The question remains:
What's next? Will the world's economic recovery -- assuming it has started -- follow the hoped-for V pattern, form a less
desirable but acceptable U or turn into a much-feared W? There was little agreement on how the recovery will proceed. Threats,
like panic sparked by a possible government-bond default in Greece or Spain, could roil the financial markets and world economy,
many said.
The Forum reached 430 million readers in newsarticles online • Over
210,000 viewers watched live on Livestream, 140,000 watched the sessions on YouTube • Over 200,000 people polled
on Facebook, 30,000 tweets mention Davos on Twitter
Rebuilding the global economy on a principled
• At the 40th
World Economic Forum Annual Meeting 2010, participants found that the global recovery is fragile, and now is the moment to
rethink values as the world rebuilds prosperity • All countries in the G20 and beyond should find new pathways
to sustainable growth and job creation • Concretely, Bill and Melinda Gates, Co-Chairs of the Bill and Melinda
Gates Foundation, which is a founding partner of the GAVI Alliance, pledged US$ 10 billion to vaccinate over 8 million children
in the next decade • Former US President William J. Clinton announced a joint initiative between the World Economic
Forum, the Clinton Global Initiative and the UN to support Haiti’s long-term reconstruction • Canadian
Prime Minister Stephen Harper, South Korean President Lee Myung-Bak, Mexican President Felipe de Jesús Calderón Hinojosa and
French President Nicolas Sarkozy all set forth agendas for global engagement to prevent future crises and to promote sustainability
and principled growth • Since its launch 10 years ago, the Global Alliance for Vaccines and Immunisation (GAVI)
has saved over 4 million lives and has immunized an additional 256 million children in the world's poorest countries
At
the conclusion of the 40th World Economic Forum Annual Meeting, participants pledged to rethink, rebuild and redesign the
global economy based on sustainable principles. The sense of the Meeting, echoed by Lawrence H. Summers, Director of the US
National Economic Council (NEC), was that the world was experiencing “a statistical recovery and a human recession.”
“We are not out of the woods yet,” said Michael Oreskes, Senior Managing Editor of the Associated Press. “The
recovery is still very fragile in many developed economies.” Principled leadership is key to stabilization.
“At the end, it’s an interdependent system,” said Josef Ackermann, Chairman of the Management Board
and the Group Executive Committee of Deutsche Bank; Member of the Foundation Board of the World Economic Forum; and Co-Chair
of the World Economic Forum Annual Meeting 2010. “If you lose the support of society, you are not going to achieve your
corporate objectives.”
Job creation is critical to sustainable recovery. There is a role for all to play in job creation, underscored Patricia
A. Woertz, Chairman, President and Chief Executive Officer of Archer Daniels Midland (ADM), and Co-Chair of the World Economic
Forum Annual Meeting 2010. “And retaining jobs is as important as creating new ones.” The recession also demonstrated
that the world must hear better the voices outside of the G8. “The self-confidence of emerging nations is completely
different,” said Azim H. Premji, Chairman of Wipro, and Co-Chair of the World Economic Forum Annual Meeting 2010. He
warned that in India and China “if services are put under severe, unreasonable restrictions, you will get tariffs overnight.”
“If you have lost the trust of societies, you cannot just respond technically, you have to respond morally,”
said Ackermann. Rowan D. Williams, Archbishop of Canterbury, United Kingdom, urged participants to take collective responsibility
for the future by being individually responsible now. Living responsibly in the present means living within ecological limits
to ensure the security of work and food. "Responsibility for the future means being responsible for a vision of humanity which
excites and enlarges us," he added.
• Expect tough financial regulation from the Obama Administration • Financial regulation will
be coordinated to avoid regulatory arbitrage • Energy package to include nuclear to meet the challenges of climate
change • For all information about the Annual Meeting, visitwww.weforum.org/annualmeeting
Davos-Klosters, Switzerland, 30 January 2010−
Expect “tough regulation” from the Obama
Expect tough financial regulation from the Obama Administration • Financial regulation will be coordinated
to avoid regulatory arbitrage • Energy package to include nuclear to meet the challenges of climate change • For
all information about the Annual Meeting, visitwww.weforum.org/annualmeeting
Expect “tough regulation” from the Obama Administration on financial services this spring, as
well as an energy package. Addressing participants in a session on “The US Legislative Agenda: A Global Perspective”
at the World Economic Forum Annual Meeting 2010, US congressmen and senators confirmed that despite bipartisan differences,
there is agreement that financial regulation is imperative.
“There is a degree of bipartisanship, but I don’t think it will make a difference,” said Barney Frank,
US Congressman from Massachusetts (Democrat), 4th District; Chairman, Financial Services Committee. “I expect the President
to be signing a financial reform package this spring.” Frank noted that the proposed regulatory reform would be done
in a coordinated manner. “There will be tough regulation but it will be sufficiently coordinated so that it will not
create regulatory arbitrage,” he added.
Susan M. Collins, US Senator from Maine (Republican), acknowledged the “complete failure of regulation”
and suggested that a board of regulators or a council should be in place, responsible for identifying systemic risk and black
holes. “No matter how skilled (regulators) are, there will be a new risk product or process that will emerge. We need
a regulatory system that is flexible enough, for example, to identify derivatives.” Collins pointed out that both Democrats
and Republicans agree that the system failed and that regulatory reform is needed. “Whether they can come together,
I hope so,” she said.
The challenge of climate change presents an opportunity for the US to break away from foreign energy dependence and
to create jobs, according to Lindsey O. Graham, US Senator from South Carolina (Republican). “In his State of the Union
Address, President Obama talked about nuclear power, offshore drilling and clean air. That is where America is at. You can
disagree with me about global warming, but why don’t you join me to provide the next generation of Americans with cleaner
air and purer water and in the process, create jobs?” Graham noted that the President’s comments signalled “significant
change”, making it much more likely that a “bill could be put together.”
Brian Baird, US Congressman from Washington (Democrat), 3rd District, said it was “unlikely” that a cap-and-trade
bill could be pushed through Congress. “But that doesn’t mean we cannot be an active player in reducing CO2,”
he said. “It is important that we do not treat cap and trade as the sine qua non. There are other non-tax ways to achieve
this.”
Scott Brown’s victory in Massachusetts could mean a more conciliatory attitude from both Republicans and Democrats.
Edward J. Markey, US Congressman from Massachusetts (Democrat), 7th District; Chairman, Select Committee on Energy Independence
and Global Warming, pointed out that in energy and climate issues, there was never a day when it was a question of 60 votes.
“We all realize we have to work in a bipartisan fashion.”
QUOTES FROM DAVOS
Josef Ackermann, Chairman of the Management
Board and the Group Executive Committee, Deutsche Bank AG
“I always say, in terms of shareholder value or stakeholder value: at the end, it is an interdependent system.
If you lose the support of the society, you are not going to realize your corporate objectives in the long run.”
Rowan D. Williams, Archbishop of Canterbury,
United Kingdom
“Posterity is not just some abstract thing, from which we're divided. We, here and now, are the makers of a new
generation, a new climate.”
Azim H. Premji, Chairman, Wipro Limited
“Even with some amount of recovery taking place in industrial production, I think the key issue virtually every
country is facing is much higher unemployment. And a consequence of that is protectionism, which we are seeing across the
world.”
Ronald A. Williams, Chairman and Chief Executive
Officer, Aetna Inc.
“Each country really looks through its own lens at how capitalism has evolved and will unfold. And the political
and regulatory framework is really going to be a combination of the policy perspective in that country, along with the politics,
and, in some cases, populism.”
Patricia A. Woertz, Chairman, President and
Chief Executive Officer, Archer Daniels Midland Co. (ADM)
“Agriculture has kind of been left behind in some of the other recoveries. So [we had] a lot more discussions
about that – innovation, investment, how we're going to feed the billions of people in the world in the future.”
Whenever you find you
are on the side of the majority, it is time to pause and reflect
--- Mark Twain
We have never observed
a great civilization with a population as old as the United States will have in the twenty-first century; we have never observed
a great civilization that is as secular as we are apparently going to become; and we have had only half a century of experience
with advanced welfare states...Charles Murray
Kella
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