Clinton Urges OECD to Push Growth, Guide Emerging Economies
Secretary of State Hillary Clinton urged the Organization for Economic Cooperation and Development to generate economic growth by embracing green energy, lowering barriers to trade and focusing more intently on the development of emerging economies.
Clinton is in Paris for events marking the 50th anniversary of the 34-member OECD. The organization will endorse “a new gold standard for how our companies should operate,” including human rights, the top U.S. diplomat said.
When the group meets tomorrow, Clinton said she will emphasize the need for member nations to share economic lessons with emerging countries. Developing nations must work to eliminate corruption, tax their elites and create regulations to attract and protect foreign investment, Clinton said.
“Countries must be the authors of their own development,” Clinton said, noting that the OECD is deepening its engagement with the so-called BRIC countries Brazil, China, India, as well as Indonesia and South Africa.
“We have the flexibility to reach out and raise standards at the same time,” Clinton said of ties to these developing nations. “We should use it.”
As Clinton discussed greater ties with these emerging economies, she said the OECD had to develop guidelines for dealing with state-owned and controlled businesses. Clinton acknowledged that different countries will make different decisions about how much of their economic activity to keep under government control.
Fair Competition
“Whether they are owned by shareholders or states, all companies should operate on a level playing field, consistent with the principles of competitive neutrality,” Clinton said.
Groups at the meeting will discuss green-growth strategy and tools, a framework for development and a “vision statement” on the evolving international economic order, emphasizing the need to expand ties with the BRIC countries.
The group also held a ceremony to welcome Russia as the 39th signatory to the OECD’s anti-bribery convention and a member of the working Group on Bribery in International Business Transactions.
“Bribery interferes with trade, investment, and development,” Clinton said. “It undermines good governance and encourages greater corruption. And of course, it is morally wrong -- and far too common.”
She encouraged Russia and other signatories to strengthen their enforcement of foreign bribery laws.
Clinton and other leaders also held a signing ceremony to endorse updated guidelines for multinational corporations. Forty-two governments are signatories and the guidelines are the only ones formally endorsed by governments, Clinton said.
Citing the way supply chains for valuable resources such as diamonds can cause abuse and conflict, Clinton said the OECD wanted to help companies recognize risks, act responsibly and create strategies for potential problems before they erupt.
To contact the reporter on this story: Nicole Gaouette in Paris at ngaouette@bloomberg.net.
To contact the editor responsible for this story: Mark Silva at msilva34@bloomberg.net
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