ࡱ> { bjbjzz ;zK>>KKKKKKKK8(L,TL4K$rLL(LLLMM Mqqqqqqq$tw*qKMMMMMqKKLLqoSoSoSMjKLKLqoSMqoSoS#jgnL`3Nk(qq0$rkhwER*wPgnwKgn(MMoSMMMMMqqoSMMM$rMMMMwMMMMMMMMM> J: JOB/GC/34 31 January 2013 Page 1/7 Original: English General Council 29, 30 and 31 January 2013 Appointment of the Next Director-General MEETING WITH THE CANDIDATES _______________ Presentation to the General Council of the World Trade Organization by mr Ahmad Thougan Hindawi 30 January 2013 Your Excellency Madam Chair Distinguished Delegates Ladies and Gentlemen. Please allow me in the beginning Madam chairperson to express to you how profoundly honored and privileged I am to be standing in front of you here today in this meeting aiming at launching the process for selecting the new Director General of the World Trade Organization. I am truly humbled by the recognition and nomination, and I genuinely thank you and the members for giving my colleagues, my fellow nominees, and I the chance to stand before you to introduce ourselves and highlight our vision for this great institution. I would like in the beginning to thank you Madam Chairperson, member states, and Director General for your excellent leadership and command of the General Council meetings in general and this selection process session in specific. I am fully confident that your visionary thinking, wisdom, and methodical approach will result in the successful conclusion of the selection process in the matter that would best serve the organization and its members. Also Ms. Chairwoman, and before I start presenting my vision for the future of ϲʹ, I would like to express how honored I am to be competing among such a distinguished group of people. They are not here right now, but I just wanted you and the distinguished delegates to know that I feel privileged to be competing among such a prominent group of international officials, experts and practitioners who are all committed and have proven records towards the cause of trade liberalization. I am genuinely and deeply honored to be competing with them in the same group. Looking at this panel of distinguished nominees, ladies and gentlemen makes me reflect back on the debate that has been taking place over the past months on whether we should honor the unwritten desire of rotation between developed and developing countries for the top ϲʹ position, or we should focus on merits, capabilities, competencies, and qualifications.. Looking at this distinguished panel of nominees ladies and gentlemen, I tell you with great confidence that the two are not mutually exclusive, they do not contradict with each other; and that we can have both. A ϲʹ Director General from a developing country, who is highly capable and competent by virtue of his or her education and past experience to lead the organization effectively during the coming years. Ladies and Gentlemen, When I started writing my speech reflecting my thoughts on where we are coming from in terms of the profoundly changing global economic environment, the successes and failures of the past; where we are standing right now wavering between optimism and pessimism, and most importantly where we are heading in the future, in terms of the challenges and opportunities that lie ahead, our global common objectives, and how to go about achieving them. When all these thoughts were going through my mind, I could not but think of Charles Dickens in A tale of Two Cities when he said: It was the best of times, it was the worst of times It was the age of wisdom, it was the age of foolishness. It was the epoch of belief, it was the epoch incredulity. It was the season for light, it was the season for darkness. It was the spring of hope, it was the winter of despair.. We had everything before us, we had nothing before us we were all going direct to heaven, we were all going direct the other way. End of quote. To me, these simple words summed up my thought process. At the end of the day, it is all about Choice and Commitment. Our choice, collective choice, whether we genuinely believe in and want to strengthen and progress the cause of globalization and free trade; and if so, our commitment, collective commitment, to do whatever is necessary and needed to achieve this noble goal. We all know, Ladies and gentlemen, that world trade has gone through tremendous and profound changes over the past decades. The huge advances in the ICT Sector, the spread of multinationals with their globally integrated production lines shifting the concept of competition from one between countries to that between the value chains of these multinationals and the emergences of several regional and bilateral agreements all contributed to world trade. A recent World Bank research estimated that world exports of 2011 were approximately 40% higher than those in 2001. (in spite of the financial crises) and approximately 150% that it was in 1995. Manufacturing products exports grew exponentially raw material exports grew steadily, while agriculture exports have been largely static During these dynamic and vibrant global economic environment, our organization was born in 1995, with a clear mandate to be the international organization whose primary purpose is to open trade for the benefit of all.. open trade all trade for the benefit of all. The core and fundamental values of Non Discrimination, fairness, transparency, and predictability were sustained from its predecessor, the General Agreement of Trade and Tariff (GATT). Yet the ϲʹ was different in so many ways. The expanded scope which mandated the ϲʹ to address several new issues that were not addressed in GATT including agriculture, services, IPR, Non-Tariff Barriers to name a few. The Single undertaking principle, the All or Nothing approach was one of the most significant principles that aimed at and was successful in integrating the majority of developing countries more fully into the multilateral trading system. The Dispute Settlement Mechanism (DSM) of the ϲʹ was another major improvement of the GATT system which was stained with overly long delays from establishment to conclusion of panel proceedings, ability of disputants to block consensus, difficulty in securing compliance with panel rulings. All that changed with ϲʹϒS DSM operating under strict time limits, no veto to power, new Appellate Body and a procedure to promote timely compliance through monitoring compliance actions and allowing for proportionate retaliation in case of none compliance. The institutional structure is another major difference. Where GATT was a trade accord serviced by a secretariat, the ϲʹ is a serviced organization with a clear mandated and structure, greater legal coherence, biennial ministerial meetings which allow political leaders to provide useful direction to the work of the ϲʹ. All that in addition to the significantly higher number of signatories. While GATT 23members only, the ϲʹ has now 157 members. The ϲʹ has been successful inlarge extent. Most of what has been agreed to during the Uruguay Round has been implemented. The overall positive impact on the global economy in terms of worldwide reduction of tariff and non tariff barriers and substantial multiple fold increase of global trade has also been profound and notably felt. The road was long and bumpy, full of obstacles and challenges, many of which still exist today. Yet, with a clear vision, un-waivered commitment, dedication and perseverance, the ϲʹ was able to overcome the majority of these challenges. The two key challenges that I foresee continuing and needing the utmost concern and attention of the ϲʹ, its General Council and the Ministerial meetings in the future are: 1. The Doha Round Challenge/ Opportunity and 2. ϲʹϒs Internal Reform. The Doha Round Challenge / Opportunity: The Doha Round was launched in 2001 with a fundamental core objective of improving the trade prospects of developing countries. Analysts and critics have used several terminologies to describe the round. They used words like deadlock, gridlock, impasse, stalemate, undoable, collapsed or even limbo, to describe the round. Some even pronounced it dead, calling for a dignified burial for the decade-old trade round. I do not subscribe to any of these descriptions and conclusions. The Doha Round is a process, a negotiating process A multilateral trade negotiating process that covers a wide range of issues A process with its highs and lows. Sometimes going faster or slower than other times, which is natural and should be completely expected. After all, the Kennedy and Tokyo Rounds which involved a significantly fewer number of countries and issues took years of negotiations. The Uruguay Round with 133 countries lasted eight years. So, looking at this historical benchmark, one can not but wonder, was it really a realistic target to expect that the Doha Round, with its expanded scope and membership, will be concluded in 4years? When highly motivating unachievable targets are set from the beginning, frustration and disappointment will follow. This does not mean in any way that the process is dead. I fully subscribe to Mr. Lamys conclusion in a 2010 statement when he said: The only thing that is surprising in the Doha Round is that anyone is surprised. Despite the fact that the The Doha Round is technical in nature The key challenge facing it is political as many correctly perceive it. Should new trade liberalization prioritize market access or prioritize implementation and development. It is a matter of Leadership, Choice and Commitment The cost of a failed round is so huge and detrimental that no one developed and developing countries, can afford. A Complete failure will lead to complete loss of credibility and confidence in ϲʹ as a whole, hence it will severely impede its ability to progress forward with any new multilateral trade rounds in the future. Moreover it will undermine the organizations legitimacy and relevance hence its ability to maintain its current respectful posture with respect to its other core, effective, successful, well respected and adhered to functions including dispute settlement and trade policy review. Can the world afford such detrimental results??!! I un-equivocally, unhesitantly, and unapologetically say: No it cannot.. The Second high priority challenge / opportunity that the organization faces is its ability evolve.. to change.. to reform itself from within to be able to effectively and efficiently meet the external future challenges that lie ahead. There is a wise saying that goes: If you do not change. You will change. I totally subscribe to this point of view. The reform areas that I am proposing are categorized in Five main categories and (22) specific areas of reform as follows: 1. ϲʹ Key Functions, 2. ϲʹ support functions/ Institutionalizing the Institution, 3. ϲʹ Governance and Structure including DG and Secretariat roles, 4. ϲʹ Key Principles and Approaches including Single undertaking, and consensus voting, and 5. ϲʹ Interaction with Stakeholders. ϲʹ Key Functions The dispute Settlement Mechanism All agree that the establishment of this highly respected system enables all members to resolve trade disputes in a fair predictable and relatively rapid manner. It has been highly successful in fulfilling its main functions of fostering the resolution of trade disputes. The regular use of the system by both developed and developing countries gives a strong indication of their confidence in a dispute settlement mechanism that many consider to be a role model for the peaceful resolution of disputes in other areas of international political or economic relations. Some Challenges that face this highly successful system relate to the ability of the Secretariat to provide technical assistance to developing countries enabling them to fully understand and utilize the mechanism. Secretariat ability to satisfy this mandate is limited, as it is in other mandates due to scarcity of resources. Overall, the system remains to be highly successful. Because DSM helped many developing and developed countries already, all are taking care to comply with its rulings. The Trade Policy Review Mechanism, Notifications and Surveillance The Trade policy review (TPR) mechanism is invaluable to ϲʹϒs mission and objectives. Over the years, it proved to be highly successful. The Secretariats work of providing listing of notification requirements and members compliance and circulate them on semiannual bases, supported by an annual report by the DG. A core task of paramount importance for the ϲʹ is to be able to generate, compile and publish such information and data. Strengthening this function in addition to strengthening ϲʹϒs cooperation with other international organizations such as the World Bank, UNCTAD, and ITC in this respect is of high importance. Building Capacity for Developing Countries I strongly believe that this is an issue of great importance and concern to the majority of members of the ϲʹ. The over whelming majority of developing countries have made a strong and unwavering commitment to liberalize their economies. Yet many of them still lack the necessary knowledge tools that can allow them to make this integration a successful one that will have a noticeable positive impact on global trade. The ϲʹ has been successful in organizing numerous technical cooperation missions at home countries as well as courses for government officials at Geneva every year. Efforts, that are widely recognized and appreciated. The major initiative for conducting these capacity building efforts has been the Aid for Trade program. A key challenge for the future will be to seek continued and sustained funding through highlighting its importance and impact on world trade. I believe that such a challenge should be on the high priority list of ϲʹ members in the future. Some propose spinning off that component into a separate entity in order to enhance the effectiveness and efficiency of ϲʹϒs technical assistance functions. Such a suggestion can be considered by the General Council in the future in consultations with ϲʹϒs key stakeholders in parallel with sustaining and strengthening the Aid for Trade program. Accession Process It is of profound importance to have one rule to govern the accession process. Having more than one standard will have a detrimental impact on the credibility of the system. At the same time there are many who perceive the accession process as being too long and over complicated. In the time when we are steadily moving toward universal membership under the multilateral trading system, and focus is made on supporting developing countries globalization efforts, it would be conducive for members to think of innovative ways to streamline the accession process without compromising its effectiveness or creditability. ϲʹ Support Functions/Institutionalizing the Institution The second major category of ϲʹ reform deals with institutionalizing the institution. In the 21stcentury, no organization can and should operate without a well defined corporate vision, identity and culture and without adopting management practices in accordance with international best practice. Some argue that because the ϲʹ is so unique in so many ways in terms of the nature of the organizations, its mandate, global reach and impact, and functions; that such uniqueness would justify it not having such as corporate identity and culture and adopting such managerial practices. While I totally agree and concur with the logic of ϲʹϒs uniqueness, yet I disagree with the notion that such uniqueness should justify and prohibit the organization from implanting and institutionalizing a proper corporate culture, and developing and implementing management systems that will excel the organizations performance. Accordingly, I genuinely believe that the ϲʹ should, as a high priority, develop such a corporate culture and structure through: The development of a comprehensive strategic plan for the organization that contains proper and well defined vision and mission statements, core values, long and short term strategic and operational SMART objectives and KPIs and action plans to be accurately and sustainably implemented. A comprehensive and integrated organizational performance evaluation and assessment system. Such a system could be based on monitoring the achievement of the organizations strategic and operational KPIs in addition to stakeholders perceptions including members, business community, partners, employees, publicetc. A comprehensive human resource management and development system that will insure that the most capable staff is recruited and retained. This involves developing and implementing a strategic HR plan and systems that covers HR planning, recruitment, career paths, performance evaluation, training and capacity building, salary structure, financial and non financial incentive schemes, and internal communications. Systems, processes, procedures and templates documentation in accordance with international standards. Strengthening ϲʹϒs ICT capability to serve their members in the most effective and efficient manner. There are countries who are ϲʹ members but do not have representatives in Geneva. There are some who are not able to attend the important meetings of the different Councils, boards, committees, and groups. Some even miss on the General Council and Trade Negotiations Committee. This issue can be resolved by enhancing and strengthening the organizations ICT capabilities to enable them to participate through video conferencing in the most effective and cost efficient manner. The budget of the organization, as its manpower, is among the lowest compared to other international organizations of similar structure and importance. The issue of ϲʹϒs budget is always a highly sensitive issue one of distribution of obligations and rights again. Nevertheless, member countries must always keep in mind that the ϲʹ is a crucial instrument for managing an increasingly globalized economy, hence their minuscule share of national budgets produces that far outweigh the cost of investment. This high return on investment should be reflected in appropriate annual increases in the budget accompanied with enhance internal effectiveness and efficiency of the organizations performance. And finally, improvement is a continuous and never ending process. As a wise man once said in the race of excellence, there is no finish line There is a wealth of knowledge of suggestions on how to reform and continuously improve the organization as previously noted. The sources for such very valuable suggestions are numerous. From internal councils, committees, and board reports, representatives comments and reports, Secretariat staff suggestions as well as external partner organizations, academics, experts, writers and critics, business community, and public at large. In spite of this wealth of knowledge and its numerous sources, yet there is no structured and institutionalized system form capturing all of these suggestions in a timely and continuous manner, analysing and studying them, and putting them forward for the General Council and Ministerial meetings for their actions and decisions. This is in my opinion one of the most internal systems to be developed and implemented as it will insure the continuous evolution of our organization. ϲʹ Governance and Structure While I totally and fully concur with the principles of a member driven organization and the honest broker role of the DG, yet I genuinely believe that the correct question should be on how to enhance DGs and Secretariat effectiveness in order to empower and enable them to assume their fair, neutral, and transparent honest broker role and serve their member driven organization more effectively. Article VI (2) of the Marrakesh agreement calls on the ministerial conference to adopt regulations setting out powers, duties, condition of service and term of office for the DG, a thing which has not been done yet. Some critics argue that due to the uniqueness an sensitivity of the organization, a DG does not need a Job Description. I do not concur with this argument. Yes, the DG has to have the necessary high competencies and capabilities to lead and manage the organization, but that does not warrant or justify not having a job description, a thing that will negatively impact the long term interest of the institution and its members. The same arguments apply for ϲʹϒs secretariat. Approximately (600) highly skilled and qualified staff who are completely devoted to ϲʹϒs mission and are well respected by all. Yet, they are extremely spread thin among the organizations functions; administering and servicing the agreements and standing committees, dispute settlement, negotiations rounds, trade policy review, Appellate Body, Economic Research and Statistics Division, administration and finance etc. They comprise the institutional memory for the organization. They provide valuable advice to delegates, business groups, NGOs.. etc, and they present the organization to the outside world. Some argue that a Member Driven Organization would warrant a passive role of the Secretariat where its role should be solely for support and not take the initiative. I do not concur with this point of view. Yes, the Secretariat has a duty of absolute neutrality with respect to rights and obligations of members, and it may not take decisions or actions in a manner that prejudices those rights and obligations. However, I believe that a more passive and timid role will lead to losing effectiveness and efficiency on the longer term, hence impeding the Secretariats ability to service its members who will be the principle losers of such an approach. A member driven organization means to me that the Secretariat should be proactive in accurately and sustainably identifying members needs, requirements, and aspirations and proactively taking all actions necessary to meet those needs. The DG and Secretariat should be proactive in promoting and praising the multilateral trading system and its benefits to all stakeholders through all means available (speeches, publications, presentations, outreach to the business community and NGOsetc). They should be proactive in monitoring trade policy development, alerting members to protectionist trends; similar to what they did during the 2008 financial crises. As for the number of DG deputies, it has been customary to appoint (4) deputies which allows for some geographic balance. Some argue that this is too much, and in a member driven organization with a passive Secretariat, one deputy DG is sufficient and will contribute to cutting costs. I see merits in maintaining (3) deputies. One of whom to be the most senior, a CEO equivalent who would run the Secretariat and chair respective committees and who would be of opposite development orientation from the DG. The other two to lead the technical assistance function and engagement with stakeholders / ϲʹ information dissemination function which I believe of high importance. Overall, I strongly believe that a comprehensive review of the DG and Secretariat roles and functions should take place by the General Council based on members needs, requirements, and aspirations with the sole objective of enhancing their effectiveness and efficiency and empower them to perform their tasks with great competence. There are other ideas that the General Council may consider in the future including stimulating the Consultative Council as an advisory council with members representing different stakeholders. Also the frequency of ministerial meetings to be yearly instead of every two years especially in light of the political challenges that current negotiations are going through. The same logic is also driving suggestions to conduct Economic Summits for world leaders every two years. This will have a very positive impact in setting a clear vision for the future of multilateralism, solve political differences relating to distribution of rights and obligations hence it will restore confidence in the system and convey a very positive message to external stakeholders. The number and roles of the DDGs can also be discussed by the General council to enhance effectiveness and efficiency as well as put emphasis on areas of importance like Technical assistance to developing countries and stakeholder engagement. Key Principles and Approaches Single Undertaking The Single Undertaking principal was one of the major and noticeable differences and improvements over the a la carte practices of GATT. One of the core objectives of the unique take it all, or leave it all approach has been to incentivize, stimulate, accelerate, and deepen developing countries trade liberalization efforts and integration with world economy, and so it did. Another key benefit is that it allowed for a win-win-win situation whereby everybody gets a piece of the pie whether developed, emerging or developing and least developed. Market access, implementation, and development issues can be negotiated in a comprehensive, integrated and linked manner. Some skeptics of the Single Undertaking approach are arguing that the principle is complicating the process now with 158 members and counting with numerous issues on the table to be negotiated. A genuine and honest debate has to be sustained among members on this core and fundamental issue keeping focus on the long term impact of the adopted approach on the well being of global trade liberalization. Consensus Voting The Consensus principle has a long history in GATT. I fully appreciate the objective and benefits of such a principle. First, it ensures full ownership of the members of the issues being discussed and negotiated on, hence there can be no future excuse or justification for lack of compliance. Moreover, the principle prevents the interests of the few whether weak or strong to be stream rollered by those of the many, hence it is an added fairness safeguard measure. HE Pascal Lamy indicated that there is consensus about consensus. Some argue that the concept of VETO POWER, whether put in the hands of the few, the many, or in the hands of all is an undemocratic practice. It may have a negative impact on the effectiveness and efficiency of the system. The key question here is that: is there a system that will allow a higher degree of effectiveness and efficiency yet allows for flexibility and the interests of the few to be recognized, appreciated and preserved. An important issue for the General Council to consider. ϲʹ Interaction with External Stakeholders Proactive and continued positive engagement with all stakeholders is of paramount importance to enhance transparency and spread ϲʹϒs message to the world especially the part dealing with to the benefit for all, hence filling the communication gap with clear and positive messages. Member countries have a huge responsibility in this respect. However that does not negate the fact that ϲʹ itself has to be more proactive in its engagement and more vocal in spreading the message. ϲʹ DG and Secretariat have to intensify their efforts with the media and with member countries to launch national and regional awareness campaigns about the ϲʹ. Other proposed suggestions which may be considered by the General Council include: 1.Opening up ϲʹs Executive Council for more representation from stakeholders, 2.Publishing ϲʹ agreements in User Friendly language for the business community and the public at large. 3. Establishing suggestions and complaints management systems and satisfaction assessment systems to allow ϲʹ to receive, analyze and effectively and promptly respond to them. 4. Strengthening linkages to higher education institutions to develop and deliver trade liberalization courses and extend outreach educational programs to the private sector. 5. Strengthening cooperation with other international organizations (WB, UNCTAD, ITCetc) especially with respect to research and providing technical assistance to developing and least developing countries. After viewing the ϲʹϒs key challenges of the future, and the proposed vision and clear plan to deal with such challenges and excel our organization into the future, a fair question, distinguished delegates, would be: in light of these challenges, vision, and plan what would I be able to bring and add to the ϲʹ in the case of my selection? What edge would I have over other highly competent and capable contenders? The things that I will bring with me to the ϲʹ DG position ladies and gentlemen are in two folds, one relating to my country, Jordan, and more importantly what it represents, and the second relating to my own personal merits. With respect to the first factor, I will bring with me my countrys neutrality, diplomacy, strong political and economic relations with all, developing and developed countries. I will bring my countrys heritage as well as modernization; its history and forward looking; its appreciation for the needs of developing countries as well as its strong commitment towards trade liberalization and market access. I will bring what Jordan has always stood for, being an honest and fair broker among contending parties; acting as a bridge between the East and the West; the South and the North. As for my own personal merits, I will bring with me my strong unwavering conviction and commitment to the cause of trade liberalization. I will bring a proven track record of 25 years, 18of which were in senior positions in the government devoted to trade liberalization. I will bring strong negotiations experience and capabilities that I utilized as one of Jordans key negotiators of its ϲʹ accession as well as its key regional and bilateral FTAs including the ones with the Arab World, the US, Europe, and numerous developing countries. I will bring 8 years of robust private sector experience with multinationals and a leading regional consultancy firm that I proudly established and lead. A firm that is devoted to organizational reform. Such strong and relevant private sector experience is unique to my fellow contenders, and I believe will be highly conducive and of high value to ϲʹϒs future reform efforts. I will bring my academic knowledge devoted at and specialized in restructuring sectoral policies for productive sectors in developing countries with the aim of integrating them within global economy. I will bring with me proven leadership and management skills recognized nationally and regionally. I will bring a fresh outside look of someone who was not part of or directly involved in the system for the past years, nevertheless one who is fully aware of all its particularities from his experience before. I will bring energy, freshness, enthusiasm, innovative out of the box thinking, methodical approach and a clear vision for the future of the organization. If I am honored and privileged to get your confidence, I look forward to closely working with you all to deliver on our promise. I believe in what this great institution stands for. I will be an impartial, fair, honest broker and partner to all working hard to understand all views, increase alignment, narrow the gaps and most importantly continue to move forward. 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