Bern calls for dialogue, integrity in commodities world
Bern calls for dialogue, integrity in commodities world
APRIL 26, 2012 BY
LAUSANNE, SWITZERLAND – Greater transparency in the commodities industry and improved dialogue with the public and regulators would benefit all stakeholders, says Alexander Karrer, deputy secretary at the State Secretariat for International Finance (SIF).
Karrer was speaking at an international conference on commodities in Lausanne 25 April.
He encouraged people in the commodities business “to ensure that the public knows what they are doing, and how and why they are doing what they are doing”. Karrer was referring to the impact of commodity price fluctuations on developing economies as well as social and environmental issues in politically unstable countries where many of the commodities originate.
Karrer says that “people working in developing countries [are] particularly vulnerable” due to the absence of standardized environmental and social legislation in many countries which supply the natural resources.
The contribution of commodities trading to the Swiss GDP (gross domestic product) is the equivalent of that of tourism: for 2010, the KOF Swiss Economic Institute estimates the figure to be around CHF17 billion, more than three percent of GDP.
Karrer told his audience that “while we are pleased [to have] your companies operating in Switzerland, you have to be aware of your role in the global economy, which means stable growth and development”.
The Swiss government, he said, is pushing for greater financial integrity, given the risk of corruption and money laundering from funds originating from trades.
