The Business and Industry Advisory Committee to the OECDComité consultatif économique et industriel auprès de l’OCDE

T h e Vo i ce o f O E C D B u s i n e ss

UNLEASHING POTENTIAL FOR PRIVATE SECTOR-LED GROWTH

2 0 1 3

ANNUAL REPORT

The BIAC MIssIon

The Business and Industry Advisory Committee (BIAC) to the Organisation for Economic Co-operation

and Development (OECD) is an independent international business association devoted to advising

policy makers at OECD and related fora on the many diversified issues of globalisation and the world

economy.

Officially recognised since its founding in 1962 as being representative of the OECD business

community, BIAC promotes the interests of business by engaging, understanding and advising policy

makers on a broad range of issues with the overarching objectives of:

• Positively influencing the direction of OECD policy initiatives;

• Ensuring business and industry needs are adequately advocated and addressed in OECD policy

decision instruments, which influence national legislation;

• Providing members with timely information on OECD policies and their implications for business and

industry.

BIAC advocates consensus industry views to ensure that the resulting policy instruments and guidance

assist, not hinder, private sector capacity to generate growth and prosperity. BIAC’s strength comes

from our close relationship with our Members, the major business organisations in the OECD member

countries, as well as our Observers, leading business and industry associations in non-OECD member

countries. BIAC is also supported by our Associate Experts, numerous supra-national sectoral business

organisations. It is this continual consultation with our members (and their member companies) and

policy teams that gives BIAC its influence, access and credibility.

2 I 2013 BIAC

“BIAC and our members are deeply concerned that the world has notreturnedtohigherlevelsofeconomicgrowth,thatsomeeconomiesareslippingbackintorecessionand,aboveall,thatemploymentisbelowourpotential.Experiencedworkers are facingunprecedentedperiods of unemployment,threatening theerosionof their skillsand futureemployability, andwearerunning the risk of losing the significant portion of a new generation tojoblessness.Untilwehave theglobaleconomyexpandingatasustainablepace,wewillhaveneithertheresourcesnorthepublicsupporttoaddress

themanyothersocietalconcernsweallshare.”Charles P. Heeter, Vice Chair and former Chair of BIAC

3 I 2013 BIAC

BIAC on the Move A Word froM the neW Biac LeAdershIp

At BIAC, we believe that the answer for a lasting return to growth and more employment lies in

the private sector. This is and will be at the core of our mission. There is simply no substitute for

a confident, healthy, investing and innovating private sector to foster the growth that underpins

the stability and advancement of our societies.

The role of the OECD as a trusted advisor for governments on economic policy is strong and

growing. No other institution has the experience and scope to develop and facilitate the policies

and rules that we need for open, efficient and competitive economies. The recent work on

Trade in Value Added is just one example for the value and significance of the OECD as a

knowledge partner for governments and also the private sector. Another is the current analysis

on international taxation and the issue of Base Erosion and Profit Shifting (BEPS).

For more than fifty years now, BIAC has been advising the OECD from a business perspective

in a growing number of policy fields and regulatory issues. We are only able to keep up with

the ambitious and highly relevant work of the OECD because we can count on input from our

members and the many experts from companies who engage in our policy groups. One of our

strategic objectives for BIAC will be to engage and support our members even more effectively

in the policy debate with the OECD and governments, and to promote our positions more in a

more efficient way at the national and multinational level.

We are committed to continue and intensify the good work of BIAC in key areas such as corporate

and public governance, competition, taxation, the environment, development and others. At this

year’s Council of Ministers, BIAC made an urgent call on governments to create the framework

for private sector led growth. We are looking forward to working with our members and the OECD

towards that goal.

Phil O’Reilly BIAC Chair

Bernhard Welschke BIAC Secretary-General

4 I 2013 BIAC

The oeCd

The mission of the Organisation for Economic Co-operation and Development (OECD) is to

promote policies designed:

• to achieve the highest sustainable economic growth and employment and a rising standard

of living in member countries, whilst maintaining financial stability, and thus to contribute to

the development of the world economy;

• to contribute to sound economic expansion in member as well as non-member countries

in the process of economic development; and

• to contribute to the expansion of world trade on a multilateral, non-discriminatory basis

in accordance with international obligations.

dId You KnoW?

• Over 2 000 bilateral Tax Treaties worldwide are based on the OECD Model Tax Convention, and

the OECD Transfer Pricing Guidelines are the basis for legislation in all OECD member countries.

• The OECD Principles of Corporate Governance are used around the world as an international

benchmark for policy makers, investors, corporations and stakeholders.

• The OECD Guidelines for Multinational Enterprises are the most comprehensive set of non-

binding recommendations by governments to multinational enterprises addressing responsible

business conduct.

• The OECD Environmental, Health and Safety programme and its system of Mutual Acceptance of

Data lead to cost savings for governments and industry of over 150 million Euros per year by

avoiding duplicative data requirements.

A MessAge froM The oecd seCreTArY-generAL

“LastyearwecelebratedBIAC’s50thanniversary.Itwasanauspicious

occasiontoreflectontheextensivescopeofBIAC’scontributiontothe

workof theOECDand itsvalue tobusiness leaders inaddressing the

issuesofglobalisation,investmentandeconomicprosperity.

AsthevoiceofbusinessintheOECD,BIAChasplayedanessential

partinsupportingourmissiontopromotebetterpoliciesforbetterlives

worldwide. BIAC has been an important sounding board in all areas

of OECD work, helping to engage businesses in OECD member and

partnercountriesandsharing the insightsof thebusinesscommunity

onavarietyofeconomicandsocialissues.BIAChasprovidedcriticalinputtoOECDthinking

andactionduringthisdifficultfinancial,economicandsocialcrisis.

Aswestrive towards re-building trustboth in thepublicandprivatesectorsand towardsa

moreresilient,inclusiveformofgrowth,wecountonBIAC’scontinuedsupportandinput.

I would also like to acknowledge the extraordinary contributions by Charles Heeter, as he

recently stepped down from his position as Chairman of BIAC, and Tadahiro Asami, whose

term as Secretary-General, came to an end in 2012. We look forward to strengthening our

co-operation, and to working closely with the new leadership at BIAC to address the major

challengeswearefacingtodayandinthefuture.”

Ángel Gurría, OECD Secretary-General

Norway chaired the 2013 OECD Ministerial Council Meeting (Paris, 29-30 May 2013)

A noTe froM norWAY

“Restoring confidence, tackling unemployment, in particular among

youth,andaddressinginequalitieswillbethekeytounlockingabrighter

future.Therefore,theOECDMinisterialCouncilMeeting2013focused

onpoliciesthatcanhelppromotegrowthandemployment,managethe

transition to a more inclusive growth model, reduce inequalities and

rebuildtrustingovernments.

Tohavemechanisms for trustful cooperationwith interest groups is

anasset foracountryandaneconomy.But it is alsoanasset foran

organisation.OECDhas for the last51yearsdevelopedaconstructive

andfruitfulcollaborationwithBIAC,acapitalof trust that isgainful in

thistimeofeconomiccrisis.”

Ambassador Tore Eriksen, Permanent Representative of Norway

5 I 2013 BIAC

KeY reCoMMendATIons for 2013 And beYond

The global economy remains fragile and it is increasingly clear that there cannot be any significant

and sustained OECD-wide growth unless the potential of the private sector is fully mobilised. Our

governments must develop and implement policies that enable business to invest, to innovate and

to create new employment. As a trusted advisor to our governments and as a partner for business,

the OECD is playing a leading role in charting the way forward. Many challenges remain that require

decisive and co-ordinated action for sustainable growth and the advancement of our societies.

In this spirit, BIAC is working closely with the OECD, which we call upon to set a clear path for

structural reforms, consistency of policies and regulation, and for a global level playing field.

Key Issues

• Open, competitive markets and resistance to protectionism:

BIAC calls on the OECD to counteract the proliferation of protectionist measures and take a

leading role in the international debate on freedom of cross-border trade and investment.

• Strengthened job creation and employability of individuals:

BIAC advocates structural reforms that support sustainable private sector-led job creation and

reduce labour market rigidities. The success of business depends on skilled people, thus calling

for a strong focus on improving education and skills.

• Balanced policies and a sound financial system for growth:

The accumulation of new financial regulations in different countries being introduced at the same

time can lead to unknown side-effects and costs to the real economy. This calls for deep dialogue

between regulators and industry, based on objective, independent analysis.

• Good governance:

BIAC calls on the OECD to promote legal and regulatory systems that are stable, transparent,

efficient and non-distortive, including for key areas such as international taxation, supporting

open competitive markets and a level playing field for business.

• Innovation to foster growth and sustainable development:

BIAC calls for continued emphasis on innovation as a crucial prerequisite for long-term sustainable

growth and development and for addressing major global challenges.

• Effective co-operation at global level:

BIAC encourages the OECD to deepen its work with non-member economies. Building business-

friendly environments in developing and key partner countries, such as by sharing best practices

and international standards, is vital for private sector-led development.

6 I 2013 BIAC

biac prIorITY Issues

open And CoMpeTITIve MArKeTs, And resIsTAnCe To proTeCTIonIsM

Open and competitive markets are essential prerequisites for economic growth worldwide. However, in the light

of economic uncertainty, foreign investors are witnessing a revival of protectionist measures that favour domestic

productionandclosedmarkets.BIACbelievesthattheOECDshouldplayaleadingroleintheinternationaldebateon

freedomofcross-bordertradeandinvestmentandprovideleadershipinhelpingtoaddresstheissuesthatareatstake.

BIAC is working closely with the OECD to identify 21st

Century Barriers to Commerce and ensure that markets

are kept open for trade and investment with a view to boost

economic growth and job creation. BIAC welcomes OECD’s

work on Trade in Value-Added (TiVA) and Global Value

Chains (GVC), which is giving new insights of the role of

services trade, bringing to light the costs of protectionist

measures taken by governments and underscoring that

barriers will inevitably lead to higher costs for goods and

services, as well as to lower global trade, productivity and

welfare for businesses and the countries in which they

operate.

In addition, OECD’s work on indicators for a Services Trade

Restrictiveness Index (STRI) will provide policy makers

with useful tools to identify barriers, improve domestic

policy environments, negotiate international agreements

and open up international trade in services, which is an

area of growth for many economies. The International

Collaborative Initiative on Trade and Employment (ICITE)

project analysis on trade and employment is of particular

value to identify and address the opportunities, challenges

and policy solutions of maximising employment from trade.

BIAC also presented to the OECD its proposals for a

Pro-active Investment Agenda, underlining that truly open

investment flows require: adherence to the rule of law and

to effective dispute settlement; assurance of fair and non-

discriminatory treatment for foreign investors; freedom to

own and control one’s own investment; and adherence to key

principles and declarations, such as the OECD Declaration

on International Investment and Multinational Enterprises.

In this respect, BIAC has also urged the OECD to undertake

determined efforts to encourage emerging markets to adhere

to the OECD Guidelines for Multinational Enterprises to

contribute to a more level playing field for business globally.

The level playing field needs to be supported by sound

competition policies, which is another prerequisite for

harnessing the benefits of open markets in trade and

investment. BIAC therefore informs and encourages senior

regulators and antitrust enforcers to act consistently and

proportionately in accordance with due process and best

practice, and with respect to the objectives of effective

enforcement of competition laws.

BIAC believes that there is a clear opportunity for the OECD,

through its fact-based analysis, to help policy makers

understand the new dynamics of world trade and investment

and identify new opportunities that lead to more open and

competitive markets. BIAC underlines the importance

of working closely with the OECD to ensure that business

experiences and views are considered in the shaping of

policies.

“Sincebusinessandothernon-governmentalstakeholdersplayanincreasinglyimportantroleincontemporary

internationalrelations,beitintrade,investment,environmentorotherareas,itiscrucialtokeepabreastwith

thepositionsofthesestakeholders.ItrytodosowithSwedishandinternationalbusinesspartners,aswellas

other stakeholders.BIACplays aparticularly crucial role in this regardas a committee thatprovides cutting

edgeadvice to theOECDandassures themultistakeholderismthatmakesOECDuniqueamong international

organisations.”

Ambassador Anders Ahnlid, Permanent Representative of Sweden to the OECD

7 I 2013 BIAC

8 I 2013 BIAC

sTrengThened JoB CreATIon And eMpLoYABILITY of IndIvIduALs

Persistenthighunemploymentrates,especiallyamongyouth,havecontinuingnegativeeconomicandsocialimpacts.

Enhancingtheemployabilityandtheeconomicandsocialmobilityofallgroupsmustbeatoppriorityforpublic

policy. In the current climate, business looks to governments to deliver clear, pragmatic national strategies for

employment and skills with institutional frameworks that support sustainable private sector-led growth as a key

sourceofjobcreation.

At OECD, BIAC emphasises that employment and social

policies must not be considered in isolation: they must

support and not inhibit job creation and be linked to the

broader economic policy framework.

The OECD Jobs Strategy provides critical benchmark

information for policies tackling unemployment, and is an

important source of fact based employment policy analysis

for business. BIAC engages OECD to provide our views

on key topics addressed by the Employment Outlook:

employment policies should foster higher productivity,

innovation and entrepreneurship, as well as necessary

flexibility, labour mobility and adaptability, which are

crucial for firms to be competitive, grow and create jobs in

open global markets.

BIAC also recognises the growing concerns regarding

income inequality, which highlight the need to ensure

equality of opportunity for all. The recommendations of the

2011 OECD Report Divided We Stand, which emphasises

employment as the most important means to reduce

income inequality, are an encouraging step and BIAC

welcomes ongoing OECD analysis on issues impacting

economic and social mobility.

In May 2012, BIAC submitted a report to the OECD

Council Ministerial entitled Putting All our Minds to Work:

Harnessing the Gender Dividend, advancing the business

case for women’s economic empowerment. As follow up

to the report, BIAC is launching a second phase of work

on gender equality focusing on women’s entrepreneurship,

and is contributing to the development of an OECD

Council Recommendation on Gender Equality addressing

Employment, Education and Entrepreneurship.

Access to quality education for all and lifelong learning

must remain top policy priorities. As demonstrated by OECD

research, addressing the challenges of unemployment

and inequality depends to a large extent on increasing the

employability of individuals. Access for all groups to quality

education, from early childhood education through to adult

education, is a critical factor for lifelong employability in

OECD, emerging and developing economies alike.

The OECD Skills Strategy and ongoing work on the

assessment of adult competencies are ground-breaking

initiatives that could significantly help to anticipate, update

and upgrade skills. Likewise there must be a renewed

emphasis on increasing the quality of teaching in schools in

many countries, work place learning, apprenticeships and

traineeships. Employment strategies can actively support

participation of all groups in the work force by improving

vocational training, lifelong learning, and specifically

targeting youth employment and disadvantaged groups.

BIAC continues its role in the G20 Labour Ministerial process

jointly with the International Organisation of Employers

(IOE). Under the Russian G20 Presidency BIAC and IOE

have launched a Global Apprentice Initiative, which aims

to broaden the scope and take up of apprenticeships by

companies as a pathway from school to work. This project

also responds to the G20 focus on youth employment,

with a concrete plan for action to engage companies in

apprenticeship approaches.

“The German “dual-track” VET-system is recognised worldwide as a basic and highly effective model for

vocationaltraining.IthashelpedkeepingGermany’syouthunemploymentrateataEuropewidelow.Akeyto

thesuccess isaclosecooperationwith thesocialpartners, inparticularwithentrepreneurs. I therefore fully

supportedBIACViceChairRodenstock’sremarksinthisregardduringthelastOECD-BIAC-liaisonmeetingand

haveencouragedBIACtofurtherstronglyengageintheskillsandVET-workoftheOECD.”

Ambassador Dr. Hans-Juergen Heimsoeth, Permanent Representative of Germany to the OECD

9 I 2013 BIAC

BALAnCed poLICIes And A sound fInAnCIAL sYsTeM for groWTh

Sixyearsaftertheonsetofthefinancialcrisis,anumberofpossiblerisksandchallengesremain,includinglackof

policycertainty, insufficientmacroeconomicstability–akeyfactor forbusinessconfidenceto invest–anduneven

fiscal consolidation strategies. With limited public resources available, BIAC argues that it is essential for policy

makersandbusinessestofocusonfosteringconfidenceintherealeconomyandcreatinganenablingenvironmentfor

sustainable,privatesector-ledgrowthandjobcreation.

Since the onset of the global financial and economic

crisis, BIAC has been supporting the OECD’s calls for

structural reforms to revive medium- to long-term growth.

As highlighted in the BIAC statement to the 2013 OECD

Ministerial Council Meeting (MCM), these reforms are

crucial for building a business-enabling environment in

which private sector investment, trade, job creation and

innovation can thrive.

At the same time as implementing structural reforms,

reviving confidence in the financial system is of central

importance to growth in the real economy. As highlighted to

OECD Ambassadors in January 2013, BIAC is concerned

that the myriad of financial regulations being introduced

by different jurisdictions without proper sequencing

or thorough impact analysis, going over and above

internationally-agreed approaches, could bring serious

unintended consequences for growth.

For instance, the financial regulatory burden appears to

be resulting in a reduction of lending to SMEs, precisely

at a time when an increase is needed. BIAC has been

calling on the OECD to foster greater discussion between

governments, regulators and industry about the cumulative

impacts and possible unintended side-effects of new and

proposed regulations.

At the same time, BIAC has been calling upon governments

to consolidate public budgets where needed, in a way that

also minimises any negative impact on future growth, and

accompanied by structural reforms to improve the business

environment. Governments should also ensure sufficient

flexibility to make the pace of fiscal consolidation efforts

reflective of the recovery of each national economy, and

we encourage further OECD analysis and policy advice to

individual countries in this respect.

The global economic crisis and continued fiscal challenges

faced by governments have also brought corporate tax

issues into mainstream public policy discussions. Ensuring

stable, transparent, non-distortive frameworks for taxation

is essential for business confidence to invest.

At OECD, BIAC engages on key global tax issues related to

tax treaties, transfer pricing, VAT/GST, tax administration,

and development. Business looks to OECD as the standard

setter for international tax principles set forth by OECD

in guidance such the OECD Model Tax Convention, the

OECD Transfer Pricing Guidelines and the OECD VAT/GST

framework.

In 2013, a key priority for BIAC tax work is to lead business

engagement in the OECD project on Base Erosion and

Profit Shifting (BEPS), with the aim to restore public

confidence in the international tax system by ensuring that

international tax rules are up to date and encourage growth

and cross-border trade and investment. In this context

the the BIAC Tax Committee is also engaging the major

emerging economies on OECD related tax issues including

in China, India and Brazil.

“SincecomingtoofficeinMay2010,theUK’sCoalitionGovernmenthasmadeapriorityofpromotingstrong

andsustainableprivatesector-ledgrowth.Toachieve this,governmentneeds toensure that regulation takes

account of the burden on business, provide a competitive and fair tax system, and help support access to

finance for growing firms (and inparticular SMEs).BIAChas a key role to play in taking this agenda to the

OECD,bringingnewideastothetable,helpingmembersunderstandhowpoliciesplayoutintherealworld,and

identifyingwhatmorewecandotopromotecoherence.”Mr. Ian Wood, Deputy Permanent Representative of the United Kingdom to the OECD

10 I 2013 BIAC

good governAnCe

Goodpublicandcorporategovernanceremainkeyconsiderationsforbusiness,asanessentialelementindeveloping

trustandprosperity.Establishingacoherentandwell-functioningnationalregulatoryframeworkfortransparentand

efficient markets across all sectors is vital for building confidence and restoring growth. Reducing economy-wide

regulatoryburdensshouldbeoneofthetopprioritiesofgovernmentsin2013.

In contribution to the OECD flagship publication Going for

Growth 2013, BIAC carried out in 2012 a major survey on

Priorities for Structural Reforms and Implementation, the

results of which were shared with the OECD. According

to the BIAC survey, many of the reforms previously

recommended by the OECD were perceived to have not

been implemented at all (in 30% of cases), and most

only partly implemented. This finding demonstrates the

significant uncertainty facing business regarding policies

and their enforcement, thus inhibiting investment and job

creation.

Keeping in mind its aim to improve policy consistency

and certainty and to promote confidence, the OECD has

invited BIAC to co-operate in a benchmarking project

aimed at ensuring that the OECD’s 2012 Recommendation

of the Council on Regulatory Policy and Governance is

implemented as soon as possible in the member countries.

The project has great potential to assist countries to improve

the quality of regulation by reviewing on a regular basis the

effectiveness and improvements in the implementation of

the Recommendation within OECD member states.

BIAC calls upon the OECD to continuously improve and

tailor its advice to governments on introducing policy

reforms in an orderly manner that would improve the

enabling environment for business. This requires close co-

operation with business stakeholders.

Not only public governance, but also good corporate

governance is an essential element for trust and long-term

prosperity. The OECD Corporate Governance Principles,

which are widely recognised by policy makers and business

as a key international point of reference, acknowledge that

the corporate governance framework should be developed

with a view to its impact on overall economic performance.

Corporate governance rules should therefore ensure that

capital is sufficiently allocated for business to make the

necessary investments and pursue opportunities with the

ultimate objective of fostering growth and employment.

BIAC will actively contribute to the update of the Corporate

Governance Principles to ensure that they remain both

relevant and manageable as an international reference

document.

The fight against bribery and corruption is another important

area BIAC is actively engaged in. Fostering international

co-operation is essential to implement internationally

accepted frameworks such as the OECD Anti-Bribery

Convention. Going forward, close co-operation with non-

member economies will be increasingly important to work

towards a level playing field. BIAC has continued its active

involvement in the OECD’s work on anti-bribery, including

in the country reviews, and has contributed to discussions

at the G20/B20 level as an active member of the B20

Anti-Corruption Task Force. BIAC calls upon governments

to create an efficient legal and institutional framework,

including for the demand side of corruption; encourage

capacity building and partnership; and recognise the

fundamental and pro-active role many companies have

been playing in this area.

“Franceassignsgreat importance to the relations fosteredbetween theOECDandBIAC. Inaworldwhere

public-private dialogue is essential, the presence of business representatives at OECD committee meetings

shouldbeconsideredoneofthesignificantcomparativeadvantagesoftheorganisation.”

Ambassador Pascale Andreani, Permanent Representative of France to the OECD

InnovATIon To fosTer groWTh And susTAInABLe deveLopMenT

Whiletheglobaleconomyisstillstrugglingtorecover,internationaldialogueonkeepinginnovationhighontheagenda

ofbothgovernmentsandbusinesses,needstoremainakeypriority.Innovationisessentialtosustainablegrowthin

today’shighlycompetitiveandconnectedglobaleconomyandakeyengineforaddressingurgentglobalchallenges,

includinghealth,accesstoenergyandwater,foodsecurityandgreengrowth.Thankstoitsmulti-disciplinarynatureand

incloseco-operationwiththeprivatesector,theOECDcanmakeanimportantcontributioninthisarea.

BIAC actively contributes to OECD work related to science,

technology and innovation and urges the OECD to continue

its focus on linking innovation to knowledge-based value

creation as well as broader societal goals such sustainable

development and addressing global challenges. Major

transformations in the area of science and technology need

to be taken into account, for example, the emergence of

Big Data and Internet of things, which are transforming

business models across sectors and in fields such as

healthcare and education. The growing role of Global

Value Chains (GVCs) and Knowledge-based Capital (KBC)

requires rethinking of a range of government policies

and approaches, areas for which OECD analysis will be

particularly helpful.

BIAC has also contributed significantly to a wealth of

specific OECD innovation-related projects, including on

smart specialisation, innovation in services, knowledge

networks and markets, Information and Communications

Technology (ICT) and the Internet economy, intangible

assets, IPR, as well as nanotechnology, biotechnology, and

health care. For example, work in the area of biomedicine

and health includes a project initiated by BIAC on

Alzheimer’s disease.

Innovation is also essential for greening our economies. On

the occasion of the 2012 OECD Environment Ministerial,

BIAC called on Ministers to recognise the importance of

fostering innovation and economic opportunities and

ensure that the necessary investments can come forward.

Business should be seen as an integral part of the solution

as making green growth deliver depends increasingly on

business providing advanced materials and innovative

technologies and processes that address both production

and consumption.

To make a pro-active contribution to international

discussions on the implementation of green growth

strategies, BIAC joined USCIB and a range of other

organisations as a key partner in the Green Economy

Dialogue project, co-organising a series of conferences

in 2012 in Tokyo, Brasilia, Beijing and Paris, addressing

major business challenges and opportunities in the run-up

to Rio+20. Ways to foster innovation, as well as energy and

resource efficiency featured high on the agenda.

Water and sanitation are essential enablers of sustainable

development. BIAC contributes industry expertise to the

OECD water programme on management, quality, pricing,

financing, and other issues concerning water security.

BIAC also works with the OECD on the sustainability of

food and agriculture, and a joint OECD/BIAC workshop

on Green Growth in the Agro-food Chain took place in

April 2013 with specific focus on the private sector’s role in

bringing investment and innovation.

Discussions on innovation and sustainable development

also need to take into account growing energy demands.

In 2012, BIAC further strengthened its dialogue with the

International Energy Agency (IEA), the Nuclear Energy

Agency (NEA) and OECD on several issues, including the

changing global energy map, unconventional gas, energy

efficiency, investment incentives and support mechanisms

for renewable energy projects in the MENA region.

11 I 2013 BIAC

“Howtocopewithanageingsocietyconstitutesanimportantchallenge,notonlyforOECDcountriesbutalso

formany others in theworld. Technology and innovation can offer responses to this complex issue.Work is

alreadyunderwayintheOECD,including“ICTforAgeingSociety”andotherhorizontalprojects.In2014,Japan

willhosttheGlobalForumontheKnowledgeEconomyandshareitsoutcomes.”

Ambassador Motohide Yoshikawa, Permanent Representative of Japan to the OECD

12 I 2013 BIAC

effeCTIve Co-operATIon AT gLoBAL LeveL

OECDanalysisshowsthatthelong-termgeographicdistributionofeconomicwealthoverthecoming50yearsisset

tochangesignificantly,wherebyOECDshareofglobalwealthisforecasttoshrinkfromcloseto65%in2011tojust

over42%by2060.StrengtheningtheglobaloutreachoftheOECDisimportantforsoundanalysisandpolicyadvice,

butalsoforsharingknowledge,bestpracticesandstandardsinordertobuildalevelglobalplayingfieldinwhichall

economiesandsocietiescanthrive.

Shifting global wealth presents challenges, but also

important win-win opportunities for OECD and non-OECD

countries alike. For example, innovative financing and

development assistance could be used to help business

in OECD countries to invest in and trade with fast-growing

emerging and developing economies. This would help

to strengthen OECD-based industries and create jobs

for economic recovery, while simultaneously enhancing

the development of partner countries through improving

infrastructure, food security, health care and so on.

Recognising this potential, BIAC established its own

Development Task Force in 2012. Through this new group,

BIAC has been working to ensure that private sector

development is given top attention by policy makers.

Consequently, the Global Partnership for Effective

Development Co-operation (a Ministerial-level process

resulting from the fourth High Level Forum on Aid

Effectiveness in Busan in 2011) is building a dedicated

work-stream on the private sector in which BIAC is closely

engaging. Moreover, recognising the expiration of the

Millennium Development Goals (MDGs) in 2015, BIAC

has contributed its preliminary perspectives for the post-

2015 development framework, in which BIAC argues that

the private sector is an enabler of all post-2015 goals.

BIAC is encouraging the OECD to actively engage in these

discussions.

BIAC has also been deepening co-operation with business

in non-member countries through its network of BIAC

Observer organisations (from Argentina, Brazil, Colombia,

India, Indonesia, Latvia, Morocco, Russia and South

Africa), as well working on expanding this network. Even

in China where no BIAC Observer currently exists, BIAC

worked throughout 2012 to foster closer China-OECD co-

operation, such as through several business meetings with

senior OECD officials visiting China, as well as contributing

to an event in March 2012 in Beijing with the participation

of Chinese business. In addition, BIAC has strengthened

the relationship with the OECD-MENA Investment and

Governance Programmes and contributed to several

meetings in 2012.

In 2012, Russia made important achievements on the

road to becoming an OECD member, such as concluding

its WTO membership negotiations and adhering to the

OECD Anti-Bribery Convention. BIAC welcomes this recent

progress and is assisting several OECD committees in their

accession reviews. This deeper international co-operation

is important not least because of the OECD’s role as a key

knowledge partner to the G20. Similarly, BIAC is engaged

in the B20, particularly in the areas of anti-corruption and

employment, and BIAC shall continue to contribute in

these and other key policy areas for the G20.

“Asalong-standingadvocatefortheOECD’sengagementwithemerginganddevelopingcountries,Australia

welcomesBIAC’soutreacheffortsandthestrongimpetustheyprovidetothegeographicdiversificationofthe

OECD’sactivities.”

Ambassador Chris Barrett, Permanent Representative of Australia to the OECD

13 I 2013 BIAC

spoTLIghT evenTs 2012/2013

The BIAC meetings and events bring together highest levels of the OECD policy makers, representatives from business

and academia at the highest level, with the aim to identify economic policies that can leverage the potential for growth

and jobs.

17 May 2012: G20 Labour Ministerial Consultation with Social Partners in Guadalajara (Mexico)

BIAC, together with the International Organisation of Employers (IOE), represented business at the G20 Labour Ministerial

consultation with Business and Trade Unions, organised by the Mexican G20 Presidency. The agenda addressed actions

for job creation, youth employment and the employment potential of green growth, and a key outcome was the BIAC IOE

commitment to take forward a joint global initiative on apprenticeships.

22 May 2012: Launch of BIAC Report on Gender Equality to OECD MCM in Paris (France)

BIAC launched its Report on gender equality developed jointly with the American Chamber of Commerce in France: Putting

ALLOurMindstoWork:HarnessingtheGenderDividend, at the annual OECD Ministerial Council Meeting (MCM). The

Report was presented by BIAC Chairman Charles P. Heeter on a panel together with OECD Secretary-General Angel Gurria,

Executive Director of UN Women, Michelle Bachelet, and the U.S. Ambassador to OECD Karen Kornbluh.

31 August 2012: Second International Green Manufacturing Summit in New Delhi (India)

BIAC joined the Confederation of Indian Industry (CII) in organising the Second International Green Manufacturing Summit

which was held in New Delhi on 31 August 2012. BIAC’s ICCP Committee vice-chair Mr Yokozawa participated in the final

panel discussion.

5-6 December 2012: Inaugural Steering Committee meeting of the Global Partnership for Effective Development Co-

operation (London)

The BIAC representation to the meeting, which was co-chaired by Ministers from Indonesia, Nigeria and the United

Kingdom, helped to ensure that the Global Partnership focus on the private sector role in development.

16 January 2013: Charles P. Heeter and Phil O’Reilly

speaking to the OECD Ambassadors in Paris (France)

14 I 2013 BIAC

16 January 2013: BIAC Chair and Vice-Chairs speaking to the OECD Ambassadors in Paris (France)

On the occasion of BIAC’s annual consultation with OECD ambassadors, BIAC Chair Charles P. Heeter led a delegation of

senior private sector representatives in reiterating BIAC’s call to policy makers for urgent confidence-building measures to

ensure a strong return to private sector-led growth.

7 February 2013: Keidanren 21st Century Policy Institute Seminar with BIAC and OECD on International Taxation in

Tokyo (Japan)

BIAC Member in Japan, Keidanren, hosted a major seminar to address key international tax issues related to the taxation of

intangibles and the principle of Permanent Establishment. BIAC Tax Committee leadership, including Chair Will Morris and

Vice Chairs Yoshiyasu Okada, Krister Andersen and Archie Parnell led discussions on these key issues.

4-5 March 2013: International Business Dialogue on 21st Century Barriers to Commerce in Paris (France)

The Dialogue provided a unique opportunity for business to discuss in a meaningful way barriers to international commerce

with the OECD and its member countries’ trade delegates.

14-15 March 2013: Business Visit to the OECD in Paris (France)

BIAC Chair Chares P. Heeter welcomed over 50 business delegates to the OECD headquarters. As on previous occasions,

this annual Business Visit provided high level business representatives with the opportunity to interface with the OECD.

26 March 2013: International Business Dialogue on Base Erosion and Profit Shifting (BEPS) in Paris (France)

BIAC organised an international business dialogue with the OECD to discuss the recent OECD Report on Base Erosion and

Profit Shifting (BEPS) and the future of cross-border taxation policies.

25-26 April 2013: Third Annual High-Level Anti-Corruption Conference for G20 Governments and Business in Paris

(France)

The conference brought together some 300 participants from government, business and civil society to discuss the priorities

laid out in the 2013-2014 G20 Anti-Corruption Action Plan and B20 recommendations to governments. BIAC Chairman

Charles P. Heeter spoke on the panel on balancing sanctions with incentives to promote clean business.

27 May 2013: BIAC General Assembly in Paris (France)

On the occasion of its 51st meeting, BIAC’s General Assembly elected Phil O’Reilly as its new Chair. OECD Deputy Secretary-

General PierCarlo Padoan then came to present to BIAC the OECD’s New Approaches to Economic Challenges.

And many more...For more information on the BIAC events and High Level meetings, visit the BIAC Website!

15 I 2013 BIAC

Mr. Phil O’ReillyBIAC Chair, Chief Executive Officer

BusinessNZ (New Zealand)

Mr. Bernhard Welschke BIAC Secretary-General

Ms. Anne Brunila Chair of the Board

ICC Finland (Finland)

Mr. Yoon KimChairman & CEO

Samyang Holdings(Korea)

Mr. Péter LörinczeVice President

for International Relations TriGránit Development Corporation

(Hungary)

Ms. Maria Carmela Colaiacovo President

Confindustria Alberghi (Italy)

Mr. José Ignacio MariscalChief Executive Officer

Grupo Marhnos(Mexico)

Mr. Christoph MäderMember of the Executive Committee

Syngenta International AG(Switzerland)

Mr. Murat Özye ̆ginExecutive Board MemberFiba Holding A.S (Turkey)

Mr. Guy de PanafieuSenior Adviser

CACIB(France)

Pr. Randolf RodenstockManaging Partner

Optische Werke G. Rodenstock GmbH & Co. KG

(Germany)

Mr. Katsutoshi SaitoChairman

Dai-Ichi Life Insurance Company Ltd.(Japan)

biac exeCuTIve BoArd

Mr. Charles P. HeeterManaging Director

Deloitte Touche Tohmatsu Ltd(United States)

16 I 2013 BIAC

BIAC Member Organisations

Australia BelgiumAustria Canada Chile

France Germany Germany HungaryGreece

Hungary Ireland ItalyItalyIsrael

Sweden SwitzerlandSlovak Republic SpainSlovenia

Czech Republic DenmarkDenmark FinlandEstonia

Korea Luxembourg Mexico NetherlandsJapan

Poland

PortugalNew Zealand Norway Poland

United StatesSwitzerland United KingdomTurkeyTurkey Turkey

MeMBer orgAnIsATIons, oBservers, AssoCIATe experTs

17 I 2013 BIAC

BIAC Associate Experts

BIAC Observer Organisations

Argentina

Morocco Russian Federation

Brazil

Latvia

Colombia India

South Africa

India Indonesia

18 I 2013 BIAC

Committee on Competition Chair:LyndaMartinAlegi,Baker&McKenzie(UK)

Committee on Economic Policy Chair:StephanMumenthaler, NovartisInternationalAG(CH)

Task Force on Finance Chair:KentAndrews,TDBankGroup(CA)

Committee on International Investment and Multinational Enterprises (MNE) Chair:WinandL.E.Quaedvlieg,VNO-NCW(NL)

Committee on Taxation and Fiscal Affairs Chair:WilliamMorris,GEInternationalInc.(UK)

Committee on Trade Chair:CliffordSosnow, FaskenMartineauDuMoulinLLP(CA)

Task Force on Export Credits Chair:StevenW.Howlett, GECapitalMarketsCorporate(US)

Economy

Committee on Emerging Economies Chair:BrunoDupety,VinciConstruction(FR)

Ad Hoc Group on Africa Chair:MarieGad,ConfederationofDanishIndustry(DK)

Task Force on China Chair:JoergWuttke,BASFChinaCompanyLtd(DE)

Task Force on Development Chair:ThomasdeMan,Heineken(NL)

Task Force on Middle East and North Africa (MENA) Chair:ThomasSpiller,TheWaltDisneyCompany(US)

Task Force on Russia Chair:Dr.ErmanIlicak,RönesansHolding(TR)

EmErgingEconomiEs

Committee on Education Chair:AttilioOliva,AssociazioneTreeLLLe(IT)

Committee on Employment, Labour & Social Affairs Chair:Dr.RonnieGoldberg,USCIB(US)

Task Force on Consumer Policy Chair:HubertvanBreemen,VNO-NCW(NL)

Task Force on Health Care Policy Chair:NicoleDenjoy,COCIR(BE)

Ad Hoc Group on Private Pensions Chair:MichelBenoit, Osler,Hoskin&HarcourtLLP(CA)

sociEty

Committee on Food & Agriculture Chair:HoracioGonzálezAlemán, Food&DrinkIndustryAssociation(ES)

Committee on Chemicals Chair::Dr.Hans-JürgenWiegand,EvonikDegussaGmbH(DE)

Committee on Energy Chair:HolgerGassner,RWEInnogy(DE)

Committee on Environment Chair:RusselMills,TheDowChemicalCompany(US)

Ad Hoc Group on Green Growth

Committee on Raw Materials Chair:GuyThiran,Eurométaux(BE)

Ad Hoc Group on Water Chair:JackMoss,AquaFed(FR)

Task Force on Resource Productivity and Waste

Task Force on Climate Change

sustainability

Committee on Governance Chair:JensHedström,NNR(SE)

Task Force on Bribery and Corruption Chair:JeanMonville,SPIESA(FR)

Task Force on Corporate Governance Chair:DanKonigsburg,Deloitte(US)

Ad Hoc Group on Corporate Responsibility Task Force on Small and Medium Enterprises

govErnancE

Committee on Biotechnology Chair:LisaZannoni,Syngenta(CH)

Committee on Nanotechnology Chair:TerryL.Medley,DuPont(US)

Committee on Technology Chair:RichardA.Johnson,Arnold&Porter(US)

Committee on Information, Computer and Communications Policy (ICCP), Chair:JosephH.Alhadeff,OracleCorporation(US)

Ad Hoc Group on Intellectual Property Rights (IPR) Chair:RichardA.Johnson,Arnold&Porter(US)

innovation

BIAC poLICY AreAs And poLICY groups

Find more on the BIAC Policy Groups on the BIAC website...

19 I 2013 BIAC

Tabea KölbelPolicy Manager

Jonny GreenhillPolicy Manager

Maud GarnierCommunications Manager

Salette BellavoineFacilities Co-ordination

& Website

Marie-Thérèse Dos ReisAssistant to the Secretary-

General - Budget and Finance

Nathalie MazierPublications &

Interns Recruitment

Find more on the BIAC Staff members’ portfolios on the BIAC website…

Your TeAM

Bernhard Welschke Secretary-General

Hanni RosenbaumSenior Policy Manager

Nicole PrimmerSenior Policy Manager

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The Business and Industry Advisory Committee to the OECD13/15ChausséedelaMuette

75016Paris(France)Tel.:+33(0)142300960

biac@biac.orgwww.biac.org

June 2013