When I return to India I am always amazed at just how much is happening. There is no such thing as a slow news day, being in India is always exciting.
Right now India is growing and is going to continue growing at about 7%. The RBI Governor is equally confident that inflation will slow over the course of the year. But it is the businesses that are driving India’s growth, new and young Entrepreneurs, IPOs and numerous mergers and acquisitions are keeping the Economy moving. However, big business continues to worry about the cost of borrowing and likely power shortages and the delays in policy decisions that can make this worse. On a separate note, one of the things Indian business can be proud of is the number of women in high level positions, particularly in the Banking and financial services sector, many other countries are still striving to accomplish this.
In my view there are 2 issues haunting India, poverty and the lack of a perceived solution.
India is blessed with many self motivated individuals that are willing to dedicate their time and money to changing the lives of the poorest in society. However despite successful grass route initiatives a large scale political solution to poverty seems a long way off. There is lots of political and social debate but the state of politics at the moment is not helping with quick decision making or long term solutions.
Similarly in the field of Anti-Corruption, there is a strong civil society lead campaign to make democracy more participatory and to help reduce corruption by attracting more able candidates. Again this is being driven by successful individuals including NRIs rather than the political classes.
My final observation, the more I travel in India the more impressed I am at how unimportant caste and religion are becoming across society. They no longer play a role in most of the interactions you have in both the Cities and rural areas. However in political discussions and across the media there is a huge amount of time dedicated to it. I do wonder if this energy was spent on the wider poverty issue there might be more progress.
None the less, India is still a truly vibrant and emerging nation that is a beacon for democracy and economic growth.
Tuesday, 31 January 2012
Tuesday, 10 January 2012
Commonwealth Growth and the UK
2012 has started with the same economic uncertainty that 2011 ended with and the UK needs to look for Partners around the world that are growing fast that can supplement the UKs existing relationships in Europe and US. The Commonwealth’s emerging markets are the obvious choice, our pre-existing relationships make doing business together easier and similar institutions and business methods can bring the cost of doing business down by up to 20%. Most Commonwealth Countries will grow at over 5% this year and all represent colossal opportunities for British companies.
Historically, Britain used to count countries such as New Zealand, India, Australia, Singapore and Canada among its leading trading partners.
Since joining the European single market, Germany, France, Holland and Belgium have assumed far greater importance to us while only five Commonwealth countries struggle to make it onto the list of top 25 export destinations.
However times could be changing. The latest overseas trade statistics show the biggest increase in exports are to our Commonwealth partners and if trends continue they are set to play a far more important part in our economic life.
In the 12 months up to the end of September our exports to India – roaring ahead with 9% growth – increased by a whopping 33.5% compared with the same period a year earlier.
Exports to Canada jumped 18.3% in the same period and those to Australia were up 30% while those to South Africa rose by 31%.
These are good improvements but there is massive potential in the Commonwealth and Britain should be at the forefront taking advantage of it.
Historically, Britain used to count countries such as New Zealand, India, Australia, Singapore and Canada among its leading trading partners.
Since joining the European single market, Germany, France, Holland and Belgium have assumed far greater importance to us while only five Commonwealth countries struggle to make it onto the list of top 25 export destinations.
However times could be changing. The latest overseas trade statistics show the biggest increase in exports are to our Commonwealth partners and if trends continue they are set to play a far more important part in our economic life.
In the 12 months up to the end of September our exports to India – roaring ahead with 9% growth – increased by a whopping 33.5% compared with the same period a year earlier.
Exports to Canada jumped 18.3% in the same period and those to Australia were up 30% while those to South Africa rose by 31%.
These are good improvements but there is massive potential in the Commonwealth and Britain should be at the forefront taking advantage of it.
Wednesday, 21 December 2011
2011
2011 was a unique year for CBC; we started with year with a renewed focus in Infrastructure, particularly Power which is critical for most of the Commonwealth’s countries.
In February we held the first Commonwealth Ministerial Power Summit that build on our work with the Nigerian Government on the Power sector privatisation plans and brought together stakeholders in the Power Sector from India, the Caribbean and Africa.
We have held Country Investment Forum’s in Namibia and Zambia hosted by the respective Heads of Government and Regional Forums focusing on Infrastructure in SADC, EAC and the Caribbean. However the highlight of the year was the Commonwealth Business Forum held in Perth alongside CHOGM. The Forum was the biggest we have ever held, bringing together 16 Heads of Government and 1400 business leaders from 70 countries across the Commonwealth and beyond.
We are proud of what we have achieved over the last year; we have seen considerable investment in Infrastructure particularly power and Transport. Additionally, this year has seen large investments in the Mining sectors of Nigeria, Namibia, and Mozambique. In Oil and Gas, investment into Nigeria, Uganda and Trinidad and Tobago, interestingly there have been high levels of south-south investment in this sector.
The Commonwealth Business Forum alone resulted in nearly $10 billion invested in Africa from Australian Companies. But a true highlight of the year, and a real indication of how much the world has changed over the last decade that CBC has been operating, was introducing a Tanzanian businessman to the Prime Minister of Australia as the latest investor in her countries Mining Industry.
I'll also take the chance to wish you all a Merry Christmas and a Happy New Year
In February we held the first Commonwealth Ministerial Power Summit that build on our work with the Nigerian Government on the Power sector privatisation plans and brought together stakeholders in the Power Sector from India, the Caribbean and Africa.
We have held Country Investment Forum’s in Namibia and Zambia hosted by the respective Heads of Government and Regional Forums focusing on Infrastructure in SADC, EAC and the Caribbean. However the highlight of the year was the Commonwealth Business Forum held in Perth alongside CHOGM. The Forum was the biggest we have ever held, bringing together 16 Heads of Government and 1400 business leaders from 70 countries across the Commonwealth and beyond.
We are proud of what we have achieved over the last year; we have seen considerable investment in Infrastructure particularly power and Transport. Additionally, this year has seen large investments in the Mining sectors of Nigeria, Namibia, and Mozambique. In Oil and Gas, investment into Nigeria, Uganda and Trinidad and Tobago, interestingly there have been high levels of south-south investment in this sector.
The Commonwealth Business Forum alone resulted in nearly $10 billion invested in Africa from Australian Companies. But a true highlight of the year, and a real indication of how much the world has changed over the last decade that CBC has been operating, was introducing a Tanzanian businessman to the Prime Minister of Australia as the latest investor in her countries Mining Industry.
I'll also take the chance to wish you all a Merry Christmas and a Happy New Year
Thursday, 24 November 2011
India and the UK
India and the UK have a long established partnership that manifests in many ways; the links between our 2 countries are strong and healthy and there is much room to grow.
In 2010, bilateral trade between the UK and India grew by 20%, bringing the total to £13 billion. UK goods exports to India grew by 37% and goods imports from India rose by 27%. However, despite an overall growth in exports from the UK, the country’s comparative position has been slipping. In 2005 the UK was the 5th largest exporter to India, whereas the UK is now the 18th largest exporter. India is the 13th largest export market for the UK, while the UK is India’s 5th largest export market, accounting for 3.6% of all India’s exports. There is a general view that the relationship is under –utilised.
The potential for growth in trade and investment between the UK and India is huge as reflected by Indian Prime Minister Manmohan Singh when declaring last year that the 2 countries ‘should aim at the doubling of our bilateral trade turnover in the next five years’. However as the British Prime Minister David Cameron summed it up while in India ‘we cannot rely on sentiment and our shared history’ to make this happen.
1) Firstly, UK companies operating in India
2) Secondly, Indian Companies that use the UK as a base to raise capital and to operate abroad
3) Thirdly, related to the Second point, but Indian companies that operate in Britain, but are fully engaged with the UK’s economy.
Britain in India
British Business has a strong presence in India and has for many years. Many of the UK’s big names are present, Arup, Mott Macdonald, Serco, Amec, JCB and Unilever.
The success of the expanding Indian economy is widely acknowledged by UK investors. The most recent being the set up of ‘India Gas Solutions’ by BP and Reliance Industries in a $7.2billion investment focused on global sourcing and marketing of natural gas in India. This is one of the largest ever foreign investments into India and clearly demonstrates the continuing importance of each country to the other.
As access to India’s services sector grows, I have absolutely no doubt that the UK will jump up the league table of bilateral trade and investment flows almost overnight. The India-EU trade pact that is reportedly to be completed in the New Year should help with this.
India in the UK
Of all the Indian Companies operating in the European Union there are more in the UK than the other 26 EU nations combined. The London Stock exchange is host to 31 listed companies, 20 more than New York, and many more than Singapore and Hong Kong. Most of the Indian companies operating here do so to take advantage of the City of London as a financial Hub, as an access point to Europe and as a Geographical bridge between the East and the West. I hope this will remain the case in the future.
Essar Energy is a good example of a fast growing company that used London in this way; they raised US$2 billion through an initial public offering in May 2010.
I believe that if we want such partnerships between India and the UK to grow and strengthen, then the City of London’s pre-eminence must be protected. With regards to the proposed ‘Tobin Tax’, the UK’s strong stance against it is sensible. If the British Government gives an inch by way of the financial services tax they will lose a mile in international business.
The Second Category of Indian Company operating in the UK are the fully engaged ones – like TATA.
Tata is now the UK’s biggest manufacturer, with almost 40,000 workers. When including Tata's service industries, such as consultancy, the Company is the largest private sector employer in the UK.
This is a Model that can be especially fruitful for both countries. Key to ensuring this is converting the Indian Companies that are in London to take advantage of the City into fully integrated Companies along the Tata Model.
There is also great scope for synergy with high end engineering design and mass marketing. It is what James Dyson did in China, but the only problem is that Dyson products are now made in China without any involvement from Dyson due to weak IP regulation. This would not happen in India.
Tata has demonstrated how profitable working with a pre-existing British firm can be by buying into existing brands. Let the British design and the Indians scale up.
In reality, India and the UK have an existing partnership that will continue to grow slowly on its own, but if we want to turn it into a true 21st Century Partnership it requires a catalytic intervention from Governments and the private sector. The ‘sea change’ that both Governments called for during David Cameron’s visit to India last year will not happen unless the relationship is managed and developed actively. I would like to see more direct involvement from top Indian and British business leaders.
In 2010, bilateral trade between the UK and India grew by 20%, bringing the total to £13 billion. UK goods exports to India grew by 37% and goods imports from India rose by 27%. However, despite an overall growth in exports from the UK, the country’s comparative position has been slipping. In 2005 the UK was the 5th largest exporter to India, whereas the UK is now the 18th largest exporter. India is the 13th largest export market for the UK, while the UK is India’s 5th largest export market, accounting for 3.6% of all India’s exports. There is a general view that the relationship is under –utilised.
The potential for growth in trade and investment between the UK and India is huge as reflected by Indian Prime Minister Manmohan Singh when declaring last year that the 2 countries ‘should aim at the doubling of our bilateral trade turnover in the next five years’. However as the British Prime Minister David Cameron summed it up while in India ‘we cannot rely on sentiment and our shared history’ to make this happen.
1) Firstly, UK companies operating in India
2) Secondly, Indian Companies that use the UK as a base to raise capital and to operate abroad
3) Thirdly, related to the Second point, but Indian companies that operate in Britain, but are fully engaged with the UK’s economy.
Britain in India
British Business has a strong presence in India and has for many years. Many of the UK’s big names are present, Arup, Mott Macdonald, Serco, Amec, JCB and Unilever.
The success of the expanding Indian economy is widely acknowledged by UK investors. The most recent being the set up of ‘India Gas Solutions’ by BP and Reliance Industries in a $7.2billion investment focused on global sourcing and marketing of natural gas in India. This is one of the largest ever foreign investments into India and clearly demonstrates the continuing importance of each country to the other.
As access to India’s services sector grows, I have absolutely no doubt that the UK will jump up the league table of bilateral trade and investment flows almost overnight. The India-EU trade pact that is reportedly to be completed in the New Year should help with this.
India in the UK
Of all the Indian Companies operating in the European Union there are more in the UK than the other 26 EU nations combined. The London Stock exchange is host to 31 listed companies, 20 more than New York, and many more than Singapore and Hong Kong. Most of the Indian companies operating here do so to take advantage of the City of London as a financial Hub, as an access point to Europe and as a Geographical bridge between the East and the West. I hope this will remain the case in the future.
Essar Energy is a good example of a fast growing company that used London in this way; they raised US$2 billion through an initial public offering in May 2010.
I believe that if we want such partnerships between India and the UK to grow and strengthen, then the City of London’s pre-eminence must be protected. With regards to the proposed ‘Tobin Tax’, the UK’s strong stance against it is sensible. If the British Government gives an inch by way of the financial services tax they will lose a mile in international business.
The Second Category of Indian Company operating in the UK are the fully engaged ones – like TATA.
Tata is now the UK’s biggest manufacturer, with almost 40,000 workers. When including Tata's service industries, such as consultancy, the Company is the largest private sector employer in the UK.
This is a Model that can be especially fruitful for both countries. Key to ensuring this is converting the Indian Companies that are in London to take advantage of the City into fully integrated Companies along the Tata Model.
There is also great scope for synergy with high end engineering design and mass marketing. It is what James Dyson did in China, but the only problem is that Dyson products are now made in China without any involvement from Dyson due to weak IP regulation. This would not happen in India.
Tata has demonstrated how profitable working with a pre-existing British firm can be by buying into existing brands. Let the British design and the Indians scale up.
In reality, India and the UK have an existing partnership that will continue to grow slowly on its own, but if we want to turn it into a true 21st Century Partnership it requires a catalytic intervention from Governments and the private sector. The ‘sea change’ that both Governments called for during David Cameron’s visit to India last year will not happen unless the relationship is managed and developed actively. I would like to see more direct involvement from top Indian and British business leaders.
Saturday, 29 October 2011
Commonwealth Business Forum 2011
Commonwealth Business Forum 2011
Perth, Australia, 25th -27th October 2011
Partnering for Global Growth: The Commonwealth, the Indian Ocean and the Pacific Rim
Communiqué and Report to Heads of Government (CHOGM)
The New Commonwealth
This has been the biggest and most vibrant Commonwealth Business Forum ever. Over 1400 business and government leaders from 54 countries participated over the three days, including 16 Heads of Government. 150 global business leaders and experts addressed the Forum and we held 20 country/state investment windows, including 6 led by Heads.
The CBF is a growing part of the CHOGM experience, evidence that trade, investment and economic partnerships are now part of the lifeblood of the new Commonwealth. In the words of Australia’s leading financial title, “a new kind of Commonwealth was on show” in the Perth CBF, which can aid the revival of the association and make it relevant to the modern world. We expect this “rebranding” will enhance the role and strength of the Commonwealth further.
We therefore ask Heads of Government to reshape the way the Commonwealth works and focus more on cooperation for trade and investment, jobs and growth to complement its work on good governance. CBC is willing to mobilise the Commonwealth private sector in this effort under the leadership of the incoming Commonwealth Chair in Office, the Prime Minister of Australia.
The Commonwealth and the Investment Climate
The business leaders and experts agreed that the majority of the Commonwealth - including developed as well as developing countries - are better placed than many to weather the current economic turbulence. Commonwealth countries are investment destinations of choice, have high governance and business standards. The World Bank and international agencies recognise that these standards continue to rise. It is important to maintain this momentum. Australia, as a successful developed economy and chair-in-office is in an excellent position to lead this Commonwealth effort.
Global Outlook
The attention of the business community is now on the overall health of the global economy. Economic forecasting is not the purpose of the CBF, but the dangers of a double dip recession in Europe and North America, with collateral damage to all emerging markets is real. At the same time, the underlying changes occurring in the global economy continue to point to a long and historic cycle of growth. 4-7% growth rates in emerging markets are now a long-term norm, part of the embedded structure of the new world economy.
While national and personal debt levels in many larger economies are high, one bright light is that globally, corporate balance sheets and reserves are in very good shape. This illustrates the importance of governments taking firm action to manage markets and fiscal systems to promote confidence, so that these capital resources can be used to invest in growth.
The opportunities for growth in the next century revolve around biotechnology, information technology, green growth and renewable energy. Governments need to work with the private sector, universities and civil society to harness technology to create sustainable growth.
Free Trade and Open Markets
We welcome the leadership of the Australian Government in committing to zero tariffs for emerging economies, and we urge leaders to explore ways in which bilateral and multi-country agreements can be advanced to promote growth.
Public Private Dialogue
The importance of dialogue between governments and business at a global and national level has never been greater. This is illustrated by the discussion of a number of key topics –climate change, infrastructure, and natural resources that remain fundamental to development in all economies. There is a declining trend line in available public funding. Private capital can take up the slack, but this requires a clear and predictable rate of return. This is a further example of how well managed public private partnerships are needed to facilitate investment.
The message to leaders is to stay the course to effectively manage globalisation for growth. We urge Heads of Government to focus on the following priorities: skills and education for jobs; access to finance for business growth; infrastructure development; support for SMEs; business friendly tax policies; tackle corruption and strengthen corporate governance.
The Commonwealth Regions
Africa is a new zone of economic development and growth, confidence and stability – poised to use its enormous resources to benefit hundreds of millions of its citizens.
This week’s discussions and investment sessions also reinforce the potential of an Indian Ocean economic zone – which can be built on over the next two CHOGMs in Sri Lanka and Mauritius. The ability of this region, including South Asia, to drive sustained growth is strong. Our sessions on Australia, Mauritius, Malaysia, Pakistan and Sri Lanka demonstrate this.
The Pacific is perhaps the least known region in the world with special opportunities, and we are glad to have had a delegation from 8 Pacific countries with us. New joint programmes were agreed.
The link developed with Caribbean countries was further strengthened, creating new linkages with Australia and using the Caribbean as an entry point for the Americas. We confirm the importance of small states and islands to the business promotion work of the Commonwealth.
Actions and Results
At the Forum we launched a number of practical initiatives.
1. Mining: to complement the Australian Mining for Development Initiative announced this week, we established the Commonwealth Mining Network that will help to link the private sector to the needs of Commonwealth developing governments to manage their mining sectors more sustainably. We thank the companies and chambers that have agreed to support this.
2. Skills for Jobs and Careers: to strengthen public private partnerships on employment creation and careers, we are launching an initiative to link business-designed training with career opportunities for disadvantaged citizens across the Commonwealth. The Australian covenant for disadvantaged citizens is a promising model with its link between training and guaranteed employment. We invite interested Commonwealth governments to work with CBC to establish nationally tailored programmes based on this model.
3. Enterprise: SME development is at the heart of employment creation and sustainable growth. The Australian Chamber of Commerce and Western Australia Chamber of Commerce have agreed with CBC to set up a programme with the Bank of Industry Nigeria and partners from the Pacific, India, and Africa to work with companies and governments to use their supply chains and other measures to support enterprise and the SME sector.
4. Women own up to 39% of private businesses in the formal economy but have not penetrated the global supply chain, are underrepresented on boards, and lack access to finance. CBC will work with the International Federation of Women Entrepreneurs and British Association of Women Entrepreneurs to establish a Commonwealth Businesswomen’s Network to strengthen the overarching strategy for women in business around procurement and policy.
5. We were delighted to have with us more than 60 Chinese business leaders who joined us for the discussions on Commonwealth-China cooperation, and we had our first ever CBF sponsor from China – ICBC. We signed an MOU between CBC and the China Council for the Promotion of International Trade (CCPIT) to forge greater cooperation that will launch a Commonwealth-China business network.
6. We began a new cooperation between CBC and the Pacific Forum on Pacific trade and investment.
7. We established the Australia-Nigeria Trade and Investment Council. We believe that this is a good example of how the friendships and solid relationships of the Commonwealth can be used to develop economic cooperation. If the world stands still on trade and investment reform, the Commonwealth partners can still find ways to move ahead.
8. Sport: CBC will set up a group of leading Commonwealth companies to develop the ways that business can be more involved in using sport for economic growth and jobs.
9. The Investment Promotion Agencies (IPAs) and CBC will establish a Commonwealth IPA network to share best practice and improve links between IPAs. We will set up an e-platform network and work together in preparing for CBF 2013.
10. Improving Business: to increase ease of doing business the Forum endorses consideration of a Commonwealth business visa similar to APEC. The Forum received a presentation on a Commonwealth Cybercrime Initiative, which was welcomed by business.
Finally, the deal flow discussed at this Forum is on track to deliver $10bn in new projects and investments over the next 6-9 months. We have been able to organise a large number of high-level meetings around the $100bn of projects in the CBF project exchange. We expect the thousands of 1-2-1 exchanges between delegates to lead to a healthy deal flow in 2012.
We would like to thank our more than 180 speakers and chairs of sessions, and once again express sincere thanks to Prime Minister Gillard and the Australian Government, Premier Colin Barnett and the Government of Western Australia for their support in hosting the meeting. We also express our appreciation to our Forum Steering Committee lead by John Denton and Mark Barnaba as well as each of the 50 organisations whose sponsorship made it possible, especially our principal sponsors ANZ, BP, Fortescue, Perdaman, Rio Tinto, and Woodside. A full list is annexed.
Commonwealth Business Council
Perth, Australia
27 October 2011
Perth, Australia, 25th -27th October 2011
Partnering for Global Growth: The Commonwealth, the Indian Ocean and the Pacific Rim
Communiqué and Report to Heads of Government (CHOGM)
The New Commonwealth
This has been the biggest and most vibrant Commonwealth Business Forum ever. Over 1400 business and government leaders from 54 countries participated over the three days, including 16 Heads of Government. 150 global business leaders and experts addressed the Forum and we held 20 country/state investment windows, including 6 led by Heads.
The CBF is a growing part of the CHOGM experience, evidence that trade, investment and economic partnerships are now part of the lifeblood of the new Commonwealth. In the words of Australia’s leading financial title, “a new kind of Commonwealth was on show” in the Perth CBF, which can aid the revival of the association and make it relevant to the modern world. We expect this “rebranding” will enhance the role and strength of the Commonwealth further.
We therefore ask Heads of Government to reshape the way the Commonwealth works and focus more on cooperation for trade and investment, jobs and growth to complement its work on good governance. CBC is willing to mobilise the Commonwealth private sector in this effort under the leadership of the incoming Commonwealth Chair in Office, the Prime Minister of Australia.
The Commonwealth and the Investment Climate
The business leaders and experts agreed that the majority of the Commonwealth - including developed as well as developing countries - are better placed than many to weather the current economic turbulence. Commonwealth countries are investment destinations of choice, have high governance and business standards. The World Bank and international agencies recognise that these standards continue to rise. It is important to maintain this momentum. Australia, as a successful developed economy and chair-in-office is in an excellent position to lead this Commonwealth effort.
Global Outlook
The attention of the business community is now on the overall health of the global economy. Economic forecasting is not the purpose of the CBF, but the dangers of a double dip recession in Europe and North America, with collateral damage to all emerging markets is real. At the same time, the underlying changes occurring in the global economy continue to point to a long and historic cycle of growth. 4-7% growth rates in emerging markets are now a long-term norm, part of the embedded structure of the new world economy.
While national and personal debt levels in many larger economies are high, one bright light is that globally, corporate balance sheets and reserves are in very good shape. This illustrates the importance of governments taking firm action to manage markets and fiscal systems to promote confidence, so that these capital resources can be used to invest in growth.
The opportunities for growth in the next century revolve around biotechnology, information technology, green growth and renewable energy. Governments need to work with the private sector, universities and civil society to harness technology to create sustainable growth.
Free Trade and Open Markets
We welcome the leadership of the Australian Government in committing to zero tariffs for emerging economies, and we urge leaders to explore ways in which bilateral and multi-country agreements can be advanced to promote growth.
Public Private Dialogue
The importance of dialogue between governments and business at a global and national level has never been greater. This is illustrated by the discussion of a number of key topics –climate change, infrastructure, and natural resources that remain fundamental to development in all economies. There is a declining trend line in available public funding. Private capital can take up the slack, but this requires a clear and predictable rate of return. This is a further example of how well managed public private partnerships are needed to facilitate investment.
The message to leaders is to stay the course to effectively manage globalisation for growth. We urge Heads of Government to focus on the following priorities: skills and education for jobs; access to finance for business growth; infrastructure development; support for SMEs; business friendly tax policies; tackle corruption and strengthen corporate governance.
The Commonwealth Regions
Africa is a new zone of economic development and growth, confidence and stability – poised to use its enormous resources to benefit hundreds of millions of its citizens.
This week’s discussions and investment sessions also reinforce the potential of an Indian Ocean economic zone – which can be built on over the next two CHOGMs in Sri Lanka and Mauritius. The ability of this region, including South Asia, to drive sustained growth is strong. Our sessions on Australia, Mauritius, Malaysia, Pakistan and Sri Lanka demonstrate this.
The Pacific is perhaps the least known region in the world with special opportunities, and we are glad to have had a delegation from 8 Pacific countries with us. New joint programmes were agreed.
The link developed with Caribbean countries was further strengthened, creating new linkages with Australia and using the Caribbean as an entry point for the Americas. We confirm the importance of small states and islands to the business promotion work of the Commonwealth.
Actions and Results
At the Forum we launched a number of practical initiatives.
1. Mining: to complement the Australian Mining for Development Initiative announced this week, we established the Commonwealth Mining Network that will help to link the private sector to the needs of Commonwealth developing governments to manage their mining sectors more sustainably. We thank the companies and chambers that have agreed to support this.
2. Skills for Jobs and Careers: to strengthen public private partnerships on employment creation and careers, we are launching an initiative to link business-designed training with career opportunities for disadvantaged citizens across the Commonwealth. The Australian covenant for disadvantaged citizens is a promising model with its link between training and guaranteed employment. We invite interested Commonwealth governments to work with CBC to establish nationally tailored programmes based on this model.
3. Enterprise: SME development is at the heart of employment creation and sustainable growth. The Australian Chamber of Commerce and Western Australia Chamber of Commerce have agreed with CBC to set up a programme with the Bank of Industry Nigeria and partners from the Pacific, India, and Africa to work with companies and governments to use their supply chains and other measures to support enterprise and the SME sector.
4. Women own up to 39% of private businesses in the formal economy but have not penetrated the global supply chain, are underrepresented on boards, and lack access to finance. CBC will work with the International Federation of Women Entrepreneurs and British Association of Women Entrepreneurs to establish a Commonwealth Businesswomen’s Network to strengthen the overarching strategy for women in business around procurement and policy.
5. We were delighted to have with us more than 60 Chinese business leaders who joined us for the discussions on Commonwealth-China cooperation, and we had our first ever CBF sponsor from China – ICBC. We signed an MOU between CBC and the China Council for the Promotion of International Trade (CCPIT) to forge greater cooperation that will launch a Commonwealth-China business network.
6. We began a new cooperation between CBC and the Pacific Forum on Pacific trade and investment.
7. We established the Australia-Nigeria Trade and Investment Council. We believe that this is a good example of how the friendships and solid relationships of the Commonwealth can be used to develop economic cooperation. If the world stands still on trade and investment reform, the Commonwealth partners can still find ways to move ahead.
8. Sport: CBC will set up a group of leading Commonwealth companies to develop the ways that business can be more involved in using sport for economic growth and jobs.
9. The Investment Promotion Agencies (IPAs) and CBC will establish a Commonwealth IPA network to share best practice and improve links between IPAs. We will set up an e-platform network and work together in preparing for CBF 2013.
10. Improving Business: to increase ease of doing business the Forum endorses consideration of a Commonwealth business visa similar to APEC. The Forum received a presentation on a Commonwealth Cybercrime Initiative, which was welcomed by business.
Finally, the deal flow discussed at this Forum is on track to deliver $10bn in new projects and investments over the next 6-9 months. We have been able to organise a large number of high-level meetings around the $100bn of projects in the CBF project exchange. We expect the thousands of 1-2-1 exchanges between delegates to lead to a healthy deal flow in 2012.
We would like to thank our more than 180 speakers and chairs of sessions, and once again express sincere thanks to Prime Minister Gillard and the Australian Government, Premier Colin Barnett and the Government of Western Australia for their support in hosting the meeting. We also express our appreciation to our Forum Steering Committee lead by John Denton and Mark Barnaba as well as each of the 50 organisations whose sponsorship made it possible, especially our principal sponsors ANZ, BP, Fortescue, Perdaman, Rio Tinto, and Woodside. A full list is annexed.
Commonwealth Business Council
Perth, Australia
27 October 2011
Tuesday, 6 September 2011
India and corruption
The current situation in India, popular protests against corruption led by Anna Hazare, has set me thinking.
I think, particularly in a country as diverse and large as India, inclusive growth requires inclusive democracy. The wide spread protest against corruption have shown that India has an appetite for participatory democracy, and given the sheer size and scale of the Indian state ‘people power’ might be necessary to keep it in check.
If nothing else this incident has shown once again how important tackling corruption is to a country’s development, Moody’s the ratings agency says that ‘cases of corruption and the recent scandals have impaired business environment in India’. Tackling this is important before it has an impact on India’s ability to attract international business and investment and further damages the countries reputation as a safe place to do business.
I think, particularly in a country as diverse and large as India, inclusive growth requires inclusive democracy. The wide spread protest against corruption have shown that India has an appetite for participatory democracy, and given the sheer size and scale of the Indian state ‘people power’ might be necessary to keep it in check.
If nothing else this incident has shown once again how important tackling corruption is to a country’s development, Moody’s the ratings agency says that ‘cases of corruption and the recent scandals have impaired business environment in India’. Tackling this is important before it has an impact on India’s ability to attract international business and investment and further damages the countries reputation as a safe place to do business.
Monday, 8 August 2011
Nigeria: a county of tremendous potential
I was honoured to be invited to address the Business Environment Roundtable on the 2011 Nigerian Economic Road Map by the Lagos Chamber of Commerce and Industry last month to provide an international perspective to their discussions of Nigeria's development plans.
Nigeria is a county of tremendous potential that should be leading in Africa and the world, a population of 150 million people all of whom are potential entrepreneur as anyone that knows the country will be able to testify to. The Current Administration aims to make Nigeria on the world's 20 largest countries by 2020, this is achievable. Indeed, Goldman Sachs believes that with the right reforms, Nigeria would be the world's fifteenth largest economy by 2050 and Standard Chartered the largest economy in Africa by 2013.
Nigeria is making good progress - the recent elections have solidify the image of Nigeria as a working and fair democracy, even Britain's traditionally negative press could find little to complain about. Nigeria's work in securing peace and democracy in the region, particularly its vocal defence of the principal of Democratic Succession in Cote d'Ivoire, has helped elevate the county to new levels on the international stage.
The key challenge for Nigeria to tackle if it is to meet its potential is its infrastructure deficit. The Central Bank estimates that Nigeria needs to invest $100billion (about N15 trillion) over the next 10 years to fill the deficit. In the power sector. Nigeria expends about $13 billion every year providing power from diesel generators when only about
$10 billion per year is required in investment over the next few years to develop our generation, distribution and transmission capacities. Generating power from generators adds more than 40 percent to the cost of goods and services in Nigeria.
Given the scale of the investment required the only truly viable way of meeting the need is though, public-private partnership. Government needs to work closely with business, both national and international, to ensure that the funding to tackle this deficit is met.
Nigeria is going to remain a country of tremendous opportunity for investor for foreseeable future and I would encourage, everyone to look at the opportunities there for their own businesses.
Nigeria is a county of tremendous potential that should be leading in Africa and the world, a population of 150 million people all of whom are potential entrepreneur as anyone that knows the country will be able to testify to. The Current Administration aims to make Nigeria on the world's 20 largest countries by 2020, this is achievable. Indeed, Goldman Sachs believes that with the right reforms, Nigeria would be the world's fifteenth largest economy by 2050 and Standard Chartered the largest economy in Africa by 2013.
Nigeria is making good progress - the recent elections have solidify the image of Nigeria as a working and fair democracy, even Britain's traditionally negative press could find little to complain about. Nigeria's work in securing peace and democracy in the region, particularly its vocal defence of the principal of Democratic Succession in Cote d'Ivoire, has helped elevate the county to new levels on the international stage.
The key challenge for Nigeria to tackle if it is to meet its potential is its infrastructure deficit. The Central Bank estimates that Nigeria needs to invest $100billion (about N15 trillion) over the next 10 years to fill the deficit. In the power sector. Nigeria expends about $13 billion every year providing power from diesel generators when only about
$10 billion per year is required in investment over the next few years to develop our generation, distribution and transmission capacities. Generating power from generators adds more than 40 percent to the cost of goods and services in Nigeria.
Given the scale of the investment required the only truly viable way of meeting the need is though, public-private partnership. Government needs to work closely with business, both national and international, to ensure that the funding to tackle this deficit is met.
Nigeria is going to remain a country of tremendous opportunity for investor for foreseeable future and I would encourage, everyone to look at the opportunities there for their own businesses.
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