Beruflich Dokumente
Kultur Dokumente
January 2013
John Ruthrauff
Director, International Advocacy InterAction jruthrauff@interaction.org 1.202.552.6523 Sue Pleming Senior Director, Communications InterAction spleming@interaction.org 1.202.552.6561
G20 leaders meeting in St. Petersburg in September must take bold steps to improve the lives of the most vulnerable populations, remove impediments for economic growth and encourage good governance and transparency. This policy paper, by the U.S. G8/G20 Advocacy Alliance (Alliance) with 50 non-governmental organizations, trade unions and think tanks, makes recommendations on key issues. The United States needs to play a leading role in encouraging the G20 to take the following steps:
G20 Accountability
1. Use the Los Cabos Accountability Assessment Framework to establish clear processes for who can contribute to the accountability processes and how. 2. Publish in advance the terms of reference and member information for working groups and review mechanisms. 3. Establish clear rules requiring all G20 working groups and peer review mechanisms to seek substantial input from civil society, the private sector and affected communities.
Energy Sustainability
Ensure the G20 includes language in the leaders communiqu that: 1. Advances the implementation of commitments to cut fossil fuel subsidies. 2. Establishes the goal of transitioning the global economy to renewable energy. 3. Calls for revenue-raising mechanisms with revenues used for international climate and development finance.
Financial Inclusion
www.InterAction.org 1400 16th Street, NW Suite 210 Washington, DC 20036 202.667.8227
1. Ensure that national financial inclusion targets set by policymakers address a full range of financial services and include marginalized groups. 2. Implement standards for financial client protection in every country by 2020. 3. Develop and implement indicators to measure financial capability at a national level.
*Updated 3/4/13*
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BACKGROUND
G20 Accountability
The Los Cabos Accountability Assessment Framework (Framework) outlines G20 plans to assess its progress in meeting its commitment to strong, sustainable and balanced growth. The evolving Framework has three pillars: (1) a concrete, consistent country-owned comply or explain approach; (2) a peer review process including review and discussion of members policies and in-depth assessments by international organizations; and (3) annual reporting to G20 leaders on assessment outcomes. The U.S. G8/G20 Advocacy Alliance is encouraged by G20 intentions to build on an innovative global development partnership that will focus on concrete and sustainable results, deepening our engagement with the private 3 sector and civil society. Nongovernmental contributions to the report preparation process should be encouraged. A G20 commitment to a vibrant, inclusive, and transparent accountability process using evidence-based assessments to measure progress can establish the foundation necessary for an effective development-focused global partnership. The Framework should include a baseline against which G20 actions (including those of its Development Working Group) are measured in the accountability process. Establishing transparent and inclusive G20-related accountability processes at the country-level, within international organizations and during the collaborative work needed to produce its annual reports would significantly strengthen the Frameworks three pillars. Specifically, the Alliance recommends that the United States press the G20 to:
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Use the Accountability Framework to establish clear processes for who can contribute to the accountability processes and how. This will increase the inclusiveness and transparency of the G20 accountability process. The G20 should outline the measures in place to ensure its report and other assessments reflect a diversity of perspectives including civil society and the private sector at both the international and country levels. Publish in advance the terms of reference and member information for working groups and review mechanisms. Six months before each summit publish the terms of reference, names and affiliation of members of all such bodies. Sixty days before each summit, make available for public comment all expert group and commissioned reports, assessments and recommendations scheduled for presentation at the summit. Twenty days before each meeting of these entities, publish a meeting notice that includes a list of the G20 commitments and outcomes under review. Establish clear rules requiring all G20 working groups and peer review mechanisms to seek substantial input from civil society, the private sector and affected communities. Real accountability requires clear opportunities for external input, not just the formal accountability process. Working groups and peer review mechanisms are also important fora for civil society input as reports and other products are being prepared.
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Promote integrity, transparency, accountability and prevention of corruption in the public sector. Transparent management of public finances, which permits public oversight, is necessary to improve the likelihood that limited resources are used as intended. All G20 countries should establish transparent and accountable public finance management systems, including for budgeting and procurement. They should adopt and urge all other countries to enact and implement standards for procurement and public financial management consistent with Article 9 of UNCAC. The G20 countries should urgently implement the principles for asset disclosure by public officials agreed on at the Los Cabos Summit in 2012. To further ensure accountability, the G20 countries should not allow elected public officials to enjoy immunity when charged with corruption offenses.
In carrying out all of these recommendations, the G20 Working Group on corruption should operate with the highest degree of transparency, make publicly accessible draft recommendations, and provide opportunities for meaningful civil society participation.
Energy Sustainability
The U.S. G8/G20 Advocacy Alliance urges the United States to ensure the G20 include language in the upcoming leaders communiqu that: 1. Advances the implementation of commitments to cut fossil fuel subsidies by agreeing to: (a) an independent audit of the reported national fossil fuel subsidies in G20 countries; (b) develop national action plans with clear timelines; and (c) ensure transparent reporting by G20 countries on implemented actions to a neutral, third party organization. The G20 has played an important role in climate change and energy policy in recent years, and has the potential to do so again in 2013. In 2009, G20 members agreed to remove fossil fuel subsidies over the medium term, but according to independent assess4 ments, few have done so. Establishes the goal of transitioning the global economy to renewable energy, supports the feed-in tariff as a proven tool for supporting the transition to renewable energy, and requests an analysis of the impact of all G20 countries implementing feed-in tariffs. The G20 can also play an important role in propagating successful renewable energy policies globally and defining a joint goal of pursuing a renewable energy future that is not reliant on fossil fuels. Many G20 countries have increased the contribution of re5 newable energy to electricity grids through the use of feed-in tariff policies designed to accelerate investment in renewable energy. Such arrangements should be widely replicated around the world. Calls for revenue-raising mechanisms, such as the FTT (financial transfer tax) and international maritime and aviation levies or trading systems, with revenues used for international climate and development finance. Finally, the G20 can build on the progress of its Climate Finance Study Group and G206 commissioned reports covering sources of public climate finance . Sufficient public finance will be essential to ensure funding reaches poor countries and communities where there is little incentive for private investment. Public funding can also play a catalytic role in financing and leveraging private sector investments. In 2009, developed country leaders participating in the UN Climate talks agreed to jointly mobilize $100 billion per year in public and private finance to help developing countries fight climate change. Given the challenges of scaling up official finance, other innovative funding sources must also be quickly agreed to and mobilized. Important sources identified by international organizations include the financial transac7 tions tax (FTT) and aviation and shipping levies/trading systems.
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Financial Inclusion
The G8/G20 Advocacy Alliance (the Alliance) applauds the efforts of the G20 leaders to further financial inclusion for all. Improving the range and quality of financial services available to previously excluded individuals strengthens their ability to overcome shocks and participate fully and productively as economic citizens. It also fosters national financial stability and can lead to economic growth. The Alliance supports the Financial Inclusion Experts Groups establishment of a Global Partnership for Financial Inclusion (GPFI) to implement the G20 Financial Inclusion Action Plan. We welcome the GPFIs endorsement of previous recommendations such as the incorporation of demand-side metrics within the G20 Basic Set of Financial Inclusion Indicators and a focus on advancing financial capability and consumer protection. We urge the United State to endure that the Financial Stability Board and the GPFI reinforce this progress by target the following priorities in their work: 1. Ensure that national financial inclusion targets set by policymakers address a full range of financial services and include marginalized groups. This means financial inclusion strategies should address savings, credit, insurance and payments, and focus on excluded segments such as the poor, rural households, women, persons with disabilities and other vulnerable populations. Implement standards for financial client protection in every country by 2020 as part of the G20/OECD Action Plan to implement the High Level Principles of Consumer Protection. Countries can publically commit to their particular intentions via the Maya Declaration process organized by the Alliance for Financial Inclusion. Develop and implement indicators to measure financial capability at a national level, so that countries may begin to apply the OECD/INFE High-Level Principles on National Strategies for Financial Education.
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commodity trades should be required to be carried out in regulated public exchanges subject to central clearing. Additionally, legal requirements establishing aggregate position limits (total number and value of contracts for a given commodity) for all market players entering commodity markets for speculative reasons should be introduced. To further tackle food price volatility, all targets, mandates and financial incentives that encourage the expansion of unsustainable biofuels production should be eliminated. The determination of sustainability should be made using a life-cycle analysis, including consideration of the impact on land rights and local access to food. This recommendation is consistent with the food price volatility report by 10 international organizations commissioned by the G20 in 2011.
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Widespread austerity policies have cut growth rates in many developed G20 countries. The lack of tax revenues deprives countries of the resources necessary to stimulate employment and reverse the economic decline. A 11 recent IMF technical paper documented that the fiscal multipliers used to design austerity policies in developed countries (e.g., Greece) were significantly higher than anticipated. This meant that each dollar of government spending cuts cost the economy more than a dollar in lost output thus, increasing debt-to-gross-domestic12 product ratios. To stimulate their economies, governments must find new sources of revenue. This can be accomplished if the 13 G20 fulfills its 2009 commitment to close tax havens and reduce an estimated $1 trillion per year in illicit financial flows from developing and emerging economies. These illicit flows result from government corruption, criminal activity, commercial tax evasion, and mispriced commercial transactions. A financial transaction tax (FTT) is a small tax on the trade of stocks, derivatives, currency, foreign exchange and 14 other financial instruments. In 2011 the IMF documented FTTs in 15 of the G20 countries . The use of these FTTs should be expanded to provide resources for job creation and other needed stimuli.
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Please address comments and questions on specific policy sections to the Policy Team leads: Accountability Rob Lovelace, Trade Union Sustainability Development Unit RLovelace@TU-SDunit.com Anti-corruption and Transparency Shruti Shah, Transparency International-USA sshah@transparency-usa.org Energy Sustainability Keya Chatterjee, World Wildlife Fund Keya.chatterjee@wwfus.org Financial Inclusion Anita Gardeva, ACCION International, Center for Financial Inclusion agardeva@accion.org While the statement is not designed to be a consensus position of the contributors, it has been endorsed by InterActions leadership. Each set of recommendations was developed by a Policy Team of the G8/G20 Advocacy Alliance, whose members are listed below. Background papers on each issue will be available on the InterAction website: www.InterAction.org. Accountability InterAction Oxfam America Trade Union Sustainable Development Unit World Vision Anti-corruption and Transparency ActionAid Global Financial Integrity Heinrich Boell Foundation-North America InterAction ONE Oxfam America Transparency International-USA Energy Sustainability ActionAid Heinrich Boell Foundation InterAction Oxfam America World Wildlife Fund Financial Inclusion ACCION International InterAction Food Security and Nutrition 1,000 Days Action Network ActionAid Bread for the World Center of Concern InterAction ONE Oxfam America Sabin Vaccine Institute Save the Children WaterAid in America World Vision Jobs and Employment AFL-CIO Center of Concern Heinrich Boell Foundation-North America InterAction Oxfam America Food Security and Nutrition Shawnee Hoover, Save the Children shoover@savechildren.org Jobs and Employment John Ruthrauff, InterAction jruthrauff@interaction.org Post 2015 Development Agenda Jenny Russell, Save the Children jrussell@savechildren.org
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Post 2015 Development Agenda 1,000 Days Action Network InterAction Sabin Vaccine Institute End Notes
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Decent work includes safe and productive employment at a fair wage, with respect for core labor standards, social protection and a voice through social dialogue. 2 The Los Cabos Growth and Jobs Action Plan, Annex A, June 19, 2012 3 2011 Report of the Development Working Group, 68, http://www.mofa.go.jp/policy/economy/g20_summit/2011/pdfs/annex01.pdf 4 Doug Koplow and Oil Change International, Phasing Out Fossil-Fuel Subsidies in the G20, May 2012. 5 Feed-in Tariff (FIT)A renewable energy policy that typically offers a guarantee of: 1) Payments to project owners for total kWh of renewable electricity produced; 2) Access to the grid; and 30 Stable, long-term contracts(15-20 years), U.S. Department of Energy. 6 World Bank Group, Mobilizing Climate Finance: A Paper Prepared at the Request of G20 Finance Ministers, 2011. 7 International Monetary Fund and World Bank, Market-Based Instruments for International Aviation and Shipping as a Source of Climate Finance, 2011 and Report of the Secretary-General's High Level Advisory Group on Climate Change Financing, 2010. 8 A margin is a good faith deposit or performance bond. In finance, a margin is collateral that the holder of a financial instrument has to deposit to cover some or all of the credit risk of their counterparty (most often their broker or an exchange). 9 G20 Employment Task Force, June 2012. 10 Decent work includes safe and productive employment at a fair wage, with respect for core labor standards, social protection and a voice through social dialogue. 11 Growth Forecast Errors and Fiscal Multipliers, Olivier Blanchard and Daniel Leigh, IMF, Jan. 2013. 12 Howard Schneider, Washington Post, Jan. 4, 2013. 13 Illicit Financial Flow: An Overview, Anga Timilsina, UN Development Programme, p. 1, 2010. 14 Taxing Financial Transactions: Issues and Evidence, IMF, Thornton Matheson, March 2011, p. 8.