wef am14 public report

8/12/2019 WEF AM14 Public Report

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Global Agenda

World Economic ForumAnnual Meeting 2014The Reshaping of the World:Consequences for Society,Politics and Business

Davos-Klosters, Switzerland 22-25 January


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Contents

3 Preface

4 Messages at the Annual Meeting

5 Davos Highlights

8 Achieving Inclusive Growth

16 Embracing Disruptive Innovation

24 Meeting Societys New Expectations

32 Sustaining a World of 9 Billion

40 Arts & Culture in Davos

42 CEO Series

44 Reports and Initiatives

47 Acknowledgements

49 Upcoming Events

Co-Chairs

Aliko DangotePresident and Chief Executive OfficerDangote GroupNigeria

Kris GopalakrishnanPresidentConfederation of Indian Industry (CII),Vice-Chairman

InfosysIndia

Jiang JianqingChairman of the BoardIndustrial and Commercial Bank ofChinaPeoples Republic of China

Joseph Jimenez

Chief Executive OfficerNovartisSwitzerland

Christophe de MargerieChairman and Chief Executive OfficerTotalFrance

Marissa MayerChief Executive OfficerYahooUSA

Judith RodinPresidentRockefeller FoundationUSA


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Preface

The World Economic Forum Annual Meetingis an unparalleled platform for world leadersto shape the global agenda at the start ofthe year. As such, the Meeting remains the

foremost place to develop and to shapeglobal, regional and industry agendas basedon the principle that todays challenges canbest be tackled through a multistakeholder,future-oriented approach.

Meeting under the theme The Reshaping ofthe World: Consequences for Society, Politics

and Business, more than 2,500 business,government and civil society leaders from over100 countries took part in the 44th Annual

Meeting in Davos-Klosters, Switzerland, tonavigate the complexity and interconnectivityof our changing world a world in whichprofound political, economic, social and,above all, technological forces are reshapingour lives, communities and institutions.

This years programme, which consistedof more than 250 official sessions, wasorganized under four thematic pillars:Achieving Inclusive Growth; EmbracingDisruptive Innovation; Meeting SocietysNew Expectations; and Sustaining a Worldof 9 Billion. Discussions on these issueschallenged long-held assumptions aboutsociety, politics and business in an effort togenerate the powerful ideas and collaborativespirit needed to manage the future course ofworld affairs.

We are grateful to our Members, Partners and

communities for their collaboration in buildingthe programme, as well as their supportthroughout the year. The Network of GlobalAgenda Councils, with over 1,000 thoughtleaders from around the world, continues toplay a significant role in this regard. We arealso grateful to the Meeting Co-Chairs for theirguidance and leadership.

On behalf of the Managing Board, thankyou again for your participation and support,

which no doubt will have an impact beyondDavos.

Preface

W. Lee HowellManaging Director, Member of the Managing Board

Klaus SchwabFounder and Executive Chairman

3The Reshaping of the World: Consequences for Society, Politics and Business


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4 World Economic Forum Annual Meeting 2014

Messages at the Annual Meeting

Messages at the Annual Meeting

Dilma Rousseff

President of Brazil

Dilma Rousseff, the President of Brazil, said Brazil is eager and ready to welcome

investment from all over the world, as the country continues to bring millions out of poverty

and into the middle class. Brazil needs and wants a partnership with private investment,Rousseff said. We have always welcomed foreign investment and taken measures to further

improve the environment for it.

Enrique Pea Nieto

President of Mexico; Young

Global Leader Alumnus

Mexico is poised for a significant transformation, thanks to a host of constitutional reforms

passed in 2013, said President Enrique Pea Nieto. Democracy has given us the necessary

tool to move, Pea Nieto said. He was alluding to the Pact for Mexico, an agreement

between the three leading political parties to approve a wide-ranging package of reforms to

labour laws, education and strategic economic sectors, such as oil and gas.

Park Geun-hyePresident of the Republic of Korea

Ellen Johnson-Sirleaf

President of the Republic of Liberia

To drive sustainable growth and improve economic resilience, countries must focus on

promoting creativity and innovation, on finding ways to expand job opportunities for young

people and promoting inclusion, two presidents told participants in a plenary session on

Reshaping the World through Entrepreneurship, Education and Employment. The future

will be defined by a creative divide, Park Geun-hye, the President of the Republic of

Korea, warned. Creativity does not degrade the environment; it unlocks opportunities for

sustainable growth. It is inherent to all people and therefore holds promise for inclusive

growth. Said Ellen Johnson-Sirleaf, President of the Republic of Liberia, in her remarks:

One has to build resilience when there is fragility in the economy. That resilience does not

come from growth alone. A key element is capacity.

Tony Abbott

Prime Minister of Australia;

2014 Chair of G20

Prime Minister of Australia, and Chair of the G20 Tony Abbott told participants that

the G20 will focus on boosting global trade and tackling protectionism, strengthening

tax systems to ensure fairness, finding ways to increase infrastructure investment,

and refining financial regulations. Trade comes first, Abbott said. Every time one

person freely trades with another, wealth increases. At the very least, the G20 shouldrenew its resolve to undo any protectionist measures put in place since the crisis.

Shinzo Abe

Prime Minister of Japan

Japan is about to break free from chronic deflation and is getting back on track on fiscal

consolidation, Shinzo Abe, Prime Minister of Japan, told participants. The worlds third-

largest economy has engineered a dramatic turnaround from negative GDP growth in 2012

to positive expansion in the first three quarters of 2013. It is not twilight but a new dawn

that is breaking over Japan, Abe declared. I am willing to act like a drill bit strong enough

to break vested interests. Over the next two years, no vested interests will remain immunefrom my drill.


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Davos

Highlights

From

geosecurity

to arts &

culture

its efforts on forceful diplomacy,which recently resulted in an agreementto remove all chemical weaponsfrom Syria. Kerry also pledged afull-fledged effort to make peacebetween the Israelis and Palestinians.He emphasized that the end gameis clear and should involve securePalestinian and Israeli states.

Israeli Prime Minister BenjaminNetanyahu also reasserted his beliefin the need for advancing negotiationsfor peace in the region. Im readyfor peace. Im ready for a real,secure genuine peace. However,advancement of peace must be built on

two foundations of mutual recognitionand strong security arrangements,he said. Against a backdrop of thehumanitarian catastrophe in Syria andongoing transformations in MiddleEast politics, Netanyahu focused onIsraels strong economy. He arguedthat advancing economic peace isan important complement to politicalpeace and that Israelis, Palestiniansand Arab neighbours would benefitfrom economic growth in Israel.

On the sidelines of the Annual Meeting,Israeli and Palestinian business leaderscontinued their dialogue since thelaunch of the Breaking the Impasseinitiative at the World EconomicForum on the Middle East in Jordanin May 2013 to urge their respectivegovernments to reach a peaceagreement.

Middle East:

a message of

peace and hope

From Syria to the Arab-Israeli conflict,the problems plaguing the Middle Eastoften appear intractable. However, themood coming from the Annual Meeting2014 was one of hope and optimism.

Making the first speech by an Iranianpresident at the Annual Meeting since

2004, President Hassan Rouhanidelivered a message of friendship,engagement, cooperation and peacefulcoexistence. He stressed that he isdetermined to lay the groundworkfor his country to become one ofthe worlds top 10 economies incoming years, and intends to developpeaceful and normalized relationshipswith Irans immediate neighboursand internationally. We want to seea better future and peace with all. I

want to integrate Iran as an activeand peaceful player in the globalcommunity, he said.

John F. Kerry, US Secretary of State,hailed recent diplomatic breakthroughswith Iran, which, if consolidated, wouldmean a safer region and world. Comingdirectly from peace talks on Syria inGeneva and Montreux, Kerry decriedthe human tragedy unfolding in thecountry and said that the US will focus

Davos Highlights



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Crystal Awardwinners 2014

Continuous professionalleadership development

Three cultural leaders were presented with the ForumsCrystal Award, honouring artists who have used their workto improve the state of the world. Oscar-winning actor MattDamonwas recognized for his commitment to social andenvironmental issues, particularly water issues throughWater.org, which he co-founded. Internationally acclaimedtenor Juan Diego Flrezwas honoured for establishingSinfona por el Per, a foundation that provides Peruvianyouth with a musical education as part of their personaldevelopment. Iranian-born visual artist Shirin Neshatreceived the award for her artwork, which focuses on issuesof gender, culture and identity. Her work is included in thecollections of museums and public institutions aroundthe globe.

http://wef.ch/crystalawards14

At the Annual Meeting the World Economic Forum launchedan online learning platform, Forum Academy, to offercourses for professionals and organizations to enhance theirstrategic knowledge in a fast-changing world. Launchedin partnership with edX, Forum Academy is a non-profitinitiative to provide continuous and certified professionalleadership development. It will engage a network ofbusiness, academic, political and other leaders of societyto deliver a Davos-level curriculum on global, sectorial andregional topics.

As rapid technological, economic and social changesaffect the context of professional work, individuals andinstitutions need insights into the latest developments andbest practices on relevant topics. Forum Academy helps toaddress this need by leveraging Forums multistakeholdernetwork of the best and most relevant knowledge providers.Sign-up is now open for the first Forum Academy course onGlobal Technology Leadership starting in May 2014.

http://forumacademy.weforum.org



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Walking in the shoesof a refugee

Can you imagine what it is like to be a refugee? Duringthe Annual Meeting, participants took part in two powerfulsimulations to experience Syrian refugees daily strugglefor survival. The first, hosted by the Crossroads Foundationand designed by refugees, internally displaced persons and

NGOs, created a realistic scenario to encounter first-handsome of the struggles faced by refugees and internallydisplaced persons. Refugees and field workers were onhand to answer questions. The second, Project Syria,offered a four-minute immersive experience using virtualreality gaming technology to highlight the plight of childrenin Syria. The two-part experience replicated a busy streetcorner in Aleppo at the time of a rocket attack and then arefugee camp. What the user sees is based on the real storyof how an increasing number of Syrians are fleeing theirhomeland in search of safety. The objective of these twoexperiences was to move Davos participants towards action

and response to the humanitarian crisis in Syria, in whichnearly a third of the population has been displaced.

To see the official public session, The Humanitarian Crisis inSyria, visit:

http://wef.ch/hcs14

Davos steps tobetter health

With over 25 sessions during the Annual Meeting fromredesigning health systems and medical breakthroughs,to mental illness and meditation health featured high inthe programme this year. Discussions highlighted healthsimpact on businesses and how it can serve as an engine

for economic growth and prosperity. An inaugural HealthSummit brought together heads of government, chiefexecutives and others to sharpen the awareness for healthas a cross-sector challenge in societies. There was also astrong focus on the individual, with participants invited totake the Davos Health Challenge. During the week, manyrecorded their movements by wearing a wristband tracker tohelp understand their physical activity and energy levels. Theresults: 850 participants walked a daily average of 6,748steps. If everyone at Davos took part in the challenge, theywould have walked 310,000-plus kilometres the equivalentof walking the perimeter of Switzerland 167 times.

To see the official public session, Health is Wealth, visit:

http://wef.ch/healthwealth

Davos Highlights



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People always underestimate

what Africa can be. By 2050,

we will have a united Africa with

one common market.

The pervasive challenge of inequality

Achieving

InclusiveGrowth

At the 44th World Economic ForumAnnual Meeting, how to achieveinclusive growth was front and centrefrom the start. In the opening session,Peter Kodwo Appiah Cardinal Turksonof Ghana, President, Pontifical Councilfor Justice and Peace, Vatican CityState, read a special message by PopeFrancis to participants. I ask you toensure that humanity is served bywealth, not ruled by it, the leader of

the Roman Catholic Church said.Yet even before business, governmentand civil society leaders arrived atDavos-Klosters, the problem ofinequality was at the top of theirconcerns. A survey of more than1,500 experts from the WorldEconomic Forums Network ofGlobal Agenda Councils and YoungGlobal Leaders and Global Shaperscommunities, which was publishedin the Outlook on the GlobalAgenda 2014report, identified thewidening income gap and structuralunemployment as among the threemain worries for world leaders this year.

Inequality has become a pervasiveglobal problem evident in developingand developed economies. On theeve of the Annual Meeting, OxfamInternational released a briefing paper,which reported that nearly half ofglobal wealth is owned by just 1% ofthe population and that the richest 85people own the same as the bottom3.5 billion, half the individuals in theworld.

In considering strategies for inclusivegrowth, participants acknowledgedthat there were no quick fixes even for such pressing problems ofexclusion as youth unemployment. Butthere was general acceptance that withthe US recovering, Europe starting torebound and Japan apparently pullingitself out of deflation and stagnation,the sense of crisis is receding, givingeconomies more breathing space totackle some thorny long-term concerns

that hamper inclusion.

The question is whether the rightreforms are put in place and thereis sufficient collaboration amongcountries to address such challengesas the environment, the threat ofanother financial crisis, and the needfor food, energy and water security.This is a policy-sensitive year, saidMin Zhu, Deputy Managing Director,International Monetary Fund (IMF),Washington DC; World EconomicForum Foundation Board Member, inthe Getting Back to Natural Growthsession. Restructuring and adjustmentare essential.

It is not sufficient for economies just togrow; the growth has to be inclusive,addressing disparities in income, age,gender, skills, access to technology,and opportunity. Africas economic

growth may be accelerating, but theconcentration of wealth and power isexcluding and locking out millions ofpeople, which is driving insecurity andinstability, Winnie Byanyima, ExecutiveDirector, Oxfam International, UnitedKingdom, said during the session onAfricas Next Billion. So far, economicgrowth has been a race to the bottom,she reckoned. We need a race tothe top so we have policies andregulation to protect human rights, the

environment and reduce poverty.

Inequality has become a global challengethat requires a wide range of policy actions at the national, regional and global levels.But to address this problem effectively willrequire time, international coordination andpatience.

Aliko Dangote, President andChief Executive Officer, Dangote

Group, Nigeria; Co-Chair of theWorld Economic Forum AnnualMeeting 2014



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In the discussions on how to achieveinclusive growth, three long-termgoals emerged as priorities: creatingjobs, particularly for young people,promoting sustainability, and boostingeconomic resilience and controlling therisks that may lead to another majorfinancial crisis. Participants agreed ona range of action points, all of whichwould require time to reap results.

Consider the need to address theglobal deficit in infrastructure. Theconsulting company McKinsey &Company estimates that US$ 57trillion will be required for infrastructureprojects around the world from 2013to 2030 36% more than the US$18 trillion actually spent globally oninfrastructure over the past 18 years.

With interest rates low, company cashstockpiles high, economies reboundingand unemployment rates in many partsof the world still in double digits, now isthe time to move on building, rebuildingand repairing facilities such as ports,airports, bridges and transportsystems, said Lawrence H. Summers,Charles W. Eliot University Professor,Harvard University, USA, in The Futureof Monetary Policy session. This willcreate jobs and drive inclusive growth.

It is tragic that we are bequeathingto our children a deficit in the formof massive deferred maintenance,Summers observed.

01:Africas Next Billion02:David Cameron, PrimeMinister of the UnitedKingdom; and Bono, LeadSinger, U2; Co-Founder,(RED); Co-Founder, ONE,Ireland03:Joseph E. Stiglitz,

Professor, School ofInternational and Public

Affairs (SIPA), ColumbiaUniversity, USA

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The euro will remain a reliable

and important currency and no

one wants to change that.


Wolfgang Schuble, FederalMinister of Finance of Germany

Promoting small and medium-sizedenterprises, particularly through easingtheir access to financing, is anotherstrategy for inclusive growth. SMEsare prime job creators, especially foryoung people and women. Investingin education, especially for girls andwomen, and in innovation are alsoimportant steps to take. In a sessionon Entrepreneurship, Educationand Employment, Park Guen-hye,President of the Republic of Korea,said: Creativity does not degrade theenvironment; it unlocks opportunitiesfor sustainable growth. It is inherent toall people and therefore holds promisefor inclusive growth.

The inclusive dividends of creativityand innovation will be limited withoutincreased investment in educationand R&D, especially in economieswhere post-crisis austerity measurescut budgets. But in several sessions,participants warned that private-sector companies continue to sit onstockpiles of cash, concerned aboutuncertainties in regulations in areasranging from financial sector reforms toclimate change.

What investors really need is greaterconfidence that governments wontchange the rules after the investmenthas been made, Tony Abbott, PrimeMinister of Australia, said in theAustralias Vision for the G20 session.Unlocking private-sector investmentwill be crucial to fuelling inclusivegrowth. It is ultimately the extent towhich the private sector is catalysedand engaged that determines whethergrowth trajectories are efficient andsustainable, wrote the authors of NewGrowth Models, a report released bythe World Economic Forum at theAnnual Meeting. Structural changesdue to innovation and productivitygains take time to have an impact,

several participants warned.

In his address to participants settingout Australias priorities for its G20presidency this year, Abbott outlinedadditional pillars of a global strategyfor inclusive growth boosting globaltrade and tackling protectionism,strengthening tax systems to ensurefairness, and finalizing internationalpost-crisis efforts to strengthen andsharpen financial regulation.

01:Laurence Fink,Chairman and ChiefExecutive Officer,BlackRock, USA; andMario Draghi, President,European Central Bank,Frankfurt

02:Carlos Ghosn,Chairman and ChiefExecutive Officer,Renault-Nissan Alliance,France; World EconomicForum Foundation BoardMember

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To ensure sustainable health

systems, we need to help

communities build capabilities.

Joseph Jimenez, Chief ExecutiveOfficer, Novartis, Switzerland;Co-Chair of the World EconomicForum Annual Meeting 2014

01:Christine Lagarde,Managing Director,International MonetaryFund (IMF), WashingtonDC; World EconomicForum Foundation BoardMember02:Ali Babacan, DeputyPrime Minister forEconomic and Financial

Affairs of Turkey; andPierre Moscovici, Ministerof Economy and Financeof France03:Global FinancialOutlook

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Ten Global Risks of Highest Concern in 2014

Source: Global Risks Perception Survey 2013-2014.

No. Global Risk

1 Fiscal crises in key economies

2 Structurally high unemployment/underemployment

3 Water crises

4 Severe income disparity

5 Failure of climate change mitigation and adaptation

6Greater incidence of extreme weather events(e.g. floods, storms, fires)

7 Global governance failure

8 Food crises

9 Failure of a major financial mechanism/institution

10 Profound political and social instability

Making markets safer for consumersand bank customers is essential. Buta lot of work remains to be done,including setting out a process windingdown banks and ending the too-big-to-fail problem. I worry aboutmacroprudential complacency,Summers remarked. A much greateremphasis needs to be placed on

making a system that is safe fromignorance and error. That meansemphasis on capital requirements,liquidity and strengthening therobustness of the system.

Deeper international collaborationis necessary for the success of anycoordinated efforts to drive inclusivegrowth. But with the global economicrecovery strengthening, cooperationwill be harder to achieve, especially aseach country pursues its own strategy.There are other challenges. Nationalpolitics could provide some turbulence,what with general elections this yearin several major economies includingTurkey, South Africa, India, Indonesiaand Brazil. Social instability is aconcern, especially in countries whereyouth unemployment is high and thereis little patience to wait for long-termrestructuring policies to play out.

There are worries, especially inemerging economies, about the impactof the unwinding of quantitative easingand other exceptionally supportivemonetary policy actions in the USand elsewhere. Alexandre Tombini,Governor of the Central Bank of Brazil,expressed concerns about volatilityin capital markets and currencies

due to the lack of coordination inthe tapering. New risks include howtapering takes place, at which speed,how it is communicated and whatspillover effects it has, explainedChristine Lagarde, Managing Director,International Monetary Fund (IMF),Washington DC; World EconomicForum Foundation Board Member, inthe Global Economic Outlook 2014session.

Finally, how technology gets used willbe a challenge. Innovations can lead tojob losses through productivity gains.But the savings can also be used tofuel inclusion through investments thatgenerate jobs and communicationssystems that link people together andbridge digital divides.

01:Gerard Baker,Editor-in-Chief, The WallStreet Journal, DowJones & Company, USA;and Jacob J. Lew, USSecretary of the Treasury02:Harry Hohmeister,Chief Executive Officer,Swiss International AirLines, Switzerland; and

Boris Collardi, ChiefExecutive Officer, BankJulius Baer, Switzerland03:Goldie Hawn, Actress,Producer, Author andFounder, The HawnFoundation, USA04:Angel Gurra,Secretary-General,Organisation forEconomic Co-operationand Development (OECD),Paris; World EconomicForum Foundation BoardMember; Global AgendaCouncil on Water Security

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01:John T. Chambers,Chairman and ChiefExecutive Officer, Cisco,USA; and Marissa Mayer,Chief Executive Officer,

Yahoo, USA; Co-Chairof the World EconomicForum Annual Meeting2014; Young GlobalLeader

02:Ban Ki-moon,Secretary-General, UnitedNations, New York03: Daniel Yergin, Vice-Chairman, IHS, USA04:Rouba Mhaissen,Founder and Director,Sawa for Developmentand Aid, Lebanon; and

Ahmet Davutoglu, Ministerof Foreign Affairs of Turkey05:Paul Kagame,President of Rwanda06:Pham Binh Minh,Deputy Prime Minister andMinister of Foreign Affairsof Vietnam07:Mari Elka Pangestu,Minister of Tourism andCreative Economy ofIndonesia; Global AgendaCouncil on New Modelsof Travel & Tourism; andDavid Adjaye, Architect,

Adjaye/Associates, UnitedKingdom

New regulations are being

launched, but there are different

rules across countries. The

finance industry has to face this

challenge.

Jiang Jianqing, Chairman of theBoard, Industrial andCommercial Bank of China,Peoples Republic of China;Co-Chair of the World EconomicForum Annual Meeting 2014

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01:The Reshapingof Japan: GlobalConsequences02:Felipe LarranBascunan, Minister ofFinance of Chile03:Lubna S. Olayan,Deputy Chairperson andChief Executive Officer,Olayan FinancingCompany, Saudi Arabia;and Gler Sabanci,Chairman and Managing 01

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Director, Haci merSabanci Holding AS,

Turkey04:Soe Thane, UnionMinister, Office of thePresident of Myanmar05:Philipp M. Hildebrand,

Vice-Chairman,BlackRock, UnitedKingdom06:Open Forum Faith andGender Equality

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01:Robert Greenhill, Managing Director, Chief Business Officer and Member of the Managing Board, World Economic Forum; Maria Fanjul, Chief Executive Officer, entradas.com, Spain; Global Shaper; Global Agenda Council on Europe; Muhtar A. Kent, Chairman of the Board and Chief Executive Officer, The Coca-Cola Company, USA; Khalid A. AlFalih, President and Chief Executive Officer, Saudi Aramco, Saudi Arabia; Klaus Kleinfeld, Chairman and Chief Executive Officer, Alcoa, USA; Chair of the Governors for Mining &

Metals 2014; World Economic Forum USA Foundation Board Member; and Guy Ryder, Director General, International Labour Organization (ILO), Geneva

For more about Achieving

Inclusive Growth:Africas Next Billion

http://wef.ch/52642

Australias Vision for the G20

http://wef.ch/53377

The Post-2015 Goals: Inspiring aNew Generation to Act

http://wef.ch/53875

Global Economic Outlook 2014

http://wef.ch/52371

Reshaping the World through

Entrepreneurship, Education and

Employment

http://wef.ch/52975

The Future of Monetary Policyhttp://wef.ch/52640

07:Klaus Kleinfeld,Chairman and ChiefExecutive Officer, Alcoa,USA; Chair of theGovernors for Mining& Metals 2014; WorldEconomic Forum USAFoundation BoardMember; and GuyRyder, Director-General,International LabourOrganization (ILO),Geneva08:Bobby Ghosh, Editor,

Time International,

USA; Pierre Nanterme,Chief Executive Officer,

Accenture, France; AxelA. Weber, Chairman of theBoard of Directors, UBS,Switzerland; GiuseppeRecchi, Chairman, Eni,Italy; Kenneth Rogoff,

Thomas D. CabotProfessor of PublicPolicy and Professorof Economics, HarvardUniversity, USA; andSir Martin Sorrell, ChiefExecutive Officer, WPP,United Kingdom


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We really are living in ahyperconnected reality, marvelledMarissa Mayer, Chief ExecutiveOfficer, Yahoo, USA, in a session

on The Global Agenda 2014. Sheacknowledged the disruption andpotential risks, but reckoned thathyperconnectivity can also beincredibly productive.Disruption usually results inproductivity gains and redistributionof wealth, Mayer said. We needto use that redistribution of wealthto fuel investment in education,communication and inclusion to get anice virtual cycle and make sure thatthe productivity gets used to solvesome of the global problems.

It is a sentiment shared by the 2,500public figures, business leaders andrepresentatives from civil society,academia, the media and arts whotook part in the Annual Meeting. Insession after session, participantsdiscussed the various strands ofdisruptive innovation that are changingthe way we live, learn, communicate

and collaborate.

The consensus was that thetransformations must be managedin ways that optimize the gainsand mitigate the risks. As KrisGopalakrishnan, President,Confederation of Indian Industry (CII)and Vice-Chairman, Infosys, India,observed: Technology is going tocreate significant opportunities, buthow we as humans adapt to the

changes will be very important.

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Getting the balance right

Embracing Disruptive

Innovation


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Marissa Mayer, Chief ExecutiveOfficer, Yahoo, USA; Co-Chair ofthe World Economic ForumAnnual Meeting 2014

2014 will be a tipping point.

Mobile, bandwidth and the

Internet of things are going to

change peoples lives.

Innovation revolutionVirtually every sphere of human activitywill be affected, no more so than

the dynamics between citizens andinstitutions. The model of top-downleadership, where rulers and chiefexecutive officers (CEOs) hand downdiktats for everyone else to follow, isbeing upended. Hyperconnectivity andwebsites that offer crowdsourcing,analytics and predictive algorithms canpotentially tell people at the top exactlywhat those in the middle and bottom ofthe pyramid are thinking and feeling.

At the same time, the governed nowhave the means to keep tabs on theirrulers and hold them accountable and galvanize action against those thatthey see as not upholding their part ofthe social contract. The Arab Springuprisings, for example, were enabledin large part by hyperconnectivity.Citizens learned what was going on viatexts, tweets and blogs, and activistsmobilized support and coordinatedprotests using mobile phones, socialmedia and the Internet.

Commerce is also greatly affected.Retailing giants such as Wal-Martare turning into IT companies thatmarry the digital and physical worldsin their operations and harness thepower of analytics and algorithmsto know how customers behaveindividually and collectively. You needto navigate from yesterday to tomorrowusing the tools of today, said DougMcMillon, Incoming President and

Chief Executive Officer, Wal-MartStores, USA, in a session on DisruptiveInnovation Ahead!

01:Steve Sedgwick,Presenter, CNBC,United Kingdom; FatihBirol, Chief Economist,

International EnergyAgency, Paris; Gao Jifan,Chairman and ChiefExecutive Officer,

Trina Solar, PeoplesRepublic of China; Mariadas Graas Silva Foster,Chief Executive Officer,Petroleo Brasileiro -PETROBRAS, Brazil;Ulrich Spiesshofer, ChiefExecutive Officer, ABB,Switzerland; Peter Terium,Chief Executive Officer,RWE, Germany; EnergyUtilities and TechnologyCommunity Leader 2013and Co-Chair of the

Governors Meeting for theElectricity System; andIchita Yamamoto, Ministerof State for State forScience and Technology

Policy and Minister ofState for Space Policy ofJapan02:Huguette Labelle,

Chair, TransparencyInternational, Germany;Global Agenda Council onResponsible MineralResources Management03:Alan Clark, ChiefExecutive Officer,SABMiller, UnitedKingdom04:Wang Weiguang,President, Chinese

Academy of SocialSciences (CASS),Peoples Republic ofChina05:Michael Andrew,Global Chairman, KPMGInternational, Hong Kong

SAR06:Jonathan Zittrain,Professor of Law andProfessor of ComputerScience, HarvardUniversity, USA; Young

Global Leader Alumnus;Global Agenda Council onthe Future of the Internet;Orit Gadiesh, Chairman,

Bain & Company, USA;World Economic ForumFoundation BoardMember; Patrick J. Leahy,Senator from Vermont(Democrat), USA; SalilShetty, Secretary-General, AmnestyInternational, UnitedKingdom; Global AgendaCouncil on the Role ofCivil Society; Bradford L.Smith, Executive Vice-President and GeneralCounsel, MicrosoftCorporation, USA; ShyamSankar, President, Palantir

Technologies, USA;

Technology Pioneer; andAugie K. Fabela II, Co-Founder and ChairmanEmeritus, VimpelCom,Netherlands

07:Neil Gershenfeld,Director, The Centerfor Bits and Atoms,Massachusetts Institute

of Technology (MIT),USA; and Subra Suresh,President, CarnegieMellon University, USA08: Orit Gadiesh,Chairman, Bain &Company, USA; WorldEconomic ForumFoundation BoardMember09:Klaus Schwab,Founder and ExecutiveChairman, WorldEconomic Forum;and Hassan Rouhani,President of the IslamicRepublic of Iran

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In just six months, the number of smartphones in use today,estimated at 500 million, will increase by an incredible factor ofeight to at least 4 billion. By 2020, there will be 50 billion networkeddevices globally that is six smartphones, tablet computers,laptops, Internet-ready appliances and vehicles and other gadgetsfor every man, woman and child on the planet.


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Today there is no more peak

oil, but there is still peak

capacity.

Christophe de Margerie,Chairman and Chief Executive

Officer, Total, France; Co-Chairof the World Economic ForumAnnual Meeting 2014

01:Marc R. Benioff,Chairman and ChiefExecutive Officer,Salesforce.com, USA;

Young Global LeaderAlumnus02:Barry Salzberg, GlobalChief Executive Officer,Deloitte, USA03:Mark Bertolini,Chairman, Chief ExecutiveOfficer and President,

Aetna, USA; Co-Chair ofthe Governors for GlobalHealth and HealthcareIndustry for 201304:Mohammad JavadZarif, Minister of Foreign

Affairs of the IslamicRepublic of Iran05:Nasser Sami Judeh,Minister of Foreign Affairsand Expatriates of theHashemite Kingdom ofJordan; and Richard N.Haass, President, Councilon Foreign Relations, USA06:Building Resilience toNatural Disasters07:Viviane Reding,

Vice-President andCommissioner, Justice,Fundamental Rights andCitizenship, European

Commission, Brussels

In an IdeasLab session on AdvancedManufacturing with the MassachusettsInstitute of Technology, participantsexplored how automation, digitization,cloud computing, advanced roboticsand 3D printing are some of theinnovations that are transforming

manufacturing, retailing, knowledgework and business processes. Therise of the sharing economy, which isenabled by hyperconnectivity, addsanother dimension to change. Whenconsumers rent instead of purchase,companies must focus on buildingcommunity trust and good customerexperience, or shift to products that donot lend themselves to sharing, suchas luxury items.

Benefits and risksThere is no doubt that innovation ishelping to bring about a better world.Joseph Jimenez, Chief ExecutiveOfficer, Novartis, Switzerland, isconvinced that emerging capabilitiesin bioinformatics, which combinecomputer science, statistics andengineering to process biological data,will transform the healthcare industry.This will make advances in medicinethat we have not seen in the past 10years, he said.

But innovation also brings risks.Excessive technology usage, forexample, can contribute to mentalillness. There are fears that roboticsand other technologies are destroyingjobs in manufacturing, informationmanagement and even teaching,

because Internet courses can beoffered to thousands of students at atime. Software is eating the world,warned Erik Brynjolfsson, Professor,Sloan School of Management,Massachusetts Institute of Technology,USA, in a Forum debate on RethinkingTechnology and Employment.

Big Brother concerns pertainingto privacy rights are also comingto the fore. This question of theright to privacy must be one of thedefining issues of our time, said SalilShetty, Secretary-General, AmnestyInternational, United Kingdom; GlobalAgenda Council on the Role of CivilSociety, in the Big Brother Problemsession. Ubiquitous networked devicesgather data, sometimes without theknowledge or consent of users, whichorganizations may access underthe guise of national security or forcompetitive business advantage.

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Technology is going to create

significant opportunities, but

how we as humans adapt to the

changes will be very important.

Kris Gopalakrishnan, President,Confederation of Indian Industry

(CII); Vice-Chairman, Infosys,India; Co-Chair of the WorldEconomic Forum AnnualMeeting 2014

Israel is often called a start-upnation. I call it the innovation

nation.

Benjamin Netanyahu, PrimeMinister of Israel

01:Jory Marino, InterimChief Executive Officer,

Heidrick & StrugglesInternational, USA02:Sandra Wu Wen-Hsiu, Chairperson andChief Executive Officer,Kokusai Kogyo, Japan;Global Agenda Council onInfrastructure03:Mohamed Alabbar,Chairman, EmaarProperties, United ArabEmirates04:Ahmed Galal, Ministerof Finance of Egypt

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Cyber criminals are stealing credit cardinformation and other commerciallyvaluable data that companies storeand are supposed to safeguard. But ina world of almost constant disruptiveinnovation, it is not too difficult to buy(or steal) ever sophisticated softwaretools to aid the criminal enterprise.For companies intent on protectingcustomer and other data, this is arace without a finishing line, as PeterT. Grauer, Chairman, Bloomberg,USA, aptly put it during a CEO Seriessession on Cracking the Code on Cyber

Resilience.

Call to actionThe answer is not to restrict or puta stop to innovation, even if thatwere possible. The right course isfor governments and businesses tocreate a nurturing environment forinnovation to flourish. The role of thepublic sector, said one panellist in theRegulating Innovation session, is to helpplant the seed, which can be doneby establishing business incubatorsand economic zones, easing theentry of foreign talent, and offering taxbreaks and incentives for research anddevelopment.

At the same time, governmentsshould be vigilant about detecting

and prosecuting cyber crime, whilebeing transparent about the way theythemselves collect and use personaldata. Government policies mustpreserve the anonymity of data, reduceover-collection of data, and set clearguidelines for the way personal data iscollected and used. Businesses shouldconsider establishing privacy boards tooversee management and collection ofconsumer data, and hire independentauditors to evaluate their data security

processes.

While innovation inevitably kills somejobs, it does create new employmentand business possibilities. Butgovernments, schools and companiesmust help equip young people andthose made redundant by innovationwith the knowledge and skills requiredby these new jobs. Training andtechnical and financial help to developentrepreneurship are also important not necessarily an expensiveundertaking with mass learninginnovations such as Massive OpenOnline Courses.

Ultimately, the G20 is not

about us in government; it isabout the people, our masters.

Tony Abbott, Prime Minister ofAustralia

I am optimistic that we will see newkinds of jobs created, particularly tohelp with youth unemployment, saidJudith Rodin, President, RockefellerFoundation, USA, and Co-Chair of theAnnual Meeting 2014. Technology canbe part of the solution instead of part ofthe problem. It is up to governments,businesses, civil society and individualsthemselves to make that statementcome true.

We are ready to move forward,

excel and have economic

development opportunities.

Enrique Pea Nieto, President ofMexico

01

01:Nick Clegg, DeputyPrime Minister of theUnited Kingdom



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One has to build resilience

when there is fragility in the

economy.

Ellen Johnson-Sirleaf, Presidentof the Republic of Liberia

01:William H. Gates III,Co-Chair, Bill & MelindaGates Foundation, USA02:The China Outlook03:Maurice Lvy,Chairman and ChiefExecutive Officer, PublicisGroupe, France and Chairof the Governors Meetingfor Media, Entertainment& Information 201404:Lewis Pugh, Founder,Our Blue Future, South

Africa; Young GlobalLeader05:Health is Wealth06:Richard Goyder,Chief Executive Officerand Managing Director,Wesfarmers, Australiaand Co-Chair of theConsumer CommunityGovernors Meeting 2014;

01

02

03

04

05 06

Aron Cramer, Presidentand Chief ExecutiveOfficer, Business forSocial Responsibility(BSR), USA; Global

Agenda Council on theRole of Civil Society; FeikeSijbesma, Chief ExecutiveOfficer and Chairmanof the Managing Board,Royal DSM, Netherlands;Global Agenda Councilon the Role of Business;Indra Nooyi, Chairmanand Chief ExecutiveOfficer, PepsiCo,USA; World EconomicForum FoundationBoard Member; andDennis Nally, Chairman,PricewaterhouseCoopersInternational, PwC, USA



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01:Michael Oreskes,Vice-President andSenior Managing Editor,

Associated Press (AP),USA; Jasmine Whitbread,Chief Executive Officer,Save the ChildrenInternational, UnitedKingdom; Global AgendaCouncil on Poverty &

04


David Cameron, Prime Minister ofthe United Kingdom

Its time to bring the benefits

of globalization home to ensure

the benefits are felt by hard-

working people in terms of

security, stability and peace of

mind.

02

03

01

Sustainable Development;David Cameron, PrimeMinister of the UnitedKingdom; Bono, LeadSinger, U2; Co-Founder,(RED); Co-Founder, ONE,Ireland; Ngozi Okonjo-Iweala, CoordinatingMinister for the Economyand Minister of Finance

of Nigeria; and TidjaneThiam, Group ChiefExecutive, Prudential,United Kingdom02:Cesare Mainardi,Chief Executive Officer,Booz & Company, USA03:Linah K. Mohohlo,Governor and Chairmanof the Board of the Bank

of Botswana; GlobalAgenda Council on theFuture of Universities04:Klaus Schwab,Founder and ExecutiveChairman, WorldEconomic Forum; andPark Geun-hye, Presidentof the Republic of Korea

For more about Embracing

Disruptive Innovation:Reshaping the World through

Entrepreneuship, Education and

Employmenthttp://wef.ch/52975

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http://wef.ch/52324

The Big Brother Problem

http://wef.ch/52092

The New Digital Context

http://wef.ch/52199

Can Technology turn traditional aid

on its head?

http://wef.ch/f3F43

How can companies thrive in the

age of disruption?

http://wef.ch/a3Al8



24/50


Since 2008, a relative economiccalm has found society slightly moreconfident in business but increasinglydoubtful of the public sector. Civilprotests challenging policy-makers inUkraine and elsewhere are matchedby demonstrations over wages andworking conditions in such countries asCambodia. Tragedies like the collapseof the Bangladeshi factory in RanaPlaza, which produced clothes for multi-billion dollar brands sold all over theworld, show how global supply chains

engender global societal responsibility.In January 2014, a leading global trustbarometer an attitudinal survey of

27 countries found that less thanhalf of respondents (43%) trustedchief executive officers (CEOs). Bycomparison, 67% trusted academics.

However, societys expectations alsoprovide a measure of hope. Accordingto the survey, 84% of respondentsbelieve business can pursue self-interest while doing good work forsociety. This was acknowledged byparticipants at the Annual Meeting.There is an ethical way to run a

company and be profitable, IndraNooyi, Chairman and Chief ExecutiveOfficer, PepsiCo, USA, said.

Shifting the conversations aroundcorporate boardrooms from quarterlyreports to decades of impact, fromshareholders to stakeholders, takesresolve, leadership and new ideasabout how to marry profit to purpose.And for the public sector to win backthe trust of societies, governmentsmust begin to look at human capitalas an investment towards, rather thana dividend from, growth. Without thattrust, said Dennis Nally, Chairman,PricewaterhouseCoopers International,

PwC, USA, there will be implications forthe global economic recovery.

Investing in human capital to restore trust

Meeting SocietysNew ExpectationsThose who trust us, educate us, wrote Mary Anne Evans, aka,George Eliot. Despite a return of relative calm to the financial

markets since the crisis of 2008-2009, much work needs to bedone to meet societys rising expectations of governments, and alsoof corporations, which now account for two-thirds of the worldslargest 175 economic entities. How can leaders of government,business and civil society restore that trust?


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01

02

03

04

Shimon Peres, President ofIsrael

Be satisfied with what is, but

remain visionary about what

can be done.

01:Kofi Annan, Chairman,Kofi Annan Foundation,Switzerland; Secretary-General, United Nations(1997-2006)02:Maria Kiwanuka,Minister of Finance andEconomic Planning ofUganda

03:Peter Brabeck-Letmathe, Chairmanof the Board, Nestl,Switzerland; WorldEconomic ForumFoundation BoardMember04:Laurence Fink,Chairman and ChiefExecutive Officer,BlackRock, USA

Park Geun-hye, President of theRepublic of Korea

Every member of humanity

has the potential to become a

member of the success story of

a creative economy.

Wang Yi, Minister of ForeignAffairs of the Peoples Republicof China

China will contribute more

strength to global peace.


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01:Carlos Ghosn, Chairman and Chief Executive Officer, Renault-Nissan Alliance, France; World Economic Forum Foundation Board Member; Christine Lagarde, ManagingDirector, International Monetary Fund (IMF), Washington DC; World Economic Forum Foundation Board Member; Phumzile Mlambo-Ngcuka, Undersecretary-General andExecutive Director, UN Women, New York; Sheryl Sandberg, Chief Operating Officer and Member of the Board, Facebook, USA; Young Global Leader Alumnus; and Linda Yueh,Presenter and Chief Business Correspondent, BBC News, United Kingdom

From shareholders to stakeholdersThe crises and rising societal demandshave largely squashed the idea thatcorporate social responsibility canbe an altruistic add-on to otherwiseunsustainable business practices.Business leaders have begun lookingfar beyond the impact of their directpractices to understand the profoundimpact of their supply chains.

One thing Ive noticed this year hereat Davos, is that you no longer hearin meetings of CEOs, my business,my business, said James C. Smith,

President and Chief Executive Officer,Thomson Reuters, USA. You hearpeople talking about our supplychains. Just as no CEO of a clothingmanufacturer wants to have his or herlabel pulled out from the rubble of thenext Rana Plaza, some business leadersare actively looking for ways to buildvalue through their broader sourcing,said Alan Clark, Chief Executive Officer,SABMiller, United Kingdom, of hiscompanys efforts to improve the livesnot only of the 13,000 direct workersdirectly but also of the 700,000 forwhom their procurement provides work.

Too many businesses continue tounderuse and undervalue half oftheir potential workers because oftheir gender. By contrast, a few havedecided to invest in women, and arethus building value for their companies,and for the communities they engage.Muhtar A. Kent, Chairman of theBoard and Chief Executive Officer,The Coca-Cola Company, USA,has initiated a 5by20 programme,aimed at empowering 5 million femaleentrepreneurs by 2020. As of December2013, the programme had reached337,000.


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Promoting more women to leadershiproles and creating environments moreconducive to womens input makesgood sense from the perspectiveof business, politics and ethics,participants at the session on Gender-driven Growth were told. In post-conflict situations, for example, Theinvolvement of women is fundamental

to sustainable peace, PhumzileMlambo-Ngcuka, Executive Directorof UN Women, said. Women are morelikely to play a role in government aftera conflict and to promote policies thatreduce gender discrimination in caseswhere they have been involved in suchnegotiations.

Other demographics are similarlyuntapped potential. Youthunemployment, for instance, tops 40%

in some OECD countries. Guy Ryder,Director-General, International LabourOrganization (ILO), Geneva, warnedthat about one in six youth in theOECD countries is neither in jobs norin training. Finally, as life expectanciesincrease worldwide, older workersneed to be better utilized throughskill-sharpening programmes, as wellas mentorship initiatives with youngercolleagues.

Investing in human capitalRestless new democracies, particularlyin the Middle East and North Africa,have been the loudest and mostvociferous populaces to demandsocietal shifts. However, civil societyin the West has also pressed for

change, and in China and India, newmiddle classes are calling for actionagainst corruption and environmentaldegradation.

In over 15% of the worlds economies,corruption is the number oneimpediment to doing business. Theminute you pay that first bribe, saidHuguette Labelle, Chair, TransparencyInternational, Germany; Global AgendaCouncil on Responsible MineralResources Management, youve gotyour arm in the meat grinder, and thebody goes, because youre alreadycomplicit.

01

02

03


Hassan Rouhani, President of

the Islamic Republic of Iran

Globalization has shown in

the global crisis that we are

all in the same boat. If we do

not choose wise captains, the

storm will harm us all.

Judith Rodin, President,Rockefeller Foundation, USA;

Co-Chair of the World EconomicForum Annual Meeting 2014

I am optimistic that we will

see new kinds of jobs created,

particularly to help with youth

unemployment.

01:Ahmet Davutolu,Minister of Foreign

Affairs of TurkeyAntonio Guterres, UNHigh Commissionerfor Refugees, Geneva;and Baroness Valerie

Amos, Undersecretary-General for Humanitarian

Affairs; Emergency ReliefCoordinator, UnitedNations, New York;Global Agenda Council onCatastrophic Risks02:Robert Kagan, SeniorFellow, BrookingsInstitution, USA; Global

Agenda Council on theUnited States; andJavier Solana, HighRepresentative forCommon Foreign andSecurity Policy of theEuropean Union,European Union, Belgium;Global Agenda Councilon Europe

03:Tom Hulme, Founderand Managing Director,OpenIDEO.com andDirector, Design, IDEO,United Kingdom; YoungGlobal Leader; Inge G.

Thulin, Chairman of theBoard, President andChief Executive Officer,3M Company, USA;

Anthony Goldbloom,Founder and ChiefExecutive Officer, Kaggle,USA; Technology Pioneer;Juliana Rotich, Co-Founder and ExecutiveDirector, Ushahidi, Kenya;

Social Entrepreneur;Global Agenda Council onData-Driven Development;and Apurv Mishra,Founder, Glavio WearableComputing, India; GlobalShaper; Global AgendaCouncil on Emerging

Technologies


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Christine Lagarde, ManagingDirector, International MonetaryFund (IMF), Washington DC

We need a reset in the way

the economy grows around the

world.

Since 2004, the World EconomicForums Partnering Against CorruptionInitiative (PACI), a multi-industry effort,founded and led by CEOs, has setbusiness standards on transparency,competitiveness and accountability.It interfaces with the B20 and other

initiatives, and has had measurableimpact among customs agencies andthe business practices of many of theworlds largest corporations.

Finally, certain governments arerecognizing the benefits of investingin health and education, and thecosts of not doing so. This is one ofthe highlights of the World EconomicForums Human Capital Report, whichranks countries on how well they investin the health and well-being of theirpeople, and how well that investmentis being leveraged by the economythrough meaningful work.

If you were seeking to try to improvethe economic status of a nation,Francis S. Collins, Director, NationalInstitutes of Health, USA; GlobalAgenda Council on Personalized &Precision Medicine, said: a focus onhealth is wise.


Klaus Schwab, Founder andExecutive Chairman, World

Economic Forum

A great leader has brains,

vision, soul, values and a

heart.

01:Luciano Coutinho,President, BrazilianDevelopment Bank(BNDES), Brazil02:Andrew N. Liveris,Chairman and Chief

Executive Officer, TheDow Chemical Company;and Michael S. Dell,Chairman and ChiefExecutive Officer, Dell Inc.

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01:Hilde Schwab,Chairperson andCo-Founder SchwabFoundation for SocialEntrepreneurship02:Mark J. Carney,

Governor of the Bank ofEngland; World EconomicForum Foundation BoardMember

03:H.M. Queen Mathildeof Belgium04:Jos Manuel Barroso,President, EuropeanCommission, Brussels;and Elif Shafak, Author,

Turkey; Global AgendaCouncil on the Role of the

Arts in Society

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01:Breaking Silos inDevelopment02:Brian Chesky, ChiefExecutive Officer, Airbnb,USA; Technology Pioneer03:Jim Yong Kim,President, The WorldBank, Washington DC

04:Marissa Mayer, ChiefExecutive Officer, Yahoo,USA; Co-Chair of theWorld Economic Forum

Annual Meeting 2014;Young Global Leader05:Pravin Gordhan,Minister of Finance of

South Africa06:Montek Singh

Ahluwalia, Deputy

Chairman, PlanningCommission, India07:Tan Chorh-Chuan,President, NationalUniversity of Singapore,Singapore; Global AgendaCouncil on the Future ofUniversities; and Patrick

Aebischer, President,Ecole PolytechniqueFdrale de Lausanne(EPFL), Switzerland;World Economic ForumFoundation BoardMember; Global AgendaCouncil on the Future ofUniversities08: Rui Chenggang,

Director and Anchor,China Central Television,Peoples Republic ofChina; Joseph S. Nye Jr,University DistinguishedService Professor, HarvardKennedy School, HarvardUniversity, USA; Global

Agenda Council on theFuture of Government;

Angel Gurra, Secretary-

General, Organisation forEconomic Co-operationand Development (OECD),Paris; World EconomicForum Foundation BoardMember; Global AgendaCouncil on Water Security;Nick Clegg, Deputy PrimeMinister of the United,Kingdom; Wang Jianlin,Chairman, Dalian WandaGroup, Peoples Republicof China; and Lloyd C.Blankfein, Chairman andChief Executive Officer,Goldman Sachs Group,USA09:Rob Portman, Senator

from Ohio (Republican),USA

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Didier Burkhalter, President ofthe Swiss Confederation and

Minister of Foreign Affairs

Switzerland is ready to

contribute to greater security

and stability in the world.

For more about Meeting

Societys New Expectations:Gender-driven Growth

http://wef.ch/53309

Why migrants are our cities

untapped potential

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Faith and Gender Equality - Mind

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http://wef.ch/52677

The Millennial Challenge

http://wef.ch/52114

Doing Business the Right Way

http://wef.ch/52108


01:Diplomacy andWarfare in the Digital Age02:Sheryl Sandberg,

Chief Operating Officerand Member of theBoard, Facebook, USA;

Young Global LeaderAlumnus03:Mauricio Crdenas,Minister of Finance andPublic Credit of Colombia04:Gita Wirjawan,Minister of Trade ofIndonesia05:Paul Bulcke, ChiefExecutive Officer, Nestl,Switzerland

06:Klaus Schwab,Founder and ExecutiveChairman, World

Economic Forum; andShimon Peres, Presidentof Israel07:Abdelilah Benkirane,Chief of Government ofMorocco

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How do we break this spiral? Howdo we decouple economic growthfrom resource consumption and risingenvironmental impacts? How do wereshape the world to avoid reachingour peak footprint on the planet?

We should celebrate the net decline inchronic poverty since the MillenniumDevelopment Goals (MDGs) wereintroduced. The OECD expects up to3 billion more people to join the middleclass over the coming decades. Morepeople are being lifted out of poverty

than ever before, and with the new2015 MDGs there is a chance toget to zero extreme poverty within ageneration. This is good news.

There is, however, a downside. Thelatest scientific assessment presentedin 2013 by the Intergovernmental Panelon Climate Change (IPCC), the worldsforemost network of climate scientists,says the warming of the Earths climatesystem is unequivocal. Many of theclimatic changes observed in the past50 years are unprecedented. Eachof the past three decades has beensuccessively warmer at the Earthssurface than any preceding decadesince 1850.

The increased risk of extreme weather similar to Hurricane Sandy in theUnited States in 2012, or TyphoonHaiyan in the Philippines in 2013 is

How to avoid reaching our peak footprint on the planet

Sustaining

a World of9 BillionThe growing world economy is consumingmore resources than ever. Poorly managed

resource consumption also fuels climatechange. More frequent extreme weatherevents floods, storms and droughts areoccurring. These disrupt supply chains,threaten food security and create food pricevolatility. Meantime, the global populationgrows toward 9 billion and many of thepoorest face rising food insecurity. Yet ourgrowing world economy is consuming moreresources than ever.

Al Gore, Vice-President of theUnited States (1993-2001);

Chairman and Founder,Generation InvestmentManagement, USA

We must adapt. But without

mitigation we will reach a point

where it is impossible to adapt.



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01:H.M. Queen Rania AlAbdullah of the HashemiteKingdom of Jordan

a reminder of the economic and socialimpact this challenge poses. Indeed,climate change and related impactssuch as extreme weather events, foodcrises and water crises are four of thetop 10 global economic risks identifiedby the World Economic Forum Global

Risks 2014report.

The failure to act in a timely manner,at the scale that is required, has thepotential to be a significant drag onglobal growth prospects. The reportalso identifies global governancefailure as a top 10 global economicrisk. Furthermore, many importantdevelopment advances of the 20thcentury, such as food security, globalhealth or poverty reduction, could alsobe undermined by climate change, asthe World Bank suggests in a recentreport on the perils of a 4C world.

Conversely, building a cleaner, moreefficient and more resilient economyoffers many economic and technologyinnovation opportunities. Moreevidence continues to emerge on theco-benefits of pursuing clean andgreen development; and this newclimate economy agenda is becomingcentral for many emerging economies.

Industry, civil society, internationalorganizations and individual citizens allhave a part to play. By drawing on thecombined innovation, resources andeffort from across the public, privateand civil society sectors, and throughmobilizing large-scale, practicalcollaboration and alliances, significantnew opportunities to lower emissions

and build economic resilience canbe realized. By demonstrating thatpractical action can be mobilized, suchcomplementary activities may also helpto nourish wider political engagementon climate change.

Consequently, the United NationsSecretary-General and the ExecutiveSecretary of the United NationsFramework Convention on ClimateChange (UNFCCC) agreed with theWorld Economic Forum jointly toadvance public-private cooperation,action and ambition on climate changeand broader sustainability issues. Thisresulted in a focus on collaborativesolutions to climate change the firstClimate Day at the World EconomicForum Annual Meeting 2014. Givenmomentum by Climate Day at Davos,the drive to deliver large-scalecollaborative solutions will continuethrough to the UN Climate Summit inNew York, on 23 September 2014, andon to the UNFCCC meetings in Lima,Peru in late 2014 and beyond.At the same time as widespreadcollaboration is on the rise, so isinnovation. One of the most promisingcourses is the move towards a circulareconomy. The dominant doctrine of

production and consumption in the20th century was linear or take-make-dispose; a circular economy describesan industrial process that is, by design,recyclable and restorative.

Through the Forums new initiativeProject Mainstream: Scaling theCircular Economy, launched with

Matt Damon, Actor andCo-Founder, Water.org, USA

Access to water is access to

education, work, and the kind

of future we want for all the

members of our human family.



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the Ellen MacArthur Foundation atthe Annual Meeting 2014, privateenterprises will forge new businessmodels based on this thinking, notdriven by environmental stewardship,but because they present commercialopportunities.

Opportunities abound. The Europeanmarket for fast-moving consumergoods is 3.2 trillion a year, of which20% could be recuperated throughsmart circular practices. The potentialfor materials cost-savings of a morerestorative approach are estimatedto be US$ 1 trillion a year by 2025.Being a cost-saving, this representsa possible US$ 1 trillion profit uplift.This new way of thinking about theindustrial process is so promising it hasbeen adopted by China as part of itsmost recent five-year plan.

Process innovation is only thebeginning of the research anddevelopment roadmap for the circulareconomy. More revolutionary is theconcept of so-called digital fabricationin industrial design and manufacture.In this process, materials areprogrammed as discrete, functionalelements that can be assembled and

disassembled according to usage.Imagine a circuit board made ofnano-scale components which can bearranged like childrens building blocks,then rearranged when recycled.

On the issue of water, the breakthroughglobal public-partnership of the 2030Water Resources Group is nowworking across seven countries. It

is helping governments to developinnovative economic analyses of theirfuture water needs how much waterwill the economy need to grow asplanned? How much water is safelyavailable? So, how best to close thegap?

Another innovation that is making adifference is water credit, a conceptpioneered by an NGO, Water.org.Under the scheme, communitieslacking access to safe drinking wateror sanitation can qualify for loans thatare used to build water infrastructure intheir community. This form of catalyticphilanthropic investment has alreadyimproved the water access of morethan 900,000 people.

In agriculture, the New Vision forAgriculture continues to grow. A newinnovative partnership, Grow Asia,is under development to mirror thesuccessful build-out to date of GrowAfrica.

Ultimately, the most powerful force inreshaping global resource consumptionwill be consumer choices themselves.Here too, promising patterns areemerging. Millennials, roughly defined

as people presently aged between18 and 30, consider themselves asusers rather than consumers. Thisis evidenced by the phenomenalrise of collaborative consumption,efficiently facilitated by the Internet.New digital initiatives to corral theinnovation of millennials into creatingmass movements on sustainability andclimate change issues are under way.

02:Lord NicholasStern, President, TheBritish Academy, UnitedKingdom02:Nouriel Roubini,Professor of Economicsand International

Business, Leonard N.Stern School of Business,New York University, USA


John F. Kerry, US Secretary ofState

Successful diplomacy

demands the kind of

cooperation that comes from

many stakeholders.

01

02



35/50

01:Jim Yong Kim, President, The World Bank, Washington DC; William H. Gates III, Co-Chair, Bill & Melinda Gates Foundation, USA; Ngozi Okonjo-Iweala, Coordinating Minister forthe Economy and Minister of Finance of Nigeria; and Al Gore, Vice-President of the United States (1993-2001); Chairman and Founder, Generation Investment Management, USA


01



36/50

01:Felipe LarranBascun, Minister ofFinance of Chile; AliciaBrcena Ibarra, ExecutiveSecretary, United NationsEconomic Commissionfor Latin America; EnriquePea Nieto, President ofMexico; Young GlobalLeader Alumnus; JuanManuel Santos, Presidentof the Republic ofColombia; and Csar

Villanueva, Prime Minister

of Peru02:Social EntrepreneursDebrief03:Federico Ghizzoni,Chief Executive Officer,UniCredit, Italy; Olli Rehn,

Vice-President, Economicand Monetary Affairs,European Commission,Brussels; and WolfgangSchuble, Federal

01

02

03

04

Minister of Finance ofGermany04:Christopher Dickey,Bureau Chief, Paris,and Middle East Editor,Daily Beast, USA;Rowsch N. Shaways,Deputy Prime Ministerof Iraq; Rola A. Dashti,Minister of Planning andDevelopment and Ministerof State for National

Assembly Affairs of Kuwait(2012-2014); Ahmed

Galal, Minister of Financeof Egypt; MohamedAlabbar, Chairman, EmaarProperties, United ArabEmirates; and KamalBin Ahmed Mohammed,

Acting Chief Executive,Bahrain EconomicDevelopment Board,Bahrain


Dilma Rousseff, President ofBrazil

We will transform a finite

resource, petroleum, into

a lasting one: an educated

population.



37/50

01:Daniel Glaser,President and ChiefExecutive Officer, Marsh& McLennan Companies(MMC), USA

02:Diezani K. Alison-Madueke; Minister ofPetroleum Resources;Ministry of PetroleumResources of Nigeria03: Jean-Franois vanBoxmeer, Chairman ofthe Executive Board andChief Executive Officer,HEINEKEN, Netherlandsand Co-Chair of theConsumer CommunityGovernors Meeting2014; Neil Gershenfeld,Director, The Centerfor Bits and Atoms,Massachusetts Instituteof Technology (MIT),

USA; Ali Velshi, Anchor,Al Jazeera America,USA; Frans van Houten,President and ChiefExecutive Officer, Royal

Philips, Netherlands; EllenMacArthur, Founder, EllenMacArthur Foundation,United Kingdom; andWilliam McDonough,

Consulting Professor ofCivil and EnvironmentalEngineering, StanfordUniversity, USA04:Jim Wallis, Presidentand Founder, Sojourners,USA; Global AgendaCouncil on Values05:Anshu Jain, Co-Chief Executive Officer,Deutsche Bank, Germanyand Co-Chair of theGovernors for FinancialServices for 201406:Wang Jianlin,Chairman, Dalian WandaGroup, Peoples Republicof China

01

02

03

04

05

06


Shinzo Abe, Prime Minister ofJapan

Japan has sworn an oath never

again to wage war. We have

never stopped, and continue tobe, wishing for the world to be

at peace.



38/50

01:Paul E. Jacobs,Chairman and ChiefExecutive Officer,Qualcomm, USA02:Turki Al Faisal AlSaud, Prince of SaudiRoyal Family; Chairman,King Faisal Center forResearch and IslamicStudies, Saudi Arabia;

and Alexey Pushkov,Author, Anchor andExecutive Producer,Postscript TV Show,

TV-Center (TVC), RussianFederation03:The China Outlook04:Christopher Graves,Global Chief ExecutiveOfficer, Ogilvy PublicRelations Worldwide, USA05:Judith Rodin,President, RockefellerFoundation, USA;Co-Chair of the WorldEconomic Forum AnnualMeeting 201406:Next Steps for

Emerging Economies07:Jeroen Dijsselbloem,President of the EuroGroup; Minister of Financeof the Netherlands

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For more about Sustaining a World of

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From Waste to Wealth

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Swimming the North Pole to fight climatechangehttp://wef.ch/t1QtE

Leading the Global Cliimate and EnergyAgenda

http://wef.ch/53591

01:Juliana Rotich, Co-Founder and ExecutiveDirector, Ushahidi, Kenya;Social Entrepreneur;Global Agenda Council onData-Driven Development02:Gillian R. Tett,

Assistant Editor andColumnist, Financial

Times, USA; Fleur

Pellerin, Minister forSMEs, Innovation andDigital Economy ofFrance; Min Zhu, DeputyManaging Director,International MonetaryFund (IMF), WashingtonDC; World EconomicForum FoundationBoard Member; MarkWeinberger, GlobalChairman and ChiefExecutive Officer, EY,USA; A. Michael Spence,William R. Berkley

Professorin Economics andBusiness, NYU SternSchool of Business, Italy;Global Agenda Council onNew Growth Models; andRoberto Quarta, Partnerand Chairman Europe,Clayton, Dubilier & Rice,United Kingdom

03:Martin Roth,Director, Victoria andAlbert Museum, UnitedKingdom; Jos ManuelBarroso, President,European Commission,Brussels; Elif Shafak,

Author, Turkey; GlobalAgenda Council on theRole of the Arts in Society;Olafur Eliasson, Artist,Studio Olafur Eliasson,Germany; Young GlobalLeader Alumnus; ShirinNeshat, Artist, USA; andJames Cuno, Presidentand Chief ExecutiveOfficer, J. Paul Getty

Trust, USA04:Neelie Kroes,

Vice-President andCommissioner forthe Digital Agenda,European Commission,Brussels; Co-Chair of theGovernors for Informationand Communication

Technologies Industries2013; and JeffreyJoerres, Chairman andChief Executive Officer,ManpowerGroup, USA05:Responding to GlobalRisks06:David M. Rubenstein,Co-Founder and Co-Chief

Executive Officer, CarlyleGroup, USA, and Co-Chair of the GovernorsMeeting for Investors2014; Jiang Jianqing,Chairman of the Board,Industrial and CommercialBank of China, PeoplesRepublic of China;Co-Chair of the WorldEconomic Forum AnnualMeeting 2014; GuillermoOrtiz, Chairman of theBoard, Banorte, Mexico;Global Agenda Council onthe International MonetarySystem; and Lord J. Adair

Turner, Senior Fellow,The Institute for NewEconomic Thinking (INET),United Kingdom07:Philip J. Jennings,General Secretary, UNIGlobal Union, Switzerland08:Gordon Brown,Chair, World EconomicForum Global StrategicInfrastructure Initiative;UN Special Envoy forGlobal Education; PrimeMinister of the UnitedKingdom (2007-2010);Global Agenda Council onInfrastructure

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Arts &Culturein Davos



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Arts and Culture in Davos

Amid the important economic,political and societal conversationsgoing on during the WorldEconomic Forum Annual Meeting,

there exists a space for artists andcultural leaders to communicatetheir work to inspire and allowfor new ways of thinking about theworld. There has been a growingemphasis on the role of the artsin Davos, and this year 35 leadersfrom the world of arts shared theirideas with others from business,government and civil society.

The Annual Meeting 2014 openedwith the annual Crystal Awards,honouring Academy Award-winningactor Matt Damon, visual artistShirin Neshat and tenor Juan DiegoFlrez for their contributions toimproving the state of the world.The ceremony was followedby a concert by the MariinskyOrchestra of St Petersburg underthe leadership of Maestro Valery

Gergiev.The Meetings cultural programmealso included rich sessions oncultural identity, heritage, the future

of music, the creative economy,the power of design and muchmore. Speakers included ThomasCampbell of the Metropolitan

Museum, Marc Spiegler of ArtBasel, Paola Antonelli of MoMA andMathieu Jaton of the Montreux Jazzfestival.

Celebrated artists Elif Shafak, OlafurEliasson and David Adjaye sharedtheir life and work in a new seriesof intimate interviews called Insidethe Creative Mind. Two exhibitions one curated in partnership with

the Pinchuk Foundation featuringthe work of Andreas Gurskyand Damien Hirst, the other inpartnership with Berengo Studiofeaturing the work of DelphineLucielle and the Recycle Group gave participants the opportunityto reflect on nature, relationshipsand ourselves. Goldie Hawn,the actress and advocate of thebenefits of meditation for children,

led a session on how mindfulnesstraining and emotional learning canchange the world.



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CEO Series:

tackling the majorchallenges

New to the Annual Meeting this year was the CEO Series,peer-to-peer sessions designed as a learning experienceuniquely for chief executives. Topics included organizational

agility and learning in a complex world, tackling talent scarcity,business in frontier markets and cyber resilience.Organizational Agility and Learning in a Complex World

One challenge companies face today is how to maintain abalance between stability and agility, to stay focused on corevalues and strategic vision, while maintaining the flexibility thatallows them to be innovative and responsive to market forces.For companies to succeed in a fast-changing world, CEOsneed to develop a clearly defined strategy, move beyondcentralized HQ boundaries and permit regional decision-making, and build resilience by establishing a clear set of

core values and sticking to them. CEOs should also buildand celebrate value-based cultures that foster trust, and hirepeople who can work with volatility and ambiguity.

Tackling Talent Scarcity

Despite 200 million unemployed worldwide, including 75million youth, one-third of employers cannot find humanresources with the skills they require. This mismatch betweensupply and demand of skills is an urgent problem thatneeds to be understood and resolved to reduce severeunemployment. To close the gap, CEOs should work withgovernment and NGOs to create broader awareness aboutopportunities in specific sectors, create more part-time jobopportunities and encourage job seekers to take them,and adopt apprentice systems, which have had success inGermany, Switzerland and Austria.

Doing Business in Frontier MarketsThere are risks and challenges of doing business in pre-emerging markets, but there is potential for long-term returnson investment, both portfolio and foreign direct investments.Sectors such as oil and gas, power, infrastructure, agriculture,retail, healthcare and education offer especially interestingopportunities. Before investing in frontier markets, CEOs needto have strong balance sheets and corporate governance, aswell as zero tolerance for corruption. This can be achieved byinstilling core values in employees, irrespective of location.

Cracking the Code on Cyber Resilience

The sophistication and determination of cyber criminalscontinue to grow exponentially, as do those involved ingovernment and corporate espionage and terrorism. Thus,it is essential for companies and governments to develop awide spectrum of security capabilities. Companies that dealwith sensitive and critical information such as those in financialservices should put cyberattacks at the top of their list ofrisks. While CEOs and corporate boards are increasinglybecoming aware of the threat, not everyone knows how torespond to it effectively. In todays hyperconnected world,companies need to have dedicated IT teams to constantlymonitor technology systems and devise ways to repel cyberattacks. Encryption is another line of defence as is two-factorverification requiring a username and password; use ofbiometric information, such as fingerprints and DNA, are alsouseful techniques.



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01:Paul Polman, ChiefExecutive Officer, Unilever,United Kingdom02:Kamal Nath, Ministerof Urban Developmentand Minister ofParliamentary Affairs ofIndia03:Muhammad Yunus,Chairman, Yunus Centre,

Bangladesh04:John F. Kerry, USSecretary of State; andKlaus Schwab, Founderand Executive Chairman,World Economic Forum05:Indra Nooyi, Chairmanand Chief ExecutiveOfficer, PepsiCo, USA;World Economic ForumFoundation BoardMember06: Matt Damon, Actorand Co-Founder, Water.org, USA07:Young Global Leaderssession

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Reports and Initiativesat the Annual Meeting

Bringing Space Down to Earth

The World Economic Forums Global Agenda Council on Space Securitypublication highlights how space-derived services not only improve theefficiency and effectiveness of many terrestrial activities but also provideimportant information to prevent and mitigate natural disasters and other risks.http://wef.ch/spacepreview

Cllmate AdaptationThe World Economic Forums Global Agenda Council on Climate Changes report,Climate Adaptation: Seizing the Challenges, captures some of the latest thinking inthe field of climate adaptation and financing, with the goal of assisting decision-makers in the public and private sectors to gain a better understanding of the issue.http://wef.ch/ca2014

Collaborating for Healthy Living

The World Economic Forums Healthy Living Initiative, in collaboration with Bain &Company, offers a guide for policy-makers and practitioners to overcome the mostcommon bottlenecks for multistakeholder collaboration in addressing the risingprevalence of non-communicable diseases (NCDs).

http://wef.ch/hl2014

Demystifying the ArcticPublished by the World Economic Forums Global Agenda Council on the Arctic, thisreport shows that while opportunities in the Arctic exist for resource developmentand shipping, numerous challenges must be addressed to ensure that any future

plans unfold sustainably, so that its unique and vulnerable environment is maintainedfor future generations.http://wef.ch/arctic14



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Enabling Trade ReportThe World Economic Forums Global Enabling Trade Report series focuses onmeasuring whether economies have in place the necessary attributes for enablingtrade and where improvements are most needed. This years report, Enabling Trade:From Valuation to Action, examines supply chains and food security, the automotivesector, regional trade agreements and border management.http://wef.ch/trade14

Engaging Tomorrows Consumer

In 2013, companies involved in the World Economic Forums Engaging TomorrowsConsumer project designed three initiatives to change attitudes and behaviour ofconsumers, especially millennials, on sustainability. Insights and businessimplications will be discussed in 2014.

http://wef.ch/entoc

Global Risks Report 2014The ninth edition of the Global Risks Report analyses the perceived impact andlikelihood of 50 prevalent global risks over a 10-year timeframe. The risks are

divided into five categories: economic, environmental, geopolitical, societal andtechnological.http://wef.ch/risks2014

Health Systems Leapfrogging in Emerging Economies

The World Economic Forum project paper, Health Systems Leapfrogging inEmerging Economies, aims to help emerging economies face the growingchallenge of putting their health systems on a path to sustainability.http://wef.ch/healthleap14

Infrastructure Investment Policy Blueprint

The Infrastructure Investment Policy Blueprintoffers a practical set ofrecommendations for governments on attracting private capital for infrastructureprojects while creating clear social and economic value for their citizens.http://wef.ch/iipb14

New Energy Architecture

Prepared in collaboration with Accenture,the Global Energy ArchitecturePerformance Index Report 2014assesses regions and 124 countries according toeconomic growth, environmental sustainability and energy security performance,analysing the complex trade-offs and dependencies that affect country efforts.

http://wef.ch/nea14

Norms and Values in Digital Media

As part of the Norms and Values in Digital Media project, the World EconomicForum launched Principles for the Creative and Information Economy in the DigitalAge to address intellectual property issues online.

http://wef.ch/dn2014

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Partnership Against Corruption Initiative (PACI)

The PACI Principles were updated in 2013 and retitled thePACI Principles forCountering Corruption. These revised principles are intended to be a guidingframework for businesses ready to assume a leading role in tackling corruption in allits forms.

http://wef.ch/paci2014


Risk and Responsibility in a Hyperconnected WorldWith the recent proliferation of cyber attacks, corporate executives have had todevote increasing attention to protecting vulnerable operations. TheRisk andResponsibility in a Hyperconnected Worldreport assesses options that companiescan take to increase cyber resilience and mitigate the economic and strategicimpact of such attacks.http://wef.ch/hyper2014

Russias Regions: Drivers of GrowthPublished by the World Economic Forums Global Agenda Council on Russia, thisreport provides an overview of the diversity of Russias regions, describes

continuous obstacles to growth, explores concrete reforms that can beundertaken at the regional level, and highlights examples of best practice fromleading regions in Russia.http://wef.ch/russia2014

Safeguarding Aviation and TravelThe Safeguarding Aviation & Travel Value Chains Against Corruptionreport examinesthe impact of corruption risk areas on different sectors of the aviation & travel valuechains, including aerospace, aviation and hospitality.http://wef.ch/sat2014

Scenarios for MongoliaThis report suggest possible future scenarios for Mongolia by 2040. This exerciseencourages stakeholders to take a long-term perspective and vision on manyprojects, which have far-reaching implications for Mongolias economic sustainabilityand prosperity.http://wef.ch/mongolia14

Technology Pioneers 2014

Thirty-six leading start-ups have been selected as World Economic ForumTechnology Pioneers. The companies were selected for their demonstrative visionand leadership, potential for growth and innovative ideas, as well as their impact onsociety and business.http://wef.ch/tech2014

Water Resources GroupThe Water Resources Group was launched at the World Economic Forum AnnualMeeting 2012 as a new model of global pu

wef am14 public report

Documents