G20's actions should speak louder than words

You don’t have to look very far in international politics these days to find transparency… at least the word itself has often been uttered by various politicians and leaders over the last few years.

Expenses scandals, murky banking practices and high-profile Ponzi schemes have meant that more than ever before there is a movement calling for the disinfecting properties of sunlight to shine in on these dark deals. This movement is calling for the revenues of such deals to benefit the majority of citizens, not just privileged elites.

That is great news, and the fact that transparency has become an increasingly popular idea and widely used term is something that we should all welcome.

However, here at ONE we know that actions speak louder than words.

Transparency revolution

2013 is a year of enormous opportunity, as the political will behind this transparency revolution could be turned into serious, meaningful action that benefits millions around the world.

At the G-8 Summit in Lough Erne, based around David Cameron’s ambitious agenda of “tax, trade and transparency,” G-8 leaders agreed a plan which they claimed would rewrite the rules of the global tax system and increase transparency in the notoriously opaque extractives sector. In this deal, the countries committed to greater access to information which will allow citizens and civil society in developing countries to follow the money and hold corporations and governments to account for the use of public resources.

The European Union has been at the forefront of the transparency revolution in 2013, and has the chance to go even further. In June, Brussels passed a law requiring companies listed within the EU to publish what they pay to governments for extractive rights on a project-by-project basis. Not content with that ground-breaking piece of legislation, the EU has now turned its sights onto beneficial ownership and its Anti-Money Laundering Directive is expected to be wrapped up in the coming months.

ONE is fighting to ensure that this new legislation will offer these 28 countries the opportunity to sign up to public registries for companies and trusts. Only with that level of public information can the EU continue to be a world leader on transparency and take action against the phantom firms that plague developing countries by facilitating money laundering.

From G8 to G20

We know that right now many countries are far from living up to their rhetoric — we need to see concrete proposals from member states that call for information on the beneficial owners of companies and trusts to be public.

We also need MEPs to set the standard for transparency in this arena and ensure that governments follow that lead when the final texts are negotiated.

With this background of high rhetoric and action, the recent G-20 Summit was an opportunity for the group to live up to its reputation as the G-8’s more dynamic younger sibling.

In St. Petersburg, part hamstrung by the ongoing crisis in Syria, transparency understandably had to take a back seat. But this was not an opportunity entirely missed. On tax transparency some good progress was made — with clear recognition that reforms must benefit developing countries. However, despite the progress of the EU countries and U.S. laws, the G-20 as a whole failed to commit to requiring oil, gas and mining companies to disclose the payments they make to governments, nor did they do much to crack down on the phantom firms that enable corrupt leaders and irresponsible companies to rob Africa of much-needed resources.

Australia’s turn

The focus now will turn to the Australian presidency of the G-20 in 2014, the first big international responsibility of the newly-elected Abbott government.

With Australia a key player in extractives, ONE will be pushing for next year’s G-20 to accelerate the progress by extending the emerging global standard on mandatory reporting as well as on beneficial ownership and tax transparency.

It is also vital that countries from beyond the G2-0 are invited to input into the agenda that will affect their on-going efforts for justice.

Because that is what this is all really about: Justice, and as Martin Luther King once said: “Justice too long delayed is justice denied.” The countries of the G-8 and the G-20 all say they want justice. It is time for their actions to start speaking louder.

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