Tuesday, March 31, 2009

Tech CEO Council Offers G-20 Advice

Technology CEO Council Chairman Mike Splinter has some words of wisdom for President Barack Obama has he heads to the G-20 Summit in London on Thursday -- his first big international gathering since becoming commander in chief. Splinter advised Obama in a weekend letter to urge the other G-20 nations to adopt economic stimulus plans that promote investments in critical national infrastructures, as the U.S. did with the American Recovery and Reinvestment Act. He also asked Obama to fight for open markets, recommit to a new Doha Round of trade negotiations and fend off protectionism.

"Along with unprecedented challenges, you have an unusual opportunity to help lead the world toward a more secure future. This will not come easy," wrote Splinter, who is CEO of Applied Materials. "The world's political leaders are confronted by severe economic anxieties at home, and these concerns are driving many countries toward protectionist measures... Unchecked, each nation's efforts to close off its own economy and advantage its own domestic industries will harm all nations." Fifty years from now, generations will look back at how the United States responded to the fears and crises of 2009, he wrote, noting: "Whether we react to short-term political pressures or invest in long-term reforms will determine how history judges us."

Read the full letter to Obama after the jump...

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March 27, 2009

President Barack Obama
The White House
1600 Pennsylvania Ave, N.W.
Washington, DC 20500

Dear Mr. President:

As you travel to London for the meeting of G20 economies, we write to congratulate you on your resolute determination to do what it takes to restore confidence to our financial markets. As business leaders, we remain ready to work with your Administration to restore growth and work toward a sustainable global recovery.

Along with unprecedented challenges, you have an unusual opportunity to help lead the world toward a more secure future. This will not come easy. The world's political leaders are confronted by severe economic anxieties at home, and these concerns are driving many countries toward protectionist measures as recently reported by the World Bank, New York Times and Wall Street Journal. Unchecked, each nation's efforts to close off its own economy and advantage its own domestic industries will harm all nations.

In your March 25 op-ed to the world you stated clearly "the United States is ready to lead." We are committed to work with you in fulfilling this pledge. When you and your G20 colleague meet next week we urge you to give special attention to the following key international objectives:

• Invest in Strong and Sustained Stimulus Plans. Strong stimulus plans across all economies that are implemented efficiently are key to restoring global growth quickly. Stimulus plans should also be designed to provide a solid foundation for sustained growth over the long term. For example, the American Recovery and Reinvestment Act promotes investments in critical national infrastructures that will stimulate innovation, create better products, and deliver extraordinary returns and enable sustainable, innovation-led growth in the years and decades ahead. Just as the American recovery package promises short-term economic stimulus and long-term transformation of our health, energy, transportation and telecommunication sectors, other nations around the world should aim towards both short term stimulus and long-range capacity in core economic areas.

• Stand Together or Fall Apart. We know what happens when globally integrated economies seek protectionist solutions to economic crises. Divided, nations will fail to achieve a shared or lasting growth. Yet united - by a focused and determined United States ready to collaborate and lead by example - there is little we cannot achieve. G20 leaders pledged to maintain open markets in November 2008, but few lived up to these promises. In London, you should urge the G20 to recommit to
reinvigorating the Doha Round of trade negotiations so that a comprehensive, ambitious and balanced agreement can be concluded as soon as possible. As you know, access to foreign markets where 95% of the world's population lives is critical to the competitiveness of many U.S. companies.

In addition to these international initiatives, it is critically important for the United States to pursue policies that will help its companies and workers become more competitive. In the months ahead we are committed to working with you on health, education, energy and environment initiatives. Your Administration also has to make sure that any tax changes do not disadvantage American companies and workers, especially in the current environment. Elimination of the deferral of taxes on foreign-earned revenue will handicap U.S. companies, limit growth and impair our strongest firms' global leadership.

Fifty years from now, subsequent generations will look back at how we responded to the fears and crises of 2009. Whether we react to short-term political pressures or invest in long-term reforms will determine how history judges us. Mr. President, we stand ready to work with you and the other G20 representatives on taking steps to restore a sustainable prosperity.


Sincerely,

Mike Splinter
Chairman, Technology CEO Council
President & CEO, Applied Materials