GSO News Volume 2 Number 7, September 2006
Katherine A . Hagen - Managing Director

GSO News is a subscription service provided by the Geneva Social Observatory.  We report on developments at WHO, WTO, ILO and many other Geneva-based organizations, as well as other selected developments on global social issues. We hope you enjoy our news service, and we invite your comments and suggestions (please send them to gsonews@gsogeneva.ch).  We welcome subscriptions and are now offering a wider choice of subscription payment options.  Connect to our subscription page at http://www.gsogeneva.ch/subscribe.asp.  We encourage you to share the information on how to subscribe with others.  Thank you for your support.  The detailed news and this month’s in-depth on CSR, Development and Trade follows the table of contents below.

GSO News Digest September 2006

1.     What WTO for the Doha Round?
An update on developments at the WTO in the Doha round of negotiations.  Is there a change to a more hopeful mood to resume the talks?

2.     What WTO for the XXIst Century?
The WTO Public Forum on 25 to 26 September 2006 features the theme “What WTO for the XXIst Century?”  GSO is co-organizing a roundtable at the forum with the Quaker United Nations Office on corporate social responsibility and the Doha Round.

3.     Forum on Global Health Policy
Participants at the recent Geneva forum on global access to health discussed how health systems can respond to a growing need for action to improve social welfare and societal stability. 

4.     Toronto AIDS Conference
GSO brings back news from the latest and largest International AIDS Conference in Toronto where empowerment was a key theme.

5.     UNCTAD and Doha Priorities
GSO looks at the impact of the current state of the Doha round on the agendas of the forthcoming annual session of the trade and development board and the UNCTAD public hearing with civil society and private sector representatives. 

6.     WIPO Assemblies
Revisions of treaties on patent registration, copyright, broadcasting, and substantive patent law amongst others are due to come under review at the forthcoming WIPO Assemblies.

7.     29^th ISO General Assembly
The global challenges and opportunities for international standards in the area of healthcare are the focus of the opening forum of the 29^th general assembly of the ISO taking place in Ottawa from 10 to 16 September.

8.     Diabetes and SR in the Workplace
The Geneva Social Observatory is convening a series of roundtable events with multistakeholders to promote dialogue on the overwhelming impacts of the economic and social costs of diabetes in the work place and to develop policy recommendations for broadened engagement in the fight against the growing worldwide epidemic of diabetes and chronic diseases.  The first roundtable will be held at the ILO Headquarters in Geneva on Tuesday, 17 October from 11h00 to 16h00. 

9.     WHO leadership race
The Secretariat of the World Health Organization received nominations from 13 countries for candidates to become Director-General following the tragic death of Dr. Lee Jong-Wook in May.

10.    Personnel Changes
GSO News reports on recent changes in Geneva-based international organizations.

11.    Forthcoming Events
A listing of events in September and October 2006 taking place in Geneva unless otherwise indicated.

In-Depth Issue:  CSR, Development and Trade
In this in-depth piece, GSO News takes a look at some of the issues surrounding CSR and development, along with their potential to impact the Doha Round

We see the growing importance of CSR globally and note how it is being channeled through such endeavors as the public/private partnerships for achieving the UN Millennium Development Goals or the voluntary initiatives of the UN Global Compact.  Is it possible and/or desirable to facilitate a Doha Round which achieves a mutually beneficial outcome by emphasizing the linkages between CSR and development?

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GSO News September 2006

1.     What WTO for the Doha Round?

Despite missing repeated deadlines to complete the Doha Round of trade negotiations and the suspension of meetings of the Negotiating Groups on 24 July, following the summer recess there seems to be agreement amongst the WTO membership that efforts be made to resume the process, albeit within a shortened timeframe.

This change in mood was confirmed at the G-20-plus meeting in Rio de Janeiro from 9 to 11 September, where many developing country groups joined together to urge its resumption.  On that occasion, WTO Director-General Pascal Lamy announced that “one has passed from the ‘critical accident’ sign to the ‘WTO negotiations at work’ sign.”  He asserted that the WTO members seemed to be about ready to resume negotiations at the point at which “we were in July” and to focus on the agriculture issues “where the accident occurred”, but, he cautioned, “the car isn’t ready to leave the garage” just yet.  Brazil’s Foreign Minister Celso Amorim used a more animated metaphor by saying “The Doha Round is alive…We have taken the patient out of the intensive care unit and now it’s in the sick bay.”  EU Trade Commissioner Peter Mandelson simply said “We must all have more to bring to the table.”  And US Trade Representative Susan Schwab suggested that she was looking for a broadening of the core negotiators to bring in more “open-minded” supporters of the Doha Round.  Further reaffirmations of the importance of resuming the Doha Round are expected at the 20^th anniversary meeting in Australia of the Cairns Group, the coalition of major agricultural exporting countries. 

The key message is that work will continue on the data to support the “modalities” on agriculture and NAMA.  Perhaps one can also surmise that work will also continue on the packaging of the various offers and counter-offers in the services negotiations.  Mr. Amorim has suggested that a special meeting of the G-20 plus the other developing country groups should meet in Geneva in mid-October or early November to reinforce his commitment to supporting a common position among the developing countries in the next phases of the Doha Round.  Then, later in November, following the US Congressional elections and IF the political environment is right, the parties might get back together.   

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2.     What WTO for the XXIst Century?

As reported in the last issue of GSO News, the GSO and the Quaker UN Office are co-organizing a panel discussion at this year’s forum on “Corporate Social Responsibility and the Doha Development Round:  Are There Any Win-Win Opportunities for the Private Sector and Developing Countries?”  The panel, taking place in Room B at the WTO headquarters in Geneva on 25 September from 15h00 to 16h30, will address ways in which the private sector and developing countries can both benefit from trade liberalization and have a positive impact on the economic growth and development of the countries for whom trade liberalization is supposed to be an avenue to sustainable development.  The objectives of the dialogue are to facilitate a better understanding of the particular needs of developing countries for sustainable growth, as well as an enhanced awareness of the value of a development perspective in the private sector.  On the panel, we are pleased to announce, will be Auret van Heerden, President and CEO of the Fair Labor Association, Bernard Luten from Unilever, Christopher Roberts, Chair of the Policy Committee of the European Services Forum, Joy Kategekwa from the South Centre, Peter Neidecker from Hewlett Packard, Rabson Wanjala from the Kenyan Mission to the UN, Stefanie Meredith, Director of Public Health Partnerships, IFPMA and Shaista Sohail, WTO Delegate, Pakistan Mission to the WTO.   

Also on the programme are sessions on sustainable development, agriculture, systemic issues, standards, aid for trade, regional trade agreements, subsidies, accessions, gender and the role of the media and academia amongst others. The programme will start with a high level panel addressing the theme of the forum featuring Pascal Lamy, WTO Director-General, H.E. Pakalitha Mosisili, Prime Minister of Lesotho, Ted Turner, Chairman of the UN Foundation and Antony Burgmans, Chairman of Unilever. For full details of the programme see www.wto.org/english/forums_e/public_forum_e/programme_e.htm.  

Participation in the public forum is free and it is possible to register online through the WTO website at www.wto.org.

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3.     Forum on Global Health Policy

‘The Geneva Forum: Towards Global Access to Health,’ organized by the Geneva University Hospitals and the Faculty of Medicine of the University of Geneva, provided the opportunity to address the challenges involved in ensuring access to health in the context of a globalizing economy.  Held at the Centre International of Conferences of Geneva (CICG) from Wednesday 30 August to Friday 1 September 2006, international organizations and federations, NGOs and civil society representatives were able to discuss in depth, the crucial issue of how health systems can respond to a growing need for action.  Health and especially access to health are preliminary conditions or determinants that can improve social welfare and societal stability.

The Geneva Forum provided a unique opportunity for all participants to present and explore innovative partnerships and programs facilitating access to health.  The topics covered at the Forum included access to health systems; health and inequities; access to drugs, vaccines and diagnosis; civil society and social issues in health; and capacity building and partnerships.  Many speakers addressed the lack of success of the UN Millennium Development Goals.  Participating organizations representing global health initiatives and partnerships; health research; civil society, NGOs and community based initiatives; e-health and health information; humanitarian and international cooperation; and hospitals and university networks exhibited their work at the Forum as well.  Outstanding contributors included Ms. Micheline Calmy-Rey, Federal Councillor and head of the Department of Foreign Affairs, Switzerland; Mr. Jakob Kellenberger, President, International Committee of the Red Cross, Switzerland; and Ms Mary Robinson President of Realizing Rights: The Ethical Globalization Initiative, USA. 

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4.     Toronto AIDS Conference

GSO took part in the XVI International AIDS Conference in Toronto, Canada from 13 to 17 August 2006.  The Conference was the largest ever AIDS conference, some 43,000 delegates, but remarkably well managed by the Canadians.  The opening plenary was in a large stadium – featuring a powerful joint keynote address delivered by Bill and Melinda Gates, as well as Richard Gere and other star performers.  The other big star of the conference was former President Bill Clinton, who engaged in a well-received dialogue with Bill Gates and also delivered his own platform speech.  One could sense a shift in tone and focus highlighted by the messages from these three and reinforced by many others to embrace a heightened awareness of the centrality of prevention as the means to stop the AIDS pandemic.  Empowerment of women to control their own lives, as well as the need for sustained empowerment of people generally, was a central theme.  Hopeful news was shared about progress in the development of microbicides and emerging evidence about the effectiveness of male circumcision.  The Conference also featured a focus on the world of work, with a wide array of sessions connecting people to a better understanding of reaching people through their working lives to build effective networks of prevention, treatment and care.  GSO’s work on developing an umbrella action plan on outreach to people working in the informal economy hit a resonant chord in many of these sessions, as participants repeatedly brought up the urgency of going to people where they are, that being overwhelmingly in the informal economy in most developing countries.  GSO continues to channel its action plan to stimulate new initiatives and will report over the next few months on new opportunities emanating from the Toronto Conference. 

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5.     UNCTAD and Doha Priorities

The 53^rd annual session of the Trade and Development Board of the UN Conference for Trade and Development will meet in Geneva from 27 September to 10 October.  UNCTAD also has a unique mandate, emanating from the Rio UNCTAD meeting in 2004, to engage in partnerships with civil society and the private sector.  To that end, a prelude to the Trade and Development Board meeting is a public hearing with representatives of civil society and the private sector on 22 September.  The hearing features issues drawn from the Trade and Development Board agenda – including a “post-Doha work programme,” interdependence, LDCs, Africa, an assessment of technical cooperation activities and assistance to the Palestinian people.  It is strange to see “Post-Doha work programme” on its agenda, since meetings of the Negotiating Groups for the Doha Development Round at the WTO have been suspended since 24 July.  Although various parties to the Doha Round are publicly calling for the return to negotiations, the likelihood is that they won’t get restarted until after the US Congressional elections in mid-November.  So the focus is more likely to be on what needs to be done to overcome the barriers to the Doha Round.  

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6.     WIPO Assemblies

Preparations are underway for the Assemblies of the World Intellectual Property Organization, from 25 September to 3 October.  There is a “General Assembly” as well as separate and simultaneous “Assemblies” for the various treaties under the jurisdiction of WIPO.  Because these treaties, on such matters as patent registration, copyright, broadcasting, and substantive patent law cover areas of technological change and innovation, they are subject to updating and revision.  Forward momentum can be seen on a revision of trademark law, on which there seemed to be a widespread consensus that was achieved at a treaty-revising conference in Singapore earlier this year.  Revision of the WIPO treaty on broadcasting is also moving along (see GSO News Vol. 2, No. 4, May 2006 for a report.), although there is some resistance from the ICT industry.  The WIPO Standing Committee on Copyright and Related Rights met on 11 to 13 September to recommend a full-fledged conference next year (11 July to 1 August 2007) to address the rights of broadcasters and cablecasters over such matters as signal piracy.  Companies like Intel, AT&T and Verizon are against the revisions as potentially creating a “broadcast cloud” with significant Internet ramifications.  The US Government reflects their concerns and is siding with the likes of India and other major developing country members of WIPO.

One important area where there is less momentum is in the drafting of a Substantive Patent Law Treaty.  Here the Standing Committee on the Law of Patents has been slowed down by the “Friends of Development” group, the group of developing countries that has pushed for a major reform of WIPO itself to be more developmentally oriented.  The Standing Committee met once in the spring but cancelled its summer meeting for lack of agreement, and the unresolved issues are at the top of the agenda for the WIPO “Assemblies.”  Standardizing the definitions of “prior art,” “grace period,” “novelty” and “inventive step” are widely shared priorities, and some, mostly developed country delegations favor limiting the treaty agenda to these areas.  Other delegations, mostly associated with the “Friends of Development” group want a broader work program encompassing the following nine areas: (i) development and policy space for flexibilities; (ii) exclusions from patentability; (iii) exceptions to patent rights; (iv) anti-competitive practices; (v) disclosure of origin, prior informed consent and benefit-sharing; (vi) effective mechanisms to challenge the validity of patents; (vii) sufficiency of disclosure; (viii) transfer of technology; and (ix) alternative models to promote innovation.  In line with this broadened approach, on 7 to 8 September, Egypt hosted a seminar in Alexandria on “New Tools for the Dissemination of Knowledge and the Promotion of Innovation and Creativity” to address ways of making information and data more widely available. GSO News will provide an update on how this controversy is handled at the WIPO Assemblies in our October 2006 issue.

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7.     29^th ISO General Assembly

The International Organization on Standardization will hold its 29^th General Assembly in Ottawa, Canada on 10 to 16 October 2006.  The ISO is dedicated to developing a consistent and multi-sector collection of globally relevant International Standards. GSO News has been reporting on its progress for a new standard on corporate social responsibility, but it should be noted that the ISO is developing other new standards as well – such as in food safety, microbiology and food-borne pathogens.  These initiatives connect the ISO to the work of the Codex Alimentarius Commission, a joint WHO and FAO program of food safety standards – and to the WTO in its interpretation of safety and health standards that are consistent with existing trade rules for the free flow of goods and services.  At the ISO General Assembly, an important new theme was featured at an open forum on “Healthcare – Global Challenges and Opportunities for International Standards.”  The ISO has been criticized by tobacco control advocates for having developed standards relating to the tar and nicotine content of tobacco smoke that have been misused by the tobacco industry.  This new approach to possible healthcare standards may be an effort to move beyond that situation.  On the other hand, it may also encounter resistance from groups that are critical of industry manipulation of standards.  See www.iso.ch for more details.

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8.     Diabetes and SR in the Workplace

The Geneva Social Observatory is convening a series of roundtable events with multistakeholders to promote dialogue on the overwhelming impacts of the economic and social costs of diabetes in the work place and to develop policy recommendations for broadened engagement in the fight against the growing worldwide epidemic of diabetes and chronic diseases.  The first roundtable will be held at the ILO Headquarters in Geneva on Tuesday, 17 October from 11h00 to 16h00.  Interested parties should contact the Project Coordinator at mbullamore@gsogeneva.ch. 

Although the 2005 WHO report Chronic Diseases: A Vital Investment estimated 1.125 million deaths attributable to diabetes in 2005, it is acknowledged that this is considerably underestimated and the International Diabetes Federation puts this estimate at closer to 3.2 million.  Furthermore, productivity losses that were attributed to diabetes in the work place were estimated to be equivalent to half of the cost of medical care, or approximately $40 billion in 2002.  Diabetics are less likely to be hired into the workforce, and the presence of complications lessens the likelihood of job placement by 12 percent.  Furthermore, with the growing number of diabetics being diagnosed at younger ages, there are serious implications for global health and business.

Topics for the roundtables are being developed to include the participation of such entities as the International Labor Organization (ILO), the International Center for Migration and Health (ICMH), the World Bank, the World Economic Forum (WEF) and the United Nations Conference on Trade and Development (UNCTAD).  This is in addition to governments, a range of private corporations, and several international diabetes organizations.  With support from Merck and Pfizer, GSO is supporting the admirable work of the International Diabetes Federation (IDF) and the WHO’s Diabetes Action NOW with this roundtable programme. 

The Planning Group had its first meetings in July and August and will meet again at the end of September to prepare a plan of broadened outreach and to set the parameters for the roundtable series format.  The group has agreed that the first roundtable event on Tuesday 17 October 2006 from 11h00 to 16h00 should provide for an introductory exchange of views on the current state of the diabetes epidemic, with specific attention to the world of work and the potential for public/private partnerships amongst 30 or so participants.  A second roundtable will be held on 22 November to build on the discussions from the first roundtable.  There will be a broadened focus on defining the roles of key actors in the dialogue on the impact of diabetes and the relationship between the world of work and the communities in which business operates.  In the third January 2007 roundtable, specific policy recommendations may include an umbrella action plan for public/private partnerships, to be presented at side events during the World Health Assembly in May 2007 and the International Labour Conference in June 2007 in Geneva.

For further information about the GSO roundtable series on Diabetes and Social Responsibility please contact the coordinator, Meredith Bullamore at mbullamore@gsogeneva.ch.

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9.     WHO leadership race

The Secretariat of the World Health Organization received nominations from 13 countries for candidates to become Director-General following the tragic death of Dr. Lee Jong-Wook in May.  The deadline for nominations was 5 September 2006.  The Secretariat will prepare information on each candidate by 5 October, and the 34-member Executive Board will meet on 6 to 8 November to recommend a candidate to the full membership in the World Health Assembly, meeting in special session on 9 to 10 November to vote on the recommendation.  Critics of the process raise issues of a lack of transparency and secret balloting by the Executive Board, but no one has proposed an alternative procedure.  The 13 candidates are, in alphabetical order: Dr. Kazem Behbehani, a WHO Assistant Director-General (proposed by Kuwait); Dr. Margaret Chan, another WHO Assistant Director-General (proposed by China); Dr. Julio Frenk, Minister of Health (proposed by Mexico); Mr. David A. Gunnarsson, a senior health official  (proposed by Iceland); Dr. Nay Htun (proposed by Myanmar); Dr. Karam Karam (proposed by Syrian Arab Republic); Dr. Bernard Kouchner, a former Minister of Health and founder of Médécins sans Frontières (proposed by France); Dr. Pascoal Manuel Mocumbi, a former Prime Minister (proposed by Mozambique); Dr. Shigeru Omi, a regional director in the WHO (proposed by Japan); Dr. Alfredo Palacio González, President and trained surgeon (proposed by Ecuador); Professor Pekka Puska, Minister of Health (proposed by Finland); Ms. Elena Salgado Méndez, Minister of Health (proposed by Spain); and Professor Dr. Tomris Türmen, head of WHO’s family and community health division (proposed by Turkey).  The full list is available at www.who.int.

There is only one African candidate – Dr. Mocumbi from Mozambique, who was also a candidate when Dr. Lee was elected.  At that time, many observers thought that it was “Africa’s turn”, but the African Regional Group was divided, with a competing candidate from Senegal.  This time, one might also see a momentum for “Africa’s turn” once again.  On the other hand, there are strong candidates from other regions, with a lot of attention directed to China’s support of Dr. Chan and Japan’s support of Dr. Omi in Asia, and a lot of credibility being given to Mexico’s Health Minister Julio Frenk and Ecuador’s soon-to-be ex-President Dr. Alfredo Palacio Gonzalez.  France came in at the last minute with the surprise nomination of Dr. Kouchner, a former French health minister, founder of Médécins sans Frontières and Médécins du Monde and former head of the UN Mission in Kosovo.  As a French Socialist, Dr. Kouchner was not expected to be supported by the Chirac Government, but it may be that President Chirac’s active support of a new funding mechanism for an International Drug Facility may have changed the dynamics here.  One should also note that the French have a strong candidate for succeeding Dr. Richard Feacham at The Global Fund for HIV/AIDS, TB and Malaria, a former Global Fund Board member, Dr. Michel Kazatchkine.  Dr. Kouchner’s candidacy may be a bargaining chip – a way of saying that a French person should at least get one or the other of these posts.  

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10.     Personnel Changes

The selection process for WHO Director-General is covered in a separate news item above.  A separate process is underway for appointment of the next Director of the Global Fund for HIV/AIDS, TB and Malaria.  The Global Fund Board has set the selection criteria and delegated the early phase of the process to an executive search agency, Odgers Ray and Berndtson.  Odgers received 334 applications and narrowed it down to a Category A list (to be interviewed by Odgers) and a Category B list (candidates of significant interest to be considered as fallback).  In consultation with the Global Fund Board selection committee in August, Category A was narrowed down to 18 candidates, and Category B, to 11 candidates.  Some ten or so candidates are to be interviewed by the Board committee on September 18 and 19, with five candidates to be recommended to the Board for its consideration in November.  Critics have expressed dismay at the lack of transparency in the process and have urged that an opportunity be given for candidates to state their positions and credentials publicly.  Concern is strong that the process does not guarantee sufficient certainty of a gender and geographic balance. 

Secretary-General Kofi Annan has just announced the appointment of Korean diplomat Kyung-wha Kang to serve as Deputy High Commissioner for Human Rights.  She will succeed Pakistan’s Mehr Khan Williams who is retiring at the end of this year.  Ms. Kang is currently Director-General of International Organizations at the Korean Ministry of Foreign Affairs and Trade. 

At the WTO, David Unterhalter from South Africa has been appointed the new member of the WTO Dispute Settlement Body.  He is a Professor of Law and the University of Witwatersrand, an expert in constitutional law and competition law and an advisor to the South African Department of Trade and Industry.  At the ILO, no announcement has yet been made of a replacement for Executive Director Sally Paxton (USA) who left in June, but there is a new Asian Regional Director, Dr. Gek-Boo Ng (Malaysia).  The UN Global Compact is headquartered in New York, but GSO News is pleased to report on a new appointment there of a Civil Society Coordinator, Ms. Olajogi Makinwa (Nigeria), who brings extensive experience working with civil society through her positions at Amnesty International, most recently in South Africa.  The IFPMA has also appointed Dr. Stefanie Meredith (UK) as its new Director of Public Health Partnerships.  Dr. Meredith directed the Mectizan Donation Program and is an expert on neglected disease research. 

GSO is pleased to report a continued relationship with our summer intern, Meredith Bullamore from Villanova University, who is working in a consulting role as the Project Coordinator for the GSO Roundtable Series on Diabetes and Social Responsibility.  GSO also has two fall interns, Stefanie Berliant from the University of California-Davis (through the Kent State program in Geneva), who has contributed to this issue of GSO News, and Simma Reingold from Cornell University (through the Villanova and Boston University programs in Geneva), who will be joining us in October. 

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11.     Forthcoming Events

A listing of events in September and October 2006 taking place in Geneva unless otherwise indicated.

11-29 Sept                UN Committee on the Rights of the Child

17-18 Sept                 IMF/World Bank Public Seminar featuring “New Frontiers for the Private Sector in Development” (Singapore)

18 Sept                      Second Session of the Provisional Committee on Proposals Related to a WIPO Development Agenda (PCDA)

18-20 Sept                 ILO Tripartite Meeting on the Social and Labor Implications of the Increased Use of Advanced Retail Technologies

18-22 Sept                 States Parties to the Convention on the Prohibition of the Use, Stockpiling, Production and Transfer of Anti-personnel Mines and on Their Destruction

18 Sept-6 Oct            UN Human Rights Council

19 Sept                      International Day of Peace

19-20 Sept                 Annual Meetings of the IMF and World Bank Group (Singapore)

20-26 Sept                 World Water Week: “Beyond the River: Sharing Benefits and Responsibilities” (Stockholm)

22 Sept                      UNCTAD Trade and Development Board Civil Society and Private Sector Hearing

24 Sept                      World Heart Day

25-26 Sept                 WTO Public Forum 2006:  “What WTO for the XXIst Century?”

25 Sept-3 Oct            WIPO, Assemblies of Member States

26-27 Sept                Global Compact Annual Networks Forum (Barcelona)

27 Sept                      WTO Committee on Trade and Development

27 Sept-10 Oct          UNCTAD, Trade and Development Board, fifty-third session

28 Sept                      World Maritime Day: “The Sea’s the Future” (on the HQS Wellington, London)

4 Oct.                          WTO Committee on Trade and Development

6 Oct.                          WTO Council for Trade in Services

6-7 Oct                       Global Compact Policy Dialogue on Combating Discrimination and Promoting Equality (London)

9-18 Oct                     Conference of the States Parties to the Convention against Transnational Organized Crime and its Protocols, third session (Vienna)   

10-11 Oct                   WTO General Council

16-18 Oct                   UNCTAD, Expert Meeting on ICT Solutions to Facilitate Trade at Border Crossings and Ports

16 Oct-3 Nov             UN Human Rights Committee

17 October                 First GSO Roundtable on Diabetes and Social Responsibility

23-26 Oct                   ILO Tripartite Meeting on Labour and Social Issues Arising from the Cross-Border Mobility of International Drivers in the Road Transport Sector

30 Oct-2 Nov             Inaugural Meeting of the Internet Governance Forum (Athens)

30 Oct-3 Nov             Joint ILO/UNESCO Committee of Experts on the Application of the Recommendations concerning Teaching Personnel (CEART)

30 Oct-3 Nov             5^th session of the UN Committee on the Protection of the Rights of Migrant Workers and Members of Their Families

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In-Depth Issue:  CSR, Development and Trade

The Geneva Social Observatory and the Quaker United Nations Office are pleased to co-organize a roundtable on “Corporate Social Responsibility and the Doha Round:  Are There Win-Win Opportunities for the Private Sector and Developing Countries?” at the WTO Public Forum in Geneva on 25 September 2006.  The Forum is a two-day event on 25 and 26 September, with the theme: “What WTO for the XXIst Century?”  We seek to raise the following questions:

·    Are the trading interests of multinational enterprises and developing country governments diametrically opposed or is it possible to discern a positive relationship leading to economic growth and development? 

·    In looking for a win-win scenario, what are the circumstances that need to be met for a positive relationship to be achieved?

The roundtable will bring representatives from multinationals and trade associations together with trade negotiators from developing and least developed countries to debate these issues.  The roundtable is intended to promote dialogue on the interaction between private sector interests in the liberalization of trade and developing country interests in economic growth and development. 

In this in-depth piece, GSO News takes a look at some of the issues surrounding CSR and development, along with their potential to impact the Doha Round.  It should be noted that these are observations that come from the GSO perspective and do not represent the views of QUNO.  We are happy to be working closely together on the forthcoming roundtable and believe that the two organizations have very complementary views, but we are only expressing what we see to be the GSO perspective in this article.

We see the growing importance of CSR globally and note how it is being channeled through such endeavors as the public/private partnerships for achieving the UN Millennium Development Goals or the voluntary initiatives of the UN Global Compact.  Is it possible and/or desirable to facilitate a Doha Round which achieves a mutually beneficial outcome by emphasizing the linkages between CSR and development?

In considering what the linkages might be, one must start with an understanding of what is meant by CSR.  As Halina Ward noted in a recent study of CSR in the UK, there continues to be a lack of a single agreed definition of CSR, and this “has become a real blockage in building understanding on how best to move forward”.^[1]  She notes the different opinions that have been expressed about the centrality of CSR to the “business case” – and how important it is to prove a correlation between CSR and the financial bottom line.  Another issue has been the extent to which government has what she describes as “a role in framing the agenda.” 

While definitions do vary, there are a couple of useful definitions that emphasize the business impact on development and sustainable livelihoods.  From Business in the Community , CSR is defined as the management of: "a company's positive impact on society and the environment through its operations, products or services and through its interaction with key stakeholders such as employees, customers, investors, communities and suppliers."^[2]  And from the World Business Council for Sustainable Development, CSR “is the continuing commitment by business to contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.”^[3]  These definitions emphasize the interaction between business and the societies in which they operate.  While shareholder value in its narrow sense is often seen as contrary to CSR, these definitions suggest that shareholder value has a much broader meaning.  As Ian Davis, the worldwide managing director of McKinsey & Company wrote in The Economist recently, shareholder value should be a longer-term view that makes it clear that “business’s ultimate purpose” is “the efficient provision of goods and services that society wants.” ^[4] Mr. Davis gives some examples of what this really means, including the importance of ensuring that “aid and trade regimes successfully promote the development of Africa and other poor regions.”  GSO would suggest that the efficient provision of goods and services that society wants is an applicable measure of business’s ultimate purpose in all countries at all levels of development.  

This leads to a brief point on how one should define development.  As defined in the Millennium Development Goals of the UN, this encompasses both growth and poverty reduction, as well as a more equitable distribution of global benefits.  In the framework of the Doha Development Agenda, these are to be realized through increased exports of goods and services and integration into the multilateral trading system, thereby benefiting from liberalized trade and increased market access.^[5]  What is more, one of the eight MDGs is specifically directed at the promotion of partnerships with the private sector.  This has led to quite a bit of attention to how to engage the private sector in the global effort to promote growth and eradicate poverty in developing countries. 

Secretary-General Kofi Annan appointed a Commission on the Private Sector and Development to address this very issue.  Its report, Unleashing Entrepreneurship:  Making Business Work for the Poor (UNDP 2004), concluded that “the savings, investment and innovation that lead to development are undertaken largely by private individuals, corporations and communities.”   

Although, as the Commission affirmed, “Primary responsibility for achieving growth and equitable development lies with developing countries” per se, and not any private entity, the Commission also noted in its report that the private sector can be called upon to “contribute to accelerated economic development and to poverty alleviation.”^[6]  It cited four areas for this, as follows:

(1)   Channel private initiative into development efforts – knowledge, expertise, resources and relationships;

(2)   Develop linkages with multinational and large domestic companies to nurture smaller companies – to gain      access to markets, financing, skills and know-how;

(3)   Pursue business opportunities in bottom-of-pyramid markets; and

(4)   Set standards – a genuine commitment to sustainable development – with a sharp focus on corporate governance and transparency.

These four areas merit a continuing debate on where and how such initiatives should be implemented.  Is there a WTO role to assess the extent to which the WTO rules for an open trading system contribute to these kinds of opportunities?  Is it sufficient to rely on creating such kinds of opportunities?  Or is there more that needs to be done to ensure a positive interaction between private sector actions and development?

Efforts to implement the MDGs have included a number of partnering initiatives that have been coordinated by the UN Development Program.  In the UNDP 2006 Annual Report, examples are given of the Growing Sustainable Business initiative.  These examples are encouraging businesses “to participate in pro-poor development by the prospect of long-term expansion of markets.”^[7]  The win-win concept.  As noted in the UNDP report, the UN Global Compact is directly involved in this initiative.  Not only does the Global Compact have a set of ten principles involving human rights, labour and environment that participating companies are expected to internalize, but the second objective of the Global Compact is “to engage in partnership projects in support of global development goals.”^[8]  Thus, the Secretariat for the Global Compact collects reports and case studies on partnering and market creating projects from companies like Unilever and Hewlitt Packard, who are represented on our GSO/QUNO roundtable. 

Such partnering has been the focus of programmes under the leadership of President Jacques Chirac (the June 2005 Seminar on “the Business Contribution to the MDGs” in Paris), the IBLF (Business Models for Meeting Development Challenges in May 2005 in London), and the 10^th International Business Forum (Business and the MDGs:  An Active Role for Globally Responsible Companies” Sept. 2005).^[9]  In Geneva, both the World Business Council on Sustainable Development and the World Economic Forum have supported the MDGs.^[10]  The continuing involvement of the World Bank Group, its International Finance Corporation and the International Monetary Fund can be illustrated at its 2006 annual meetings in Singapore, where the public forum has included “Raising the Stakes:  New Frontiers for the Private Sector in Development” and “Business Reaching the Poor:  The Asian Experience in Expanding Market Opportunities”.^[11]  Today, more than ever, the Bank and Fund program asserts, good corporate citizenship is tied to the bottom line.

On the other hand, CSR and development are not planting a worldwide bed of roses.  As the International Institute for Environment and Development (IIED) has observed, “Expansion of trade and investment offers certain benefits.”  It does provide the opportunities to increase national income (at least in the aggregate), to increase efficiency in resource allocation and to disseminate more efficient and environmentally friendly technologies.  But, says IIED, “It has certain negatives as well” – such as numerous instances of likely commodity dependence, the dangers of resource depletion and environmental degradation, and, most disturbingly, of more income inequality  both within countries and between parts of the world.^[12]   A stronger statement comes from a group of anti-poverty and environment campaigners who oppose the restarting of the Doha Round at all because the “WTO’s corporate driven agenda” is aimed at the “corporate carve-up” of natural resources, the destruction of infant industries and the further impoverishment of millions of poor farmers.^[13] 

Many other NGOs have also been raising concerns about the uncertainty of trade liberalization on job growth and the need to measure its impact in terms of how it might generate sufficient, stable and well-paying jobs.^[14]  While one must return to the earlier observation that the primary responsibility for development rests with the developing countries themselves, there are still questions to be answered about the appropriate role of the private sector in identifying a match between its interests and the interests of developing countries. 

The Aid for Trade Task Force has proposed a number of steps that reinforce the importance of the linkage between private sector actions and development priorities.^[15]  The Task Force has noted the lack of private-sector involvement in identifying trade needs and contributing resources.  Also, says the Task Force,  the private sector has the expertise on what it means to build productive capacity and should be mobilized so as to engage them in the topic.  And more basically, the Task Force urges that the private sector should be encouraged to report on what they are doing to contribute to development and capacity building for trade.  These are recommendations that could be more fully developed by the roundtable participants. 

In conclusion, Secretary General Kofi Annan has said, “Let us choose to unite the power of the market with the authority of universal ideals.” ^[16] The implication here is that we have to make the choice to do this, that it won’t happen automatically.  The power of the market depends on governments to define the framework, to assert the authority for the implementation of universal ideals.  But also, the authority of these ideals depends on harnessing the power of the market to achieve the kind of economic growth and development that we all strive for.  The challenge is before us to identify what it will take to create the kinds of “win-win” opportunities that can effectively harness that power of the market with the ideals of sustainable and equitable development for all. 

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