Visit to Vienna of the Círculo De Montevideo

Visit to Vienna of the Círculo de Montevideo

Summary of events Organized by the Latin American and the Caribbean Programme

Vienna, 21-24 June 2011

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Vienna, 2012

Contents

Page

I. Introduction ...... 1

II. Vienna Energy Forum ...... 5

III. Latin American round table ...... 7

IV. Presidential reception hosted by Mr. Heinz Fischer ...... 11

V. sessions of the Círculo de Montevideo ...... 13 Open session, 23 June 2011 ...... 13 Closed session, 23 June 2011 ...... 17 Open session, 24 June 2011 ...... 17

VI. UNIDO Industrial Development Board ...... 21 Opening ceremony of the thirty-ninth session of the Industrial Development Board ...... 21 Side event ...... 22

Annexes I . Participation of the Círculo de Montevideo in the Vienna Energy Forum . . . . 23 II . Extract of the programme of the Vienna Energy Forum ...... 25 III . Agenda of the Latin American round table ...... 27 IV . Agenda of the sessions of the Círculo de Montevideo ...... 29 V . List of Círculo de Montevideo members attending its session in Vienna . . . . 31

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I. Introduction

The Director-General of the United Nations Industrial Development Organization (UNIDO) holds regular national and regional meetings with high-level authorities to enhance understanding of the economic and social development needs and politics of Latin America and the Caribbean . These meetings include the UNIDO General Conference, the Industrial Development Board, global forums and smaller meetings .

In this context and at the instigation of the Director-General, the Círculo de Montevideo was invited to Vienna during the Vienna Energy Forum 2011 . The Forum was held at the same time as the Ministerial Meeting on Energy and Green Industry (in preparation for the United Nations Conference on Sustainable Development to be held in June 2012), the UNIDO Industrial Development Board and other energy and development events organized by UNIDO .

Also during the Forum, Mr . Julio M . Sanguinetti, President of the Círculo de Montevideo and former President of Uruguay (from 1985 to 1990 and from 1995 to 2000), led the 15th anniversary celebrations of the organization .

Members of the Círculo de Montevideo in Vienna with UNIDO Director-General Mr. Kandeh K. Yumkella.

A Latin American round table was organized by the Ibero-American General Secretariat and UNIDO, with the support of the Government of Austria, in particular the Ministry of Foreign Affairs .

The topics discussed at the Forum focused on energy and development, in particular: "" Facilitating international dialogue and influencing policy debates related to industry development and energy "" Paving the way for the integration of greener industry in the transition to a green economy and strengthening international cooperation and partnerships

1 Visit to Vienna of the Círculo de Montevideo

"" Paving the way and contributing to achieving universal access to energy and increasing energy efficiency "" Using conference outcomes as a basis for shaping and creating UNIDO technical cooperation programmes

All debates and sessions in which the Círculo de Montevideo was involved took place at the Hofburg Palace in Vienna from 22 to 24 June 2011, with the exception of the thirty-ninth session of the Industrial Development Board, which was held at the Vienna International Centre .

The visit of the Círculo de Montevideo to Vienna was organized by UNIDO and the Government of Austria and, on this occasion, was also organized and supported by the United Nations Development Programme (UNDP) and the Ibero-American General Secretariat .

The Círculo de Montevideo was created in 1996 with the aim of identifying new and emerging opportunities in an increasingly globalized market economy . Its members include current and former presidents and Heads of State, as well as presidents and directors of leading national and international financial, development and social institutions .

Under the leadership of Julio M . Sanguinetti, the Círculo de Montevideo became a permanent forum for discussion among academics, policymakers and leaders of international organizations on meeting, reviewing and identifying strategies and means for promoting sustainable industrial development in Latin America and the Caribbean and beyond .

Fifteen members of the Círculo de Montevideo represented the organization at the Vienna Energy Forum . Among these members were four former presidents and one vice-president, as well as other dignitaries and chief executive officers from the private sector .

Presidential reception. Mr. Heinz Fischer, President of Austria (left), with the UNIDO Director-General, Mr. Kandeh K. Yumkella (right).

2 I. Introduction

Key topics covered during the discussions included the obstacles posed by the recent financial crisis; challenges to overcoming unfair distribution of wealth; increasing competition and competitiveness; and improving the harnessing of local resources through increased regional cooperation in Latin America . The Círculo de Montevideo discussions aimed at identifying ways of and strategies for promoting sustainable industrial development in Latin America and the Caribbean .

Acknowledging that today’s energy issues touch upon every aspect of sustainable develop ment, the discussions linked energy and development issues . The United Nations system, in particular specialized agencies such as UNIDO, could play a role in promoting sustainable productive sectors . In partnership with the Government of Austria and its regional partners, UNIDO could make use of its specialized industrial services by facilitating and promoting instruments and knowledge related to industrial development issues through the strengthening of capacities in the national productive sectors in the region .

Further discussions covered improving the transition towards large-scale renewable and clean energy and tackling poverty in a targeted way with the aim of achieving universal and sustainable access to energy and development for all .

II. Vienna Energy Forum

The Vienna Energy Forum 2011, whose topic was “Energy for all—time for action”, was organized by UNIDO, the Austrian Federal Ministry for European and International Affairs and the International Institute for Applied Systems Analysis . It brought together more than 1,400 participants, including policymakers, civil servants, scientists, energy experts, and members of non-governmental organizations, from over 100 countries . More than 50 members of Government and several former Heads of State attended .

The purpose of the Forum was to explore the challenges of the twenty-first century from an energy perspective . It aimed at taking a holistic look at global energy challenges and at promoting debates and finding consensus in order to create action plans related to sustainable development . The meeting attracted extensive media coverage, including live broadcasts by the British Broadcasting Corporation .

Former Governor of California Mr. Arnold Schwarzenegger’s speech at the opening ceremony of the Vienna Energy Forum.

Mr. Julio M. Sanguinetti, President of the Círculo de Montevideo and former President of Uruguay, delivering his speech during the opening ceremony of the Vienna Energy Forum.

Three members of the Círculo de Montevideo participated in the opening ceremony: Mr . Julio M . Sanguinetti; Mr . Enrique Iglesias, Secretary-General of the Ibero-American General Secretariat; and Ms . Rebeca Grynspan, United Nations Under-Secretary-General and UNDP Associate Administrator .

Mr . Sanguinetti stated that energy development required adequate investment . He stressed that such investment needed an appropriate environment, consisting of political stability, legal security and adequate social conditions .

5 Visit to Vienna of the Círculo de Montevideo

Mr . Iglesias underlined the importance of having appropriate financial regulatory systems . He lamented the lack of financial mechanisms to support renewable energy, noting that the use of subsidies encouraged the extraction of fossil fuels .

Ms . Grynspan stated that, in order to accelerate international cooperation to overcome extreme poverty in sub-Saharan Africa, Governments needed capacity-building support to establish the necessary policy frameworks . She noted that 90 per cent of clean energy investment was currently made in G20 countries, with only 10 per cent flowing to the rest of the world, and emphasized the need to assist developing countries in attracting the investment necessary to establish the use of clean energy .

The Círculo de Montevideo members listed below who participated in the discussions are also actively involved in the development and energy fields:

"" Mr . Manuel Marín is the Chairman of Iberdrola, a leading energy company in Spain and the world’s main wind power producer, and former President of the Congress of Deputies of Spain . "" Mr . Alejandro Bulgheroni was the Director of Allis-Chalmers Energy Inc . from 2006 to 2011 and President of Pan American Energy . "" Mr . Enrique Iglesias, Secretary-General of the Ibero-American General Secretariat, has worked with energy and investment projects and development for more than 20 years in Latin America and the Caribbean . "" Mr . Ricardo Lagos, former President of Chile, was a United Nations Special Envoy on Climate Change in 2007 . "" Ms . Rebeca Grynspan, former Vice-President of Costa Rica, has participated in high-level discussions related to the Millennium Development Goals and in energy groups and meetings such as the Bloomberg New Energy Finance Summit 2011 round-table day on energy access and climate finance .

Ms. Irene Freudenschuss-Reichl, Director-General of the Austrian Development Cooperation, Federal Ministry for European and International Affairs, during the opening ceremony of the Vienna Energy Forum.

6 III. Latin American round table

After a welcome speech by Mr . Kandeh K . Yumkella, the Latin American round table, entitled “Today’s Latin America: political and business opportunities”, was opened by the Austrian Vice-Chancellor and Federal Minister for European and International Affairs, Mr . Michael Spindelegger . The panellists were Mr . Sanguinetti and Mr . Iglesias, and the discussion was moderated by Ms . Grynspan .

Welcome speech by UNIDO Director-General, Mr. Kandeh K. Yumkella, at the Latin American round table.

In his welcome speech, Mr . Yumkella thanked all the participants from the public and private sectors for attending the event . He also acknowledged the contribution of Mr . Iglesias, Ms . Grynspan and the Austrian Government to the organization of the round table .

He said that the world had witnessed cyclical patterns of economic crisis and that numerous paths to economic recovery existed . In that context, it was vital to identify demand patterns and assess the particular needs of regions . Trade was a prerequisite for achieving better equality and improved health standards, in particular in Latin America, which was a region with a high number of resources, many of which remained unexploited .

Together with new technologies, Latin America could greatly influence future global developments . South-South cooperation formed part of the current initiatives promoted by Latin American countries as a way of facilitating exchanges of experiences and knowledge .

In his speech, Mr . Spindelegger highlighted the accomplishments of past cooperation and agreements and mentioned new relations between Latin America and Europe . He said that Latin America was a continent that had rapidly returned to the high economic growth rates that it had enjoyed before the financial crisis and he noted its success in reducing poverty and, for the first time in history, in improving inequalities .

7 Visit to Vienna of the Círculo de Montevideo

Welcome speech by Mr. Michael Spindelegger, Vice-Chancellor and Federal Minister for European and International Affairs, at the Latin American round table.

He also mentioned the growing importance of the Latin American and Caribbean region to Austria and the European Union, as the regions shared a rich common history, languages, values, cultures and world vision . He highlighted the results achieved at the European Union-Latin American and the Caribbean Madrid Summit in 2010, such as the trade agreements reached with Colombia, Peru and Central America and the creation of the Latin America Investment Facility .

Mr . Spindelegger mentioned the agreement reached during the Summit on the creation of the European Union-Latin America and Caribbean Foundation, in which Austria would play an important role . Ms . Benita Ferrero-Waldner, an Austrian, would be the first President of the Foundation, and Mr . Spindelegger described her nomina- tion as “an excellent choice” .

The Foundation would focus on finding new areas for cooperation between Governments and civil societies, leading to strategic partnerships between the European Union and Latin America . In that respect, the Latin American and Caribbean region was also embarking on a new era of strategic cooperation with Austria . Increased collaboration with UNIDO and other organizations could be the driving force for enabling increased cooperation, particularly in the fields of energy and development and the establishment of new companies .

Ms . Grynspan stressed the importance of the democratization process in the region . In that context, Latin American countries played a major role in shaping the economic and socio-economic aspects of the future world order . Challenges remained, including the reduction of poverty and inequality, which was essential to fostering dynamic growth . The democratization process needed to be further consolidated, and increased support was key to assisting countries in overcoming challenges such as the Argentine financial crisis and the economic crisis of 2008 . As shown by the situations in Brazil and Costa Rica, progress was possible . However, one model was not always easily applicable to other countries .

8 III. Latin American round table

Advances in technology had played a key role in reducing inequalities . In that respect, Ms . Grynspan said that the development of small and medium-sized enterprises could generate job opportunities for everyone, especially young people, and create hope for a better economic future .

New business opportunities were opening up in Latin America and they had turned the continent into a region experiencing economic growth and one with a special position in the developing world .

Ms . Grynspan stressed the seriousness of the unemployment problem faced by Latin America and said that development and economic growth needed to be accompanied by improved opportunities for all . In general in Latin America, and in comparison to other periods, the situation with respect to economic and social institutions had improved, and there was every indication that such progress would continue .

Mr . Iglesias highlighted the growing importance of foreign investment in Latin America . He stated that the region was blessed with various important resources, such as water, petrol and copper, which attracted foreign investment .

Mr. Enrique Iglesias, Secretary-General of the Ibero-American General Secretariat.

He emphasized the fact that the economy and investments would continue to grow, but said that the question remained about how long that growth would last . Currently, it depended on communication between private businesses, improved transparency, a free press and the involvement of public opinion, as well as increased democracy .

In conclusion, he said that Latin America needed a paradigm shift in the area of development growth, because external support was not enough: State education reform was required .

Mr . Sanguinetti underlined the problems caused by inadequate education systems and poor-quality education . Education was one of the main problems for Latin America and there was a need to retrain staff in the sector . Drug trafficking was an important issue

9 Visit to Vienna of the Círculo de Montevideo

that had to be dealt with: he stated that Latin American countries had improved their approaches to security and political concerns, but cultural values had to be taken into account as well if drug trafficking was to be effectively addressed .

He highlighted that Latin America needed a new paradigm for growth: education and innovation and creating new job opportunities should be priorities in the State reform process .

10 IV. Presidential reception hosted by Mr. Heinz Fischer

A presidential reception was hosted by the President of Austria, Mr . Heinz Fischer, on 22 June 2011 .

After Mr . Fischer’s welcome speech, Mr . Sanguinetti and Mr . Yumkella welcomed the members of the Círculo de Montevideo to the reception .

Issues related to the importance of relations between Latin America and the Caribbean and the European Union were mentioned . Mr . Fischer underlined the potential of possible strategic cooperation between the Latin American and Caribbean region and Austria . In addition, increased cooperation with organizations such as UNIDO could exploit the great potential of the region .

In addition to the members of the Círculo de Montevideo, approximately 70 selected guests from the Austrian Government, Federal Ministry for European and International Affairs, the Group of Latin American and Caribbean States, permanent missions to UNIDO, ministries of energy of Latin American countries, UNDP staff and UNIDO staff from the Latin America and the Caribbean Programme were present .

Welcome speech by the Austrian President, Mr. Heinz Fischer, to Círculo de Montevideo members at the presidential reception.

V. sessions of the Círculo de Montevideo

The sessions of the Círculo de Montevideo took place on 23 and 24 June . There were two open sessions, in the mornings of 23 and 24 June, and one closed session, in the afternoon of 23 June .

Key issues discussed during the sessions were industrial development in Latin America, new energy sources and preservation of the environment, business globalization, corporate social responsibility and global public goods .

Open session, 23 June 2011

The panellists for the first open session of the Círculo de Montevideo were Ms . Rebeca Grynspan, Mr . Enrique Iglesias, Mr . Heraldo Muñoz, Mr . Ricardo Lagos and Mr . Felipe González . The discussion was moderated by Mr . Julio M . Sanguinetti .

The topics covered during the session were: "" Integration and social cohesion "" State, public and social policies "" Access to energy sources and the preservation of the environment as a necessary condition for enhancing public goods "" The State as guarantor of an independent justice system and equitable growth "" “Fifteen years later: new paths for Latin America”

Círculo de Montevideo’s open session, 23 June. Mr. Felipe González (far left), followed by Mr. Ricardo Lagos, Mr. Julio M. Sanguinetti, Ms. Rebeca Grynspan, Mr. Heraldo Muñoz and Mr. Enrique Iglesias.

13 Visit to Vienna of the Círculo de Montevideo

Mr . Sanguinetti presented a summary of the global challenges of the last few decades, including those related to changes of political regimes, wars, the disappearance of political parties, terrorist movements, new concepts of security, economic changes, and the fall of the United States dollar and its effects around the world . He linked all those global changes to the transition and growth that Latin America had undergone during the last few decades .

Ms . Grynspan acknowledged that, contrary to her initial beliefs, the negative effects of the financial crisis had not been as serious as expected in Latin America, although challenges remained on how to overcome the crisis in terms of the social welfare structures . However, she was confident that Latin America had been well prepared on the economic level, owing to the solid economic basis it had established during the previous few decades .

She considered that the consequences of the crisis could have been worse . Latin America was the continent with the most inequalities in the world but, for the first time, growth had increased in 12 of its 17 countries . Two reasons could explain the reduction of inequality: firstly, the direct intervention of the State and, secondly, the expansion of an improved education system for all .

Three major issues remained in terms of continuing to make progress in the future: social inclusion, income inequality and social mobility .

She said that gaps still existed in access to education, particularly for young people aged between 18 and 24 who were not studying or working . They were increasingly turning to crime and delinquency . Early pregnancy was a big problem in Latin America and was triggering increases in poverty in some areas .

Mr . Heraldo Muñoz, Director for the UNDP Regional Bureau for Latin America and the Caribbean, pointed out that the State had regained a central presence in Latin America . In fact, he stated, Latin America had resisted the global crisis better than other regions as a result of State regulation of the banking system and counter-cyclical policies . The neo-liberal thinking of the 1980s and 1990s, which had promoted a reduction in the role of the State, had declined . Mr . Muñoz also pointed out that the State should emphasize the promotion of human dignity, social welfare, and political, economic and social rights . Inequality and unemployment were the most urgent challenges that needed to be overcome in Latin America . Democracy faced problems because of weak institutions, crime, corruption and socio-economic inequalities .

Mr . Iglesias stated that the paradigm of economic development should be based on natural capital: green growth that formed the basis for productivity . He said that Latin America had numerous raw materials: over 15 per cent of the world’s fertile lands, 25 per cent of its forests, 50 per cent of its copper reserves and 33 per cent of its drinking water . Given that 60 million people had no access to drinking water, the topic of water remained fundamental .

14 V. sessions of the Círculo de Montevideo

With regard to energy access, there were two major problems: firstly, 30 million people had no access to electricity; a problem which could be overcome through an investment of between 7 million and 8 million United States dollars . Secondly, 40 per cent of all energy was used in homes . Domestic energy efficiency was therefore an issue of major importance and represented a big challenge to the task of improving energy efficiency .

Progress had been made, but more efforts were required, in particular in developing new technologies and research capabilities to support technological efforts, improve social equality and protect the environment more effectively . The development of sustainable energy would enable the countries of Latin America and the Caribbean to enter the category of developed countries in the same way as Chile had done . That transition, however, could not be based exclusively on external factors . Hence, the successful example of the Asian region must be further and comprehensively analysed, and the best ways of effectively harnessing Asian investment in development should be further identified .

Mr. Felipe González (left), Mr. Ricardo Lagos (centre) and Mr. Julio M. Sanguinetti (right).

Mr . Ricardo Lagos, former President of Chile, explained that equality and standards of living had improved since the Second World War . The number of people living below the poverty line had decreased from 42 per cent to 30 per cent, but there were still numerous issues that needed to be tackled to further decrease that proportion .

Latin America had to overcome five core challenges: firstly, States should be the main actor in policy; secondly, education had to be improved, with inequalities reduced in the provision of primary education so that every child could benefit from the same opportunities and inequality could be eradicated; thirdly, the State should act as a guarantor of rights, peace and equality and citizens should accept their responsibilities and deserve all the rights and the privileges accorded to them; fourthly, the distribution of growth had to be ensured through the adequate use of investments and/or funds; and, lastly, green industry and renewable energy had to become a priority for every country .

15 Visit to Vienna of the Círculo de Montevideo

Mr . Felipe González, former Prime Minister of Spain, expressed his concern about the crisis in Europe and United States . He said that every developed country should be concerned about the crisis and its effects because if it was not resolved, another, even bigger, crisis could affect Western economies . He noted that, for the next 25 years, Western countries would be condemned to pay off what they had spent over the last 25 years, while emerging economies had managed to earn and save .

Mr. Felipe González, former Prime Minister of Spain, during the debate sessions of the Círculo de Montevideo.

Mr . González said that development problems in Latin America were mainly linked to difficulties in distributing growth: there was little equality in the region . The essential factor for development was predictability . Predictability encouraged confidence: countries whose economic and political situations were unpredictable faced difficulties in generating investment .

In addition to Círculo de Montevideo members and representatives of the Austrian Government and private sector, the session was attended by numerous members of the Group of Latin American and Caribbean States in Vienna (GRULAC) . Among them was the GRULAC’s President, Mr . Freddy Padilla De León, also the Permanent Representative of Colombia to UNIDO .

Mr. Freddy Padilla De León (left), former President of Colombia, Mr. Belisario Betancur (centre) and Mr. Ramón Quiñones, Permanent Representative of the Dominican Republic to UNIDO (right).

16 V. sessions of the Círculo de Montevideo

Mr. Carlos Magariños, former Director-General of UNIDO (left), Permanent Representative of Uruguay to UNIDO, Mr. Carlos A. Barros Orreiro (centre) and Ms. Inés Gamio, from the Permanent Mission of Uruguay (right)

Closed session, 23 June 2011

To celebrate the 15th anniversary of the Círculo de Montevideo, 15 of its members attended a closed session entitled “Quince años después. Un mundo en tránsito” (Fifteen years later . A world in transition) .

Open session, 24 June 2011

The panellists for the open session of the Círculo de Montevideo on 24 June 2011 were Mr . Manuel Marín, Mr . Jose A . Ocampo, Mr . Carlos Magariños, Mr . Alejandro Bulgheroni and Mr . Natalio Botana . The discussion was moderated by Mr . Julio M . Sanguinetti .

The topics discussed included the following: "" Globalization in business and governance "" Institutional and international structure for global public goods "" Financial structure, a necessary guarantee "" Perspectives on energy and development

Mr . Manuel Marín discussed topics relating to business globalization and corporate responsibility . He said that globalization was an irreversible change on a huge scale, offering many potential opportunities that should be seized . At the same time, however, it involved several risks . He stated that Europe was faced with the problem of reaching agreement on corporate social responsibility . From the private sector’s perspective, social responsibility should be voluntary, since the introduction of bureaucracy could hinder

17 Visit to Vienna of the Círculo de Montevideo

Círculo de Montevideo’s open session, 24 June 2011. Mr. Kandeh K. Yumkella greeting Mr. Julio M. Sanguinetti.

efficiency and growth . However, from the perspective of trade unions and non- governmental organizations, voluntary initiatives were not enough . He further stated that companies should understand that economic, social and environmental consequences needed to be included into all decision-making processes .

He talked about the values that determined working conditions in China, human rights and methods for implementing a fairer working environment . He proposed that human rights, environmental concerns and democratic values should be linked to development and become part of the social responsibility of companies . A key difficulty was uphold- ing a responsible attitude towards business implementation when others did not follow the same rules out of fear of losing their companies . New business alliances between Latin America and countries in Asia should not interfere with or impede efforts to uphold human rights, particularly when creating business agreements .

Mr . Carlos Magariños discussed issues related to the structure of international institutions . He focused on the worldwide financial crisis and explained that globalization had had some unexpected results . He stated that the world was less globalized than generally believed . He quoted statistics published in several reports and noted that most of them showed that cross-border trade was below commonly expected levels . For example, foreign direct investment levels fluctuated between 8 per cent and 16 per cent, implying that 84-92 per cent of all investment was domestic . For globalization to continue, a proper set of global public goods, necessary for democracy and economic growth, was required . Mr . Magariños stated that those who had found success in globalization had done so through forging their own path rather than applying one-size-fits-all policies . The regulating role of the international institutions was essential to achieving better economic performance . He underlined the importance of public goods with regard to environmental issues such as the protection of biodiversity and the environment and the production of food and energy .

18 V. sessions of the Círculo de Montevideo

Mr . Jose A . Ocampo, former Under-Secretary-General for Economic and Social Affairs of the United Nations Secretariat, explained what he referred to as “the most profound issue of the worldwide financial situation”: the lack of provision of global public goods .

Círculo de Montevideo’s open session, 24 June 2011. Mr. Alejandro Bulgheroni.

The lack of financial regulation was a major reason for the vulnerabilities that had been exploited prior to the global financial crisis . In relation to global monetary matters, which fell under the purview of the International Monetary Fund, the international community had also failed to avoid the massive global payment imbalances that had built up prior to the crisis .

A fundamental problem in the financial sector was control over financial groups, including in the United States, a country in which the financial sector exercised significant economic and political power . Regulatory deficits, which were partly cor- rected during the crisis, could be a reflection of that fact . In Europe, the major issue was not fiscal deficit but the current financial crisis, which involved banks as well as countries . Failure to handle the situation properly would result in another global financial crisis .

According to Mr . Alejandro Bulgheroni, development depended on energy: no com munity could be developed without access to energy . States had always focused on the need to supply their countries with energy in the long term and there had been 90 years of development as a result of the availability of cheap energy . However, energy prices had risen and it was increasingly difficult to find cheap energy .

In closing the session, Mr . Botana and Mr . Bulgheroni commented on the strong con- nection between development and energy, stating that new and better sources of energy should improve the implementation of energy distribution, which was necessary to encourage economic growth and enhance democracy in developing countries . Two key

19 Visit to Vienna of the Círculo de Montevideo

points were identified during the session: firstly, the question of whether social responsibility should be a voluntary decision or if it should be implemented and seen as a national responsibility; and, secondly, the integration of global public goods in emerging economies and developing countries .

Círculo de Montevideo session, 24 June 2011. (From left) Mr. Manuel Marín, Mr. Natalio Botana, Mr. Julio M. Sanguinetti, Mr. Carlos Magariños, Mr. Jose A. Ocampo and Mr. Alejandro Bulgheroni.

20 VI. UNIDO Industrial Development Board

The Industrial Development Board comprises 53 members, elected for a four-year term on a rotational basis from all member States . It reviews the implementation of the work programme, the regular and operational budgets and makes recommendations to the UNIDO General Conference on policy matters . The thirty-ninth session of the Board coincided with the Vienna Energy Forum .

Several of the members of the Círculo de Montevideo, including Mr . Iglesias and Ms . Grynspan, participated in the opening ceremony of the thirty-ninth session . Mr .Ocampo was actively involved in the side event entitled “Making the most of a commodity boom: the case for industrial diversification” .

Opening ceremony of the thirty-ninth session of the Industrial Development Board

The Industrial Development Board took place in conjunction with the Vienna Energy Forum 2011, the Ministerial Meeting on Energy and Green Industry and the sessions of the Círculo de Montevideo . The participation of numerous ministers and delegations in those events was an indication of the high priority accorded by many countries to the issues under discussion . In that regard, and on behalf of Austria, which was co-hosting the events, the temporary President, Mr . Böck, welcomed the positive and enthusiastic response of the UNIDO Member States and the opportunity that the session of the Board would afford to hear a number of speakers .

After the statements made by the President of the Board, UNIDO Director-General Mr .Yumkella, Mr . Puna (Prime Minister of the Cook Islands), Mr . Adada (Minister for Industrial Development and the Promotion of the Private Sector of the Republic of the Congo), Mr . Dosso (Minister for Industry of Côte d’Ivoire), Mr . Baldé (Minister for Mining, Industry and Small and Medium Enterprises of Senegal), Mr . Kreimerman (Minister of Industry, Energy and Mining of Uruguay) and Ms . Barbut (Chief Executive Officer of the Global Environment Facility), two members of the Círculo de Montevideo, Mr . Iglesias and Ms . Grynspan, made their statements .

Mr . Iglesias, speaking on behalf of the Círculo de Montevideo, expressed appreciation for the contributions of UNIDO in the areas of the green economy, renewable energy and climate change . The meeting was taking place in the context of a growing need for international cooperation on environmental issues, a mission that could best be accomplished by the United Nations system .

Ms . Grynspan noted that her presence at the meeting was an indication that the United Nations system was becoming more coherent and integrated, although more work needed to be done in that regard . Efforts needed to be stepped up to further integrate

21 Visit to Vienna of the Círculo de Montevideo

the specialized agencies in a more systematic way in the country teams and in the services offered to countries . There was a need to improve the quality of the United Nations development assistance frameworks, to make them more strategic and more responsive to countries’ needs, so that they were part of a United Nations system that delivered as one and was more effective, faster and results-driven . There was a need to build on the experiences and lessons learned in the pilot countries for the “Delivering as One” initiative, responding to the requests of Governments . UNDP, with its key role in the United Nations coordination system and as the Chair of the United Nations Development Group, was fully committed to the initiative and was doing all it could to support it . In that context, she expressed appreciation for the Director-General’s leadership of UN-Energy . His enthusiasm and commitment to universal energy access were commendable and were transforming cooperation on energy issues; he had managed to place universal energy access on the international agenda .

Side event

Mr . Ocampo expressed his gratitude at having been invited by the UNIDO Director-General to participate in the meeting . His speech focused on industrial diversification in Latin America . He said that a myth had developed regarding the performance of Latin America: in reality, Latin America, together with the United States of America, had experienced the fastest growth in the world during the early phase of industrialization from 1929 to 1950 . The collapse of world trade had led the region into a successful phase of industrialization . The subsequent period, from 1950 to 1980, had witnessed equally successful growth . Good examples included Brazil and Mexico, although disappointing growth had been experienced in the Southern Cone . Regional growth had rocketed by 5 .5 per cent each year during that period, the fastest growth rates the region had ever witnessed; only during the 2003-2007 boom had Latin America witnessed equally high rates . In contrast, since the 1980s, growth in the region had been slower, with the major cause being the deindustrialization process, which had started in the mid-1970s in some countries and in the 1980s in others .

The Latin America and the Caribbean Programme team, which supported the visit of the Círculo de Montevideo to Vienna. From left: Ms. María del Villar Romano, Ms. Beatriz Ospina-Aragón, Ms. Judy Vyshniauskas-Gómez, Mr. Víctor Hinojosa-Barragán, Mr. Julio M. Sanguinetti, Ms. Elisa Whitehouse and Ms. Sophie Bonnet.

22 Annex I.

Participation of the Círculo de Montevideo in the Vienna Energy Forum

21 June: Vienna Energy Forum

Three Círculo de Montevideo members attended and participated in the opening and social events: Mr . Julio M . Sanguinetti, Ms . Rebeca Grynspan and Mr . Enrique Iglesias .

22 June: Latin American round table

Moderator: Ms . Rebeca Grynspan Panellists: Mr . Enrique Iglesias and Mr . Julio M . Sanguinetti

Reception at the Presidential Office hosted by Mr. Heinz Fischer for Círculo de Montevideo members.

Mr . Julio M . Sanguinetti, President of the Círculo de Montevideo, and the Director-General of UNIDO attended the reception at the Presidential Office, together with guests from the diplomatic and business community and UNIDO .

23 June: Open Círculo de Montevideo session

Moderator: Mr . Julio M . Sanguinetti Panellists: Ms . Rebeca Grynspan, Mr . Heraldo Muñoz, Mr . Enrique Iglesias, Mr . Ricardo Lagos and Mr . Felipe González

Closed Círculo de Montevideo session

Panellists: Mr . Heraldo Muñoz, Mr . Enrique Iglesias, Mr . Ricardo Lagos, Mr . Felipe González, Mr . Manuel Marín, Mr . José A . Ocampo, Mr . Carlos Magariños, Mr . Alejandro Bulgheroni, Mr . Natalio Botana, Mr . Enrique Manhard and Mr . Belisario Betancur

23 Visit to Vienna of the Círculo de Montevideo

23 June: UNIDO International Development Board

Opening statements by: Ms . Rebeca Grynspan and Mr . Enrique Iglesias Statement at side event by: Mr . Jose A . Ocampo

24 June: Open Círculo de Montevideo session

Moderator: Mr . Julio M . Sanguinetti Panellists: Mr . Manuel Marín, Mr . José A . Ocampo, Mr . Carlos Magariños, Mr . Alejandro Bulgheroni and Mr . Natalio Botana

Press conference

Interviews: Mr . Julio M . Sanguinetti and Mr . Natalio Botana

24 Annex II

Extract of the programme of the Vienna Energy Forum

www.viennaenergyforum.org

PROGRAMME Tuesday, 21 June 2011

8.30-10:00 Opening ceremony—Großer Redoutensaal and Kleiner Redoutensaal

Moderator Ms . Irene Freudenschuss-Reichl, Director-General, Austrian Development Cooperation, Austrian Federal Ministry for European and International Affairs

Welcome address Mr . Johannes Kyrle, Secretary General for Foreign Affairs, Austrian Federal Ministry for European and International Affairs Mr . Detlof von Winterfeldt, Director, International Institute of Applied Systems Analysis Mr . Kandeh K . Yumkella, Director-General, United Nations Industrial Development Organization

25 Visit to Vienna of the Círculo de Montevideo

Opening statements Mr . Olusegun Obasanjo, former President of Nigeria Mr . Julio M . Sanguinetti, Former President of Uruguay Mr . Henry Puna, Prime Minister, Cook Islands Ms . Monique Barbut, CEO and Chairperson, Global Environment Facility

Opening keynote Mr . Arnold Schwarzenegger, former Governor of California, United States address of America

10.00-10.45 Pre-launch of the Global Energy Assessment

Keynote presentation Global Energy Assessment Team

Commentators Mr . Abdul Rahim Hashim, President, International Gas Union Ms . Elizabeth Dipuo Peters, Minister of Energy, South Africa

11.15-12.15 High-level panel I

Moderator Ms . Zeinab Badawi, BBC presenter

Panellists Mr . Mohammaed bin Dhaen al-Hamli, Minister of Energy, United Arab Emirates Mr . Suleiman J . Al-Herbish, Director-General, OPEC Fund for International Development Mr . Marc Perrin de Brichambaut, Secretary-General, Organization for Security and Cooperation in Europe Ms . Rebeca Grynspan, Associate Administrator, United Nations Development Programme Mr . Friedrich Kitschelt, Director-General for Africa and Global and Sectoral Issues, Ministry for Economic Cooperation and Development, Germany Mr . Edison Lobao, Minister of Mines and Energy, Brazil Mr . Fabricio Hernández Pampaloni, Secretary of State for Energy, Ministry of Industry, Tourism and Trade, Spain

12.15-13.15 High-level panel II

Moderator Mr . Rajendra Pachauri, Chairman, Intergovernmental Panel on Climate Change Panellists Mr . Ogunlade Davidson, Minister for Energy and Water Resources, Sierra Leone Mr . Abdalla Salem El-Badri, Secretary General, Organization of the Petroleum Exporting Countries Mr . Enrique Iglesias, Secretary General, Ibero-American General Secretariat, former President of the Inter-American Development Bank Mr . Timur Ivanov, Director-General, Russian Energy Agency Mr . Marcin Korolec, Undersecretary of State, Polish Ministry of Economy Mr . Alessandro Ortis, Energy Advisor, Ministry of Foreign Affairs, Italy Mr . Jose Antonio Meade Kuribrena, Secretary of Energy, Mexico Mr . Nobuo Tanaka, Executive Director, International Energy Agency

26 Annex III

Agenda of the Latin American round table

Latin American round table Vienna, 22 June 2011

Time Event Location

14 .00 Registration

14 .30 Latin American round table Hofburg Meeting with the diplomatic and business communities in Radetzkysaal II Austria

16 .30 Welcome by Director-General, Mr . Kandeh K . Yumkella Entrance: Opening statements by Mr . Michael Spindelegger, Vice- Botschafterstiege/ Chancellor and Federal Minister for European and Schweizerhof International Affairs of the Republic of Austria Moderator: Ms . Rebeca Grynspan “Latin America today: the political context” Mr . Julio M . Sanguinetti “Business Opportunities” Mr . Enrique Iglesias

Annex IV

Agenda of the sessions of the Círculo de Montevideo Quince años después: un mundo en tránsito 23-24 June, 2011

Thursday 23 June

9 .00 Registration

9 .30 Open session Hofburg Opening statement by Mr . Julio M . Sanguinetti, President Geheime Ratstube of the Círculo de Montevideo

10 .30-12 .30 “Integration and social cohesion” Hofburg Ms . Rebeca Grynspan Geheime Ratstube “State, public policy and social policy” Mr . Heraldo Muñoz “Access to energy sources and the preservation of the environment: necessary conditions for enhancing the public good” Mr . Enrique Iglesias “The state as guarantor, an independent justice system and equitable growth” Mr . Ricardo Lagos “Fifteen years later: new paths for Latin America” Mr . Felipe González Question and answer session

12 30. Official photograph of the Círculo de Montevideo

13 .00 Lunch

14 .30-18 .00 Closed session: debate Hofburg Participants: members, hosts, permanent observers, affili- Geheime Ratstube ated observers On the social level: definition of the necessary coordination and mechanisms that ensure the involvement of both the managers and the beneficiaries On the level of agreement between States: characteristics that an institutional system should have to enhance “globalization governance” and the role of its principal actors in terms of enhancing the integration of global public goods

29 Visit to Vienna of the Círculo de Montevideo

On the statistical level: obtaining evidence that supports the argument On the technical level: elaboration of appropriate plans and programmes Speakers: 1 . Mr . Alejandro Bulgheroni 2 . Mr . Belisario Betancur 3 . Mr . Carlos Magariños 4 . Mr . Enrique Iglesias 5 . Mr . Enrique Manhard 6 . Mr . Felipe González 7 . Mr . José Antonio Ocampo 8 . Mr . Julio M . Sanguinetti 9 . Mr . Heraldo Muñoz 10 . Mr . Manuel Marín 11 . Mr . Natalio Botana 12 . Ms . Rebeca Grynspan 13 . Mr . Ricardo Lagos

Friday 24 June

9 .00 Open session Hofburg Geheime Ratstube “Globalization in business and governance” Mr . Manuel Marín “Institutional and international structure of integration for global public goods” Mr . Carlos Magariños “Financial structure, a necessary guarantee” Mr . José Antonio Ocampo “Perspectives on energy and development” Mr . Alejandro Bulgheroni “The crisis of representation” Mr . Natalio Botana

13 .00 Reception Hofburg Geheime Ratstube

14 .00 Press conference Hofburg Geheime Ratstube

19 .00 Reception to celebrate the 15th anniversary of the Foundation Círculo de Montevideo

30 Annex V

List of Círculo de Montevideo members attending its session in Vienna

Name Previous/current post Residence

Belisario Former President of Colombia (1982-1986); currently the Vice- Bogotá Betancur President of the Club of Rome for Latin America, President of the Pan American Health Organization, and President of the Santillana Foundation for Latin America . Also a founding member of the Pontifical Academy of Social Sciences and a member of the Club of Madrid .

Natalio Argentine political scientist; former professor at the Complutense, Buenos Botana Oxford and Torcuato Di Tella universities, among others . Author Aires and columnist at La Nación .

Felipe Former President of Spain (1982-1996) . Member of the Club Madrid González of Madrid .

Enrique Former President of the Inter-American Development Bank . Madrid Iglesias Currently Secretary-General of the Ibero-American General Secretariat .

Ricardo Former President of Chile (2000-2006) . Teaches at the Watson Santiago Lagos Institute for International Studies, Brown University .

Manuel Former President of the Congress of Deputies of Spain (2004- Madrid Marín 2008) and long-time member of the European Commission .

Enrique Businessman . Montevideo Manhard

Julio M . Former President of Uruguay (l985-l990, 1995-2000) . President Montevideo Sanguinetti of the PAX Institute, member of the InterAcción Council and President of the Circulo de Montevideo .

Rebeca Under-Secretary-General and Associate Administrator of the New York Grynspan United Nations Development Programme (UNDP) . Former Director of the UNDP Regional Bureau for Latin America . Vice- President of Costa Rica from 1994 to 1998 .

Alejandro President of Pan American Energy LLC, Executive Vice- Buenos Bulgheroni President of the Bridas Corporation and Bridas Energy Aires International, Ltd .

Carlos Former Director-General of UNIDO . Associate member of St . Buenos Magariños Antony’s College, University of Oxford . Aires

31 Visit to Vienna of the Círculo de Montevideo

Heraldo Assistant Secretary-General, Assistant Administrator and New York Muñoz UNDP Regional Director for Latin America and the Caribbean, former Chilean Ambassador to the United Nations .

José A . PhD in economics from Yale and Columbia University . Former Bogotá Ocampo United Nations Under-Secretary-General for Economic and Social Affairs; former Executive Secretary of the Economic Commission for Latin America and the Caribbean; Minister of Finance and Public Credit and Chairman of the Board of Banco de la República (Central Bank of Colombia) .

Círculo de Montevideo secretariat staff attending its session in Vienna Isabel Vázquez d’Elía Carlos Guariglia

Printed in Austria V.11-86520—January 2012

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