Study Guide - World Model United Nations

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committees of business and labor federation – BIAC and TUAC, respectively—and NGOs represented by the OECD Watch. Each adhering country has a National Contact Point (NCP), which is responsible for encouraging Guideline observance. “Adhering countries shall set up National Contact Points for undertaking promotional activities, handling inquiries and for discussions with the parties concerned on all matters covered by the Guidelines so that they can contribute to the solution of problems which may arise in this connection, taking due account of the attached procedural guidance.” 47 The NCP, which meets on an annual basis, is primarily responsible for gathering information on national experiences, handling enquiries, and solving problems that arise in the application of Guidelines. Generally, the NCP deals with country specific problems in the country where the issue first arises. Although Harvard WorldMUN 2012 OECD Ministerial Council. (http://www.oecd.org/) governments are given the flexibility to organize NCPs, NCPs are not only accountable to national constituencies, but also to their peers and the oversight Committee. The 2000 review enhanced accountability by calling NCP to report activity on an annual basis. 48 The Investment Committee, formed in 2004, was created by the merger of the Committee on International Investment and Multinational Enterprises (CIME) and the Committee on Capital Movements and Invisible Transactions (CMIT). “The OECD Investment Committee is responsible for the OECD liberalization instruments in the field of international investment and services. It interprets and implements the 1976 Declaration and Decisions on International Investment and Multinational Enterprises and is the guardian of the Codes of Liberalization of Capital Movements and Current Invisible Operations.” 49 Effectively, the Committee is a monitoring body, a forum for discussion, and a peer OECD 28
eview facilitator. The Guidelines note that, “the [Investment] Committee shall periodically invite the Business and Industry Advisory Committee to the OECD (BIAC), and the Trade Union Advisory Committee to the OECD (TUAC) (the “advisory bodies”), as well as other nongovernmental organizations to express their views on matters covered by the Guidelines.” 50 The Business and Industry Advisory Committee (BIAC) to the OECD is an independent international business that advises the OECD on various policy initiatives. The BIAC consistent is made up of 37 policy groups who are responsible for covering (BIAC) major aspects of OECD work. 51 Since 1948 the Trade Union Advisory Committee (TUAC) to the OECD has served as an interface for trade unions with the OECD. Originally an advisory committee for the European Recovery Program – the Marshal Plan, TUAC has become an integral coordinator and advising body. 52 Together, the National Contact Points and the Investment Committee heed the advice of the BIAC and the TUAC in furthering and implementing the full effectiveness of the Guidelines. That is, the bodies oversee the interpretation, implementation and revision of the OECD Guidelines to Multinational Enterprises. Evaluating the OECD Guidelines Despite numerous achievements, the OECD faces criticism on the substance and implementation of the Guidelines. Although the “Guidelines were updated… competitive pressures between States reflected through discretionary investment incentives are suspected to push foreign direct investment away from those having high standards to ones with comparatively lower levels.” 53 In order words, one problem is that despite the Guideline’s efforts investments are diverted away from countries with higher labor standards and placed in countries with lower standards. Nevertheless, it is worth noting that in order to facilitate cross-border investment nations must agree upon performance baselines and their enforcement. Harvard WorldMUN 2012 Objections to the Guideline Methodology In terms of the overall tone, the Guidelines do not make clear fundamental principles such as what constitutes an MNC or what the overall approach is in dealing with them. Various passages of the Guidelines simply do not specify clear legal definitions and principles. This is an integral concern in the implementation of the Guidelines because although the Guidelines are binding on adherent nations they are not binding on MNCs themselves. 54 As such, it is up to each individual nation to enforce the agreed upon principles. However, though the original draft specified that since multinationals could make positive economic and social contributions their activities could be facilitated at the same time that it specified that there should be no difference in the treatment of multinational and domestic enterprises. “The Guidelines are not aimed at introducing differences of treatment between multinational and domestic enterprises; they reflect good practice for all.” 55 Moreover, the first draft of the Guidelines made it clear that, “a precise definition of multinational enterprises is not required for the purposes of the Guidelines. These usually comprise companies or other entities established in more than one country and so linked that they may co-ordinate their operations in various ways.” 56 To implement fundamental principles, the Guidelines require two forms of disclosure. “The first set of recommendations call for timely and accurate disclosure on all material matters regarding the corporation, including the financial situation, performance, ownership and governance of the company.” 57 In addition, the guidelines encourage the disclosure/communication of practices in instances where reporting standards are still evolving (i.e. social, environment, and risk reporting). 58 Specifically, “enterprises should ensure that timely, regular, reliable and relevant information is disclosed regarding their activities, structure, financial situation and performance. This information should be disclosed for the enterprise as a whole and, where appropriate, along business lines or geographic areas.” 59 Yet, the contentious debate surrounding disclosure OECD 29
Page 1 and 2: Organization for Economic Cooperati
Page 3 and 4: KATHLEEN TANG Secretary-General SAM
Page 5 and 6: KATHLEEN TANG Secretary-General SAM
Page 7 and 8: 3. Third, the OECD is looking to fo
Page 9 and 10: protecting the environment. In Sout
Page 11 and 12: some progress, it would not reach i
Page 13 and 14: ICT. In Europe, a lag can be explai
Page 15 and 16: pressure to reinvigorate its econom
Page 17 and 18: goals, it must increase transparenc
Page 19 and 20: What should the European community
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Page 23 and 24: development in host countries. On t
Page 25 and 26: epatriate. Yet, restrictive-investm
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Page 33 and 34: Key Actors, Organizations, and Coun
Page 35 and 36: Consequences and Responses, Brussel
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Study Guide - World Model United Nations

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