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First Challenges identified

The big debate has finally begun around the theme of regional identities and struggles and the first conversations identifying the key challenges have begun to take place in small intimate groups, discussion panels and in the big townhall debate.

The first day of the 2006 Annual Meeting was dedicated to identify the key challenges for each of the major themes of this year's event.

With regards to regional identities and struggles , the main challenges identified, with potential global impact, that face the five major world regions over the coming 12-18 months were:

1. Institution and Governance:  Pushing through the reform agenda, democratization, transparency and building a sense of regional identity and community.  The new “conservative” wave of political leadership. 
2. Security: Taming social unrest through integration, militarization of rouge states and the development of a new breed of terrorism
3. Economics: The long oil boom and the repercussion on global economy. The winners and the loosers, Market reforms
4. Development Struggle: new models of the welfare state for the 21^st century, reform of the labour market and changing balance of demographic population of nations ( local vs immigrants),

Key regional questions that need to be addresssed in the next 12-18 months the most pressing ones identified were:

In terms of k

1. Europe:  How can the European Union clearly define the region’s priorities to ensure that the European Union can work.  Solving the key governance and leadership issue are key to ensuring the ecomomic development of the region in face of a european identity crises

2. Middle East: How can governments in the middle east ensure that their elections are not simply “window dressing” exercises benefiting simply national elites?  How can the long oil boom ensure regional development and stabilty. 

3. Latin America: How can, or will, the new regional political alliances arising from the coming to power of conservative goverments make sure that the market the reforms accomplished thus far are continued?

4. Africa: How can african governments keep the reform agenda moving forward to ensure good public and corporate governance practices become wide spread and they create the structures necessary for strong intra-regional trade aimed at  economic development.

The real question however is what are the mechanisms for change that each region needs to adopt  in order to provide concrete solutions to the key challenges identified?  Are interntational bodies or umbrella organisations going to be able to provide the answers or are the transformations needed only able to be done at a local level?   

Welcome to Economic Imbalances Action Group

Welcome to the World Economic Forum Action Group Blog.

The action group on Economic Imbalances, formed in our Annual Meeting 2006, focuses on the imbalances (and possible shocks) that are affecting global economic conditions -- from fiscal imbalances to the US current account deficit, from "bubbles" to energy prices.

The objective of these blogs is to enable Action Group members to exchange ideas and comments on this topic during the Annual Meeting. But it is open also to other readers, whose comments will be very appreciated! So blog away...

To Action Group 2 members: when posting a blog, please always sign your name so other bloggers know which member of the AG is the author. Also, please always chose the category "Action Group 2" when posting, so the blog is filed and easier to find later on (we don't want good ideas to be lost).

After the Annual Meeting, the blog will become a key mode of communication between AG members throughout the year.

Thanks, and we look forward to your posts!

Ilaria Frau
Global Leadership Fellow
Business Insight
&
Emilio Lozoya
Global Leadership Fellow
Latin America

Arab World Competitiveness Report 2005

The Arab World Competitiveness Report 2005 will be released on 2 April 2005.

There is growing consensus among prominent leaders in the Arab world that ambitious and sustained economic and political reforms are the only way to boost the region's growth performance. The countries of the Arab world vary significantly in their levels of per capita income, the degree of political and economic liberalization that underpins them, and the structure of the productive apparatus, with many being unduly dependent on the energy sector. However, all must boost job creation and income levels and no one questions the urgent need for all Arab countries to implement policies aimed at enhancing national competitiveness. Helping precipitate a debate on how best this can be done, and in what areas, is the main aim of the Arab World Competitiveness Report 2005. Failure to act now could have worrisome consequences for the region's economies and for the regimes that sustain them. Unless countries in the Arab world can ensure gainful employment for their fast-growing populations—particularly the young—the significant political difficulties that are already emerging could worsen, with potentially unfavorable economic and political consequences. World Economic Forum website links: World Economic Forum in Jordan Annual Meeting 2005: "The magic has returned to the mountains," says Peres Egypt's Nazif supports modernization without westernization

Energy: Bottomline Decisions

"Whoever's got the gold makes the rules...". Oil, or black gold, is governed by price and supply. Social and environmental concerns come second in the energy-policy agenda, according to an article in Newsweek by the World Economic Forum's associate director of energy industries, Christoph Frei.

I've tried contacting Greenpeace, UNEP and the Earth Institute about the dilemma between growth (and the energy that fuels it) and sustainability. While I wait for a response, let's hear your views.