Beruflich Dokumente
Kultur Dokumente
Preface page 3
The Economic Outlook and Defining Policies for Inclusive Growth page 18
Acknowledgements page 30
World Economic Forum
Annual Meeting 2011
Co-Chairs
Chanda Kochhar, Managing Director and Chief Executive Officer, ICICI Bank, India
Ellen Kullman, Chair of the Board and Chief Executive Officer, DuPont, USA
Wei Jiafu, Group President and Chief Executive Officer, China Ocean Shipping Group Co., People's Republic of China
Preface
Klaus Schwab
Executive Chairman, World Economic Forum
The first Annual Meeting of the second A background of civil unrest in Tunisia independently, impartially and
decade of the 21st century opened and Egypt provided a poignant internationally, and committed to
amid an atmosphere of micro- example of the nature of the new improving the state of the world. The
optimism combined with macro- reality. Events across the East World Economic Forum acts as a true
pessimism. Members of our graphically demonstrated the global trustee, always beginning with
communities were looking out on a complexity, rapidity and the long-term global public interest in
world full of opportunity for themselves interconnectivity of the world today. mind and at heart, not the self-interest
and their networks. At the same time, Global youth is rising to the challenge of any single stakeholder.
when confronted with the challenges of leadership in the 21st century using
facing the world – from the stress on new technologies and ways of It is in that spirit that the Forum
water, food and energy created by a communicating. New actors are launched the Risk Response Network,
ballooning global population to the emerging and influencing global events a collaborative, networked entity
complexities of the post-crisis financial in unanticipated ways. designed to enable the world to
environment and the new realities of prepare and respond to global risks, a
the post-globalization, post-privacy, All these dimensions of the new reality new type of organization designed for
post-digitization world – there was a require first and foremost a common the new reality.
feeling of being overwhelmed and approach: basic values and shared
burned out. norms to be turned into positive forces The Risk Response Network, as with
driving our future. It also requires a everything we do, will build on our four
Nonetheless, throughout the Meeting, new sense of “global togetherness”. strategic pillars: Communities,
optimism was the dominant force. The Events in the wider world as well as Interaction, Insight and Impact. These
spirit of Davos always provides a the discussions in Davos served to provide the Forum with a rigorous and
platform for unique interaction, but this reinforce the importance of the unique framework and ensure that
year reinforced its position as the Meeting’s theme and sub-themes, everything we do throughout the year
Summit of Summits. The Annual each of which is explored in depth in achieves the excellence apparent at
Meeting provided an opportunity for this report. the Annual Meeting.
leaders of the G20 nations to meet in
The impact of Davos for 2011 is to
an informal setting to open the Importantly, the discussions under
begin the year with active optimism,
discussions that will be continued these themes, the insight and
introducing new thinking, new
under the chairmanship of France conclusions that emerged from them
connections, new ideas and networks
through 2011. The presence of many underline the unique nature of the
to build on the micro-opportunities to
European leaders reinforcing their World Economic Forum as a truly
contribute to the Forum’s mission to
support for the continent’s single multistakeholder institution. In these
improve the state of the world.
currency (see Euro Leadership, page complex and fast-moving times, the
10) calmed markets and provided world needs an institution that is able
confidence that the political to address global challenges in an
environment around the euro would interdependent, proactive and
provide stability. collaborative way, acting
“We didn’t fall off the cliff, and there is growth worldwide,”
said Paul Bulcke, Chief Executive Officer, Nestlé, Switzerland.
Addressing the participants of the World Economic Forum Many problems Europe faces follow decisions governments
Annual Meeting 2011, President Nicolas Sarkozy of France have taken, alone or together, United Kingdom Prime Minister
framed his vision for the G20 by noting, “We are 11 years into David Cameron told participants. On the future of Europe, he
the 21st century, yet we are still functioning with the rules of said: “We are an open, trading continent. We have a proud
the 20th century.” We have entered an age where it is ever record of invention. We’ve got advanced democratic values.
more important to talk and listen to each other, to identify the But yes, we’ve got to recognize that Europe has to earn its
collective common interest and to find news ways of thinking way. The world doesn’t owe us a living. So let’s make the
to help us build the future. choice to do things differently, to fight for our prosperity.”
Over the past 18 months, at the brink of the precipice, there Cameron outlined his vision of a new direction for the
was little choice behind the decisions made by the G20; it is continent: a risk-taking investment culture, a Europe-wide
now time to keep cool heads as the decisions get tougher. patent scheme, tougher stress tests, killing off sovereign debt
The G20 must be productive, and its agenda will focus on and removing crushing regulation are a formula for growth.
three major risks: sovereign debt, monetary and financial “Now is the time to go for a genuine single market,” he said,
imbalance, and the impact of inflation on growth and the pointing to commitments from leaders across Europe to open
soaring price of commodities. and free market reform.
Sustainable Future
Japan’s Prime Minister Naoto Kan told participants that it is “Chronic disease causes six out of every 10 deaths
essential to reconnect and forge new relationships. “Spiritually worldwide,” said Secretary-General Ban Ki-moon of the
and economically … it’s important for us to open ourselves United Nations. It is no longer just a rich man’s problem;
up to the rest of the world.” This is equally true on a domestic more than 80% of these deaths occur in developing
as well as an international scale, he said. Kan added that he countries. However, only 3% of development assistance goes
had come to Davos to discuss social inclusion and the to chronic diseases. “To fix the priorities, we must place non-
concept of human security. To him, building new bonds and communicable disease high on the development agenda.”
opening up to the world are at the heart of that push. “Today,
the world faces major changes that can be likened to a Executives from the food and pharmaceutical industry –
tectonic shift, both in national security and in economic Richard Clark, Chairman of Merck, and Kendall Powell,
fields,” stated Kan. “I think we need to build new bonds Chairman and Chief Executive Officer of General Mills –
suitable to the times and regions we are living in,” he said. committed to closer collaboration with government and non-
governmental organizations.
The Bill & Melinda Gates Foundation has added US$ 100
million to the campaign to wipe out polio and a further US$
60 million was pledged by United Kingdom Prime Minister
G2 Collaboration David Cameron, who committed to double his country’s
current contribution to polio eradication. “This funding will see
The world’s largest economies need to collaborate to face the an extra 45 million children fully vaccinated against the
challenges of the new reality, said US Treasury Secretary disease,” he said, urging other world leaders to finish the job,
Timothy Geithner, speaking at a plenary session. The effort is adding that the new funding is conditional on matching
needed to transform the post-war economic deal. With a commitments and making vaccines routine in affected
view to the pivotal relationship between the US and China, countries.
Geithner described the interests on both sides as closely tied
in many ways.
Governments and businesses should start revising their social In a taped audio speech from her country, Aung San Suu Kyi,
contracts with their stakeholders in light of the new realities of General Secretary of the National League for Democracy
the post-crisis world. “The new contract has to move beyond (NLD), called on world leaders gathered in Davos “to use their
the rulers and the ruled,” said Prime Minister Abhisit Vejjajiva particular opportunities and skills as far as possible to
of Thailand. “We’re all partners now.” The state should not promote national reconciliation, genuine democratization,
intervene in the private sector, he declared, but should focus human development and economic growth in Burma, that our
instead on creating the conditions that would allow people may in turn be able make their own contribution
companies to create employment and make profits for their towards a safer, happier world.”
shareholders.
“Developing new sources of renewable energy is an amazing The World Economic Forum launched the Risk Response
business opportunity and key to achieving sustainable Network (RRN) to bring together stakeholders on complex,
economic growth,” said Mexican President Felipe Calderón interconnected global risks. The world has fundamentally
as he addressed a panel. Other panel members included changed and this new reality calls for more foresight and
United Nations Secretary-General Ban Ki-moon, Indonesian collective action. The network serves as a preparatory,
President Susilo Bambang Yudhoyono and Bill Gates, Co- analytical and highly practical framework for the global
Chair of the Bill & Melinda Gates Foundation. community to improve risk management through bringing
together the most relevant global decision-makers with the
most compelling insights and the most suitable tools and
services.
India Inclusive
Angela Merkel
Federal Chancellor of Germany
Nicolas Sarkozy
President of France
Jean-Claude Trichet
President, European Central Bank
“Let’s not short Europe, and let’s not short the Eurozone. We are
heading in the same direction, we are consolidating. We are
producing significant reforms. And we’re determined to … take
the job where it was left unfinished.”
Christine Lagarde
Minister of Economy, Finance and Industry of France
George A. Papandreou
Prime Minister of Greece
“Will the Euro itself in any significant way – in its core – break up? …
I think there is absolutely no possibility because of the huge benefits
that we’ve had over 2009-2010 from having the Euro.”
Jacek Rostowski
Minister of Finance of Poland
Nick Clegg
Deputy Prime Minister of the United Kingdom
Source: Economist Intelligence Unit Index of Democracy 2008; Institute for Democracy and Electoral Assistance
Percentage of respondents
80
and values of the company while re- ...has
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evaluating corporate priorities. 60 problems
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the personal computer has connected the
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developed world, but for the developing
7
Attitude towards free market capitalism
(2
It works well and increased regulation will make it less efficient
world connectivity comes from mobile It has problems that can be addressed through regulation and reform
It is fatally flawed and a different economic system is needed
technologies.
Note: White spaces represent "DK/NA", "Not sure" and "Depends"
An Ageing Population
Source: BBC GlobeScan/PIPA (November 2009)
A Sustainability Imperative
15
Those individuals will eventually want the 2005 2006 2007 2008 2009 2010E
Source: IMF World Economic Outlook (October 2010); PwC forecasts (January 2011)
Inclusive Growth
12
10
Africa
Unemployment rate
Europe
North America
8 Latin America
MENA “I call Cancun a big step for the
6 community of nations. But
4
Asia-Pacific unfortunately, it’s also at the
same time a very small step for
2 the planet.”
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010E 2011F Christiana Figueres, Executive Secretary,
United Nations Framework Convention on
Note: Data not available for all countries. Africa aggregate includes 7 nations; Asia excludes India and rural China.
Climate Change (UNFCCC), Bonn
Source: IMF World Economic Outlook (October 2010)
In the months following the financial The effect of these conflicting objectives,
crisis, the G20 was filled with as played out in the G20, was indecision,
enthusiasm for engaging in urgently verging on paralysis.
needed structural reform. There was
general recognition that once a Now What?
worldwide banking crisis had been
averted, currency exchange rate Throughout the World Economic Forum
imbalances needed to be corrected Annual Meeting 2011 in Davos, there was
and a long list of structural reforms general acknowledgement of the G20’s
needed to be put in place. role in averting a worldwide depression at
the height of the crisis, but also a lack of
Despite the best intentions, it did not clarity about the group’s future and openly
happen. A precipitous drop in the bond expressed doubts about its ability to
market shifted the focus to austerity deliver.
programmes and attention on the
enormous deficits created by the stimulus One of the new buzzwords proclaimed
programmes. The shift in emphasis led to provocatively at this year’s Annual Meeting
contradictory objectives: the finance was “G-Zero”, the suggestion that disarray
ministers and central bank governors from in global governance is creating a new
the 19 countries and the European Union world in which there effectively is no
that make up the G20 wanted to continue leadership at all.
to stimulate economic growth and to
tackle the glaring trade imbalances and The danger in allowing that situation to
dangerously high levels of unemployment continue is that without an effective means “Now that we feel that the crisis
in certain countries but, at the same time, of coordination, the world could easily slip is not something that dominates
growing panic over skyrocketing deficits into a new crippling wave of protectionism. the headlines every day, we run
and an accompanying infatuation with That scenario, pushed to the extreme,
the very real risk that – also
austerity threatened to slow the recovery could easily result in a worldwide
that the stimulus packages were intended recession, or worse, the depression that among members of the G20 –
to support. the G20’s earlier efforts had managed to there is perhaps less of an
effort, less of a sense of
urgency. And that, I think, is
OECD countries have built debt mountains exactly the danger. We need to
work against this.”
80%
Change in government gross financial liabilities,
2007-2010, estimates (percentage of GDP)
70
Debt >100% of GDP in 2010 Angela Merkel, Federal Chancellor of
60
Germany
50
40
30
20
10
-10
Norway
Switzerland
Sweden
Korea
Luxembourg
Poland
Austria
New Zealand
Slovak Rep.
Belgium
Germany
Czech Rep.
Hungary
Finland
Canada
Italy
France
Netherlands
Total OECD
Portugal
Greece
Spain
US
Japan
UK
Iceland
Ireland
Australia
Denmark
The G20 was created in 1999, as Imperfect as it is, there was a strong A number of panellists noted that a large
recognition that the ongoing transfer of feeling at the Annual Meeting this year that proportion of those companies that
economic power to emerging markets had the G20 is the only game in town. In one survived the crisis are leaner and in better
created a new reality which meant that of the 2011 discussions dealing with the shape than they were before. Many are
effective economic coordination needed to importance of the G20, a panellist asked in sitting on large reserves of cash but are
be expanded beyond the OECD countries. exasperation: “What else do we have? hesitant to invest in their own expansion
The last decade has confirmed this. Yet, Does anyone really want to go back to the and job creation because of uncertainty
the G20 is an imperfect body for dealing G8?” about the regulatory landscape of the
with complex global issues. future. Lack of clarity is hampering
economic expansion and the creation of
new jobs. As the head of a leading US
investment bank put it, the international
Emerging markets are claiming their share of investment regulatory framework, in spite of Basel III,
is now so complex that no one can really
100%
Select understand it. A concern forcefully
emerging
(US$ millions, current prices and exchange rates)
* Argentina, Brazil, India, Indonesia, Korea, Nigeria, Russia, South Africa and Vietnam
Others
China
Russia
Kuwait
The World Economic Forum would like to thank its Strategic Partners for their valuable support.
The programme team: Anne-Sophie Duprat, Antonio Calvosa, Begona Martinez, Emma Loades,
Eva Trujillo-Herrera, Jaclyn Asuncion, Jessica Dyllick, Johanna Dousse, Mireille Bertolini, Natalie Hendro, Nathalie Chalmers,
Nicolas Ruble, Rebecca Ivey, Sebastian Buckup, Stéphanie Nassenstein-Zacchi, Tiffany West and Xiuying Zhang
Report Writers: William Dowell, Gay Flashman, Alejandro Reyes, Gareth Shepherd
Design and Layout: Kamal Kimaoui, Associate Director, Head of Production and Design
Special thanks to PwC for their help in preparing data and statistics for the World Economic Forum Annual Meeting.
The majority of sessions held at the Annual Meeting are available in summary form at:
http://www.weforum.org/events/world-economic-forum-annual-meeting-2011/index.htm