Good governance, economic connectivity and environmental sustainability - cornerstones of stability and security

It has been said that ‘short-term thinking is the greatest enemy of good government’. Indeed, sustainability has become a fundamental part of the OSCE’s work to foster security and co-operation in Europe.

 I attended the OSCE Austrian Chairmanship Business Conference this week in Vienna, and focused my address on the three main aspects of sustainability, which are at the core of our economic and environmental activities –good governance, economic connectivity and environmental sustainability.

 Good governance – where business can thrive and investor confidence grow

 Good governance is a cornerstone of stability and security. It plays a key role in ensuring a sound business and investment climate.

 Good governance requires governments to be transparent and accountable towards their citizens, adopting comprehensive, long-term development strategies, effective economic policies, transparent budget and procurement processes, and streamlined international trade and customs regulations to create an environment in which business can thrive and investor confidence can grow.

 It is not by chance that the United Nations 2030 Agenda for Sustainable Development considers good governance an essential element for achieving sustainable development.

 As the world’s largest regional security organization under the UN Charter, the OSCE is well placed to support its participating States in implementing the SDGs, including those focused on providing access to justice for all, building effective, accountable and inclusive institutions at all levels, and tackling corruption, money laundering and terrorist financing.

 In cooperation with partner organizations such as UNECE, UNODC, OECD and the World Bank, we actively support countries in implementing their anti-corruption commitments.

Many policy makers and practitioners in the OSCE region and beyond, who seek to prevent corruption and suppress this destructive phenomenon, benefit from our Handbook on Combating Corruption.

Through our field offices we regularly offer policy advice and support to host countries, particularly in the field of anti-corruption and preventing and combating money laundering.

 Economic connectivity - brings peoples and countries closer together

 Economic connectivity has great potential to enhance regional co-operation and stability across the OSCE area.

 As national economies become increasingly interdependent, enhanced harmonization, transparency and predictability of transport and customs procedures, and simplified regulations for trade and business are more and more important – and ultimately will bring peoples and countries closer together. Information and communication technologies can play a major role in helping to enhance connectivity.

 With the adoption of a Decision on good governance and connectivity at the OSCE Ministerial Council in Hamburg in December 2016, the OSCE has been tasked to consider how to help strengthen economic ties as part of broader political confidence-building between East and West.

 Lasting peace and stability will not be achieved – in the OSCE region or elsewhere – unless economic ties are strengthened across the board, and this can only be done in partnership with the business community. The private sector plays a key role and its involvement in the OSCE’s work has proved particularly beneficial and highly relevant.

 In the context of the OSCE Economic and Environmental Forum, which took place on 23/24 January in Vienna, the Austrian Minister of Finance Hans Jörg Schelling stressed the importance of connectivity by stating that “closer cooperation in the field of trade, transport, customs and energy can be mutually beneficial to all participating States”, arguing that “we need a new vision of a Common Economic Space between Vancouver and Vladivostok.”

 This fits very well with the main theme of the Forum, to be held as always in Prague in September, which will be dedicated this year to green economy.

 Environmental sustainability - catalyst for innovation, increased productivity and jobs creation

 The OSCE fully recognizes the two-way relationship between environment and security, and works to bring a security perspective into the international environmental debate. We support the implementation in our region of Sustainable Development Goals related to water governance, climate change and security, disaster risk reduction, energy security, and waste management.

 Environmental considerations need not be an obstacle to economic development. Instead, they can be a catalyst for innovation, increased productivity and jobs creation. Good environmental governance not only contributes to a sound investment climate, but can help in addressing the concerns and interests of all stakeholders, helping prevent tensions and conflicts.

 The OSCE strives to transform environmental security risks into opportunities for co-operation that can enhance security and stability and contribute to sustainable development.

 Let me give three examples of OSCE initiatives. First, the OSCE ‘Aarhus Centres’ (60 centres in 14 countries), which are particularly active in the fields of water governance, disaster risk reduction and climate change adaptation. Second, the visit to Austria and Germany last July by Sustainable Energy specialists from our Mediterranean Partners stimulated cooperation between high-level government and private sector energy decision makers and showcased the newest renewable energy technologies. We plan to continue this initiative in 2017. And third, in November we facilitated together with the Austrian Institute of Technology a fact finding mission to Austria and Switzerland by Kazakhstan’s Vice Minister for Energy Sadibkov. This mission led to the establishment of the International Centre for the development of green technologies in Astana.

 Need to learn how to engage in new ways

 Building sustainable economies is, for the OSCE, an element of the broader work we do in strengthening security, stability and promoting mutual trust in Europe and beyond.

 To address the “sustainability challenge” effectively, however, we need to learn how to engage in new ways, moving beyond purely inter-governmental dynamics. We should develop a coordinated approach that involves both governmental and non-governmental actors – including civil society, the business community, women and young people, international organizations, the media and academia – working in flexible and creative coalitions within a multilateral framework and guided by strong and farsighted political leadership.

 In this sense, the OSCE has considerable potential to enhance co-operation and build new partnerships throughout the OSCE region.