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Summary of the Davos Social Media Session

One of the most high-profile and sought-after session at the Annual Meeting was the session on the growing influence of social networks, a workshop where representatives from all main social networks were present.

The discussion, moderated by Loïc Le Meur, Founder of Seesmic included among others Gina Bianchini, CEO, Ning, Reid Hoffman, Founder, LinkedIn, Owen Van Natta, CEO, MySpace.com and Evan Williams, CEO, Twitter, Don Tapscott, Ngenera and George Colony, CEO, Forrester Research, Randi Zuckerberg, Marketing Director, Facebook, Steve Grove, Head of News and Politics, YouTube, Tim Berners-Lee, Director, World Wide Web Consortium, and Michael Arrington, Founder, TechCrunch.

Randi Zuckerberg from Facebook ran a quick poll receiving feedback from over 6000 people on Facebook in only two minutes. Steve Grove from demonstrated YouTube Moderator and you can read the responses here.

Here is the video of the 2-hour session, highlights of the discussions below.

Forum Risk Report Warns About Long Shadow of Financial Crisis

The World Economic Forum's Global Risks 2010 report focuses attention on the legacy of the financial crisis. The basic message is that the interconnected risks might be largely the same as last year - fiscal crises and the threat of protracted unemployment, underinvestment in infrastructure - but that we are now living in a much more vulnerable environment where many countries may not have the funds left to prepare themselves for the complext risks ahead. Transnational crime and corruption, biodiversity loss and cyber-vulnerability have also become more apparent risks. In the above video Sheana Tambourgi, the head of the Forum's Global Risk Network outlines how timely the report is and how its findings will be fed into Davos

A breakdown in our values - Klaus Schwab

The following opinion piece by Klaus Schwab, Executive Chairman of the World Economic Forum was published in The Guardian. A German version appeared in Süddeutsche Zeitung and French versions in Le Monde and in Le Temps.

Bonuses are a symbol of business's bigger problem - an eroded sense of duty to the wider community
 
Given the uncertainty of the recovery and fears about the social impact of the economic crisis, it is little wonder that debate about corporate bonuses has crept back on to the agenda. You wonder whether managers have learned from the excesses that have to a large extent caused the crisis.

Nevertheless, this discussion is superficial, as it doesn't consider the essential point: the role that companies, including banks, play in society, and the role of executives within those companies. The bonus discussion is actually just a symbol of a much deeper transformation that has taken place in the business world. Let me outline this transformation, as it has severe social implications.

United Nations Climate Change Conference (COP15) - Day 10

The World Economic Forum's Dominic Waughray, Senior Director, Head of Environmental Initiatives is at the United Nations Climate Change Conference in Copenhagen and blogs his impressions

The past couple of days have been extremely difficult for those queuing to get into the Bella Centre. The weather has been extremely harsh; there have been security lock downs all around the congress centre and a heavy police presence has raised everyone’s blood pressure. Admissions for observers became heavily restricted and dependant on the white badge that only your head of delegation could give you. Yet as a head of delegation I couldn’t get into the Bella Centre to collect my white badges that allowed us to get in. Why? Well, you guessed it – because I didn’t have a white badge.

A perfect catch 22. You need to get in to collect your white badges to get your delegation in. But if you don’t have a white badge, you can’t get in to get your white badges. Luckily one of us, Tom, had got himself a white badge courtesy of a Catholic delegation he had also registered with. Our missionary was duly dispatched into the mêlée to sort us out, while we went back to the nearby Crowne Plaza to warm up. Couple of hours later, not only were we all inside, but we had also became extremely popular as we had an envelope full of precious white badges.

Many people were less fortunate and queued for hours in the cold only to be disappointed. It’s hardly a surprise that the angrier of these tried to overpower the fence, causing the police to respond with force. These are the Bella Centre protests that have been on the news. Yet everyone who is registered as an official observer does have the right to be able to access the centre.

Moving inside the Congress Centre and, despite the suspension of proceedings for a while which was initiated by some developing countries, the latest text from the Long Term Group on Consultative Action has arrived. This is the main text (and its addendums of course) that the ministerial teams are now grappling with.

You will see that many brackets still lie around the key issues (brackets means still to be agreed upon); especially on the rather fundamental issue of targets: see p.4 section 2 which has brackets around temperature targets; reduction targets for developed and for developing countries.

So, a lot still needs to be done. But much of it is now political rather than technical, and requires leadership rather than detailed negotiation. Clear and strong targets are an essential part of any robust outcome from Copenhagen, so we must remain hopeful some of those brackets do disappear and more ambitious numbers replace them. As Yvo de Boer said in tonight’s press conference “the next 24 hours really are crucial”.

Other interesting points of substance

The rise of the climate and trade issue. Note the brackets on p.4 section 5 in the text showing the need to elaborate something on trade measures: this could prove to be a much talked about entry, as it is my understanding some major developing countries would like an explicit reference in the agreement to forbid any climate related border tax adjustments, a mechanism of course which can be found currently asleep in the Waxman Markey bill.

As we both warmed ourselves up in the Crowne Plaza lobby, James Bacchus explained to me how in his view the trade and climate issue is a major policy architecture problem fast approaching and of great pertience to many multinational and large industrial companies. (Jim is a former congressman and former chairman of WTO). We discussed how complaints to the World Trade Organisation could be triggered not only by the deployment of border tax adjustments, but also on countries citing other countries giving unfair domestic subsidies to particular industries (for example, either to help fossil fuel/high emitter incumbents cope with tighter GHG policies, or indeed to help them develop new low emission investment technologies).

One can quickly see how a logjam of cases for the WTO to make judgements on could emerge; a tit-for-tat logjam that would soon snarl up market-based progress to an international low carbon economy. And that’s not mentioning how this new workstream could deflect the time and attention of WTO officials away from fixing Doha. Given that a range of other think tanks, industry bodies and companies have also raised this topic with us, the trade and climate issue may be something we pursue more substantively into 2010. We will certainly be having a session at the 2010 Annual Meeting in Davos-Klosters on it and I would welcome any feedback on how you think we might best go about looking at this issue.

Finance. Note also the section on finance in the draft tect (p.8 especially section 37) which refers to the role of private and innovative sources of finance. This is interesting. It reflects to some extent a recognition of much of the work that has gone on over the last several months within the Forum Task Force, UNEP FI, the International Investor Group on Climate Change and several others organisations and initiatives. These groups have consistently promoted the fact that the public finance on offer will simply not be enough to solve the climate finance challenge and private investment will need to be attracted into low carbon infrastructure investments at a dimensionally different scale, in developing countries in particular.

The kind of text in the draft agreement (un-bracketed so no one seems to disagree with it) is exciting: it could be a gateway that enables the Forum, for example, to host a substantive private-public platform into 2010 to bring pension funds, fund managers and development banks etc together to develop new low carbon investment mechanisms for developing countries. This was a core recommendation of the Low Carbon Economy Task Force (download the full report, section 3).

The draft text as it stands enables a clear connect between the UNFCCC framework and such innovative public private work in the investor space. 2010 could see an interesting confluence between the Forum’s work on green investing, energy poverty, financing for development and low carbon growth; a connection that could trigger dimensionally larger investment platforms for developing countries. All of this potentially from a small bullet point in a draft text...

Forests and Land Use. Note that Section 27, p7 (again, with no brackets) introduces the forest and land use dimension, in the form of REDD+ (policy approaches and positive incentives on issues relating to Reducing Emissions from deforestation and forest Degradation in Developing countries; and the role of conservation, sustainable management of forests and enhancement of forest carbon stocks in developing countries)

This is an important issue, as much of the abatement potential to 2020 can be found in the avoided deforestation and land use change space. If the REDD+ section remains, 2010 will require a push of public finance to get forested nations “ready for REDD+”. To ensure that these policies and the projects they inspire are able to attract in as much private finance as possible (as the REDD+ space cannot be sustained into perpetuity by public finance alone), new public-private initiatives will be needed that can work with forested nation governments to develop smart polices and a high volume of bankable project deal flow. Done right and the financial flows could be very large. Done wrong and it will be a development, business and abatement opportunity missed.

This is why on Monday evening the World Economic Forum hosted a major dinner in Copenhagen on avoided deforestation and land use change. Reacting to the potentially huge economic opportunity we think REDD+ offers, we are developing a substantive partnership in this area, in order to provide a platform of very practical policy and project development to help a few key forested nations get REDD+ right. We have started to build a partnership with parliamentarians and legislators from forested nations through GLOBE, leading scientists through the Terrestrial Carbon Group and NGOs through WWF as well as with a range of our Industry Partners and agenda council experts.

Currently Shell, Zurich Financial Services and PWC are working with us to help build the partnership, with about 10 or so Forum partner companies behind that. We believe this will be a vehicle attractive to many from the financial services, mining and land use arena and also to companies less well represented at the Forum such as paper and pulp manufacturers.

Their is also interest at the project level from our Young Global Leaders community too. The Minister of Environment from DRC and Governor Eduardo Bragas of the Amazonas Region were among the guests at dinner, which also included the renowned scientist Tom Lovejoy (who introduced the term biological diversity to the scientific community in 1980). Pavan Sukhdev who is the chair of the Forum’s ecosystem and biodiversity global agenda council was also present. Special thanks should go to Shruti Mehrotra an Associate at the Forum, who pulled the event together, along with Tom Watson of the Forum and colleagues from GLOBE and the Terrestrial Carbon Group.

I wanted to talk also about another excellent event on public-private finance, but I shall leave that until tomorrow.

As the Bella Centre is locked down now, I actually returned home today Geneva. So I will be blogging just three more times: tomorrow and Friday on what I am hearing from our sources still there in Copenhagen and on the inside. Saturday, we expect the final text to be posted in the early hours of Saturday morning so by Saturday evening we hope to have gained a considered perspective on it, from those in the know, which I will post. That will be the final COP 15 posting.

Forum study finds no evidence of private equity investments impacting industry volatility

Industries with private equity activity grow more rapidly (as measured by total production, value added and employment) and experience no more volatility in the face of industry cycles than other industries.
In some cases, industries with private equity activity are less volatile, particularly in terms of employment.

This is according to a new World Economic Forum study, Globalization of Alternative Investments Working Papers Volume 3: The Global Economic Impact of Private Equity Report 2010, which is part of an exhaustive examination of the private equity industry’s impact on the global economy.

The working papers also find that modest levels of direct and indirect government venture capital support (in conjunction with private funding) can help the performance of young enterprises. Public support seems most effective when provided at a national or international organization level.

The research project included an international team of noted academics led by Josh Lerner, Jacob H. Schiff Professor of Investment Banking at Harvard Business School.

Join the discussion with world leaders on the most urgent issues that need redesigning

Join the discussion on YouTube about the global challenges requiring new approaches for real solutions.
Watch and listen to what leaders from business, politics, civil society and academia have to say about issues like poverty, gender inequality and climate change, and their innovative solutions like using technology, energy and new education schemes to solve them.

Over 700 leaders from 90 countries are currently in Dubai for the World Economic Forum's Summit on the Global Agenda 2009. At the end of their three day brainstorming, they will present their breakthrough ideas on how to work together to address the world's interconnected problems.

Tentative global economic recovery raises questions about reforms in post-crisis world

As countries around the world recover from the crisis, unanswered questions about the necessary restructuring of the global economy require urgent attention, four leaders from business, academia and civil society said on the opening day of the World Economic Forum’s Summit on the Global Agenda.

“We’ve got a window of opportunity,” Sharan Burrow, President of the International Trade Union Confederation, told reporters in a press conference.
“The crisis has focused the minds of governments, particularly the G20, on what you need to do to rebalance globalization. It means rebuilding economies, balancing exports with domestic demand and investing in jobs, jobs and jobs. You must combine that with social protection.” Burrow called for investments to focus on generating green growth and helping the poorest people in the world.

The quality of the rebound has been patchy, Howard Davies, Director of the London School of Economics and Political Science, remarked.
“We have so far seen rather weak recovery where there has been one,” he observed. “We have still not solved the global imbalance problem that was behind the recession.”

Countries will have to manage exit strategies from the large fiscal stimuli they implemented to counter the crisis, Davies said. While the private sector has borne the brunt of the pain so far, the public sector will eventually be hit, particularly when government spending is curtailed, he cautioned.

The economic recovery in Asia is stronger than it is in the US and EU, Davies noted. Laura M. Cha, Deputy Chairman of the Hongkong and Shanghai Banking Corporation, agreed.

Crown Prince of Dubai addresses Forum's Summit on the Global Agenda 2009

His Highness Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Dubai Crown Prince, addressed the World Economic Forum’s Summit on the Global Agenda.
He called for the international community to deepen cooperation and find new ways to manage the increasingly complex and interconnected global risks.

The global economic crisis has inspired a welcome increase in international cooperation, Dubai Crown Prince told more than 700 participants in the 76 Global Agenda Councils of the World Economic Forum that are meeting in Dubai this weekend to brainstorm on innovative ways to address the most pressing global issues.

“I fully realize that we do not live in a world shaped by ideals and I know that international cooperation requires a new international order,” he said. The Summit on the Global Agenda, the Crown Prince concluded, offers an opportunity for participants to work towards “a new vision where people, countries and cultures co-exist peacefully and equally and we work together to realize our hopes and overcome our challenges”.

Programme of the Summit on the Global Agenda 2009

For the second consecutive year, the World Economic Forum and the Government of Dubai will host the Summit on the Global Agenda from 20 to 22 November 2009. The Summit will bring together over 700 council members of the most innovative and relevant minds from over 90 countries – leaders from academia, business, government and civil society – to address some of the most pressing issues on the global agenda.

Some of the key sessions listed below will be streamed live on Livestream, key quotes will be live tweeted on the Forum’s Twitter feed, and high resolution photos will be available for free download on Pbase.

Friday 20 November, 10.45 - 11.45 (06:45 - 07:45 GMT)

Opening Session
Overview and Update on the Network of Global Agenda Councils, the Global Redesign Initiative and the Summit on the Global Agenda.
Welcoming Remarks by
· Mohamed Alabbar, Chairman, Emaar Properties, United Arab Emirates; Co-Chair of the Summit on the Global Agenda
· Lord Malloch-Brown, Senior Adviser, Global Redesign Initiative, World Economic Forum
· Richard Samans, Managing Director, World Economic Forum
Introduction and Moderated by
André Schneider, Managing Director and Chief Operating Officer, World Economic Forum

Friday 20 November, 12.00 - 12.30 (08:00 - 08:30 GMT)

Opening Press Conference
• Mohamed Alabbar, Chairman, Emaar Properties, United Arab Emirates; Global Agenda Council on the Future of Real Estate
• Lord Malloch-Brown, Senior Adviser, Global Redesign Initiative, World Economic Forum
Moderated by
• André Schneider, Managing Director and Chief Operating Officer, World Economic Forum

Friday 20 November, 13.15 - 13.45 (09:15 - 09:45 GMT)

Press conference - Update on the Global Economy
• Sharan Burrow, President, International Trade Union Confederation (ITUC), Belgium; Global Agenda Council on Employment & Social Protection
• Laura M. Cha, Deputy Chairman, The Hongkong and Shanghai Banking Corporation, Hong Kong SAR; Global Agenda Council on Global Investment Flows
• Suzanne Nora Johnson, Chair, Global Agenda Council on Systemic Financial Risk; Global Agenda Council on Systemic Financial Risk
• Howard Davies, Director, London School of Economics and Political Science, United Kingdom; Global Agenda Council on Global Investment Flows
Moderated by
• Richard Samans, Managing Director, World Economic Forum

Friday 20 November, 17.00 - 17.45 (13:00 - 13:45 GMT)

Opening Plenary
Special Address by
• H.H. Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai
Introduced and Chaired by André Schneider, Managing Director and Chief Operating Officer, World Economic Forum

Saturday 21 November, 13.30 - 14.00 (09:30 - 10.00 GMT)

Press Conference - Climate Change, Sustainability and Resources
• Steve Howard, Chief Executive Officer, Climate Group, United Kingdom; Global Agenda Council on Climate Change
• Caio Koch-Weser, Vice-Chairman, Deutsche Bank Group, Deutsche Bank, United Kingdom; Global Agenda Council on Climate Change
• Pavan Sukhdev, Study Leader, TEEB and Project Leader, Green Economy, United Nations Environment Programme - World Conservation Monitoring Centre (UNEP-WCMC), Cambridge; Global Agenda Council on Ecosystems & Biodiversity Loss
Moderated by
• Richard Samans, Managing Director, World Economic Forum

Sunday 22 November, 12.45 - 13.45 (08:45 - 09:45 GMT)

Closing Plenary
Rapporteurs report back on the key outcomes of the six Cluster Dialogues, which will serve as the framework for the Summit Report.
Closing Remarks by
• Mohamed Alabbar, Chairman, Emaar Properties, United Arab Emirates; Co-Chairman of the Summit on the Global Agenda
•André Schneider, Managing Director and Chief Operating Officer, World Economic Forum
Rapporteurs are
· John J. De Gioia, President, Georgetown University, USA
· Ashraf Ghani, Chairman, Institute for State Effectiveness, USA
· Steve Howard, Chief Executive Office, Climate Group, United Kingdom
· David Kennedy, Director, Institute of Global Law and Policy, Harvard Law School, USA
· Suzanne Nora Johnson, Chair, Global Agenda Council on Systemic Financial Risk
· Josette Sheeran, Executive Director, United Nations World Food Programme (WFP),Rome.

Workplace Needs To Be At Heart Of Battle Against Chronic Diseases

The Forum has linked up with the World Heart Federation and the World Health Organisation to call for workplaces to become central in the fight against chronic diseases. The message is targetting governments, employers and workers and comes in the run up to World Heart Day on Sunday 27 September under the slogan "Work with Heart". 

Chronic diseases such as heart disease and stroke are the leading cause of death worldwide and are not confined to developed countries - in fact 80% of heart related deaths occur in lower income countries.

The Forum has recognised that more needs to be done in this field and is working with other leading international organisations through its Working Towards Wellness Initiative. Apart from the moral obligation to take care of its staff, a business stands to gain from a healthy workforce, including increased productivity and fewer days lost through illness. For more go to: http://www.weforum.org/en/initiatives/wellness/index.htm