The OECD has urged G8 powers to launch a wide crackdown on unethical behaviour, from bribery to money laundering, tax evasion and bank secrecy world-wide, at their summit opening in Italy on Wednesday. Integrity in public bodies and business is the keystone of a 12-point charter for stable market-driven economic growth after the global crisis, the OECD said before the summit in L'Aquila.
And "any form of protectionism should be banned," it declared. A high level of ethics and openness is the backbone of "a strong, fair and clean economy", the Organisation for Economic Co-operation and Development said late on Monday, presenting a set of proposals for the summit.
The OECD is a research and policy body for the 30 leading advanced economies in the world. It said that its proposals had already been fed into the framework for the global economy agreed by G8 finance ministers at Lecce, Italy, in the middle of June. The starting point for the proposals was the notion that "a strong, fair and clean economy must be based on the values of propriety, integrity and transparency" and that these values "should be promoted by public policies and be upheld by business."
The 12-point recommendations, which the OECD says will be discussed at the summit, includes the following principles: "Governments, companies and all business entities, irrespective of their legal form, around the world should recognise that these values are the keystone of a market economy which serves the needs and aspirations of citizens of every country and which deserve their respect and confidence."
Principles and standards to this end must be monitored regularly, the OECD said, also condemning "tax evasion and avoidance" as being "harmful to society as a whole." "Any race to the bottom" in the form of switching between regulatory standards, or regarding labour, social and environmental standards, should be prevented by international co-operation and convergence of national laws.
Another main point urges that "financial structures and instruments should not be misused in order to hide the true beneficial owner." Also, corporate structures "should not be used for illicit activities, including money laundering, bribery, shielding assets from creditors, illicit tax practices" and other manoeuvres such as "market fraud and circumvention of disclosure requirements."
Essential information about the structure of companies and their performance must be provided, and pay packages must be soundly based and in line with prudent risk-taking. Bribery, including "bribery in international business transactions" should be made a criminal offence, and offenders must be found and punished, and money laundering should also be a criminal offence.
Standards must be enforced to ensure open and fair arrangements for lobbying, and so-called "revolving-door" relationships, the OECD says, using a term usually referring to restraints on the speed with which senior people can switch from a government department to a related area of private business. Bank secrecy should not be permitted to obstruct the application of these principles, the OECD says. The OECD said it had launched an Internet discussion blog and was inviting.
Comments
Comments are closed.