summit on the global agenda2008

Highl ights

Summit on the Global AgendaDubai, United Arab Emirates 7-9 November 2008

Preface

Page 6Introduction

Page 7Executive Summary

Page 11Economic Development and Growth

Page 14Environment and Sustainability

Page 18Finance and Business

2Geopolitics and Global Governance

Page 24Health

Page 28Regions

Page 32Society and Values

Page 34Technology and Innovation

Page 38Acknowledgements

Contents

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4 | Summit on the Global Agenda 5 | Summit on the Global Agenda

Preface

“This Summit has heightened our appreciationof the urgency and necessity to address globalchallenges in an integrated way and what needsto be done to improve the state of the world.”

Klaus Schwab, Founder and Executive Chairman, World Economic Forum

The inaugural Summit on the Global Agenda was atruly historic undertaking. Amid the most profoundcrisis of our generation, the World Economic Forum, inpartnership with the Government of Dubai, broughttogether 700 Members of the Network of GlobalAgenda Councils, the world’s leading minds, toaddress the most important challenges facing theworld in a collaborative, integrated and proactive way.

The Summit, held on 7-9 November 2008 in Dubai,marked the biggest brainstorming session that hasever taken place on the global agenda. It enhancedour shared understanding of the state of the worldand the complexity of global issues while heighteningour appreciation of the urgency and necessity toaddress global challenges and what needs to be doneto improve the state of the world. The gatheringimbued a greater sense of duty and responsibility, andemphasized the need for a “fundamental reboot” ofthe human and organizational operating systems.

Tremendous richness in the discussions transpiredand this Summit Report captures selected highlights.Throughout the Summit, participants were engaged inmany intense and thoughtful small-group discussionswithin their respective Councils, assessing the state ofthe world on their issue and identifying what needs tobe done to move the agenda forward. These CouncilMeetings were interwoven with opportunities to meetwith Members of other Councils, to explore more fullythe interconnections among global issues and tobenefit from cross-disciplinary perspectives andexchanges of ideas. The gist of these discussions iscaptured in each Council Report, available on ourwebsite at www.weforum.org/globalagenda/reports

The Summit is also historic in its direct link to theupcoming World Economic Forum Annual Meeting2009 in Davos-Klosters on the theme, “Shaping thePost-Crisis World”. The outcomes of Global AgendaCouncil deliberations will be shared in relevantsessions at the Annual Meeting by the respectiveChairpersons of each Council. Articles on the Summitthemes as well as the Council Reports will also beintegrated in a publication that will be shared with allAnnual Meeting participants ahead of the Meeting tohelp them navigate the complexity of shaping thepost-crisis world.

Each one of us needs to be proactive in shaping theglobal agenda and I count on all Global AgendaCouncil Members as well as the broader Forumcommunity to advance the current work of theCouncils and help ensure that the world’s leaders arebest informed on the most pertinent actions in thisvery crucial time in our history. There is tremendouspotential for what the Network of Global AgendaCouncils can accomplish and so we look forward toyour continued engagement.

Klaus SchwabFounder and Executive Chairman

7 | Summit on the Global Agenda

The inaugural Summit on the Global Agenda in Dubaiwas a landmark event not just because the WorldEconomic Forum had never before convened morethan 700 thought leaders from business, governmentand civil society from over 60 countries to brainstormon the most pressing global issues. The truesignificance of the Summit will only become apparentin the coming weeks and months, as the work of the68 Global Agenda Councils continues in the run-up toand beyond the World Economic Forum AnnualMeeting 2009, which will take place in Davos-Klostersfrom 28 January to 1 February under the theme“Shaping the Post-Crisis World”.

The convening of what World Economic ForumFounder and Executive Chairman Klaus Schwabcalled “the largest ever brainstorming on the globalagenda”, just as the worst global financial crisis sincethe Great Depression began to hit real economiesacross the world, was a coincidence. But the contextgave Summit participants a raw sense of urgency thatfocused their discussions and prompted livelyexchanges and debates over the three-day meetingthat launched a long-term process to help shape theagenda of the post-crisis world.

“This is truly an extraordinary period in the history ofhumankind,” said Schwab. “It is a time of crisis,unprecedented uncertainty and even fear. But it is alsoushering in the opportunity to make much neededchanges.” He concluded: “The Summit has

heightened our appreciation of the urgency andnecessity to address global challenges in anintegrated way and to do what needs to be done toimprove the state of the world.”

To be sure, nobody can wait for the crisis to correctitself. The world needs to react quickly but in adeliberate way, with both national solutions and wellthought out and coordinated global approaches. Thisis a turning point beyond which is either an improvedworld or a much diminished one – the resultdepending on the quality and depth of thecollaboration of the international community. “Despitethe negativity of today’s situation, we can learn apositive lesson from it,” suggested His HighnessSheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the United ArabEmirates and Ruler of Dubai. “People are decision-makers and they can write their own history.”

As former President of Mexico Ernesto Zedillo Poncede Leon, Director of the Yale Center for the Study ofGlobalization at Yale University, USA, pointed out, “theway in which we manage this crisis will have a lastingeffect on the global economy. We could have very badideas and those bad ideas to confront the crisis couldhave lasting and costly consequences for years tocome. We could have good ideas that areimplemented well and when we overcome the short-term crisis, we would then be in a better situation toconfront the future than we were in before the crisis.”


Executive Summary

“Despite the negativity of today’ssituation, we can learn a positive lessonfrom it. People are decision-makers andthey can write their own history.”His Highness Sheikh Mohammed Bin Rashid Al Maktoum,Vice-President and Prime Minister of the United Arab Emirates; Rulerof Dubai

“The Summit is among the most path-breakinginitiatives undertaken by the modern world. Asthe world’s largest brainstorming event, it is notmerely about setting agendas; it is about layingthe groundwork towards practical andactionable solutions. We are confident that thedeliberations will be of immense value to thepeople of the world for the long term.”

Mohamed Alabbar, Chairman, Emaar Properties, United Arab Emirates;Co-Chair of the Summit on the Global Agenda

Introduction

It was an honour and privilege for the Government ofDubai to co-host the inaugural Summit of the WorldEconomic Forum’s Global Agenda Councils, theworld’s foremost intelligence and knowledge network.

The world’s finest minds including Nobel Prizelaureates, industry captains and thought-leaders metin Dubai to share ideas and insights that will assistpolicy-makers to address the most pressingchallenges that the world faces today.

Hosting the Summit was a testament to the visionaryleadership of His Highness Sheikh Mohammed BinRashid Al Maktoum, Vice-President and PrimeMinister of the United Arab Emirates, and Ruler ofDubai. His commitment to action and executionmakes him a global thought-leader.

Though the Summit came amidst the global financialcrisis, the direction of the Council meetings was totake a holistic and integrated approach to globalissues and set agendas based on long-term strategicperspectives. Out of the nearly 70 issues that weredebated at the Summit, 40 are pressing globalchallenges ranging from the improvement of the globaltrade regime to climate change and food and watersecurity. The topics addressed significantly influencethe lives of people from all walks of life.

The agendas set at the Summit will now have a far-reaching impact on the way governments function,businesses are conducted and people meet everydaychallenges. The Dubai Summit, thus, can pave theway for a new era in global progress. The evaluationsof the Summit will serve as a primer for further thoughtand action at the World Economic Forum AnnualMeeting 2009 in Davos.

The global interest that the Summit has sparked willserve as an inspiration for every participant as, in thecoming days, their thought-processes will be furtherdiscussed and evaluated to eventually become thebasis for policy-making.

As the world at large enters into a new era ofunprecedented challenges and opportunities, theSummit was a timely, collective and truly global effortto pave the way for meaningful change that can bebrought about only through constructive thinkingfollowed by positive action.

We are honoured that Dubai was chosen as the venueof the meeting and hope that the city’s uniqueambience has inspired insightful thinking. We lookforward to welcoming Council Members to theforthcoming sessions of the Summit in our city.

Mohamed AlabbarCo-Chairman of the Summit on the Global Agenda


Finance and Business

The unfolding financial crisis is leading to the bleakesteconomic downturn since the Great Depression. Theturmoil could derail the global economy unless thepublic and private sectors work together to come upwith efficient and effective solutions.• Governments around the world have beenemploying the right sets of monetary and fiscalpolicies in their toolbox. But the crisis hasundermined the perceived advantage of openfinancial and capital markets, even raising doubtsabout the viability of the capitalist system.

• In dealing with the crisis, governments will be themain actors. Key responses that must move forwardinclude economic stimulus measures andcoordinated interest-rate cuts.

• Critical elements of a new international financialarchitecture should include better regulatorycapacity, higher standards of governance in theprivate sector, stronger links betweenmacroeconomic policies and regulation, moreprobing analysis of economic and financialinformation, clearer rules of engagement forgovernment involvement in the private sector, andwider engagement of market segments that areunderserved.

• Increased regulation should not lead toprotectionism.

• An urgent goal must be to restore confidence andhope in the markets.

Geopolitics and Global Governance

Existing mechanisms must be employed to bettereffect to prevent and deal with global governancefailures including economic crises, failed states andcross-border conflicts. But the current internationalorder cannot handle many challenges such as climatechange and the threat of terrorism.• The international community should heed the wake-up calls and acknowledge that the times demandmore than business as usual.

• On many issues, there is a need to sacrificesovereignty for the greater gain, as nations mustdevelop new collaborative rules of the game inmany areas, just as they have done in trade.

• A key focus must be to strengthen the internationallegal system and the global rule of law.

• While nation states remain the main geopoliticalactors, new powers are expected to take on moreprominent roles in global governance, especiallythrough formats of enhanced importance such asthe G20 or new ones such as a revamped UNSecurity Council.

Health

A critical concern, especially during periods ofeconomic stress, is health. Cheap preventivestrategies to guard against bad health exist but theyare undervalued and underfunded. Better preventionthrough health promotion is essential.• Enormous inefficiencies exist in healthcare systems.New social compacts embedding health entitlementare needed.

• More information and communication on healthissues are necessary. Preventive measures andeducation are key.

• Preparation against pandemics must be steppedup. Openness will not hinder the full collaboration ofall actors and will help identify interconnected risksand opportunities for mitigation.

• Health promotion, disease prevention and disasterpreparedness must be treated as capitalinvestments rather than current expenditure.

• Stronger and more effective governance andleadership on chronic disease and malnutritionshould be developed, especially through public-private partnerships with clear objectives.

Regions

Due to the financial crisis and other global concerns,fear is dominating the international agenda. It is criticalthat trust is restored to markets and to geopoliticalrelations.• Global Agenda Councils underscored the need toresist protectionism and conclude the Doha Roundof trade negotiations. But to do so will require thesubordination of national interests in favour of thegreater regional and global good at a time ofeconomic stress.

• Efforts should be made to rebuild confidence inmarkets. This will require the involvement of majoremerging economies in discussions over a newinternational financial architecture.

• On the environmental front, countries mustcollaborate to forge by 2010 a post-Kyoto Protocolframework to address climate change.

• Various regions must address specific concerns. Forexample, Europe needs to come to terms with aresurgent Russia, while Africa must work to diversifyits economies to decrease the continent’sdependence on commodity exports. The challengefor China and India is to maintain high sustainablegrowth to contribute to global stability as the crisisunfolds.

• Effective and vigorous leadership is crucial toaddressing the multiplicity of complex global andregional challenges.


Concluded Summit Co-Chair Mohamed Alabbar,Chairman of Emaar Properties, United Arab Emirates:this meeting “is not merely about setting agendas; it isabout laying the groundwork towards practical andactionable solutions. We are confident that thedeliberations will be of immense value to the people ofthe world for the long term.”

The world needs a “fundamental reboot” of its basicoperating systems, participants agreed at the end ofthe Summit. The Global Agenda Councils are thefoundation of a brain trust that the stakeholders in thecrisis hope will lead to fresh software that will run new,more effective and sustainable systems of globalgovernance for the 21st Century.

Highlights of the discussions in each of the 68 GlobalAgenda Councils may be found on the WorldEconomic Forum website atwww.weforum.org/globalagenda/reports

The Global Agenda Councils were grouped into eightfocus areas: Economic Development and Growth,Environment and Sustainability, Finance and Business,Geopolitics and Global Governance, Health, Regions,Society and Values, and Technology and Innovation.This report includes articles reviewing the Councildiscussions under each broad topic.

Economic Development and Growth

The financial crisis and its impact have not fuelled callsfor the free-market system to be discarded. On thecontrary, Global Agenda Councils agreed that thefundamental operating system of the global economyremains sound.• The crisis should not be used as an excuse tobackslide on tariff reductions and undertake ill-founded and counterproductive regulatoryinterventions in the markets.

• Better oversight of the financial sector is necessary,but regulatory reform should not be overdone.

• The crisis demands greater transparency; thereshould be no cutback on data collection and theavailability of crucial statistics.

• While the economic downturn has limited thepolitical space for addressing international migrationand reforming national pension systems, low-keyefforts to shape policies should continue inanticipation of a time when crisis-inspired concernsabout unemployment abate.

• New business models and technologies are neededto broaden the economic base and diversify risk bydrawing the “bottom billions” into the mainstream ofthe financial sector so they too can enjoy thebenefits of modern credit, savings and insurance.

Environment and Sustainability

The fuel, food and financial crises are alarm bellswarning of the unsustainability of global consumption.A new mindset is needed.• Risk must be properly priced. Appropriatelyevaluated risk must then be embedded in all humanpractices and decisions.

• Opportunities to reduce energy use and carbonemissions, especially through technologyimprovements and behavioural changes, and topromote alternative energies can be accelerated aspeople gain awareness of their ecological footprint.

• The world must double food production in the next40 years to meet demand.

• The key to solving global problems from poverty toclimate change is the need to come to grips withexpanding urbanization and the social inequality thatresults from it.

• A comprehensive and sustainable new energyparadigm is needed. The financial crisis is likely toweed out inefficient business models and promotethe expansion of the clean energy and technologysectors and sustainable design.

“The current financial crisis is causinga profound transformation in thepolitical landscape. It is important thatworld leaders think carefully about thepost-crisis world and how we canimprove global governance.”

Fiona Paua, Senior Director, Head of Strategic Insight Teams,

and Head of the Network of Global Agenda Councils

“It would be sheer folly to let faith in thissystem be shaken by the financial andeconomic crises and to backslide on tariffreductions and other key aspects of tradepolicy, or to undertake ill-founded andcounterproductive regulatory interventionsin markets.”David E. Bloom, Clarence James Gamble Professor of Economicsand Demography, Harvard School of Public Health, USA


Wherever there are markets, market players – whetherthe government, business or the consumer – willalways be looking for new drivers of economicdevelopment and growth. But it is difficult to putforward a “unified theory” of how to achieve growth –different circumstances demand the pulling of differentlevers. Yet much of the world has come to accept aset of guiding principles – that trade drives growth, forexample – as good policy. The financial crisis and itsimpact on the real economy have not led manypeople, if any, to conclude that the free-market systemis somehow fatally flawed and should be discarded.On the contrary, as the discussions of the GlobalAgenda Councils in this group made clear, there iswidespread acknowledgement that the basicoperating fundamentals of the market system haveproduced phenomenal improvements in livingstandards around the world and remain sound.

The bottom-line principles of economic developmentand growth that emerged from the deliberations of theCouncils are:

• Where possible, competitive markets are the mosteffective means of resource allocation.

• Entrepreneurial activity, technological progress andthe accumulation of physical and human capitalmake extraordinary contributions to economicgrowth.

• As the Commission on Growth and Developmentchaired by Nobel laureate Michael Spence found,no country has successfully developed withouttrade.

• Government works best when it focuses on thefinancing or provision of infrastructure and otherpublic goods, the efficient correction of marketfailures and the maintenance of a humane, butincentive-driven, social safety net.

The Councils in this group, said Rapporteur David E.Bloom, Clarence James Gamble Professor ofEconomics and Demography, Harvard School ofPublic Health, USA, in his report in the closing plenaryin Dubai, concluded that “it would be sheer folly to letfaith in this system be shaken by the financial andeconomic crises and to backslide on tariff reductionsand other key aspects of trade policy, or to undertakeill-founded and counterproductive regulatoryinterventions in markets.”


Economic Development and Growth

Society and Values

To address pressing global challenges requires thedevelopment of the human potential of all peopleregardless of race, ethnicity, religion, gender orgeographic location. Discrimination and povertyremain major impediments to this goal.• Education must be used to shape the values ofcitizens, especially young people. Religioustraditions can be important bases for promotingdialogue and understanding.

• Visionary leadership and the media can also playimportant roles in promoting positive change andbringing people together.

• Youth represent an untapped potential. They needto be perceived as problem solvers rather than theproblem.

• Children, families and their welfare should be at theheart of the global agenda. To improve education,healthcare and child protection requires amultistakeholder approach.

• Other vehicles for enhancing social cohesion andcommunity building include faith, informationtechnology, journalism and sport.

Technology and Innovation

During an economic downturn, technology andinnovation can serve as potent sources of growth solong as the investment and talent are there to drivethem.• Because of its severity, the crisis is likely to be agame-changing factor that will prompt the adoptionof new technologies and innovations that willchange the productivity of industries and alter thecompetitive advantages of economies.

• The expansion of global networks such as theInternet and the convergence of the Internet withmobile communications are resulting in the creativedestruction of business models and the growingrecognition that the current intellectual propertyrights (IPR) regime must be reformed to ensure thatit does not impede technological progress andinnovation.

• The consumer is driving technological developmentsand innovation. Education systems that promotethinking in silos rather than a multidisciplinaryapproach should be revamped. The world needs a“fundamental reboot” of education.

• Cyber crime, censorship, linguistic barriers and thevested interests of traditional IPR gatekeepers mayhinder innovation and the creation of newtechnologies.

• Capital is still king. To drive technology developmentand innovation requires funding.


There is certainly reason for better oversight andregulation of the financial sector to rein in the recentexcesses but doing so must not be at the expense ofvalue creation which needs stimulating. “How canindustries help solve these problems?” asked EdwardB. Roberts, Founder and Chairman of the MITEntrepreneurship Center, USA. “Let’s make sure not tosuppress the people who have created jobs forcenturies [or their solutions].”

Experts and thought leaders in Dubai opposedstatistical blackouts, or cutbacks on data collectionthat might be expected due to tighter governmentbudgets or the desire to avoid communicating badnews. Instead, they called for greater transparencyand more rational decision-making that requires moreand better statistics, not excuses for getting by withless.

International migration was another key issue thatconcerned Council members. Until a few months ago,many Summit participants would have readilyaccepted that the world should develop a principledsystem for governing the movement of people acrossborders. Although the economic and demographicpressures for migration are substantial, there are fewerthan 200 million people living in countries other thanthe one in which they were born. This represents lessthan 3% of the world’s population, suggesting thatfreer mobility may be an especially potent way torealize further gains from globalization. It would atleast boost remittances, which have become such animportant driver of growth in many countries.

But as the deliberations in Dubai made clear, in thecontext of an unfolding global financial crisis, anincreasingly complicated set of political, social andeconomic winner-loser calculations would have to beconsidered. With the prospect of increasedunemployment in many economies, this is not theright time to take on the thorny issue of internationalmigration. Instead, experts might better use this timeof economic turbulence to quietly work out thearchitecture of a global system of internationalmigration to be ready when the stars are morefavourably aligned.

The same goes for national retirement policies, whichhave been remarkably stagnant in the face of a two-decade increase in global life expectancy in just thepast 50 years and a demographic shift that has theglobal population aged 60 and over increasing from670 million to 2 billion between now and 2050.Retirement incentives that peak at age 65 no longermake sense in a world in which life expectancy hasrisen so sharply, skills gaps have widened and even

tighter labour markets are on the horizon. But, as withmigration policy, the room for addressing this issue byraising the retirement age has narrowed significantly inlight of the spreading crisis.

The final set of messages from the Global AgendaCouncils relating to economic development andgrowth has to do with strategies for going on theoffensive against costly inefficiencies and missingmarkets. These include policies of human capitalinvestment that are more inclusive of women andminorities. They also include policies that promotegender- and race-blind rates of return on thoseinvestments. They include encouraging socialentrepreneurs to identify high-impact health, educationand poverty-reduction initiatives that can turn intoviable commercial ventures that are efficient, scaleableand sustainable.

And finally, there is the need to review inadequatebusiness models and reform antiquated regulationsthat undermine the use of new informationtechnologies such as mobile telephony. New bankingmodels and novel technologies have substantialunrealized potential for drawing the bottom billions intothe mainstream of the financial sector so they too canenjoy the benefits of modern credit, savings andinsurance. Access to those products would enablepeople to save for lean times, conduct consumertransactions more easily, gain access to betterhealthcare and education for their children, and startbusinesses and grow them. The goal: to foster aninclusive financial system that broadens the economicbase and diversifies risks.

Councils focusing on EconomicDevelopment and Growth

Global Agenda Council on:

Benchmarking Progress in Society

Demographic Shifts

Economic Growth and Development

Financial Empowerment

The Gender Gap

Migration

Philanthropy and Social Investing

The Skills Gap

Social Entrepreneurship

Trade Facilitation

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Some of the actions recommended by CouncilMembers in this area include:

• The world must double food production in the next40 years to meet projected demand. But our abilityto meet current and future production needs ischallenged by increasing water scarcity, climatechange, and volatile energy costs and supplies.New, environmentally sustainable solutions for foodproduction must be developed to jointly addressfood, water and energy needs in an integrated way.Private-sector business models that improve foodproduction, incomes and empowerment can play akey role in improving food security.

• Important opportunities for reducing energy use andCO2 emissions exist via technology improvementsand behavioural changes. Innovations that are aboutto become available in vehicle technology andmobility management need to be commercialized.These include vehicle technology alternatives, e.g.electric drive vehicles (battery-electric vehicles andhybrid-electric vehicles) and the integration of ITtechnologies into road vehicles and mobilitymanagement.

• The public sector has a particularly vital role to playin creating effective standards and in developingand enforcing appropriate regulations to cope withnegative risk-based externalities and to encouragethe mitigation, preparedness and prevention ofnatural disasters. Leaders should approach naturaldisasters in the context of a comprehensive riskmanagement framework, focusing on the mitigationof the consequences of natural risks.

• Key to solving any of the global problems of poverty,sustainability, pandemics, civil unrest, gender equity,adaptation to climate change and others is the needto come to grips with the world’s expandingurbanization and its concomitant social inequality.The opportunities and promise of urbanization canbe solved by competent localization of governance.Competent localization means the creation of localgovernments with the fiscal resources and thetechnical competence to carry out their mandatesto provide infrastructure and public services.Empowering local governments is the key. Localempowerment requires enhancing the quantity andquality of information available to local decision-makers.

• A comprehensive and sustainable new energyparadigm is needed. In the developed world, thisparadigm requires energy efficiency, smart gridtechnologies and grid-connected renewables. Inrural parts of the developing world that often lackaccess to grid power, great potential exists fortransformative, low-carbon, off-grid solutions. Theessential enabler for this sustainable energyparadigm is governments’ adoption of clear, long-term, stable, carbon-pricing mechanisms.

• The financial crisis could force a useful shakeoutthat weeds out unsustainable business models andleaves a stronger, more vibrant and cleantechnology sector in its wake.


Environment and Sustainability

Although the world largely failed to heed the earlywarning signs of the economic turmoil now unfolding,the three alarm bells warning of the unsustainability ofthe system – the fuel, food and financial crises – mustnot fall on deaf ears. Indeed, for the Council Memberswhose discussions revolved around the broad themeof the Environment and Sustainability, these signals,termed the “three canaries in the mine”, must beacknowledged and reappraised. “Transform”, “shift”,“restructure”, “reboot”, were all words used again andagain during the Summit on the Global Agenda todescribe what needs to be done to tackle the deepstructural challenges related to food and watersecurity, climate change, unsustainable businessmodels or the energy paradigm. A new mindset isneeded.

Part of this new proposed mindset involves what theRapporteur for this theme, Josette Sheeran, ExecutiveDirector of the United Nations World Food Programme(WFP), Rome, called “transformational transactions”that bring about fundamental change. These must beidentified by all the stakeholders as they find solutionsto the world’s pressing challenges, advancing withconfidence yet mindful not to reverse the internationalgains achieved, for instance, in trade and openness.

Members of the Global Agenda Councils deliberatingthe issues related to the environment andsustainability suggested changing their theme name to“Reappraising Risk”. Risk must be properly priced.Correctly evaluated risk must then be embedded in allhuman practices and decisions. Similarly, greaterfocus on risk management systems is needed. Thusthroughout their work and recommendations, CouncilMembers reiterated the importance of notunderestimating or underpricing risks.

Along with the risks, great potential exists in this timeof crisis and unprecedented change. Opportunities forreducing energy use and CO2 emissions as well aspromoting alternative energies can be accelerated aspeople gain awareness of their individual ecologicalfootprint and businesses finance environmental andother “green economy” projects in their search forvalue creation, recognition and revenues. Meanwhilethe financial crisis has brought to the fore theinterconnectedness of the world’s economies, drivinghome to an even greater extent the potential of largemarkets while simultaneously demonstrating howquickly international action and cooperation can bemarshalled when concerted commitment is needed.The tone of optimism in the opportunities and changemade possible in today’s search for solutions wasrecurrent during the Summit as Council Membersproposed fundamental changes that are currentlypossible.

“The international public sector needsrebooting. Markets need rebooting. Weare confident that you have the visionto do this. We need to turn this fearinto confidence. The reboot startshere.”Josette Sheeran, Executive Director, United Nations WorldFood Programme (WFP), Rome


• Once a tool of consumption chiefly involved in theproduction of objects and images, design is nowalso engaged with developing and building systemsand strategies, and in changing behaviour incollaboration with different disciplines. Designerscan play a critical role in ensuring that products,systems and services are developed, produced,shipped, sold and will eventually be disposed of inan ethically and environmentally responsible manner.

Councils focusing on the Environment andSustainability


Alternative Energies

Climate Change

Design

Ecosystems and Biodiversity Loss

Food Security

The Future of Mining and Metals

The Future of Sustainable Construction

The Future of Transportation

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and inter-bank markets persists. “Capital flows toemerging markets in particular have been severelyimpacted – many businesses are literally shut out ofthe market and can’t get capital,” stated themeRapporteur Suzanne Nora Johnson, Trustee, CarnegieInstitution of Washington, USA.

Real estate is described as a common entry point forinvestments in many developed and emergingmarkets facing relatively little bureaucracy and being aplace to make a very measurable return. But thefundamental mismatch in the value of real estateassets relative to income and profit levels drovemarket prices too high and set the sector up for asharp fall.

“The fuel to fire was very significant,” said NoraJohnson. “Very ambitious short-term shareholderreturn objectives, management incentives and publicpolicies across the board encouraged excessive risktaking and leverage.”

The political knock-on effects are considerable too.The crisis has undermined the perceived advantage ofopen financial and capital markets, and even put intodoubt the essence of capitalism itself.

The Global Agenda Councils on the theme of Financeand Business had a strong sense that in the shortterm, the key actors in the financial system will begovernments. Acting both as regulators and owners,they will have two immediate responsibilities:

• Everyone who is engaged in the crises has to havea seat at the table with the objective of achieving aglobally coordinated response. This is necessary forboth immediate crisis management and the ongoingdevelopment of market regulations.

• Intense government responses to date mustcontinue – Council Members are convinced that thestimulus measures are key and monetary relief inthe form of short-term interest rate cuts is veryimportant. And while government intervention ishere to stay – at least for the short term – it isnecessary to much better communicate governmentintentions and actions to a sceptical public.

In the intermediate and longer term, the followingactions are described as critical elements for thenaissance of a new global financial architecture:

• Build capacity and capability of regulatoryauthorities both in national and internationalframeworks and forums (including quality of talent,compensation and the capability to compete withvery complex and globally interrelated capitalmarkets)

• Improve governance in the private sector, both indeveloped and emerging markets

• Ensure greater linkages between macroeconomicpolicies and regulators

• Carry out greater synthesis and analysis in theaggregate, as transparency and information is notenough


Finance and Business

As the current financial crisis continued to unfold –highlighting the limitations of the existing regime ofglobal coordination and regulation – experts andthought leaders at the Summit on the Global Agendapainted the outlook for the global economy as thebleakest most have ever seen.

The risk of a serious economic slowdown is fastbecoming reality in several countries. No country orindustry is seen as immune from the repercussions.

The intensification of the current economic crisisthreatens to derail the global economy, unless thepublic and private sectors can work together to comeup with efficient and effective solutions. Financialstability and systemic risk rapidly emerge among thetop political and economic concerns around theworld. “We have witnessed a spectacular divorce ofrisk from responsibility,” observed Richard O’Brien,Co-Founder and Partner, Outsights, United Kingdom.

However, the collateral damage will not be limited tothe business and financial sectors; it will also impactwider society, where many beneficiaries of theincredible economic growth of the past few years,such as charities and NGOs, have traditionallydepended on the largesse of the global economy.

The crisis is rooted in macroeconomic imbalances –among them long regimes of low interest rates andhigh asset prices as well as credit, trade and savingsimbalances – and failures across the board in riskmanagement and risk assessment. None of themarket participants – be they governments,regulators, investors, financial institutions, ratingagencies, media or households – are exempt fromcarrying responsibility. The lack of credible andaccountable corporate governance structuresportrayed as another ignored warning sign.

Governments around the world have been veryactively engaged and have, according to the CouncilMembers, employed the right sets of monetary andfiscal policies from their toolbox. And despite that veryactive engagement, severe dysfunction in credit, bank

“Capital flows to emerging markets inparticular have been severelyimpacted – many businesses areliterally shut out of the market andcan’t get capital.”

Suzanne Nora Johnson, Trustee, Carnegie Institution ofWashington, USA


• Define the rules of engagement for governmentinvolvement in the private sector. There is a cleardifference between being a regulator and being ashareholder. Changed competitive dynamics willemerge for private sector companies that are leftout of government bail-out plans. Ongoingconsultations on collaboration and in manyinstances government exit strategies will be critical

• Continue to invest in the private sector and capacitywithin emerging markets – there are still massivegrowth opportunities for business

• Engage the “underserved” to a much larger degree

Two caveats, however, remain. The first is the greatconcern that increased regulation will lead to moreprotectionism. The Councils advocated that everythingbe done to avoid restrictions to trade, capital marketmovements or regulatory arbitrage. An important rolemay be played by emerging multinationals that nowhave greater opportunity than in the past to emergeas two-way ambassadors of responsible globalization,engaging in international trade discussions whileadvocating fewer trade barriers in their home markets.

The second is that for any successful outcome, publicstakeholders need to be re-instilled with a sense ofconfidence and hope for the future. Or as KishoreMahbubani, Dean of the Lee Kuan Yew School ofPublic Policy, Singapore, so aptly put it, “You need thevisible hand of good governance to balance theinvisible hand of economic activity.”

Councils focusing on Finance and Business


Corporate Governance

Economic Imbalances

Emerging Multinationals

Entrepreneurship

Financial Market Development

The Future of Real Estate

Global Capital Flows

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nations have to work together to draft the rules of thegame. An especially urgent priority: a new framework forthe international financial architecture. “If we can do it intrade, why not in other areas?” asked Mahbubani,referring to the mechanisms of the World TradeOrganization.

The Councils focused on the importance of remedyingdeficiencies in the international legal system.Strengthening the global rule of law would help theinternational community deal with pressing globalproblems from pollution to pandemics. The chiefobstacle to achieving this is the lingering reluctance toagree on collaborative solutions. “Problems crossborders without passports but we expect solutions tocross borders with passports,” Mahbubani explained.

To be sure, none of the Councils advocated globalgovernment but instead preferred governance models inwhich nation states are still the main actors. But newcollaborative formats obviously have to be drawn out.“The world expects new powers to provide greaterglobal leadership,” said Mahbubani. Participantsgenerally recognized that the G20 summit on thefinancial crisis in Washington DC in November is alandmark event that heralds the welcome extension ofgovernance over the international financial architecture,however superficial, from the G7 industrialized nationsto the wider group that includes both developed anddeveloping countries, including major emergingeconomies such as China, India, Russia and Brazil.

The international community appears finally to havecrossed a Rubicon, with no going back: for any globalgovernance structure to be truly legitimate, it musthenceforth combine the voices of the established andthe emerging. It is only a matter of time before the

United Nations Security Council is finally revamped toreflect that principle. “At the core of the global crisis is acollapse of trust,” reckoned Thomas Sugrue, Edmund J.and Louise W. Kahn Professor of History and Sociologyat the University of Pennsylvania, USA. “A key toovercoming distrust is inclusive leadership, specificallyrecognizing the voice of marginalized groups.”

Yet not all the new players brought in from the marginsare eager to have greatness thrust upon them. China,for example, is clearly ambivalent about taking on agreater role in international affairs, even though much ofthe rest of the world thinks it should and will do soeventually. “What we want to do is share responsibilitywith other countries,” said Cheng Siwei, President of theChina Association for Soft Science Studies, People’sRepublic of China.

Geopolitics and Global Governance

The Global Agenda Councils that discussed Geopoliticsand Global Governance issues identified threefundamental failures that may occur in this area:• Global market failure such as the financial crisis that isunfolding and beginning to affect real economies

• A failed state, or a country that is unable to meet theresponsibilities implied by sovereignty

• Intergovernmental failure, a dispute or conflictbetween nations

These failures arise for various reasons, from stubbornresistance to the prevailing norms set by theinternational community to an absence of the politicalwill to compromise or find common ground withneighbours or between vying interests within a country.

Councils discussed various initiatives to addressgovernance problems that could lead to suchcatastrophes. Corruption in governance at all levels and

in the private and public sectors is a pervasive problemrequiring concerted action. Participants called for allstakeholders to sign on to the World Economic Forum’sPartnering Against Corruption Initiative, a business-driven multi-sectoral partnership to combat corruptionaround the world. To bridge widening digital divides thatare increasing social divisions within countries andbetween economies, thought leaders proposed a DigitalMarshall Plan. Heading off conflicts between statesrequires coordinated efforts to defuse potentially volatilesituations early. While its institutional framework mayneed to be reformed to reflect 21st-Century realities, theUnited Nations remains the most valuable forum forsuch preventive diplomacy.

For many of the world’s problems, governance solutionsor approaches to address them already exist, someworking well, some not so effectively. Yet manychallenges clearly cannot be handled by the currentorder, said Rapporteur Kishore Mahbubani, Dean of theLee Kuan Yew School of Public Policy, Singapore.Climate change is a stark example. The world hasstruggled to shape collaborative protocols thatsufficiently deal with the problem. The threat of terroristattacks and the proliferation of weapons and materialsof mass destruction are also risks that existing tacticsmay not adequately mitigate. Meanwhile, “illicit trade isgrowing deep and pernicious,” noted Mahbubani,concluding that “we have a dangerous cocktail ofproblems staring at us.”

To confront this troublesome mix requires first andforemost the recognition that “it is not business asusual,” as Mahbubani said. “We need a wake-up call.”Second, countries must examine the boundaries ofsovereignty and the need to sacrifice sovereignty for thegreater gain of the international community. Third,

“Problems cross borders withoutpassports but we expect solutions tocross borders with passports.”Kishore Mahbubani, Dean, Lee Kuan Yew School of PublicPolicy, Singapore

Councils focusing on Geopolitics and GlobalGovernance


Corruption

Energy Security

Fragile States

The Future of Governments

Global Governance

The Global Trade Regime

Illicit Trade

The International Legal System

Negotiation and Conflict Resolution

Terrorism, Proliferation and WMDs



Related initiatives recommended by Council Members inthis area include:

• Health professionals must engage others to preparefor pandemics by connecting with diversemultistakeholders and sectors (government, civilsociety, business). Health issues should beconsidered as societal and not exclusively as healthrelated challenges. They are interconnected, requiringa multistakeholder approach and stronger privatesector involvement.

• Preparations against pandemics have been initiated inmost countries but have far to go before they proveadequate. If nations are not prepared when thepandemic starts, its social and economic impacts willlast for several months, even years. This impact canbe mitigated through the scaling up of worldwidepreparedness at a cost that is a fraction of thepotential disruption induced by the pandemic.

• Information on health – the collection, aggregationand analysis of data on health and its determinants –is critical to allow prioritization, benchmarking andaccountability in the field. An international charter onhealth data would help make the information a publicgood accessible to all potential actors in the sector.Enhanced information can challenge vested interests.

• Experience from disease outbreaks such as SARSsuggests that openness about risks will not hinder thefull engagement of all actors in a collaborativepreparedness effort, and will help the identification ofinterconnected risks and opportunities for mitigation.Equity of access to biological and othercountermeasures is also needed.

• Health promotion, disease prevention and disasterpreparedness must be treated as capital investmentsrather than current expenditure, both in formalaccounting terms and in the policy-making process.

• More effective means of strengthening governanceand leadership on chronic disease and malnutritionshould be developed, including investing in chronicdisease prevention and nutrition science, andstrengthening public-private partnerships with clearobjectives.


Health

Health is an essential concern. Massive progress inhealthcare was made in the 20th Century but reversalsincluding looming pandemics and HIV/AIDS appearedlate in the Century. Today’s healthcare challenges arevery complex. The need to reduce maternal and infantmortality and other objectives are listed in the MillenniumDevelopment Goals but different, more recentphenomena including a decline in fertility rates and anincreasingly ageing population place additional burdenson healthcare systems. In addition, mental health andinjuries require greater attention.

Health is also critical to the economy. One-tenth ofeconomic activity is attributed to healthcare; productivityand economic growth are affected by health. Yet the fiveGlobal Agenda Councils concerned with health issuesidentified a key paradox which they translated into an

important message for all: cheap preventive strategiesthat guard against bad health exist – but they areundervalued and underinvested. One example given byRapporteur Christopher Murray, Director of the Institutefor Health Metrics and Evaluation (IHME), University ofWashington, USA, to illustrate this point is the vision of aworld without HIV/AIDS through preventative measuresand campaigns. Despite such efforts, the vision has notbeen achieved. Greater prevention through healthpromotion is necessary and requires betterconsideration and appreciation. Against chronicdiseases, simple, effective solutions are at hand, suchas tobacco control, salt reduction and regular physicalexercise, all of which are manageable prevention tactics.

Along with underappreciated preventive medicine,another key concern the group highlighted are theenormous inefficiencies within the healthcare system. Anew social compact embedded in national constitutionsis needed, one that lists available health interventionsand entitlements that can then be measured andaccounted for. A related element is the critical need forinformation. Such information would answer thequestions, “What’s happening in the field? Are wemaking progress?” Enhanced communication on issuesof health would generate a culture of evidence andaccountability.

The group had three calls to action:• Build capacity foresight by stressing preventivemedicine and measures

• Create a set of entitlements that are actionable andmeasurable

• Build the ingredients of knowledge, an informationbase that informs and educates

“The only way that chronic diseasecan be addressed is through[understanding] connections.”Christopher Murray, Director, Institute for Health Metrics andEvaluation (IHME), University of Washington, USA

Councils focusing on Health

Global Agenda Council on:The Challenges of GerontologyChronic Diseases and MalnutritionHealthcare SystemsHIV/AIDSPandemics

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On the environmental front, several Councils focusedon the need to build up the green economy and toaddress energy security. Economies need to diversifytheir sources of energy to lessen dependence on fossilfuels and improve their energy efficiency to addressthe challenges of climate change and sustainability.Participants emphasized the importance of reaching apost-Kyoto Protocol global deal by 2010.

The discussions of the Global Agenda Councilsfocused on regions inevitably overlapped with thoserelating to global governance. The consensus wasthat global governance structures have to be moreinclusive and that trade integration has to proceed tocounter the threat of protectionism. “There needs tobe greater accountability in the international financialsystem,” said Howard Davies, Director of the LondonSchool of Economics and Political Science, and aformer Chairman of the UK’s Financial ServicesAuthority. “There isn’t anybody clearly in charge.”Major emerging economies should have a strongervoice in the discussions over reform, Daviesconcluded. The incoming US administration will haveto work closely with the G20, Soud Ba’alawy,Executive Chairman of Dubai Group, United ArabEmirates, advised.

But beyond the management of the crisis, emergingregions have to step up on a wide range of globalissues. “Africa needs a more active voice ininternational governance,” said Furlan. The world tooneeds Africa to progress and integrate more with the

global economy. That means diversifying itseconomies and decreasing the continent’sdependency on commodity exports. Similarly, theworld needs for Latin America, with its extensive waterreserves and natural resources, as well as its richbiodiversity, to keep growing strongly. The MiddleEast, meanwhile, has to become an active player inrecasting the international financial architecture.Governments there have to use education to addressthe problem of religious and political extremism andmilitancy.

Another priority of the international community,particularly the United States and Europe, is toaddress a resurgent Russia. “Facilitating Russia’saccession to the WTO will be good for everybody,”Furlan explained. Russia’s membership is currentlystalled, with ongoing negotiations with the US and theEuropean Union the main stumbling block. The EUand the North Atlantic Treaty Organization (NATO)have to find ways to build links or even extendmembership to former republics of the Soviet Unionwithout antagonizing Moscow. The recent Russia-Georgia conflict has only complicated the situation.

Councils focusing on Asia discussed the prospects ofChina and India sustaining their high growth andthereby contributing to maintaining stability in theglobal economy. There was concern that the flaggingmomentum for economic reform in Japan would notlikely revive soon because of recession.


Regions

In Dubai, Global Agenda Councils focused on theeconomic, political and social conditions in severalcountries and regions including Australia, Africa,China, Latin America, Korea, Japan, the Middle Eastand Russia. The discussions covered more than 100nations. While each area has its own priorities, thereare many shared concerns. Foremost among them:the impact of the unfolding financial crisis. “Fear isdominating the international arena,” said RapporteurLuiz Fernando Furlan, Chairman of the Board of GALFEmpreendimentos, Brazil. “Trust needs to berestored.”

That urgent call would certainly apply not just to theinternational financial system but to geopoliticalrelationships as well. Since the crisis, many countriesand groups such as the G20 that met in WashingtonDC just days after the Dubai Summit haveunderscored the critical need to resist protectionismand conclude the Doha Round of global tradenegotiations under the World Trade Organization(WTO). But accomplishing those two goals will requirethe subordination of intense national interests at atime of great economic stress in favour of the greaterregional and global good. “What we need now is anentirely new global cooperation system,” said KlausSchwab, Founder and Executive Chairman of theWorld Economic Forum.

The agenda for collaboration is long. The economicpriorities include rebuilding confidence in markets,stabilizing and strengthening the international financialsystem through the recapitalization of financialinstitutions, accelerating poverty-reduction initiativesthat are now even more critical, and increasing therepresentation of emerging economies in theinternational bodies that will reconstruct theinternational financial architecture. “Emerging marketsneed to be more active, better represented and anintegral part of international financial integration,”Furlan reckoned.

“Emerging markets need to be moreactive, better represented and anintegral part of international financialintegration.”Luiz Fernando Furlan, Chairman of the Board, GALFEmpreendimentos, Brazil


Finally, participants in many Councils and in the cross-Council exchanges stressed that leadership is crucial.The election of the youthful Barack Obama to lead theUnited States is clearly a source of inspiration andhope across the world. But to address the multiplicityof global challenges and to reconfigure globalgovernance for the 21st Century will require manymore Obamas with the same “Yes, we can” message– or the emergence of some kind of global championor visionary for a new system who can rally theinternational community together.

Councils focusing on Regions


The Future of Africa

The Future of Australia

The Future of China

The Future of Japan

The Future of Korea

The Future of Latin America

The Future of the Middle East

The Future of Russia

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Many ways to promote positive change and bringpeople together exist. Leadership plays a key role inpromoting inclusion and human development. It isimportant for society to define what policies, cultureand forms of leadership are needed to foster humanpotential. Michael Roux, Chairman of RouxInternational, Australia, highlighted that leaders areresponsible for providing hope and vision for societyas a whole, while Josette Sheeran, Executive Directorof the United Nations World Food Programme (WFP),highlighted the need for a new paradigm of leadershipwhich is respectful and inclusive. The role of the mediais crucial in today’s globalized world. Journalism at itsbest builds bridges and connects humanity: “It tells uswho we are and what we mean to each other,”DeGioia commented. One idea submitted during theSummit was a new form of independent journalism,creating a not-for-profit, global media network. Sportcan equally be a powerful tool in society, impactingnot only health but also the development of values,and its power to affect positive change needs to bebetter utilized.

The Councils focusing on society and values agreedthat now is “… a time of great peril and a time of greatpromise”, as described by Donald Tapscott, Chairmanof nGenera Insight, Canada. In the face of thesechallenges and resources, all societies and leadersmust ensure that human potential and promise isrealized at the highest possible level.

Key recommendations from Council Members in thisarea include:

• Youth represent untapped potential, and need to beperceived as problem-solvers, rather than theproblem. Holistic approaches to empower youngpeople need to be taken to address the multipledimensions across cultures and regions.

• Children and families are at the heart of the globalagenda, and issues of child welfare need to beprioritized. There is a clear economic imperative toinvest in children, and a variety of stakeholders mustbe involved to improve education, healthcare andchild protection.

• Human equality and respect must remain a priorityin this time of crisis, as exclusion, indifference anddiscrimination limit access to the talent pool toaddress pressing social and economic problems.Education and leadership are key in promotingequality and respect – ethical education by fosteringthe concept of the equality of human beings, andinclusive leadership through giving voice topreviously excluded and marginalized groups.

• Faith is a common thread across key contemporarychallenges, including the issues of trust and integritywithin the financial crisis, the relationship of religionwith globalization, and faith-based approaches toconflict resolution. While religious differences cancontribute to tensions and even violence betweenand within communities, faith can also be part ofthe solution, with religious communities mobilizingaround core values such as human dignity, solidarityand social responsibility.

• The media sector has been hit particularly hard bythe information technology and communicationsrevolution, fundamentally questioning the role andvalue of the industry in its current form. Despite this,journalism as a tool for education, stimulation andinformation remains vital to the process ofdevelopment. There needs to be a renewed andinnovative model of media, with a global,independent news and information service, utilisingnew forms of technology to inform, educate andimprove the state of the world.

• Sport is a key driver for economic growth, and canpromote social cohesion and community building,with a particular impact on youth. It is important tolearn to harness the potential of sport in society, atthe individual, societal and corporate levels.


Society and Values

In the face of the current financial crisis, the globalcommunity is facing unprecedented challenges andunparalleled opportunities. The seven Global AgendaCouncils within the theme of Society and Valueshighlighted the positive aspects of our contemporaryworld, including significant reductions in poverty,increasing workplace diversity and the growing inter-connectedness of our lives. However, the Councilsalso warned of the pressing challenges currentlyfacing humanity. In order to successfully respond tothese challenges, it is imperative to develop thehuman potential of all people, regardless of race,ethnicity, religion, gender or geographical location.

There are significant blocks to promoting such humandevelopment. Pervasive and continued discriminationprevents many human beings – particularly women –from reaching their potential. Poverty also limits thehuman development of millions, and these mostvulnerable groups need to be protected now morethan ever; during financial crises, it is the mostvulnerable who are disproportionately impacted. Thesevulnerable groups are the world’s most valuableresource, and to move forward we need to be able totap into the creativity and talent of all peoples.

Extraordinary talent exists in the world, seen in thepotential of the 1.2 billion youth who are poised toenter the global labour market in the next decade, andthe children reaching adulthood around the globe. Toempower these young people, it is crucial to create aculture of inclusion, recognizing the importance ofeducation at all levels, and promoting the talents andcapacities needed in all areas of society. “Educationmust address the task of forging one’s values,”stressed Rapporteur John J. DeGioia, President ofGeorgetown University, USA, “It is important toacknowledge and articulate the deepest values thatwe share.” The world’s religious traditions arerepositories of these values and, in the current climate,are increasingly important and meaningful resources topromote dialogue and understanding.

“We all share a moral imperative todevelop the promise and potential ofevery human being.”John J. DeGioia, President, Georgetown University, USA

Councils focusing on Society and Values


Diversity

Empowering Youth

Faith

The Future of Media

Human Equality and Respect

The Role of Sports in Society

The Welfare of Children


• The expansion of ubiquitous global networks such asthe Internet

• Convergence of the Internet with mobilecommunications

• Creative destruction of business models due to theexpanding global networks

• Growing recognition that the current intellectualproperty rights (IPR) regime can be an impediment totechnological progress and innovation

The chief result of this carnage in the market is theclear emergence of the empowered consumer as themain driver of growth. What the consumer wants is theparamount factor in determining whether a businessmodel fails or prevails. With the velocity of change sofast and necessarily so, current IPR protection andtraditional practices for setting standards are obstaclesto innovation because they discourage collaborationand multistakeholder cooperation on a global scale.Also in the way are educational institutions that stillfocus on silos, not open platforms, and do notencourage multidisciplinary thinking and approaches.When it comes to our powers of analysis, “we knowmore and more about less and less,” remarkedRajendra S. Pawar, Chairman, NIIT Group, India. “Thelong-term solution is to do a fundamental reboot ofeducation.”

Changing the way we learn and think will doubtlesshave an impact on our ability to create newtechnologies and boost innovation. That may be thebiggest challenge. There are others. Cyber crime, forexample, is a growing problem that could undermineconfidence in online communications and commerce.Censorship and linguistic barriers could fragmentnetworks, creating a drag on efficiency. And thecontinuing influence of vested interests who wish to

preserve their privileged gatekeeper status andbusiness models are typically not tuned in to consumerdemand.

Another major hindrance to the blossoming ofinnovation and technology is simply the lack ofimagination. Nanotechnology has been touted for yearsby its proponents as the “next really big thing”, withbroad applications from energy security to healthcare,from microelectronics and computing to the provision ofwater to water-stressed regions. But the vast potentialof nanoscale science has yet to capture the interest ofinvestors, policy-makers and industry. Especially in hardeconomic times, capital is still king. And to drivetechnology and innovation requires funding. There is arevolution under way; it would be a pity if the crisis andcautious mindsets slowed it down. As one participantput it, “we are stuck on everything but it is time to letgo of the old ways.”


Technology and Innovation

In times of deepening economic stress, technology andinnovation can be potent sources of growth so long asthe investment and talent are there to drive them. “Theforces fuelling technology and innovation are still verystrong,” Rapporteur Paul Twomey, President and ChiefExecutive Officer, Internet Corporation for AssignedNames and Numbers (ICANN), USA, told participants inhis summary of the discussions on this theme in therelated Global Agenda Councils. “Innovation, creativityand technology are enablers of economicadvancement. Innovation in technology and humancapital is an antidote to economic downturn.”

To be sure, the financial crisis will force the restructuringof economies and the reallocation of competitiveadvantages. To survive, for example, the flagging USauto industry will have to undergo major consolidationto address high costs, embrace new technology toachieve greater fuel efficiency in their vehicles, andinvest in the development of a new generation ofproducts that run on clean energy. “The economicdownturn means that we have to rethink our priorities,”reckoned Twomey.

Undeniably, the crisis will be a cruel game-changingfactor that further complicates a business landscapethat has been shifting quickly in sometimesunfathomable ways due to emerging technologies suchas the Internet and mobile telephony and innovationssuch as social-networking websites. There will bewinners and losers. The question is whether thewinners will be those that play it safe and hibernate forthe winter – or will they be those that react to the crisisby further embracing technology and innovation to findways to become more productive and competitive. Asmembers of the Global Agenda Council on the Futureof Entertainment agreed, the crisis will push productioncosts down, while the proliferation of new technologiesand distribution channels – movies downloaded to themobile phone, for example – will lead to greaterefficiency in the industry and creative destruction in themarket.

In his summation of the deliberations of the GlobalAgenda Councils relating to Technology and Innovation,Twomey identified four common themes:

Councils focusing on Technology andInnovation


The Challenges of Nanotechnology

The Future of Entertainment

The Future of the Internet

The Future of Mobile Communications

The Geography of Innovation

Strategic Foresight

Technology and Education

“The forces fuelling technology andinnovation are still very strong.Innovation, creativity and technologyare enablers of economicadvancement. Innovation intechnology and human capital is anantidote to economic downturn.”

Paul Twomey, President and Chief Executive Officer, Internet

Corporation for Assigned Names and Numbers (ICANN), USA


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Acknowledgements

In partnership with the Government of Dubai, the World Economic Forum held the Summit on the Global Agendafrom 7 to 9 November in Dubai.

The official Partner for the Summit is Emirates.

Under the chairmanship of HH Sheikh Ahmed bin Saeed Al-Maktoum, Emirates has earned a reputation for beingindustry-leading in its approach to business as well as for its products and services. The more than 400international awards that Emirates has received across its operations stand testimony to the company culture ofinnovation and excellence.

Emirates Airline, the flagship brand of the group, has grown since its formation in 1985 to become one of the top20 largest international airlines, and among the top five most profitable. It currently operates an all wide-bodiedfleet of 122 modern jets to over 100 cities on six continents. Receiving delivery of one new aircraft each monthon average, Emirates’ fleet is among the youngest and most efficient in the skies.

The airline in 2008 launched non-stop services linking Dubai to Cape Town, Guangzhou, Kozhikode and LosAngeles. San Francisco will come online on 15 December, and the airline is set to continue strengthening its routenetwork as it receives delivery of the 174 aircraft it has on order including 56 more Airbus A380s. Emirates’ totalorder book for new aircraft is worth US$ 58 billion.

Owned by the Government of Dubai, Emirates is financially independent and receives no subsidy or protection.The company has thrived under Dubai’s competitive Open Skies policy, posting double-digit growth annually.

Emirates’ success is intrinsically linked to Dubai’s own development and drive to become a 21st century globalhub for business and leisure. The airline promotes trade and tourism by providing Dubai with air links to othercities around the globe, and the city’s growth in turn fuels demand for Emirates’ products and services.

Emirates has a strong base in modern technology throughout its operations. In addition to its young fleet, thecompany maintains world-class facilities in cargo, training and IT, and often sells its services to other airlines.Despite its considerable investment in technology, Emirates believes that the key to its success is its people.

The Emirates Group owns and operates a wide array of transport and leisure services including passenger(Emirates Airline) and cargo (Emirates SkyCargo, Dnata Cargo) air transport, IT and airport logistics (Mercator,Dnata Airport Operations, Dnata International, Emirates Transguard), training (Emirates Aviation College, Emirates-CAE Flight Training), tourism and hospitality (Emirates Holidays, Arabian Adventures, Emirates Hotels & Resorts,Congress Solutions International, and Dnata Travel Services). In all, there are more than 40 brands, employingover 35,000 people.

In the 2007/08 financial year, the Emirates Group announced record net profits of Dhs 5.3 billion (US$ 1.45billion), with group revenue leaping 31.8%, to Dhs 41.2 billion (US$ 11.2 billion).

For more information: www.ekgroup.com / www.emirates.com

This publication is also available in electronic form on the World Economic Forum’s website at thefollowing address:

Summit on the Global Agenda Web report:www.weforum.org/pdf/summitreports/globalagenda (HTML)

The electronic version of this report allows access to a richer level of content from the meeting,including photographs and Council reports.

The report is also available as a PDF:www.weforum.org/pdf/summitreports/globalagenda.pdf

Other specific information on the Summit on the Global Agenda in Dubai on 7-9 November 2008,can be found at the following links:

www.weforum.org/globalagendawww.weforum.org/globalagenda/reportswww.weforum.org/globalagenda/webcasts


Contributors

Martina Gmür is Director, Head of Global Agenda Council Development, at the World EconomicForum.

Fabienne Stassen, Head of Knowledge Capture at the World Economic Forum, worked with AlejandroReyes, Zarine Rocha and Sandra Vetter Sloan to produce this report.

Editing: Fabienne Stassen

Design and Layout: Kamal Kimaoui, Associate Principal, Production and Design

Photographs: Sandeep Naik, Norbert Schiller, Dana Smilie

The World Economic Forum is an independentinternational organization committed to improvingthe state of the world by engaging leaders inpartnerships to shape global, regional andindustry agendas.

Incorporated as a foundation in 1971, and basedin Geneva, Switzerland, the World EconomicForum is impartial and not-for-profit; it is tied tono political, partisan or national interests.(www.weforum.org)