CEOs call for less protectionism to revive economy

The world’s top CEOs who gathered in Seoul for the Group of 20 Business Summit called for active efforts to ease protectionism to revitalize the economy.

They also called for the governments of the world’s major economies to embrace an exit from stimulus policies to prevent inflation. 

The executives on Thursday released a joint statement containing these and other policy recommendations after wrapping up two days of talks. 

Their advice—given toward governments, private enterprises and civic groups—came as the G20 country leaders convened here for the Seoul Summit aimed to produce post-crisis solutions for reviving the world economy. 
“Rapid completion of the Doha round by 2011 is urgent to keep up with the momentum,” said Victor Fung, Li & Fung Group chairman and one of the conveners of the summit. “The threat to the global economy is protectionism. We have to admit protectionism has risen over the years and thought the summit should urge the leaders prevent further protectionism and roll back to pre-crisis levels.” 

Indicating that the business leaders may get their wish, the OECD plans to call for a resumption of the Doha talks, OECD officials said Thursday in a news briefing on the sidelines of the Seoul Summit. 

On fiscal policies, the CEOs said in their statement that “monetary policy should be gradually returned to a neutral stance to prevent inefficient capital allocation and new asset bubbles.” 

Governments have been unleashing stimulus packages after the 2008 Lehman Brothers crisis to help buoy their economies.

To help promote eco-friendly growth campaigns, the CEOs suggested provide “new financing solutions to help companies make long-term investments necessary for improved energy efficiency.” 

Creating jobs for the youth was another area the executives were keen to address.

They proposed public-private academic partnerships to train youths, while also offering incentives and policies for stakeholders to create jobs, leveraging training and internships.

Job creation can be realized only if the small and mid-sized firms are bolstered, the CEOs added, calling for measures to give these companies easier access to capital. 

Calling their talks a success, the CEOs stressed the need to institutionalize the meeting.

The remarks echoed comments from President Lee Myung-bak in his opening remarks to the corporate gathering. 

In his speech, Lee also urged enterprises to throw their weight behind the global push for economic revitalization.

“If we are to fully recover from the global economic crisis and promote sustainable growth, it is ultimately up to businesses to create the engines of growth. The entrepreneurial spirit of the private sector must take the lead,” Lee said. 

The president emphasized that although governments shape critical fiscal policies aimed at controlling and buoying the global economy, there are limitations. 

The limits must be addressed by the business sector, Lee stressed. 

British Prime Minister David Cameron highlighted the importance of such exchanges. 

“All of the work we do is nothing unless it encourages businesses to grow and employ people. We want global growth, but you are the people who will deliver. Help us achieve those goals,” the British premier said in the closing plenary session of the G20 Business Summit.

Throughout the summit, the CEOs reviewed and proposed solutions for pressing corporate and government challenges on the four topics of financial stability, trade and investment, green growth and corporate social responsibility. 

Another role president Lee demanded of the corporations was to reduce the gap between the advanced and less-developed countries. 

The development agenda is a key initiative Seoul is promoting, along with the establishment of a financial safety network. 

The president enlisted support from his fellow country leaders to help the business sector achieve these and other goals the G20 is pursuing. 

Some of the country leaders including Lee sat in on the business summit to directly communicate with the CEOs on how their suggestions can be incorporated with their own discussions for pursuing sustainable growth. 

Reports produced by the executives will be further shared with the country leaders today. 

Preparations for the business summit started in July when the CEOs started to hold multilateral and bilateral meetings on the four agendas and entailing sub-topics. 

The Seoul summit, bringing together leaders of the world’s 20 richest and emerging nations and a number of others outside the club, began Thursday.