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Australia
in the Context of a Sustainable Asia:
Corporate Governance and the Challenges of the World Summit on Sustainable
Development
25 and 26 November 2002
Hilton on the Park, Melbourne
Mike Williamson
Chairman, Environment Business Australia
Corporate Governance and the
Challenge of the World Summit on Sustainable Development
26 November 2002
I regarded it as a privilege to
have attended the World Summit on Sustainable Development (WSSD)
in Johannesburg as a member of the Australian delegation.
It has been described as the largest international
meeting in history, and was, without doubt, one of the most logistically
complex events ever staged—with multiple formal sessions,
side events and consultations taking place throughout the two weeks
of the Summit.
The Australian delegation of 50 people was led by
Minister for Environment and Heritage, Dr David Kemp. It included
Commonwealth, state and local government officials and parliamentarians,
industry representatives, youth, and NGOs.
Business was represented on the delegation by four
industry associations, Environment Business Australia, the Australian
Chamber of Commerce and Industry, the Business Council of Australia
and the Minerals Council of Australia.
The official agenda of the 2002 World Summit was to
review the achievements that have been made since the historic 1992
United Nations Conference in Rio de Janeiro. There was a need to
debate what had been done to implement the 1992 Agenda 21 action
plan—and to investigate the new factors that have emerged
and the corrections that needed to be made.
Prior to the Summit ,about 450 issues within the Implementation
Plan remained to be resolved. These issues were negotiated between
countries’ officials and negotiating groups for several days
prior to the start of the Summit. The negotiations were lengthy,
frequently tedious and repetitious, and at times frustrating for
all who were involved. Long hours were spent mulling over various
verbs, adjectives and adverbs proposed throughout the text; all
issues were discussed including: health, globalisation, chemicals,
trade and finance, patterns of consumption and production, renewable
energy, water and sanitation, oceans and fisheries.
So what was the final outcome of the Plan of Implementation?
There were several significant achievements. Although not every
group or individual’s expectations and aspirations were achieved,
the summit went a long way towards delivering a set of outcomes
which recognise the need for immediate action. The Plan's highlights
are:
- Halve, by 2015, the number of people living without access to
clean water and decent sanitation.
- Take action to help the poor gain access to electricity, and substantially
increase the global share of renewable energy.
- Work to achieve a significant reduction in loss of biodiversity
by 2010.
- Urge rich countries to make 'concrete efforts' to give 0.7 per
cent of their national income in development aid.
- Restore, on an urgent basis, depleted fishery stocks by 2015 'at
the latest'.
- Ensure that, by 2020, chemicals are made and used that minimise
harm to the environment and human health.
- Encourage developing countries to establish 'transparency and
accountability' in governance; the Plan does not tie this to aid.
- Work to establish a world fund to eradicate extreme poverty.
- Negotiate, by 2005, an agreement within the World Trade Organisation
for improvements to market access for Third World food products.
- Encourage rich countries to phase out export subsidies and reduce
trade-distorting domestic support.
- Praises globalisation for encouraging trade and growth; but the
Plan also acknowledges serious challenges and special difficulties.
- Encourages public-private partnerships using private capital.
- Promotes the principle of 'common but differentiated responsibilities';
this says that the rich should share more of the financial burden
for achieving the Plan’s goals.
- Acknowledges that, in dealing with consumption and production,
fundamental changes are needed in the way societies consume—the
developed world should take the lead here.
- Says that change in climate is a common concern; those States
that have ratified the Kyoto Protocol strongly urge States that
have not done so yet to do so in a 'timely manner'.
I would like to add my personal observations. It is
a generalisation, I know, but I make no apology for it—coverage
in the Australian media lacked balance and was poorly reported (the
ABC and The Financial Review provided some balance). Conversations
with friends and colleagues in the European Union and other parts
of the world suggested a similar situation everywhere. It seems
that the easy option for the media is to report the bad news without
considering the onus upon it to inform and provide information aimed
at raising the level of the debate.
There were suggestions (if you read some media reports)
that business had 'hi-jacked' the Summit. Of course this was not
true. Indeed, as the head of the UNEP Klaus Topfer said, it was
not a question of whether business should have been involved at
the WSSD—the tragedy would have been if business were not
there. Global outcomes cannot be achieved without input from the
private sector. Business is not driven by electoral cycles; there
is no doubt that sustainable outcomes will only be achieved by engaging
the people who have the resources and ability to deliver them.
The Australian Environment Industry Action Agenda
(under the chairmanship of Paul Perkins), commissioned jointly by
the Minister for Environment and the Minister for Industry, has
as one of its major goals: to increase the Australian Environment
Industry from $8 billion per year (in 1999) to $40 billion, by 2008.
Our industry is strongly positioned to deliver solutions, particularly
in Asia—our industry is innovative, motivated, competitive
and local.
Aid money will only cover ten per cent of what is
needed to solve the issues related to water, sanitation, and access
to cheap and sustainable energy. The balance will come from the
private sector working in partnership with local and regional governments.
The Johannesburg Summit was never going to realise
everyone’s expectations; but it is also true that many people
had expectations which were never likely to be realised. From my
own personal perspective, I would certainly agree with the argument
that the one thing worse than having a World Summit would have been
not having one! In many people’s eyes, there were plenty of
deadlines but few targets—but unrealistic targets would have
almost certainly have lead to broken promises and unrealistic priorities.
Many countries, particularly those from the G77, repeatedly
made the point that removal of harmful trade barriers and unfair
subsidies is more important that increasing the aid money—a
message that sadly still seems to fall on some deaf ears in Europe.
On the subject of governance, I would say that, just
as there has been poor governance within some countries, there has
been poor behaviour within some businesses—but it does not
follow that we need some sort of global super watchdog as some groups
were suggesting. Each country has a duty to ensure that its statutory
authorities and office holders, as well as the private sector, obey
the rules of good governance. The US Foreign Corrupt Practices Act
(FCPA) certainly provides rules that US owned companies need to
obey when operating internationally. The recently commissioned Uhrig
Review of Australian Commonwealth Statutory Authorities provides
another example. To repeat the comment made by Leigh Clifford, CEO
of Rio Tinto—those countries who do not practice good governance
and observe the rule of law will simply miss out, because business
will not invest there.
I have no idea whether there will be a 'Rio + 20'
or '+ 25'; but, given our penchant for anniversaries, there most
likely will be. I do not expect to be there, but I wonder whether
we will be looking back at Johannesburg and saying: this is where
it all started. History may well judge that the Johannesburg Plan
led to the first real global effort to do something at last…or
it may not—but I remain optimistic.
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