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THE AUSTRALIA SUMMIT: BRISBANE
NOVEMBER 2014
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Contents
Introductions and leaders’ perspectives
14
A turning point for the G20
Tony Abbott, Prime Minister, Australia
20
34
ASEAN and the G20: shared objectives
U Thein Sein, President, Myanmar
Editors’ introductions
36
A formidable agenda for challenging times
John Kirton, Co-director, G20 Research Group
Lead by example to stimulate growth
Jacob Zuma, President, South Africa
28
John Key, Prime Minister, New Zealand
Committed to inclusive strategies
Enrique Peña Nieto, President, Mexico
26
The G20: a source of economic resilience
Building the world we want to live in
Ahmet Davutoğlu, Prime Minister, Turkey
24
32
38
Australia’s agenda and the future
Russell Trood, Professor of International
Relations, Griffith University
Viewpoints from across the G20
Leaders’ quotes ahead of the Brisbane Summit
The G20 in numbers
Global contributions to G20 governance
40
30
Lessons learnt on the way to recovery
Mariano Rajoy Brey, Prime Minister, Spain
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A look at how the G20 members compare on
statistics ranging from gross domestic product
to foreign investment and energy consumption
G20 Australia Summit: Brisbane November 2014
5
CONTENTS
Australia as host
44
48
Investment in infrastructure
Bolstering trade and investment
Opinions on the importance of infrastructure to growth and development:
The G20 can identify policy reforms to improve
trade and spur growth, says Andrew Robb AO,
Minister for Trade and Investment, Australia
82
50
Business round table
Interview
86
90
A social licence for development
The environmental and social impacts of infrastructure projects must
be assessed, writes Kathryn Hochstetler, CIGI Chair of Governance in
the Americas, Balsillie School of International Affairs
92
Reinvigorating investment
Erik Berglöf and Alexandru Chirmiciu of the European Bank for
Reconstruction and Development consider how financial institutions
can help boost infrastructure investment
96
Infrastructure: some universal truths
The private sector can help meet the global infrastructure deficit,
writes Andrew Briggs of international law firm Hogan Lovells
Growing the global economy
58
Dr Ahmad Mohamed Al-Madani
A global infrastructure facility will mobilise investors, as the
President of the Islamic Development Bank explains
Private-sector perspectives
Senior figures from business and finance offer
their insights into growth prospects
Facilitating private-sector investment
Public-private partnerships are a crucial tool in the growth of Africa,
writes Donald Kaberuka, President, African Development Bank
Knowledge-sharing for development
Universities strive to develop solutions for the
world’s problems, writes Ian O’Connor, Vice
Chancellor and President, Griffith University
54
84
A blueprint for growth and jobs
The B20 recommendations are designed to help
drive economic recovery, says Robert Milliner,
B20 Sherpa for Australia for 2014
52
Help from the private sector is needed to further Asia’s development,
says Takehiko Nakao, President, Asian Development Bank
Brisbane: ready to welcome the world
Lord Mayor Graham Quirk sees an opportunity
to showcase Brisbane as a world-class city
Bridging Asia’s infrastructure gap
Building resilience and boosting growth
Angel Gurría, Secretary General, Organisation
for Economic Co-operation and Development,
on the need for robust structural reform
102 Next-generation telecommunications
Dr Hamadoun Touré, Secretary General,
International Telecommunication Union, on
the benefits of expanding broadband networks
Interview
64 Lawrence H Summers
The former US Treasury Secretary discusses the
G20’s approach to macroeconomic policy
68
Employment is at the centre of economic
recovery, says the Director General of the
International Labour Organization
106 Enhancing education to change lives
Access to education has long-term effects on
success and well-being, writes Claudia Costin,
Senior Director for Education, World Bank
The business agenda for structural reform
Bernhard Welschke, Secretary General, Business
and Industry Advisory Committee, on the
necessity of product and labour market reform
74
104 Guy Ryder
A multi-stakeholder approach to growth
Deeper public and private cooperation is key to
driving growth, argues Klaus Schwab, Founder
and Executive Chairman, World Economic Forum
72
Interview
110
Entrepreneurship is the key to solving the jobs
crisis, say Jeremy Liddle, Victor Sedov and Ali
Yücelen, G20 Young Entrepreneurs’ Alliance
Working towards a digital single market
Neelie Kroes, former Vice President, European
Commission responsible for the Digital Agenda,
on why cybersecurity needs to be addressed
78 Maria van der Hoeven
The Executive Director of the International
Energy Agency says the organisation is working
with the G20 to improve energy security
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Finance and regulation
114
Interview
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The voice of future business leaders
Steps towards financial stability
Coordinated structural reforms are necessary
to ensure economic stability, argues Christian
Noyer, Chairman of the Board, Bank for
International Settlements
G20 Australia Summit: Brisbane November 2014
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CONTENTS
Quality not quantity as China deleverages
TOM GILKS/ALAMY
118
Zhang Yanling, Former Executive Vice President,
Bank of China, assesses the progress of China’s
structural reform of its commercial banks
120
Global reform after the financial crisis
Increasingly complex markets present new
obstacles for financial reform, explains David
Wright, Secretary General, International
Organization of Securities Commissions
122
Regulating the insurance industry
Increasing globalisation means that new policy
measures must be adopted, says Dr Yoshihiro
Kawai, Secretary General, International
Association of Insurance Supervisors
124
Accounting standards need to reflect the growing
importance of sustainability issues, write
Robert G Eccles, Jean Rogers and Mary Schapiro,
Sustainability Accounting Standards Board
130
Trade and investment
Global development: 2015 and beyond
155
160 Driving growth in Latin America
A new global context helps define the agenda for
Latin America, writes Enrique García, Executive
President and Chief Executive Officer, CAF –
Development Bank of Latin America
162
168 Tough medicine for health governance
Lessons must be learnt from the failings of
the global response to the Ebola outbreak,
urges David P Fidler, Professor of Law,
Indiana University Maurer School of Law
The tourist sector is an engine of economic
growth and development, says Taleb Rifai,
Secretary General, World Tourism Organization
142
DEVELOPMENT BANK
OF LATIN AMERICA
A power boost for the African economy
Energy infrastructure can help unlock potential
across Africa, explains Andrew M Herscowitz,
US Coordinator, Power Africa
148 Energising the world, sustainably
Access to energy in developing countries must
be broadened, while emissions are reduced in the
developed world, says Abdalla Salem El-Badri,
Secretary General, OPEC
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Towards a world free of AIDS
The G20 is vital to the UN’s goal of ending the
AIDS epidemic by 2030, writes Michel Sidibé,
Executive Director, UNAIDS
Tourism: global growth, local impact
Energy and climate change
Realising the post-2015 opportunity
Cooperation between G20 leaders will help drive
the sustainable development agenda forward,
writes Helen Clark, Administrator, United
Nations Development Programme
In support of TFA implementation
The proposed Trade Facilitation Agreement will
boost global trade, explains Kunio Mikuriya,
Secretary General, World Customs Organization
138
Achim Steiner, Executive Director, United
Nations Environment Programme, looks at the
interplay of environmental and economic issues
Tackle corruption to release growth
Dealing with money laundering at all levels will
help foster economic stability, says Lida Preyma,
Director of Capital Markets Research, Global
Finance, G20 Research Group
134
Climate change and financial stability
Building resilience in financial systems
The converging of accounting standards is
central to financial stability, writes Fayezul
Choudhury, Chief Executive Officer,
International Federation of Accountants
132
152
Accounting for sustainability
Perspectives on agriculture and food security
How agriculture can be advanced to aid food security, and help find a
sustainable solution to end hunger, with perspectives from:
172 José Graziano da Silva
Director General, Food and Agriculture Organization
174
Kanayo F Nwanze
President, International Fund for Agricultural Development
178
Ertharin Cousin
Executive Director, World Food Programme
G20 Australia Summit: Brisbane November 2014
9
CONTENTS
SPONSORED FEATURE
How do we outcompete
the economic slowdown?
G20 governance
180 A question of integrity
Competition is the keyword for a globally competitive digital economy and society
Erzsébet Fitori
Director
B
oosting the European
economy, creating jobs
and increasing growth
and investments are
key priorities as well as
challenges for European policymakers.
Next-generation broadband
infrastructure and innovative digital
services are important enablers
of all other sectors, as well as a
connected and knowledge-based
society. But how can Europe maximise
investments and reap the economic
benefits of digital innovation?
Nurturing competition and
enabling all players to invest will
drive broadband infrastructure
investments and maximise benefits
for end-users. We have to ensure that
European consumers and businesses
have the best choice and quality, and
affordable prices of communications
services, which in turn will get
them connected, building a digital
economy and society.
The global competitiveness of the
European economy and society is driven
by local competition. The economic gains
of more competition in communications
services for businesses alone would be
€ 90 billion through increased business
productivity and efficiency.
The biggest enemy of Europe’s global
competitiveness would be the return to
monopolies and closed oligopolies. While
today Europe is a world leader in basic
broadband thanks to its pro-competitive
policies, there is a real risk that European
end-users and the economy will lose the
competitive gains of the past decade.
According to the European Commission’s
2014 Digital Agenda Scoreboard, in
next-generation broadband the
former monopolies have more than
80 per cent market share – a staggering
figure. Promoting competition is more
important today than ever, as it is
sustainable and effective competition
that drives investments, ensures enduser benefits and fuels the economy.
Investment in next-generation
broadband infrastructure is clearly core to
achieving a digital economy and society.
Next-generation broadband investments
are happening in Europe: there is
62 per cent next-generation access
(NGA) coverage, but in order to maximise
investments, telecoms policies should
enable all players to invest. More players
simply invest more. And challenger
operators were the first fibre investors
and are active NGA investors today.
Effective access to non-duplicable
network assets (such as the local
loop and subloop) and fit-for-purpose
wholesale access products are the
proven tools to ensure that all players
make efficient investments and dominant
operators do not misbehave.
In order for investments to generate
returns and economic growth, the new
networks must be used and taken up by
end-users. But currently only 15 per cent
of European homes subscribe to next-
Integrity is at the heart of governance and
long-term stability, writes Charles Sampford,
Director of the Institute for Ethics, Governance
and Law, Griffith University
THE AUSTRALIA SUMMIT: BRISBANE
NOVEMBER 2014
generation broadband. There is clearly
a take-up gap and the vast majority of
European homes are disconnected when
it comes to next-generation broadband.
History taught us that in traditional
broadband it was competition that drove
the take-up of the then new broadband
services. Challenger operators – via their
own investments and access to economic
bottleneck network assets – brought
innovative, new products to the market,
drove down prices to affordable levels and
increased broadband speeds. Growing
take-up spurred more investments. This
virtuous circle should be recreated in the
transition to next-generation broadband.
Competition is the fuel of the
digital economy and society, driving
investments and growth. Our challenge
and policymakers’ responsibility is to
keep competition alive and kicking.
Deregulatory policies restricting
competition would return Europe to the
bronze age instead of a transition to a
gigabit society. Indeed, monopolies and
duopolies invest less and deliver less.
This is what will be discussed, among
many other issues, at the ECTA
Regulatory Conference 2014 taking
place on 18-20 November (see below).
For more information, please consult
www.ectaportal.com/regulatory2014
Editorial
Editors John Kirton, Madeline Koch; Guest Editor
Russell Trood; Editor-in-Chief Barry Davies; Managing
Editor Jane Douglas; Chief Sub-Editor Victoria Green;
Senior Sub-Editor Ka Yee Meck; Assistant Editor Emily
Eastman; Sub-Editors Amanda Simms, Emilie Dock
Interview
184 Paul Martin
The former Canadian Prime Minister
explains how the G20 came into being
Design and production
Art director Jean-Philippe Stanway; Art Editor
Herita MacDonald; Production and Distribution
Manager Elizabeth Heuchan
186 From St Petersburg to Brisbane
The 2013 summit created a stronger governance
framework for this year to build on, write
Marina Larionova and Andrey Shelepov, National
Research University Higher School of Economics
Sales
Sales Managers Laurie Pilate, Thomas Kennedy; Sales
Executives Anka Prpa, Peter De Vries
188 Charting G20 compliance
Management
Ella Kokotsis and Caroline Bracht of the G20
Research Group consider how well G20 members
have fulfilled their past commitments
Publishing Director Anne Sadler; Chief Operating
Officer Caroline Minshell; President Paul Duffen;
Chairman Lord David Evans
Front cover: Sara Winter/Getty Images
190 Thinking ahead to stronger governance
The Think20 group can help strengthen
G20 governance, suggests Mike Callaghan,
Director, G20 Studies Centre, Lowy Institute
for International Policy
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managed by TU ink, London, UK
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192
184-192 Drummond Street, London NW1 3HP, UK
Tel: +44 (0) 20 7650 1600
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194 On track for inclusive growth
Integrating ‘sherpa track’ priorities into the
G20 agenda will improve its focus, argues
Güven Sak, Executive Director, Economic
Policy Research Foundation of Turkey
In cooperation with
G20 Research Group
196
ECTA, the European Competitive Telecommunications Association, 49/51 Rue de
Trèves 49-51, 1040 Brussels, Belgium
T: +32 (0) 2 290 0100
China: the key to G20 success?
The international monetary system needs to
be realigned to reflect new realities, says Wang
Wen, Executive Dean, Chongyang Institute for
Financial Studies, Renmin University of China
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The G20 Research Group
Munk School of Global Affairs and Trinity College
University of Toronto
1 Devonshire Place, Room 209N
Toronto ON M5S 3K7
Canada
Tel: +1 416 946 8953
www.g20.utoronto.ca
© 2014. The entire contents of this publication are protected by
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way imply endorsement by the G20 Research Group or Newsdesk
Media of products or services referred to therein.
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Turkey 2015: focus on business
As the next host, Turkey aims to engage with the
private sector to drive growth and job creation,
says M Rifat Hisarcıklıoğlu, President, Union of
Chambers and Commodity Exchanges of Turkey
198
Leaders’ profiles
202 Sponsors’ index
online at
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G20 Australia Summit: Brisbane November 2014
11
REAL WORLD
TRANSFORMATION IS IMMINENT
ITS ABOUT OUR PROSPERITY, JOBS AND PEACE
Six years after the global ﬁnancial industry was brought to its knees by the worst crash since the Great
Depression of the 1930s, the world is still struggling to regain the momentum it had before the crisis. Even
though governments and leaders around the world have been trying to get their economies back in
shape, millions of unemployed and those hit the hardest by the crisis believe a lot more needs to be done.
Adding to the concerns, many economists believe that the next crisis would be even more crippling
than the one in 2008. To prevent a recurrence, leaders are looking for long-term and equitable solutions,
which create balanced and sustainable economic growth.
“With the present economic challenges and the uncertainty, we must ask ourselves if we can enlarge
the global economic pie rather than compete for the same and hence create a win–win outcome?”
asks Dr. Ahmed Mohammed Ali, President of the Islamic Development Bank. “Can we deliver a real,
sustained global economic growth that builds upon the demographics, the expertise, natural resources
and the available infrastructure in every country and every city of the world? Can we support the needs
of the real economy to make a tangible difference, mainly for manufacturing, agricultural and the
service industry workforce?”
Dr. Mohammed Ali says, “This Global initiative
to empower Digital Economy, the HumaWealth
Program, aims to support the innovation G20
leaders have been calling for. It is global
in scope, founded on partnership and not
competition, can be deployed rapidly across
the globe at no cost to promote real economic
growth.”
He goes on to say, our legislatures make the
rules, our governments administer our countries,
and the real economic solution must come
from each one of us.
The public sector can point the way forward
and can assist in providing the tools. However,
each citizen must be part of the solution
creating productive communities committed to
business excellence setting the foundation for a
prosperous tomorrow.
Lastly Dr. Mohammed Ali stated, ‘Our future
begins with every following hour and each hour
is valued by the decisions we make. The world’s
citizens will be judiciously watching their leaders.
We all must make the decision that supports
Human Wealth making a positive difference in
our time and for generations to come.’
THE TRANSFORMATION
HAS ALREADY STARTED
Furthermore Dr. Mohammed Ali added, ‘The answer is, yes. I believe we can’. According to the research
done by the Global Coalition for Efﬁcient Logistics (GCEL), an organization that brings together leading
ﬁrms, governments and NGOs, this is possible. The results are overwhelming; so far more than 41% of the
world’s manufacturing, agricultural and service industry workforce have conﬁrmed the need for the
proposed global initiative, which has 4 main foundations:
Leading this global initiative is a Swiss based non-proﬁt public private partnership established with one
purpose in mind: To deliver the true 21st Century Digital Economy to sustain global economic growth
meeting the needs and aspirations of the world citizens. The Global Coalition for Efﬁcient Logistics,
GCEL, brings together leading ﬁrms, governments, and non-proﬁt organizations to trigger economic
development around the world.
The ﬁrst foundation is a deﬁned and achievable target that meets the world citizens’ aspirations and
needs by reducing the global trade cost and combining the expertise of the developed economies with
the youthful workforce in developing and emerging economies. This will increase global trade, leading
to beneﬁts of USD 11 trillion and 100 million new jobs.
The second foundation is a clear roadmap
based on the economic strengths and the
demographics of each region to reach the
deﬁned target. Pan-regional organizations
entrusted by more than 150 countries have
already validated and separately published
these roadmaps.
In the history of mankind, there has never been an initiative of this magnitude and importance that
will transform the lives of more than 7 billion people around the world. Captain Samuel Salloum, CoChairman of GCEL, remarked, “The key is in learning from history while leveraging 21st century tools.
History reveals that over 60 years ago, a trucker invented the cargo container, which secured goods
against theft and damage, reducing the cost of trade and loading costs. This improved trade efﬁciency,
fueling decades of economic growth.”
The third foundation is the required tools provided
by the world’s top technology ﬁrms that service
60% of our GDP, which for the ﬁrst time have
agreed to cooperate together. These ﬁrms
have executed an exclusive agreement to
work hand-in-hand delivering and maintaining
the required tools at no cost to the end user.
Dr. Ahmed Mohammed Ali
President of the Islamic Development Bank
Finally the fourth foundation is the global
consensus; MOUs have been executed with
about 75% of the world’s citizens through their
representatives, governments, IGOs and NGOs,
ensuring this initiative offsets monopolistic or
geopolitical concerns. So far 63% of the G20
trade communities have agreed to undertake
diagnostic trade surveys towards improving
their economic wellbeing. One third have
been completed where more than 88% want
the Digital Economy Platform.
Captain Salloum further added, “International organizations including the World Bank, WTO and UNCTAD
have identiﬁed the following 6 key elements as the key to increase trade efﬁciency through technology
thus reducing trade cost and increasing trade:
1. Integration:
4. Tracking & Visibility:
2. E-Documentation:
5. Competence:
3. Processes:
6. Cargo Security:
Connect trading partners by sharing shipment
information in real time at a lower cost.
Migrate to online documentation avoiding
unnecessary data entry, shipment delays and
additional costs.
Mitigate business risk such as delays, breakdowns
and external requirements changes through a
common process with trading partners.
Obtain real-time shipment location & movement
information with minimum technology required
at no cost.
Meet contractual and service obligations on
time, with high quality at minimum cost.
Establish a safe environment with ease of customs
clearances.
We have aggregated all these elements and measured them not against “best in class” since this keeps
us locked ﬁrmly in the box, but against what technologically is possible. This represents the 21st Century 6
Elements Trade Efﬁciency Indicators (21- 6-ETEI), or the New Millennium Standard for Growth,” says Captain Salloum.
Continued on Page 16