Official B20 Summit Argentina 2018

The Official B20 Argentina Global Briefing Report INSIDE B20 › B20 Leadership Messages › B20 Executive Summaries › B20 Photo Galleries › Words from the G20 Argentina Sherpa

G20G7.COM The Exclusively Authorised B20 Magazine for VIP’s, Delegates, Diplomats and World Leaders

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akzonobel.com

B20 Executive Talk Series LEAD FEATURE

Publishers Note

Dear Reader I am thrilled to welcome you to the 2018 B20 Summit Magazine. For the past several months my production team has worked closely with the B20 Summit team in Argentina to bring you the only authorised B20 Summit publication.

It has been exactly 21 years since CAT Company produced the very first G7 Summit publication. In 1997, our work earned us the trust of the host government and since then we have been honored to be the go-to publisher and consultant for host governments of the G7 and the G20 Summits for 21 years in a row. For over two decades our company’s own history and legacy are tied to these most important of global leadership gatherings.

As we reflect on the past two decades and more, I wish to express my heartfelt thanks to the Argentinian B20 Host Committee as well as the B20 Sherpa for their collaboration.

Canadian G7 Host Committee as well as the Canadian government for their collaboration.

This is the first that our team is working with Argentina to produce a world-class publication for the B20 Summit and we are very proud and grateful for our association with the organizers. And we are most grateful for the acknowledgment the CAT Company and our online platform G20G7.com has received.

Chris Atkins Publisher & Founder Cat Company, Inc.

In the past two decades our company has grown and expanded exponentially. Our portfolio of publications, which also includes the leading editions for the G7 Leaders’ Summit, G20 Leaders’ Summit and B20 Summit respectively, have been recognized globally.

Our company’s mission has been and continues to be to educate the global community on the most vital topics affecting our society and the agenda and leaders at the G7, G20 Leaders & G20 business summits. Through our award-winning Executive Talk Series global briefing report, we have created an unprecedented opportunity for private sector leaders to have a voice at these summits even when they don’t have a physical seat at the table.

We look forward to the G20 Business and G20 Leaders Summits in Argentina this year; and we look forward to working with you all again in the years to come.

Here’s to the next 21 years together... and counting!

G720.COM Content 70 / John Denton

Secretary General, ICC

SPECIAL EDITORIAL FEATURE: GCEL 74 / Digitizing SMEs Is a Must The G20 Citizens: Defining the Digital Economy 78 / Smart Digital Tools Are a Must to Maximize on the Power of Big Data

82 AkzoNobel Smart Facades for a Sustainable Future

86 Ungasan Clifftop Resort Exclusively Up High

90 Generali Global Assistance Data Globalization Gives New Meaning to the Ever-Evolving Identity Theft Threat

96 Liechtenstein Bankers Association: A New Era: More Digital and More Sustainable

98 Welcome to Charlevoix!

Like No Place on Earth

Advertisers Index 02 AkzoNobel

04 ❙ g20g7.com

69 Taiwan Civil Government

71 DIT-gov.uk

73 Generali Global Assistance

94 Schloss Elmau

101 Tourisme Charlevoix

102 DSX Inc

80 Eden Roc

b20argentina.info

B20 Content

B20 Welcome Messages 06 / Ambassador Pedro Villagra Delgado

08 / Daniel Funes

B20 Chair

10 / Carolina Castro

B20 Executive Sherpa

11 / Fernando Landa

B20 Policy Sherpa

Argentine G20 Sherpa

G20G7.COM

G6 Welcome Messages

The Official B20 Argentina Global Briefing Report

16 / Javier Bolzico

President, Argentine Bankers Association (ADEBA)

17 / Eng. Gustavo Weiss President, Argentine Chamber of Construction

Adelmo J.J. Gabbi President, Buenos Aires

Stock Exchange

18 / Daniel Pelegrina President, Rural Argentina

Dr Jorge Luis Di Fiori President, Argentine Chamber of Commerce & Services (CACS)

› B20 Executive Summaries › B20 Photo Galleries › Words from the G20 Argentina Sherpa

(SRA)

INSIDE B20 › B20 Leadership Messages

Miguel Angel Acevedo

President, Industrial Chamber of Argentina (UIA)

G20G7.COM

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The Exclusively Authorised B20 Magazine for VIP’s, Delegates, Diplomats and World Leaders

B20 General 07 / 09 /

B20 Photo Gallery B20 Structure

12 / B20 Secretariat 13 / B20 Photo Gallery

14 / B20 Timeline 19 / B20 Focal Points

B20 Taskforces Messages & Executive Summaries EMPLOYMENT & EDUCATION

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Chair’s Message:

Martín Migoya CEO & Co-Founder, Globant

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› Executive Summary › Co-Chairs

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› Executive Summary › Co-Chairs

36

› Executive Summary › Co-Chairs

DIGITAL ECONOMY & INDUSTRY 4.0

26

Chair’s Message:

Marcos Galperin CEO, Mercado Libre

FINANCING GROWTH & INFRASTRUCTURE

34

Chair’s Message:

Eduardo Elsztain Chairman, Grupo IRSA & Banco Hipotecario

Chair’s Message:

Paolo Rocca CEO, Techint Group

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› Executive Summary › Co-Chairs

Chair’s Message:

Luis Alejandro Pagani President, Arcor Group

Editor: Ana C. Rold editors@diplomaticourier.org

B20 Contributors Carolina Castro B20 Executive Sherpa ccastro@b20argentina.info Fernando Landa B20 Policy Sherpa flanda@b20argentina.info

Denise Cancian URBAN Grupo de Comunicación dcancian@urbancom.co Nanu Kübler nanukubler.com nanu.kubler@gmail.com

SUSTAINABLE FOOD SYSTEM

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Creative Director: Christian Gilliham christian@cgcreate.co.uk (+44) 7951 722265

Juan Mateo Lees B20 Communications Officer jlees@b20argentina.info

TRADE & INVESTMENT

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Publisher, CEO & Founder: Chris Atkins The CAT Company, Inc. catkins@thecatcompanyinc.com 001-801-7835120 (ext 200)

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› Executive Summary › Co-Chairs

54

› Executive Summary › Co-Chairs

ENERGY, RESOURCE EFFICIENCY & SUSTAINABILITY

52

Chair’s Message:

Miguel Ángel Gutiérrez President, YPF S.A.

SMALL & MEDIUM ENTERPRISES DEVELOPMENT

58

Chair’s Message:

Inés Berton CEO & Founder, Tealosophy

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› Executive Summary › Co-Chairs

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› Executive Summary › Co-Chairs

INTEGRITY & COMPLIANCE

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Chair’s Message:

George Mandelbaum President, CIPPEC

©

Copyright 2018 the CAT Company.

All rights reserved. The B20 Publication is a product of CAT Company. No part of this publication can be reproduced without written consent of the publisher Chris Atkins and the CAT Company. All trademarks that appear in this publication are the property of the respective owners. Any and all companies featured in this publication are contacted

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Buenos Aires. Argentina 2018 ❙ 05

B20 Executive Talk Series G20 Ambassador ‘s Welcome

Ambassador Pedro Villagra Delgado Argentine G20 Sherpa

Upon assuming the presidency of G20, President Mauricio Macri stated that Argentina would guide its work under the motto: “Building Consensus for Fair and Sustainable Development”. To achieve this goal we identified three pillars: “The future of work”, “Infrastructure for Development” and “A Sustainable Food Future”, we also laid special emphasis on the fight against corruption and in mainstreaming the gender perspective throughout the agenda.

In exercising the responsibility that the Presidency of G20 purports, it is worth recalling that this forum was created in 1999 with the aim of discussing economic and financial policies among the most relevant economies in the international system and cooperating to promote stable and sustainable economies to the benefit of all.

In 2008, in the context of the global financial crisis, it was decided to take the forum to leaders´ level in order to build policies that might promote international financial and macroeconomic stability and governability.

Since then, G20 has included as part of its agenda a diversity of social and economic topics related to its central goal, thus becoming a key international forum for

the promotion of international economic and financial cooperation. G20 is an informal mechanism for dialogue, not ruled by bureaucratic structures, formal charters or pre-established texts in which peers make consensus-based decisions. There is no doubt that the challenges the international community is currently facing find in G20 an adequate forum to exchange ideas and reach necessary agreements.

The significance of G20, without any doubt, depends not only on the work of the Presidency, but most importantly on the contribution, the commitment and the actions of all its members through the relevant international and national instances. To this end, the work developed throughout the year at the different levels of government is transcendental. However, this would not be sufficient without the contribution of the different perspectives of our respective societies through what is known as Affinity Groups contributing their views on business, labor, women, science, think-tanks, youth and the civil society.

The first of these groups that was created, and also one of the best structured, is B20, with a rich agenda of sectoral meetings

that are strictly related with the G20 agenda, and as such is in an excellent position to contribute to the work of different sectors.

The perspective of business sectors is crucial for the G20 agenda.

For this reason, the work developed by B20 during this year constitutes an essential contribution to the work promoted by the Argentine Presidency of G20, based on multilateralism, dialogue and consensus, proposing the perspective of our region and promoting the need to pay special attention to the situation of developing countries at large, where the business sector is a central player in the process of putting people in the center of the agenda.

I wish to express my acknowledgement to Dr. Daniel Funes de Rioja and his team for all their valuable work and for having achieved during this year the active participation of the largest number of companies that have participated of the B20 work since its creation. The conclusions, recommendations and the commitments made by you all will be part of the achievements of the Argentine Presidency of G20 during 2018.

Ambassador Pedro Villagra Delgado

THERE IS NO DOUBT THAT THE CHALLENGES THE INTERNATIONAL COMMUNITY IS CURRENTLY FACING FIND IN G20 AN ADEQUATE FORUM TO EXCHANGE IDEAS AND REACH NECESSARY AGREEMENTS. 06 ❙ g20g7.com

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B20 Photo Gallery 1

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B20 Germany-Argentina Handover Business Leaders Forum in Córdoba Sustainable Food System Meeting in Buenos Aires High Level Caucus Meeting in Washington, D.C. G20 Sherpa Meeting in Ushuaia G20 Engagement Groups Meeting in Ushuaia G20/B20 Digital Summit in Buenos Aires Global Employer´s Forum in Mendoza

Buenos Aires. Argentina 2018 ❙ 07

B20 Executive Talk Series LEAD FEATURE

B20 Chair’s Welcome

Daniel Funes de Rioja B20 Chair

When I was appointed B20 Chair, my first responsibility was to set a common agenda with the G20 Sherpa in order to assure G20’s main concerns would be reflected in our final document. Following up on the German process (2017), I also worked together with the two other members of the B20 Troika to guarantee that the recommendations would be in line with a long term process.

President Macri set three priorities for the G20 Argentina. The first was employment in the new digital era; the second, the financial support for infrastructure development; and the third one, sustainable food system.

We covered all these issues in the context of our task forces.

Together with my Co-Chair Group formed by the Association of Private Banks of Argentine Capital (ADEBA), the Buenos Aires Stock Exchange (BCBA), the Argentine Chamber of Commerce and Services (CAC), the Argentine Chamber of Construction (CAMARCO), the Rural Society (SRA), and the Industrial Union of Argentina (UIA) and the two Sherpas, executive and policy, we have worked as a cohesive team to lead the Argentine round.

We defined eight task forces, led by

first-line Argentinean businessmen and women: Trade and Investment (Paolo Rocca), Financing Growth and Infrastructure (Eduardo Elsztain), Employment and Education (Martin Migoya), Energy, Resource Efficiency and Sustainability (Miguel Gutierrez), Digital Economy and Industry 4.0 (Marcos Galperin), Sustainable Food System (Luis Pagani), Development of Small and Medium Enterprises (Inés Berton), and Integrity and Compliance (Jorge Mandelbaum).

Our agenda covered all the main topics outlined by the G20 and we discussed concrete and relevant recommendations that we expect will be reflected in the Head of States Declaration. All along the way, we knew we were not just hatching “imaginary” practices; on the contrary, we wanted to leave crystal-clear policy values and legacies, not only for large businesses, but also for SMEs, and not only internationally, but also building a local commitment.

Our eight Task Forces reached consensus after an intense process involving regular members meetings, a High Level Caucus (for advocacy) and a number of regional meetings (Forum of national leaders) conceived to link the local concerns with the global strategies, as we are convinced

internationalization cannot only be a challenge of business elites, it has to cover and involve the whole business spectrum.

As B20 Chair, I am really proud of the strong consensus we have reached among G20 countries during this year. We have had the active participation of more than 1,200 registered leaders and 500 deputies —27% of which account for women and 34% for small and medium-sized enterprises. Over 1,000 are CEOs and CFOs of companies which employ over 35 million people globally.

For the business community, the B20 means combining private initiative, international markets and fair rules of the game and creating with public-private cooperation policies that are not merely nominal and deductive, but real and effective. Thus, the aim of our final document is to suggest concrete actions that may contribute to G20 countries’ economic and social development, taking into consideration the main topics and issues in the current global context.

I trust this call to action will be heard by our countries leaders.

Daniel Funes de Rioja

OUR AGENDA COVERED ALL THE MAIN TOPICS OUTLINED

BY THE G20 AND WE DISCUSSED CONCRETE AND RELEVANT RECOMMENDATIONS THAT WE EXPECT WILL BE REFLECTED IN THE HEAD OF STATES DECLARATION. 08 ❙ g20g7.com

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B20 Structure

Daniel Funes de Rioja B20 Chair

B20 Sherpas

Co-Chair Group of 6

Carolina Castro Executive Sherpa

Fernando Landa Policy Sherpa

B20 Secretariate

ADEBA

BCBA

Javier Bolzico

Adelmo Gabbi

CACS

CAMARCO

Jorge Di Fiori

Gustavo Weiss

Luis Marchese Executive Advisor

High Level Int’l Business Advocacy Caucus

SRA

UIA

Daniel Pelegrina

Miguel Acevedo

Argentine Business Leaders Forum

Taskforces Buenos Aires. Argentina 2018 ❙ 09

B20 Executive Talk Series LEAD FEATURE

B20 Sherpa’s Welcome

Carolina Castro

B20 Executive Sherpa

The B20 Argentina process set as a priority to achieve meaningful discussions that could lead to consensus on a diverse number of issues, all of them of great importance for global prosperity. With a record number of 1700 participants (1200 members and 500 deputies) from 38 countries, a carefully-crafted program of in-person meetings and teleconferences was established in order to assure everyone’s voice could be heard and acknowledged.

The timeline of meetings was challenging: almost 2 meetings per week in a sevenmonth period, of which 40% have been in-person. Part of the discussion process that went on during the meetings was preceded by “inspirational sessions” in the form of

conferences, such as the ones hosted in Bilbao, Paris, Washington and Buenos Aires.

Six of the eight task forces have held one meeting in Argentina and one abroad. Special mention should be made of the five Business Leaders Forums that we organized in Argentina with more than 3000 participants to broaden the reach of the B20 among our national business leaders.

The strong participation of the global business community of the G20 is a clear endorsement to multilateralism. If businesses worldwide have joined B20, each year to a greater extent, it is in the belief that sustainable and credible consensus at G20 level must be reached in order to assure a

path of growth and prosperity that leaves no one behind. The Business 20 contributes to this objective by recommending concrete policy actions each year to the G20 leaders.

The B20 Argentina Summit is the concluding event, in which we present this year’s work. We have put together an ambitious agenda with more than 40 international speakers and 1,200 business leaders in attendance.

I say farewell as Sherpa, thanking for the work and commitment of our 1700 members and of our partners and sponsors.

Congratulations on the joint efforts!

Carolina Castro

IF BUSINESSES WORLDWIDE HAVE JOINED B20, EACH YEAR TO A GREATER EXTENT, IT IS IN THE BELIEF THAT SUSTAINABLE AND CREDIBLE CONSENSUS AT G20 LEVEL MUST BE REACHED IN ORDER TO ASSURE A PATH OF GROWTH AND PROSPERITY THAT LEAVES NO ONE BEHIND. 10 ❙ g20g7.com

b20argentina.info

Fernando Landa B20 Policy Sherpa

It feels like a long time ago since our initial Troika meetings in Berlin and our first joint conferences with our network and knowledge partners.

We were clear about our mission: to carry the torch, building up from the important body of work of B20 in Germany 2017, and to continue providing a transparent forum for a growing number of business leaders and federations of G20 countries, where all voices would be heard with total transparency in an open discussion, driving perspectives towards consensus.

Ten months into the G20 Argentine Presidency the 1200 companies and business federations that have composed the membership of the B20 this year, the largest business sector representation of G20 countries in its current format, have engaged into more than 56 task force meetings and an even more numerous cross-thematic and coordination roundtables.

Relevance, urgency, and actionability were the main criteria to decide upon topics to be undertaken to foster achievement of the 17 UN Sustainable Development Goals.

Our focal points were: › Building and strengthening a culture of integrity and respect for the rule of law.

A strong national anticorruption strategy is fundamental for doing business, for development and growth.

› Education as a true enabler for equal opportunities. Addressing disparities in basic foundational skills that stand in the way of employability today, while providing policy actions that would help unleash people’s potential within the framework of a new technological revolution. › Bridging the gender gap as well as vulnerable groups inclusion in all recommendations. › Achieving a sustainable food system to put an end to malnutrition, fostering technology adoption, eliminating food loss and waste, and removing barriers to trade that are not supported by science. › Enabling transitions towards cleaner energies while ensuring access to affordable energy.

Addressing climate action and policies to promote a sustainable use of resources, looking toward more circular economies. › Removing roadblocks for innovative financial instruments to capture private capital and close the persistent infrastructure gap that is currently acting as an anchor. › Bridging the technological divide, enabling new digital technologies to be the engines of development. › Taking on board global concerns and challenges to reinforce and reshape the multilateral trade and investment system ensuring a level playing field › Facilitating ecosystems that promote entrepreneurship and allow micro, small and medium enterprises to grow and participate in global value chains while strongly decreasing informality.

B20 Argentina has developed 70 recommendations, drawing lessons from available best practices and with strong, well founded rationales as presented in each of our Task Force Policy Documents. We have been active participants providing our viewpoints in G20 Working group meetings and more than 30 side events. We have shared our conclusions with G20 Sherpa’s in Ushuaia and Mendoza.

But all recommendations would be insubstantial without implementation.

Consequently, we provided a detailed concrete list of actions for each one of them, as well as key performance

indicators and private sector commitments where appropriate .

It is important to highlight that 75% of the B20 proposed action plans are immediately implementable at national level.

These action plans should drive a compelling agenda for G20 governments, and most importantly, the outcome of enacting this agenda could in turn become a set of best practices to be shared with other non-G20 countries.

The remaining 25 % of B20 action plans, on the other hand, are meant to help making progress in defining fundamental rules and cooperation frameworks within multilateral forums.

It is from now on our duty to work enthusiastically, engaging social partners, academia, civil society and governments to carry this agenda forward towards concrete implementation.

The business sector in G20 countries have a unique opportunity and responsibility by engaging with G20 leaders. B20 is not a business summit, it is not about the development of a collection of well documented recommendations, it is about making progress, it is about execution, it is about achieving the 2030 Agenda for Sustainable Development. It is about fostering economic activity and therefore creating jobs, it is about tangibly improving our societies, addressing our most pressing challenges, it is about highlighting opportunities, it is about adding another step in the ladder.

B20 is not just another business conference, it is a long term voluntary endeavour by the business leaders of our countries, without the constraints of a fixed structure. We hope our B20 summit will clearly reinforce this mission and motivate further progress.

We are deeply honoured to have been able to host such dynamic and committed body of companies and business federations throughout 2018 and will continue to contribute within the Troika towards a successful B20 Japan, promoting fair, inclusive growth.

Fernando Landa

Buenos Aires. Argentina 2018 ❙ 11

B20 Executive Talk Series B20 Secretariate

B20 Secretariat

Lorenzo Luis Marchese Executive Advisor

Agustina Briner Project Manager

Silvano De Marte Project Coordinator

“The B20 represents a unique opportunity to discuss innovative themes, in the framework of an international process of engagement with the business community.”

“The B20 process can contribute to improving the coordination of governments and companies to meet the challenges of the current technological revolution by ensuring sustainability and global harmony.”

“The B20 presents an opportunity to achieve public-private consensus and assuring a cooperative and equal world for generations to come.”

Pilar Toyos Policy Officer

Paula Ini Policy Officer

Catalina Achilli Project Officer

“Global welfare can be achieved if we tone a single voice that strives for a future-oriented development. This is the B20 goal, enabling business to be a crucial actor in the path to prosperity.”

“As a business forum composed of different voices, the B20 represents an opportunity to advance towards a more equitable and responsible economic governance.”

“B20 represents the opportunity to keep on working in processes to materialise an inclusive development that can help to cope with inequality around the world. It has the challenge to broaden the basis to get into a fairer world throughout education and employment.”

Facundo Caceres Admin Officer

John Lees Media Officer

Mariana Maloberti Office Assistant

“The B20 provides an important forum to tackle global political and economic challenges on a global stage.”

“The B20 provides an important forum for business and industry to contribute vital expertise and dynamism to the process of global governance.”

“If we look towards the future, achieving a balance, consensus and cooperation among all the members of the business community is paramount. B20 works towards that aim and takes on that challenge day after day.”

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B20 Photo Gallery 1

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6 3 8 1. G20/B20 Digital Summit in Buenos Aires 2. High Level Caucus Meeting in Paris 3. B20 Chair Daniel Funes de Rioja and SFS Chair and Arcor President Luis Pagani at the G20 Agriculture Ministerial Meeting in Buenos Aires 4. G6 (B20 Co-Chair Group) at the Business Leaders Forum in Salta 5. Lehendakari Iñigo Urkullu and B20 Executive Sherpa Carolina Castro at the Guggenheim Museum in Bilbao 6. Business Leaders Forum in San Juan 7. B20 Policy Sherpa Fernando Landa at the Global Employer´s Forum in Mendoza 8. I ntegrity & Compliance Task Force Meeting in Buenos Aires

Buenos Aires. Argentina 2018 ❙ 13

B20 Timeline 14 â?™ g20g7.com

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B20 Timeline Buenos Aires. Argentina 2018 â?™ 15

B20 Executive Talk Series LEAD FEATURE

G6 Welcome

Javier Bolzico

President, Argentine Bankers Association (ADEBA)

Adelmo J.J. Gabbi President, Buenos Aires Stock Exchange

An ambitious agenda

Welcome to the future Argentine market

B20 has seen ever more ambitious agendas, from Seoul 2010 to Berlin 2017. Buenos Aires 2018 is no exception. Moreover, the challenges faced by multi-lateral efforts of any kind by the volatile international agenda at sight, may shape the near and even the long term future of our society. We, B20 participants, believe in the relevance and strength of team work within the international business community, as a means to reach the clear objective of a world-wide society developing in peace and fairness.

In light of current events, where cooperation is sometimes challenged, we trust that open and competitive markets, in a setting of equal opportunities, fairness and a leveled playing field are the preconditions for the achievement of B20 and G20 objectives.

The work done by the eight task forces of B20 in the aim of achieving a global vision has been up to the challenge so far.

Argentina has the honor of carrying the G20 torch during 2018. We welcome all the participants that honor and strengthen B20 with their presence.

The G20 Summit takes place in Buenos Aires at a historic moment of Argentina’s stock and financial markets. The parliamentary will to modify the Capital Markets Law with essential reforms to the original text, and the upgrading of Argentina as Emerging Market by Morgan Stanley, will enable international institutional investors to choose Argentina once again, and thus increase its stock market’s liquidity and depth.

This clear improvement of Argentina’s position in international markets is a vital step towards recovery, growth and the future development of the domestic economy. As part of the B20 affinity group, the Buenos Aires Stock Exchange increases its effort to transform domestic savings into long-term investment to finance Argentina’s infrastructure. Certainly, we have to start to depend more on ourselves and less on global cycles.

Welcome everyone to this meeting, and welcome to the future capital market of Argentina!

THE WORK DONE BY THE SIX TASKFORCES OF B20 IN THE AIM OF ACHIEVING A GLOBAL VISION HAS BEEN UP TO THE CHALLENGE SO FAR.

CERTAINLY, WE HAVE TO START TO DEPEND MORE ON OURSELVES AND LESS ON GLOBAL CYCLES.

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b20argentina.info

Eng. Gustavo Weiss President, Argentine Chamber of Construction

Dr. Jorge Luis Di Fiori

President, Argentine Chamber of Commerce & Services (CACS)

Buenos Aires is on the verge of being the headquarters of an international meeting of businessmen that places the country on the right path to consolidate its links with the world. It will be the first time that Argentina and South America in general receive Business 20 (B20), which for all of us is reason for great satisfaction.

We are men and women of business, of diverse places and areas, but we are all convinced that the country must, in a definitive way, consolidate its institutions based on clear precepts and a solid economy.

With the conviction that this type of event is indispensable to give sustainable answers to the demands of citizens, we receive with the most cordial welcome all the participants of the B20 Summit that will meet in the capital of the argentines.

In the midst of the process of intelligent international reintegration of Argentina that President Macri has faced, the B20 Summit that will take place in Buenos Aires at the beginning of October is very timely. In the Argentine Chamber of Commerce and Services, we support the strengthening of international economic relations in our country and, as a result, we actively participate in different affinity groups of the G20, including B20 and W20. We believe in free and mutually beneficial exchanges as a motor for the development of nations.

World history shows that an essential part of the progress of a nation is to know how to properly link with the outside, that is why we celebrate the B20 Summit that will take place in Buenos Aires and that can contribute to the development of the G20 Leaders Summit, scope of dialogue and cooperation that will take place towards the end of this year.

IT WILL BE THE FIRST TIME THAT ARGENTINA AND SOUTH AMERICA IN GENERAL RECEIVE BUSINESS 20.

WE BELIEVE IN FREE AND MUTUALLY BENEFICIAL EXCHANGES AS A MOTOR FOR THE DEVELOPMENT OF NATIONS. Buenos Aires. Argentina 2018 â?™ 17

B20 Executive Talk Series LEAD FEATURE

G6 Welcome

Daniel Pelegrina

President, Rural Argentina (SRA)

Miguel Angel Acevedo President, Industrial Chamber of Argentina (UIA)

›

Argentina, as a Chair of G20 will receive at the end of this year, the Presidents and Prime Ministers of the most important countries members of the G20 Group.

As a farm leader, and member of the B20, I am very proud to participate in this so important event, and have the opportunity to show our visitors all the potential of Argentina in food and renewable energy production.

Farmers have the commitment towards the Sustainable Development Goals (SDGs), the 17 goals for the world set by the United Nations in 2015. Stakeholders from governments, non-governmental organizations, and corporations engaged in conversation over the last year, on what is working and what might not be working towards meeting the SDGs. And so, as agriculture plays a significant role in most of the goals, is that the G20 Presidency defined the Sustainable Food Systems as one of the main three priorities in this process.

In this Framework, B20 identified five most important topics in this discussion in order to recommend the Leaders how to move forward: › Eradicating malnutrition, undernourishment and obesity; › Ensuring environmental conservation, mitigation and adaptation to climate change; › Fostering technology development and adoption; › Progressively eliminating barriers to global food trade; and › Minimizing food loss and waste.

As president of UIA I proudly welcome the Business 20 Summit in Argentina. This community is of vital importance not only for international economic welfare, for building the groundwork of worldwide rules based economic relationship between nations, but also for our national business sector environment which is expectant of creating a better and smarter integration with world markets.

Our international agenda is vast and profound. We were one of the founding members of the B20 since the first meeting in Seoul 2010 and we represent Argentina at the IOE and through it, in the ILO. Our international representation includes BIAC, the UN Global Compact and the Global Business Coalition, among other.

We believe that the G20 and B20 Summit in Argentina is an excellent opportunity to determine the foundations of economic development in the years to come and to make sure that the voice of the developing countries is heard.

UIA supports policies that promote the increase in value added, technology incorporation, and increase in productivity, towards the first and ultimate priority of job creation. These are also B20 objectives. In a world that is changing faster than before, with the fourth industrial revolution taking place we must actively contribute to assure that this paradigm shift leaves no one behind.

Agriculture has the opportunity to make tremendous strides towards meeting the UN SDGs. And through the B20, we have the commitment to tackle the challenges we are facing to contribute to the global development of sustainable food systems.

We welcome all and particularly all the business representatives that will participate in our Summit next October in Buenos Aires.

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B20 Focal Points

Contributing to the UN Sustainable Development Goals (SDGs)

BUILDING A CULTURE OF INTEGRITY ENSURING A SUSTAINABLE FOOD FUTURE CREATING JOBS AND PROVIDING QUALITY EDUCATION DEVELOPING INFRASTRUCTURE SECURING A FAIR COMPETITIVE BUSINESS ENVIRONMENT REINFORCING AND RESHAPING THE GLOBAL TRADE AND INVESTMENT SYSTEM & ENSURING A LEVEL-PLAYING FIELD TRANSITIONING TOWARDS CLEANER ENERGIES ADDRESSING CLIMATE CHANGE PROMOTING A SUSTAINABLE USE OF RESOURCES MAXIMIZING THE POTENTIAL OF DIGITAL TECHNOLOGIES FOR INCLUSIVENESS AND ECONOMIC DEVELOPMENT FACILITATING AN ECOSYSTEM FOR MSMES CREATION AND GROWTH ENSURING EQUAL OPPORTUNITIES FOR EVERYONE WITH A PARTICULAR FOCUS ON GENDER EQUALITY AND THE INCLUSION OF VUNERABLE SECTORS OF SOCIETY

Buenos Aires. Argentina 2018 ❙ 19

B20 Executive Talk Series LEAD FEATURE

EMPLOYMENT & EDUCATION

Chair’s Message

Martín Migoya

CEO & Co-Founder, Globant

An ambitious agenda We are living amazing times worldwide.

Never in history did we have several massive and disruptive revolutions happening at the same time. Globalization and breakthroughs in technology are creating a new source of wealth and development accessible to any region, culture or people that have the right skills.

On top of that, the digital and the cognitive revolutions are affecting how people interact and are opening more opportunities to foster the growth and development of countries.

In this context, governments have a unique opportunity to promote people’s development, so it is mandatory to re-think the global approach to Education and Employment that will allow societies to stay ahead of the ever-changing present.

Governments and citizens should make no mistake: the effects of capitalizing on this opportunity could be as profound and as farreaching as the restructuring of the region’s societies and the democratization of youth participation and leadership in commerce, technology and industries.

By paying specific attention to promote the right Education and Employment approach Governments can prepare their countries for the future. The Employment & Education Task Force focuses on these

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issues by providing a set of guidelines that could propel countries’ growth.

We have to form citizens that are prepared to constantly adapt. It’s key to develop a “learning to learn” model that will help our population stay open to the future. On top of that, new fast-growing sectors, such as the Knowledge-based Services (KBS), are now seeking a huge amount of talent capable of making it grow and scale. Data reveals that the Services Sector has more employment generation potential than many traditional sectors and KBS specifically can profoundly impact a country’s economy promoting technology, design and innovation development, thus propelling industries and agriculture as well. Governments need to pay special attention to the development of new education models to prepare people for these new forms of opportunities. In this sense, it’s important to focus on training our young people in core competencies such as STEM (Science, Technology, Engineering, and Mathematics) disciplines.

A new Education & Employment approach will also prepare our societies for an inclusive Future of Work. It is important for governments to create the necessary conditions that will help bring more job opportunities for everyone, avoiding informality through appropriate legislation, and fostering job positions regardless gender, race, religion or disabilities.

This includes implementing awareness-raising initiatives to challenge gender stereotypes and social norms, which act as a barrier for female employment. Also, to engage with employers and workers to develop targeted initiatives at national and local level to remove the cultural, economic and social barriers.

But it’s not just a matter of working with the business statu-quo. It’s also about fostering the creation of more job opportunities by opening doors to new players. This is where entrepreneurship plays a key part. Entrepreneurs take risks, create companies that have the potential to produce high impact in employment and in countries. They invest and distribute opportunities, and by doing so they help to transform countries and train talent in latest trends. Governments should work together with these new players, facilitating the initial startup conditions to help them set up and grow their businesses.

We are experiencing unique moments in history, and it is up to us to make this present become a fantastic future for all. We encourage G20 leaders to share a unified vision of these challenges and to work towards it, generating a virtuous circle of education, talent and development, bringing more economic development to our entire world.

Martín Migoya

b20argentina.info

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B20 Executive Talk Series LEAD FEATURE

Executive Summary

Employment & Education

Topics: › Future Education, skills and lifelong learning recommendations › Labour formalization and decent work › Strengthening social protection and for the future of work › Social dialogue › Incorporation of people with disabilities into the workforce › Gender › Roll back on informality

T

he context of technological revolution stimulates hopes and fears about the future which sometimes risk overshadowing some of the most urgent education-related challenges of today. This is especially true in developing and emerging economies where gaps in basic skills, such as numeracy and literacy remain persistent issues.

Worldwide, hundreds of millions of children who end primary school do not master basic competencies. In fact, more than 60 percent of primary school children in developing countries still fail to achieve minimum proficiency thresholds in core competencies.

In low-income countries, 14 percent of students reach this minimum level near the end of primary school, and in lower-middleincome countries the figure is 37 percent1.

Learning shortfalls of basic skills during

Chair:

Co-Chair:

Martín Migoya

Gerhard Braun

Ceo & Co-Founder, Globant

Confederation of German Employers Associations “My expectation of the B20 Argentina is a continuing dialogue regarding the promotion of open, dynamic and inclusive labor markets and the creation of a global level playing field. A focus has to be given on education since it is the main driver for a broad participation in rapidly changing labor markets.”

Co-Chair:

Dario Werthein Grupo Werthein

“Education systems must be relevant and respond to rapidly changing labour markets, technological advances, migration, environmental degradation, demographic challenges, increasing global unemployment and a widening inequality. Through our participation in the Task Force on Education and Employment at B20, we have the incredible opportunity to recommend the policies that we think are better to address these challenges.”

Deputy Chair:

Co-Chair:

Co-Chair:

Martín Umaran

Linda Rottenberg

Erol Kiresepi

Globant

Endeavor

International Organisation of Employers

“Argentina’s leadership in the B20 is presented as a unique opportunity for the country and for the entire region. Latin America can provide a unique vision in the discussion about the future of work, which complements what was defined in previous cycles.”

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“Innovative technologies and platforms are creating a range of new employment opportunities but we must make sure that the workforce of tomorrow is equipped with the skills necessary for success. The B20 must look to entrepreneurs, who play an increasingly important role in these areas.”

“Ten years after the establishment of the G20, it is necessary to bring fresh impetus into the process, focusing on impact on labour markets and education systems. The G20 must finally become an engine for reform, triggering the necessary change at all levels for jobs, growth and prosperity.”

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the school years show up as an impediment for employability in the workforce, and although the skills needed in labour markets are becoming more multidimensional, no student can afford to bypass foundational skills in reading, writing, and mathematics. Also, digital skills are now being considered a foundational skill as their absence can acutely disadvantage a child’s life chances.

1. Educational disparities among and within G20 countries pose a major challenge on employability and inclusiveness that needs to be properly addressed, furthering efforts to close the basic education gaps in order to promote a level playing field for all.

2. Employability has to be a key component of education systems in order to avoid skills mismatches on the labor market.

In this sense, close cooperation between businesses and relevant government agencies and institutions is key to ensure that the curricula of training systems are in line with labor market needs. Optimizing the use of and access to labor market information, and harmonizing approaches to labor market data collection and treatment across the G20 is fundamental to track employment and education trends and to set out consistent educational policy plans.

LEARNING SHORTFALLS OF BASIC SKILLS DURING THE SCHOOL YEARS SHOW UP AS AN IMPEDIMENT FOR EMPLOYABILITY IN THE WORKFORCE, AND ALTHOUGH THE SKILLS NEEDED IN LABOUR MARKETS ARE BECOMING MORE MULTIDIMENSIONAL, NO STUDENT CAN AFFORD TO BYPASS FOUNDATIONAL SKILLS IN READING, WRITING, AND MATHEMATICS. 3. Current labor market trends show that the pace of change is accelerating the demand for knowledge-based, interdisciplinary, project solving and team-based work, which in turn boosts the requirement for continued education. In addition, current skills shortfalls such as content skills, (namely reading comprehension, writing, speaking and active listening) and process skills (i.e. critical thinking and active learning) highlight the necessity of strengthening smart investments in innovative teaching methodologies in order to enhance students’ core competencies, particularly in STEM subjects with special focus in gender equality. At the same time, it is vital to foster a culture of integrity by including ethical citizen values and respect for the rule of law in educational curricula.

4. While technology innovation accelerates and brings along exciting new opportunities, we have to form citizens that are prepared to constantly adapt. To achieve this, it’s key to develop a “learning to learn” model that will help our population to stay open to the future.

5. G20 countries also need to invest in appropriate digital infrastructure to allow broad-based access to digital learning solutions and integrate them into the physical teaching environment.

Digitalization is also an opportunity for women to improve their skills and income, and to increase their participation in the labor market. With the right policies in place, the digital economy could boost opportunities and reduce inequalities faced by people with disabilities and other vulnerable groups. ›

Co-Chair:

Co-Chair:

Co-Chair:

Nate Davis

David Iakobachvili

Peter M. Robinson

K12, INC.

Orion Heritage Co, Ltd

U.S. Council for International Business

“Sustained economic growth depends on the ability to fill advanced-skill jobs of the future. The B-20 presents an opportunity to explore personalized learning’s role in ensuring a career-ready 21st century workforce.”

“The B20 Task Force on Employment and Education is committed to promoting full and productive employment and decent work for all. This ambitious goal can be achieved through private-public cooperation aimed at enhancing quality of education, developing national qualifications systems, raising labor mobility, introducing digital technologies, increasing transparency and predictability of tax systems.”

“In light of emerging technologies and rapid disruptive innovation, preparing for the future of work is of critical concern to business. B20 is an essential partner in addressing this G20 priority.”

Co-Chair:

Co-Chair:

Co-Chair:

Diego Bekerman

Annemarie Muntz

Gisel Ruiz

Microsoft

Randstad

Walmart

This business community of G20 countries represents a unique opportunity to discuss how we can use technology to advance towards a more innovative, inclusive and diverse society.”

“Over the past years, the B20 Employment and Education Task Force has demonstrated its added value by strong alignment and messaging. Indeed, G20 agreed on the need of open, dynamic and inclusive labor markets to drive decent work and economic growth.

My commitment is to ensure these policies are implemented and, at the same time, social innovation is developed in order to secure sustainable career-paths for all workers in the Future of Work.”

“The future of work needs to be people-centered and techenabled and should provide opportunity at every skill level.

I believe training by the private sector to drive digital expertise within an agile workforce will play a central role in rising to this challenge!”

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B20 Executive Talk Series LEAD FEATURE

Executive Summary

PERSISTENT HIGH UNEMPLOYMENT REMAINS ONE OF THE GREATEST CHALLENGES IN MANY COUNTRIES AROUND THE GLOBE. › Persistent high unemployment remains one of the greatest challenges in many countries around the globe. Job creation must remain the number one priority for G20 countries, particularly bringing women, youth and the disabled into the labor market.

1. Open, dynamic and inclusive labor markets with simple, transparent, flexible and predictable legal employment frameworks allowing for a diversity of work forms continue to be key for inclusiveness. A wealth of data (including WTO and world Bank) shows that overly rigid labour markets, high non-wage labours costs and excessively bureaucratic burden hinder companies the ability of companies to employ people.

Countries which do not fully embrace these new realities in their regulatory framework will either lack job creation or will push employment into the informal sector.

realizing your true Randstad is a global leader in the HR services industry, active in 39 countries. We aim to offer our clients and candidates the best tools and solutions for increased efficiency and engagement, connecting more people to more jobs. By combining our passion for people with the power of today’s modern technology, we support people and organizations to realize their true potential.

potential. human forward.

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2. Social protection systems must be updated, looking for effective ways to adapt existing support systems to this new and growing workforce. Social protection schemes need to be adequate, comprehensive and portable, while at the same time they need to be financially sustainable.

3. As for female employment, leaders should report the advances made on the implementation of the 2014 Brisbane commitment, especially in national policy plans.

Today, 1.3 billion people live in informal employment2. Informality exacerbates inequalities and affects the most vulnerable in our societies. Besides, it creates an unfair competitive playing field.

4. The B20 calls for a roll back on informality. G20 leaders should reconsider the cost-benefit drivers of informality and encourage formalization through real benefits established in national-tailored policy plans. These may include streamlined business registration, temporary special incentives linked with labor registration and promotion of digitalization of payments, among others.

CURRENT LABOR MARKET TRENDS SHOW THAT THE PACE OF CHANGE IS ACCELERATING THE DEMAND FOR KNOWLEDGE-BASED, INTERDISCIPLINARY, PROJECT SOLVING AND TEAM-BASED WORK, WHICH IN TURN BOOSTS THE REQUIREMENT FOR CONTINUED EDUCATION.

Entrepreneurship and innovation are key drivers for job creation and economic growth in the formal economy. Yet, for most countries, the complexity of regulatory procedures remains the main obstacle to entrepreneurial activity.

5. In turn, G20 leaders should promote an enabling environment for start-ups and entrepreneurs, facilitating their access to finance, by simplifying regulatory burden, such as registration processes, and by promoting practical entrepreneurial education in school and in VET institutions. At the same time, it is crucial that G20 leaders incentivize apprentices’ programs by implementing past commitments in this regard. ■

1. WDR 2018 team, using “A Global Data Set on Education Quality” (2017), made available to the team by Nadir Altinok, Noam Angrist, and Harry Anthony Patrinos. Data at http://bit.do/WDR2018-Fig_O-5.

2. ILO January 2017, Enterprise Formalization Brochure

Buenos Aires. Argentina 2018 ❙ 25

B20 Executive Talk Series Chair’s Message

DIGITAL ECONOMY & INDUSTRY 4.0

Marcos Galperin CEO, Mercado Libre

For the 1st time in the history of humankind, we are at a moment when everyone in the planet can be connected to every other person, instantaneously and at an almost 0 marginal cost. The power that this global, immediate, interconnected web has, is endless, like our universe, and equally hard for our brain to comprehend.

We have built our societies, our institutions and our economies in a world where this global network did not exist, and people therefore needed intermediaries and representatives to access goods, services, make decisions, or just live in society. In the next decades, as the benefits of these global interconnections continue

to materialize, institutions that were once deemed relevant will become less so, and the same thing will happen to entire sectors of the economy.

We are convinced of the transformational power of technology and people working together to complement and enhance each other. We are now in a much better position to integrate billions of people to the expanding middle class, helping MSMEs to produce more, expand their boundaries, innovate, generate employment, and enhance their productivity. Technology is a key enabler to level the playing field among people as it is already doing with many sectors of our economy.

However, all processes of change, create winners and losers and therefore resistance and conflict. But the overall outcome will be greatly positive for our societies. It is therefore paramount that governments continue to encourage the digitalization of our economies and processes while ensuring that the benefits of these changes, are fairly distributed within our societies.

Our task force focused on the importance of developing the necessary Digital Skills that people will would need in order to better address the upcoming demands best suit upcoming demands from companies in this new era.

Marcos Galperin

WE ARE NOW IN A MUCH BETTER POSITION TO INTEGRATE BILLIONS OF PEOPLE TO THE EXPANDING MIDDLE CLASS, HELPING MSMES TO PRODUCE MORE, EXPAND THEIR BOUNDARIES, INNOVATE, GENERATE EMPLOYMENT, AND ENHANCE THEIR PRODUCTIVITY. 26 â?™ g20g7.com

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B20 Executive Talk Series LEAD FEATURE

Executive Summary

Digital Economy & Industry 4.0

Topics: › Digital Infrastructure › Measures to develop Industry 4.0 technologies › Digital skills › Digital trade & International data flows regulations › Data protection & privacy regulations › Regulatory environment for Fintech › Gender gap in digitalization › Cybersecurity

D

igital economy and Industry 4.0 permeate all aspects of society, including the way companies and governments work but also how people communicate and live their lives. The emerging digital economy has the potential to create economic growth and improve social welfare. Therefore, it is critical that policy makers create an environment for digitalization to flourish. B20 calls on governments to seize to the opportunity of digital transformation and Industry 4.0 with holistic enabling policy and regulatory frameworks based on 7 key pillars (digital skills, Industry 4.0, global connectivity, MSMEs, digital trade and data flows, financial technology and cybersecurity).

1. D igital Skills: Digitalization, automation and other technologies are fundamentally changing the nature of work. It is essential

Chair:

Marcos Galperín CEO, Mercado Libre

Co-Chair:

Co-Chair:

Pierre Nanterme

Rory MacFarquhar

Accenture

Google

“Technology is rapidly and dramatically transforming the way we work and live. In this environment, trust that we can use the power of technology as a positive force for the economy and broader society is paramount. This is why the B20 is important in helping to build collaborative relationships across businesses, governments and non-governmental organizations.”

“It is critical that governments and businesses work together to ensure that the benefits of technology are shared by everyone, that people have the skills to participate, and that policies foster inclusive economic growth across all G20 countries.”

Deputy Chair:

Co-Chair:

Co-Chair:

Jacobo Cohen Imach

Flavia Alves

Jan Mrosik

Mercado Libre

Facebook

Siemens

“As our economies go digital, hundreds of people will be integrated thanks to technology. In the B-20, our Task Force will express recommendations on how to best help the workforce develop necessary digital skills and ensure that we take firm steps towards a more inclusive society.”

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“Digitalization is increasingly interwoven into every aspect of our society, transforming lives and empowering all people. As stakeholders, our task is to collectively develop a digital agenda that expands access to these innovations. As part of a global community, we must embrace the challenge to ensure that this new digital society benefits all.”

“Digitalization is revolutionizing the global economy. For manufacturing companies, it enables shorter time-to-market, higher flexibility, efficiency, quality and new business models.

Governments and economies have to act jointly to leverage the opportunities resulting from Industry 4.0, global connectivity, artificial intelligence and demonstrate their commitment on cybersecurity.”

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DIGITAL ECONOMY & INDUSTRY 4.0

that governments focus on policies and investment in human capital and education to prepare the workforce for the future of work. In order to achieve a digitalized world, digital literacy and technical digital skills need to be fostered, no matter what job, what position or what industry today’s children will be working on, they will require a certain level of digital skills.

Governments, first of all, need to work together with businesses to assess the current and future digital skills gap and minimize that gap by investing in education programs, ensuring digital skills are an integral part to the curriculum, and also by helping to reskill and upskill the existing workforce. It is essential that education programs be accessible to both genders and address the digital skills gender gap.

2. I ndustry 4.0: Manufacturing practices are beginning to be transformed by the use of digital technologies. This fourth industrial revolution will make it possible to gather and analyze data across multiple devices, enabling faster, more flexible, and more efficient processes to produce higherquality goods at reduced costs, leveraging technologies such as autonomous robots, big data and analytics, additive

Co-Chair:

Carlos Moltini Telecom

“We are leaders in one of the industries that provides the greatest impetus and dynamism to Argentine communities, connecting its citizens and regional economies to the world. At Telecom we have been working hard to boost our infrastructure in order to improve the quality of life of our citizens, our goal is to offer permanent connectivity on multiple devices throughout the country.”

manufacturing and the cloud. Governments should support the creation of an Industry 4.0 ecosystem to foster best practices and use case sharing, enable collaboration between public and private institutions and encourage innovation. The Government’s role will be bringing together and aligning between all key stakeholders, matching new technology users and suppliers, equipping initiatives with greater public weight and supporting them financially. These developments will need an unprecedented degree of integration among systems and across borders, creating the need for developing international standards that allow an international coordination and cooperation.

3. G lobal Connectivity: Connectivity is a prerequisite for digitalization and, while the number of people “online” has improved during the last decade, there is still 50 percent of the global population “offline”1. Given the enormous impact that connectivity has on a nation’s GDP and welfare, it represents a relevant topic in every policy maker’s agenda. It is key then that governments encourage and facilitate private investment in infrastructure. The needed investments, focused on unserved areas, will allow consumers to have affordable connectivity while extending its coverage. ›

IT IS ESSENTIAL THAT GOVERNMENTS FOCUS ON POLICIES AND INVESTMENT IN HUMAN CAPITAL AND EDUCATION TO PREPARE THE WORKFORCE FOR THE FUTURE OF WORK.

Co-Chair:

Co-Chair:

Deep Kapuria

Pablo Di Si

The Hi-Tech Group

Volkswagen

“The Digital Economy has the potential to build not only a more inclusive economy but also an economy which is globally competitive, this where B20 DEI taskforce can contribute.”

“Our world is changing at a fast pace and the Digital Economy & Industry 4.0 is at a center stage of this revolution.

It is a great honor to participate and contribute in the B20 and Digital Economy 4.0 Workstream.”

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DIGITAL ECONOMY & INDUSTRY 4.0

GOVERNMENTS MUST CREATE AWARENESS ON CUTTING-EDGE TECHNOLOGIES AND BEST PRACTICES WHILE IMPROVING SUPPORT FOR REGULATORY COMPLIANCE IF MSMES ARE INVOLVED IN GLOBAL VALUE CHAINS.

› To expand broadband connectivity, countries will also need to maximize spectrum availability ensuring an adequate mix of protected, licensed, shared and unlicensed spectrum. Demand side has to be enhanced as well, promoting the creation of content and online services that foster a higher adoption.

4. M SMEs: MSMEs are the predominant form of enterprise across the world.

In surveyed countries, they account for approximately two thirds of existing jobs2.

With such an important share of the economy, their digitalization should be of prior importance to governments.

Frequently the reason for MSMEs not adopting innovative technologies are: either being unaware of the existence of such technologies, missing implementation know-how or absence of awareness of the economic fundamentals that justify implementation. Governments must create awareness on cutting-edge technologies and best practices while improving support for regulatory compliance if MSMEs are involved in Global Value Chains. They should also foster discussion forums between larger and smaller companies to improve collaboration and even create commercial opportunities. ›

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B20 Executive Talk Series LEAD FEATURE

Executive Summary

igital trade and data flows: Digital trade › 5. D has become an engine of economic growth for large and small businesses around the world. Even today, approximately 50 percent of all traded services are enabled by information and communication technologies3.Governments need to address e-commerce policies across borders that do not hinder international e-commerce growth, and coordinate cross-border payment systems, data security, consumer protection and authentication, among others. It is essential to encourage negotiations with international trade organizations to align on such cross-border policies. As governments seek to address the challenges to tax systems raised by the digitalization of the economy, they should pursue a multilateral, consistent approach and avoid unilateral measures targeting a single sector or group of companies. Moreover, to foster digital trade and international business operations it is important for countries to avoid data localization requirements and promote efficient data transfer mechanisms.

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DIGITAL ECONOMY & INDUSTRY 4.0

6. Fintech: More than 30 percent of the world’s does not have a bank account — a gap that is unevenly distributed among developed and developing countries4.

Supporting Fintech innovation is one of the potential solutions to close this financial gap, which is key given the positive effect that financial inclusion has on people’s welfare and the GDP. G20 members should adopt policy frameworks that enable financial technology services by players from different sectors, promoting competition across all levels of the financial service value chain, fostering innovation.

Moreover, governments should encourage companies to provide environments for cooperation which allow the Fintech ecosystem to facilitate testing and connectivity to current systems (e.g., APIs, Sandboxes).

7. C ybersecurity: In this era of digitalization where an increasing amount of information is shared among users, devices and machines, cybersecurity is becoming a key issue. Cybercrime has had an impact of as much as us$600 billion in 2017, and governments have a key role to play to stop cyber-threats5. In order to improve cybersecurity across countries, governments should partner with industry to adopt a holistic cybersecurity risk management approach. Both have a joint responsibility to protect and empower people globally, to partner with others and increase the security of our technology to assure cybersecurity and to combat offensive cyber capabilities of criminals,

SUPPORTING FINTECH INNOVATION IS ONE OF THE POTENTIAL SOLUTIONS TO CLOSE THIS FINANCIAL GAP, WHICH IS KEY GIVEN THE POSITIVE EFFECT THAT FINANCIAL INCLUSION HAS ON PEOPLE’S WELFARE AND THE GDP. terrorists, and other threats, avoiding damaging trust in the online environment.

G20 members should agree on starting baselines to adopt increasingly ambitious goals regarding cybersecurity frameworks.

A cross-sector and cross-border collaborative environment is needed and should be achieved through information-sharing efforts. This will allow countries to protect valuable data from malicious actors. ■

1. I TU, UN Broadband Commission sets global broadband targets to bring online the world’s 3.8 billion not connected to the Internet, accessed February 25, 2018, https://www.itu.int/en/mediacentre/Pages/ 2018-PR01.aspx 2. World Trade Organization (WTO), World Trade Report (2016): Levelling the trading field for SMEs, accessed June 19, 2018, https://www.wto.org/english/res_e/booksp_e/world_trade_report16_e.pdf 3. U NCTAD, Information Economy Report (2017), 30, accessed February 28, 2017,http://unctad.org/en/PublicationsLibrary/ier2017_en.pdf 4. W orld Bank (2018), op. cit.

5. M cAfee, Economic Impact of Cybercrime Report (2017), accessed May 2, 2018, https://www.mcafee.com/us/solutions/lp/economicscybercrime.html

Buenos Aires. Argentina 2018 ❙ 33

B20 Executive Talk Series Chair’s Message

FINANCING GROWTH & INFRASTRUCTURE

Eduardo Elsztain

Chairman, Grupo IRSA & Banco Hipotecario

Communication technologies are making the world a much more integrated place.

However, there are marked differences in the development patterns followed by different countries. These differences are leading to continuous divergences in life standards regarding wellbeing, and the distribution of income and wealth. One glaring difference is the diverse policies regarding investment in infrastructure. People-oriented infrastructure should be a central category in countries’ budgets, and new and creative mechanisms of financing such as the Public-Private Partnerships (PPP) should be encouraged and incorporated. In addition, our goal in these pages is to contribute to establish the proper analytical and policy frameworks in order to make infrastructure an asset class.

The significant importance of appropriate and modern infrastructure in the process of development has substantially increased in recent years because of the rising importance of technology as a source of growth.

Technology is an essential component of most of the new production functions and, being embodied in the new massive infrastructure projects, the transfer and

diffusion of new technologies is facilitated and energized in countries where infrastructure development is a priority.

In the past, the responsibility to build and finance infrastructure was exclusively of the governments; but economic and population growth creates greater pressure on the public sector and thus transfers the necessity of an increase in the participation of the private sector. This private participation should be further encouraged to complement public effort in bridging the infrastructure gap. For that reason, we need to promote a solid financial framework to strengthen infrastructure financing and long-term growth, with the adequate legal background, greater transparency and quality of information to guarantee predictability to the private investors that are attracted to these projects.

It is imperative to acknowledge that this is not just a concern for emerging economies and developing nations. It is essential for every country to take advantage of all the benefits that infrastructure investment offers, including the scope for focusing on inclusion and integration development.

It is also worthwhile to remark that recent

financial crises show that the political fallout from these events hinges mainly on the negative impact that they have on the distribution of income. In this context, the assembly of social infrastructure and the development of affordable housing has positive externalities since it tends to equal the provision of social requirements, and improve life quality in an increasing world population.

Infrastructure is a lever for economic growth.

In the short term, financing infrastructure stimulates demand and creates jobs. In the long term, investments drive productivity, deepen markets, and make economies more competitive.

As FGI B20 Argentina, we look forward to working together with G20 leaders to mobilize the G20 countries, the B20 companies and global policymakers. We have the responsibility and the challenge to take in additional financial resources to prop up growth and sustainable development through the provision and promotion of government support for the rapid growth and stable development of infrastructure.

Eduardo Elsztain

IT IS IMPERATIVE TO ACKNOWLEDGE THAT THIS IS NOT JUST A CONCERN FOR EMERGING ECONOMIES AND DEVELOPING NATIONS. IT IS ESSENTIAL FOR EVERY COUNTRY TO TAKE ADVANTAGE OF ALL THE BENEFITS THAT INFRASTRUCTURE INVESTMENT OFFERS, INCLUDING THE SCOPE FOR FOCUSING ON INCLUSION AND INTEGRATION DEVELOPMENT. 34 ❙ g20g7.com

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B20 Executive Talk Series LEAD FEATURE

Executive Summary

Financing Growth & Infrastructure

Topics: › Develop Infrastructure as an asset class › Promote Public-Private Partnerships (PPPs) › Increase access to affordable housing › Promote cross-border financial regulation consistency

Co-Chair:

Liang Dingbang ICBC

““China has been deeply engaged in economic growth and infrastructure development in the past four decades.

We hope to share the hard lessons learnt in this process and our hopes for the future in the work of this Task Force.”

Co-Chair:

Timothy Adams Institute of International Finance

“The B20 is a platform for global private sector leaders to come together to establish and promote a G20 agenda that includes sustainable investment into infrastructure for economic growth.”

Chair:

Eduardo Elsztain Chairman, Grupo IRSA & Banco Hipotecario

Co-Chair:

Co-Chair:

José Manuel González Páramo

John Denton

BBVA

International Chamber of Commerce

“Regulatory cooperation between countries and coordinated actions will be paramount to seize new challenges that emerge from digital innovation. This will help also to contribute to a more sustainable and inclusive society.”

“The massive capital flows into infrastructure from the world’s pension funds are not happening. Why? Because there are just not enough investable projects around.

We need to work harder to make this happen.”

Deputy Chair:

Co-Chair:

Co-Chair:

Mario Blejer

Fernando Lago

Enrique Cristofani

Banco Hipotecario

Cámara Argentina de la Construcción

Santander Río

“A neglected aspect of infrastructure investment is its potential beneficial impact on income distribution. While conventionally measured income distribution has recently suffered clear deterioration, the distribution is more equalitarian if we look at `all encompassing´ income, that includes the inputed personal value derived from the utilization of public goods and services.”

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“Technology fosters the world sustainable development.

Then, it is a must to overcome regional and social inequalities and reduce poverty. Closing the increased infrastructure gap will contribute to these goals.

Infrastructure will improve life quality and increase productivity. There are enough financial resources.

B20 should connect needs and resources.”

“Looking forward, Argentina has a great opportunity to become a regional leader. There is a society and a leadership that want to participate and commit with a better future. Every change starts in society and its leadership, continues in politics and then goes to the economic and financial.”

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FINANCING GROWTH & INFRASTRUCTURE

E

stimates indicate that global infrastructure needs will reach almost USD 70 trillion by 2035, and the world could face a USD 5.5 trillion gap, compromising economic growth and population’s wellbeing. Also, the lack of access to affordable housing will affect more than 1.6 billion people by 2025, mostly in major cities. This gap in infrastructure investment is uneven around the world, especially when considering the urgent needs that underserved regions face in terms of basic economic and social infrastructure. Moreover, financial markets are in constant evolution and require regulations to provide a stable environment for incentivizing growth and investment.

To close this investment gap, world leaders need to increase their efforts towards sustainable and resilient infrastructure investment, helping to also meet the Sustainable Development Goals while considering climate change adaptation and mitigation.

Closing the infrastructure gap will entail facilitating public and private investment in infrastructure through new and improved investment vehicles as well as strengthening the global financial sector. To this effect, the B20 encourages G20 leaders to pursue the following four actionable pillars:

WE ADVISE G20 LEADERS TO ADOPT MARKETORIENTED PIPELINES IN ORDER TO CREATE BANKABLE AND INVESTABLE INFRASTRUCTURE ASSETS; AND TO KEEP IMPROVING THE PROJECT PIPELINE TO BRIDGE THE GAP BETWEEN NATIONAL PLANNING PRIORITIES AND PRIVATE INVESTOR’S NEEDS.

At BBVA we have a purpose:

to bring the age of opportunity to everyone

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B20 Executive Talk Series LEAD FEATURE

Executive Summary

› 1. Advancing the implementation of infrastructure as an asset class by improving project bankability, supporting the creation of financial vehicles for infrastructure, and enhancing the role of MDBs We advise G20 leaders to adopt marketoriented pipelines in order to create bankable and investable infrastructure assets; and to keep improving the project pipeline to bridge the gap between national planning priorities and private investor’s needs. Also, we prompt the G20 to standardize the risk/return profiles of infrastructure investments, support the creation of marketplaces, and incentivize the creation of financial vehicles that can support the development of infrastructure as an asset class. The G20 should enhance the role of MDBs to support riskier infrastructure investments, project preparation and data transparency.

2. Increasing the impact of PPPs by clearly establishing their role, implementing competitive procurement mechanisms and promoting executional excellence

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THE G20 SHOULD ENHANCE THE ROLE OF MDBS TO SUPPORT RISKIER INFRASTRUCTURE INVESTMENTS, PROJECT PREPARATION AND DATA TRANSPARENCY.

We encourage G20 leaders to clearly establish the role of PPPs, to develop a competitive governance framework for PPPs, and to promote PPPs executional excellence. Additionally, the G20 should adopt PPP models considering financial, practical and political outcomes and increase project delivery efficiency through adoption of best practices.

3. Narrowing the affordable housing gap by setting policy targets, increasing resource efficiency and expanding financial access for developers and buyers We recommend G20 leaders to define affordability thresholds and promote a ladder approach for housing development.

Moreover, G20 leaders should expand financing to reduce costs for home buyers and developers while supporting a healthy

rental market. G20 leaders should also implement financing policies that expand the housing market by providing adequate instruments for developers and home buyers.

4. Ensuring consistency in financial regulation that fosters growth, stability and investment in infrastructure We encourage G20 leaders to enhance cross-border financial regulation consistency and to promote regulatory consistency to reduce compliance arbitrage costs by ensuring a proper dialogue with stakeholders in the implementation phase.

Also, G20 leaders should encourage sustainable development financing, since the development of quality infrastructure investment financing runs parallel to the development of a suitable financial system for sustainable development. ■

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B20 Executive Talk Series LEAD FEATURE

Chair’s Message

TRADE & INVESTMENT

Paolo Rocca

CEO, Techint Group

Investment and trade are fundamental engines for job creation, poverty reduction, and ultimately for achieving sustainable development goals.

The multilateral rules-based trading system has played an essential role in providing a credible framework for international investment and for the development of global value chains, contributing to fuel an unprecedented global economic growth and inclusion over recent decades.

However, world trade has changed dramatically since the WTO creation in 1995 after the Uruguay Round. The global scenario is radically different from the post war world that led to the original GATT negotiations. The emerging economic relevance of state owned enterprises, by substantial cross-border investments as

well as by participation in global trade is having an unexpected and significant competitive impact, particularly when distorting subsidies are present.

At the same time, the digital economy is boosting innovation in products and services, fostering the inclusion of micro, small and medium enterprises, and bringing along an enhanced focus on data. New technologies, along with responsible transformations towards more clean and circular economies are driving business leaders to rethink the way they conduct business at an accelerated pace.

Multilateralism, as a source of institutional predictability through international cooperation, is a fundamental enabler for entrepreneurship and investment. It is the way to move forward in order to bridge all social gaps, providing broad-based opportunities for all.

However, to retain much needed consensus and remain relevant, the multilateral trading system needs to evolve addressing distortions that have emerged within this new economic landscape. It needs to face all current issues to capture the enormously positive scenario ahead of us.

Our mission in this endeavor is to identify the most relevant challenges to the global trading system, to provide concrete recommendations about rules that need to be either adjusted or developed, as well as necessary efficiency or functionality improvements that need to be considered.

We are convinced that G20 leaders are facing a unique opportunity to reshape the multilateral trading system and lead the way into a new era of sustainable globalization.

Paolo Rocca

MULTILATERALISM, AS A SOURCE OF INSTITUTIONAL PREDICTABILITY THROUGH INTERNATIONAL COOPERATION, IS A FUNDAMENTAL ENABLER FOR ENTREPRENEURSHIP AND INVESTMENT. 40 â?™ g20g7.com

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Executive Summary

Trade & Investment

Topics: › Strengthen WTO as a centerpiece of the international trading system › Remove market distortions and state intervention to achieve a level playing field › Foster competitive neutrality principles for state-owned enterprises › Promote new frameworks and rules for the digital age › Encourage SMEs inclusion in global value chains › Accelerate a multilateral framework initiative on investment facilitation

T

he B20 community continues to believe that a rules-based multilateral system, ensuring open trade with a level playing field, is crucial for inclusive development and economic growth. To ensure continuity and improvement of the multilateral trade system as an enabler of

Co-Chair:

Jean Pascal Tricoire Schneider Electric

“The B20 is a unique opportunity for businesses operating at a global scale, in a world getting constantly more connected, to share insights and debate with governments on the opportunity of global trade.”

Chair:

Paolo Rocca CEO, Grupo Techint

Co-Chair:

Co-Chair:

Sunil Bharti Mittal

Alberto Grimoldi

Bharti Enterprises

Grimoldi

“Trade restrictive measures are detrimental to efforts to eliminate extreme poverty under the United Nations’ 2030 Sustainable Development Agenda. We urge the G20 to roll back existing barriers and ensure predictable, modern and up-to trade rules, required by businesses to operate efficiently and transparently, are put in place.”

“Globalization is more than the mere interchange of goods and services. B20´s Trade & Investment Taskforce represents an invaluable working space for exchanging thoughts and answers in a fast-changing world, in accordance with the principles of economic freedom, competition, private initiative and social responsibility.”

Co-Chair:

Co-Chair:

Co-Chair:

Ines Van Lierde

Marc Allen

Armando Garza Sada

AEGIS

Boeing International

Grupo Alfa

“The B20 Trade and Investment Task Force forum will be a unique opportunity for the business community to discuss how to create a positive environment for global investment and rules-based trade, and agree on standards to ensure fair international competition.”

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“Business has a clear role to play on matters of global t rade and investment – and a responsibility to make its voice heard and its views considered. Through dialogue with the G20, we can ensure our countries lead on trade and investment to promote global progress and inclusive prosperity.”

“B20 is a unique forum for the business community to address current challenges facing the world, including barriers to free trade and climate change.”

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TRADE & INVESTMENT

inclusive and sustainable globalization, a comprehensive approach needs to be undertaken. An ambitious and positive agenda for the 21st century, which includes the development of new rules and institutional adaptation, is therefore urgently required to avoid unilateral approaches and ensure governability.

In terms of the Trade Agenda, the B20 has identified three top priorities where joint action from leaders is required: 1. Addressing state-related competitive distortions, by initiating negotiations on transparent new rules that would ensure that no party is granted access to any non– commercially available benefit exclusively based on its ownership. These rules would therefore particularly address market-distorting industrial subsidies and consequently trade distorting actions by state-owned enterprises, which the Charlevoix G7 Summit Communique has recently pointed at.

2. Adapting rules to the digital age in order to provide regulatory coherence and identify regulatory gaps that need to be addressed to facilitate an open, inclusive and transparent digital trade with strong data protection and data privacy regulations.

3. Ensuring further inclusion of Micro, Small and Medium Enterprises (MSMEs) in international trade by improving access to finance, simplifying regulatory environments, tackling non-tariff barriers that impede the fragmentation of global value chains and refraining from introducing new distortive measures that prevent inclusion. The B20 would welcome further concrete joint public-private work in the arena of technical barriers to trade and phytosanitary measures to ensure transparency and full adherence to international standards and scientific evidence in the case of Sanitary and Phytosanitary (SPS) measures.

In terms of the Investment Agenda: the B20 h ighlights the importance of proactive involvement in investment facilitation negotiations aimed at reaching a predictable, transparent, non discriminatory investment framework while fully ensuring protection of intellectual property rights. In pursuing these objectives, there is also an opportunity for leaders to reach a clear, shared vision regarding investment screening mechanisms.

The World Trade Organization (WTO), due to its determinant role in international

trade, is usually referred to as the guardian of the multilateral trade system. The B20 members concluded that reform and structural functional improvements of the WTO need to be put into place to regain momentum. Several institutional reforms such as having a structured business advisory committee, addressing governance methods that would promote advancement (i.e. by considering alternative decision-making methods), as well as enhancing compliance (i.e. by strengthening the notification system), would bring substantial benefits. Finally, the B20 also strongly believes leaders should urgently get the Appellate Body vacant posts filled and work towards reforms that would foster effectiveness and a shortened timeframe for dispute resolutions.

I t is of utmost importance that G20 countries, who lead by example, strongly support adaptation to new economic realities and take positive actions to reshape the global trading system. â–

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B20 Executive Talk Series LEAD FEATURE

SUSTAINABLE FOOD SYSTEM

Chair’s Message

Luis Alejandro Pagani President, Arcor Group

With more than 90 members, the B20 Sustainable Food System task force is chaired

by Grupo Arcor and co-chaired by Bodega Luigi Bosca, Carozzi, Danone, Unilever, Business at OECD (BIAC), Sociedad Rural Argentina, The Coca-Cola Company, PepsiCo, and Grupo Cepas. The knowledge partner of the task force is BAIN & Company, and there are also three concept partners: COPAL, CREA, CEADS and two network partners: ICC and BIAC. This task force not only revisits but also broadens a topic that had been absent from the B20 agenda since it was last included in 2012, under the title “Food Security”. This working group also addresses the economic, social and environmental sustainability of food system, taking a holistic approach that is direly needed to meet the challenge of feeding an increasing world population with declining environmental resources.

The inclusion of this task force as a B20 priority area is a clear reflection of not just the Argentinian presidency’s focus on pursuing zero poverty, zero hunger and sustainable development goals as part of the G20 agenda, but also the massive impact that working towards a more sustainable global food system can have in achieving such goals. It is also a recognition of the fact that governments cannot strive to achieve these goals on their own, and that participation of the private sector through multi-stakeholder partnerships is crucial.

In its policy recommendations, the Sustainable Food System task force focuses on five main topics: eradicating malnutrition, undernourishment and obesity; ensuring environmental conservation and mitigation and adaptation to climate change; fostering technology development and adoption; minimizing food loss and waste; and reducing barriers to global food trade.

I honestly hope that the relevance of the

challenge of enhancing the well-being of humanity and the conservation of our planet, plus our initial work resulting in a set of well-founded policy recommendations, collaborative public-private sector initiatives and private sector commitments, will ensure the SFS agenda’s continuity in future G20 meetings as well as the continuity of this task force in future B20 meetings.

The world has agreed on a long-term agenda, the SDGs 2030, for global sustainable development, the elimination of poverty and hunger, and the integral improvement of people’s lives and well-being. Its achievement faces several challenges. The main lesson learned is that the G20 process, and the dialogue with and among the engagement groups, is a key enabling institutional platform to deliver on this long term sustainable development agenda.

Luis Pagani

THE WORLD HAS AGREED ON A LONG-TERM AGENDA, THE SDGS 2030, FOR GLOBAL SUSTAINABLE DEVELOPMENT, THE ELIMINATION OF POVERTY AND HUNGER, AND THE INTEGRAL IMPROVEMENT OF PEOPLE’S LIVES AND WELL-BEING OF HUMANITY. 44 ❙ g20g7.com

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Executive Summary

Sustainable Food System

Topics: › Malnutrition, undernourishment and obesity › Enviromental conservation, mitigation and adaptation to climate change › Technology development and adoption › Trade barriers › Food loss and waste

S

ustainably increasing production to levels required to ensure global nutritional security is one of today’s world greatest challenges.

According to United Nations data, by 2050, the world’s population will reach 9.7 billion people, with increased growth and increased urbanization, particularly in Asia and Africa1.

This demographic shift will directly affect consumption patterns, increasing demand for industrial food and value-added products.

This growth comes at a time where substantial parts of the global population still experience food insecurity. With roughly 815 million people currently living under food insecurity, production must also increase to feed those that are already hungry.

Without action, the increased production of food will entail additional use of critical environmental resources (e.g., water, land, energy, etc.). Amidst the global demographic growth and changing global climate, it is imperative to turn the food value chain into

Chair:

Co-Chair:

Luis Alejandro Pagani

Phil O´Reilly

President of Arcor Group

Business At OECD

“The sustainability of the food we eat is one of the most important issues for the world to tackle. Argentinian business should be congratulated for leading work in this area at the highest level. Business @ OECD is proud to bring its unique mandate and assistance to the table.”

Co-Chair:

Fernán Martínez Cepas Argentinas S.A.

“B20 SFS represents the most relevant occasion to craft developed and emerging countries synchronized public policy with purpose, guaranteeing access to healthy and affordable nutrition, with consciousness in the ease of implementation.”

Deputy Chair:

Co-Chair:

Co-Chair:

Cecilia Rena

Gonzalo Bofill Velarde

Joao Ramires

Arcor

Carozzi S.A.

Coca-Cola S. Latin

“The world faces the challenges of feeding an increasingly growing population within the context of a decling resource base. The process of dialogue and public-private partnerships are essential for a sustainable development.

We can build a better future if we work together.”

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“We must propose global public policies that will collaborate with obesity control, promote a healthy life style and facilitate free trade.”

“The eradication of malnutrition, undernourishment and obesity; the reduction of food trade barriers, environmental conservation; the promotion of technological development to foster industry growth and the reduction of food loss and waste are logical and mainstream thematic axes that have allowed the setting of a common agenda, making the industry a key actor in the acceleration of global solutions.”

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SUSTAINABLE FOOD SYSTEM

GLOBAL FOOD TRADE HAS A CRITICAL ROLE TO PLAY IN FEEDING THE WORLD; BY MATCHING FOOD SUPPLY TO GLOBAL DEMAND, EFFICIENT MARKETS ENSURE THAT FOOD IS ACCESSIBLE AND PROPERLY PRICED ACROSS THE WORLD.

a positive environmental actor that sustainably utilizes and restores natural resources. In order to continue feeding future generations, global food producers must broadly adopt sustainable agricultural practices to mitigate, adapt to and increase resilience to climate change.

In addition to broad global adoption of existing agricultural best practices, new and innovative technologies need to be developed and deployed across the food value chain to increase yields in a resource efficient way.

New technologies (e.g., biotechnology, digital technology, etc.) will play key roles in increasing production yields and maximizing resource efficiency to minimize environmental impact.

Alongside enhanced production, the global trade of food must function fluently while minimizing waste to ensure food security.

The UN estimates that one third of food is either lost in the pre-harvest, harvest, or processing stages or wasted by distributors and end consumers. Consequently, food value chains must function more efficiently and reduce (or find alternative uses for) lost or wasted food.

Global food trade has a critical role to play in feeding the world; by matching food supply to global demand, efficient markets ensure that food is accessible and properly priced across the world. Barriers to global food trade undermine comparative advantage and discourage investment in food production and innovation. ›

Co-Chair:

Co-Chair:

Francisco Camacho

Laxman Narasimhan

Danone

Pepsico

“A food revolution is happening and we choose to serve it, with partners. By supporting B20’s SFS, Danone wants to be a catalyst for change and foster healthier and more sustainable eating and drinking habits.”

“The private sector can and must accompany well-crafted public policies to ensure the availability, affordability, and sustainability of food systems throughout the world.”

Co-Chair:

Co-Chair:

Co-Chair:

Alberto Arizu

Daniel Pelegrina

Miguel Kozuszok

Luigi Bosca

Sociedad Rural Argentina

Unilever

“The B20 is a process to bring effective action policies to G20 governments. The SFS Task Force is a unique opportunity for relevant issues for our future. Sustainable production, global food trade, healthy and responsible consumption; food losses and waste are fundamental pillars of the discussion.”

“Farmers face a world with a growing demand for food and more than 800 million people under the situation of food insecurity. Our commitment, in the TF on Sustainable Food System of the B20, is to lead the development of policies that contribute to increase food production in a sustainable manner, and achieve a significant reduction of trade barriers.”

“As G20 represents developed and emerging countries, it is key that the Sustainable Food Systems guidelines guarantee that safe and healthy food production is stretched to its productivity frontier, and that all food flows move freely globally to guarantee its availability and affordability.”

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SUSTAINABLE FOOD SYSTEM

› Based on this context, the task force working group has focused on five primary issues for G20 leaders to address: 1. Eradicating malnutrition, undernourishment and obesity: In planning public policy to address malnutrition, it is essential to consider instances of public–private cooperation and dialogue. Policy should aim to strengthen regulatory frameworks and promote nutritional and healthy lifestyle programs.

The B20’s final recommendations include reinforcing multilateral food regulatory frameworks, strengthening the role of the Codex Alimentarius as an internationally approved set of guidelines, promoting consumer education, and developing food value chains that ensure food availability in developing countries.

2. Ensuring environmental conservation as well as mitigation and adaptation to climate change & 3. Fostering technology development and adoption: G20 leaders should also develop policies, incentives and capabilities to encourage the adoption of new technologies and practices that increase the sustainability and resilience

ALONGSIDE ENHANCED PRODUCTION, THE GLOBAL TRADE OF FOOD MUST FUNCTION FLUENTLY WHILE MINIMIZING WASTE TO ENSURE FOOD SECURITY. of food chains. These should increase productivity and the efficiency of resources, mitigating climate change, and enhancing soil conservation and ecosystem that sustain food production. Many of these practices already exist and have demonstrated their potential to increase yield while decreasing the negative environmental impacts (e.g., soil conservation

or carbon sequestration).

Recommendations include creating economic benefit systems that incentivize the efficient use of resources, financing the creation and adoption of new technologies, developing public-private partnerships to boost ecosystem management programs, and investing in rural productive infrastructure. ›

INCLUDES MORE THAN

80 BEVERAGES TO CHOOSE

45% ARE NO SUGAR OR LOW CALORIE OPTIONS

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B20 Executive Talk Series LEAD FEATURE

Executive Summary

GLOBAL FOOD TRADE HAS A CRITICAL ROLE TO PLAY IN FEEDING THE WORLD; BY MATCHING FOOD SUPPLY TO GLOBAL DEMAND, EFFICIENT MARKETS ENSURE THAT FOOD IS ACCESSIBLE AND PROPERLY PRICED ACROSS THE WORLD. › 4. Minimizing food loss and waste: Minimizing loss and waste can be one of the most effective ways to achieve a more sustainable food system that provides food security in a resource-efficient way. In this respect, B20 recommends to incentivize investments towards storage facilities, energy availability, transportation, access to telecommunications and other infrastructure to reduce food losses, particularly in developing countries.

Educating consumers on how to reduce food waste at the household level and creating self-sustaining and efficient secondary food markets or circular economies can decrease the negative environmental and societal effects from food waste.

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SUSTAINABLE FOOD SYSTEM

5. Reducing barriers to global food trade: The B20 remains committed to a multilateral trading system that is open, non-discriminatory, and rule-based. However, advances are required to help achieve SDGs throughout global food value chains. Business as usual is not an option. The trading system should progressively eliminate and correct barriers and distortions in global food and agricultural markets, enabling a greater integration of SMEs in developing countries into regional and global value chains. Final policy proposals regarding trade focus on the transparency of non-tariff measures and reducing non-tariff barriers, minimizing tariff barriers and distortive domestic support, and promoting the harmonization of regulatory frameworks, following the international science-based guidelines established in the Codex and in other multilateral avenues of consensus to prevent new NTBs. â– 1. United Nations, Department of Economic and Social Affairs, Population Division (2015). World Population Prospects: The 2015 Revision, Key Findings and Advance Tables. Working Paper No. ESA/P/WP.241.

PERFORMANCE WITH PURPOSE

PepsiCo is focused on improving the foods and beverages we sell, protecting our planet, and empowering people around the world.

Together with our business partners and leading organizations committed to positive change, we are determined to contribute solutions to shared challenges.

PepsiCo is a proud participant in B20 Argentina 2018 pepsico.com/purpose

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B20 Executive Talk Series Chair’s Message

ENERGY, RESOURCE EFFICIENCY & SUSTAINABILITY

Miguel Ángel Gutiérrez President, YPF S.A.

The ERES (Energy, Resource Efficiency and Sustainability) Taskforce, which I am honored to lead, is one of the B20’s eight active working groups and is made up of several national and international representatives from the energy industry. The working groups are currently generating proposals for consideration by the G20 which meet the Paris Agreement and the UN 2030 Agenda for Sustainable Development Goals.

To tackle these challenges, we need a vision of diversity and inclusion that takes into account new work skills; a perspective that is informed by the vast resources offered by science, technology, engineering, art and mathematics; one that puts customers and consumers at center stage and benefits from public-private collaboration.

Our debate takes place in a context where the main energy agencies forecast a 30% increase in world energy consumption between now and 2040. For this reason,

all of us industry members are working to identify, exchange and reach consensus on the best practices that allow for transition from a fossil fuel economy to a greener, sustainable economy and, finally and with time, to one that achieves zero-impact emissions.

This debate is mainly focused on transition acceleration; relevance of energy efficiency; access to affordable, reliable and sustainable energy; promotion of resource efficiency and circular economies; and adaptation to climate change.

One of the group’s preliminary conclusions is that the achievement of a sustainable energy future requires a platform for international cooperation to guide and support the different transition paths that countries are implementing. Such platform could facilitate and coordinate evidence-based policy making and accelerate actionable practices towards a low-carbon future.

Thus, based on the productive experience

of the Global Infrastructure Hub initiated by the Australia B20 FGI Taskforce, the ERES Taskforce recommends that G20 leaders establish a Global Energy Transitions Hub with a mandate to gather and share best practices, collaborate with countries on capacity building, develop and promote appropriate standards, and publish relevant data and reports for accelerating transition readiness.

Finally, the B20 has allowed Argentina to engage in fruitful debate and access already tested ideas (with their strengths and weaknesses) and solutions to problems associated with the transition to more sustainable energies. Tapping into this learning may enable Argentina to lead a historic process for the development of inclusive models that support increasingly cleaner, more accessible, and more affordable energy for a growing number of people.

Miguel Ángel Gutiérrez

OUR DEBATE TAKES PLACE IN A CONTEXT WHERE THE MAIN ENERGY AGENCIES FORECAST A 30% INCREASE IN WORLD ENERGY CONSUMPTION BETWEEN NOW AND 2040.

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Executive Summary

Energy, Resource Efficiency & Sustainabilty

Topics: › Promote energy transitions towards cleaner technologies › Energy effeciency › Affordable energy › Promote resource efficiency and circular economies › Climate adaptation agenda

T

he B20 Argentina calls for G20 leaders to pursue accelerated transitions towards a low carbon, sustainable and equitable energy future as mandated by the UN Sustainable Development Goals (SDGs).

The B20 also calls for decisive action against climate change and the provision of actionable roadmaps aimed at the accelerated reduction of greenhouse gases (GHG) emissions. B20 acknowledges that for signatory Governments, the Paris Agreement provides an international legal framework capable of ensuring local and regional paths to fight climate change at global scale.

To accomplish this goal, the B20 is determined to cooperate with the G20 leaders to overcome present challenges: Over 1.1 billion people worldwide still lack access to energy, 2.8 billion are in need of clean cooking solutions, and climate adaptation policies only account for 7 percent of climate impact investments.

Chair:

Miguel Ángel Gutiérrez

Co-Chair:

Co-Chair:

Kurt Bock

Ignacio Galán

BASF

Iberdrola

President, YPF S.A. “Climate protection is a global task. The business community provides the technology needed to achieve the ambitious emission reduction targets. B20 will discuss the concepts and political frameworks required.”

“The fight against climate change is a shared responsibility that must involve all agents of the economy. We all – governments, private sector and society as a whole– need to make a significant contribution. Now is time for action”.

Deputy Chair:

Co-Chair:

Co-Chair:

Sebastián Mocorrea

Hugo Eurnekian

Marcelo Mindlin

YPF

Compañía General de Combustibles

Pampa Energía S.A.

“Leading the B20 Energy, Resource Efficiency and Sustainability Task Force represents a unique opportunity for YPF, not only because we can contribute from our experience, innovation and technology, but also because it allows us to nurture other perspectives, to generate a rich debate for the transformation of the country´s energy model.”

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“I am thoroughly committed to the development of sustainable and efficient energy systems. It is the only route to the future of our societies.”

“We are increasingly facing pressures to decarbonize and increase the use of electricity. Cleaner alternatives and increased efficiency required investments while climate change ads uncertainty to the decision process. We intend to arrive to valuable assessment and recommendations to the authorities by engaging the private sector as a significant player in the design of regulation and business models.”

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ENERGY, RESOURCE EFFICIENCY & SUSTAINABILITY

A CLEAN AND EFFICIENT ENERGY FUTURE WILL ENTAIL THE WIDESPREAD ADOPTION OF RENEWABLE ENERGY SOURCES COMPLEMENTED BY CLEANER ENERGY SOURCES NAMELY: NATURAL GAS, CLEANER LIQUID FUELS, BIOFUELS, HYDROGEN, NUCLEAR AND ENERGY EFFICIENCY INITIATIVES. At the same time, global energy-related CO2 emissions grew by 1.4 percent In 2017, reaching a historic peak of 32.5 gigatons, while energy efficiency improvements slowed down. Worldwide consistent strategies to cope with the irreversible consequences of climate change need further conscious cooperation.

Additionally, resources are being utilized at an unsustainable pace, yet resource efficiency still falls behind in the leaders’ agenda, hampering necessary transformations from linear to circular economies.

The B20 has identified five actionable recommendations to address these challenges: 1. A ccelerate transitions to a low carbon future – The G20 should act decisively on mitigation strategies, favoring the substitution of high carbon fossil fuels for low carbon, renewable sustainable and cleaner energy sources.

Co-Chair:

Marcos Bulgheroni Pan American Energy Group

“Access to energy is key for growth and development. We must embrace the ongoing energy industry transformations and work to guarantee reliable and equitable energy access through an efficient use of the world´s resources.”

A clean and efficient energy future will entail the widespread adoption of renewable energy sources complemented by cleaner energy sources namely: natural gas, cleaner liquid fuels, biofuels, hydrogen, nuclear and energy efficiency initiatives.

Firstly, we advise G20 leaders on the importance of strengthening national policies that augment the capacity of countries to implement energy transitions while meeting growing energy demands.

We support developing roadmaps for energy transitions, respecting national specificities; scaling financial solutions to enable roadmap execution; promoting flexible regulatory environments and fostering just transitions. Secondly, we prompt the G20 to encourage accelerated research, development and deployment of renewable energies and cleaner sources, enhancing grid electrification, re-electrification, digitalization and storage technologies; fortifying carbon capture, usage and storage; and developing interconnections and international trade.

2. I ncrease coverage and impact of energy efficiency policies – The G20 should foster the expansion of energy efficiency policies, advancing standard-setting in energy and utility companies, businesses, households and transportation systems Firstly, we encourage the G20 leaders to commit to appropriate energy efficiency ›

Co-Chair:

Co-Chair:

Shu Yinbiao

Teófilo Lacroze

State Grid Corporation of China

Shell

“Energy transition is a long and systematic process, in which electricity has been playing a key role. Together, we will make the transition come true through clean replacement, re-electrification and building a new generation of power system.”

“We are going through a unique energy transition. The B20 provides the opportunity to discuss the best way to thrive through it with the commitment to offer energy solutions which we stand for, both governments and companies.”

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Executive Summary

› policies within energy and utility companies and across industries´ value chains. This includes reinforcing the global discussion towards a harmonized global carbon pricing as a policy to reduce energy waste and as an incentive to lower emissions. Secondly, we advocate for efficient policies and practices for buildings and households, implementing timedependent pricing and smart meters; and mandating sustainable building design.

Thirdly, we recommend the development of sustainable and efficient mobility systems setting standards for ground transportation.

3. E nsure access to affordable, reliable and sustainable energy – The G20 leaders should support the global expansion of energy access through on-grid, off-grid and clean cooking solutions for underserved communities striving to minimize the energy access gap.

Firstly, we encourage G20 leaders to promote rapidly implementable

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WE FIRMLY BELIEVE THAT THE ACHIEVEMENT OF A SUSTAINABLE ENERGY FUTURE REQUIRES A PLATFORM FOR INTERNATIONAL COOPERATION GUIDING AND SUPPORTING THE DIFFERENT TRANSITION PATHS THAT COUNTRIES ARE IMPLEMENTING. transition solutions to reach SDG7, acing the challenges of each alternative, such as densification and expansion of on-grid solutions for urbanizations and decentralization and off-grid solutions for rural communities, while systematically prioritizing the provision of clean cooking solutions. Secondly, we encourage and support the G20 to assist countries in public policy planning and in promoting sustainable business models to reach underserved communities.

4. P romote resource efficiency and circular economies – The G20 should promote policies and incentives for the adoption of circular business

models to finally decouple economic growth from environmental issues.

Firstly, G20 governments should promote knowledge and capacity to facilitate and regulate circular economy development, enabling public and private sector cooperation to identify practical opportunities in: resource recovery, product life extension, circular design, shared platforms. Secondly, we prompt G20 leaders to develop metrics and methods to track and efficiently promote circular activities in the private sector, enhancing reuse, recycling and upscaling, while strengthening competitiveness and innovation.

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ENERGY, RESOURCE EFFICIENCY & SUSTAINABILITY

5. Expand climate change adaptation policies – The G20 leaders must improve climate-resilience plans, evaluation and funding of adaptation policies.

Firstly, we recommend G20 leaders to enhance the ability to assess and predict the impacts of climate change on infrastructure, production and business operations through climate modelling and forecasting tools, emergency response and disaster recovery plans. Secondly, we call for innovative technological integration of climate models and risk assessment into development policies and plans, supported by financial mechanisms to close the investment gaps in adaptation.

Finally, we firmly believe that the achievement of a sustainable energy future requires a platform for international cooperation guiding and supporting the different transition paths that countries are implementing. Such a platform needs to facilitate and coordinate evidence-based policy making and accelerate actionable practices towards a low carbon future.

Through enhanced international cooperation and the implementation of the recommended actions, the G20 leaders hold a unique opportunity to make progress towards mitigation and adaptation to

climate change and advancing towards the Sustainable Development Goals, delivering the promise of a shared and sustainable prosperity within a low carbon and equitable global economy. â–

Buenos Aires. Argentina 2018 â?™ 57

B20 Executive Talk Series Chair’s Message

By Inés Berton

CEO & Founder, Tealosophy

SMEs role in promoting inclusive and sustainable growth Small and medium-sized enterprises (SMEs) and entrepreneurs constitute the backbone of national economies. SMEs are decisive for economic development and account for the largest portion of employment.

The B20 Argentina SMEs Development Task Force, composed of more than 150 worldwide members, defined its ambitious mission to identify and propose policy actions that reflect Small and Medium Enterprises’ needs while stressing their relevance as the backbone of national economies in every G20 country.

From the start, I have encouraged SMEs members to think outside the box as SMEs’ own dynamics are often disruptive and innovative. As a driver of economic growth and job creation, SMEs potential cannot afford to remain stagnant.

We are living in a world where business, technology, politics and societies quickly intersect with each other. This poses challenges but also new opportunities to SMEs development. It is important to emphasize that SMEs need to be more

flexible and more dynamic to rapidly adapt to this new era characterized by digital transformation and new forms of work.

The B20 community has emphasized the critical role SMEs play in achieving Sustainable Development Goals (SDGs) and promoting inclusive economic growth. We have identified four main areas that need to be discussed in order to foster SMEs birth and survival rates.

Strengthening SMEs capabilities—in terms of improving their access to finance, fostering talent attraction and entrepreneurial skills development, providing simplified regulatory frameworks and promoting active participation in the digital economy—remains crucial to reduce social inequalities.

Identifying SMEs’ challenges according to their development stage has been a substantial step towards a better understanding of SMEs heterogeneity, as well as the critical success factors and failure risks they face at each level of growth. The micro, small and medium enterprises sector is dynamic and ever-changing.

As its composition varies across countries and sectors, a comprehensive view needs to be undertaken when designing national policies that enhance SMEs opportunities.

To unleash SMEs’ positive impact on societies, SMEs’ main barriers for growth, particularly political and institutional settings, should be targeted and redefined to address

SMEs’ constraints for scaling up, promoting SMEs internalization through digital platforms and global value chains.

Digitalization is changing the economic landscape and creating new opportunities for SME development. Often, new and small enterprises are the leading forces of innovation due to their ability to work outside established paradigms, giving SMEs a competitive advantage over larger firms. Fostering entrepreneurship and innovation should therefore be at the core of any tailored national policy that aims to achieve creative and value-added goods and services for their economies.

Finally, I would like to specially highlight the role of SMEs in bridging social and gender divides. I believe SMEs have a special role to foster women’s involvement in the labor market. Tackling informality is one way to promote women’s access, since the informal economy is generally associated with unsafe conditions, limited rights for workers, very low payment and stronger gender segmentation.

As entrepreneurs, SMEs task force members have been bold in proposing new ways forward as we feel the responsibility to provide our unique perspective in the design of policies that contribute to sustainable and inclusive growth.

Inés Berton

FROM THE START, I HAVE ENCOURAGED SMES MEMBERS TO THINK OUTSIDE THE BOX AS SMES’ OWN DYNAMICS ARE OFTEN DISRUPTIVE AND INNOVATIVE. 58 ❙ g20g7.com

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Executive Summary

SMALL & MEDIUM ENTERPRISES DEVELOPMENT

Small & Medium Enterprises Development

Topics: › Policies to promote talent attraction and entrepreneurial skills › Develop finance facilitation programs › Facilitate an effective and timely transition from the informal to the formal economy › Promote simplified and SME-friendly regulatory frameworks › Innovative inclusion through digital transformations › Bridge the gender gap

Small and Medium Enterprises (SMEs) account for over 95% of enterprises, 60-70% of employment and 55% of the gross domestic product and are essential to strengthening productivity and delivering more inclusive growth. ›

Co-Chair:

Graciela Fresno Federación Empresaria Hotelera Gastronómica de la República Argentina “B20 favors the improvement of coordination between governments and companies to face the challenges of the current technological revolution by guaranteeing sustainability and global inclusion.”

Chair:

Inés Berton CEO & Founder, Tealosophy

Co-Chair:

Co-Chair:

Victor Dosoretz

Luca Donelli

Cámara Argentina de Comercios y Servicios

European Confederation of Young Entrepreneurs

“The business community is ready and willing to support small business growth, SMEs are the backbone of the global economy and it´s development will therefore result in economic growth, job creation and a more prosperous future for all.”

“We need a novel approach for sustainable growth & employment, particularly amongst the youth. Topics discussed at SMEs Development task force are pivotal in promoting enterprises startup and scale up by spurring innovation via access to GVCs and cooperation with research centers.”

Co-Chair:

Co-Chair:

Co-Chair:

Martin Castelli

Pedro Cascales

Mary Vermeer Andringa

Blue Star Group

Confederación Argentina de la Mediana Empresa

Vermeer Corporation

“In a world that changes exponentially, SMEs have the ability and dynamism to adapt to the environment. It’s an honor to be part of the SME’s taskforce where we work creating a framework for a more virtuous growth.”

“The SME issues are crossborder with almost all the chapters of the B20, participation in this task force allow |us to bring light and public focus to many of the problems the G20 needs to address regarding SMEs in order to have a strong and sustainable economy.”

“When SME’s languish, countries languish. When SME’s thrive, countries thrive. We are not just talking about impersonal concepts of SME’s and countries, we’re talking about people. A few solid recommendations offered and implemented would be a success.”

Buenos Aires. Argentina 2018 ❙ 59

B20 Executive Talk Series LEAD FEATURE

Executive Summary

›

E

ven though there is a wide acknowledgement of SMEs importance to national economies, they yet face already identified roadblocks such as informality, low productivity and scarce access to finance that need to be addressed with a fresh impetus.

While SMEs heterogeneity in terms of their diversity, ecosystem and life cycle need to be properly considered, policy makers should focus on advancing concrete actions for each of SMEs’ stages of development: creation, survival and growth. When grouped around their stage of growth, it quickly becomes apparent that SMEs face common barriers that therefore should be tackled comprehensively.

In order to foster SMEs generation, G20 leaders should focus on ensuring a necessary competitive and stable economic environment to start their business and thrive.

60 ❙ g20g7.com

DIGITAL TRANSFORMATION ALSO OPENS NEW OPPORTUNITIES FOR SMES SCALING UP, REDUCING THE COST OF ACCESS TO SKILL, TALENT, ENHANCING RECRUITMENT AND KNOWLEDGE PARTNERS THROUGH NEW COMMUNICATION CHANNELS AND BY ENABLING DISRUPTIVE WAYS FOR BUSINESS MODELS TO SUCCEED.

1. Entrepreneurship is at the core of the SMEs formation, their survival and growth. Governments should aim at promoting entrepreneurship skills through education and training broadening the funding alternatives and financial assistance and introducing special entrepreneurship programs that may, for instance, temporarily reduce tax burden.

2. Equally relevant is the fact that SMEs need to develop capabilities to attract and maintain talent. Even if this is an issue transversal issue is common to enterprises of all sizes, SMEs often find this task particularly troublesome due to a lack of resources, that typically tied to their ability to compete with larger firms in terms of salaries, recruitment and on the job training opportunities. b20argentina.info

SMALL & MEDIUM ENTERPRISES DEVELOPMENT

Argentine Commerce and Services for growth

3. The B20 also encourages the development of clusters and innovation networks to provide SMEs with an alternative way of sharing knowledge and best practices.

Cooperation between different stakeholders -namely industries, research institutions, and universities- can improve SMEs’ productivity, competitiveness and foster innovation.

4. Across all stages of their life cycle, SMEs require access to sources of financing to start-up, survive and grow.

SMEs’ “financing gap” is increasingly becoming one of the main challenges to development, particularly in developing countries. Since SMEs are often the most vulnerable link in national economies, financial inclusion should be at the center of any SMEs policy. While bank lending is the most common source of external financing for SMEs, other forms of › Buenos Aires. Argentina 2018 ❙ 61

B20 Executive Talk Series LEAD FEATURE

Executive Summary

› funding should be considered. Publicprivate investment to reduce the risk of business failure or crowd funding could be some of the alternative financial instruments to be encouraged. In addition, enhancing financial literacy of SMEs simplifying capital market procedures and lowering the accessibility cost structure especially for the unbanked, is key.

5. Similarly, institutional and regulatory settings are fundamental to ensure that all businesses compete on a level playing field. As complex regulatory frameworks inflict higher burden for small enterprises than larger businesses, tailored policies that advance regulation simplification schemes should also be implemented.

Increasing tax burdens and high administrative costs impacts negatively is on job creation reduction and/or rises informality. Administrative simplification, regulatory coherence and reduction of tributary weight is necessary for SMEs to scale up. An effective regulatory framework can help SMEs to improve their productivity and competitiveness, inclusion in global value chains becoming a part of the global economy.

6. Internalization offers opportunities to SMEs expansion as it allows firms to specialize and benefit from knowledge spillovers from participation in Global Value Chain. In order take full advantage of internalization potential, G20 leaders should promote SMEs upscaling by investing in skill development, management organization and processes. In these respect Digital economy offers new opportunities for SMES inclusion

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SMALL & MEDIUM ENTERPRISES DEVELOPMENT

DEVELOPMENT OF CLUSTERS AND INNOVATION NETWORKS TO PROVIDE SMES WITH AN ALTERNATIVE WAY OF SHARING KNOWLEDGE AND BEST PRACTICES.

7. Digital transformation also opens new opportunities for SMEs scaling up, reducing the cost of access to skill, talent, enhancing recruitment and knowledge partners through new communication channels and by enabling disruptive ways for business models to succeed, typically referring to e-commerce platforms. Furthermore, the use of digital tools grants SMEs access to global value chains and international markets.

8. Finally, a large number of SMEs have not been able to take advantage of the benefits of the digital economy. Adoption of digital technologies has not been equal between SMEs and larger firms. To narrow this gap, policies should target not only connectivity and digital infrastructure, but access to digital-enabled platforms, e-commerce and mobile applications.

The B20 SMEs Cross-Thematic Group is confident that the implementation of the recommended actions will allow for SMEs to deliver valuable contributions towards inclusive growth sustainable economic development. ■

INTERNALIZATION OFFERS OPPORTUNITIES TO SMES EXPANSION AS IT ALLOWS FIRMS TO SPECIALIZE AND BENEFIT FROM KNOWLEDGE SPILLOVERS FROM PARTICIPATION IN GLOBAL VALUE CHAIN .

Can a question start a ripple that will help the world work better? ey.com/betterworkingworld #BetterQuestions

The better the question.

The better the answer.

The better the world works.

Buenos Aires. Argentina 2018 ❙ 63

B20 Executive Talk Series LEAD FEATURE

Chair’s Message

George Mandelbaum President, CIPPEC

The Integrity and Compliance CrossThematic Group that was put together under the umbrella of the B20 Argentina 2018 was indeed challenged by what became very evident too soon: a lot has been written about this subject over the past few years, very specifically for the different G20 encounters, but not much was concretely acted upon.

This perception posed the challenge of coming up with something new, fresh, concrete and - above all - doable.

Some challenge!!!

We did have a couple of crucially important assets going for us: a really knowledgeable and experienced small

team of local experts and the extremely valuable help of well over a hundred participants from all over the world that were willing and able to give us their input and critical eye. Communication flowed, not without some difficulties, but smoothly enough to produce a substantial paper that is now available.

What is new in this proposal is the creation of the concept of a COMMITMENT TO INTEGRITY AND ETHICAL STANDARDS (CIES) which in essence requires adherence to promote an essential starting point to promote a virtuous cycle of integrity by the public and private sectors, including SOEs to a basic set of principles. By committing

to these guiding principles this promotes an environment that values integrity and supports ethically sound behaviour.

In time, the governments and markets should give priority contracting (public sector) or market share (private sector) to those who have adhered to the CIES over those who have not, thereby creating the virtuous cycle mentioned above.

This idea has been the result of an interesting, intense and creative exercise which hopefully will contribute to future G20 meetings to follow and improve.

George Mandelbaum

WE DID HAVE A COUPLE OF CRUCIALLY IMPORTANT ASSETS GOING FOR US: A REALLY KNOWLEDGEABLE AND EXPERIENCED SMALL TEAM OF LOCAL EXPERTS AND THE EXTREMELY VALUABLE HELP OF WELL OVER A HUNDRED PARTICIPANTS FROM ALL OVER THE WORLD THAT WERE WILLING AND ABLE TO GIVE US THEIR INPUT AND CRITICAL EYE. 64 ❙ g20g7.com

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Executive Summary

INTEGRITY & COMPLIANCE

Integrity & Compliance

Topics: › I&C for State-owned & State Owned Enterprises › Transparency in public Infrastructure projects Beneficiary Ownership › Commitment to integrity and Ethical Standards for all (CIES) › Education and Rule of Law to foster a culture of integrity › Emhance integrity in public procurement, especially in infrastructure › Implement high standards of ethics and integrity for SOEs › Insist on Beneficial Ownership Transparency

C Chair:

George Mandelbaum President, CIPPEC

Co-Chair:

Jacqueline Donaldson Nestlé

“Corruption is a multidimensional problem that needs to be confronted at every level, including the private and public sectors, and society at large. We all have a role to play.”

orruption is a major barrier to prosperity and equality, erodes trust in government, affects economic and financial stability, threatens investment and curtails the basic rights of citizens. When corruption intervenes, it affects the whole investment ecosystem and, in the end, society pays social and development costs that are difficult to evaluate.

Strong national anticorruption policies build through collective action are positive for business and society as a whole. The Business 20 underscores the urgency of effectively advancing the anti-corruption agenda and expresses its readiness to work with relevant stakeholders to carry it through. ›

Co-Chair:

Co-Chair:

Co-Chair:

María Elena Casasnovas

Marc Firestone

Klaus Moosmayer

Asociación Cristiana de Dirigentes de Empresa

Philip Morris International

Siemens AG

“To work in favor of integrity in business requires of participants -first and foremost- a personal commitment to maintain a clear and responsible behaviour founded on solid values, setting a model for the enterprise itself and an example for society.”

“Business has a clear role to play on matters of global trade and investment – and a responsibility to make its voice heard and its views considered. Through dialogue with the G20, we can ensure our countries lead on trade and investment to promote global progress and inclusive prosperity.”

“Integrity is the basis of sustainable business and responsible conduct, but it is not a given. We need to promote it every day and strive for it together with both the public and private sectors. The implementation of effective Compliance systems in both the private and public sector is key for clean business and fair competition. It should be recognized and rewarded.”

Co-Chair:

Co-Chair:

Co-Chair:

Sujata Dayal

Corinne Lagache

Paula Morrone

Johnson & Johnson

Safran

Unilever

“Integrity and compliance are fundamental to establishing trust with the many stakeholders who are counting on us, and that is why I am delighted to be a co-chair of the Integrity & Compliance Task Force of the Argentina B20.

The B20 helps us all advance effective compliance systems and build cultures that embed integrity throughout our practices and operations.”

“I have the honor to co-chair the Integrity & Compliance task force at B20 Argentina. The G20/B20 process is a great way to foster the dialog between business, government, civil society and media on Integrity & Compliance.

We will not combat effectively the poverty, waste of resources and erosion of trust inherent to corruption if we fight separately.”

“The B20 represents a unique opportunity to reach public & private cooperation for a responsive and responsible leadership, addressing corruption and rebuilding trust into the system.”

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B20 Executive Talk Series LEAD FEATURE

Executive Summary

› A public-private commitment to Integrity and Ethical Standards (CIES) towards a set of common values and standards, that promotes a culture of integrity, transparency, accountability and social responsibility, consistent with G20 High-Level Principles and international conventions related to integrity and anti-corruption would provide a common basis on which to hold the public and private sectors to account. It would thereby ensure a level playing field and create an enabling environment that upholds education, the rule of law and digitalization as the foundation of its execution.

In this sense, we welcome the principles and tools developed by the G20 Anti-Corruption Working Group (ACWG), especially on asset recovery, beneficial ownership transparency, asset disclosure by public officials, open data and integrity in public procurement, as valuable starting points. It is urgent to fully put them into practice, and track whether these commitments are having the expected impact.

Following prior B20 recommendations, B20 Argentina focused in three pillars: 1. Enhancing integrity and transparency in public procurement with a focus on infrastructure projects: 'To address the susceptibility to corruption in infrastructure projects, this recommendation promotes integrity enhancement by transparent access to relevant information, by streamlining procedures, by applying integrity standards requirements to all stakeholders in the procurement cycle and by building reporting mechanisms, maximizing the use of digitalization for this purpose.

It also proposes establishing incentives for companies that adhere to high-quality standards of integrity and compliance in the form of an eligibility requirement or affirmative competitive preference, ensuring the participation of all stakeholders in the procurement process.

STRONG NATIONAL ANTICORRUPTION POLICIES BUILD THROUGH COLLECTIVE ACTION ARE POSITIVE FOR BUSINESS AND SOCIETY AS A WHOLE. THE BUSINESS 20 UNDERSCORES THE URGENCY OF EFFECTIVELY ADVANCING THE ANTI-CORRUPTION AGENDA AND EXPRESSES ITS READINESS TO WORK WITH RELEVANT STAKEHOLDERS TO CARRY IT THROUGH. 66 â?™ g20g7.com

2. Implementing high standards of ethics and integrity with a focus on State-Owned Enterprises (SOEs): As custodians of public assets, SOEs should be the champions of integrity and transparency. This recommendation therefore looks upon high implementation standards of integrity and compliance for State-Owned Enterprises (SOEs) -establishing programs adopted by the private sector customized to consider b20argentina.info

INTEGRITY & COMPLIANCE

specific risks of State enterprises, ensuring accountability through information, transparency and public account reporting, as well as promoting collective action between SOEs and the private sector to develop integrity initiatives.

3. Pursue the implementation of beneficial ownership transparency: To deter the wrongful use of legal persons and arrangements, this recommendation focuses on the full implementation of beneficial ownership action plans, the mandating of public registers of beneficial ownership information, and the development of rules for its effective and efficient data handling and exchange.

Recognizing the need to monitor advances in the implementation of previous and current G20 commitments related to integrity and anti-corruption, the B20 calls on G20 leaders to entrust the task of developing and applying specific indicators for monitoring progress and measuring impact, as well as publishing results.

We remain fully committed to contribute with governments and international organizations in the fight against corruption. ■

WHEN CORRUPTION INTERVENES, IT AFFECTS THE WHOLE INVESTMENT ECOSYSTEM AND, IN THE END, SOCIETY PAYS SOCIAL AND DEVELOPMENT COSTS THAT ARE DIFFICULT TO EVALUATE.

Buenos Aires. Argentina 2018 ❙ 67

CAT Company

G20G7.COM 68 â?™ g20g7.com

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Trade with Taiwan Matters.

So does international recognition.

As the United States, the United Kingdom, Japan and all members of the G-7 rethink their trade relationships with each other and the world, it is important to remember that trade with Taiwan matters, as does international recognition.

With over 70,000 members, including business leaders from all sectors, the Taiwan Civil Government (TCG) seeks a diplomatically recognized Taiwan with an even stronger relationship with the United States. As politics and foreign policy in Asia heat up, the world has a strong partner in the TCG and Taiwan. And, it matters.

TAIWAN’S ECONOMY AND STATURE

US’s tenth largest goods trading partner with $65.3 billion in total goods traded.

11th largest economy in the world

Trade between Taiwan and the EU-28 reached US$ 48.8 billion in 2016, an increase by 5,0 % in comparison to 2015

Trade in services with Taiwan totaled $19.4 billion in 2016.

TaiwanCivilGovernment.com

Materials distributed by Global Vision Communications on behalf of the Taiwan Civil Government. | Additional information is available at the Department of Justice, Washington, DC.

B20 Executive Talk Series LEAD FEATURE

Welcome Message

John Denton

Secretary General, ICC

›

Building a world trade system fit for the future In reading the headlines on world trade over the past year, it would be easy to think the current tensions are a new phenomenon, given life by a particular set of political personalities and fresh economic angst.

There is no doubt that the strain on the international trading system is now reaching a critical point, but concerns over the world trade order and the uneven spread of its benefits have, in fact, been building for a time.

In 1995, 50 preferential trade agreements were signed. In 2017, the number dropped to three. The kind of ambitious trade agreement that once characterised the global economy now seems increasingly elusive.

The US withdrew from the Trans-Pacific Partnership in early 2017 before it was later repackaged and agreed by the remaining 11 members, the North American Free Trade Agreement remains in renegotiation and the most recent World Trade Organisation

(WTO) ministerial conference ended without any multilateral outcome. Across the map, the decline in tariff rates that was a feature of the pre-financial crisis world has come to a “standstill”, according to a European Central Bank analysis, while new discriminatory actions announced by G20 economies have increased since 2012.

A whole new world These trends reflect that open trade is, in many ways, a victim of its extraordinary success. According to World Bank figures, the number of people living in extreme poverty was cut from two billion to 700 million in a single generation—from 1990-2015—largely due to the liberalisation of world trade. Trade has also dramatically increased global living standards, bringing an unprecedented range of new products to marketplaces at lower costs.

Researchers at the International Monetary Fund calculate that a one percentage point increase in trade openness tends to raise real per capita income by 3-5% in the long run.

The pace of this remarkable transformation of the global economy, however, has unsettled many and the net positive impact of global economic integration has not been felt uniformly by all. Trade is often blamed for the loss of industrial jobs in advanced economies despite the fact that new technologies and automation—not overseas competition— are responsible for 80% of jobs lost.

Moreover, the perceived inability of the WTO to adapt to emerging technological and geopolitical trends has given centre stage to voices claiming that the system has failed. The e-commerce revolution is, for example, fundamentally changing the nature of trade as we know it, but global trade rules still largely reflect 20th century patterns. The WTO’s emphasis on consensus-based decision-making between its 164 members has also made it increasingly challenging to broker ambitious multilateral trade agreements as more divergent views are asserted. ›

ACCORDING TO WORLD BANK FIGURES, THE NUMBER OF PEOPLE LIVING IN EXTREME POVERTY WAS CUT FROM TWO BILLION TO 700 MILLION IN A SINGLE GENERATION—FROM 1990-2015—LARGELY DUE TO THE LIBERALISATION OF WORLD TRADE. 70 ❙ g20g7.com

b20argentina.info

Did you know over 1,000 new businesses start up in the UK every day?

The UK is one of the leading business locations in the world and the number one destination for inward investment (FDI) in Europe.

Discover a land alive with opportunity at invest.great.gov.uk The world’s financial centre London, UK

invest.great.gov.uk

B20 Executive Talk Series LEAD FEATURE

Welcome Message

John Denton

Secretary General, ICC (Continued)

› The call for world trade reform The reality is that even the WTO’s strongest proponents recognise the need for reform.

French President Emmanuel Macron has called for a “complete overhaul” of the organisation and suggested talks between the EU, US, China and Japan to develop a roadmap. The Canadian Government is working on a blueprint to “strengthen and modernise” the WTO and the EU recently released proposals for a “comprehensive” modernisation of the institution. At a meeting between G20 trade ministers on 14 September, the joint statement noted the “urgent need” to improve the WTO and encouraged ideas for world trade reform from “other interested parties”.

As the world’s largest business organisation—covering over 45 million companies and more than a billion workers—ICC represents more users of the international trading system than any other and our commitment to rules-based multilateral trade has been pivotal from

the very beginning. As early as 1927, ICC submitted a 150-page report to the League of Nations on lowering tariff barriers that was widely regarded as the “conceptual origin of the General Agreement on Tariffs and Trade”, which itself was succeeded by the WTO. Nevertheless, we also recognise that the WTO must adapt to a rapidly changing world and believe that input from the private sector is essential to ensuring reforms make meaningful change. The global business community holds vast pools of knowledge based on real-world experience trading across borders and is thus well-placed to offer ideas and solutions on dealing with contentious issues, from the conduct of state-owned enterprises to protecting intellectual property.

But as Mr Macron stated in his call for WTO reform, we must also move beyond a simple revamp of trade rules. The future of world trade demands a commitment to ensuring that the benefits of trade are shared more widely and that trade contributes to broader sustainable development goals. This means

ICC IS ALREADY FOSTERING A DIALOGUE AROUND A REFORMED MULTILATERAL TRADING SYSTEM THROUGH A ‘SECOND TRACK’ INITIATIVE THAT BUILDS ON WHAT HAS WORKED WELL OVER THE PAST 70 YEARS, IDENTIFIES WHAT NEEDS PRESERVING AND ADDRESSES AREAS THAT MUST BE IMPROVED. 72 ❙ g20g7.com

ensuring trade and climate policies advance in lockstep; that small businesses have the information and financing they need to expand into global markets; and that female traders can reach their full potential free from discrimination.

Setting a new course together ICC is already fostering a dialogue around a reformed multilateral trading system through a ‘second track’ initiative that builds on what has worked well over the past 70 years, identifies what needs preserving and addresses areas that must be improved. This second track platform, to launch officially in October 2018, will host live debates among businesses, think tanks, and multilateral organisations to formulate concrete recommendations to feed into the intergovernmental ‘first track’ process.

The multilateral trading system has taken decades to build and would not have been possible without the enduring support and expertise of the global business community.

Our current aim of building a multilateral trading system that is fit for the 21st century and works for everyone is no less ambitious and will require input, knowledge and backing from all of society’s stakeholders.

ICC’s founders were referred to as the “Merchants of Peace” for recognising the powerful role trade plays in fostering peaceful relations between nations. Today, as the menace of a full-blown trade war grows ever nearer, the ICC calls on world leaders to work constructively with business to help set a new course for a sustainable and prosperous future.

John W.H. Denton AO is the Secretary General of the International Chamber of Commerce, the world’s largest and most representative business organisation.

b20argentina.info

IDENTITY PROTECTION WITHOUT COMPROMISE G e n e r a l i G l o b a l A s s i s t a n c e - I D P. c o m / G 2 0

B20 Executive Talk Series LEAD FEATURE

SPECIAL FEATURE_GCEL Authored by: Hon. Dr. h.c. Dirk Niebel

DIGITIZING SMEs IS A MUST The G20 Citizens - Defining the Digital Economy

A

cross the world, Small and Medium Enterprises (SMEs) are the main drivers of the global economy, providing up to 80% of employment in countries and comprising nearly 50% of the world’s GDP. Yet, these businesses are faced with numerous challenges to stay competitive, reduce costs, secure finance and insurance, as well as reach new markets.

In Germany alone, 99% of German businesses are SMEs providing nearly 60% of all jobs. These companies form a dynamic group providing products and services across all kinds of sectors. Therefore, if we are to strengthen and grow the economic base in Germany, and in the rest of the world, we have to support SMEs with innovative policies and tools to ensure their prosperity.

While globalization during the past 30 years has lifted many people out of extreme poverty, we still have much work ahead of us to create greater economic prosperity at every level of society. It is our responsibility to find new innovative ways to generate the 600 million jobs needed over the next 15 years. This sentiment is shared today by the G20 leaders through the establishment of the Digital Economy as a key policy directive towards achieving greater sustainable economic growth.

Hon. Dr. h.c. Dirk Niebel Federal Minister of Economic Cooperation & Development, Germany (2009-2013)

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During the past few years, numerous experts have provided their definition of the Digital Economy. From their own experiences and perspectives, they have devised several promising innovations towards creating greater efficiency and productivity capturing the headlines in the media we view every day. These innovations include Artificial Intelligence, Blockchain, and Robotics. While these themes within today’s digital era are important, we must focus our efforts in the areas where we can deliver the greatest positive impact.

It is now an imperative for public and private sector leaders around the world to re-envision the future of our global economy and to work together by embracing the Digital Economy to transform it into one that truly connects and serves us all.

Therefore, we must ask ourselves the following question: Where can we apply today’s technology in a holistic manner to deliver the required sustainable economic growth benefiting organizations of all types and sizes in today’s interdependent global economy?

To answer this question and address the ongoing economic challenges, we must focus our efforts on the tremendous global B2B marketplace in order to maximize on the power of today’s technology, delivering greater economic prosperity for all nations. This immense marketplace encompasses the real economy of manufacturing and agriculture, as well as the services industries that support them.

While the public sector aims to do what is best for their citizens, the real economy participants know best what kind of tools they need to be more competitive. Give entrepreneurs the right resources and they will create productive communities committed to business excellence, setting the foundation for a secure and prosperous future.

WE MUST FOCUS OUR EFFORTS TO DIGITIZE THE GLOBAL USD 150 TRILLION B2B MARKETPLACE.

The first step has begun. More than 90 G20 ministries, industry associations, academia and private sector experts have conducted the G20 Nations Case Study, known as the “Voice of the G20 Citizens”. This Case Study, involving comprehensive trade efficiency assessments based on what technology makes possible today, collected nearly 1.2 million data points through face to face interviews across 19 B2B industry clusters. The Case Study results concluded that the use of new digital tools within the B2B marketplace can produce a paragdim shift in the growth and efficiency of the G20 nations’ domestic and international trade, while creating millions of new jobs. Furthermore, 94.5% of the G20 real economy participants surveyed have defined and demand the Digital Economy Platform providing new digital tools for use within their global value chains, available at no cost to the end-user, to improve competitiveness at the ground level.

In Germany alone, the Case Study findings revealed that by digitizing its global value chains, Germany can reduce annual excess trade costs, increase trade and create millions of jobs by 2030. This will further strengthen Germany’s perennial top world ranking in trade efficiency and leadership as one of the largest exporters among the G20 Nations.

Recognizing the importance of a Digital Economy Platform, Germany’s largest SME association has committed to deploy the digital tools defined by its members in order to achieve greater economic integration among Germany’s trade partners.

The world’s leaders have long recognized the importance of “economic integration” › Buenos Aires. Argentina 2018 ❙ 75

B20 Executive Talk Series SPECIAL FEATURE_GCEL DIGITIZING SMEs IS A MUST Continued from page 75

› as a foundation to sustain global economic growth when rebalancing the world economy. Historically, the approach to economic integration has been dominated by preferential trade agreements, free trade areas, customs unions, common markets, and economic and monetary unions.

However, for real economic integration to achieve sustainable growth, the B2B participants that conduct commerce must play a central role. The more integrated our economies become, greater coordination is required between the respective B2B participants. In today’s fast-paced world, the B2B participants need to find each other quickly, make proper decisions to conduct transactions, secure financing and insurance, as well as implement efficient logistics to execute business transactions for the benefit of all parties.

Technology is a great conduit for connecting our government and business communities together, but by itself, it will not do the job. Otherwise, the Internet would have been sufficient, as it does provide a form of integration. The Internet has changed the face of entertainment, communications, and business for consumer trade, but it has not yet created the necessary economic integration environment connecting business-to-business and business-togovernment that the world requires.

So where does real economic integration start? Real economic integration starts with matching the needs of buyers and sellers of products and services, where this matching is predicated on the quality of information available to them, as well as its proper use for businesses to make the right decision at the right time.

Today’s world of information technology has moved forward to harness high quality big data, but the results have had their limitations.

There are two extremes of data quality; the lower extreme is the Non-Validated Data (NVD), provided by a single source without validation, and with a high degree of dependency on unsubstantiated behavior.

More than 90% of data in use today is based on NVD. The other extreme is information with Ultimate Data Quality (UDQ), generated from data entered into a system to perform real life actions, then continuously validated by multiple parties in the same pipeline. In the B2B market place, the logistics industry is the gold mine of high quality data which can empower the commerce, finance, and insurance industries to reach their full potential.

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The initial challenge to achieve optimal economic integration is to properly match buyers and sellers based on the products and services to be exchanged. Current B2C e-Commerce systems match buyers and sellers primarily based on “like and dislike” behavior, uncorroborated ratings, and highly reactive keyword searches.

However, the B2B marketplace has far more demanding requirements.

Once buyers and sellers find each other, it is then necessary for them to have the right information at the right time to maximize the probability of concluding the business transaction. Today’s business environment relies primarily on single source, non-validated data, resulting in a higher level of risk which often negates the completion of a potential business transaction.

For example, consider a global manufacturer that procures on a regular basis the high quality materials needed for making furniture. Its procurement officer may search for suppliers online and be presented with thousands of potential vendors. How can the buyer decide which supplier to choose and how can their integrity be validated? How can the buyer ensure the reliability of logistics on time delivery, and secure the required financing and insurance?

For professional buyers to make informed purchasing decisions, they must conduct significant due diligence to evaluate supplier proposals. This is a time consuming and rather subjective process due to the lack of available high quality data generated from the transactions in the normal course of business in real-time.

A Digital Economy Platform ecosystem represents a paradigm shift to resolve the inefficiencies in the way commerce is initiated and completed today. This ecosystem captures big data with UDQ through the use of Artificial Intelligence, Big Data Analytics, and Blockchain technologies across the global value chains within the B2B marketplace. Mission critical tools for the B2B participants are then delivered through thousands of business apps that are easily integrated across the e-Logistics, e-Commerce, e-Finance, e-Insurance, and e-Grants dimensions provided by the platform.

Utilizing the UDQ information with a high degree of veracity, this ecosystem can create specific behavioral and contextual

94.5% OF THE G20 REAL ECONOMY PARTICIPANTS HAVE COMMONLY DEFINED AND DEMAND A DIGITAL ECONOMY PLATFORM.

smart matching of buyers’ and sellers’ product and service attributes based on historic, real-time and planned commercial activities. Buyers and sellers can now efficiently find, and be found by, the right trade partners globally and continue the process to complete the intended business transaction.

A Digital Economy Platform, fueled by UDQ, also applies sophisticated algorithms to generate a dynamic scoring mechanism that rates the performance of a potential trade party. This scoring matrix rates product and service quality, probability of finance and insurance, reliability and dependability of logistics pipelines, as well as the level of integration of a trade party within the global value chains. All of the above “dynamic and smart information” are a must at the moment buyers and sellers evaluate each other to de-risk trade and dynamically facilitate proper decision making.

The foregoing will encourage actions to be taken with greater confidence and deliver unprecedented conversion ratios of seeing a product or service online to its acquisition, thereby delivering digitally enhanced efficiencies to the B2B participants.

Upon implementation of the Digital Economy Platform tools demanded by the real economy participants, we will then be able to achieve the required efficiency and transparency to de-risk doing business, reduce excess trade costs, and ease access to finance and insurance, thereby substantially growing the global economy. In all, the Digital Economy Platform will create the required real economic integration needed to generate more high-paying quality jobs, meeting the economic aspirations of our youth for generations to come.

Global experts believe that by maximizing on the power of today’s 21st century technology to digitize the B2B global value chains, we will integrate our b20argentina.info

economies more efficiently, leading us to a new wave of economic growth.

The innovation described herein has been embraced by more than 150 countries through their pan-regional organizations, 26 IGOs/ NGOs and the world’s most prominent firms that service more than 60% of the world’s GDP. These organizations have collectively confirmed that the digitization of our global value chains will have a large, tangible, and quantifiable impact on the global economy, delivering global market expansion and job creation resulting in sustained economic growth. This innovation encompasses defined goals, a roadmap to achieve the economic targets, the required tools for use on the roadmap, and the necessary global consensus to secure its success.

Since the Digital Economy involves trade and trade data which is of national security importance to all nations and businesses, not one organization, nor one country can deploy a global solution alone due to geopolitical, monopolistic, and data privacy concerns. Therefore, a global Digital Economy Platform must be deployed by a global trusted network involving all forms of organizations from the public, non-profit, and private sectors working in concert and capitalizing on each other’s capabilities and jurisdiction. This introduces an independent global monitoring mechanism ensuring rapid global deployment, while providing benefits to all participants at no cost to the end user.

Historically, innovation has been a driving force towards connecting and growing our societies. Now that the G20 Citizens have defined what the Digital Economy should look like, its implementation represents one of the largest and the most influential innovations in the past century, paving the way for greater economic prosperity that the world demands. ■

B20 Executive Talk Series LEAD FEATURE

SPECIAL FEATURE_GCEL DIGITIZING SMEs IS A MUST Continued from page 77

SMART DIGITAL TOOLS ARE A MUST TO

MAXIMIZE ON THE POWER OF BIG DATA from multiple touchpoints across the global value chains needs to be aggregated into information that SMEs around the world can benefit from, and that can be used to provide a smart scoring matrix to de-risk transactions and for the introduction of greater efficiency within the commerce, finance, insurance, and logistics industries.

The Smart Digital Scoring Tools These new digital tools provide a composite score of operational performance based on validated high quality data dynamically captured across the global B2B value chain transactions.

The composite performance score represents an aggregation of component scores related to the following 5-key “QFILI” attributes.

S

ince the advent of the internet in the 1970’s, information technology has been a major driver of change affecting most aspects of our daily lives. As digitized information-based environments are applied to global challenges, disruptive innovations have transformed industries and changed how we communicate, how we access information, and how we behave as consumers.

With the proliferation of data from the 23 billion internet connected devices worldwide, the challenge has shifted from the availability of information, to its reliability, usability, and authenticity. In the Business-to-Consumer space, algorithms monitoring consumer behavior are increasingly enabling suppliers and service providers to provide more customized services to target customers effectively and efficiently. Industries that are able to digitize information experience exponential growth from software-enhanced management of data, allowing for game-changing transformation benefiting consumers and suppliers alike.

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(Q) Quality of Product/Service: Assesses the user’s quality based on product, product components and company quality. The quality is verified through many factors including certifications, awards, longevity of the parties, and product performance.

In the Business-to-Business space, however, the proliferation of information has not produced the same efficiencies.

Experts estimate that 44 billion gigabytes of data are created per day and predict this to reach 463 billion gigabytes by 2025. Still, 90% of the data created is not structured and does not follow a predefined data model.

In fact, it has produced a cluttered environment where feedback is generated from subjective single-entry points harvested from like/dislike opinions of individuals.

Data from transactions across the value chain is scattered and uncorroborated; and the opportunity to optimize international trade from the digitization of information from business transactions remains elusive.

Here lies the true opportunity for sustainable global growth and for the re-balancing of the disparity between high, medium, and low-income countries. For the digitization of the global B2B marketplace that is necessary for it to achieve a paradigm shift, a new way of managing data needs to be developed and implemented. Reliable, timely, and authenticated data harvested

(F) Finance-ability of the Transaction: Measures the credit worthiness of a borrower and the financial institution’s ability to provide them with compliant and robust services.

(I) Insurability of the Transaction: Provides an objective method for risk evaluation and insurance coverage pricing based on various factors including claims history, country risk ratings, the ratings of the involved parties in the transaction, and the value of the goods.

(L) Logistics Reliability and Dependability: Measures the ability of the parties to deliver shipments on time on a regular basis including their resilience to meet future demand.

(I) Integration: Considers the ease, cost and time to integrate a trade partner into the supply chain.

The overall score can be viewed in a multi dimensional manner based on the priority of the attributes that are most important for a party to make the correct decisions in accordance with its business requirements. b20argentina.info

Through the implementation of a robust digitized scoring system for B2B participants based on the QFILI attributes, a new era of e-Commerce, e-Finance, e-Insurance and e-Logistics will trigger the expansion of the digital B2B marketplace through greater transparency and efficiency, similar to the transformation of B2C e- Commerce, and much more.

The Future of e-Commerce By utilizing the powerful prioritized combination of the multi-dimensional QFILI attributes, businesses can increase the conversion ratio from seeing a product/service on-line, to its selection and acquisition based on reliable information catered to their particular needs.

This capability can achieve several benefits including: Improvement in the quality of products/services, easier access to financing, greater insurance coverage, enhanced reliability and dependability of shipment delivery, and improved levels of integration among the global value chains. This is the starting point of real economic integration.

The Future of e-Finance The smart digital scoring tools also allow financial institutions to reduce underwriting risk, mitigate transactional risk, and lower collateral risk by providing dynamic visibility into the global value chains.

These tools also allow financial institutions to automatically build customized product offerings for potential customers. A financial institution can set pre-defined performance criteria of all participants involved with the movement of a shipment including buyers, sellers, points of loading/discharge, carriers, and logistics service providers. This criterion can then be simultaneously linked with credit enhancement providers such as import/export banks and trade finance credit insurers to determine the loan terms and conditions included in customized offers submitted to prospective customers.

A financial services provider can also monitor the performance of the loan offerings and loan portfolio though a dynamic dashboard to efficiently modify product offerings based on commodity, geography and loan terms, among other factors, to meet market penetration and loan portfolio performance objectives.

The Future of e-Insurance The QFILI attributes also provide the dynamic scoring level needed to mitigate trade insurance risk, minimize underwriter risk, maximize global coverage, model risk accumulation, and expedite claims processes.

Similar to the financial industry, insurance

Similar to the financial industry, insurance firms can also use the smart digital scoring tools to build customized product offerings that meet their risk criteria related to products, values, shipment modes, industries, and geographies, among others, thereby lowering costs and increasing revenues.

The information technology necessary for the creation of a global Digital Economy has been maturing since the advent of the internet.

While the Internet connected the world and revolutionized the B2C marketplace, it lacked the required engine to power the Digital Economy and deliver the sustainable economic boost that the world needs.

Now that the G20 Citizens have defined the required tools to digitize the global B2B marketplace, we can catalyze a new wave of innovation through a Digital Economy Platform that capitalizes on the use of optimized data from across the globe. â–

WITH THE PROLIFERATION OF DATA FROM THE 23 BILLION INTERNET CONNECTED DEVICES WORLDWIDE, THE CHALLENGE HAS SHIFTED FROM THE AVAILABILITY OF INFORMATION, TO ITS RELIABILITY, USABILITY, AND AUTHENTICITY.

Captain Samuel Salloum Co-Chairman, Global Coalition for Efficient Logistics (GCEL)

A GATEWAY TO

meaningful experiences S

un, crystal clear water, swaying palm trees and sugary white sands—is available in abundance in the Dominican Republic’s Cap Cana. The exclusive community on the island’s easternmost tip has become legendary for beachfront beauty, and some of the most desirable resort experiences in the Caribbean today. The premier vantage point from which to enjoy the sweet seduction of Cap Cana is the Relais &

Châteaux property Eden Roc at Cap Cana, a collection of luxury suites in a dreamy setting. Surrounded by lush greenery, awe-inspiring panoramas, verdant gardens and lagoon-style pools, this resort is one of the most sought-after spots in the entire region.

Discover a gateway to meaningful experiences, an intimate hideaway where senses are awakened, spirits are restored and celebrations are elevated.

EUROPEAN GLAMOUR, CARIBBEAN SCENE: THE SENSUAL ALLURE OF A TROPICAL ESCAPE At Eden Roc, the very private and posh accommodations are at the heart of the resort’s fundamental promise to its visitors: cherished intimacy for all. Thirty-four luxurious, stand-alone suites feature vaulted ceilings, floor-to-ceiling windows and generous interiors in addition of the twenty-six oceanfront suites and their romantic beachside settings.

Expansive verandas or patios and private

A GASTRONOMIC JOURNEY European glamour with a Caribbean twist: that phrase not only captures the spirit of the hotel, but of its signature fine dining restaurant, Mediterraneo. Italian-born Chef Gianluca Re Fraschini calls on his travel and cooking experiences in Europe to provide authentic flavors and an exceptional dining experience combining Continental techniques with the freshest Dominican produce and seafood to create some of the finest food in the Caribbean.

pools extend the living spaces and complete the tableau. When it’s time to leave the beautiful digs, a golf cart is at your disposal.

More like a private village than a hotel, the “European glamour with a Caribbean twist” resort has facades painted in vibrant colors inspired

by Dominican country houses. The architecture incorporates traditional elements and influences.

The dinner menu is inspired by Japanese and Peruvian techniques Robatayaki and Nikkei culinary fusion at its finest. With its show-stop ping bar, wine showcase and cigar cellar, BLUE is also the center of Eden Roc’s alluring nightlife.

Romantic dinners can also be enjoyed in the Garden of Eden, Eden Roc’s lush natural grotto, or in the cozy wine cellar, (La Cava).

For these occasions, allow Chef Re Fraschini to tailor a special menu just for you, with wine pairing from Mediterraneo’s master sommelier.

To dine at La Palapa at the Eden Roc Beach Club is to be surrounded by 360-degree views of the Caribbean on one side and the picturesque 18-hole Punta Espada golf course on the other.

Here, the spotlight is on seafood, and delectable red snapper is king. To savor it like the locals, ask for it boca chica style with a side of plantains.

The oceanfront BLUE Grill + Bar at the Eden Roc Beach Club serves an array of healthy, international dishes. Lunch on the grill terrace is casual; sample the rustic brick oven pizzas created by the Neapolitan pizzaiolo.

EVERYTHING YOU DESIRE FROM A WARM-WEATHER PARADISE If you can pull yourself away from your suite you’ll find on property a private Beach Club, an exceptional infinity swimming pool, the world-class Solaya Spa wellness facility offering luxury treatments based on the island’s native traditions and fragrances, and, nearby, a 100-foot cenote called Hoyo Azul.

Its intensely blue color is derived from the deeply pigmented minerals below. Named the Best Golf Course in the Caribbean and Mexico, intricate layout of the Jack Nicklaus Signature Punta Espada, engages golfers with breathtaking scenery of cliffs, beaches and waterfalls, while challenging them with every swing and putt.

You’re also steps from the marina and excursions to scenic Saona Island (sail in your private yacht and bring a chef along to create a lobster lunch on your own private beach) and Altos De Chavón, a replica of a 16th century medieval Italian artists’ village with an archaeological museum.

History aficionados can also visit the walled and cobblestoned historic area, the Zona Colonial of Santo Domingo one of the oldest cities in the Americas located only two-hours car ride away from Eden Roc at Cap Cana. Admire buildings from the 1500s, including Cathedral Santa María la Menor, the first cathedral built in the New World. Fitting for a place where heavenly native rum, chocolate and coffee scent the air.

The Dominican Republic is a collection of landscapes begging to be explored. Discover the Dominican Republic and Caribbean majestic from the sky and embark on a helicopter or a private jet tour direction Caribbean pristine beaches or cascading waterfalls. Unwind the Eden Roc way.

B20 Executive Talk Series LEAD FEATURE

Branded Story_ AkzoNobel Authored by: Pamela Phua

Smart Facades for a Sustainable Future

What are some of the most pressing challenges that we face today? ccording to the United Nations (UN) Chronicle, energy consumption and pollution are two critical issues faced by urban communities, which account for half of the humanity or 3.5 billion people.

About 60 to 80 % of the world’s energy, which is a dominant contributor to climate change, is consumed by cities. The air quality in cities has deteriorated to such an alarming level that about 92% of the world’s population breathe unsafe air and more than 7 million die annually, according to World Health Organization (WHO).

A

What can we do to change the situation?

In the “2030 Agenda for Sustainable Development”, United Nation has established 17 Sustainable Development Goals with a comprehensive list of targets to be achieved by 2030. Individual countries are expected 82 ❙ g20g7.com

to take ownership and establish national framework to implement the actions. As a leading global paints and coatings company with a strong commitment to sustainability, AkzoNobel supports these goals, which is in line with our purpose to create everyday essentials to make people’s lives more liveable and inspiring. We have been at the top of the Dow Jones Sustainability Index rankings for the fifth time in six years.

At AkzoNobel, we believe that we can address some of these challenges with the innovative solutions that we have developed. With a focus on India and China, we highlight the major problems faced by these two populous countries and the solutions that we can offer.

India While India’s economy continues to expand at the world’s fastest growth rate of about 7.5% annually, millions of its citizens are

exposed to increasingly unhealthy air.

The latest air quality report from the WHO in May 2018 has announced that the world’s top 10 most polluted cities all reside in India.

Residents in India’s capital, New Delhi, which has been ranked the sixth most polluted, are taking the brunt of the health crisis due to vehicle emissions and burning of crops and woods. The air has become so smoggy and severely toxic that Delhi’s government had to declare public health emergency and school closure last year. It also unveiled 26 new programmes with a budget of US$ 8.2 billion to clean its air with such initiatives as electric buses and vehicles, tree planting, switching from coal-fired to electric or gas ovens.

How can AkzoNobel help Indian cities combat pollution? We have developed an air-cleansing paint based on photocatalytic technology that can degrade major b20argentina.info

THE AIR QUALITY IN CITIES HAS DETERIORATED TO SUCH AN ALARMING LEVEL THAT ABOUT 92% OF THE WORLD’S POPULATION BREATHE UNSAFE AIR AND MORE THAN 7 MILLION DIE ANNUALLY, ACCORDING TO WORLD HEALTH ORGANIZATION (WHO).

atmospheric pollutants like nitrogen oxides and sulphur oxides. These gases not only pose health implications themselves but also contribute to the formation of PM2.5 particulate matter that can penetrate deep into lungs and bloodstream causing diseases such as stroke, heart disease, lung cancer and respiratory infections. With sunlight exposure and moisture, our paint will generate radicals that can decompose these pollutants.

A large-scale field trial is currently being planned to quantify the efficacy of our paint in improving the air quality in Delhi.

To help improve air quality in India through reduction of the emission of volatile organic compounds (VOC), we have launched our strategic programme called Waterway. Our aim is to drive the transition of solvent-based products currently offered in our portfolio for wood care and metal care applications to water-based products with equally

high quality and performance.

We can help to mitigate soil pollution in India by controlling the release of biocide used in our paints. Biocide is a film preservative added within the regulatory compliant amount in an exterior paint to help protect building facades against the growth of fungus and algae, which is especially important for tropical and subtropical climates in India. Conventional types of biocide may not be able to release effectively from the paint over its lifetime and they may also be washed off by rain and can contaminate the soil. Encapsulating the biocide allows for its controlled release at its optimum level, therefore safeguarding our paint for better durability in terms of film protection while minimizing the environmental impact due to soil pollution.

Our researchers also continuously strive to explore biocide-free or low-biocide solutions.

Public urination has been a major issue in India. The Government has launched a nationwide campaign called “Swachh Bharat Abhiyan” to promote public cleanliness. To address this problem, we have developed a superhydrophobic coating with extreme liquid repellency that can protect walls by resisting the adhesion of urine, spit and other stains.

Our product will be able to help transform and maintain cleanliness of many cities and towns across India, thus providing the communities with more liveable neighbourhoods and inspiring surroundings.

China According to the International Energy Agency (IEA), China has surpassed the United States as the world’s biggest energy consumer in 2009. This has definitely taken a toll on air quality due to China’s predominantly coal-based energy production. › Buenos Aires. Argentina 2018 ❙ 83

B20 Executive Talk Series LEAD FEATURE

Branded Story_ AkzoNobel

› Key major economic zones such as Beijing and Shanghai have been marred with pollution and notorious thick choking smog in recent years.

In China, buildings account for a large part of China’s energy consumption. In order to promote building energy conservation, the Chinese government has developed a sophisticated policy system in recent years.

These include building energy codes which state the minimum standards for the energy efficiency of building components such as envelope; heating, ventilation, air conditioning (HVAC), and the power system.

These codes are mandatory for residential and commercial buildings in urban areas, and voluntary for rural residential buildings but are promoted through incentives.

How is AkzoNobel going to contribute positively to better the country’s energy efficiency and adapt in this storm of policy changes? We approach this by providing solutions for suppressing heat outflow in

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winter with our Thermal Insulation Decorative Board systems and reducing the heat gain in the building in summer through our Keep Cool offerings.

Thermal Insulation Decorative Boards are prefabricated boards constructed in the factory setting where the insulation and decoration layers are assembled together.

These boards are made with a controlled quality unlike the traditional Exterior Insulation and Finish Systems (EIFS) which are highly subjected to the reliability and quality of workmanship. They can be easily secured on the exterior façade of a building just like a jigsaw puzzle with a smart system of bracket and screws. The system also incorporates Air-vent plug to prevent moisture built-up that leads to cracking and peeling issues we see in traditional insulation systems. Factory fabrications also allow us access to a much wider technology platform such as UV-curing systems and sol-gel processes, which would have been

prohibitive to use in conventional exterior wall paint. This solution essentially allows us to provide a better and higher quality alternative to building insulation and hence effective energy management.

Another contribution from AkzoNobel concerns the energy savings brought about by specialised coatings. Other than improving our existing Keep Cool offerings to chase the ever tighter standards, we have also extended our Keep Cool offerings to Texture products in China. Keep Cool coatings reflect heat by reflecting in Infra-Red (IR) and Near Infra-Red (NIR) radiation of the solar energy.

This is achieved by careful pigment management and the use of special IRreflective pigments. With less heat built-up on the building façade and less heat transfer to the inside of a building, less energy is then required to maintain a comfortable temperature. Based on the simulation results from external parties, energy savings are quite substantial.

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Beyond Innovation: People Proposing true and sustainable technical solutions is one aspect of our contribution.

We also firmly believe in improving everyday life through our Corporate Social Responsibility.

Giving back to communities is deeply rooted in AkzoNobel’s culture. Our Human Cities initiative is our commitment to regenerating and energizing urban communities across the world. We use our products and expertise to help cities deliver a stronger sense of community purpose, pride and happiness.

For instance our global “Let’s Colour” program has been revitalizing urban areas all over the world, with almost 70 million people benefiting from 2000 projects and 12000 volunteers. The 100th mural of the 100 ‘Let’s Colour Walls of Connection’, created by AkzoNobel and global peace movement MasterPeace, took place last November in a school in Badshahpur in India. The project transformed the lives of more than 5,000 children by getting them back to school and ensuring they continue their education and improve their grades.

AkzoNobel has also partnered with SOS Children’s Village to train the next generation of painters and drive local economic growth through painting training and business development knowledge, thus contributing employability of young people coming from a difficult background. This successful partnership has been rolled out in countries like Brazil, Nigeria, South Africa, Indonesia, and will be extended to up to 10 countries such as India in 2018. ■

GIVING BACK TO COMMUNITIES IS DEEPLY ROOTED IN AKZONOBEL’S CULTURE. OUR HUMAN CITIES INITIATIVE IS OUR COMMITMENT TO REGENERATING AND ENERGIZING URBAN COMMUNITIES ACROSS THE WORLD.

Pamela Phua has more than 20 years’ experience in Research, Development and Innovation (RD&I) in the coatings industry.

In her current role as Director of RD&I for AkzoNobel, she drives new technology development and product implementation across the South East, South Asia and Middle East regions.

Ms Phua was instrumental in setting up the global research and laboratory operations for AkzoNobel Decorative Paints (Global Exterior Wallpaint Expertise Group) in 2011. In her global capacity, Ms Phua implements the functional and product innovation strategy for Exterior Wallpaint.

She spearheads the RD&I functional excellence, standards and capability and the efficient delivery of processes as the approved Standards & Processes across the globe. Her efforts enabled AkzoNobel’s businesses to roll out new products and services across the region in a fast and coordinated manner, supported by an agile supply chain, efficient sourcing and robust quality control.

Some leading innovations launched

by Ms Phua and her team included interior and exterior emulsion paints such as Dulux Weathershield Powerflexx, Dulux Pentalite, Dulux Wash & Wear / Easyclean, and Dulux Catylac / Inspire. Her expertise and experience has been instrumental in the setting up of industry standards in Singapore.

She is the Technical Chairperson for the Singapore Paint Industry Association and a committee member in the Chemical Standards Council of Singapore.

She has helped to set up several Singapore Standards, including SS345, SS150, SS500 and SS494. She is an industry consultant to regulatory bodies such as Spring Singapore, Singapore Green Label, the Housing and Development Board, Singapore Green Building Council, National Environment Agency and the Singapore Institute of Architects. She is also an A*Star certified auditor for accredited testing laboratories in Singapore.

Pamela took part in various series of United Nation Climate Change Conferences, last being COP23 in Germany Bonn in 2017 where she shared innovative solutions to combat challenges around Climate change and contributing to developing smart cities for better tomorrow.

Contact: Pamela Phua T : +65 90279663 E : pamela.phua@akzonobel.com

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B20 Executive Talk Series LEAD FEATURE

Branded Story_The Ungasan Clifftop Resort

The Ungasan Clifftop Resort: Exclusivity Up High

I

mpressively perched high up on the cliffs of Bali’s Bukit peninsula, The Ungasan Clifftop Resort is an exclusive, all-villa destination on the Island of the Gods. A true masterpiece of boundary-pushing design, this cliff-edge resort teeters 50 metres high above the Indian Ocean, fronted by a spectacular collection of architecturally designed villas.

Comprised of 7 five-bedroom villas, The Ungasan is widely recognised as Bali’s most iconic clifftop resort. Panoramic views of vast ocean meet the absolute luxury of The Ungasan’s five-bedroom abodes, where spectacular infinity pools appear to defy gravity as they stretch out toward the distant horizon.

Each five-bedroom villa is set among 2,500 square-metres of manicured gardens, boasting 30 metres of stunning clifftop frontage that’s

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fringed by stylish lounges and pavilions.

These expansive outdoor living spaces seamlessly merge with contemporary, open-plan interiors, where five-star luxuries like al-fresco bathtubs and lounge terraces continue to blur the lines between indoor and outdoor living.

With privacy and exclusivity at the resort’s core, The Ungasan prides itself on its in-villa experiences, ensuring every guest lives life to the absolute fullest without stepping outside of their own private villa if they so choose.

In-villa indulgences range from five-star spa treatments in the comfort of open-air gardens, to gourmet dining experiences like group barbecues and poolside bites for celebratory occasions.

The gourmet offerings at The Ungasan Clifftop Resort have been expertly crafted

by acclaimed Australian chef James Viles, owner of the two-hatted Biota Dining in Bowral, New South Wales. This awardwinning chef has brought a wealth of international and local knowledge to The Ungasan’s world-class culinary offerings, particularly within the resort’s in-villa dining experiences, like the daily Morning Harvest breakfast offering and the optional in-villa Biota BBQ. Delivered fresh each day from The Ungasan Kitchen direct to the villas, every guest is treated to the Morning Harvest breakfast spread - a bountiful array of the finest homemade confectionery, pastries, conserves, spreads, cheeses and tropical fruits. Guests can also arrange the exceptional in-villa Biota BBQ; an optional dining experience ideal for clifftop get- togethers or special occasions,

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whereby fresh local produce is barbecued poolside and served up in utmost seclusion, overlooking the spectacular panorama.

Chef James Viles is also responsible for the refined cuisine at the resort’s signature restaurant, Selatan, serving a refined menu of pan-Asian cuisine. Yet perhaps his most famed culinary contribution at The Ungasan can be found on the seaside-inspired menu of Sundays Beach Club – the resort’s very own beachfront destination.

Beautifully hidden at the bottom of the cliffs and tucked away in a pristine white sand bay, Sundays Beach Club is the beating heart of The Ungasan. This multi awardwinning destination has helped shine an international light on the resort’s five-star offerings, drawing in a global audience of luxury aficionados and sun worshippers alike who share a mutual appreciation for private, beachfront hedonism.

Whilst Sundays Beach Club is open to the general public, villa guests staying at The Ungasan can enjoy complimentary VIP access to the beach club, including a breathtaking decent down the rugged cliff-face on the

THE GOURMET OFFERINGS AT THE UNGASAN CLIFFTOP RESORT HAVE BEEN EXPERTLY CRAFTED BY ACCLAIMED AUSTRALIAN CHEF JAMES VILES, OWNER OF THE TWO-HATTED BIOTA DINING IN BOWRAL, NEW SOUTH WALES.

resort’s own inclinator. As this open-air carriage reaches the powdery white sands, a sun-soaked day of beachfront extravagance awaits, from bespoke cocktails and sophisticated cuisine from Chef James Viles, to the fully -staffed sunbeds, water- sport attractions and evening bonfires that burn as the sun sets.

Complementing The Ungasan’s exclusive experiences and five-star destinations, is the resort’s Balinese hospitality. Centred around a “service from the heart” concept, the passionate team of private butlers and service staff are dedicated to curating a personalised experience for every guest. Be it a special family celebration, a corporate event or a

romantic couple’s escape, Bali’s most stunning clifftop resort is wholeheartedly complemented by exemplary service, firmly positioning The Ungasan at the forefront of Bali’s hospitality industry. ■

The Ungasan Clifftop Resort theungasan.com +62 811 942 1110 reservations@theungasan.com Jalan Pantai Selatan Gau, Ungasan 80362 Bali, Indonesia

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B20 Executive Talk Series LEAD FEATURE

Branded Story_Generali Global Assistance

Data Globalization Gives New Meaning to the Ever-Evolving Identity Theft Threat A Review of the Evolution of the Identity Protection Industry t’s 2003, and the United States Federal Trade Commission (FTC) has just released some scary findings about this new crime called identity theft. There’s not much you can do to prevent it, and its effects are alarming – the FTC reports that the average victim in the U.S. spends about $1,200 and 60 hours trying to fix their identity theft issue.1 At this time, almost any type of identity theft protection or prevention service is solely focused on credit or data monitoring – which, as we know today, is just a single component in safeguarding one’s identity. Indeed, the concept of identity theft was still in its infancy in the U.S., and, at a global level, it was barely being discussed.

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At this stage, fifteen years ago, Generali Global Assistance (GGA) took a different approach.

Being owned by the company that invented the concept of real-time care assistance over 50 years ago (Europ Assistance), providing compassionate assistance to people in times of need is in our DNA. Today, we remain a global provider of assistance services to people in the fields of health, home and family, automotive, and travel, helping thousands of companies protect their customers and employees from life’s difficulties. Thus, the protection and restoration of identities was a natural fit for us as we came to know and understand the devastating ramifications that identity theft can have on people’s lives and families.

Accordingly, we launched identity theft resolution services via a business to business (B2B) offering, becoming one of the first identity protection providers to focus on helping the person behind the data.

Monitoring services alone simply alert customers of suspected fraud incidents and stop there, leaving the victim to pick up the pieces and attempt to restore their identity on their own. As a company firmly rooted in the mantra “We care,” our goal was, and still is today, to go above and beyond for each one of our client’s customers. For those dealing with the aftermath of identity theft, we attend to the time-consuming and stressful tasks of contacting and following up with creditors, credit bureaus, law enforcement, and other third-parties on their behalf, while also providing compassionate assistance and expert advice to help put their mind at ease – something most other identity protection providers weren’t doing at the time and, frankly, some still struggle with today.

Nevertheless, identity protection as a consumer product was very much still emerging a decade and a half ago, and most people held a false sense of security that something so life-changing could never happen to them. It’s different though today, in that our current climate has almost normalized large-scale data breaches and compromised personal information.

Undeniably, awareness levels have increased since 2003 – and whether that’s good or bad is up to interpretation. What is certain is that the identity protection landscape has also evolved to keep up with the ever-advancing crimes of identity theft and fraud.

Today’s Identity Protection Services The need for identity protection across the board has become increasingly apparent, and, as a result, more and more players are entering the identity protection space. The current landscape is varied, with some companies monopolizing the direct-toconsumer market, others operating more behind the scenes in the B2B realm like GGA, and even major credit bureaus and credit card companies have found opportunity to capitalize on the growing industry. The types of services offered by these players also run the spectrum, with some merely tacking on complimentary credit or identity monitoring services to a core offering and others offering an entire suite of identity protection services that make up a more comprehensive program.

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THE MORE DEVICES THAT ASK US TO INPUT OUR DATA, CUSTOMIZE TO OUR PERSONAL PREFERENCE, AND ACCESS REMOTELY, THE MORE GATEWAYS THERE ARE TO IDENTITY THEFT. Today, GGA’s offerings have certainly expanded but are still firmly rooted in full-service resolution services. Between 2008 and 2014, we added identity monitoring and alerts, 3-bureau credit monitoring and alerts, and an Online Data Protection Suite with anti-keylogging and anti-phishing software.

In addition, GGA’s resolution team became Certified Identity Theft Risk Management Specialists (CITRMS) and FCRA-certified by the Consumer Data Industry Association. In 2016, we launched our most robust identity protection product yet – a 360° platform with a single, easy-to-use online dashboard – and we’ve since expanded our offering globally to also include smartphone protection with secured browser and keyboard. Today, GGA’s identity and digital protection product offering is pinned around four pillars: experience, solutions, technology, and service – none of which should be compromised.

We don’t offer our products and services simply because they’re popular – for us, it’s the result of consistent research and continual awareness of a need that continues to grow.

Looking back, we started offering identity protection services for a very simple reason: there was a genuine need to help people that wasn’t being fulfilled. Today, that need has evolved (e.g., IoT, data globalization, etc.) and become a global concern, and we’re leveraging our resources to address it.

Our offering has naturally evolved and advanced over the years – to better protect our customers – and we’re sure it will continue to change and evolve as the identity theft landscape will as well.

No matter what, our mission will always remain the same – to protect and help people.

The Future of the Identity Protection Space & Its Influencers The more devices that ask us to input our data, customize to our personal preference, and access remotely, the more gateways › Buenos Aires. Argentina 2018 ❙ 91

B20 Executive Talk Series LEAD FEATURE

Branded Story_Generali Global Assistance

› there are to identity theft. Indeed, the digitalization of even the most ordinary of objects has taken us to a place that’s more opportunistic than ever for identity thieves.

But it’s not all bad. Our highly-digitalized lives have afforded us opportunities and conveniences that some of the greatest engineers could have never fathomed several decades ago. Digital globalization has given power to small one-man shops, allowing them to compete globally and sell to quite literally anyone in the world.

RECOGNIZING THAT THERE ARE SOME THINGS CONSUMERS HAVE CONTROL OVER AND OTHERS THAT THEY DON’T, CONSUMERS MUST USE THEIR VOICES TO CREATE CHANGE.

With so much information being shared, downloaded, and accessed cross-continentally, there should be a global platform seeking identity and cyber protection for all. We’re still a long way from such an idealistic approach, but the European Union’s induction of the General Data Protection Regulation (GDPR) was a major step in the right direction. Having officially gone into effect on May 25, 2018, its goal is to fundamentally protect all EU citizens, no matter where they are in the world. Thus,

AT A GLANCE: GGA and the Identity Theft Landscape

2003-2005

2006

2007

2008

GGA launches identity theft services and adds 1 bureau credit monitoring services

TJX data breach of U.S., Puerto Rico, Canadian customer transaction data.

There were 45.6 million records stolen, making this the worst ever breach involving PII up to this point

UK-based financial company, Nationwide Building Society, has an unencrypted laptop stolen from a companyemployee that held the personal data of 11 million members

GGA adds identity monitoring services

California data breach law became effective (2003)

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the new data privacy regulation will apply to any company that does business with an EU citizen. As more countries start looking at data privacy and protection like this for their citizens, it won’t be such a big leap to start talking about personal identity protection for all.

With half of the world’s traded services delivered digitally,2 businesses are no longer confined to serving local customers; the world is their consumer now. And yet, today, most businesses abide by only their country’s (or, for those in the U.S., their state’s) legislation regarding data privacy and breach notification. Unfortunately, most laws are inadequate at best, leaving consumers’ identity and digital protection primarily their responsibility – even while it’s oftentimes out of their hands.

Recognizing that there are some things consumers have control over and others that they don’t, consumers must use their voices to create change. They can begin by putting increased pressure on their local legislators to encourage them to play a bigger role in putting more global regulations in place. And because every country has their own unique challenges in the identity protection realm, governments need to listen closely so that they can best meet their citizens’ needs.

Consumers should also feel empowered to force the companies that they do business with (locally and abroad) to provide more transparency into how their data is being protected.

Clearly though, data privacy and consumer protection isn’t going to change overnight, and we know it’s going to be an uphill battle – that’s why we’re doing our part too. At GGA, we recognize that education is a key piece in better protecting consumers; after all, they are their own best identity advocate.

Education is a key component in the products we offer, and we’re also present in the space

to help foster consumer education. By participating in and partnering with various identity-focused organizations such as the University of Texas Center for Identity and the Identity Theft Resource Center, and speaking at industry events, such as the U.S. Federal Trade Commission’s Conference on Identity Theft, we understand our responsibility to remain engaged in the industry so that we can, ultimately, help shape it for the better.

Additionally, GGA is continuously exploring new products and solutions to stay ahead of identity thieves. One of the most popular trends we’re seeing right now is the use of Blockchain technology, which essentially is a way to better protect and isolate data from potential hackers. We’re also seeing the use of biometrics becoming increasingly popular, particularly in consumer technology. As a means of identity validation, biometrics may be another great advancement in thwarting fraudsters.

GGA as a Global Player As a global company, we’re constantly keeping our finger on the pulse of the market to adapt and evolve with it. We’re in a unique position to help people and companies all over the world. It’s an advantage that we take seriously and will use to truly be a part of the growing challenge to provide identity and digital protection globally – which we know we can’t do alone. The identity protection space itself is still rapidly evolving and perhaps will always continue to do so.

Intrinsically tied to technology, there may be no end in sight – the identity theft problem, instead, will just expand, or morph, or develop, into different issues that are unknown to us today. For this reason, we are always looking ahead.

Today, we’re taking the lessons learned in the U.S. – where the issues have been

fast-tracked and the market now a bit more mature – and applying those lessons globally.

The U.S. identity protection market has, in a way, been reactive to the identity theft issues that have transpired over the last two decades. GGA has launched identity protection services in Canada and is in the process of launching across Europe and in India; these are unique products that meet each specific market’s identity protection needs, and, first and foremost, they’re proactively addressing the rising issues present in each country.

In the U.S., we’ve seen the identity protection industry go through many phases and stages, with different protection components getting different levels of attention throughout the 2000s. With data breaches now a mainstay in societies across the world – and so much information being made available to fraudsters – it’s only a matter of time until that manifests into larger issues for vast numbers of people. We predict this will ultimately put resolution services into the industry spotlight and when it does, resolution services will become necessary to participate in the global identity market as a true player. It is at that point that other companies will then follow suit, but we have been there all along providing caring, compassionate assistance – the foundation upon which our services are built.

Today, we’re exploring the future of identity from a global perspective while maintaining local considerations and keeping white-glove service and the “We care” mentality close to heart. We hope others follow us in that – sooner rather than later. ■ Resources 1 https://www.ftc.gov/sites/default/files/documents/ reports/federal-trade-commission-identity-theft-program/ synovatereport.pdf 2 https://hbr.org/2016/03/globalization-is-becomingmore-about-data-and-less-about-stuff

2009-2011

2012-2015

2016-Present

GGA add 3 bureau credit monitoring services and GGA Identity Resolutions Specialist become certified

GGA adds anti-phishing & anti-keylogging tools, enhanced identity monitoring services, and family plans

GGA launches new 360° identity protection services in the U.S., Canada, Europe and India

• Target is breached with 70 million U.S. and Canadian customers affected (2013)

GGA launches smartphone protection

• Year of the Breach: Korea Credit Bureau, AOL, eBay, UPS, Home Depot, Gmail, JPMorgan Chase, Sony Pictures Entertainment were all breached (2014)

• Alabama became the last U.S. state to enact data breach legislation, completing the nationwide patchwork of state data breach laws. (2018)

• Canadian Digital Privacy Act amends Personal Information Protection and Electronics Documents Act (PIPEDA) to include breach notification requirements (2015)

• NetEase data breach of 1.2 billion subscriber records in China (2017)

• Equifax data breach of 145+ million U.S. consumer records (2017) • EU’s GDPR is enacted (2018)

Buenos Aires. Argentina 2018 ❙ 93

100 km south of Munich. Tucked deep in the calm of the Bavarian Alps. Listen to the deafening sound of silence & rushing streams.

A Luxury Spa Retreat & Cultural Hideaway.

Relax in six separate spas & pools for adults & families. Practice Yoga, Pilates or Taiji. Sports Unlimited yearround. Edutainment for Kids.

Restaurants for gourmets & cosmopolitans.

Bookstore & concerts with great artists on the pulse of time.

schloss@elmau.de www.schloss-elmau.de Phone: +49 (0) 8823 18 0

B20 Executive Talk Series LEAD FEATURE

Branded Story_Liechtenstein Bankers Association Authored by: Simon Tribelhorn

A New Era: More Digital and More Sustainable Digitalisation and sustainability are currently dominating public debate and will transform the landscape in financial services matters dramatically.

We are clearly at the beginning of a new wave of globalisation where cooperation across industries, generations and physical borders will be key in order to overcome the challenges at stake.

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igitalisation is one of the hottest topics nowadays for politicians, the media, companies and the general public.

Customers are used to long data availability at all times. Their needs have completely changed as the new digital world has emerged. Already in the past, technology has been a key driver in the financial services sector for decades but digitalization based on new technologies such as cloud computing, big data analytics, artificial intelligence (AI), Distributed Ledger Technology (DLT) including blockchain, offers new dimensions and opportunities that could foster radical change in the financial sector. It is universally agreed that digitalisation will revolutionize the finance world, breaking up value chains and totally altering business models.

Digitalisation holds tremendous potential for many financial service providers for increasing efficiency, improving customer relationships and turning services into a customer experience. Regulators are struggling to keep up with the torrid pace of developments. The European Commission has responded to calls to fill the current regulatory gap. Its Fintech action plan published in March this year sets out a range of measures aiming to encourage and simplify the emergence of new solutions and to enable innovative business models to scale up, while increasing cyber-resilience, preserving the integrity of the financial system and helping the financial sector cope with the dramatic change and manage risks.

“Values” regain significance The other equally highly important issue increasingly occupying the financial sector industry is sustainability. Our society is facing major challenges from an environmental, social, technological and political perspective.

After the Paris Climate Agreement and the United Nations’ adoption of the Sustainable Development Goals (SDGs) in 2015 and its 17 goals for sustainable development the discussion on sustainability undoubtedly took on a new dimension. With the SDGs for the first time, combating poverty and sustainable development have been combined in a single agenda. It aims to achieve an all-round improvement of the future of our planet.

“No one shall be left behind,” emphasised the UN Secretary-General Ban Ki-moon.

The holistic dimension of this sustainability approach shows that new ways of thinking and acting are urgently necessary - a compromise between sustainability

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and development. In this context and nearly in parallel with the FinTech Action Plan, the European Commission presented its strategy for a more sustainable financial system, outlining the need for roughly 180 billion euros in additional investment in the EU alone to meet the agreed climate targets.

PWC has estimated the global annual investment required to meet the SDGs at a hefty 7 trillion US dollars. However, the true test is yet to come – implementation. The UN can only achieve these goals if all play their part: states, businesses, local communities, each individual. Governments are currently only spending one-seventh of this amount, most of which will have to come from the private sector.

To overcome the diverse challenges be it in social or ecological matters, we not only need a strong political system, but also businesses which act sustainably and make their own contribution with structural changes and technological innovations. We must all fulfill our responsibilities to a sustainable future.

In this process, the financial sector has significant responsibilities, and an important role in the necessary transformation and when allocating capital.

A question of allocation The mobilisation of private wealth is crucially important for reaching the sustainability goals. According to Deutsche Bank, the global wealth of private households amounted to a total of USD 250 trillion in 2015. Juxtaposed with this figure, the Brookings Institution expects that USD 5 to 7 trillion will be needed each year to finance the SDGs. The assets managed worldwide by institutional investors such as pension schemes, investment funds, insurers, etc, are about USD 83 trillion according to OECD estimates.

Both investments of private wealth and investments by institutional investors tend to have a long-term orientation, as do the sustainability goals themselves. Both could accordingly be employed worldwide to end hunger, ensure education, promote health, secure access to affordable and clean energy, support innovation and infrastructure projects, and fund climate protection.

Sufficient capital is available; it is merely a question of the right allocation.

The majority of institutional investors are convinced that sustainable investments increase risk-adjusted yield. Sustainable investments are increasingly important for private investors. However, there are still

constraints preventing relevant investment entities and private investors from integrating sustainability factors in their investment decision-making. In order to further disseminate sustainable investments, we need to raise awareness and acceptance of the fact that environmental and social returns do not mean renouncing economic returns. This erroneous belief is still rooted in the minds of investors and product providers – even though numerous studies have shown that sustainable investments even lead to better financial returns in the long run.

Next-Gen plays an important role Considering that 460 billionaires will be leaving some 2.1 trillion in wealth to the next generation within the next 20 years, it is clear that the evolution of financial sector toward greater sustainability requires great responsibility, not only on the part of financial intermediaries as creators and brokers of sustainable investment products but also among ‘high-net worth individuals’ (HNWIs), particularly of the younger generation. For that generation is less motivated by material wealth, being more driven by values and interest in changing the environment and society for the better. It is the same generation for whom use of digital technologies is a matter of course in everyday life. Digitalisation and sustainability are thus more than just trends, they are issue complexes which the financial firms absolutely have to come to grips with to survive in the marketplace in the longer term.

Neither is more pertinent than the other, for both will be substantially determining the industry agenda over the next several years.

This demonstrates that there is a need for action, information and education. The financial industry plays an essential role in this regard. It is apparent that to overcome these obstacles leadership at the top of every financial institution is needed, driving the change and accepting responsibility – for ourselves and for future generations. The ongoing digitalisation opens up new opportunities to tackle all these issues, be it having correct data available, everywhere at anytime, be it new educational tools and working models, but also to reach out to new generation clients via innovative channels.

Seize doesn’t matter The example of Liechtenstein – a financial centre in the heart of Europe with an international orientation – shows that

THE MOBILISATION OF PRIVATE WEALTH IS CRUCIALLY IMPORTANT FOR REACHING THE SUSTAINABILITY GOALS. ACCORDING TO DEUTSCHE BANK, THE GLOBAL WEALTH OF PRIVATE HOUSEHOLDS AMOUNTED TO A TOTAL OF USD 250 TRILLION IN 2015.

small national economies can make an important contribution to reaching the SDGs, as well as to stability and sustainability in general. With its 38,000 inhabitants, Liechtenstein offers the institutional framework for sustainable development: economic growth at a high level, low CO2 emissions, fast unbureaucratic channels to allow capable and adaptable behaviour. With these indicators alone, Liechtenstein has an advantage over larger economies in terms of initiating and realising sustainability. With its balanced, debt-free national budget and a AAA country rating Liechtenstein is one of the most stable global countries. The country has proven to be a reliable partner to the international community over the years. This can be seen in its participation in exchange of information, effective measures against money laundering and terrorist financing, and implementation of international regulations.

All this demonstrates that Liechtenstein is a small country that acts sustainably. With more than 1,300 non-profit foundations and many years of experience and expertise in wealth management, the Liechtenstein financial centre has the ideal preconditions for accepting a significant role in the responsible investments of assets and thus to serve as an important bridge between investors who want to invest their money in a meaningful way and the existing financing gap for sustainable investment. ■

Simon Tribelhorn, is CEO of the Liechtenstein Bankers Association.

Buenos Aires. Argentina 2018 ❙ 97

B20 Executive Talk Series LEAD FEATURE

Branded Story_Charlevoix

Welcome to Charlevoix!

© Tourisme Charlevoix, Steve Deschênes

C

harlevoix is like no place else on earth, with its breathtaking mountain vistas, unique natural habitats and fascinating history that is intimately linked with the majestic St. Lawrence River. Boasting an exceptional terroir, the region’s charming villages are home to a people with a singular fondness for the good life. Everything sets Charlevoix apart – even its climate! From sea to taiga, an extraordinary experience awaits you at the heart of the Charlevoix Biosphere Reserve.

Petite-Rivière-Saint-François – the gateway to Charlevoix This village is nestled along a narrow six-kilometre strip of land between the St. Lawrence River and the mountains. Dating back to 1675, Petite-Rivière-Saint-François is the site of the region’s first modern-day settlement. Without a doubt, this is the best place to start your trip.

For nature lovers, it’s hard to beat the Massif de Charlevoix, which boasts the 98 ❙ g20g7.com

highest vertical drop east of the Canadian Rockies. Here, winter enthusiasts have a wide range of outdoor activities to choose from, including the famous sled run! The explorer in you will love the Sentier des Caps trails, a main feature of Petite-Rivière. Once the snow falls, the hiking paths transform into a winter paradise of frosted fir trees, offering snowshoers and cross-country skiers extraordinary panoramic views.

Baie-Saint-Paul – at your service Baie-Saint-Paul is a destination in and of itself. Beautifully integrated with its natural environment, this remarkable city is sure to impress you with its brightly coloured centennial homes and undeniable charm.

Amazingly, this town of 7,000 inhabitants was named the Cultural Capital of Canada in 2007! But it won’t take you long to understand why: to use a current buzz phrase, Baie-Saint-Paul is the archetypal organic city, whose history, heritage and architecture

are all perfectly in tune with its surroundings.

Baie-Saint-Paul has many more painters, sculptors and artisans than one might expect for its size. But there’s a good reason for this: the city offers the perfect environment to pursue a creative calling. Its natural setting, inspiring landscapes and exceptional quality of light are a magnet for artists – so much so that Saint-Jean-Baptiste Street now boasts the highest concentration of art galleries in the country. These establishments vie with each other in an art scene that goes well beyond pictorial representations of the surrounding nature. In fact, it was here that Cirque du Soleil was born in 1982 as a group of street performers, known then as the Club de talons hauts (high heels club). Strolling through the city centre, visitors can admire public art works as they sample the wares of regional chocolate makers and explore unique local shops such as the Shamâne soap boutique and Charlevoix Pure Laine weavers. Here, creativity reigns supreme! b20argentina.info

© Rêves d’automne - Festival de peinture

BAIE-SAINT-PAUL IS A DESTINATION IN AND OF ITSELF. BEAUTIFULLY INTEGRATED WITH ITS NATURAL ENVIRONMENT, THIS REMARKABLE CITY IS SURE TO IMPRESS YOU WITH ITS BRIGHTLY COLOURED CENTENNIAL HOMES AND UNDENIABLE CHARM.

© Tourisme Charlevoix, Caroline Perron

Baie-Saint-Paul has been so successful in fanning the flames of art that it has become a de facto cultural capital. The Museum of Contemporary Art organizes internationally renowned exhibitions and events, including the popular Symposium of Contemporary Art, which each year showcases 12 visual artists and their creative processes. Among BaieSaint Paul’s many cultural events, you won’t want to miss Le Festif! music festival and the dazzling celebration of colour that is the Rêves d’automne painting festival.

mountain, peak and valley, rock and vegetation.

It’s hard to resist the call of the mountaintops as they recede ever farther into the distance.

But just how far can you go? As far as your feet – and hiking boots – will take you! In summer or winter, you can continue your adventure along one of Québec’s most beautiful natural paths, the legendary Traversée de Charlevoix. This 105-kilometre trail between Saint-Urbain and Mont Grand-Fonds offers the ultimate backcountry experience.

Mountain Road Get ready for a few surprises and some friendly encounters as you discover the food producers along the top of routes 138 and 381. Here you’ll find an abundance of local products with which to build your own picnic basket or simply enjoy along the drive!

Mountain Road’s elevation offers some of the best views of Charlevoix’s breathtaking landscapes. You’ll be astonished by the surreal interplay between river and

St. Lawrence Route This road is a bit easy to miss the first time, but once you discover it you’ll readily find your way back! The St. Lawrence Route’s appeal lies in its unique mix of familiar comforts and unexpected surprises. You can take a mere 40 minutes to drive the short (and sometimes bumpy!) 58 kilometres from Baie-Saint-Paul to La Malbaie, enjoying spectacular river views along the way. But if you opt for a more leisurely pace, that’s when

the magic happens! Don’t let its unassuming name fool you: the celebrated St. Lawrence Route is considered one of the most beautiful and panoramic roads in eastern North America.

Route 362 could also be called the “Cultural Highway”. With each mile, you’ll travel deeper into the fascinating history, know-how and traditions of the farming communities that are still shaping the region today. Be sure to stop in the village of Saint-Joseph-de-la-Rive, a true cultural gem.

Then, follow the road to the ferry and take a ride to the Isle-aux-Coudres, where you can sample cider at Vergers Pedneault or explore the famous flour mills. If you decide to stay on the mainland, drop by the Papeterie Saint-Gilles for some handcrafted paper products, or spend an afternoon at the Charlevoix Maritime Museum and tour its schooners and shipyard.

Saint-Irénée – picturesque by nature It’s impossible not to stop at Saint-Irénée’s famous Jetée des Capelans pier, with its eye-catching red buoy and anchor embedded in the ground. During the winter holidays, the site becomes aglow with a captivating display of multi-coloured lights. Once you’ve crossed the railway tracks, there’s nothing separating you from the St. Lawrence. Winter visitors can catch sight of immense ships travelling up and down the river beyond the cape, against the backdrop of an Arctic-hued lunar landscape.

During the summer, Saint-Irénée’s sandy beach is one of the most beautiful and popular in Québec – and you can even go horseback riding! Charlevoix loves its beaches, and Route 362 passes alongside many notable examples as it follows the shoreline all the way to Cap-aux-Oies.

La Malbaie – so much to offer La Malbaie is the perfect jumping-off place for the region, with water and mountain activities within reach all year long. From here, you can easily arrange for a tour of Hautes-Gorges-de-la-Rivière-Malbaie Park by snowmobile or dog sled, or hit the slopes and trails at Mont Grand-Fonds ski resort.

But it’s La Malbaie’s hotel and entertainment offerings that are its true calling card. The Fairmont Le Manoir Richelieu is worth the trip alone, with four restaurants featuring locally sourced products, an indoor/outdoor spa and a multi-award-winning 27-hole golf course. Speaking of restaurants, the area’s Flavour Trail offers foodies the ultimate farm-to-table experience. › Buenos Aires. Argentina 2018 ❙ 99

B20 Executive Talk Series LEAD FEATURE

Branded Story_Charlevoix

© Tourisme Charlevoix, Caroline Perron

› The Trail includes four inns between Saint-Irénée and Cap-à-l’Aigle, in addition to the Manoir Richelieu itself. There is no shortage of opportunities to indulge your inner gourmet in and around La Malbaie!

No visit to La Malbaie would be complete without a trip to the famous casino. It’s much more than your typical gambling establishment, offering a wide variety of shows, concerts and activities that perfectly complement the local scene. One of the casino’s must-see events – and no doubt the most spectacular – is Ode à l’hiver (ode to winter), a music and fireworks extravaganza set against the backdrop of the beautiful Pointe-au-Pic wharf.

From river to sea Once you pass La Malbaie, the St. Lawrence slowly starts to surrender to the Atlantic Ocean. The air suddenly changes, becoming more and more saturated with sea spray, and on windy days you can even taste the salt on your lips!

Port-au-Persil – pure magic The Association des plus beaux villages du Québec (Most Beautiful Villages of Québec) has four members in Charlevoix; of these, Saint-Siméon and Port-au-Persil hamlet are arguably the most stunning. Head up the road to check out the donkeys at the Ferme de l’Âne du Saint-Laurent. Keep an eye out here for one of the most beautiful views of the St. Lawrence! A short drive later, you’ll find yourself crossing a small stream, signalling your arrival at Port-au-Persil. In summer and winter alike, visitors flock to the pier to admire the white McLaren Chapel and the colourful houses that dot the cove. Words can’t describe the feelings evoked by the beautiful views on display here, where the 100 ❙ g20g7.com

© Fairmont Le Manoir Richelieu

river meets the horizon. The effect is even more striking in winter, when the sun breaks through the wind-swept snow clouds and mist rolls over the jagged ice on the frozen St. Lawrence.

Baie-des-Rochers – a well-kept secret Located directly across from Île aux Lièvres, Saint-Siméon is also the gateway to the beautiful Baie-des-Rochers Park. This municipal park offers three exceptional hiking paths, including the Anse de Sable trail which starts where the road ends at Baie-des-Rochers’ quay. Then again, you might choose to arrive by water instead, following a two-day kayak trip from Cap-àl’Aigle. Baie-des-Rochers offers the adventure of a lifetime. Here, you’re at the edge of the Saguenay-St. Lawrence Marine Park, so chances are good you’ll cross paths with a few seals – and maybe even whale!

Baie-Sainte-Catherine – a calm retreat The most striking thing about Baie SaintCatherine is its utter tranquility. Located in the heart of the Saguenay-St. Lawrence Marine Park, it’s the last village before the ferry to Tadoussac and, further east, the mythical North Shore.

Here, the marine biodiversity is unlike anywhere else on the planet. And exploring the waters of the St. Lawrence and the Marine Park is the best way to discover it. You have a wide range of options to choose from: if you prefer to remain above water, you can go kayaking, take a Zodiac, or board a whalewatching boat. But if you’re feeling more adventurous, you can try diving in the unique, cold saltwater environment of the St. Lawrence Estuary and Saguenay Fjord.

Isle-aux-Coudres – full of surprises There’s something fascinating about Isle-auxCoudres. Although this tiny island appears rather peaceful at first glance, it plays host to a dizzying array of sports and cultural events, gastronomical experiences and holiday activities.

Upon disembarking from the Saint-Josephde-la-Rive ferry, there are two things you should know. First, the islanders’ nickname – Marsouins – pays homage to their beluga fishing heritage. Second, it’s possible to explore the 23-kilometre island entirely on a bike. But by the time you leave, you’ll have made many more discoveries along the way.

The island has not one but two economuseums, both of which bear the imprint of the surrounding terroir and reflect the rich local history. The first museum is not far from the pier as you arrive and can be visited on foot or bicycle; this is the Cidrerie et Vergers Pedneault, where you can go apple picking in season. The second, the Moulins de l’Isle-aux-Coudres, immerses visitors in the world of milling and traditional flour-making.

After visiting these two must-see attractions, be sure to leave room for pie at the Boulangerie Bouchard, where the signature pâté croche (a savoury meat turnover) will no doubt tempt your taste buds.

Isle-aux-Coudres offers a number of beautiful walks with exceptional panoramic views of the St. Lawrence. A good example can be found at the Parc de la Roche à Caya (Caya’s Rock), which features an interpretation trail that takes visitors alongside a series of beaches and sand bars. At Pointe-de-l’Islet, you can clamber over the coastal granitic rocks at low tide amid refreshing sea spray.

Don’t be surprised if you see a few large, multi-coloured sails zigzagging across the sky – Isle-aux-Coudres is one of Québec’s most popular kitesurfing destinations. In winter, the main event is still La Grande Traversée, a thrilling canoe race across the ice between Isle-aux-Coudres and Saint-Joseph-de-la-Rive.

The road back As you cross back to the mainland, take some time to enjoy the exceptional view of Mount Éboulements, the site of an ancient meteorite impact that shaped the region some 400 million years ago. By all measures an historic event – just like the 2018 G7 Summit.

Although your visit to Charlevoix may be winding down, the memories you’ve made will last a lifetime, as will the desire to come back again! ■ b20argentina.info

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