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WEF, EIB Urge EU Finance Ministers To Make Inclusive Growth Top Priority

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The European Investment Bank (EIB) and World Economic Forum have issued a call to action for social inclusion to be put at the heart of EU economic policy. It comes as a new joint White Paper by both organizations, with contributions from the think tank Bruegel, is launched to make the case for more private-public sector partnership to drive a more inclusive approach to growth in Europe.

Innovation and entrepreneurship are the prime ways that growth and inclusion in Europe can be supported, says the White Paper, which puts forward key recommendations for action: from supporting public-private partnerships for technology diffusion, investing in smart transport infrastructure, supporting schemes for migrant entrepreneurs, a better strategy for teaching advanced digital skills as well as better access to venture capital and non-traditional sources of financing for small businesses.

EIB Vice President Andrew McDowell who is hosting today’s gathering of policymakers, business representatives and academics at the European Investment Banks Brussels Headquarters, said: “As we launch our report, EU finance ministers are meeting across the road. They know only too well the costs of growing inequality and uncertain prospects for the European economy. Our report is saying inclusion can no longer be treated as an afterthought. It is not a luxury – it is a catalyst for growth. What our very concrete and practical study shows and indeed what we see on the ground at the EU bank, is there is a win-win space where we can promote both inclusion and competiveness at the same time. Now we have to scale this up and bring the private and public sectors together to do this.”

Richard Samans, Member of the Managing Board of the World Economic Forum said: “We need a major shift in mindset in how we think about inclusion – as a positive catalyst for growth. It’s about rethinking our economic model and moving away from treating growth and inclusion as two separate processes. A partnership between the public and private sector joined by academic and civil society can help bring this about. The report we are launching and discussing today – and our Europe Growth Lab project provide starting points for implementation. I would urge policymakers to take heed – and use this study and our partnership as a valuable guide to how we can move forward.”

Today’s paper is a direct product of the WEF-EIB partnership, with contributions from Bruegel under the Europe Inclusive Growth and Competitiveness Lab set up in February 2016. The Lab aims to support the design and implementation of private-public partnerships in EU member states to increase competiveness and inclusive growth in Europe.

The “Beyond the Equity-Efficiency Trade-Off: Practical Ideas for Inclusive Growth and Competitiveness in Europe” paper identified around 25 concrete examples in Europe of real initiatives focused on innovation and entrepreneurship that can serve as starting points for implementation, acceleration and scaling up.

These examples include:

· Work by the European Institute of Innovation and Technology in teaching in teaching digital skills and attracting talent is featured.

· The approach of Austrian public-private partnership Pilotfabrik 4.0, and Tech City UK‘s Upscale programme in supporting start-ups and spreading innovation demonstrated how treating growth and inclusion together pays off, according to the report.

· The link between smart infrastructure, competitiveness and inclusion is successfully shown by initiatives like Superfast Cornwall, Madrid’s Real Time Passenger Information System and Enexis in the Netherlands.

· Hamburg’s “Working Group of Immigrant Entrepreneurs” is presented as an approach to encourage social integration and the contribution of migrant entrepreneurs to the economy.

The study proposes key areas for action including:

· Promoting innovation and diffusing existing technologies more rapidly across all types of firms.

· Pushing and supporting entrepreneurship – including the transition from start-up to scale-up.

· Investing in people, particularly society’s youngest and promoting a better strategy for advanced digital skills teaching.

· More investment in a connected Europe with broadband for all and investment in smart transport and smart grids.

· Stepping up of credit guarantees for small business, more support for venture capital and growth capital funding – such as through the InnovFin SME Guarantee Facility.

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Energy News

ADB Supports 275 MW Power Plant to Boost Energy Access in Sumatra, Indonesia

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The Asian Development Bank (ADB) today signed a private sector financing package to support the construction of a 275-megawatt combined-cycle gas turbine power plant in Riau province in central Sumatra, Indonesia, to help secure the country’s energy future and provide communities with more affordable and reliable electricity.

The financing consists of a $70 million A loan from ADB’s ordinary capital resources and $82 million B loan from Sumitomo Mitsui Banking Corporation and MUFG Bank, with ADB providing a partial risk guarantee (PRG) to the participating commercial banks. The International Finance Corporation (IFC) will provide $50 million for the Riau Natural Gas Power Project in the first-ever cofinancing of an infrastructure project by ADB and IFC in Indonesia.

ADB will also administer a $20 million loan from the Leading Asia’s Private Sector Infrastructure Fund (LEAP), supported by the Japan International Cooperation Agency. Established in March 2016, LEAP’s mandate is to help fill financing gaps and increase access to finance for ADB-supported infrastructure projects in Asia and the Pacific.

“ADB’s involvement in the project has helped secure long-term commercial bank financing necessary for any large-scale infrastructure investment, which has remained a challenge in Indonesia,” said Infrastructure Finance Division Director for Southeast Asia, East Asia, and the Pacific at ADB’s Private Sector Operations Department Mr. Jackie B. Surtani. “ADB’s role as a lender and provider of PRG to the project’s B loan lenders will enable the project to mobilize a significant amount of long-term debt.”

The project is being implemented through PT. Medco Ratch Power Riau, a special purpose vehicle partially owned by PT. Medco Power Indonesia, a leading developer and operator of small and medium-sized independent power producers (IPP) in the country, and Ratchaburi Electricity Generating Holding Public Company Limited, Thailand’s largest IPP.

“ADB’s role was key in getting this transaction closed from the negotiation stage of the power purchase agreement to the structuring of the financing package,” said PT. Medco Power Indonesia Chief Executive Officer Mr. Eka Satria.

The plant is expected to provide stable and reliable power to the domestic grid, amounting to about 1,445 gigawatt-hour annually. The use of combined-cycle gas-fired power generation will improve the environmental sustainability of the current energy mix in Sumatra by displacing diesel and coal as fuels for electricity generation.

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Environment

Education critical to ensure future of forests, and reverse their destruction

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The UN drew attention to the vital role that forests play in addressing some of the world’s greatest environmental challenges on Thursday, and the importance of tackling the issues that threaten them, such as deforestation, and land degradation.

The UN drew attention to the vital role that forests play in addressing some of the world’s greatest environmental challenges on Thursday, and the importance of tackling the issues that threaten them, such as deforestation, and land degradation.

Marking the 2019 International Day of Forests, the UN Food and Agriculture Organization (FAO) launched new forestry education initiatives aimed at raising awareness amongst young people about their sustainable use and conservation, and some of the major challenges related to forestry education.

Despite the well documented and important role that forests play in keeping the environment healthy and helping to address global challenges such as climate change through the capture of greenhouse gases, many people have little knowledge of the many ways that forests support human life, or the grave dangers many forests face.

As more and more people move to cities, becoming oblivious to the plight of rural areas, says the FAO, this problem is growing.

In a statement, José Graziano da Silva, FAO’s Director-General, said that “education is a critical step to safeguarding natural resources for future generations. It is essential for children to learn about forests at an early age.”Education, however, can challenge and reverse this situation. The FAO has identified deficiencies in the way that forest-related issues are taught, describing forestry education as generally “inadequate,” and failing to address emerging challenges. The opportunities to study forestry at all levels, the Organization says, are few and far between.

As part of the global celebrations marking the day, the UN Department of Economic and Social Affairs (DESA) held a special event at UN Headquarters in New York on Thursday, featuring remarks by senior UN and government officials, as well as a panel discussion and general discussion by Member States and UN bodies.

Opening the event, Mr. Hossein Moeini Meybodi, Senior Forest Policy Officer at the UN Forum on Forests, was positive about the effect that education, awareness raising measures and improved forestry management can have on the future of forests: “It is our sincere hope that by sharing positive messages on solutions that exist for forests, and the communities that they support, we can learn from each other and together create a greener, more sustainable world for future generations.”

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Human Rights

UNESCO research on AI’s implications on human rights

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“Artificial Intelligence (AI) is increasingly becoming the veiled decision-maker of our times.  AI has profound implications on human rights ranging from freedom of expression, privacy, to right to equality and participation; a human rights based approach must be mainstreamed to guide the development AI through inclusive multi-stakeholder participation,” said UNESCO programme specialist Xianhong Hu, when she spoke at the 40th Session of the United Nations Human Rights Council last week.

She was presenting the summary findings of UNESCO’s new report Steering AI for Knowledge Societies: A ROAM Perspective, during the panel discussion on Human Rights in the Era of Artificial Intelligence: Exploring the AI development from UNESCO’s prism of Internet Universality, this report shows these principles are intended for all interested stakeholders and AI development should align with human Rights, Openness, Accessibility and Multi-stakeholder governance.

This ROAM approach can serve to guide the ensemble of values, norms, policies, regulations, codes and ethics that govern the development and use of AI – a theme that was echoed by a number of delegates in the room.

“The complexity of AI calls for an interdisciplinary, comprehensive, global and multi-stakeholder reflection on the opportunities and challenges that come with such advanced ICTs,” stated Abdulaziz Almuzaini, Director of the UNESCO Geneva Liaison Office.

UNESCO’s ROAM framework was highly commended by delegates, professionals and academic representatives present during the panel session. “We appreciate our cooperation with UNESCO. AI is transforming our lives, the use of AI in the exploitation of big data is essential. These are all areas we need to protect human rights,” said Omar Zniber, Permanent Representative of Morocco. H.E. Zniber elaborated that AI-generated content sometimes boosts “fake news” and blurs the lines for accountability of produced content. Moreover, AI’s consequences will be felt strongly the Global South, where the potential for digital divide are stronger.

Further insight was provided by Francois Gave, Deputy Permanent Representative of France, regarding France’s position on AI and technology. Stating that AI has been placed on the G7 agenda, he noted that democracy itself could be at stake in the grander scheme of human rights, because some people do not realise that their information is being gathered and retained. At the level of the European Union, many principles surrounding human rights and data privacy exist. However, he held that “now is the time to take things further and work together.”

Dr. Eileen Donahoe, Executive Director, Stanford Global Digital Policy Incubator, moderated the session and pointed that the implication of AI for human rights are vast and multilayered. She believes the existing universal human rights framework including UNESCO’s ROAM principles, can serve as a primary guide for technologist and for policy-makers to help ensure that AI development is beneficial for humanity.

The UNESCO summary report also reveals that privacy is often infringed when AI involves opaque data collection, de-anonymization, third-party data-sharing, and the tracking and profiling of individuals.

 “Increasing Information personalization and content moderation by AI enhance users’ access to information, but at the same time can narrow down the scope of Information and the pluralism of ideas to which they are exposed. Particularly, when Internet intermediaries are pressured to use AI to combat hate speech and disinformation, this can risk removing legitimate content and thus undermine the free flow of information”, stressed UNESCO’s Hu in her presentation.

Vidushi Marda, Legal Scholar from Article 19, stressed that some people may be “forsaken” with the development of AI. She held that the unintended consequences of AI are not being considered as much as they ought to be.

Coining AI as a “trend” word, Jovan Kurbalija, Executive Director and Co-Lead of the United Nations Secretary General High Level Panel on Digital Cooperation, emphasised that using AI in local scenarios is of utmost importance. In addition to the protection of human rights, “human happiness and appreciation” must also be considered.

UNESCO’s new summary report is about ongoing research and  the final publication will elaborate key options for actions for different stakeholders as well as overarching options for shaping the future of AI development. The preliminary brochure is online at https://en.unesco.org/sites/default/files/unesco-steering_ai_for_knowledge_societies.pdf as well as on UNESCO’s webpage dedicated to Artificial Intelligence https://en.unesco.org/artificial-intelligence.

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