biac annual report_2014_final_digital

A N N U A L R E P O R T 2 0 1 4

A BUSINESS AGENDA FOR OPEN MARKETS, INVESTMENT, andSUSTAINABLE GROWTH

The Business and Industry Advisory Committee to the OECD

Comité consultatif économique et industriel auprès de l’OCDE

A N N U A L R E P O R T 2 0 1 42

TABLE OF CONTENTS

OPEN FOR BUSINESS – A WORD FROM THE BIAC LEADERSHIP

CELEBRATING JAPAN’S 50TH ANNIVERSARY AT THE OECD

A MESSAGE FROM THE OECD SECRETARY GENERAL

THE BUSINESS AGENDA FOR 2014 AND BEYOND

FOCUS AREAS

ECONOMIC POLICY, FINANCIAL MARKETS, AND STRUCTURAL REFORMS

INTERNATIONAL TAXATION

EMPLOYMENT, JOB CREATION, AND SKILLS

TRADE AND INVESTMENT

PUBLIC AND CORPORATE GOVERNANCE

EMERGING AND DEVELOPING ECONOMIES

INNOVATION AND TECHNOLOGY

SUSTAINABLE DEVELOPMENT AND GREEN GROWTH

HIGHLIGHTS

THE BIAC BOARD

BIAC SECRETARIAT

BIAC POLICY GROUPS

THE BIAC NETWORK

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A N N U A L R E P O R T 2 0 1 42

OPEN FOR BUSINESS A word from the BIAC Leadership

Dear Colleagues and Friends of BIAC,

It would be commonplace to say that

we live in extraordinary times. But it may

not be an exaggeration to assert that we

face extraordinary challenges. We are still

coping with the fallout of the most profound

global economic crisis in our times and the

distinct dynamics driving the global and

increasingly digital economy.

If there is one institution that can help us all

to better understand how our economies

work and how we can leverage our

economic potential, it is the OECD with a

stellar record of evidence-based analysis

and peer reviewed policy advice.

Obviously, new times and challenges

call for new ways of thinking. The OECD

stood up to the task and introduced the

multifaceted debate on New Approaches

to Economic Challenges (NAEC). BIAC

is strongly engaged in this ongoing

and sophisticated exercise because we

believe that, in spite of all complexities,

the fundamentals that drive our economies

to develop and grow still apply. We note

with great satisfaction that the report

that was presented to OECD Ministers

in May reflects well on the need for

structural reform and the benefits of

open and competitive markets. We say

it loud and clear: only the private sector

with its great potential for innovation and

entrepreneurship can lead the way to more

growth and employment in our economies.

This year, we celebrate the 50th anniversary

of Japan’s OECD membership under the

motto “Resilient Economies and Inclusive

Societies – Empowering People for Jobs and

Growth”. This theme resonates well with our

call for bold economic reforms that will lead to

more sustainable growth, entrepreneurship,

and employment. Since 1964, the Japanese

government and private sector have actively

contributed to the work of the OECD. We

are very proud to count Keidanren and BIAC

Japan, chaired by Katsutoshi Saito, among

our most active members. Their support for

the contribution of BIAC to the 2014 OECD

Ministerial and related consultations in Tokyo

is much appreciated.

Of course, we are also challenged to

answer some other fundamental questions.

What can business do to support the

environment? How can we promote

responsible business conduct in global

markets? How do we look at the particular

challenges and opportunities that come

with the digital economy? And how do

we respond to the call for a sustainable

international tax system?

BIAC can only engage in all these debates

because of the commitment of our

members and the expertise they offer

throughout the year.

The ambitious OECD Action Plan on

international taxation, also known as Base

B I A C - T H E V O I C E O F B U S I N E S S A T T H E O E C D 3

Erosion and Profit Shifting, is a case in point. It requires a

massive effort from governments and business to develop

a framework for international taxation that is conducive

for growth and does not discourage investment and cross

border trade. We currently also engage in the review of the

OECD Principles on Corporate Governance and the update

of the OECD Policy Framework for Investment (PFI), to

name only a few.

The mission to spread good economic governance to mature

and emerging economies is among our priorities. Responding

to the challenging agenda of the OECD, we rely on members

and observers who will also carry the perspective of smaller

and medium sized companies. With the support of the

Australian Chamber of Commerce and Industry (ACCI), BIAC

is deeply involved in the consultations of the Australian

B20 preparing business input to this year’s G20 summit in

Brisbane. We also support the OECD Southeast Asia Regional

Programme launched in May at the Ministerial. This program

will give governments in the region important guidance to

connect and develop their dynamic economies for the benefit

of businesses and people.

Looking ahead, we count on the leadership of the OECD as

a powerful agent for efficient and productive markets, sound

and consistent policies, and for good economic governance.

With the support of our members, we are prepared to

contribute to the continued success of this mission.

Phil O’Reilly

—BIAC Chair

Bernhard Welschke

—BIAC Secretary General

A N N U A L R E P O R T 2 0 1 44

CELEBRATING JAPAN’S 50th ANNIVERSARY AT THE OECD The year 2014 marked the 50th anniversary of Japan’s accession to the OECD. In this

commemorative year, Japan had the honor to chair the Ministerial Council Meeting, and

Prime Minister Shinzo Abe and four Ministers participated in the MCM.

Under the theme of “Resilient Economies and Inclusive Societies – Empowering People

for Jobs and Growth”, we shed light on ways to empower people to achieve sustainable,

balanced and inclusive growth, as well as resilient economies and societies. Enhancing the

OECD’s global relevance, notably through strengthening partnerships with Southeast Asia,

was another highlight and the Southeast Asia Regional Programme was formally launched

with the attendance of the Japanese Prime Minister and Southeast Asia representatives

including five Ministers.

Prime Minister Abe, in his keynote address, quoted George Marshall, United States Secretary

of State, who said that “any assistance… should provide a cure rather than a mere palliative”,

emphasizing the importance of expanding fair and impartial rules widely around the globe.

BIAC has accompanied us by providing valuable input, starting from the preparatory phase

of the MCM, including the Consultation Meeting in Tokyo. I would like to sincerely express

our appreciation for the business insight provided by BIAC and look forward to our continued

close collaboration.

Ambassador Kazuo Kodama

Delegation of Japan to the OECD


Each year our engagement with BIAC gains strength and importance. At a time

when we are gradually exiting the crisis, the challenges confronting us remain

substantial and threaten to undermine the recovery. The role of business is

paramount in battling the legacies of the crisis, in promoting sustainable, green

growth and in unlocking the opportunities for much needed job creation.

In this respect, over the past twelve months, under the skilful leadership of its

Chairman, Phil O’Reilly, and Secretary General, Bernhard Welschke, BIAC has

been extremely active in advising and providing useful insight to many areas of

the OECD’s work.

We greatly appreciate and value BIAC’s active participation in the development

and implementation of the BEPS Action Plan; its contribution to the NAEC Synthesis

Report for our Ministerial Council Meeting in May 2014; its work in highlighting the

importance of investment liberalisation, which is essential to unlocking economic

growth and battling unemployment; in helping us set the stage for strengthening

the global dialogue on corporate responsibility, through the OECD Global Forum

on Responsible Business Conduct; and in identifying trade priorities to reinvigorate

multilateral trade negotiations and speed up the movement of goods and services

across borders.

We have every confidence that in the coming months and years we can continue

to develop this productive course together and support our member and partner

countries’ efforts to create more sustainable and resilient economies with equal

opportunities for all.

Angel Gurría

Secretary-General of the OECD

A MESSAGE FROM THE OECD SECRETARY-GENERAL

A N N U A L R E P O R T 2 0 1 46

THE BUSINESS AGENDA FOR 2014 AND BEYONDThe revival of the global economy from the 2008-09 financial and economic crises

remains slow, uneven, and fragile. Business is a key partner in unlocking recovery

and growth, and BIAC is actively working with OECD to help policymakers achieve

bold reforms. As a return to business confidence is a precondition for recovery,

BIAC advises OECD on solutions for greater policy consistency and predictability.

Business is a growth engine for the world economy and our unique collaboration

with the OECD brings the business perspective to the table.


INNOVATION TO FOSTER GROWTH Continued emphasis on innovation is a

crucial prerequisite for long-term growth

and development, and for promoting

sustainable growth.

SUSTAINABLE DEVELOPMENT AND GREEN GROWTHOECD governments should foster growth

and economic opportunities to address

global challenges and to ensure that the

necessary investments for greening our

economies will come forward.

A MORE PREDICTABLE ENVIRONMENT FOR INTERNATIONAL TAXATIONMore than ever, business depends on a

predictable tax environment. Ensuring

stable, transparent, non-distortive

frameworks for taxation is essential to

encourage and attract cross border trade

and investment.

EFFECTIVE CO-OPERATION AT GLOBAL LEVELEmerging and developing countries

should build business-friendly

environments through the good use of

OECD instruments and best practices.

BALANCED ECONOMIC POLICIES, STRUCTURAL REFORMS, AND A SOUND FINANCIAL SYSTEM FOR GROWTHGovernments should commit to macro-

economic cooperation and bold structural

reforms to product and labor markets, and to

greater coordination of financial regulatory

approaches. These goals can be achieved

through deep dialogue among governments,

regulators and business as well as evidence-

based and independent analysis.

STRENGTHENED JOB CREATION AND EMPLOYABILITY OF INDIVIDUALSTo create jobs and drive growth, business

needs the reduction of labor market

rigidities, as well as a strong focus on

improving education systems to boost the

skills and employability of individuals.

OPEN, COMPETITIVE MARKETS AND FREEDOM OF INVESTMENTOECD governments should take determined

steps to counter the proliferation of new

and recurring protectionist measures.

OECD should take a leading role in the

international debate on freedom of cross-

border trade and investment.

GOOD GOVERNANCEOpen markets and a level playing field for

competition also requires sound legal and

regulatory frameworks as well as good

corporate governance, and responsible

business conduct.

A N N U A L R E P O R T 2 0 1 48

ECONOMIC POLICY, FINANCIAL MARKETS, AND STRUCTURAL REFORMS The global economic recovery has been too slow, fragile, and uneven. The key to unlocking strong and sustained growth lies largely in reforms that help to unleash and fuel business.

F O C U S A R E A

NEW ECONOMIC TIMES, NEW

CHALLENGES:

Faced with new and unprecedented

economic, political, social and

environmental challenges witnessed

since the onset of the 2008-09 global

economic crisis, the OECD’s New

Approaches to Economic Challenges

(NAEC) process seeks to improve

upon and update OECD advice to

policymakers. At the December 2013

and February 2014 meeting of the

NAEC Group, BIAC offered guidance

to the NAEC process in order to help

develop more effective and more

structured ways for companies to deal

with the complexities and challenges

that they encounter in global markets.

THE MACRO PICTURE:

With business investment and trade still

far below pre-crisis levels, and continued

high unemployment in many countries,

BIAC engages in regular dialogue

with the Chair of the OECD Economic

Policy Committee and the OECD Chief

Economist. At the biannual meeting

of April 2014, BIAC drew the attention

of policymakers to business concerns

about the state of the global economy

and priorities for action. The OECD’s

leading flagship publication – the OECD

Economic Outlook – also benefits from

BIAC’s expertise on such issues.

FINANCING GROWTH:

Financing is critical in supporting

our growth aspirations. However,


companies are concerned that too little

attention is being paid to the possible

consequences of financial regulations on

economic growth. Start-ups and small- and

medium-sized enterprises (SMEs) may be

particularly affected, finding it harder to

access financial services. BIAC calls for a

more coordinated approach to financial

regulation that considers economic growth,

financial stability, and investment. BIAC also

encourages more independent analysis

of the combined impacts of different

regulatory approaches around the world.

STRUCTURAL REFORMS TO OUR ECONOMIES:

As fiscal and monetary options to revive

growth become exhausted, the OECD is

making the case for bold structural reforms

to product and labor markets in countries –

for example, reforms to reduce regulatory

burdens, liberalize markets for trade and

investment, improve public sector efficiency,

and strengthen human capital, among

others. Through a regular survey exercise

of its national member and observer

organizations, BIAC contributes detailed

country-specific priorities to major OECD

analyses, such as the Going for Growth

publication series, in order to spur national

governments to implement pressing reforms.

THE BIAC ECONOMIC POLICY SURVEY 2014

BIAC conducted a membership

survey on the implementation of

structural reforms in OECD countries.

This survey shows that, in order to

unlock growth, reforms are needed

to reduce the regulatory burden on

companies, but also to increase public

sector efficiency and strengthen

human capital, among others.

However, only 4% of last year’s OECD

recommendations are considered to

have been fully implemented.

Read more on www.biac.org

A N N U A L R E P O R T 2 0 1 41 0

INTERNATIONAL TAXATION More than ever, business depends on a predictable tax environment. Ensuring stable, transparent, non-distortive frameworks for taxation at both domestic and international levels is essential for attracting investment.

INTERNATIONAL TAXATION:

Business looks to OECD as the standard

setter for international tax principles.

The OECD Model Tax Convention and

Transfer Pricing Guidelines underpin

international tax policy that supports

growth, trade, and investment. The

development of an OECD International

Framework for VAT/GST currently

underway will add to this important

OECD guidance. In 2014, OECD and

BIAC supported the development of a

new G20 Common Reporting Standard

(CRS) for the automatic exchange of

information. BIAC is actively engaged in

dialogue around the OECD tax standards,

which are critical to effective and efficient

tax administration and certainty for

international business.

BASE EROSION AND PROFIT SHIFTING:

In recent years, globalization has been

placing pressure on the international

tax system, raising concerns about both

double taxation and double non-taxation

and the viability of OECD international

tax standards. As a result, in July 2013,

the OECD launched its project on Base

Erosion and Profit Shifting (BEPS),

endorsed by the G20. BIAC is present at

every step of this project. In the current

context, the BEPS project presents an

opportunity to restore public and private

sector confidence in the corporate

taxation system, by undertaking review

and analysis to ensure that tax rules

are up to date, without dampening the

potential for private sector growth and

job creation through cross-border trade

and investment.

The BEPS Action Plan sets out 15 areas

of work to be undertaken across a

range of tax issues, including the digital

economy, transfer pricing, coherence

of corporate income taxation, as well

F O C U S A R E A

B I A C - T H E V O I C E O F B U S I N E S S A T T H E O E C D 1 1

as transparency, certainty and predictability

of taxation to be completed by December

2015. BIAC is a strong supporter of OECD

involvement: the OECD is the right place for

the BEPS analysis to take place and BIAC

advocates that these changes must be

done on the broadest possible international

basis through the G20 and beyond,

to ensure a level playing field in the

global economy. This will be essential to

harnessing the greatest potential for trade

and investment by all players in the global

economy – developed and developing

countries alike.

BIAC AS A KEY PARTNER:

BIAC is working with its Members and

Observer members to engage OECD

and governments in the BEPS project in

innovative ways and use the BIAC network

at the highest political level to advance

understanding of current business models

relative to issues being addressed in the

BEPS project. Importantly, OECD has also

brought in G20 and developing countries

into the BEPS process on equal footing.

BIAC strongly supports this approach,

which is essential for fostering broader

international consensus on tax issues, and

most recently met with tax authorities on

BEPS in India, China and Brazil, Australia,

Japan and the United States, at the OECD

BEPS Regional Conferences in Korea and

Colombia, and at the G20 International Tax

Conference in Tokyo.

“BIAC engages OECD on a broad range of international tax issues, including the BEPS project, to ensure that OECD effectively removes all distortions from the international tax system while continuing to support the OECD’s core mission of fostering cross-border trade and investment.”

William Morris

GE International Inc. and Chair of BIAC Taxation Committee.

A N N U A L R E P O R T 2 0 1 41 2

EMPLOYMENT, JOB CREATION, AND SKILLS Persistently high unemployment in many economies, particularly among young people, and the consequences of long-term unemployment, remain serious concerns for business. The OECD Jobs and Skills Strategies provide valuable frameworks for addressing necessary labor market reform and employability challenges.

ENCOURAGING EMPLOYMENT:

BIAC advocates that employment

strategies be comprehensive –

they must support job creation,

activate people into work, enhance

employability, and instill confidence for

business to hire. More structural reform

is needed in many economies and

should aim to support flexibility in labor

markets, necessary for companies and

individuals alike to adapt to changes

and opportunities in today’s workplace

and invest in creating more jobs. This

was also a key message of the BIAC/

IOE/B20 contribution to the G20 under

the Russian Presidency and remains a

focus of BIAC’s engagement to the B20

Human Capital Task Force during the

Australian G20.

ENHANCING EMPLOYABILITY:

BIAC’s contributions to the OECD

Committee on Employment Labour

and Social Affairs (ELSA) continue to

emphasize that flexibility in labour

markets should be balanced with

appropriate employment, education

and social benefit systems that serve

to maximize work opportunities and

mobility for all groups. Regulatory

frameworks, including employment

protection and tax and benefit systems,

must provide incentives – and not

disincentives – to employment,

entrepreneurship and enterprise growth.

PROMOTING GENDER EQUALITY:

Women’s economic empowerment

contributes to the vitality of business

and our economies. BIAC launched

F O C U S A R E A


the second phase of its work on Gender

Equality with a 2013 business survey.

Results show that progress is slow and

dependent on top business leadership

– more action is needed. The survey

workshop was presented at a BIAC

workshop on Women’s entrepreneurship

in June 2014.

FOCUS ON YOUTH:

In response to the OECD Action Plan on

Youth and G20, BIAC jointly with IOE, the

International Organization of Employers,

launched the Global Apprenticeship

Network (GAN), which aims to increase

the scope and scale of apprenticeship

programs and job training opportunities

for youth. The GAN and company training

initiatives were featured at an April 2014

OECD/EU/G20 Workshop, which also

highlighted the B20/L20 Joint Principles for

Quality Apprenticeships.

STRENGTHENING SKILLS:

Access for all groups to quality education,

from early childhood through to adult

education, is a critical factor for lifelong

employability in OECD, emerging and

developing economies alike. It also bears

important implications for productivity,

innovation, and reducing income inequality.

A major BIAC survey of 28 national employer

organizations, released in June 2013, found

that employers seek greater co-operation

with education policymakers and institutions

at all levels of learning in order to build

closer synergies with labor market needs.

Results from the BIAC survey will feature in a

dedicated chapter in a new OECD education

policy publication to be released later in 2014.

“BIAC’s 2014 Gender Report highlights that empowering women at work, in education, and as entrepreneurs benefits business, our economies and society as a whole.”Ronnie Goldberg USCIB, Chair of BIAC Employment, Labor and Social Affairs Committee


A N N U A L R E P O R T 2 0 1 41 4

TRADE AND INVESTMENT Trade and investment policies continue to be a cornerstone of BIAC’s engagement with the OECD. By facilitating international policy coordination, OECD is in a unique position to help its member and non-member economies adopt policies that lead to growth.

F O C U S A R E A

INTERNATIONAL BUSINESS DIALOGUE AND ENGAGEMENT POST BALI:

The Trade Facilitation Agreement

announced in Bali in December

2013 offers a very much needed

opportunity for countries to

reinvigorate multilateral trade

negotiations and to speed the

movement of goods and services

across borders. Implementing Bali

and reducing the costs of trade

is essential, as the changes to

transportation and communications

technology over the past twenty years

have transformed the way companies

deliver products and services – a

paradigm shift captured in the

OECD work on Global Value Chains

(GVCs). In April 2014, BIAC and OECD

jointly organized an International

Business Dialogue on international

regulatory cooperation where

business representatives exchanged

views on how regulatory cooperation

can enhance trade. With its global

membership, BIAC also developed a

focus document that identifies nine

priorities on trade going forward.

ENSURING FREEDOM OF INVESTMENT:

BIAC is working closely with the

OECD to highlight the fundamental

importance of investment liberalization.

New restrictive measures are being

introduced and foreign investors

are witnessing a revival of restrictive

foreign investment regulation. Bilateral

Investment Treaties (BITs) and Investor-

State Dispute Settlement (ISDS), which

play a crucial role for the protection

of investment, have increasingly

come under attack. OECD advice and


leadership is needed as our economies

cannot afford to lose crucial instruments

that mitigate risk in international investment

decisions. Throughout the year, BIAC

has forcefully advocated for freedom of

cross-border investment: at a special focus

session on investment of the BIAC Board,

at the annual consultation with OECD

Ambassadors, and in our interactions with

the OECD Investment Committee. BIAC

has also contributed to discussions on the

update of the OECD Policy Framework

for Investment (PFI), which provides a

comprehensive and systematic approach

for improving investment conditions in non-

member countries.

FOSTERING RESPONSIBLE BUSINESS CONDUCT:

BIAC considers responsible business

conduct as promoted by the OECD

Guidelines for Multinational Enterprises

(MNEs) an essential part of an open

investment climate. BIAC has therefore

worked in partnership with the OECD to

promote implementation of the Guidelines

in multiple events. BIAC has also underlined

the importance of a correct understanding

of the role of National Contact Points, of

the extent and limitations of supply chain

responsibilities, and of the role of the

proactive agenda of the Guidelines.

“For business, the OECD is key to promote an open international investment climate. Together we implement our pro-active investment agenda.”

Winand Quaedvlieg

VNO-NCW, Chair of BIAC Investment Committee

BIAC RELEASES ITS BUSINESS PRIORITIES ON TRADE“Our business priorities on trade clearly identify emerging policy issues that

matter to OECD, governments, and our business community. Localization

barriers to trade, the movement of business persons, and trade in services

are a few examples from our paper where OECD can deliver new evidence

to help policymakers in their reform agendas. These recommendations are

crucial as governments look for ways to implement the Bali package and to

create jobs and growth opportunities.”

Clifford Sosnow, Partner at Fasken Martineau DuMoulin LLP,

Chair of BIAC Trade Committee


A N N U A L R E P O R T 2 0 1 41 6

PUBLIC AND CORPORATE GOVERNANCE The promotion of legal and regulatory systems that are stable, transparent, efficient, and non-distortive, contributes to opening markets and to levelling the playing field for business. BIAC sees good governance as a key business enabler.

IMPROVEMENTS IN REGULATORY POLICY:

Sound procurement rules, transparent

public investment, and the overall

consistency of the regulatory

framework are essential areas to

address when it comes to securing

a business friendly environment.

Actively contributing to the work of

the OECD, BIAC was present at the

Territorial Development Ministerial

meeting in December 2013 in Marseille.

The BIAC Governance Committee

also participated in the follow up

activities on the Measuring Regulatory

Performance project to help OECD

countries implement an ambitious

regulatory policy reform agenda. BIAC

also participated in an expert meeting

in The Hague in June 2014 to discuss

progress and next steps on the project,

which hopes to allow governments

and business to engage in earlier

consultation in the law-making process,

improved assessments of costs and

benefits of new regulation, and a

systematic evaluation of regulations

in force to ensure they serve current

policy environments.

UPDATE OF THE OECD CORPORATE GOVERNANCE PRINCIPLES:

The OECD Corporate Governance

Principles are widely recognized by

policy makers and business as a key

international point of reference and

form the basis of countless local codes

of corporate governance around the

world. BIAC is actively contributing to

the update of the current Principles.

F O C U S A R E A


To provide first-hand input early in the

process, BIAC organized a high-level

roundtable in November 2013 and is

providing both strategic and specific

comments throughout the consultation

process. BIAC is also involved in the

revision of the OECD Guidelines on

Corporate Governance of State-Owned

Enterprises (SOEs). The update will have

a long-term influence going forward

and needs to benefit from the active

contribution of the private sector to

reflect business realities.

ADDRESSING BRIBERY AND

CORRUPTION:

The OECD Anti-Bribery Convention

and related instruments have clearly

positioned the OECD as a leading

“BIAC has a key role to play in further developing the anticorruption agenda of the OECD, especially in promoting new and innovative ideas how to fight corruption by rewarding compliance efforts of companies and fostering the dialogue between public and private sector.”

Dr. Klaus MoosmayerSiemens AG, Chair of the BIAC Task Force on Anti-Bribery/Corruption

institution in the international fight against

corruption. BIAC has been an active partner

facilitating business participation in the

OECD monitoring process in adhering

countries. BIAC highlighted key business

considerations and the proactive role

companies can play at the annual meeting

with the OECD Working Group on Bribery

celebrating 15 years of the Anti-Bribery

Convention in December 2013 as well as at

the OECD Integrity Forum in March 2014.

BIAC also continued its active involvement

in the B20 process and participated in

the annual OECD/G20 anti-corruption

conference. Going forward, BIAC will provide

strategic input on the implementation of the

Convention, calling for increased focus on

encouraging collective action and rewarding

compliance efforts.

A N N U A L R E P O R T 2 0 1 41 8

EMERGING AND DEVELOPING ECONOMIES Companies continue to face a number of obstacles when operating in emerging and developing economies. BIAC supports the OECD – a knowledge partner and hub of good policy practices – in its work to promote an enabling environment for growth and development around the world.

LEVELLING THE PLAYING FIELD:

The accession of new countries to

OECD membership offers a very

thorough means for levelling the

playing field for business internationally.

In May 2013, the OECD Ministerial

Council opened membership talks with

Colombia and Latvia, and indicated

its intention to follow with Costa Rica

and Lithuania in 2015. BIAC is currently

preparing a paper that presents

business priorities for key reforms

to be addressed during Colombia’s

membership talks.

FORGING COOPERATION:

The OECD’s enhanced cooperation

with major emerging economies

and strategic regions presents an

opportunity to heighten international

regulatory coordination and share

good policy practices, thereby

helping businesses to navigate more

efficiently in and across markets. In

this context, BIAC participated actively

in the inaugural OECD Southeast Asia

Regional Forum, in Bali in March 2014,

and presented regional policymakers

with business priorities for reforms.

Recognizing China’s deepening

cooperation with the OECD over

the past year, BIAC is also preparing

contributions to the OECD’s forthcoming

work on China’s 13th Five Year Plan

as well as the next OECD Economic

Survey on China. BIAC is furthermore

participating actively in OECD regional

programmes in Eurasia, the Middle East

and North Africa (MENA), among others.

F O C U S A R E A


FUELLING DEVELOPMENT:

Countries now recognize more than ever

before that a thriving private sector is

an irreplaceable vehicle for achieving

sustainable and inclusive development. This

was most recently highlighted at the High-

Level Meeting of the Global Partnership for

Effective Development Cooperation, held

in Mexico City in April 2014. But companies

on the ground in many developing countries

continue to face barriers that prevent

them from investing and hiring. With the

Millennium Development Goals (MDGs)

set to expire next year, BIAC encourages

governments to make full use of the OECD’s

expertise, instruments, and advice, in order

to help formulate new targets by which

countries will measure their progress for

years to come.

“Recognizing that China’s success in the 21st Century depends to a large extent on enabling the market to play a bigger role, the contributions of BIAC are more important than ever to China-OECD co-operation.”

Joerg WuttkeBASF, Chair of BIAC China Task Force

A N N U A L R E P O R T 2 0 1 42 0

INNOVATION AND TECHNOLOGYBIAC’s horizontal work on innovation and technology ensures OECD’s work on science, technology, and innovation focuses on creating value and addresses global challenges.

INNOVATION IN THE HEALTH SECTOR:

BIAC actively participated in major

meetings of the Committee on Science

and Technology Policy and is identifying

opportunities for business engagement

in international fora in a wide range of

topics. Notably, the BIAC management

joined a high-level meeting at the

margins of a G8 Summit on Alzheimer’s

together with the CEO initiative on

Alzheimer’s to identify areas in which

governments and the private sector can

join forces to accelerate the fight against

this disease. BIAC also contributed to

several OECD projects in the field of

health policy, providing perspectives

and insights on e-health, the spread of

non-communicable diseases, access to

innovation, prevention policies to reduce

harmful use of alcohol, among others.

Over the next year, BIAC will work to

develop a proactive agenda on health

policy to better show governments and

health stakeholders how the private

sector can be part of the solution in the

health ecosystem.

NANOTECHNOLOGY AND BIOTECHNOLOGY:

The OECD is also at the forefront of

international efforts to improve global

understanding of the responsible

development of nanotechnology and

biotechnology. In addition to its active

involvement in addressing environment,

health, and safety issues relating to

these technologies, BIAC has been

contributing to discussions on how

to foster innovation in the fields of

biotechnology and nanotechnology,

which impact an increasing number of

industry sectors and are key enablers

for sustainable growth.

F O C U S A R E A


LEVERAGING BENEFITS OF THE DIGITAL ECONOMY:

Information and Communications Technologies

(ICT) underpinning the Internet and the digital

economy constitute fundamental building blocks

for global growth, competitiveness, enhanced

productivity, and job creation. The OECD Internet

Policy Making Principles, as well as OECD

Guidelines addressing online privacy and security,

developed with the input of BIAC, are for business

a key reference for global discussions on Internet

Governance. Policies affecting the development

and use of ICTs are evolving quickly around the

world and trust is imperative to realising the full

potential of developments afforded by the digital

age. BIAC contributes to OECD work in this field

to ensure that policies maximize growth and

innovations in the digital economy, including

frameworks for digital skills and entrepreneurship

and consumer protection. This was the backdrop

for a major 2013 BIAC USCIB OECD conference

in Washington, D.C., on “Growth, Jobs and

Prosperity in the Digital Age: OECD Shapes

the Policy Environment”, which served as a

leading discussion for planning towards an OECD

Ministerial meeting on the Digital Economy, to

take place in 2016 in Mexico.

BIAC’S INVOLVEMENT IN THE FIELD OF INNOVATION AND TECHNOLOGIES CONTRIBUTES TO:

• Taking a whole-of-government approach to

innovation

• Fostering an overall innovation-friendly

policy framework

• Gaining benefits from co-operation in

globally connected societies

• Fostering innovation for green growth and

addressing other global challenges

• Working with major non-member economies

A N N U A L R E P O R T 2 0 1 42 2

SUSTAINABLE DEVELOPMENT AND GREEN GROWTH Through its Green Growth Strategy, the OECD has made an important contribution to fostering policy coherence among different disciplines. BIAC works closely with the OECD to support a long-term strategy for greening growth built around stimulating innovation, new solutions, and an active role of business.

PROMOTING GREENER GROWTH:

Creating the right incentives for

business to invest is essential to

making green growth deliver. BIAC

therefore actively participated in the

2013 OECD Global Forum on Green

Growth and Sustainable Development,

which focused on creating the

right conditions for the necessary

investments to come forward. BIAC

also continues its engagement in

OECD climate change activities and

contributes to discussions on resource

productivity, including the current

project on elaborating new guidance

for extended producer responsibility.

SHARING THE BURDEN FOR

CHEMICALS TESTING AND

ASSESSMENT:

BIAC’s engagement in the OECD

environment, health, and safety program

remains strong. This program helps

reduce barriers to trade, optimizes the

use of resources, and saves over EUR

150 million Euros a year for business

and governments through cooperative

working on chemicals, pesticides,

biotechnology, and nanotechnology, thus

avoiding duplicative data requirements.

INCREASING THE SECURITY OF

FOOD, WATER, AND ENERGY:

As global demands for food, water and

F O C U S A R E A


energy are set to grow dramatically in the

coming decades, businesses will face both

costs and opportunities. Urgent actions

are needed to mobilise the investment,

innovation, good policy practices, and

consumer behaviours that will all be

necessary to meet these challenges. In this

context, BIAC is drawing the attention of

OECD policymakers to the importance of

efficient and sustainable management of

water resources and water re-use in the run-

up to the next World Water Forum in 2015.

Following the success of a joint OECD-BIAC

workshop on greening the agro-food chain

last year, BIAC is also contributing expertise

on approaches for increasing agricultural

productivity.

“BIAC supports our growing engagement with OECD, as the investment, innovation and competitiveness policies needed for more sustainable growth also require more effective cooperation between business and policy makers.”

Russel Mills

The Dow Chemical Company, BIAC

Environment Committee Chair

A N N U A L R E P O R T 2 0 1 42 4

HIGHLIGHTS

JUNE

BIAC participates in Global Forum on Responsible Business Conduct

BIAC attends International Conference on financial consumer protection organized by OECD, G20 and World Bank in Moscow

BIAC participates in the OECD Eurasia Ministerial Conference and at OECD Reflection Group on China

BIAC releases 2014 Education Survey and Perspectives on Private Sector Solutions to Food Waste and Loss

SEPTEMBER

BIAC organizes strategy meeting on Nanotechnology in Washington D.C.

BIAC participates in the OECD/IEA Global Forum on Climate Change

OCTOBER

BIAC holds International Business Dialogue with OECD and G20 Governments on the BEPS Action Plan

BIAC and Brazilian observer CNI hold Conference on International Taxation and BEPS in Brasilia

2013NOVEMBER

BIAC organizes High-Level Roundtable on Corporate Governance

BIAC Board members meet with OECD at focus session on Investment

BIAC and Turkish member TUSIAD lead International Conference on Innovative and Sustainable Agriculture in Istanbul

DECEMBER

The Global Apprenticeship Network (GAN) is launched by BIAC and IOE in Madrid

BIAC participates in the Global CEO Initiative on Alzheimer’s Disease (CEOi)

BIAC attends 3rd Meeting of the NAEC Group

BIAC speaks at Global Forum on Sustainable Development and Investment

A N N U A L R E P O R T 2 0 1 42 4


JANUARY

BIAC calls for structural reforms at Annual Consultation with OECD Ambassadors

FEBRUARY

BIAC speaks at conference on Corporate Governance of State Owned Enterprises

BIAC attends 4th Meeting of the NAEC Group

BIAC presents business views to regional conferences on the BEPS in Seoul and Bogotá

MARCH

BIAC participates in Integrity Forum and in the G20/OECD Task Force on Institutional Investors

BIAC is involved in the Development Assistance Committee at senior level and in the OECD Southeast Asia Regional Forum

BIAC and USCIB hold Workshop on Growth, Jobs and Prosperity in the Digital Age with OECD in Washington, D.C

BIAC releases The Case for a more Co-ordinated Approach to Financial Regulation

2014APRIL

In partnership with BIAC, OECD organizes 2nd International Business Dialogue on trade

BIAC supports 2nd OECD Global Forum on VAT held in Tokyo

BIAC attends High-Level Meeting of the Global Partnership for Effective Development Co-operation in Mexico City

BIAC participates in OECD/G20/EU Workshop on Apprenticeships and leads B20/L20 event on quality apprenticeships with OECD and G20 Governments

MAY

BIAC attends OECD Ministerial Council Meeting & Forum

BIAC General Assembly

BIAC releases 2014 Economic Policy Survey

BIAC contributes to event on OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas

JUNE

USCIB, BIAC and OECD hold Annual International Tax Conference in Washington, D.C.

BIAC launches Putting ALL our Minds to Work – An Assessment survey report and holds its first workshop on Women’s Entrepreneurship at OECD

BIAC participates in Global Forum on Responsible Business Conduct

BIAC contributes to Global Forum on Extended Producer Responsibility in Tokyo


Find more on www.biac.org

A N N U A L R E P O R T 2 0 1 42 6

THE BIAC BOARD

PHIL O’REILLY

CHAIRMAN

Chief Executive OfficerBusinessNZ(New Zealand)

BERNHARD WELSCHKE

SECRETARY GENERAL

Ex officio

CHARLES R. JOHNSTON

EXECUTIVE BOARD VICE CHAIR

Managing DirectorGlobal Government Affairs Citigroup, Inc.(United States)

DOMINIQUE MOCKLY


Senior Executive Vice President - Back End Business Group AREVA(France)

RANDOLF RODENSTOCK


Managing PartnerOptische Werke G. Rodenstock GmbH & Co. KG (Germany)

PETER LÖRINCZE


Vice President for International Relations ofTriGránit Development Corporation (Hungary)

MARIA CARMELA COLAIACOVO


PresidenteConfindustria Alberghi (Italy)

KATSUTOSHI SAITO


Chairman of Dai-Ichi Life Insurance Company Ltd.(Japan)

YOON KIM


Chairman & CEOSamyang Holdings(Korea)

JOSÉ IGNACIO MARISCAL


Chief Executive Officer of Grupo Marhnos(Mexico)

CHRISTOPH MÄDER


Member of the Executive Committee Syngenta International AG (Switzerland)


BIAC SECRETARIAT

BERNHARD WELSCHKE

SECRETARY GENERAL

HANNI ROSENBAUM

SENIOR POLICY MANAGER

NICOLE PRIMMER

SENIOR POLICY MANAGER

JONNY GREENHILL

POLICY MANAGER

ALI KARAMI-RUIZ

POLICY MANAGER

MAUD GARNIER

COMMUNICATIONS MANAGER

MARIE-THÉRÈSE DOS REIS

HEAD OF ADMINISTRATION/FINANCE AND ASSISTANT TO SG AND POLICY MANAGERS

SALETTE BELLAVOINE

POLICY MANAGER ASSISTANT AND LOGISTICS COORDINATOR

NATHALIE MAZIER

POLICY MANAGER ASSISTANT AND PUBLICATIONS COORDINATOR

A N N U A L R E P O R T 2 0 1 42 8

BIAC POLICY GROUPS

COMMITTEE ON COMPETITION

Ms. Lynda Martin Alegi

COMMITTEE ON ECONOMIC POLICY

Dr. Stephan Mumenthaler

COMMITTEE ON TAXATION AND FISCAL AFFAIRS

Mr. William Morris

TASK FORCE ON FINANCE

Mr. Kent D. Andrews

COMMITTEE ON TRADE

Mr. Clifford Sosnow

COMMITTEE ON INTERNATIONAL INVESTMENT AND MULTINATIONAL ENTERPRISES (MNE)

Mr. Winand L.E. Quaedvlieg

TASK FORCE ON EXPORT CREDITS

Mr. Steven W. Howlett

ECONOMIC POLICY AND TAXATION

COMMITTEE ON BIOTECHNOLOGY

Ms. Lisa W. Zannoni

COMMITTEE ON NANOTECHNOLOGY

Mr. Terry L. Medley

COMMITTEE ON TECHNOLOGY

Mr. Richard A. Johnson

TASK FORCE ON HEALTH CARE POLICY

Ms. Nicole Denjoy

AD HOC GROUP ON INTELLECTUAL PROPERTY RIGHTS (IPR)

Mr. Richard A. Johnson

INNOVATION AND TECHNOLOGY

TRADE AND INVESTMENT


COMMITTEE ON GOVERNANCE

Mr. Jens Hedström

TASK FORCE ON ANTI-BRIBERY/CORRUPTION

Dr. Klaus Moosmayer

TASK FORCE ON CORPORATE GOVERNANCE

Mr. Dan Konigsburg

PUBLIC AND CORPORATE GOVERNANCE

COMMITTEE ON EDUCATION

Mr. Charles Fadel

COMMITTEE ON EMPLOYMENT, LABOUR & SOCIAL AFFAIRS

Dr. Ronnie Goldberg

TASK FORCE ON CONSUMER POLICY

AD HOC GROUP ON PRIVATE PENSIONS

Mr. Michel Benoit

EMPLOYMENT, SKILLS, AND SOCIETY

COMMITTEE ON ENERGY

Mr. Holger Gassner

COMMITTEE ON FOOD & AGRICULTURE

Mr. Horacio González Alemán

COMMITTEE ON ENVIRONMENT

Mr. Russel Mills

COMMITTEE ON RAW MATERIALS

Mr. Guy Thiran

COMMITTEE ON CHEMICALS

Dr. Hans-Jürgen Wiegand

AD HOC GROUP ON WATER

Mr. Jack Moss

AD HOC GROUP ON GREEN GROWTH

SUSTAINABLE DEVELOPMENT & GREEN GROWTH

EMERGING ECONOMIES

COMMITTEE ON EMERGING ECONOMIES

TASK FORCE ON DEVELOPMENT

Mr. Thomas de Man

TASK FORCE ON CHINA

Mr. Joerg Wuttke

AD HOC GROUP ON AFRICA

Ms. Marie Gad

TASK FORCE ON MIDDLE EAST AND NORTH AFRICA (MENA)

Mr. Thomas Spiller

TASK FORCE ON RUSSIA

Dr. Erman Ilicak

A N N U A L R E P O R T 2 0 1 43 0

THE BIAC NETWORK BIAC MEMBER ORGANIZATIONS

AUSTRALIA AUSTRIA BELGIUM CANADA CHILE CZECH REPUBLIC

DENMARK DENMARK ESTONIA FINLAND FRANCE GERMANY

GERMANY GREECE HUNGARY HUNGARY IRELAND ISRAEL

ITALY ITALY JAPAN KOREA LUXEMBOURG MEXICO

NETHERLANDS NEW ZEALAND NORWAY POLAND POLAND PORTUGAL

SLOVAK REPUBLIC SLOVENIA SPAIN SWEDEN SWITZERLAND SWITZERLAND

TURKEY TURKEY TURKEY UNITED KINGDOM UNITED STATES


BIAC OBSERVER ORGANIZATIONS

ARGENTINA BRAZIL COLOMBIA CROATIA INDIA INDIA

INDONESIA LATVIA MOROCCO RUSSIAN FEDERATION SOUTH AFRICA

BIAC ASSOCIATE EXPERTS

A N N U A L R E P O R T 2 0 1 43 2

BIAC IN BRIEFWE ARE

• An international business network with a global membership

• A cross-industry diverse group with a common mission: advocate for open markets and

private sector-led growth

• A trusted partner to the OECD and other international institutions

WE BRING TO THE TABLE

• An Officially Recognized Business Voice to the OECD with over 50 years of experience

conveying business perspectives and expertise to policymakers on a broad range of global

economic governance and policy issues

• Access to high-level OECD meetings, forums, and discussions on leading matters that

impact businesses globally

• An International Network of 2800+ business experts meeting regularly with OECD

governments and key leadership for consultations on governance and economic policy

• Strategic Counsel on major policy decisions, peer reviews, and key OECD policy instruments.

• International Advocacy through the formulation of policy positions and the engagement

with government officials in OECD member and non-member economies

• Targeted Expertise through more than 30 policy groups communicating business

perspectives to OECD committees, working parties, and governments

OUR ADDED VALUE

• Advocacy: We address business and industry needs at all OECD policy decision levels

• Coordination: We are the hub for all OECD developments that could impact business

• Thought Leadership: Our expert network brings comprehensive input and consensus

industry perspectives on key policy matters

• Competence: Our sound knowledge and expertise help shape the OECD work and agenda

A N N U A L R E P O R T 2 0 1 4

13/15 Chaussée de la Muette

75016 – Paris (France)

Tel: +33 (0) 1 42 30 09 60

Fax: +33 (0) 1 42 88 78 38

[email protected]

www.biac.org

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