Lord Bilimoria’s opening speech on the second day of the Annual Conference highlighted the need for UK leadership on the global stage. Global leadership at a time of division, a time of crisis and a time of change. 2021 is therefore a huge opportunity, with the UK chairing two global platforms – the G7 and COP26 – and with CBI leading the business engagement on both.
Speakers:
- Perrin Beatty, President & CEO, CCC Canada
- Markus Beyrer, Director-General, BusinessEurope, EU
- Thomas Donohue, CEO, USCC, US
- Dame Carolyn Fairbairn, Director-General, CBI
- Masakazu Kubota, Director-General, Keidanren, Japan
- Joachim Lang, Director General and Member of the Presidential Board, BDI Bundesverband der Deutschen Industrie e.V.
- Stefan Pan, Delegate for European Affairs, Confindustria, Italy
- Lord Mark Sedwill, Chair, Panel on Global Economic Security
- James Harding, Co-Founder and Editor, Tortoise Media (Chair)
Watch the session
Highlights from the session:
As Lord Mark Sedwill, the former Cabinet Secretary and Sherpa for the G7 economic security panel, said, the two events are heavily connected. The G7 and COP26 will both need to be held within the context of a post COVID-19 economic recovery. A recovery where the world looks to build back better, greener and in an inclusive way. Business should be front and centre of that recovery providing the solutions and growth for global communities within the rules and framework set by politicians.
Relaunching the global economic model
Let’s not pretend though that this grand statement will be easy. As Mark said, COVID-19 has highlighted an economic system which has not adapted to 21st century frictions and distortions. Like-minded countries need to push back on the rise of protectionism and state intervention whilst rebuilding public trust damaged since the financial crisis. Concerted action at a national, international and supranational level needs to build resilience across the system.
Business has a key part to play, highlighting market failures and innovating to find technology enabled solutions. Business needs to be seen as part of the solution not the problem – we need a new vision, a vision which has been seen throughout COVID-19 – be it in continuing supply chains or PPE production. This fundamental role of business as a force for good was amplified by all participants.
Integral role of WTO
To make this a reality we need a strong, functioning and forward-leaning World Trade Organisaton (WTO). A WTO with a strong leader and the ability to resolve issues, but also to support global economic growth. Our panellists felt that greater trust was needed in the organisation, highlighting successes and working through challenges, such as industrial subsidies, with the G7 a driving force in Geneva.
Digital and data are game changers
The G7 can also set an example for the world to follow. The pandemic showed the capacity for digital and data to enable change across our lives and how it can be vital to handling crises. Digital, data and trade are also closely entwined. Without free-flowing data you cannot trade in goods and, in particular, services.
Panellists saw an opportunity for the G7 to set best practice by creating greater alignment and interoperability between their economies, building on existing Free Trade Agreements. They could help build consensus at the WTO on e-commerce and help promote a global discussion on rules and standards. This also extended to investing in data infrastructure so all can benefit be that in 5G, cyber security or ensuring that rural areas are not left behind.
International cooperation is key
Delivering change will also require negotiation between domestic and international policies to ensure counterproductive national policies are not developed in silos. COP26 will need to encourage competitiveness and innovation between countries whilst respecting their domestic nuances. This balance will need to be struck whilst supporting enablers such as ESG standards, green finance and taxation. Global free trade can also be an important tool in achieving these aims where innovative, more efficient energy producers can be supported to enter markets with higher emissions.
2021: big year, big challenge
2021 will be a big year for the UK but leadership on the global stage is about building consensus across a community. With Italy chairing the G20 in 2021 and co-chairing COP26 with the UK, the CBI and Confindustria must work closely to build consensus and address challenges together.
Finally, panellists were asked for the one thing the G7/B7 could achieve next year, responses included:
- A loud voice to build inclusive sustainable management of global emergencies which utilises business solutions.
- Uniting to fight protectionism alongside common public and G20/B20 interests
- A strong WTO which supports a technology driven recovery, harmonising regulations and enabling an equitable global tax approach.
- Reaffirm public confidence in business as a force for good and the democratic market capitalist model which has been shaken since 2008 and during the pandemic.