dcene - 2010 annual conference: opportunities in crisis 2

DCeneInspiring People. Shaping the Future.

DCene is the Washington, DC-based Bertelsmann Foundation’s occasional internal newsletter. It’s designed to inform our colleagues in Gütersloh, Brussels and Barcelona of some of the Foundation’s North American activities.

©Copyright 2010, Bertelsmann Foundation. All rights reserved.1101 New York Avenue, NW, Suite 901 • Washington, DC 20005 USA • Tel: +1.202.384.1980 www.bertelsmann-foundation.org

Defining New Avenues of GrowthBertelsmann Foundation’s 2nd annual conference highlights need for global cooperation and solutions to financial crisis

The Bertelsmann Foundation again joined forces with its media partner,

the Financial Times, to host a second annual conference. “Opportunities

in Crisis 2: Defining new avenues of growth” was held April 22 at the

Newseum in Washington, DC. The gathering, timed to precede the

World Bank and International Monetary Fund Spring Meetings, brought

together about 200 high-level representatives of government, business,

academia and the media. Speakers and participants travelled from

around the United States, Europe (overcoming volcanic ash) and

beyond to attend.

The day’s debates and discussion centered on using the global financial

crisis as a catalyst for implementing political, economic and social

reforms that, in turn, would lay the foundation for sustainable growth.

Emphasis was placed on the societal costs of inadequate education

and the G20’s proper role in global governance. A special panel

deliberated whether more women in influential positions could have

lessened the severity of the crisis.

Conference participants included AOL Co-Founder Steve Case,

Canadian Finance Minister James Flaherty, US Undersecretary for

Economic Affairs Robert Hormats, US Congressman Darrell Issa,

World Trade Organization Director-General Pascal Lamy, HSH Prince

Alois of Liechtenstein, Dutch Economics Minister Maria J.A. van der

Hoeven, and The Washington Post Publisher Katharine Weymouth. Panel

moderators included the Financial Times’ John Authers, Atlantic Media’s

Ron Brownstein, CNBC’s Becky Quick and the National Journal’s

Bruce Stokes.

The Bertelsmann Foundation’s annual spring reception preceded the

conference the evening before. That gathering drew more than 400

people to the National Portrait Gallery. Guest of Honor Marian Wright

Edelman, president and founder of the Children’s Defense Fund, gave

a stirring speech about the plight of children, especially in the United

States, who are denied access to proper education and healthcare.

p The opening panel: Debating the merits of the US, European and Asian economic models

“Opportunities in Crisis 2” Special Conference Edition

p Conference hosts Gunter Thielen and Liz Mohn greet Klaus Scharioth, German ambassador to the United States

Photo by Kaveh Sardari Photo by Kaveh Sardari

MA

Y

20

10

PanelsPANEL 1 Stimulating the Economy: Which way forward?

Public trust in government is

near all-time lows in the United

States and is anemic in many

parts of Europe. Yet publics on

both sides of the Atlantic look

to their political leaders to take

action to reinvigorate economic

activity. Americans tend

toward smaller, less intrusive

government, while Europeans

demand intervention and a

strong welfare state. Finding

the right formula for advancing

economic and social well-being was the focus of the conference’s first panel.

P A N E L I S T S :Steve Case, Chairman and CEO, Revolution and Co-Founder, AOL

Huan Chen, Deputy Director General, China Clean Development Mechanism Fund

Caio Koch-Weser, Vice Chairman, Deutsche Bank

Darrell Issa, US Congressman (R-California) and Ranking Member, House Committee on

Oversight and Government Reform

Dave McCurdy, President and CEO, Auto Alliance and former Congressman (D-Oklahoma)

Ronald B. Richard, President and CEO, Cleveland Foundation

Moderator: Bruce Stokes, International Economics Columnist, National Journal

uFor a full report on this session, go to: http://bit.ly/bf2010session2

PANEL 2 Growth through Education: Investing in the human potential

A recent Bertelsmann Foundation

study showed a direct correlation

between a country’s economic

growth and the test scores of its

students. As a result, nations

such as the US and Germany, in

which a significant minority of

teenagers are unable to perform

basic language and mathematical

skills, are losing billions of

dollars in economic output.

Every year that this situation is

allowed to fester exacts greater

costs. Panelists agreed the situation is serious, but noted that solutions existed. Among

them: introducing policies to retain good teachers, not necessarily those with seniority, and

taking better advantage of the digital age in which today’s students are growing up and in

which they have a strong interest.

P A N E L I S T S :Jörg Dräger, Member of the Executive Board, Bertelsmann Foundation

Carol Goss, President and CEO, Skillman Foundation

Henry Levin, Professor of Economics and Education, Columbia University

Jim Shelton, Assistant Deputy Secretary for Innovation and Improvement, US Department of

Education

Moderator: Ronald Brownstein, Political Director, Atlantic Media Co.


Photo by David Hills

Photo by Kaveh Sardari

DC

ene

OP

PO

RT

UN

ITIE

S IN

CR

ISIS

2 S

PE

CIA

L E

DIT

ION

| 2

Quotes of the Day …on economic growth

DARRELL ISSA, US Congressman (R-California)“Innovation comes from human beings. It

doesn’t come from government spending….

the American solution is going to have to be

reforming our libertarian way to work better,

not adopting a European way because it

doesn’t fit the American psyche…”

CAIO KOCH-WESER, Vice Chairman, Deutsche Bank“Potential growth rates will clearly be

lower globally. The fiscal predicament we

got into will require very tough measures,

even re-definition of the role of state,

less transfers, more investment in R&D

and education and so on, to assure

future growth.”

DAVE MCCURDY, President and CEO, Auto Alliance and former US Congressman (D-Oklahoma)“…we have to define the proper role of

government. And we, in the United States,

certainly support smaller government than,

perhaps, our colleagues in Europe and

Asia. So less intrusion. But there is a proper

role…”

RONALD B. RICHARD, President and CEO, Cleveland Foundation“…if we…encourage people to come

up with good ideas, create the right

environment, make it easy for them to

attract talent, and figure out ways to access

capital so they can build their business,

that’s what creates jobs. That’s what creates

opportunity. And that’s really what’s going

to have to lift us out of this current mess.”

http://bit.ly/bf2010session2


PANEL 3 Managing the Crisis: Who Got It Right?A Bertelsmann Foundation comparative analysis of economic governance in 14 countries

Almost every country was hit by

the global financial crisis, and

many took action to blunt its

impact. But the policies enacted

differed from state to state,

with each going its on way to

preserve national interests. A

recent Bertelsmann Foundation

study examined the steps taken

by 14 advanced and emerging

economies to determine which

were the most effective. The

answer: Emerging economies

often took advantage of their experiences from recent past crises to come out ahead.

The Anglo-American economic model of financial-market-driven capitalism, meanwhile,

suffered a loss in global credibility.

P A N E L I S T S :Sebastian Heilmann, Department of Political Science, University of Trier

Paulo Sotero, Director, Brazil Institute, Woodrow Wilson International Center for

Scholars

Moderator: Paul Murphy, Associate Editor, Financial Times and Editor, FT Alphaville


PANEL 4Re-formatting the Global Economy: Should the G20 be the new platform for world governance?

The G20 is the new G8. The

exclusive group of powerful

nations that used to set the

global economic agenda has

become more inclusive. But is

it enough? Session panelists

agreed that the larger group

had gotten off to a good start,

but representatives of non-G20

states warned that challenges lie

ahead, especially in the area of

development. Those in the G20,

however, noted that the fragility

of the world economy gives them enough issues to deal with at the moment. But the

group’s responsibilities could expand if emerging countries approved, thereby lending

legitimacy to wider responsibilities.

P A N E L I S T S :Shaikh Ahmed bin Mohammed Al Khalifa, Finance Minister, Kingdom of Bahrain

James M. Flaherty, Finance Minister, Canada

Robert Hormats, Undersecretary of State for Economic, Energy and Agricultural Affairs,

United States

Maria J. A. van der Hoeven, Minister of Economic Affairs, The Netherlands

Moderator: John Authers, Editor of Lex, Financial Times

u For a full report on this session, go to: http://bit.ly/bf2010session7



DC

ene

OP

PO

RT

UN

ITIE

S IN

CR

ISIS

2 S

PE

CIA

L E

DIT

ION

| 3

Quotes of the Day …on policies to combat the financial crisis

GUNTER THIELEN, President and CEO, Bertelsmann Foundation“If we continue with casino capitalism, then

sooner or later the legitimacy of our entire

economic system will come into question

on a global level.”

PAULO SOTERO, Director, Brazil Institute, Woodrow Wilson International Center for Scholars“…in Brazil today, you have no financial

asset that is not regulated. Everything

is very much regulated. That obviously

protected Brazil during the crisis.”

…on education

CAROL GOSS, President and CEO, Skillman Foundation“Young people are being totally turned

off by what’s happening today in terms of

education…. They’re not happy.”

JIM SHELTON, Assistant Deputy Secretary for Innovation and Improvement, US Department of Education“President Obama’s administration’s focus

on educational improvement is rooted in

both evidence and innovation, recognizing

that we can’t continue to do the same thing

and expect a different result. We’re saying

how do we do both, how do we look at the

best practices both inside the country and

outside the country, and say what makes…

school systems work.”



PANEL 5The Women’s Perspective: A missed opportunity in crisis?

Would a “Lehman Sisters”

have been better managed and

avoided collapse? The influential

group of female panelists for

this session debated a what-if

scenario in which more women

occupied positions of corporate

power. Some agreed that

women’s tendencies to build

consensus and look at both sides

of an issue may have avoided

a crisis-prone environment of

ego-driven risk-taking. But others

weren’t sure, saying such a generalization cannot be made. All agreed, however, on the

need for better policies, especially concerning childcare, to allow able women to move

into senior managerial roles.

P A N E L I S T S :Vishakha Desai, President, Asia Society

Connie Morella, Board Member, United States Association of Former Members of

Congress, former US Ambassador to the OECD and former Congresswoman (R-Maryland)

Susan Segal, President and CEO, Americas Society and the Council of the Americas

Katharine Weymouth, Publisher, The Washington Post and CEO, Washington Post Media

Moderator: Becky Quick, Co-Anchor, “Squawk Box”, CNBC

u For a full report on this session, go to: http://bit.ly/bf2010session8


q Marian Wright Edelman, president and founder of the Children’s Defense Fund, addressed more than 400 guests at a reception on the evening before the conference

DC

ene

OP

PO

RT

UN

ITIE

S IN

CR

ISIS

2 S

PE

CIA

L E

DIT

ION

| 4

Quotes of the Day …on the G20

ROBERT HORMATS, Undersecretary of State for Economic, Energy and Agricultural Affairs, United States

“…almost every global economic issue

one names today and identifies today

requires a broad group of countries. The

G20 represents the kind of group that can

address these.”

JAMES M. FLAHERTY, Finance Minister, Canada“…it is very hard to get 186 countries to

agree to anything. Therefore, is the G20

doing a good job? Yes.”

“…to the extent financial institutions

contribute to a financial crisis, they should

bear the cost of the financial crisis –

not taxpayers.”

MARIA J. A. VAN DER HOEVEN, Minister of Economic Affairs, The Netherlands“…the G20 declared itself the premium

forum for international economic

coordination and [for] doing something.

That means that you have to live up to it,

that you have to see to it that you really

deliver.”

SHAIKH AHMED BIN MOHAMMED AL KHALIFA, Finance Minister, Kingdom of Bahrain“It’s a very lonely job to be the minister

of finance.”

Photos by David Hills


Keynote Speakers Pascal Lamy, Director-General, World Trade Organization

Mr Lamy noted that despite severe

economic pressures, countries had

generally adhered to good trading

practices and abstained from any

widespread protectionist practices.

He also praised the World Bank and

International Finance Corporation for

ensuring sufficient liquidity, and he

backed their calls for larger contributions

from their member-states. As for the

future, Mr Lamy expressed optimism

about a successful outcome to the Doha

Round of global trade negotiations, while

lauding the so-called Geneva consensus, which argues against economic liberalization

as a panacea.

For a full report on this session, go to: http://bit.ly/bf2010session5

Andrew Kohut, President, Pew Research Center

Mr Kohut reviewed the results of a

recent survey showing historical lows

for Americans’ trust in their government

and other national institutions.

Rising frustration from continued

unemployment and Washington’s

perceived inability to deal with it despite

massive spending is fueling widespread

anger. But Mr Kohut warned that it is too

early to draw any conclusions about the

Obama administration. He cited similar

concerns in the country during Ronald

Reagan’s first year in office, and he noted

that, despite the survey results, Americans expressed confidence in the presidents

themselves. Congress and both parties, however, are generally disliked, as are the media

and the business sector.


HSH Prince Alois of Liechtenstein, Principality of Liechtenstein

In a rare public appearance, Prince

Alois addressed the effects on

Liechtenstein of the financial crisis

and recent international pressure for

financial-sector reform. His Highness

admitted that the crisis affected the

principality as it did larger countries.

Liechtenstein saw economic contraction

and plummeting exports. On the fiscal

side, the principality faces a budget

deficit equal to 15 percent of its GDP.

But Prince Alois noted that his country

has healthy reserves and that none of its

banks required a bailout. He also said that Liechtenstein was meeting its obligations to

introduce sufficient transparency in its banking practices.





DC

ene

OP

PO

RT

UN

ITIE

S IN

CR

ISIS

2 S

PE

CIA

L E

DIT

ION

| 5

Quotes of the Day …on world trade

PASCAL LAMY, Director-General, World Trade Organization“On the whole, the world economy today is

as open as it was at the beginning of

the crisis…”

“….we now are in a situation where

developing countries are more optimistic,

more… globalization-prone, and developed

countries [have a] more reluctant view.”

...on women and the financial crisis

CONNIE MORELLA, Board Member, United States Association of Former Members of Congress, former US Ambassador to the OECD and former US Congresswoman (R-Maryland)“…if Lehman Brothers had been Lehman

Sisters, it would have made a significant

difference.”

“The boy … says, ‘Well, I’m going to be the

doctor, and you can be the secretary.’ The

girl says, ‘OK. I’ll be the secretary of health

and human services.’”

KATHARINE WEYMOUTH, Publisher, The Washington Post and CEO, Washington Post Media“I am a risk taker, and I took a big risk, and I

fell flat on my face last summer. But I said to

everyone in my building… “You know what?

I made a mistake, and I’m OK with that.”





Photo by Kaveh SardariPhoto by David Hills




DC

ene

OP

PO

RT

UN

ITIE

S IN

CR

ISIS

2 S

PE

CIA

L E

DIT

ION

| 6


Photo by Kaveh Sardari Photo by Kaveh Sardari


Photo by David HillsPhoto by David Hills

dcene - 2010 annual conference: opportunities in crisis 2

Documents