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Industry and Institutional Initiatives

January 2014

Industry and Institutional Initiatives2

In today’s complex and dynamic world, leaders require a solid understanding of the key issues affecting global, regional and industry agendas, the range, scale and potential impact of the key global risks that they face and how these various issues may interconnect.

For its industry agenda, the World Economic Forum brings business leaders and industries together to form industry communities which, through high-level and trust-based interaction, explore these various challenges. Industry communities also use the Forum’s powerful regional, constituent and expert networks to draw in the perspectives and expertise of other key stakeholders. Through the power of such multistakeholder collaboration, the Forum helps business leaders and industry communities to generate insight and trigger action on a wide variety of issues. This multistakeholder process involving industry is expressed as an Industry Initiative.

World Economic Forum Industry initiatives can take three forms: a strategic dialogue; an agenda-shaping activity; or a partnership for catalysing impact. They can be sector-focused or involve various industries. The Forum also has a small group of Institutional Initiatives, which can be anchored within a Forum industry community or within a thematic team.

These Institutional Initiatives examine themes of clear and current relevance that reach across the global, regional and industry agendas, and that cut across all of the Forum’s industry, regional and constituent communities. The themes of climate change, trade, food security, water security, and infrastructure form the current group of World Economic Forum Global Initiatives.

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The views expressed are those of certain participants in the discussion and do not necessarily reflect the views of all participants or of the World Economic Forum. REF 150114

IntroductionInstitutional reports such as the Global Competitiveness Report, the Global Risk Report and others help to provide crosscutting insight to all the Industry Initiatives. At each stage of the various types of Industry Initiative interaction, World Economic Forum Industry Partners and Members deepen their community engagement by bonding (through a dialogue), binding (through shaping an agenda) or building (by achieving impact (on a particular theme).

This can often take the form of an evolutionary process, as engagement in an issue commonly deepens over time, strengthening the sense of common understanding and cooperation as participants shift from a community of interest to purpose and then to achievement as the goal is reached and the initiative is exited. During 2014 the Global Agenda Platform will be introduced as a subset of the Forum’s TopLink system. This will help top policy-makers, business and civil society executives and experts engage in thematic discussions relevant to the Forum’s initiatives.

It is by bringing together industry leaders to address common goals and by facilitating such multistakeholder activity from dialogue through to action that the World Economic Forum seeks, both physically and virtually, to create lasting value for its Industry Partners and Members, enabling them to work with other industries, governments, civil society and academia to actively improve the state of the world.

The full portfolio of the Forum’s existing Industry and Instituional Initiatives is listed in this brochure for the Annual Meeting 2014 in Davos. They draw on four decades of World Economic Forum experience in building communities and initiatives to help Industry Partners and Members both adapt to changing contexts and withstand sudden shocks while still pursuing critical goals, and simultaneously creating new visions to transform key issues: “The Reshaping of the World: Consequences for Society, Politics and Business” in action.

For this brochure, the various Industry Initiatives and institutional reports are grouped into five themes:

− Competitiveness, Innovation and Economic Growth

− Resource Resilience and Sustainable Growth

− Hyperconnected World

− Business and Society

− Financial System Strengthening

Robert Greenhill Managing Director and Chief Business Officer

Richard SamansManaging Director and Member of the Managing Board

3Industry and Institutional Initiatives

The yardstick for Europe must be global competitiveness. And this must be the yardstick for all of our future policies, for all of our future political coordination.

Global Competitiveness Report (GCR)

The Forum’s Global Competitiveness Report is widely recognized as the world’s leading cross-country comparison of factors affecting economic competitiveness and growth. First released in 1979, the report provides the most comprehensive assessment of competitiveness of over 140 developed and emerging economies and provides businesses with a unique benchmark.

The Global Enabling Trade Report

Published on a biennial basis, The Global Enabling Trade Report assesses the quality of institutions, policies and services facilitating the free flow of goods over borders and to their destinations. At the core of the report, the Enabling Trade Index benchmarks the performance of over 130 economies in four critical areas: market access, border administration, transport and communications infrastructure, and regulatory and business environment. As a widely used reference, the report helps economies integrate global value chains and companies with their investment decisions. It informs policy dialogue and provides a unique tool to monitor progress on various aspects of the global trade agenda.

Europe 2020 Competitiveness Report

On a biennial basis, the Europe 2020 Competitiveness Report assesses Europe’s performance against its 2020 strategy to achieve smart, sustainable and inclusive growth. It does this by bringing in the perspective of the business community on the relative progress of European countries in meeting the goals. The system complements Europe’s own monitoring activities of the 2020 agenda via the European Semester, an annual cycle of EU economic surveillance, launched in the aftermath of the 2008 crisis to align coordination of fiscal, economic and structural policy.

The Travel and Tourism Competitiveness Report

The Travel and Tourism Competitiveness Report, produced in partnership with our Industry and Data Partners, is a unique analysis of the drivers of T&T around the world. Assessing 140 economies, the report is an important benchmarking tool for making decisions concerning business and industry development, as well as informing policy-makers about obstacles to T&T competitiveness. The aim is to enable dialogue between private and public sectors, with a view to creating an environment that fosters T&T development at a national level.

Competitiveness, Innovation and Growth

Global Risks Report (GRR)

The annual Global Risks Report analyses global risks over a 10-year time span in terms of their perceived impact, likelihood and interconnections. These risks are divided into five categories: economic, environmental, geopolitical, societal and technological. Drawing on a survey conducted among the Forum’s multistakeholder communities, the report connects the dots between different risks to form three key narrative “risks in focus”.


The European Potential for Open Innovation Networks

The Forum’s Global Competitiveness Report highlights innovation as a key factor in sustainable economic growth and job creation. This project brings together entrepreneurs, businesses, researchers and policy-makers to develop the process of “open” innovation, which makes use of new digital capabilities and connectivity to spread ideas and boost Europe’s economy.

This initiative aims to improve open innovation as part of the Forum’s Europe Regional Programme. The project will be delivered in three phases:

– Identifying and bringing together relevant value chains and stakeholders across Europe

– Finding new ways to innovate and anticipating the impact of new innovations

– Creating the supporting conditions – information networks, discussion platforms, useful products – for open innovation to get off the ground

Global Strategic Infrastructure Initiative

African Strategic Infrastructure Initiative - Without adequate infrastructure endowment, Africa risks sacrificing approximately 2% of GDP growth a year. To ensure its competitiveness, the continent must make the development of infrastructure one of its top political priorities. This Forum initiative is jointly coordinated by the African Development Bank, with the support and guidance of the Africa Union Commission and the NEPAD Planning and Coordinating Agency

The aim is to define a process of accelerating the implementation of sustainable infrastructure, in two phases:

– Developing a way to identify projects and programmes with high potential for immediate acceleration by the private sector (Phase 1, presented at the World Economic Forum on Africa, Cape Town, May 2013)

– Applying best practices and models drawn up in concept papers that were based on discussions in Cape Town (Phase 2)

Strategic Infrastructure - Although infrastructure development is a key driver of social prosperity and competitiveness, it cannot effect real growth unless it is fully aligned with the country’s economic goals. This initiative aims to help governments prioritize investments and deliver the most effective infrastructure. The main objective of this project is to develop tools, frameworks and policies to inspire action at national, regional and global levels. It has three distinct but interrelated goals:

– To develop strategic infrastructure

– Implement innovative financing

– Carry out regional portfolio studies, such as in Africa or Asia

Global Financing of Infrastructure - Despite the attractiveness of infrastructure as an asset class and the reduced role of traditional financing, it is challenging for investors to find infrastructure projects that are globally competitive on a risk-adjusted return basis. This initiative has, to date, focused on developing a blueprint resource for policy-makers that helps them attract infrastructure funding in an era when investors compare investment opportunities globally. The objectives are to catalyse dialogue amongst governments, investors and other stakeholders on the evolving role of private finance in public infrastructure and develop concrete mechanisms for enhanced collaboration.

Enabling Trade

Trade can bring economic and social benefits; cooperation is needed between government and business to facilitate it. The Enabling Trade initiative provides frequent opportunities for dialogue, supported by in-depth research and analysis.

Specific objectives of the project include:

– Helping businesses source, trade and distribute their products.

– Supporting multilateral and plurilateral negotiations.

– Creating new insight into global, regional and sectoral trade priorities.


New Vision for Education

Technological innovations continue to disrupt the status quo in every aspect of society, redefining skills and changing the face of education. The New Vision for Education project explores what the future of K-12 education may look like to inspire students’ life-long passion for learning, lay a solid foundation for their future career success, and deliver sustainable talent resources to meet society’s long-term needs. The project will focus on examining the following four pillars:

– Designing Education – Content and Curriculum

– Delivering Education – Distribution and Access

– Measuring Education – Performance Metrics, Data Management and Analysis

– Funding Education – Sustainable Models

Harnessing Entrepreneurial Disruption

New technologies and business models that disrupt big markets are invented all the time, and entrepreneurs play an important role in developing them. This initiative will examine entrepreneurial disruption in this context and argue that, as a society, entrepreneurs are important not only for the employment they create, but for the technologies and progress they drive.

This initiative aims to broaden our understanding of entrepreneurs and highlight their vital role in thriving economies and social progress. The objectives for this initiative include:

– Producing insights into how disruptive entrepreneurs create and transform industries

– Providing a platform for entrepreneurs and venture capitalists to explore various means by which they create value to society

– Furthering government understanding of disruptive entrepreneurs and developing policy tools that address barriers to their growth

Emerging Best Practices of Chinese Globalizers

Since China’s reform and liberalization, many Chinese companies have explored and participated in the globalization process. In doing so, they have experienced considerable success and learned valuable lessons. However, given the global competition, Chinese companies have yet to build a truly effective operating model. This initiative will look at ways they can go about it, synthesizing and distilling best practices in four areas: culture, management architecture, global processes and systems, and people capabilities.

The objectives for this initiative include:

– To produce insights into how Chinese companies can go global

– Provide an impartial platform for governments, businesses and other stakeholders to share emerging best practices

– Advocate best practices for the further development of Chinese globalizers

Collaborative Innovation: Future of Biorefineries and Energy Harnessing

Following a recent Energy Harnessing white paper, which tackled the issues of energy storage and helping regions maximize their sources of alternative energies, this project looks at promoting collaboration in the areas of biorefineries, shale gas and alternative energies.

This is an umbrella initiative, currently in two parts. Future of Biorefineries aims to develop insights into the sustainable use of biotechnology and biomass as part of a wider plan for global transformation, while Energy Harnessing looks at the global energy landscape with all relevant stakeholders. Specific objectives include:

– Using insights from the Energy Harnessing white paper to find solutions to energy storage, alternative energy sources and smart materials for enabling industry

– Developing strategies specific to individual regions and creating a map of local natural-energy advantages

– Pushing the following task forces, among others: Emerging Technologies, Energy Storage and The Future of Electricity


New Vision for Agriculture

This initiative aims to achieve food security and sustainable agricultural growth through market-based solutions. To do this, it facilitates collaboration between governments, corporations, international organizations, farmers and civil society. This is an umbrella project that has catalysed partnerships in 14 countries across Asia, Africa and Latin America, while also collaborating globally with the G8 and G20. The project’s three main objectives are:

– Facilitating leadership commitment and action by supporting dialogue and cooperation, and harnessing the strengths of each stakeholder group

– Supporting country transformation by building innovative, action-oriented partnerships in 14 countries around the world

– Promoting innovation and best practice by engaging diverse leaders to share experience and solutions

Resource Resilience and Sustainable Growth

Sustainability means that we have the responsibility to pass on our land to the next generation in good shape. My mantra for the World Economic Forum engagement in this area is to turn ideas into action, catalyse collaboration and show personal commitment.

Grow Africa

Launched in 2011 in collaboration with the African Union and NEPAD, Grow Africa helps to accelerate investment in agriculture. It connects governments, businesses, investors, farmers and development partners to advance ambitious agricultural initiatives. By acting in concert, partners can reduce risk and overcome market barriers.

Grow Africa acts as a trusted connector and problem-solver for governments, the private sector and other partners as they work together on accelerating responsible investment in agriculture. It aims to:

– Help countries convert their agricultural efforts into increased flows of private-sector investment, and connect partners with opportunities to resolve constraints by innovating, sharing best practice and building capacity

– Mobilize resources by sourcing investors, unlocking access to finance and reducing risk; and promote accountability as levels of job creation, income and food security rise

– Help partner countries generate sustainable, inclusive private-sector participation to achieve 6% agricultural growth

Public-Private Cooperation on Climate Change

The Forum has been invited to collaborate with the United Nations to help develop public-private cooperation on key areas of climate change, designed to have a tangible impact by 2020, when a new global agreement is scheduled to start. The portfolio of activities will form part of the Secretary General’s Leader’s Summit on Climate Change, in September 2014.

The UN is negotiating a new accord on climate change, to start in 2020. Leaders at the 2014 Annual Meeting in Davos will discuss and then help build a portfolio of substantive public-private collaboration on climate change by the time of the Secretary General’s Leaders’ Summit in September. The three main objectives are:

– To support worldwide public, private and civil-society cooperation on climate change

– To address key areas of climate change that will also deliver material and quantifiable benefits to society and the economy by 2020

– To invite global leaders to come up with a plan of action by September 2014

Jørgen Ole Haslestad President and Chief Executive Officer, Yara International, Norway


Circular Economy

The MainStream initiative, jointly launched by the World Economic Forum and the Ellen MacArthur Foundation, is driven by business to transform wasteful global resource flows into the future building blocks of a restorative, circular economy

Over two years, the initiative aims to help establish an industry-led collaboration by focusing on the following:

– Developing a roadmap to identify a better understanding of material impurities.

– Building a business case for the use of more efficient materials

Water Initiative: Stewarding the Water Resources Group

The Water Resources Group (WRG) is a global partnership that supports governments in managing the water needs of their countries. It brings together decision-makers, leaders and experts to develop sustainable water policies, carry out economic analysis and strengthen nations against impending water stress.

The World Economic Forum’s Water Initiative is stewarding the 2030 WRG in its current phase of activity. The objectives are:

– To support the 2030 WRG’s move from three to six country partnerships by June 2014. It is currently working in six countries across Asia, Africa and Latin America

– To explore potential activities with an additional four countries, each of which have expressed an interest in collaborating

– To demonstrate how the 2030 WRG and private sector can develop meaningful interaction and cooperation for mutual economic and social benefit. This is a significant shift from the traditional roles of each sector

Responsible Mineral Development Initiative (RMDI)

This project aims to help countries develop their mineral resources in a socially and economically responsible manner. It seeks ways to promote trust and understanding between governments, the private sector, civil society and communities

Specific aims of the project include:

– Organizing a series of country-specific roundtable meetings on responsible mining

– Advancing dialogue among stakeholders at regional and national levels

– Using the framework of “mineral value management” to measure perceptions and expectations regarding the value generated from mining

– Creating partnerships with other organizations to establish RMDI as a key part of the global mining architecture

Engaging Tomorrow’s Consumer

This project looks at how to engage millennial consumers in sustainable lifestyles.

Over 2014, the project will test strategies for making an impact. These include:

– Engaging Marketers: to incentivize brand marketers to embed sustainability in their products and marketing campaigns

– Building the Consumer Case: to develop a more inspirational and aspirational language around sustainability

– Digital Platform for Consumer Collaboration: to create a non-branded, collaborative social media platform that will raise consumer awareness and increase engagement around sustainability

The World Economic Forum’s effort to develop the economic and geopolitical forecast on water is essential. For the first time, all the different perspectives and expertise required to define the full dimension of the problem are brought together.

Ban Ki-moonSecretary-General, United Nations


New Energy Architecture

The world’s energy architecture – defined as the integrated physical system of energy sources, carriers and demand sectors shaped by business, government and civil society – is in a state of transition. Decision-makers must take a long-term view of how a country’s energy system responds to the three key imperatives of energy: to promote economic development and growth, be environmentally sustainable and ensure energy access and security. The Forum – in collaboration with its knowledge partner – has developed an index to measure how the energy systems of 124 countries perform against these three imperatives and which are the factors determining the most successful energy transition to date.

The Future of Urban Development

The initiative works in partnership with cities around the world, helping to make urban innovation accessible to city leaders and businesses alike. It does so by convening a community of more than 100 industry leaders, city leaders and experts to rethink solutions to urban development.

The project focuses its community of leaders and experts on a suite of complementary activities. These include:

– Global Dialogue on New Models for Urban Problem Solving: the community exchanges information on innovative new ways to address urban challenges, ranging from tech-enabled solutions, new governance structures, and more. Sessions are held at the Forum’s major regional and annual meetings

– Champion City Model: board members turn dialogue into action by working directly with mayors of select Champion Cities to test the new models. The activity is currently focused on Chinese cities, but will expand to India and potentially other regions in 2014

– Aggregating Corporate Leadership around Cities and Climate Change: multiple efforts focusing on climate change and resilience have been established involving mayors, various foundations and the private sector. As this activity grows, the initiative will explore ways to accelerate the scaling-up of public-private partnerships

– Urban Anthologies: the Global Agenda Council on Urbanization produces an annual book highlighting major insights into urbanization


Hyperconnected World

Hyperconnectivity is increasing digital interconnection of people - and things - anytime and anyplace. By 2020 there will be 50 billion networked devices – such connectivity will increasingly be part of our everyday life, from cars we drive, pills we take, clothes we wear and media we consume to how we work and how countries are governed. Data from these devices will increasingly shape our societies and economies and our view of the world. Hyperconnected World is a cross-industry, umbrella platform that connects the dots across industry projects to help us understand and manage social, economic and political consequences of digital technology.

Rethinking Personal Data

The trusted, transparent and human-centred use of personal data can have great social and economic value. But the growing volumes of digital information, the lack of institutional capacities and the speed of change have outstripped existing policy frameworks. This initiative focuses on establishing new frameworks, fostering technological innovations and helping individuals to manage their personal data wiselyThe project aims to make the world of personal data more trusted, transparent and user-centred by:

– Leading dialogue among multiple stakeholders with a view to identifying legal, technical and business solutions.

– Applying best practice in the areas of disaster preparedness, health and international development.

– Advancing the aims of the Data-Driven Development Global Agenda Council

Norms and Values in Digital Media: Shaping Solutions for a New Era

The way we create, consume and share information has changed dramatically in the digital era – and the rules are still evolving. This project takes a deep look into intellectual property issues in the digital age, engages a broad range of stakeholders and develops a framework of principles that fosters productive dialogueThe goal is to help major stakeholders – governments, policy-makers, businesses, civil-society groups and innovators – work together to create economic value while developing a vibrant creative community. The project will focus on:

– Understanding new business models, legal solutions and evolving cultural norms related to intellectual property in a digital context

Hyperconnected World

– Identifying which factors are relevant globally and which are market-specific

– Carrying out “deep dive” investigations in two pilot markets – UK and Indonesia – with the aim of establishing dedicated task forces

Risk and Responsibility in a Hyperconnected World

Information and communication technologies are connecting the world in new ways and on an unprecedented scale. It is something that offers unimagined benefits and unexpected challenges. While the advantages outweigh the risks, the risks need to be managed appropriately. The most pressing issue is cyber security. This project addresses the different ways in which hyperconnectivity will affect our societies and economies. Specific objectives include:

– Understanding how a lack of cyber security might affect the economy

– Raising awareness among leaders and promoting action on issues of cyber resilience

– Providing a roadmap and platform for global collaboration

Connected World: Transforming Travel, Transportation and Supply Chains

The World Economic Forum and the Boston Consulting Group have been working on ways to transform travel and transportation to meet our changing needs and solve key obstructions in today’s systems. The project aims to revolutionize travel and transportation by 2025. To achieve this it will:

– Make regional recommendations to policy-makers on how to support the implementation of transport solutions

– Roll out an integrated personal intermodal travel assistant, an automated check-in/security and smart visa system, and an e-logistics solution

– Deliver a proposal to one selected city on how to set up and implement a condition-based megacity traffic management system tailored to the needs of that city

Delivering on Digital Infrastructure

As digital technology becomes a major driver of global wealth creation, there is a growing need for widespread Internet access and high-performance networks. Despite high hopes for digital infrastructure, it faces many challenges, such as a lack of incentives for investment and innovation, conflicting business models and a diverse set of regulatory environments.

This initiative aims to build a new vision for digital infrastructure by:

– Identifying the key challenges that stakeholders face

– Providing recommendations for policy-makers and industry participants on how to foster investment and innovation, and offer consumers a reliable digital experience

Global Information Technology Report (GITR)

Over the past 10 years, the Global Information Technology Report has become a leading resource for decision-makers and civil society organizations. The report explains how to leverage ICT to increase national competitiveness and network readiness. A series of events will be organized to create an enriched dialogue with governments and explore how technology impacts society at all levels.


Business and Society

Partnering Against Corruption Initiative (PACI)

The initiative is one of the strongest cross-industry collaborative efforts at the Forum. Comprising more than 100 companies, PACI members work to achieve greater organizational integrity, transparency and a level playing field in markets throughout the world. PACI establishes a more visible and dynamic global anti-corruption platform by :

– Supporting the development of collective action initiatives through the development of sector-specific efforts

– Engaging the PACI Vanguard community of CEO “champions” in setting a strong “tone from the top” and guiding global, regional and industry anti-corruption agenda

– Facilitating and strengthening coordination between the Forum and key partners, such as the World Bank, OECD, UN and others.

The Women Leaders and Gender Parity Programme

The initiative is committed to closing the global economic gender gap. It takes a systemic, data-driven approach and in 2012 launched country-level collaborations between public and private stakeholders, with the aim of reducing the gender gap by 10% over three years. Gender Parity Task Forces have been created in Mexico, Japan and Turkey, and will expand to India and Korea over 2014.

In order to generate awareness of the global gender gap and forge new partnerships, the programme aims to:

– Monitor the progress of individual countries through benchmarking tools such as the annual Global Gender Gap Report, one of the Forum’s flagship series.

– Identify ways to address gender inequality in business, through the online Repository of Best Practices and extensive public policy research.

– Engage leaders and experts from government, business, civil society and academia to collaborate on innovative approaches to closing the gender gap.

Health Systems Leapfrogging in Emerging Economies

Emerging economies face a growing challenge of placing their health systems on the path to sustainability. However, as they follow in the footsteps of more advanced health systems, they risk falling into the same traps. These can be more damaging, financially, than those faced by some developed economies today. To avoid this, emerging economies must get to grips with disruptive new technologies, key learnings and alternative operating and financing models that were neither evident nor possible for developed economies. This initiative aims to develop insights that would help emerging economies avoid making the same sustainability mistakes as developed economies.

What I find most appealing about PACI is the dedication to collaboration. From Transparency International to the United Nations, PACI works with all players to mutually enhance and support anti-corruption efforts.

Cobus de Swardt Managing Director, Transparency International, Germany



Data-Sharing for Personalized and Precision Healthcare

In today’s healthcare industry, players remain fragmented in their approaches to exchanging data. There is no coherent framework and thinking still remains conceptual. Under the auspices of the New Data Commons initiative, significant progress has been made in the “data sharing in health” section: a study was carried out to gauge what types of genomics data sharing projects are already in existence and to collect industry perspectives on what the obstacles to data sharing might be.

This project aims to make personalized and precision healthcare a reality. It will do this by:

– Bringing together public and private stakeholders from Health and ICT to design and spearhead a data-sharing initiative

– Develop a proposal for a new initiative to accelerate the science through data sharing, based on the New Data Commons study and interactions with data experts from the Forum’s Global Agenda Councils

– Share the proposal with stakeholders in Davos at the Annual Meeting 2014

Healthy Living Initiative

The Initiative aims to bring together governments, private sector and civil society to catalyse concrete multistakeholder collaborations to support healthy, active lives for individuals, communities and societies. At the global level the Initiative has engaged over 150 leaders in the development of the Charter for Healthy Living, a global blueprint for all stakeholders to contribute to making the healthy choice the easy choice. The Charter is supported by a Toolkit with step-by step guidelines, hands-on templates and case studies. This progress has further been used to catalyse opportunities for collaborative actions in Mexico and India. As a next step, a pool of interested players across sectors are preparing assessments to better understand the requirements for action in both countries, which will move forward in 2014.

The Leadership, Trust, Economic Performance Equation

This project addresses society’s loss of trust in business and examines the fundamental disconnect between society’s understanding of trust and that of business.

The objectives are:

– To improve understanding among business leaders as to why public trust in business has fallen

– To demonstrate the economic case for a company to invest in trust-building

– To develop a new model of public-private interaction to build trust

Energy for Society

Energy systems tread a careful path between government regulations and social acceptance. Failing to win popular support can lead to a no-win situation, in which energy companies fail to operate effectively and societies lose the benefit of a secure and affordable power supply. This initiative is committed to the development of a sustainable energy industry capable of meeting the world’s changing needs

The aim of this project is to engage stakeholders in creating a sustainable energy system and improve the living standards of the underserved. To do this, it will:

– Advocate continuous improvement in the industry

– Promote collaborative action among business and government leaders

– Focus specifically on the issue of social acceptance

For the billion-plus people who don’t get enough food, the effects are quite dramatic. In fact, the reason that kids end up dying of malaria and pneumonia is heavily influenced by the fact that they’re not properly nourished. So if we could just solve the food issues alone, that would have a huge impact on health statistics.

William H. Gates Co-Chair, Bill & Melinda Gates Foundation, USA


Financial System Strengthening

The Role of Financial Services in Society

Among the most damaging repercussions of the 2008 financial crisis and other industry scandals is the widespread loss of trust in the financial system. Given how much financial institutions contribute to economic growth via activities such as saving, investing and allocating capital, the restoration of public trust is imperative. This initiative offers a neutral space in which senior leaders of financial institutions, regulators, academics, and representatives of civil society can candidly discuss ways to increase the social and economic value of financial services

The project’s main goals are:

– To define what it means for financial systems to be “socially useful”, including key activities, indicators of success and performance metrics

– Devise standards and mechanisms (other than, and complementary to, specific regulations aimed at financial institutions) to govern the conduct of industry practitioners, regulators and other participants

– Address critical issues that help shape public perception of financial institutions, such as the need to ensure credit growth and manage trade-offs between financial innovation and stability

Disruptive Financial Innovation

Emerging technologies have the potential to disrupt traditional financial services with implications for the market at large. Businesses that successfully harness these changes can expand their reach and reinforce their core value, while those that cannot risk losing their profitability and market share to new entrants. Through research and analysis involving all the relevant stakeholders, this project aims to:

– Identify which new technologies and ideas are most likely to disrupt the financial sector

– Consider the ways in which new business models can affect the stability, efficiency, transparency and accessibility of established financial systems

– Advance thinking on how financial institutions can engage with these changes in ways that support systemic stability, reinforce competitiveness and provide benefits to consumers

Alternative Investments 2020

This project aims to explore the key driving forces that will have an impact on the private equity, hedge fund and venture capital industries in the next five years. This effort will provide practitioners – both

general and limited partners – with the opportunity to discuss the different social, economic and regulatory factors that might shape the post-crisis alternative investments landscape through 2020.

Direct Investing by Institutional Investors

Institutional investors, such as sovereign wealth funds and public pension funds, are increasingly hiring people who can make direct investments and manage hard-to-sell parts of their portfolios. It’s a trend that could affect future institutional investment strategies, the asset markets in which they invest and the alternative investments industry at large.

The aim of this project is to produce a comprehensive study of direct investing by institutional investors, and shed light on its potential effects. It will do this by:

– Charting the growth and drivers of direct institutional investing

– Developing and testing hypotheses of how the increased presence of direct institutional investment affects asset markets in private equity, infrastructure and real estate

– Projecting possible trajectories for the future of the trend


Building Local Capital Markets in Emerging Economies

This initiative recognizes that capital markets play a critical role in economic development, yet they remain underdeveloped or are non-existent in small-scale, emerging economies. The project asks whether the challenging, long-drawn-out process of establishing local capital markets can be accelerated, and how this can be achieved.

This initiative will attempt to overcome the orthodox wisdom around the slow creation of capital markets. In addition to policy-makers and multilateral organizations, the project will draw heavily on private sector and industry expertise, and will seek to answer questions on financing of infrastructure, SMEs and retirement funding as well as broader macro-policy issues.

Mainstreaming Sustainable and Impact Investing

Institutional investors increasingly take into account environmental, social and governance criteria when making investment decisions. Recent studies suggest that, by 2015, the sustainable investing market will more than double, growing from 7% assets under management to 15%-20%. The project aims to share best practices among investors and break down the key barriers preventing sustainable investing from going mainstream. In addition, participants focus on ways to enhance the triple bottom line through impact investing.

Financial Inclusion

More than half of the world’s working-age population does not have quality, affordable financial services, having to rely on informal means of building and securing their assets. However, exciting progress is being made in the creation of an inclusive global financial system. The initial phase of this project has explored core topics, such as bridging the gap between access, usage and supply-side delivery economics, as well as identifying opportunities for industry collaboration in retail and agriculture

This initiative aims for action and tangible impact. A joint innovation agenda for 2014 is expected to extend formal financial services to the underserved via:

– Providing access to a formal digital finance network to support new services, new providers and more efficient business models, and creating a broader network that improves the economics of inclusive finance

– Expanding MSME and smallholder-farmer access to finance

– Making use of new technologies to improve information transfer and transparency

As we think about addressing the fractures in the financial system, we must consider not just the inefficiencies and shortcomings as highlighted in the last crisis, but also consider emerging and unknown risks.

Anshu Jain Co-Chief Executive Officer, Deutsche Bank, Germany and Co-Chair of the Governors for Financial Services for 2014

Benchmarking Financial Systems

Ensuring sustainable economic growth and financial stability is indispensable in aging societies, especially in emerging markets. At a time when policy-makers are dealing with the aftermath of the 2008 financial crisis and the private sector is operating in an increasingly complex and uncertain environment, this initiative hopes to generate strategic insights and dialogue between politicians, businesses and organizations in order to shape a policy reform agenda and more prosperous financial systems in the 21st century

The project aims to measure and analyse the metrics of financial systems in a number of countries around the world, creating a tool that will develop a macro-economic picture. This tool will not only provide an objective assessment and ranking of selected countries’ financial sectors, but also serve as the basis for convening relevant stakeholders, who can jointly identify priorities for improvement


Listing of initiatives and reports by industry

Basics & InfrastructureCollaborative Innovation: Future of Biorefineries and Energy HarnessingGlobal Strategic Infrastructure InitiativeResponsible Mineral Development InitiativeThe Future of Urban Development

Consumer IndustryEngaging Tomorrow’s ConsumerGrow Africa New Vision for Agriculture

EnergyEnergy for SocietyNew Energy Architecture

Environmental InitiativesCircular EconomyPublic-Private Cooperation on Climate ChangeWater Initiative: Stewarding the Water Resources Group

Financial ServicesBenchmarking Financial Systems Disruptive Financial InnovationFinancial InclusionThe Role of Financial Services in Society

Global Health and HealthcareData-Sharing for Personalized and Precision HealthcareHealthy Living InitiativeHealth Systems Leapfrogging in Emerging Economies

Information & Communication TechnologiesDelivering on Digital Infrastructure Rethinking Personal DataRisk and Responsibility in a Hyperconnected World

InvestorsAlternative Investments 2020 Building Local Capital Markets in Emerging Economies Direct Investing by Institutional InvestorsGlobal Strategic Infrastructure InitiativeHarnessing Entrepreneurial Disruption

Media, Entertainment & InformationNew Vision for EducationNorms and Values in Digital Media: Shaping Solutions for a New Era

MobilityConnected World: Transforming Travel, Transportation and Supply Chains Enabling TradeThe Global Enabling Trade ReportThe Travel & Tourism Competitiveness Report

Professional ServicesThe Leadership, Trust, Economic Performance Equation

OtherEmerging Best Practices of Chinese GlobalizersEurope 2020 Competitiveness ReportGlobal Information Technology Report (GITR)Global Competitiveness Report (GCR)Global Risks Report (GRR)Partnering Against Corruption Initiative (PACI)The European Potential for Open Innovation NetworksThe Women Leaders and Gender Parity Programme

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