Normative Narratives

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Green News: Who Is Cutting and Who is Increasing GHG Emissions? The Answer May Suprise You

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I gotta say, it is nice to not be covering the Syrian civil war in this post. Events in Syria have dominated the news lately, but it seems that at least for the immediate future diplomatic exercises have stalled the prospect of outside military intervention.

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I would like to take this opportunity to highlight an interesting trend I have noticed lately, involving different countries efforts (or lack thereof) to curb greenhouse gas (GHG) emissions. The trend is interesting because it involves major players from both extremes (both high emitting nations and sustainability champions) moving forward with policies that would seem to contradict their historical stances on climate change. In recent news, the U.S. and China are moving to curb GHG emissions , while Australia and Canada are moving towards less sustainable energy portfolios.

(For some background, please see interactive maps on: GHG emissions by country per capita, CO2 emissions by country, renewable / fossil fuel energy production and consumption by country)

Australia and Canada have, in recent history, been global champions of sustainable development. Both countries were original ratifying members of the Kyoto Protocol, and have signed the protocol into law (although it appears Canada will not make it’s emissions targets). Australia became one of the first countries to sign a carbon tax into law, and while Canada does not have a federal carbon tax, several Providences have their own regulations in place. Canada and Australia, with their natural beauty, seemed like global poster-children for sustainable development. However, recent developments show these two countries shifting in the other direction.

Economic downturns have pitted environmentalists vs. industry in a zero-sum and short-sighted game, in which advocacy for sustainable development could be political suicide. Of course, in the long run, we need a more sustainable global energy portfolio; but these are problems for future generations who do not have the unemployment problems of today’s world, opponents of carbon taxes argue (I am not considering the climate change skeptic as a legitimate opposition anymore).

Canada has seen rising GHG emissions in recent years, with no future decline in sight–if anything, increased production of oil sands forecasts emissions trending upwards in Canada. Politics have turned against environmentalists in Canada for reasons discussed above; anybody who thinks about environmental sustainability implicitly does not care about jobs / the economy / problems facing Canadians today (sound familiar? this is a common argument for putting off action on reducing emissions around the world).

Australia recently had elections, which were won by conservatives based partially on a promise to abolish the unpopular carbon tax:

The Australian mining industry welcomed Saturday’s election of Prime Minister Tony Abbott and his coalition’s pledge to abolish the carbon tax on fugitive greenhouse gas emissions from coal mines and the Minerals Resource Rent Tax on coal and iron ore mining profits.

The coalition of Liberal and National parties campaigned on a platform to repeal the taxes within 100 days of taking the reins of government.

“On the first sitting day of Parliament under a coalition government, I will introduce legislation to repeal the Carbon Tax,” Abbott said on the Liberal party’s website that included policy documentation stating the party would also rescind the MRRT.

For some Australians, the free-rider issue seems to make being environmentally conscious not worth fronting the bill–literally:

The carbon tax is one reason Sydney resident Geoff Hamment, who normally votes for Labor, is supporting the conservatives this time around. Hamment said he’s seen his household electricity bills go “through the roof” since the tax was introduced.

“I don’t like it,” he said. “I think us paying so much is just pointless when you have countries like China churning it out.”

The tax is extremely unpopular, despite the fact that most Australians, but not the wealthy, get government compensation for higher electricity prices.

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For all the well-founded China bashing on the environmental front–China has overtaken the U.S. as the global leader in terms of absolute GHG emissions (although the U.S., per capita, still emits more than China; this is arguably a better measure of a countries energy efficiency)–the Chinese government appears to be trending towards more sustainable environmental policies:

BEIJING — The Chinese government announced an ambitious plan on Thursday to curb air pollution across the nation, including setting some limits on burning coal and taking high-polluting vehicles off the roads to ensure a drop in the concentration of particulate matter in cities.

The plan, released by the State Council, China’s cabinet, filled in a broad outline that the government had issued this year. It represents the most concrete response yet by the Communist Party and the government to growing criticism over allowing the country’s air, soil and water to degrade to abysmal levels because of corruption and unchecked economic growth.

The criticism has been especially pronounced in some of China’s largest cities, where anxious residents grapple with choking smog that can persist for days and even weeks. In January, the concentration of fine particulate matter in Beijing reached 40 times the exposure limit recommended by the World Health Organization.

For years China has had an array of strict environmental standards on paper, and its leaders talk constantly about the need to improve the environment. But enforcement has been lax, and the environment has continued to deteriorate at an alarming rate.

“The plan successfully identifies the root cause of air pollution in China: China’s industrial structure,” said Ma Jun, a prominent environmental advocate. “Industrialization determines the structure of energy consumption. If China does not upgrade its coal-dependent industries, coal consumption can never be curbed.” he said. “The key to preventing air pollution is to curb coal burning — China burns half of all the coal consumed in the world.”

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In the United States, the world’s number two GHG emitter, the issue of emissions has been divided largely down partisan lines. Liberals, led by President Obama, believe in taxing carbon and subsidizing renewable energies as part of an “all of the above” energy portfolio to meet future demand and cut emissions. Conservatives tend to argue against the need to curb GHG emissions, largely for the same reasons mentioned above with respect to Canada and Australia. However, it seems Obama intends to bypass partisan gridlock by passing executive orders, carried out through the EPA, to curb emissions from fossil fuel power plants:

The Environmental Protection Agency is due to unveil next week the first batch of regulations under President Barack Obama’s new climate action plan – a carbon emissions-rate standard for new fossil fuel power plants.

If standards are as strict as the industry expects, it could be the death knell for new coal plant construction. The recent bankruptcy of Longview, a highly efficient West Virginia coal plant, is an example of the pressures already facing the industry.

The EPA is due to issue an emissions-rate standard for new fossil fuel power plants by September 20. Proposed standards on existing plants will follow in 2014.

Obama asked the EPA to re-propose a rule it introduced last year using a section of the federal Clean Air Act that required all new power plants, including those that use coal, to meet a standard of 1,000 pounds of carbon dioxide per megawatt hour – the rate of an average gas-fired plant.

Sources that have met with the administration in recent weeks said the agency has likely revised its earlier proposal to provide separate standards for natural gas and coal plants, and also raised the emissions limits for coal plants.

The new rules, like those initially proposed in 2012, are also likely to include a requirement for new coal plants to use a form of carbon capture and storage (CCS), a technology that captures carbon emissions and stores the carbon underground, that is years away from being available on a commercial scale.

Eugene Trisko, a lawyer who represents clients such as the American Coalition for Clean Coal Electricity in energy and environmental matters, said CCS cannot be deployed if coal plants, such as Longview, are unable to run.

“If you really wanted to advance CCS, you really need to build new coal plants because those are the plants that one day or another would be the laboratories for CCS,” he said.

“Nobody is going to put CCS on plants that are 50 years old,” he added.

But some environmentalists argue that new EPA rules will only add another layer of financial risk around coal plant investment even in coal-reliant states like West Virginia.

Instead of investing in new coal plants, which will only become more costly, states should diversify their energy supply, said Cathy Kunkel, an energy research consultant and fellow at the Institute for Energy Economics and Financial Analysis.

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The concept behind taxing carbon emissions and subsidizing renewable energies is pretty straightforward. Emissions represent a negative externality, pollution, that is a detriment to society as a whole. A carbon tax or cap-and-trade system creates a cost for this negative externality, discouraging its use and potentially helping to fund R & D in renewables (and therefore encouraging competing cleaner energy sources). Renewable energy has positive externalities (energy with lower levels GHG emissions), subsidies compensate producers for these externalities. Furthermore, renewable energy is still a relatively infant industry, which combined with its inherent positive externalities and increasing global energy demand, make it a prime candidate for government subsidy.

Do not get me wrong, we are still a long way away from the point where China and America can lecture Australia and Canada about their emissions (especially considering that China and America represent large export markets for Australian and Canadian fossil fuels respectively). However, it is interesting to note the role reversal, which I believe at it’s root is a failure of the international community to embrace the concept of “common but differentiated responsibilities”. Previous environmental champions, discouraged by the lack of international commitment to emissions reductions, have created an environment where politicians can win elections by tapping into that frustration. “We have tried, now we are concerned with our own problems.” people in these countries may argue. Australia has taken this stance on step further, with respect to ODA:

The outgoing Labor government said in May that Australia’s long-standing pledge to increase its foreign aid spending to 0.5 percent of gross national income by 2015-16 would be postponed by two years.

The coalition said in a statement last week that it shared Labor’s commitment to reach the 0.5 percent target “over time, but cannot commit to a date given the current state of the federal budget.”

“I have to say, there are higher immediate priorities” than reaching the 0.5 percent target, Abbott told reporters last week. “The best thing we can do for our country and ultimately the best thing we can do for people around the world is to strengthen our economy.”

The plans have been condemned by opponents and aid groups, who dubbed it short-sighted and contrary to the nation’s image of global cooperation, particularly in light of Australia’s recent appointments to presidency of the U.N. Security Council and the G-20 in 2014.

While this stance on international relations is obviously flawed and short-sighted, it is understandable how Canada and Australia got to this point. The U.S. and China, on the other hand, are recognizing they must lead any global initiative to reign in GHG emissions, before the costs rise further and irreparable damage is done.  China has an even more pressing problem, with the deadly smog it’s unchecked emissions has produced. This is the natural ebb and flow of accountability without coordinated global policy. Those who are mostly responsible for GHG emissions, fearing future accountability, want to work together to make those future costs as low and evenly shared as possible. Those who have forgone some economic growth for sustainable development in the past feel they have already done their part, and are beginning to forsake what they see as failed international commitments for domestic goals.
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This is a failure of global policy coordination, and one the world cannot afford. The G20 would be a natural place to come up with a global environmental commitment, based on the concept of “common but differentiated responsibilities” (which is really only fair) as the worlds largest emitters are represented there. Furthermore, as a relatively new group (established in 1999, the first meeting of the G20 Leaders took place in Washington, D.C., on November 14-15, 2008), the G20 doesn’t have the history of failed negotiations that sometimes doom other global climate change efforts. Australia taking over the U.N.S.C. and G20 presidency in 2014 looked liked a “win” for sustainable development a few years back; now I am not so sure that is the case.
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Transparency Report: In Response to the Vladimir Putin NYT Op-Ed, and the Future of the International Community

Welcome to Russia’s Syria doublespeak

A few of my responses / comments on Vladimir Putin’s NYT Op-Ed seemed to form a blog that I felt compelled to share (and expand upon without character limits) with the NN community:

The United Nations’ founders understood that decisions affecting war and peace should happen only by consensus, and with America’s consent the veto by Security Council permanent members was enshrined in the United Nations Charter. The profound wisdom of this has underpinned the stability of international relations for decades.

No one wants the United Nations to suffer the fate of the League of Nations, which collapsed because it lacked real leverage. This is possible if influential countries bypass the United Nations and take military action without Security Council authorization.

The potential strike by the United States against Syria, despite strong opposition from many countries and major political and religious leaders, including the pope, will result in more innocent victims and escalation, potentially spreading the conflict far beyond Syria’s borders. A strike would increase violence and unleash a new wave of terrorism. It could undermine multilateral efforts to resolve the Iranian nuclear problem and the Israeli-Palestinian conflict and further destabilize the Middle East and North Africa. It could throw the entire system of international law and order out of balance.

I had this to say in response:

Mr. Putin is using the UNSC, like he has the concept of national sovereignty, as a shield for human rights violators, and evoking the specter of past wars to paralyze the international community into inaction. Don’t trust Vladamir Putin because he writes an op-ed in the NYT. Do not trust Assad; while no one’s hands are clean in the Syrian Civil War, Assad has committed human rights violations on a drastically larger scale than have extremist elements of the Syrian opposition (perhaps supporting the argument that a legitimate Syrian opposition is still in control on the ground despite reports of increased extremist influence).

Syria’s civil war is a fight for democracy; it started as peaceful protests for basic human rights and dignity. The longer the international community is paralyzed, the further legitimate grievances are highjacked by extremists in the Syrian opposition. If Syria and Russia can hold out for long enough, there will truly be no champions of democracy in Syria–as time goes on, Assad’s assertions become self-fulfilling, explaining this desperate attempt to buy time. Assad continues to receive help from Russia, Iran and Hezbollah; the opposition receives only broken promises from the West and support from extremists.

Political Islam and democracy are reconcilable, the wrong message is currently being sent in the ME (in both Egypt and now Syria). The “responsibility to protect” (R2P) is about holding governments accountable for human rights obligations, and intervening in the case the government is unable to stop human rights violations, or even worse is perpetuating those violations themselves (as is clearly the case in Syria, and has been since before chemical weapon usage). In this sense, R2P supersedes national sovereignty in certain instances The future of R2P and modernization in the Middle-East and Africa are closely tied.

This is not the end failed of the Arab spring–democratization and modernization are time consuming and non-linear processes–the freedoms, human dignity, economic empowerment and security it bestows are well worth it.The time has come when global powers must be willing to use more than words in support of their ideals. Vested interests play by their own rules in trying to secure their hold on power–this is no accountability. The forces of democratization and modernization should recognize this, and know when to work within international mechanisms (such as the UNSC) and know when such mechanisms are being used to shield for violators of the very international laws they are meant to uphold!

The international community can’t say we can’t afford to intervene due to fiscal constraints at home–FIND A WAY through joint action! Currently, autocratic regimes in the M-E are weakened and peoples’ latent desire for effective democratic governance is well cited through social media / ICT usage, and reinforced through the results of the UN “My World 2015 Survey” and the Post-2015 Global Consultation on Governance. If we do not seize this opportunity now autocracy will take deeper root, and advocates for democracy will face another era of historic precedent reinforcing the inevitability of autocratic rule / democratic failure in the Middle-East and Africa. Simply put, if the international community does not find a way to protect the interests of civil societies in the M-E and Africa now, it may not get the opportunity again for decades to come.

Ultimately, it comes down to ideological differences within the international community. The G20 leaders summit reinforced the idea that we can all agree on the need to cooperate to grow in a sustainable economic fashion–the ideological split is no longer capitalism vs. communism, but human rights v. national sovereignty. How to make capitalism work for sustainable development remains the point of contention. The growing body of both empirical and theoretical evidence pointing to the merits of a human rights based approach for sustainable human development. The UN, the foremost organization for international relations, has adopted a human-rights based approach to development. However, Russia clearly is not committed to human rights, and despite soft rhetoric and better relations between the US-China in recent months, it appears the Communist Party–like the Kremlin–is more concerned with its own survival than the sustainable human development / desires of its’ civil society.

It would appear that the ideologies of major global powers a diverging, not converging, even as advancements in the social and physical sciences point alarmingly to the need for concerted global efforts to embrace sustainable human development.

I must call into question the merits of the U.N.S.C. veto system, a system in which an individual country can hand-tie the whole international community into inaction. A resolution could be a 3/4 veto-overrule by the UN General Assembly–such a high veto threshold would ensure the U.N.S.C. is only overruled in times of strong international consensus. Permanent Security Council members, including the U.S., would likely oppose such an amendment to the UN Charter. However, if the ultimate result is a more democratic and effective UN System, this is a power the U.S. should willingly give up and a reform we should advocate for.

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I also wanted to share a response to a well thought out comment in response to the Op-Ed:  jfx from Chicago writes: Well written. I appreciate hearing Putin’s thoughts directly, and hopefully his open letter to the US can be reciprocated, allowing Obama to directly address the Russian people on important topics.

I wanted to share my response because this seemed like a rational and logical response; the hope that Obama could prepare a similar address to the Russian people to enhance communications between the two countries and possible effect Russian national consensus. 441 people recommended the response, and the NYT shared it as a “top response”–so clearly many support this notion. Unfortunately, this is not a realistic possibility (my response):

Due to media restrictions, Obama couldn’t do it; whenever a U.S. official tries to address an issue in Russia they are accused of conspiracy. Even if he could, the Kremlin is insulated from such unimportant things (/sarcasm) as the “will of the people”.

This was a smart move by Putin, he is a very calculating man. He knows the value Americans place on the freedom of speech and press, and is playing on that knowledge. This is a move that cannot be reciprocated, and even in the special circumstances it was allowed to happen, it would not have nearly the same effect on policy.

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The international community will explore a diplomatic chemical weapons deal because it is our collective duty to attempt to destroy these WMDs. However, we must continue to assert our willingness to strike militarily should Russia / Assad appear to be stalling for time and / or restricting access to potential storage sites. Furthermore, Assad must commit to isolated cease-fires within a reasonable time period in order for intentional inspectors and chemical weapons disarmament experts to do their work in relative safety (if we can keep non-extremists from the opposition out of these areas too, and provide security against extremists in the opposition, the Syrian government would be the only remaining party capability of shelling these areas). Russia must also commit to cancelling all military contracts with Assad.

Assad and Russia have a lot of social capital to make-up if they want to be able to negotiate in good faith with the international community / the Syrian opposition; agreeing to these terms are where they must start. These terms should not be preconditions for diplomatic talks, but failure to agree to any of them could be considered “red-lines” in negotiations (I know we are all sick of that saying but they are a necessary component of any negotiation) and trigger a house vote on military strikes and serve as a signal for the international community to sanction military intervention (if not through the paralyzed UNSC, then individually / through regional blocs). Failure to push for these concessions would represent a failure by the intentional community to properly leverage the likelihood of military strikes against Assad.


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Highlights From the St. Petersburg G20 Leaders Declaration

The G20 Leader’s summit was held in St. Petersburg, Russia over the past 2 days. While much has been made over the lack of an international consensus on Syria, less attention has been given to agreements made on global political economy decisions. Global leaders reinforced the importance of cooperation, transparency and trust on global issues such as renewable energy / climate change, sustainable economic development, financial regulation and tax avoidance.

Furthermore, the international community reaffirmed its commitment to the UN Post-2015 Development Agenda, with a human rights based approach to sustainable human development at it’s core. It also reaffirmed the idea that certain issues (ex tax avoidance, financial regulation) require global policy coordination to be effective, and recognized the G20’s unique ability–by representing 2/3 of the worlds population and 90% of economic output–to hold countries accountable for “cheating” on international agreements.

The resolution reaffirmed the importance of rule of law, transparency, and judicial independence for fostering trust between civil society and governments, and conversely how corruption can undermine both this trust and the trust between governments in global governance mechanisms. In recognition of the destructive power of corruption, the resolution reaffirms a global effort to combat corruption through education campaigns and empowering civil society to practice “social accountability” via ombudsman’s offices / NHRIs.

Below are the highlights of the Saint Petersburg Declaration (as I see them, I realize the post is a bit lengthy, but I was able to capture the 27 page documents essence in about 5 pages–woohoo academic / knowledge management experience). Underneath certain resolutions I included (in parenthesis) how that resolution fits into a common NN theme. For those who wish to read more in depth on G20 resolutions, I suggest the Saint Petersburg Development Outlook, the FSB report on financial reforms, and the Tax Annex to the Saint Petersburg G20 Leaders Declaration.

(It should be noted that grandiose rhetoric is often used in global policy summits. There is a difference between resolutions and implementing / financing programmes to operationalize those resolutions. However, at least on the sustainable economic development and global policy coherence fronts, important groundwork was laid down at the summit)

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G20 LEADERS’ DECLARATION
Saint Petersburg Summit
5-6 September 2013
Preamble 

5. We understand that sound and sustainable economic growth will be firmly based on increased and predictable investments, trust and transparency, as well as on effective regulation as part of the market policy and practice.

6. As Leaders of the world’s largest economies, we share responsibility for reinforcing the open and rules-based global economic system. We are committed to working cooperatively to address key global economic challenges:

  • Achieving a stronger recovery while ensuring fiscal sustainability. We have today agreed the St Petersburg Action Plan, which sets out our strategies to achieve strong, sustainable and balanced growth.
  •  Unemployment and underemployment, particularly among young people. We are united in the resolve to achieve better quality and more productive jobs. Coordinated and integrated public policies (macroeconomic, financial, fiscal, education, skills development, innovation, employment and social protection) are key to reach this goal. We today committed to continue our efforts to support inclusive labour markets, with the exchange of country-specific plans or sets of actions, developed as appropriate according to our different constitutional circumstances.

(In line with the principle of self-determination)

  • Free and rules-based trade fosters economic opportunities. We stress the crucial importance of strong multilateral trading system and call on all the WTO members to show the necessary flexibility and reach a successful outcome in this year’s multilateral trade negotiations. We extend our commitment to refrain from protectionist measures and aim at enhancing transparency in trade, including in regional trade agreements.
  • Cross-border tax evasion and avoidance undermine our public finances and our people’s trust in the fairness of the tax system. Today, we endorsed plans to address these problems and committed to take steps to change our rules to tackle tax avoidance, harmful practices, and aggressive tax planning.

We have agreed and are implementing a broad range of financial reforms to address the major fault lines that caused the crisis. We are building more resilient financial institutions, making substantial progress towards ending too-big-to-fail, increasing transparency and market integrity, filling regulatory gaps and addressing the risks from shadow banking. We will pursue our work to build a safe, reliable financial system responsive to the needs of our citizens.

 G20 countries have a responsibility to ensure that all people have an opportunity to gain from strong, sustainable and balanced growth. We endorse the St Petersburg Development Outlook to focus our efforts on concrete steps to improve food security, financial inclusion, infrastructure, human resource development and domestic resource mobilization.

(The universality of human rights based development)

Corruption impedes sustainable economic growth and poverty reduction, threatening financial stability and economy as a whole. We will hold ourselves to our commitment to implement the G20 Anti-Corruption Action Plan, combating domestic and foreign bribery, tackling corruption in high-risk sectors, strengthening international cooperation and promoting public integrity and transparency in the fight against corruption. Recognizing the need for sustained and concerted efforts we endorse the St Petersburg Strategic Framework.

We share a common interest in developing cleaner, more efficient and reliable energy supplies, as well as more transparent physical and financial commodity markets. We commit to enhance energy cooperation, to make energy market data more accurate and available and to take steps to support the development of cleaner and more efficient energy technologies to enhance the efficiency of markets and shift towards a more sustainable energy future. We underscore our commitment to work together to address climate change and environment protection, which is a global problem that requires a global solution.

We will continue to develop comprehensive growth strategies to achieve stronger, more sustainable and balanced growth in the context of fiscal sustainability.

7. Too many of our citizens have yet to participate in the economic global recovery that is underway. The G20 must strive not only for strong, sustainable and balanced growth but also for a more inclusive pattern of growth that will better mobilize the talents of our entire populations. 

(“no-person-left-behind” human rights based approach (HRBA) to development, inclusive growth to reduce inequalities of opportunity / break power asymmetries)

Global Economy and G20 Framework for Strong, Sustainable and Balanced Growth
10. We consider the main challenges to the global economy to be:

  •  Weak growth and persistently high unemployment, particularly among youth, and the need for more inclusive growth in many economies;
  •  Financial market fragmentation in Europe and the decisive implementation of banking union;
  •  Slower growth in some emerging market economies, reflecting in some cases the effect of volatile capital flows, tighter financial conditions and commodity price volatility, as well as domestic structural challenges;
  •  Insufficient levels of private investment in many countries, in part due to continuing market uncertainties, as well as internal rigidities;
  •  High public debt and its sustainability in some countries that need to be addressed while properly supporting the recovery in the near-term, especially in countries with the highest actual and projected debt to GDP levels;
  •  Volatility of capital flows as growth strengthens and there are expectations of eventual monetary policy recalibration in advanced economies;
  •  An incomplete rebalancing of global demand; and
  •  Continued uncertainties about fiscal policy deliberations.

15. We reiterate that excess volatility of financial flows and disorderly movements in exchange rates can have adverse implications for economic and financial stability, as observed recently in some emerging markets. Generally stronger policy frameworks in these countries allow them to better deal with these challenges. Sound macroeconomic policies, structural reforms and strong prudential frameworks will help address an increase in volatility. We will continue to monitor financial market conditions carefully.

16. We commit to cooperate to ensure that policies implemented to support domestic growth also support global growth and financial stability and to manage their spillovers on other countries.

(Accountability for extra-territorial human rights obligations)

Growth through Quality Jobs

26. Policy reforms to support higher employment and facilitate job creation and better matching of skills with job opportunities are central in our growth strategies. We commit to take a broad-ranged action, tailored to national circumstances, to promote more and better jobs:

  • Invest in our people’s skills, quality education and life-long learning programs to give them skill portability and better prospects, to facilitate mobility and enhance employability.

(Human capital investment for sustainable human development)

29. Promoting youth employment is a global priority. We are committed to quality apprenticeship and vocational training programmes, finding innovative ways to encourage firms to hire youth for example by, where appropriate, reducing non-wage labour costs, moving towards early intervention measures and effective job-search assistance for different groups of youth, and motivating youth entrepreneurship and business start-ups. Tailored strategies including youth guarantee approaches, developing school and university curricula that support entrepreneurship, and facilitating exchange of best practices among the G20 countries and the social partners are crucial in this respect.

(Recognizing youth as a critical stage of personal and professional development, and adequate investment reflecting this recognition)

Growth through Quality Jobs
81. Supporting strong, sustainable, inclusive and resilient growth and narrowing the development gap remain critical to our overall objective for jobs and growth. In this regard, we welcome the progress within the forum achieved this year, in particular on:

  • Food Security: Support to the Secure Nutrition Knowledge Platform, exchange of best practices through the seminar on “Food Security through Social Safety Nets and Risk Management”, and convening the second G20 Meeting of Agricultural Chief Scientists, along with its ongoing work to identify global research priorities and targets and support results-based agricultural research in 2014.
  • Infrastructure: Completion of the Assessment of Project Preparation Facilities (PPFs) for Infrastructure in Africa; a toolkit on Urban Mass Transportation Infrastructure Projects in Medium and Large Cities by the World Bank and the ADB; and a public-private partnerships (PPP) sourcebook by the World Bank, IDB and ADB, and progress in implementing the recommendations of the High Level Panel on Infrastructure.

(PPP for physical and human capital investments. Both governments and businesses rely on productive societies for growth.)

  • Financial Inclusion: Enhanced coherence with the G20 finance track through the Global Partnership for Financial Inclusion (GPFI) to pursue efforts to strengthen financial inclusion including work to further reducing the global average cost of transferring remittances to 5% including through innovative result-based mechanisms, to enhance financial literacy and consumer protection for the poor and to foster access to finance for investment, for SMEs for growth, job creation and poverty reduction; and together with the IFC launching the Women Finance Hub.
  • Human Resource Development: Launch of a global public-private knowledge sharing platform on skills for employment and the development of national actions plans on skills for employment in LICs and of a database on skills indicators.
  •  Inclusive Green Growth: Further development, dissemination and implementation of the non-prescriptive, voluntary toolkit of policy options for inclusive green growth in the context of sustainable development, including a workshop with developing countries, and initiation of the G20 Dialogue Platform on Inclusive Green Investments for sustainable development and poverty eradication.
  • Domestic Resource Mobilization: Continued work on strengthening tax administrations in developing countries, particularly LIC’s, through both bilateral and multilateral programs, such as the work of the OECD and G20 members on BEPS, automatic exchange of information, the Global Forum on Transparency and Exchange of Information for Tax Purposes and “Tax Inspectors without Borders” and the expansion of the work of the World Bank Group and the IMF to support developing countries’ ability to raise domestic resources. 

83. We welcome the Saint Petersburg Accountability Report on G20 Development Commitments, which sets out the progress achieved since we adopted the 2010 Seoul Multi-Year Action Plan on Development (MYAP) (Annex). This report demonstrates that many of our development commitments have now been implemented and identifies lessons learned and it highlights the successes achieved. The Accountability Report underlines the importance of continued monitoring and identifies areas where we must continue to work and opportunities to strengthen and streamline the G20 development agenda.

84. In this spirit, we endorse the Saint Petersburg Development Outlook, which states our core priorities, new initiatives and ongoing commitments (Annex). Building on the foundation of the 2010 Seoul Development Consensus for Shared Growth, the Outlook frames the approach to our future work. We ask the Development Working Group to focus on concrete actions under the core priorities of food security, financial inclusion and remittances, infrastructure, human resource development and domestic resource mobilization, and to deliver specific outcomes at the Brisbane summit. We commit to improve working practices for more effective outcomes by:

  •  concentrating on fewer key areas where action and reform remain most critical to ensure inclusive and sustainable growth in developing countries;
  •  enhancing policy coordination across different G20 work streams in order to ensure greater impact on developing countries;
  •  implementing a forward accountability process to improve monitoring and coordination, and ensure greater transparency of our work;
  •  continuing to expand engagement and partnerships with stakeholders, including non-G20 countries (especially LICs), international organizations, the private sector    and civil society; ensuring flexible approaches to respond to new priorities and circumstances

(Post-2015 development agenda consultations—human rights (political and social empowerment) for inclusive global and national agenda setting)

85. We welcome the substantial progress towards achieving the Millennium Development Goals (MDGs) since 2000 and the success in galvanizing global action to reach specific targets globally, as well as in individual countries, particularly in eradicating extreme poverty and promoting development. However, the prospects for achieving all of the MDGs differ sharply across and within countries and regions. We remain committed to accelerating progress towards achieving the MDGs, particularly through the implementation of our development agenda and our focus on promoting strong, sustainable, inclusive and resilient growth.

86. We support the ongoing efforts in the UN for the elaboration of the post-2015 development agenda. We commit to participate actively in this process and engage in the discussion on the direction of the new framework and its key principles and ideas and effectively contribute to the timely conclusion of the process. The final outcome will be determined through an intergovernmental process in which we will all participate, but much preparatory work is still underway. We welcome the contribution of the report prepared by the High-Level Panel of Eminent Persons on the Post-2015 Development Agenda, which sets out some illustrative goals We also welcome the ongoing work of the UN General Assembly Open Working Group on Sustainable Development Goals and Intergovernmental Committee of Experts on Sustainable Development Financing. We stress the crucial importance of collective action, including international development cooperation, based on the principles outlined in the Millennium Declaration, the 2012 Rio+20 outcome document “The Future We Want”, the Istanbul Declaration and Programme of Action of the Fourth UN Conference on Least Developed Countries and the outcomes of other relevant UN Conferences and Summits in the economic, social and environmental fields.

87. We call for an agreement on an integrated post-2015 development agenda with concise, implementable and measurable goals taking into account different national realities and levels of development and respecting national policies and priorities, focused both on the eradication of extreme poverty, promoting development and on balancing the environmental, economic and social dimensions of sustainable development. We commit to ensure that G20 activities beyond 2015 are coherent with the new development framework. 

Sustainable Energy Policy and Resilience of Global Commodity Markets

95. Sizable investment, including from private sources, will be needed in the G20 and other economies in energy infrastructure in the years ahead to support global growth and development. It is our common interest to assess existing obstacles and identify opportunities to facilitate more investment into more smart and low-carbon energy infrastructure, particularly in clean and sustainable electricity infrastructure where feasible. In this regard we encourage a closer engagement of private sector and multilateral development banks with the G20 Energy Sustainability Working Group (ESWG) and call for a dialogue to be launched on its basis in 2014 that will bring interested public sector, market players and international organizations together to discuss the factors hindering energy investment, including in clean and energy efficient technologies and to scope possible measures needed to promote sustainable, affordable, efficient and secure energy supply.

Intensifying Fight Against Corruption

103. Corruption is a severe impediment to sustainable economic growth and poverty reduction and can threaten financial stability and the economy as a whole. Corruption is corrosive, destroying public trust, distorting the allocation of resources and undermining the rule of law. To provide a better understanding of the factors constraining the economic potential of countries affected by corruption, we make available the Issues Paper on Anti-Corruption and Economic Growth and encourage the OECD, in collaboration with the World Bank to continue work in this area.

104. As a group of the world’s largest economies, the G20 has the potential to create unstoppable momentum towards a global culture of intolerance towards corruption. We will redouble our efforts to achieve this goal, in particular by enhancing transparency and closing implementation and enforcement gaps.

108. We renew our commitment to ensure the independence of the judiciary, as well as to share best practices and enforce legislation to protect whistleblowers, ensure the effectiveness of anti-corruption authorities free from any undue influence, and promote the integrity of public officials.

109. We also place a high value on implementing and raising awareness regarding effective anti-corruption education programs to build and reinforce a culture of intolerance towards corruption.

(The importance of “social accountability” and access to information in combating corruption, claiming human rights / holding violators accountable)

112. We recognize that a culture of intolerance towards corruption will only be achieved if we work in partnership with business and civil society. We commit to maintain and build on the enhanced dialogue between the G20 Anti-Corruption Working Group and the B20 and C20, and have taken note of the recommendations of these two groups. In particular, we welcome the business community’s initiatives to enhance anti-corruption collective actions and to develop institutional arrangements to promote anti-corruption compliance in the private sector.

(Consultative policy setting agenda, PPPs for shared programme financing, accountability / oversight, and technical assistance in realization of different stakeholders comparative advantages and common goals) 


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G20 Kicks-Off Today, A Number of Hot-Topic Issues to be Discussed by World Leaders

G20 Russia 2013

From the international financial and monetary systems to international tax-evasion to armed conflicts, the worlds leaders are getting together to figure out how to minimize human rights violations and hold parties accountable for their violations.

The ultimate goal is to put in place global and national policies needed for sustainable human development in the 21st century–an ambitious goal indeed! Difficulty must not deter our normative visions for the future; as a global community we must attack these issues proactively and in a preventative nature whenever possible.

I urge the NN community to stay up-to-date on G20 related news. I will be sure to write a blog upon the conclusion of the G20 leaders summit.


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Transparency Report: Snowden and Snow-now

preview

Just 6 days ago it seemed like their was a chance that the Edward Snowden debacle could be resolved internally:

The United States has made a formal promise to Russia not to execute or torture Edward Snowden if he is sent home to face charges of illegally disclosing government secrets, and the Kremlin said Russian and U.S. security agencies are in talks over his fate.

The 30-year-old former U.S. spy agency contractor has been stuck in the transit area of a Moscow airport for more than a month despite Washington’s calls to hand him over.

Russia has refused to extradite Snowden, who leaked details of a secret U.S. surveillance program including phone and Internet data, and is now considering his request for a temporary asylum.

In a letter dated Tuesday July 23 and released on Friday, U.S. Attorney General Eric Holder wrote that he sought to dispel claims about what would happen to Snowden if he is sent home.

“Mr. Snowden has filed papers seeking temporary asylum in Russia on the grounds that if he were returned to the United States, he would be tortured and would face the death penalty. These claims are entirely without merit. Torture is unlawful in the United States,” Holder wrote, without explicit reference to Manning. “If he returns to the United States, Mr. Snowden would promptly be brought before a civilian court.”

“Snowden was charged with theft of government property, unauthorized communication of national defense information and willful communication of classified communications intelligence information to an unauthorized person.

The latter two offenses fall under the U.S. Espionage Act and carry penalties of fines and up to 10 years in prison.”

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Russian President Vladimir Putin had expressed “strong determination”, he said, not to let relations suffer over the dispute “no matter how the situation develops”. Putin himself is not personally dealing with the problem, the spokesman said.

But he reiterated Moscow’s stance that Russia “did not hand over, does not hand over and will not hand over anybody”.

Putin, a former KGB spy, has said Snowden could only be granted sanctuary in Russia if he stopped actions that could harm the United States.

However, a smooth ending to the Edward Snowden saga was not to be, as Moscow today extended “temporary asylum”  to Snowden for one. This effectively puts Snowden out of reach for the next year from the American legal system. News of this decision drew a sharply negative response from the White House:

Russia granted National Security Agency leaker Edward Snowden asylum on Thursday and allowed him to leave Moscow’s Sheremetyevo International Airport for the first time in more than a month, raising the prospect that the U.S. fugitive will remain in Russia for the foreseeable future and become a constant strain on already-tense relations with the U.S.

“We are extremely disappointed that the Russian government would take this step despite our very clear and lawful request” to have him expelled, said Mr. Obama’s chief spokesman, Jay Carney. “Mr. Snowden is not a whistleblower—he is accused of leaking classified information.”

The decision undermines long-standing law-enforcement cooperation between Moscow and Washington, Mr. Carney said.

Russia’s decision also threatens to derail a planned September summit in Moscow between President Barack Obama and Russian President Vladimir Putin, which U.S. officials had viewed as a potential breakthrough moment in a monthslong drive to find common ground with Russia on important foreign-policy aims, such as ending the war in Syria. “We are evaluating the utility of a summit in light of this,” Mr. Carney said, adding that no decision had been made.

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Senator John McCain, a well respected Senator with unparalleled foreign relations experience (and subsequent influence on foreign relations discourse), was even more critical of the move:

U.S. Senator John McCain is furious about whistleblower Edward Snowden’s newly-acquired asylum, and is demanding that Washington re-examine its relations with Moscow and “strip away the illusions that many Americans have had about Russia.”

Following the news of Snowden’s one-year asylum status in Russia, McCain released an angry statement in which he condemns the “disgraceful” actions of President Vladimir Putin.

“Russia’s action today is a disgrace and a deliberate effort to embarrass the United States,” the senator said. “It is a slap in the face of all Americans. Now is the time to fundamentally rethink our relationship with Putin’s Russia. We need to deal with the Russia that is, not the Russia we might wish for.”

“Today’s action by Putin’s Russia should finally strip away the illusions that many Americans have had about Russia the past few years,” he said. “We have long needed to take a more realistic approach to our relations with Russia, and I hope today we finally start.”

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Russia’s response to American outrage has been weak and arguably oblivious to the reality of the matter:

One of Mr. Putin’s aides, Yuri V. Ushakov, said on Thursday that Mr. Snowden’s fate was of “insignificant character” and thus would not affect relations, according to the state news agency, RIA Novosti. He added that the Kremlin was aware that Mr. Obama might cancel his trip to Moscow but had received no official notification from officials in Washington.

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It is unfortunate that Russia decided to grant Snowden asylum, as more than anything it adds to what the article refers to as the “constant strain on already-tense relations with the U.S”. Russia and the U.S. have a very interesting historical relationship. Despite obvious fundamental differences, since the end of the Cold War both Russia and the U.S. have been able to coexist, and at times cooperate, in global affairs despite mistrust and misunderstanding by both sides. Because of this longstanding yet complex / secretive relationship, every official action between the two countries adds on top of an already long list of diplomatic baggage. The Snowden issue is just the most recent manifestation of the somewhat cooperative yet mostly competitive and ideologically divided relationship that defines modern US-Russian relations.

Balking at the G-20 talks would be counter productive; I have gone on record recently (here and here) about the importance of the upcoming G-20 talks. It appears the global community is ready to seriously start addressing issues that require global policy coherence, such as corporate tax evasion, environmental and security issues. Furthermore, it appears the U.S. federal government will simultaneously push legislation to operationalize international agreements, hopefully beginning a trend of coherent global-good-governance. There are a multitude of issues, both bilateral and multilateral, which the U.S. must take a leading role on at the G20 summit. How U.S.-Russia relations evolve from this incident is yet to be determined. A good way to press forward constructively is for Obama to attend G-20 talks. By all means boycott the 2018 Winter Olympics, but the G-20 summit should not be used as a diplomatic bargaining chip, there is too much at stake.

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In a way, this is a fitting temporary conclusion to the Snowden saga–a life of constant limbo and uncertainty of his own human rights. These are in essence the opposite of core elements of American society–security, freedom, self-determination and expression. 

For Mr. Snowden, Russia’s hospitality could prove a mixed blessing. The Kremlin has demanded he cease his “political activities” in order to stay in the country, curtailing his potential options for work.

If Snowden thought the U.S. Federal government was bad, he is about the meet the Kremlin (sounds ominous no?). The Russian government violates human rights with relative impunity, and uses national sovereignty as a shield from accountability for domestic and extra-territorial human rights violations (most prominently the continued provision of advanced arms to Assad in Syria). Snowden thought he would be a hero, instead he is for all intents and purposes under house-arrest in Russia.

If recent events have taught us anything it is that governments with adequate resources, aided with advances in information and communications technology (ICTs), have virtually global surveillance capabilities;. Snowden’s every move will be watched during his time in Russia by both the Obama administration and the Kremlin. In his attempt to expose human rights violations by the U.S. government, Snowden has in effect sacrificed his own rights. He has spent the last few months in Hong Kong and Moscow, not exactly hotbeds for human rights or freedom of expression. His only permanent asylum options at the moment are in Latin American countries, where governments tend to be ill-equip at even providing basic personal security.

The U.S. is not perfect–there is no perfect country. Snowden will come to realize in time that in his pursuit of perfection (or fame or more nefarious goals), he flew too close to the sun. The U.S. Government has numerous domestic and international obligations; at times those obligations appear to be incompatible and difficult decisions have to be made. The U.S. government perhaps should have been more transparent about aspects of PRISM, but our leaders believe that by its nature disclosure would inhibit the effectiveness of PRISM, and chose to keep it secret (until Snowden came along).

I never got why the collection of metadata by the U.S. Federal is such a big deal to people. After all, private sector corporations such as Verizon already have this data; are we worried that our elected officials have information that private companies already own and probably sell to advertisers? There have been exactly 0 confirmed instances of the U.S. government using PRISM data to infringe of the rights of U.S. citizens. As a country we should focus our efforts on the real issues in-front of us–there are many of them–instead of on hypothetical rights violations by the global champion of democracy and human rights.

The U.S. government made it clear that it was willing to issue Snowden a temporary passport to come home and have his day in court. Snowden has officially rebuffed this offer, and after a year in Russia, probably will never receive it again.


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Economic Outlook: The G20, Austerity v. Stimulus, Growth and the Right to Development

Original article:

“The Group of 20 nations pledged on Saturday to put growth before austerity, seeking to revive a global economy that “remains too weak” and adjusting stimulus policies with care so that recovery is not derailed by volatile financial markets.”

“Finance ministers and central bankers signed off on a communiqué that acknowledged the benefits of expansive policies in the United States and Japan but highlighted the recession in the euro zone and a slowdown in emerging markets.”

“Officials backed an action plan to boost jobs and growth, while rebalancing global demand and debt, that will be readied for a G20 leaders summit hosted by President Vladimir Putin in September.

 “Sources at the meeting said Germany was less assertive than previously over commitments to reduce borrowing to follow on from a deal struck in Toronto in 2010, with the improving U.S. economy adding weight to Washington’s call to focus on growth.

With youth unemployment rates approaching 60 percent in euro zone strugglers Greece and Spain, the growth versus austerity debate has shifted – reflected in the fact that G20 finance and labor ministers held a joint session on Friday.”

“The G20 accounts for 90 percent of the world economy and two-thirds of its population – many living in the large emerging economies at greatest risk of a reversal of capital inflows that have been one of the side effects of the Fed stimulus.

‘One thing we would like to emphasize is the importance of coordination,’ said Indonesian Finance Minister Chatib Basri, cautioning that scaling back policies of quantitative easing elsewhere “immediately affects” emerging markets.”

“The International Monetary Fund warned that turbulence on global markets could deepen, while growth could be lower than expected due to stagnation in the euro zone and slowdown risks in the developing world.

‘Global economic conditions remain challenging, growth is too weak, unemployment is too high and the recovery is too fragile,’ Managing Director Christine Lagarde told reporters. ‘So more work is needed to improve this situation.'”

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Yesterday I discussed the coordinating role groups such as the G20 play in today’s globalized economy. That post focused specifically on coordinating efforts to curb corporate tax-evasion. Today’s article emphasizes that fiscal and monetary policies must also be coordinated in order to achieve sustainable human development on a global scale.

Fiscal stimulus efforts must be coordinated; if they are not, the benefits of an individual countries stimulus programs will not be fully realized. Consider a hypothetical jobs program in the U.S. If this program is enacted unilaterally, then depressed demand in export markets (ex E.U.) will cause increased production capacity in the U.S. to lead not to greater trade but surplus goods and lower prices–employment gains will not be sustained by the private sector and will likely be reversed once stimulus money runs out. However, if fiscal stimulus programs were coordinated, and both the U.S. and the E.U. increased productive capacity and income, then a basis for trade and self-sustaining growth could emerge, making fiscal stimulus a short-term “shot in the arm” (as it is intended to be) instead of a permanent program (which is not sustainable for governments and often leads to uncompetitive industries).

Monetary policy must also be coordinated. Quantitative Easing by the U.S. Federal Reserve and the Bank of Japan have injected cheap money into the global economy. Seeking higher returns, this cheap money is often channeled towards emerging markets (such as the “BRICS”). One fear is that once QE policies wind down, emerging markets will experience “capital flight” as higher returns become available in more stable markets. In order to temper this inevitable effect of monetary tightening, both monetary policy coordination and “forward guidance” are needed from major central banks. Bernanke recently reasserted that the Fed will continue bond-buying until U.S. unemployment drops to 6.5% or inflation rises to 2.5%. However, this forward guidance is slightly muddled by ideological differences within the Fed, and amplified by Bernanke’s presumed exit as chairman of the Fed early in 2014. Coordinated monetary policy can provide the clarity needed to assuage markets. In a surprise move a few weeks ago, ECB head Mario Draghi “promised rates will remain ‘at present or lower levels for an extended period of time.’” Indications that the ECB and BoJ are committed to providing liquidity to global markets will make the Feds (eventual and inevitable) retreat from QE less damaging to global markets.   

This G20 meeting has ushered in much welcome news, “in contrast to an ill-tempered G20 meeting in February colored by talk of currency wars.”

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About a month ago, I discussed the impacts of austerity programs on states human rights obligations. This post focused a study Spanish austerity and healthcare. The G20 is more concerned with global issues (although Spain and Greece are still a poster children for youth unemployment and the social deterioration that austerity can cause during a recession, and are therefore common examples for pro-stimulus / anti-austerity proponents).

People often consider human rights as positive or negative rights; either the government has to directly provide a good / service or prevent another party from violating human rights. Another aspect of human rights is creating an enabling environment for sustainable human development. “The right to development, which embodies the human rights principles of equality, non-discrimination, participation, transparency and accountability as well as international cooperation, can guide our responses to a series of contemporary issues and challenges. The right to development is not about charity, but enablement and empowerment. High Commissioner for Human Rights Navi Pillay has called on governments and all concerned…to move beyond political debate and focus on practical steps to implement the Declaration. ‘States have the duty to cooperate with each other in ensuring development and eliminating obstacles to development,’ according to the Declaration (full text here).”

One essential element of the right to development is the international recognized “right to work”. Article 23 of the Universal Declaration of Human Rights states, “Everyone has the right to work, to free choice of employment, to just and favourable conditions of work and to protection against unemployment.” This right is a particularly important aspect of the right to development, as work income provides a means of self-determination and the ability reduce dependence on welfare programs as people attempt to realize their personal goals and aspirations.

Sometimes people do not work because they are lazy, or suffer from physical or mental conditions which impede their ability to find or maintain work. However, when unemployment rates are above 20%, and youth unemployment is above 50%, this can hardly be attributed to laziness (unless you think the world’s lazy people are all collaborating and putting themselves through years of misery in order to remain lazy, but that argument is absurd hard to sell). Such high unemployment levels are due in large part to government inaction / inability to pass stimulus programs, and the negative effects of austerity programs in the face of inadequate private sector demand / personal consumption (this is not stipulation or a normative stance, but rather what textbook economics tells us).

Such high levels of unemployment represent a failure of states to uphold the universal human “right to work”, which undermines the internationally recognized “right to development”.  For years now, economic policy has been dominated by politics and vested interests. It is heartening to see national labor and finance ministers finally coming together to “eliminate obstacles to development”. More concrete programs will probably hopefully be hammered out when heads of state come together in Moscow in September for the G20 leaders summit.

I hope this is not “too little too late”, and that the years since the Great Recession took hold have not lead to “lost generations” of young people who are doomed to a lifetime of anti-social, unproductive, and sometimes criminal behavior (as some people have argued). While there will inevitably be some lifetime dependents resulting from the Great Recession (as there always are from traumatic experiences, be they economic downturns, natural disasters or violent conflicts), I am optimistic that as a whole young adults and the unemployed in general are eager to get back to work once the global policy coherence needed to create those jobs is established. G20 meetings this past week represent a meaningful step in that direction.


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Transparency Report: The Global Partnership for Development, Global Commons, and Common But Differentiated Responsibilities.

A recurring topic here at NN is how globalization has shifted some of the most pressing political economy decisions away from national governments and into the global governance arena, where the rules are largely being drawn up as we go. Never has the world been as globalized as it is today, and we can be certain that tomorrow will only lead to further integration. 

A number of problems inherently arise in issues of global governance. There are innumerable public and private interests at work, none of which want to give up their legal/structural advantage for the greater global good. Politicians must balance the short-run interests of domestic actors with the long run interests of the global community (but only one of those groups is responsible for that politicians future job prospects). This may lead to a “free rider problem”, where a country may decide it will simply reap the benefits of global governance (which tend to be non-excludable), while not contributing anything (and by further complicating an already complex and differentiated international legal/policy/taxation order, undermining global governance initiatives). Differences in national regulations can lead to capital flight to low cost countries, creating another incentive to “cheat” on global commitments.

One way to overcome free-rider problems is to create forums or groups where countries can coordinate their policies and voice grievances with one another (and shine a spotlight on “cheaters” and “free riders”). The G-20 is one such organization. The 3G Global Governance Group is a similar group comprised of 30 more countries. Critics and proponents of such groups often bicker over the merits and limitations of inclusivity versus exclusivity–I am of the mind that if the stated goal is coordination, cooperation, and some element of global policy coherence, then the more the merrier. This does not mean we need a G-193; groups can determine for themselves their level of exclusivity, as long as they can interact together through global mechanisms such as the United Nations.

The concept of “common but differentiated responsibilities” in reference to the “global common”, has until this point been used almost exclusively in the environmental and natural resource arena. I would argue that both of these terms have a much wider application. Global commons should refer to any non-excludable good / service, with positive / negative externalities, whose effective management requires global coordination (to overcome cheater and free-riders). This new definition would include, among other things: environmental regulation, trade openness, financial and tax policies, issues of regional and global security and human rights concerns (and yes these are all interrelated issues, further boosting the argument for global coordination in tackling them).

By re-framing the concept of global commons, a new global partnership for development can take root through the UN Post-2015 Development Agenda, with the concept of common but differentiated responsibilities at its core. This concept itself will make countries more willing to coordinate on global commons issues. By acknowledging that countries are accountable to different degrees for the current state of global affairs, a basis for financing global initiatives that is fair yet acknowledges common goals all countries should be working towards can emerge. By “common but differentiated” I do not mean that countries should have different policies–quite the contrary. The “common” aspect refers to creating programs with global policy coherence, the “differentiated” aspect refers to how those programs will be financed in a way that allows them to fully realize their goals (as opposed to unfulfilled commitments that have dominated global agreements in the past).

Perhaps such commitments would be a more sustainable and effective way for donor countries to channel ODA, freeing up fiscal space for national governments in developing countries to finance their own domestic development programs without the distorting effects that large aid inflows can have.  

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The G-20 is currently focusing on the issue of corporate tax evasion. (for a refresher, in a previous blog I explored the costs to society of corporate tax evasion)

“Government officials from the world’s largest and richest economies on Friday for the first time endorsed a blueprint to curb widely used tax avoidance strategies that allow some multinational corporations to pay only a pittance in income taxes.”

“In light of such practices – which are entirely legal, but take advantage of differing tax rules around the world – the Organization for Economic Cooperation and Development has proposed that all nations adopt 15 new tax principles for corporations. The plan focuses only on corporations and would, if adopted widely, shift some of the global tax burden toward large companies — the ones big and rich enough to devise complex tax-reduction strategies — and away from small businesses and individuals, which tend to spend a much bigger share of their incomes on taxes.

“Shifting profits to low-tax countries and costs to high-tax countries is less an option for small businesses and individuals, who inevitably wind up carrying more of the tax burden as a result. In the United States, for example, taxes on corporate profit contributed 40 percent of all income tax to the United States Treasury 50 years ago. Today, corporations contribute less than 20 percent, with the slack taken up by small companies and those paying individual income tax.”

“In contrast, the owners of a small coffee shop would probably not able to reduce its tax liability by claiming they had paid royalty fees to an overseas company owning the copyright to their cafe’s name.

The reform is intended to address such inequities, the finance ministers said Friday”

“‘It’s a matter of justice and fairness,’ Angel Gurría, the secretary general of the O.E.C.D., said at the presentation of the new plan with the finance ministers of France, Britain, Germany and Russia.”

The list, presented Friday at a meeting of finance ministers of the Group of 20 countries in Moscow, includes ideas to prevent corporations from “treaty shopping” to find countries with the lowest taxes and then find ways to book their profits there, even when much the money is made elsewhere.”

“The details, however, may prove daunting and will be subject to intense lobbying by corporations. In addition, countries have long used tax policies in efforts to lure businesses to locate operations there. The O.E.C.D. plan would not seek to end such competition entirely – any country would be free to charge lower rates than others did — but it would try to keep countries from essentially offering companies ways to avoid paying taxes anywhere, something critics say Ireland did in reaching agreements with Apple.”

“The O.E.C.D. does not expect to complete work on the proposals until the fall of 2015, and after that it would be up to governments and legislatures to implement them by passing new tax laws.”

Government are coming together to address the issue of corporate tax avoidance, which could not be addressed unilaterally. Reform will take a long time and run into intense opposition, but it has to start somewhere, and the G-20 is that somewhere. If the worlds biggest economies agree on rules, smaller countries will follow suit (powerful countries often use economic leverage to secure policy changes). In time, with nowhere left to run, large corporations will have no option but to pay their fare share–to the benefit of all.