK in the 1980s, and move away from protectionism in India in the 1990s.
Yet, today, it is also politics that is driving globalisation back - and not only in developing countries, but in developed countries as well. Whether its the desire to protect...
International Finance Corporation and United Nations Release Study of Human Rights and Investment Contracts via Governance Focus
International Finance Corporation (IFC) and the United Nations Secretary-General's Special Representative on Business and Human Rights (SRSG), Professor John Ruggie of Harvard University, released today a consultation draft of the research paper they commissioned on foreign direct investments and human rights.This joint study aims to raise awareness of the relationship between the protection of investor rights and the host state's human rights obligations under international agreements. Specifically, it examined what, if any, impact stabilization clauses and similar risk allocation provisions in state contracts with foreign investors have on the host state’s ability to adopt and implement human rights laws and regulations in areas such as labor, non-discrimination, and protection of...
Wal-Mart aims for emission reductions from Chinese suppliers via Governance Focus
Wal-Mart is to meet with thousands of suppliers based in China in the autumn as part of its programme to reduce emissions produced across its supply chain. The company has already worked with some of its key western suppliers to reduce energy use and waste.Company CEO Lee Scott said that it would be working with non-governmental organisations (NGOs) to help its team of factory inspectors to fully understand the issues around sustainability and Wal-Mart's commitment in this area, and that its top priorities in China would be to focus on waste disposal and greenhouse gas emissions.See full...
Global economy - 2008 - Focus on the issues via Governance Focus
As predicted, global financial markets are beginning to see slowed growth in 2008 following several years of robust activity. Triggered in part by U.S. subprime housing woes and a weakening dollar, global GDP growth eased to 3.6 percent in 2007 from 3.9 percent in the preceding year. Advanced economies will likely see further slowing demand in 2008, although the decline is expected to be counterbalanced by continuing expansion in emerging markets such as China, India, Russia and the Persian Gulf.Deloitte member firm professionals are attuned to these changes and can help guide companies through the economic challenges in the year ahead. Contact us to learn more and the read related research and reports on this page.See full Press...
Changing The Rules For Auditors via Governance Focus
This is the era of the global corporation, whether in finance or industry. A company like Toyota or Citigroup may have its headquarters in one city, but it has operations all over the world and gets capital from a similarly broad base. When Citi ran into difficulties, it turned to Abu Dhabi.And then there is accounting.At first glance, it appears that there are a handful of global accounting firms - the Big Four and a couple of others - but that is not the reality.Those firms are formally organized as a series of partnerships, each of which relies for capital on its own partners, rather than on outside sources of capital. And while each may market itself as one big firm with worldwide capabilities, a very different view is presented when someone sues over a failed audit.Then the firms...
Reporters Without Borders has launched the first Online Free Expression Day today via Governance Focus
“From now on, we will organise activities every 12 March to condemn cyber-censorship throughout the world,” Reporters Without Borders said. “A response of this kind is needed to the growing tendency to crack down on bloggers and to close websites."“Today, the first time this day is being marked, we are giving all Internet users the opportunity to demonstrate in places were protests are not normally possible. We hope many will come and protest in virtual versions of Beijing’s Tiananmen Square, Cuba’s Revolution Square or on the streets of Rangoon, in Burma. At least 62 cyber-dissidents are currently imprisoned worldwide, while more than 2,600 websites, blogs or discussions forums were closed or made inaccessible in 2007.”See full...
Where Will All the Talent Come From? via Governance Focus
In today's multi-polar world, the war for talent has gone global. New technologies are transforming the nature of work, the skills demanded, the manner in which work is sourced globally and the ways in which people collaborate to perform processes and innovate. All these trends are making talent an ever-more critical and complex issue.What role does human capital play in global economic competitiveness, and what responsibility does a private enterprise have to invest in educating and supporting people from the community and culture in which it operates? These are perennial questions—and perennially vexing ones at that.On one side of the issue has been an attitude aptly summarized by the Quaker maxim that one "does well by doing good." That is, through giving one receives; through acts...
Building the future: the EU’s contribution to global governance via Governance Focus
To a large extent, the world to come depends on us. Political communities can respond to warnings and visions regarding their futures and organise themselves in order to shape and ‘improve’ those futures. The European integration process is a good example of a change of historical direction, marking a watershed between a past marred by devastating wars and a present characterised by common institutions and rules.This Chaillot Paper suggests that the next frontier in the future’s improvement process is global governance. Global challenges and opportunities call for concerted action. Individual states, including major - both old and emerging - powers cannot tackle challenges and exploit opportunities on their own. Therefore, new global agreements are needed to shape the future with a...
Businesses need help to operate globally say ICAEW via Governance Focus
Companies in the UK are continuing to embrace globalisation but smaller businesses need help from government in order to compete in the global marketplace, says the Institute of Chartered of Accountants in England & Wales (ICAEW). The appeal comes at the ICAEW’s annual policy summit taking place today which looks at the issue of globalisation.The ICAEW Enterprise survey revealed that 72% of companies had any global engagement whilst over half had customers outside the UK (56%) or secured services outside the UK (55%). This figure fell amongst smaller companies with only 41% of micro businesses and 62% of small businesses having global engagement. Less than a third (31%) of micro businesses have customer abroad and 38% of medium companies obtaining products and services from abroad.As...
You Are Only As Green As Your Supply Chain via Governance Focus
Years ago Herman Miller decided to become an advocate for the environment, both because we believed it was the right thing to do and because we saw the potential for a clear business benefit. Ever since, we've been refining our processes to put our aspirations into practice.Our Perfect Vision campaign, launched in 2003, includes green goals such as no landfill waste, no hazardous waste, no air or water emissions from manufacturing, and the use of 100% green energy, all by the year 2020. These are stringent targets our company cannot reach without engaging over 200 materials and components suppliers in the ongoing task of greening our global supply chain.As we've examined every aspect of our worldwide supply chain, we've learned one key lesson: A business, and the products it sells, can...
Ownership of Natural Resources via Governance Focus
People in low and medium GDP countries are especially supportive of governments, not companies, owning their natural resources.Where their country's natural resources are concerned, a majority of people surveyed prefer government ownership over private ownership of water, forests, and minerals. While only a few accept the argument that ownership does not really matter, over twice as many in the North as in the South think so-probably reflecting greater confidence in good governance in societies of the North.Citizens of the South are especially supportive of government ownership, with two-thirds or more in many countries. On a country basis, Russians, Poles, and Chinese are most inclined to endorse this approach. Conversely, barely a majority of people in the North support government...
World’s Most Important Problems via Governance Focus
While people in the developed North worry about war and terrorism, the rest of the world is mainly concerned about economic issues.When people are asked to say in their own words what is the world's most important problem today, a full third cite poverty, unemployment, or economic problems. This is a greater proportion than cite wars and conflicts, or terrorism, cited by a total of one in four people. Problems of crime, corruption, and drug abuse come next, followed closely by the environment and climate change. People's sense of personal insecurity, however, is about equally likely to be focused on any one of these areas.People in the North and South have different priorities about the world's problems. The South sees wars, conflicts, and terrorism as one set of problems among many....
Lessons from Davos, One of Globalization’s Best Classrooms via Governance Focus
Deliberations at the World Economic Forum in Davos last month did not go entirely as planned, but few of the 2,400 people attending the meeting were deterred by the plunging market. In this opinion piece, management professor Michael Useem, who directs Wharton's Center for Leadership and Change Management and who attended the forum, discusses how Davos has emerged as a "classroom on globalization." Among the key lessons from this year's class: Central bankers have lost their way; sovereign wealth, hedge and private equity funds are the new power brokers; and no new authority should be put in control. I was about to board a flight to London and then onto Zurich for the annual meeting of the World Economic Forum in Davos, Switzerland. With a final check of the Internet, my laptop screen lit...
Gates calls for creative capitalism to help poor via Governance Focus
Bill Gates, the founder of Microsoft, last night called for a new version of global capitalism that delivered benefits to the poor as well as the rich.Speaking at the World Economic Forum in Davos, the software entrepreneur and one of the world's richest men said there was a need for "a creative capitalism" that would use market forces to address the needs of the world's poorest countries."We have to find a way to make the aspects of capitalism that serve wealthier people serve poorer people as well," Gates said in a keynote address."The world is getting better in many crucial ways," Gates said. "I'm an optimist but I'm an impatient optimist. Things are not getting better fast enough and they are not getting better for everyone."Gates added that the least needy were seeing the biggest...
2008: Highest levels of political and economic uncertainty for a decade via Governance Focus
The World Economic Forum released today Global Risks 2008, which highlights the need for new thinking and concerted action on a number of problems. The report expresses fears that the current liquidity crunch will spark a US recession in the next 12 months and calls for new thinking on systemic financial risk in response to the revolution in financial markets over the last two decades. It also recommends a set of principles for country risk management and examines how the financial sector might take on an increasingly important role in risk transfer in the future.The report also warns that food security will become an increasingly complex political and economic problem over the next few years, with issues of equity and trade-offs between security and other issues making the design of...
Is One Global Model of Corporate Governance Likely, or Even Desirable? via Governance Focus
In Germany, labor unions traditionally have had seats on corporate boards. At Japanese firms, dozens of loyal managers cap off careers with a stint in the boardroom. Founding families hold sway on Indian corporate boards. And in China, Communist Party officials are corporate board fixtures.Just as different nations have developed languages, foods and local customs, they also have adapted their own forms of corporate governance and board structures. Now, as business continues to globalize, new pressure from international capital pools and government regulators may diminish the local and national flavor of corporate boards, according to Wharton faculty and other experts in corporate governance.Wharton management professor Michael Useem says companies around the world are increasingly...
SEC & SEBI heading towards more cooperation via Governance Focus
US Capital market regulator Securities Exchange Commission (SEC) and Indian Capital market regulator Securities & Exchange board of India (SEBI) are in exchange of dialogues to increased cooperation among both. There main focus of the dialogues : * Identifying and discussing regulatory issues of common concern; * continuing and expanding the existing program of capacity-building and technical cooperation between the SEC and the SEBI; and * improving cooperation and the exchange of information in cross-border securities enforcement.The dialogue will be composed of regular meetings and ad hoc information exchange at the staff level and between high-level representatives of the SEC and SEBI. Several topics have been identified for discussion for the dialogue over the...
Global Corporate Citizenship - Klaus Schwab via Governance Focus
Working With Governments and Civil SocietySummary: Global corporate citizenship means that companies must not only be engaged with stakeholders but be stakeholders themselves alongside governments and civil society. Since companies depend on global development, which in turn relies on stability and increased prosperity, it is in their direct interest to help improve the state of the world.Compared to just a decade ago, it is now common for businesspeople to talk about social responsibility and the importance of being good corporate citizens. Many business leaders today consider it critical to engage with shareholders, the communities in which their companies operate, and others affected by and interested in what they do. The diverse activities needed to respond to these expanded duties...
2008: Highest levels of political and economic uncertainty for a decade via Governance Focus
The World Economic Forum released today Global Risks 2008, which highlights the need for new thinking and concerted action on a number of problems. The report expresses fears that the current liquidity crunch will spark a US recession in the next 12 months and calls for new thinking on systemic financial risk in response to the revolution in financial markets over the last two decades. It also recommends a set of principles for country risk management and examines how the financial sector might take on an increasingly important role in risk transfer in the future.The report also warns that food security will become an increasingly complex political and economic problem over the next few years, with issues of equity and trade-offs between security and other issues making the design of...
Survey findings - Voice of the People via Governance Focus
Gallup International’ s Voice of the PeopleTM End of the Year Survey found a third of the more than 50,000 people interviewed across the world are optimistic about the year to come (33%), while a quarter (26%) are pessimistic and 32% forecast no major changes. The survey was conducted between October and December and asked people in 54 countries of different continents “So far as you are concerned, do you think that 2008 will be better, or worse than 2007?”Analysis of trend data shows world citizens are expecting 2008 with less hope than in 2007, when 43% looked forward positively to the year about to commence.Looking at the economic front, the number of those forecasting economic difficulties and an increase in unemployment (35% and 43% respectively) outnumbers those with views of...
United Nations Climate Change Conference 2007 - Summary via Governance Focus
The Conference, hosted by the Government of Indonesia, took place at the Bali International Convention Centre and brought together more than 10,000 participants, including representatives of over 180 countries together with observers from intergovernmental and nongovernmental organizations and the media. The two week period included the sessions of the Conference of the Parties to the UNFCCC, its subsidiary bodies as well as the Meeting of the Parties to the Kyoto Protocol. A ministerial segment in the second week concluded the Conference.The conference culminated in the adoption of the Bali roadmap, which charts the course for a new negotiating process to be concluded by 2009 that will ultimately lead to a post-2012 international agreement on climate change. Ground-breaking decisions...
Seeking Leaders, U.S. Companies Think Globally via Governance Focus
The corner offices of corporate America are increasingly being filled from every corner of the world.Citigroup, the world’s largest bank, named Vikram S. Pandit, a native of Nagpur, India, as its chief executive on Tuesday. Mr. Pandit joins 14 other foreign-born chiefs who are running Fortune 100 companies.The head of the Altria Group was born in Egypt, for example. PepsiCo’s is from India, the Liberty Mutual Group’s is a native of Ireland and Alcoa’s was born in Morocco.Their numbers have jumped from roughly a decade ago; there were nine foreign-born chief executives on Fortune’s list of the 100 largest companies in 1996. But the size of the new group does not reflect a noteworthy change — they come from more far-flung countries now than then, when they were more likely to...
Do International Financial Reporting Standards Live Up to Their Promise? via Governance Focus
At a time when many barriers to global trade have fallen and the world's economies have become increasingly linked, countries all over the world are taking steps to harmonize their accounting standards and develop a truly global language of business.Under the lead of the International Accounting Standards Board (IASB), already more than 100 countries, most notably the European Union and many Asian economies, have either implemented International Financial Reporting Standards (IFRS) or plan to do so.So far, the United States has been a holdout. But the winds are changing. On November 15, 2007, the U.S. Securities and Exchange Commission (SEC) -- which up to then was requiring foreign companies to either report using Generally Accepted Accounting Principles (GAAP) or to reconcile to them --...