Archive for the ‘World Economic Forum - Davos’ Category

A collective piece coordinated by Jennifer Corriero and released today, The Youth Effect focuses on those who come behind as the safest bet to build a better future.  What a beautiful “graduation present” from the Forum of Young Global Leaders, of which I had the honor of belonging to the inaugural class.  It should help us never forget that one day someone believed in us.

The Youth Effect was created to inspire leaders of organizations across sectors to believe in the capability of youth and to develop the skills of established leaders in being able to engage and collaborate more effectively with youth. It is part of an effort to ensure that children and youth are an integral part of designing, shaping and creating a more sustainable future. [...]

Here are a few tweet-size quotes:

“How do we utilize the enormous potential of youth to influence the broader society and effect real change?” David Jones  #youtheffect

“People are true changemakers. How do we enlarge physical and mental spaces to let youth into the leadership sphere?” Penny Low  #youtheffect

“Leaders need to understand what matters to today’s youth. How do we involve this generation?” Hon. Scott Brison #youtheffect

“How do we motivate youth into action and involve them in the democratic process?”  Juan Mario Laserna and Christine Balling #youtheffect

“Youth are important Champions of Global Dignity. How do we provide them the opportunities to develop?” HRH Crown Prince Haakon  #youtheffect

“Youth can transcend the pressures of social divisions. How do we utilize their social competitive advantages?” Wilmot Allen #youtheffect

Focus on reaching young people instead of simply finding them. How do we “integrate and not infiltrate”? Josh Spear  #youtheffect

“Today’s youth are “digital natives” of social media. How can employers manage Gen Y?” Lucian Tarnowski  #youtheffect

“Today’s children are born in a world of unlimited communication. How do foster creative innovation among them?” Adrian Cheok  #youtheffect

“Integrated media campaigns are successful in reaching the youth. What was the Shuga campaign in Kenya?” Bhavneet Singh #youtheffect

“We need to unleash the creative potential of youth.  How do we transform the classroom to grow leadership?” Jennifer Corriero #youtheffect

“Facilitating meetings are key to engaging the youth. How do you successfully structure and conduct these meetings?” Yair Goldfinger #youtheffect

“Youth are not only the future, but also present leaders. How do we make them a part of setting the agenda?” Teresa Kennedy #youtheffect

“How do we engage and empower marginalized youth, especially female youth, to bring about transformational change?” Lorna Solis #youtheffect

“When youth are obsessed with a new idea, they display true entrepreneurial streak. How do we encourage them?” Kingsley Bangwell #youtheffect

“Being an entrepreneur can be a viable development tool for youth. How do we foster youth entrepreneurship?” Alfredo Capote #youtheffect

“We need to address the lack of financial literacy among youth. What is the “LEARN MONEY” initiative?” Carolina Müller-Möhl #youtheffect

“Good managers are socially conscious and responsible. How do we shape young business leaders to serve society? ” Angel Cabrera #youtheffect

“Role models inspire youth to become change makers of the present & shapers the future. How do we inspire them?” Javier Garcia #youtheffect

“Be hard with the problem and soft with the person. How do we help youth overcome fear and build trust?” Alberto Vollmer #youtheffect

“Understanding youth communication styles is crucial to engaging them. How should we communicate with teenagers?” Nancy Lublin #youtheffect

I enjoyed the discussion this week on the prospects of the economy on a global, national and local levels. (Find overheads and other materials here: Economic Outlook 2011 | Greater Phoenix Chamber of Commerce).

In my piece I discussed economic forecasts by the IMF that place China and India as the motors of world economic growth for years to come.  ASEAN-5 countries too are growing at impressive rates and they too account for a major share of world populations (0.5 billion people altogether).  Africa is picking up its growth too, but even the projected 5-6% won’t be able to make a dent in current standards of living if current population growth continues its course (major investments need to occur in education, early childhood and maternal health as well as combating AIDS and malaria).

According to the WTO, ghlobal trade is growing at an impressive 25%, and it is already back to pre-crisis (January of 2008) levels. As far as foreign direct investment, the UN (UNCTAD) indicates that the declines in flows have bottomed out already (at 2005-06 levels approx.) and is already picking up momentum as well.

The UNCTAD latest poll shows increasing levels of optimism for the next couple of years both among investment promotion agencies (IPAs) as well as multinational corporations.  IPAs are targeting investments from the US, China, the EU and India more than any other region.  And multinationals continue to be focused on the BRICs as well as the US.

Economic trends are proving Goldman’s famous BRIC acronym right, but perhaps the order should have been different–CIBR, for China, India, Brazil and Russia–as this seems to be the ranking of preferences of investors as well as measures of competitiveness such as the recently released Global Competitiveness Report by the World Economic Forum.

In terms of risks, The Economist Intelligence Unit reports “sovereign default”, “deflationary spiral in the developed world”, “double-dip recession as stimulus fades”,  “new asset bubble bursts” and “a new wave of protectionism taking hold” at the top of the list in their latest poll.

While these are definite concerns to keep in mind, I’m much more worried about long-term potentially disastrous risks including climate change, population growth in the poorest regions in the world, and potential new food crises. In less than 10 days, the Clinton Global Initiative will provide an ideal scenario to exchange insights, connect minds and engage in new actions.

It’s official, The Oath Project website is out.  A couple of months ago, a foundation was created to try to bring together a web of until now loosely coordinated initiatives, which include the World Economic Forum Young Global Leaders Global Business Oath, the student-led initiative MBA Oath, and the Thunderbird Oath of Honor.

The Oath Project foundation starts up its activities with a small board (Profs. Rakesh Khurana, Nitin Nohria, and Robert Kaplan of Harvard and yours truly) and an international council of CEOs and thought leaders (still under construction).  The foundation is being managed by the Aspen Institute (Business and Society Program).  The first objective is to try to harmonize the text of the oath and to produce a version that all groups can feel comfortable with.  Second we want to support any group that wishes to join the movement and adopt the oath.  Third, we will try to share ideas as to how to bring the oath to live.

Last week in Davos I had the pleasure of moderating a session titled “Rethinking Business Ethics” which included, in addition to a few but mighty YGLs from South Africa, the UK, Israel, and the US, UN Global Compact Executive Director Georg Kell, Transparency International Chair Huguette Labelle, Monterrey Inst. of Technology President Rafael Rangel and Ecolab CEO Doug Baker.  During the session Georg Kell announced the support of the UNGC to the initiative.  The week before, the steering committee of the Principles of Responsible Management Education agreed in NY to also lend its support to the Oath Project.

In sum, the stars are beginning to align beautifully.  With the backing of the WEF Young Global Leaders, the UN Global Compact, the Aspen Institute, PRME, and the MBA Oath, the experiences of a few business schools, and the backing of thought leaders of the caliber of Khurana, Nohria, Kaplan, Matthew Bishop and WEF founder Prof. Klaus Schwab, we are on our way to transforming management into a true profession.  Join the movement!!

Matthew Bishop, NY editor of The Economist, conducts a powerful autopsy of the global financial crisis in his latest book (The Road from Ruin) and surveys the road out of the mess and towards a safer capitalism.

Bishop and Green argue that the efficient market hypothesis has been taken dangerously far and that we need a new form of capitalism grounded on a more sophisticated understanding of human behavior, an argument that seems to be gaining support (see my review of Justin Fox’ The Myth of the Rational Market).

Bishop and Green dedicate a chapter to the idea of a Hippocratic Oath for business managers (with a direct reference to the Thunderbird experience) which they believe can contribute to the necessary professionalization of management and its commitment to the public interest.

In the presentation of the book in Davos last week (see inserted picture) Matthew Bishop recognized he had been initially skeptical about the power of an oath to change behavior, but that the current course of events make him believe that a change in values by those in charge of large corporations and financial institutions is long due, and that a professional code of conduct embedded in business schools and perhaps eventually in professional associations, could contribute to such change.

How Does Change Happen?
by Jennifer Corriero

How does change happen?
This is perhaps one of those eternal questions
that carries both simplicity
and depths of complexity
juxtaposed in a tension
so bright and dark that
emotions explode and identities blur.

Is your belief defined by your role
or is your role defined by your belief?

How does change happen?

POLICY says the policy maker
MARKETS says the business manager
MASS MOBILIZATION says the organizer

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This interview on the responsibilities of business and management and the business oath was aired by CNBC-India from Davos.  Watch video here.

Queen Rania of Jordan (and member of YGL Foundation board): “The saddest thing is not death. It’s when your dreams die when you are alive.”

Muhammad Yunnus, Nobel Peace Prize winner: There are two paths for an entrepreneur, one of profits, one of social change. You need to pick one or the other.

Georg Kell, United Nations Global Compact director: The world needs business leaders committed to creating real sustainable value.

Bill Gates to Young Global Leaders: Frame your cause in terms of solutions, not hopeless problems, if you want to recruit the support of others.

Bill Gates to Young Global Leaders: Economic development needs not only more and better entrepreneurs, but also more and better scientists and bureaucrats. In fact, if you ask me, in some of the poorest parts of the world, the latter would be the priority.

Bill Gates to Young Global Leaders: The crisis was the result of excesses by the rich. Let’s not now reduce budget deficits on the backs of the poor.

Bill Clinton to Young Global Leaders: Take criticism seriously, but not personally.

Bill Clinton to young global leaders:  The world is suffering; the world does not trust the elites.

Larry Summers: Prosperity in the developing world does not come at the expense of the US. The world economy is not a zero-sum game.

Larry Summers: We are in a statistical recovery but a human recession.

Larry Summers: Banks should not be allowed to use federally insured funds to make proprietary speculative bets that do not serve any customer.

Eric Schmidt of Google: We don’t want to be part of Chinese censorship, but we don’t want to leave China.

Spain’s premier Zapatero: The fatalist claims about the euro have always gotten it wrong. Nobody will leave the euro zone. If anything, new nations will join.

Zapatero: Spain will take action to balance its budget and come out of the crisis, but never at the expense of social cohesion.

Zapatero: The cost of combating climate change will be compensated by advances in innovation and technology.

Javier García Martínez (Spain), in reference to Zapatero´s comment: Then why are we reducing the national R&D budget?

Mexican president Calderón:  If your plane was about to crash because the pilot had a heart attack, would you try to negotiate a solution by consensus? That’s exactly what we did in Copenhaguen … the passengers from business class and coach are still blaming one another while the plane is going down.

Calderón:  If you don’t like politicians, become one.

Matthew Bishop, editor of The Economist and author of The Road from Ruin: At first I as skeptical about the idea of a “Hippocratic Oath” for business leaders. I now think it could be part of the solution.

Richard Edelman: Most people in the developed world don’t trust banks will do what is right.

Efrat Peled (Israel) to Richard Edelman: To regain trust, let’s commit to human values, to personal responsibility, and endorse the Global Business Oath.

France’s President Sarkozy:  Markets should be at the service of man, not the other way around. Capitalism is the means not the end.

World Economic Forum President Klaus Schwab: I’m not optimistic about the sate of the world … Davos will be a difficult meeting.

I’ve been too busy to be able to blog in English and Spanish… and so far my reports in Spanish are winning thanks to the help of Paz Álvarez… here’s the link to my blog in Cinco Días: CincoDías.com: Davos 2010.  Three days almost down, two to go.  I’ve never run a marathon, but I’m sure it must feel like this…

I woke up on a plane landing in Geneva to the news that Thunderbird has been once again recognized by the Financial Times as the best school in the world for International Business. To top it off, Thunderbird was also recognized amongst the top 10 in the social responsibility category. Not bad to be recognized for the two areas that are most central to Thunderbird’s mission “to educate global leaders who create sustainable prosperity worldwide.” Congratulations T-Birds!
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