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Private Actors in Global Governance: Business Power and thei

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Valentina Starasciuc

on 28 February 2014

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Transcript of Private Actors in Global Governance: Business Power and thei

Private Actors
in Global Governance:
Business Power and their
Lobby Groups

Case Study:
indirect influence of interest groups on policy
Parliament / Representatives
Government / Bureaucrats
Public / Journalists
The ‘right’ information at the right time to the right people
Quotes / Spin
(In)formal contact

Lobbyist is her network

Revolving door
Vote with your feet

Extracurricular Activities

Campaign Finance

Growth of Companies

Rise of PR

Multi-Level Governance
Lobbying Methods:
Definitions Transparency:
Generally, implies openness, communication, and accountability. Transparency is operating in such a way that it is easy for others to see what actions are performed. The main targets of transparency are firms (both public and private), governments and international organizations: like the IMF WTO
Transparency is also defined as
Expert Groups
“a process by which information about existing conditions, decisions and actions is made accessible, visible and understandable” (Working Group 1998).
“… Transparency can be defined as the release of information by institutions that is relevant to evaluating those institutions” (Florini, 1999)
The Miriam-Webster Dictionary defines transparency as ...“free from pretence or deceit,” “easily detected or seen through,” “readily understood,” and “characterized by visibility or accessibility of information, especially concerning business practices.”
Lobbying expenditures in the USA
Types of transparency.
three types of transparency based not only on the volume of information made available but also on the quality of information made available:
Information Transparency
Participatory Transparency
Accountability Transparency
(Potts J et al., 2010)
Lobbying Methods:
Membership in lobby organizations and Patenting
The relationship between transparency and sustainability.
Transparency improves what we know about markets and the institutions that drive them
By enhancing information flow, transparency can promote market efficiency, social welfare and cost internalization, all core principles of sustainable development
increased information on the characteristics and performance of market actors better enables policy-makers to design and employ effective corrective policy. (Potts J et al., 2010)

Are we able to resist?
Different in transparency laws in different countries
Transparency in countries legislation.
EuropaBio: 600 member companies
Lobbying the Directive on Legal Protection of Biotechnological Inventions - "Patenting of Life"
Difference in definition of transparency in different countries.
How laws and regulation enforcements would help in transparency;
Potential benefits:
Helps government departments and different levels of authority to better understand the trade-offs and potential costs
Enables governments to make the best decision in terms of policy and resource allocation
Enables comprehensive evaluation of the project benefits and costs
Increases the legitimacy of deals, fosters project continuity during changes of governing regime, and mitigates against local opposition
From an economic perspective-helps ensure that the distribution of financial benefits from a natural resource deal are in accordance with law
Reinforce the position and impunity of elites
Increases security of contracts and improves commodity supply chain security for businesses operating in high risk environments.

Source: Global Witness, 2012, “Dealing with disclosure: Improving transparency in decision-making over large-scale land acquisitions, allocations and investments”.
NGOs in support of transparency-Transperancy international.
Transparency International (TI) is
“the global civil society organisation leading the fight against corruption. It brings people together in a powerful worldwide coalition to end the devastating impact of corruption on men, women and children around the world".
Transparency’s mission is to create change towards a world free of corruption”. TI's mission is to create change towards a world free of corruption.
Transparency International (TI) cont;
TI has global networks including more than 90 established national chapters
TI brings together relevant players from government, civil society, business and the media to promote transparency
Transparency’s global chapter network also uses advocacy campaigns to lobby governments in order for them to implement anti-corruption reforms.
TI Deutschland, Berlin-headquarter.
Since 1995, TI issued an annual Corruption Perceptions Index (CPI), 2000s-Global Corruption Report, a Global Corruption Barometer and a Bribe Payers Index, which identifies and illustrates corruption.
International Institutions such as the WB and the IMF now view corruption as one of the main obstacles for global development, whereas prior to the 1990s this topic was not broadly discussed.
TI furthermore played a vital role in the introduction of the United Nations Convention against Corruption and the OECD Anti-Bribery Convention.
“is the abuse of entrusted power for private gain”. The key concept of the fight against corruption is transparency.
CPI criticized;
Data cannot be compared from year to year
Difficulty in measuring corruption and potentially unreliable.
Meant to measure of perception and not "reality".

BPI- Bribe Payers Index:
The 2011 Bribe Payers Index ranked companies from 28 leading economies (80% of the total world outflow of goods, services and investments) to win business abroad by paying bribes (lobbying).
Different types of bribery across sectors.
‘private-to-private’ bribery-amongst companies
Foreign bribery- External Investors
bribery of low-ranking public officials
high-ranking politicians to achieve influence (improper contributions)
Revolving door
250 000 customers in the US
145 lawsuits
11 proceded through trial
All won
Crop Protection Association, UK
Patenting Lawsuits
Lobbying Methods:
Public Image
"Monsanto Insectarium" - Education Centre at the St Louis Zoo
The Learning Center at Scott, Mississippi
The Learning Center at Monmouth, Illinois
The Gothenburg Water Utilization Learning Center
Prizes 2013:
Good Labour Practices award - Monsanto Peru
Among Top Sustainable AgroCompanies - Vietnam
Among Best Companies to Work For - Monsanto China
Nr. 34 Innovative Companies
Monsanto Executive wins the World Food Prize
TV Ads:
Organizations and movements:
Lobbying and Transparency in EU
2013-With the help of the Alliance for Lobbying Transparency and Ethics Regulation (ALTER-EU) more than 10,000 people have signed an online petition-for lobbying transparency in the European Union by supporting the transition to a mandatory lobby register.
The campaign are demanding the transition to a mandatory EU lobby register, adopt a clear and enforceable ethics code for lobbyists
The campaign is highly flawed. Thousands of lobbyists boycott the transparency rules (including ABN-Amro Bank, Adidas, Delhaize, Goldman Sachs, Janssen Pharmaceutica N.V., Rio Tinto plc, Time Warner and many others) while many of the companies and organizations that do sign up, fail to provide accurate and up-to-date information on their lobbying activities.

Note: Transparency faces a challenge even in advanced economies.
Discussion points
1st Option
2nd Option
3rd Option
4th Option
Break up -
Outlaw Influences
Balanced by Civil Society
Status Quo holds
Lobbyist groups
CPI 2013
Revolving Door
Misleading PR
Privileged access
Is Transparency suffiecient or we need something else? If yes, what exactly?
BPI 2011
Full transcript