World Economic Forum Annual Meeting 2006

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Annual Meeting 2006

The Creative Imperative

Davos, Switzerland 25-29 January

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Preface 3

Foreword 4

The Emergence of China and India 7

The Changing Economic Landscape 10

New Mindsets and Changing Attitudes 14

Creating Future Jobs 16

Regional Identities and Struggles 18

Responding to Global Challenges 20

The Creative Imperative – Responses 23

Acknowledgements 25

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Contents

World Economic Forum Annual Meeting 2006

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Preface


The World Economic Forum Annual Meeting 2006 offered participants a great opportunity tobetter understand those issues influencing society and business over the year ahead – andbeyond.

Starting from the premise that the world community is at a turning point given the pace ofchange, the global nature of the challenges we face and the need for new responses, thetheme “The Creative Imperative” provided this Annual Meeting with a solutions-drivenimpetus.

Participants discussed how the assumptions, tools and frameworks that business,government and civil society leaders have employed to make decisions over the past decadesnow appear inadequate. Be it to address income disparities, climate change, job creation orto build design strategy in organizations, discussions centred on how leaders and theirinstitutions can adopt more collaborative approaches to resolving issues – and the need toimprove the capacity to adapt to a new emerging environment. Moreover, it was agreed thatto successfully meet the challenges we face will require greater emphasis on humanimagination, innovation and creativity.

Once again, the Meeting drew leaders from business, government, international institutions,non-governmental organizations, universities and other communities. This year’s Meeting alsosaw valuable and innovative contributions from a strong contingent of Young Global Leaders.Together with our Members and Partners, we look forward to continuing to drive the GlobalAgenda forward in a creative and constructive fashion, taking up the findings from Davos inour regional meetings, through Forum initiatives and industry activities over the coming year.

Klaus SchwabFounder and Executive Chairman

The Forum would once again like to take this opportunity to thank the Annual MeetingCo-Chairs, each of whom provided invaluable support to the proceedings, bringing adistinguished background in business and public service to the discussions. They were:

Mukesh D. Ambani, Chairman, Reliance Industries Limited, IndiaPeter Brabeck-Letmathe, Chairman and Chief Executive Officer, Nestlé, Switzerland;Member of the Foundation Board of the World Economic ForumSir Martin Sorrell, Group Chief Executive, WPP, United KingdomLawrence H. Summers, President, Harvard University, USA

The Emergence of China and India

“The story has moved

beyond GDP growth rates…

the emergence of China and

India gives the world an

opportunity to experiment

and make sure that there is

equitable wealth

generation.”

Mukesh D. Ambani, Chairman

and Managing Director,

Reliance Industries Limited

These two verydifferent, yet rapidly

growing countries face enormous challenges asthey restructure and integrate their economies intothe global system. For China to continue to grow itmust expand domestic demand, reduce its relianceon exports and foreign direct investment for growthand further reform financial systems so consumerscan spend some of their savings and privately heldbusinesses can finance their growth. Consequently,the government will need to find a balance betweenstructural reforms, social equity and statist control.India continues to face poor infrastructure,deregulation and bureaucratic corruption. It may bethe “fastest growing free market democracy” theworld has ever known, but its leadership mustrespond rapidly to create jobs and reduce incomedisparities.

The Changing Economic Landscape

“Two things move the world, and

two things move economies: hope

and fear. In the short run in financial

markets I fear that we have too

much hope and too little fear.”

Lawrence H. Summers, President,

Harvard University

Given US influence on theglobal economy, its currentaccount deficit of 5.7% ofGDP in 2004 or US$ 666billion, continues to concernpolicy-makers in Washington DC and abroad.China’s economy is still too small to counter apossible US slowdown, and Europe and Japan,while perhaps improving, are currently too slow-growing to drive the global economy forward.Moreover, the major economies are struggling tokeep fiscal promises as their pension and healthcarebills grow. Inequities in trade and increasedcompetition for natural resources mean risk is rising– especially to the environment. While the worldeconomy has proven resilient enough to absorb asustained US$ 60 a barrel for oil, participants werequick to agree, if prices rise further and stay high,the effects will hurt.

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Foreword – The Creative Imperative


“We need to remove obstacles. We have to open the windows; we have to breathe deeply the

fresh air. And we have to seize the opportunities.”

Angela Merkel, Federal Chancellor of Germany

The confluence of mood and world events, made discussions at this year’s AnnualMeeting even more focused than usual. With over 240 sessions covering eight sub-themes and involving leaders from business, government, internationalorganizations and many other communities, participants sought to apply freshthinking to pressing global challenges.

The eight sub-themes of the Annual Meeting 2006 comprised five challenges andthree responses. The challenges include the Emergence of China and India, theChallenging Economic Landscape, New Mindsets and Changing Attitudes, CreatingFuture Jobs, and Regional Identities and Struggles. The responses include BuildingTrust in Public and Private Institutions, Effective Leadership in Managing GlobalRisks and Creativity, Design Strategy. In this foreword, we highlight key messagesemerging from participants on these eight sub-themes. Following this, we furtherdelve into each theme concerning each of the five challenges and then separatelyconsider the three responses.

New Mindsets and Changing Attitudes

“I have been seeking to

change … the mindset

that international

relations are nothing

more than relations

between states, and the

United Nations is little

more than a trade union

for governments.”

Kofi Annan, Secretary-

General, United Nations

The 21st century willbe about managing the implications of ashrinking yet more fragmented and complexworld. Individual states have less influence thanin the past and are subject to the wider interestsof regional or economic groupings. Institutionalframeworks designed to respond to cold warthreats are not appropriate to deal with globalwarming, international terrorism or povertyreduction. Leaders themselves will need to learnor re-learn skills if they are to drive organizationsto innovate and adopt new ideas. For policy-makers in the developed and developing worldthe challenge will be to create educationalcurricula that will provide today’s youth with thetools they will need tomorrow.

Creating Future Jobs

“Cities like Shanghai are

saying, ‘We need 20,000

experts right now and if

you can find them abroad,

we’ll give them work

permits’. They are doing

the first – that I’ve seen

worldwide – rigorous

forecasting of skill

requirements and …

channelling people into the

right vocational skill lines

for future requirements.”

David Arkless, Executive Board Member, Manpower

The challenge for many countries is not onlywhat new jobs they create, but also how thesejobs translate into livelihoods. And with the totalglobal workforce having doubled over the lastfive years, pressure on wages is likely tocontinue. So where are the jobs of the future?With fiscal budgets already stretched, they areunlikely to come from the public sector. Butpolicy-makers can play an important role inproviding the environment for the private sectorto create jobs. More generally, both developedand developing countries will need to re-examineeducation strategies to build the skills necessaryfor the future.

Regional Identities and Struggles

“The challenge that has

dominated the headlines

is … a minority group of

extremist Muslims who

have taken upon

themselves to distort

Islam in order to justify

violent action… And I

think this has led the

Muslim world to a very

critical crossroads of

self-evaluation and self-

definition and to really

look at what it is that we stand for. And this has led to a

reaffirmation of the basic principles of Islam.”

H.M. Queen Rania of the Hashemite Kingdom of Jordan

Closing regional income gaps will require regionalcooperation, coordination and compromise.Trade is key but targeted investment ininfrastructure, education and easier access tocapital are also important concerns. But, withoutgeopolitical stability, regional cooperation effortswill be hampered. The Hamas election victorysparked reactions from many, though some sawthis as a moment to trigger change. However,Iran, whose absence from the meeting served toaccentuate the gravity of the current situation,drew most attention. Experts warned that,whatever the outcome, the consequences forthe region and the international community willbe significant.

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And from Where Will Responses Come?

… Through Building Trust in Public and PrivateInstitutions

“The unfortunate thing is

that companies haven’t

done a good job of building

the [public’s] trust by

managing themselves in a

positive way.”

Michael E. Porter, Bishop

William Lawrence University

Professor, Harvard Business

School

Evidence shows publicdisenchantment and

mistrust of institutions and business is growing. Inthe developing world, corruption and inefficiencythreaten to overwhelm trust. In industrial countries,economic change spurs fears of a broken socialcontract. If not addressed through truly collaborativesolutions, global leaders face a potential politicalbacklash.

… Through Effective Leadership in ManagingGlobal Risks

“The basic ingredient of a

leader, I personally feel, is

that he should never panic…

whatever the problems,

whatever the

circumstances…”

Pervez Musharraf, President of

Pakistan

In a globalized world,risks cannot be dealtwith in isolation.Despite increased

attention and some success in mitigating, if notpreventing calamity, new risk frameworks are still intheir infancy. Recent natural disasters in Asia or theUS and public concern about pandemics, arefurther proof that today’s international institutionsand frameworks are not designed to respond to thenature, or the frequency, of the risks that lie ahead.What is clear is that the way in which organizationsmitigate, manage and respond to risk is a source ofdifferentiation.

“Do we need to worry? Of

course we need to worry ...

We know that terrorists are

highly sophisticated and are

interested in acquiring

nuclear weapons or nuclear

material ... What you have to

do is simply to cross your

fingers and prioritize.”

Mohamed M. ElBaradei, Director-

General, International Atomic

Energy Agency

… Through Innovation, Creativity and DesignStrategy

“Today, if you don’t innovate,

you’re just going to die.”

Barry S. Sternlicht, Chairman and

Chief Executive Officer, Starwood

Capital Group

Finally, the frameworksand assumptions uponwhich leaders inbusiness andgovernment have longdepended to makedecisions are no longeradequate. The economic and political context inwhich businesses and government institutions seekto compete or otherwise serve their constituentshas fundamentally altered; new models, new leadersand new mindsets are necessary. As the worldreacts to a new emerging architecture and creativityincreasingly drives the economy, tomorrow’s leadingcompanies and institutions will be those who seizethe courage and capability to adapt.

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China and India are at inflection points in theirdevelopment requiring them to sustain economicdevelopment, in particular to manage naturalresource consumption and environmentaldegradation.

• China is focusing more on stimulating domesticdemand and reducing its reliance on exportsand foreign direct investment to drive growth.

• India must deal with structural problems such aspoor infrastructure, deregulation andbureaucratic tangles that could hamper itsambitions to achieve growth at par with China.

• Retail and manufacturing sectors are in need ofattention.

• Failure to address obstacles to sustainability,stability and global integration will not only setChina and India back but will also aggravateglobal imbalances.

That China and India have emerged as drivers ofglobal growth is nothing new. These economieseach with one-billion-plus populations are set togrow by over 6% and 8% a year respectively forthe near to medium term. China is already anintegral part of the global supply chain; India hasbecome a dominant player in outsourcing services.

Participants went beyond conventional wisdom toconsider long-term problems for China and Indiathat require innovative solutions, namely the qualityand sustainability of growth models, creating jobs,maintaining stability, eradicating corruption andbetter integrating into the global system.

These issues are closely connected. Betterintegration with the rest of the world will enableboth to achieve more balanced, diversified growthand transform them into more efficient economies,more inclusive societies, and more responsibleand responsive members of the internationalcommunity. Adopting sustainable developmentpolicies to promote social equity, a cleanerenvironment and economic stability will naturallydeepen their integration with the global economy.“China cannot achieve development in isolation ofthe rest of the world, and the world needs Chinafor development,” said China’s Vice-Premier ZengPeiyan. His statement could equally apply to India.

Comparing China and India, however, pits applesagainst oranges. Yes, they have similarities, butthere are even more crucial differences that arewidely recognized – the makeup of theireconomies; depth of integration with global supplychains; share of global trade, notably exports (seeFigure 1); and workforce skill levels, not to mentionobvious and significant divergences in their politicalsystem, rule of law, infrastructure and level ofdevelopment.

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“China cannot achievedevelopment in isolation ofthe rest of the world, andthe world needs China fordevelopment.”

Zeng PeiyanVice-Premier of the People’sRepublic of China

8World Economic Forum Annual Meeting 2006

In China, domestic consumption must increase;China must lower its reliance on exports andforeign direct investment (FDI) to drive growth.Chinese officials including Vice-Premier Zengemphasized that the new five-year plan to beapproved in March should set a “moderate”growth target of 8% to allow for greater focus onsocial programmes and initiatives for sustainabledevelopment.

India’s delegation delivered its own starkmessage: While India has arrived on the worldstage, it has a raft of urgent problems to tackle,including poor infrastructure, widespread povertyand widening income disparities particularlybetween urban and rural areas, limitedmanufacturing capabilities and deficiencies ineducation. The self-styled “fastest growing freemarket democracy in the world” is proving thatpluralism and growth are compatible.“Democracy is going to be a source ofcompetitive advantage for us,” predicted NandanM. Nilekani, President, Chief Executive Officerand Managing Director, Infosys Technologies.Indian Minister of Commerce and Industry KamalNath added: “As the world’s perception of Indiachanges, India’s perception of itself changes.The Indian electorate is realizing more and morethat a more liberalized economy is what is drivinggrowth.”

The complacent and fearless may cling to one-dimensional high-growth stories. But it is time totake in the bigger picture. The tricky shifts thatChina and India are trying to pull off as theyimplement complex reforms will prove morepainful than anything they have so far achieved.Turning an economy driven by exports and FDIinto a consumption-led one cannot be easy for asociety still nominally steeped in central planning.Moreover, China must create a system ofrationally allocating finance (i.e. reform thebanking system) so long constrained by politicalinterference. As Morgan Stanley Chief EconomistStephen Roach said, “switching from aninvestment-led economy to a consumer-led oneis more art than science. A consumer culture isthe DNA of market-based capitalism and this isnot in the experience set of China’smacroeconomic managers.” While China must balance bold structuralreforms with statist controls to avoid destabilizingsocial tensions, India inches forward gingerly, itsrevolutionary reform ambitions tempered by amuch admired, yet constraining devotion todemocracy and social heritage. Bridgingsignificant gaps of poverty, empowering womenthrough education and addressing infrastructuredeficiency are enormous tasks that lie ahead.


Figure 1: China and India Exports to the Rest of the World

Source: Thomson Datastream

US$ TN US$ TN

All this suggests that China and India could eachhit a wall, forcing them to scramble to generatenew models of growth. And in the case of China,we need no reminders that not a single countryin the post-World War II period has undertakenbanking reform the likes of which China isattempting absent a significant financial crisis.There are many plausible negative scenarios:rising protectionism stemming fromdisillusionment with multilateral tradenegotiations, social tensions resulting from risingexpectations and uneven development, disputeswith rivals over natural resources, diplomaticfriction over ties to potentially destabilizingregimes such as Iran, and falling FDI due tofrustration with the shaky rule of law and thinprofit margins in China or India’s infrastructuredeficiencies and bureaucratic bottlenecks.

Business must consider the implications of thetransformations underway and adopt riskstrategies accordingly. At the same time,Chinese companies are venturing overseas toacquire management expertise, technology andbrand-building savvy to apply them at home.Boardrooms in Europe and the US are having toconsider new potential emerging competition.

Chinese and, to a lesser extent, Indian firms arebuilding resource supply networks and strategicbusiness relationships in Africa, Latin Americaand other emerging markets. Global companiesthat source products from China and India arebeginning to apply environmental best practicesstandards to suppliers. Companies are bolsteringthe rule of law by asserting their commercial

rights including intellectual property protectionthrough available legal channels, adhering totransparent and ethical conduct, and requiringthe same of partners and contractors. Theleaderships of both countries are struggling tostay far enough ahead on the reform curve toprevent human resources and infrastructureconstraints from damaging critical labour costadvantages.

China and India’s developments are unparalleledtransitions with profound consequences andopportunities for the world at large. Conditionschange quickly; objectives once consideredincongruent can swiftly turn into complements.Environmental protection and economic growthare a prime example. As US architect WilliamMcDonough, Chairman, William McDonough +Partners Architecture and Community Design /MBDC, who is designing cutting edge eco-friendly cities in China, concluded: “The Chinesehave the ability to go to scale with velocity.”While India may move more slowly, its impact onthe global economy is likely to be as great asChina’s, particularly as life sciences and otherservices are outsourced to India. As manyparticipants put it, as go China and India, sogoes the world.

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“As the world’s perceptionof India changes, India’sperception of itselfchanges. The Indianelectorate is realizing moreand more that a moreliberalized economy iswhat is driving growth.”

Kamal NathMinister of Commerce andIndustry of India

• The global economy is beset with inefficienciesand imbalances that threaten to derail growthand halt efforts to bring prosperity to theworld’s poorest corners.

• Massive US deficits and yawning Asiansurpluses, inequities in trade and theincreasingly heated race for natural resourcespose risks.

• The brunt of these imbalances, however, isbeing borne by the environment, which loomsabove all else as a risk to the well-being of theplanet.

No one drills for oil or assembles iPods at theSouth Pole. But evidence that the globaleconomy is dangerously out of kilter can befound swimming under the ice nearby. There inthe frigid Antarctic seawater, tiny shrimp-likecrustaceans – called krill – eke out an existenceeating plankton and algae until they are eaten byseabirds, whales and other animals. Globalwarming is melting polar ice and reducing thekrill’s habitat, causing by some estimates a 90%drop in krill populations in the past 20 years. Bad

news for the penguins and, it turns out, forhumans too: thanks to overfishing in the world’soceans, mankind has moved right down to thebottom of the food chain to harvest krillalongside the seals.

The same inefficiencies and imbalances thateconomists say imperil trade and markets arehastening the depletion of natural resources andenvironmental destruction. These imbalanceshave so far not derailed global economic growth,but the slow destruction of our own habitatbelies the conclusion that the situation issustainable.

The most fundamental imbalance has long beenthe disparity of wealth between developednations and undeveloped nations. This disparityis being slowly reduced now in what some callthe most dramatic shift of wealth ever witnessed.While erosion of Socialist orthodoxy catalysedthe re-emergence of China and India, theirimpact stems largely from their massive ranks ofyoung workers, which have helped double theglobal workforce since 1990. But discriminationagainst women in both nations has helped give

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rise to vast gender disparities that are deepeningemerging shortages of skilled labour. “In thedeveloping world, there are 100 million women‘missing’,” said Lawrence H. Summers,President, Harvard University, USA; Co-Chair ofthe Annual Meeting 2006. The developedeconomies, by contrast, face increasingly aged,unproductive populations.

Persistently high demand for consumer productsin the US and Europe has enabled developingeconomies such as China to use manufacturedexports as an engine of growth. The emergingskilled labour shortages in China and India havelargely dispelled fears that they would exportdeflation. Instead, a potentially precipitousparadox has emerged in which the developingnations of Asia finance consumption of theirexports by the world’s richest nation.

Asian purchases of US government bondsenable the US to run an ever-widening tradedeficit, consuming more than is financially sound,without depreciation of the dollar or significantlyhigher inflation. US debt is rising close to 50% ofGDP (See Figure 2), with US savings rates attheir lowest since the Great Depression.

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Min Zhu, Executive Assistant President, Bank of China; Laura D. Tyson, Dean,London Business School; Peter Gumbel, Senior Writer, Business, TimeMagazine; Michael J. Elliott, Editor, Time International; Stephen S. Roach, ChiefEconomist, Morgan Stanley; and Jacob A. Frenkel, Vice-Chairman, AmericanInternational Group (AIG), during the session “Update 2006: Global Economy”

Figure 2: US Debt and Budget Balance

Source: Thomson Datastream

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This artificial support for US deficits fuels asset-price inflation, particularly housing prices. UShousing prices and those around the globe haverisen sharply, by 85% since 1997 (see Figure 3)leading some commentators to believe this is thelargest bubble in history.

Economists say rising home values are largelybehind the illusion of wealth that inspires USconsumers to spend more than they earn. Manypredict that housing prices may stop rising soon,which could chill US consumer demand forAsian exports.

With the dollar artificially overvalued and globalinflation kept low, the world is flush with cash.Interest rates paid by borrowers onceconsidered relatively risky compared togovernments are historically low, making itharder for investors to earn the kind of returnsneeded to finance the world’s growing pensionliabilities.

Figure 3: Global House Price Rises (1997-2005)

Source: The Economist

Per

cent

ages

Growing trade imbalances also increase the riskthat politicians will grasp for protectionistsolutions and halt efforts to make trade fairerthrough the World Trade Organization. Tariffsdesigned to protect agriculture in Europe and theUS hinder the ability of developing nations toexport their way out of poverty. But not all suchbarriers are from developed countries. “Considerthe dynamic that 73% of tariffs paid bydeveloping countries are paid to otherdeveloping countries,” said Peter Mandelson,Commissioner, Trade, European Commission,Brussels.

Aside from feeding extremism, such inequities inglobal trade distort the cost of resources. Tariffsand subsidies encourage the wasteful use ofland, water and oil.

Oil, and our over-reliance on it as our principlesource of energy, remains a problem. With Chinaand India leading a new surge in demand, theglobal economy is susceptible to shocks such asthose triggered by the terrorist attack on gaspipelines in Georgia, or Hurricane Katrina.

Policy-makers need to take steps to redressthese imbalances. In particular, prices for goodsand services should reflect their real cost, notonly in terms of labour and capital, but also theirimpact on natural resources and theenvironment. “It’s actually an economicnecessity,” said William J. Clinton, Founder,William Jefferson Clinton Foundation; Presidentof the United States (1993-2001). “If we’re goingto have enough capacity on earth to give Chinaand India and other countries the growth whichthey rightfully claim is theirs, and revive theAmerican economy, and provide an opportunityfor Europe to continue to grow and prosper, Ithink we have to deal with [preserving theenvironment].”

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“Consider the dynamicthat 73% of tariffs paidby developing countriesare paid to otherdeveloping countries.”

Peter MandelsonCommissioner, Trade,European Commission

”It’s actually an economicnecessity, if we’re going tohave enough capacity onearth to give China andIndia and other countriesthe growth which theyrightfully claim is theirs.”

William J. ClintonFounder, William JeffersonClinton Foundation; Presidentof the United States (1993-2001)

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“Adaptation of technology,along with economicgrowth and education, isone of the essentialcomponents ofmodernism.”

Hamid KarzaiPresident of Afghanistan

• With technology advancing rapidly andglobalization a fact of life, “new mindsets”inevitably collide with old ways of thinking.Government, business and civil society all play arole in ensuring that these new mindsets bring thegreatest good to the greatest number of people.

• The most critical goals involve fortifying andexpanding educational systems to spread thebenefits of growth and to stem extremism,harnessing new technologies to solve oldproblems – particularly poverty, unaccountability ofpublic and private sector officials, and healthcrises – and creating constructive synergybetween governments, NGOs and businesses.

Expanding education to benefit the largest numberof people remains a critical challenge. Participantsvoted a “global educational framework that fostersinclusivity” – a priority for several well-establishedreasons. For example, educated societies tend tobe more productive, rich and happy. As JiroNemoto, Honorary Chairman, Nippon YusenKabushiki Kaisha, Japan put it, “Humandevelopment must be the foundation for economicdevelopment.” Educated societies also tend to behealthier; combating ignorance – in the form oftesting and information on prevention – is anessential weapon in the fight against diseases suchas HIV/AIDS.

However, participants also recognized that intoday’s society, education is important to tacklesome of the world’s more pressing issues, likeextremism. For example, many understand thatgenerally exchanging knowledge prevents ignoranceand alienation. Nations with significant immigrantpopulations or large ethnic, religious or linguisticsub-communities need proactive education

programmes to encourage tolerance and diversityand prevent growing extremism that can lead toterrorism. Besides, economies that aim for a fullyfunctioning modern democracy will need to fostercritical thinking, knowledge of the market economy,gender acceptance and racial diversity. Morefocused education programmes will make suchattributes more likely, especially if combined with theintelligent use of technology.

“Adaptation of technology, along with economicgrowth and education, is one of the essentialcomponents of modernism”, said Hamid Karzai,President of Afghanistan. But new technology alsoposes critical challenges for businesses andgovernments alike. Will these new technologiesadvance accountability, destroy privacy, or both?How will old brands weather the storm of newmedia?

In the fields of marketing and news media, theInternet has been nothing short of a sea change.Consumers of news, an essential pillar of a

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Christopher Murray, Director, Global Health Initiative, Harvard University; Jens Stoltenberg, Prime Minister of Norway; William H. Gates III,Chairman and Chief Software Architect, Microsoft Corporation; Gordon Brown, Chancellor of the Exchequer of the United Kingdom;Olusegun Obasanjo, President of Nigeria; Fareed Zakaria, Editor, Newsweek International; Giulio Tremonti, Vice-President of the Councilof Ministers and Minister of Economy and Finance of Italy, during the session “Not Gone, but Almost Forgotten”

functioning democracy, increasingly rely on blogs oronline versions of print newspapers. Many in themedia expressed concern that such trends wouldmean the erosion of responsible journalism, butpublishers such as Arthur Sulzberger Jr, Chairmanand Publisher, The New York Times, USA,expressed guarded optimism “that the need anddesire for quality, trustworthy journalism would keepthe old media brands afloat.” But change isundeniable. “The consumer has been empowered,”said Frederick Kempe, Assistant Managing Editorand Columnist, Wall Street Journal, USA, “theInternet is a democratizing force.”

Privacy issues such as ID theft and governmentintrusion loom large, and striking the right balancebetween regulation and freedom will be a criticalchallenge in the next decade. But with newproblems also comes new opportunities.Technology, like education, is vital to the war onterror, as it can facilitate the collection and sharingof information among nations and internationalsecurity organizations.

Breaking down the barriers between governments,NGOs and businesses holds the potential to fostercooperation and growth within and betweennations. “My objective has been to persuade boththe member states and my colleagues in theSecretariat that the United Nations needs to engagenot only with governments, but with people,” saidKofi Annan, Secretary-General, United Nations, NewYork.

How private-public engagements occur remains anessential question. Generally, business is better thangovernment at changing the behaviour ofindividuals. “Where there is opportunity for moreprofit,” said Bill Owens, Governor of Colorado, USA,“companies are increasingly moving towards what isgood for the public.” The role of government inbalancing business interests with those of the nationis a tendentious issue as was demonstrated by theCNOOC Limited bid to acquire Unocal Corporation,and the American political climate which sunk thedeal.

• Hundreds of millions of new jobs will beneeded over the next 20 years to avoidmassive increases in global unemployment.

• This requires new attitudes towards supportinginnovation, entrepreneurship, risk taking andencouraging creativity.

• The ability to start a business will need to bemade much simpler, quicker and cheaper inmany countries and the benefits ofentrepreneurship widely publicized and taughtformally.

• Numerous educational systems will need to berestructured if they are to meet future skillrequirements and must include broad-basedskills so that future workers find it far easier toswitch between different occupations.

A time bomb relating to work is ticking.Registered world unemployment reached 187.7million in 2004, according to the InternationalLabour Organization. Over 80 million new jobswill be needed by 2020 to keep the Arab worldalone at its current level of 16% unemployment.The entry of so many workers into the globalmarket economy will have a dramatic effect onthe worldwide ratio of labour to capital with aconsequent downward pressure on wages. Thissituation can be expected to last for at least 25years and will require fresh, collaborative ideas toprovide solutions.

Business in the developed and developing worldcould not face more divergent labour markets.“In developed countries, the question is notwhere the jobs will come from but where will theworkers come from,” said Donald J. Johnston,Secretary-General, Organisation for EconomicCo-operation and Development (OECD), Paris.Min Zhu, Executive Assistant President, Bank ofChina, People’s Republic of China, has no suchproblem: “We have to understand that labour isa resource not a burden. So it is labour-intensivemanufacturing which makes China apowerhouse in the world with a 10% growthrate.”

In developed countries with ageing populationsthere will clearly be a boom in healthcareemployment. Companies which understand theadded consequences, such as a sharp boost inthe number of people who are time rich andcash poor, will be able to create further jobs.“The implications of people getting older meansa complete shift in consumerism as people willbuy differently,” insisted Sir Digby Jones,Director-General, Confederation of BritishIndustry (CBI), United Kingdom. “Where they go,the need to heat their homes more, and they willwant to pay lower prices.”

Businesses in the Middle East, however, will onlybe able to start creating the work needed bytens of millions of Arab youths if, at the veryleast, there is a far greater regional openness inthe trade of goods, services and labour. AhmedMahmoud Nazif, Prime Minister of Egypt, for

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“The focus is on trainingpeople to be adaptable,flexible and able tochange quickly with thetimes, because it isimpossible to predict whatwe will need in thefuture.”

Nandan M. NilekaniPresident, Chief ExecutiveOfficer and Managing Director,Infosys Technologies

“In my 30 yearsexperience I have neverseen such an incredibleshortage of talentedpeople – whether it is inGermany, Brazil, China,India or Kansas.”

Samuel A. DiPiazza JrGlobal Chief Executive Officer,PricewaterhouseCoopers

example, needs to create 750,000 jobs a year tokeep unemployment at the same levels. “Part ofthe answer is related to growth, particularly intourism which is important to Egypt and createsmore jobs than industry.”

For much of commerce, the way to create newjobs is globalization, although this is beingrestricted by skill shortages at the white collarlevel. “In my 30 years experience I have neverseen such an incredible shortage of talentedpeople – whether it is in Germany, Brazil, China,India or Kansas,” said Samuel A. DiPiazza Jr,Global Chief Executive Officer,PricewaterhouseCoopers, USA. “There is thiswar for talent and we are not just talking aboutthe top 5%. It is an issue even in countries withgood population growth and education.”

These skill shortages need to be tackled withincreased efforts by business to releaseunderutilized assets into the labour marketthrough improved childcare services, wageequality and greater education opportunities.”We do not have enough urgency aboutinnovation,” declared Ben J. Verwaayen, ChiefExecutive Officer, BT, United Kingdom, “not inthe R&D sense, but in terms of job creation,getting women involved, getting minoritiesinvolved.” The success of such initiatives canprovide further new opportunities foremployment as unpaid work becomes paidwork. “In Scandinavia so many of the workforceare now in employment that a lot of houseworkhas effectively become paid work as others arepaid to do it,” said Neil Kearney, GeneralSecretary, International Textile, Garment andLeather Workers’ Federation, Brussels.

Creating new jobs that are needed on themassive scale means that most will have tocome from the private sector and will require afundamental change in attitude to business andpublic sector support for innovation,entrepreneurship and risk taking. Indices ofcompetitiveness, which look at the cost anddifficulties of starting a business in variouscountries, should be expanded and used topraise the best and “name and shame” theworst nations while examining in depth each

country’s regulations, the availability of funding,employment, taxation, and the time and cost ofstarting a new business. Crucially policy-makersshould also emphasize the importance ofchanging mindsets in those countries whereentrepreneurial failure is consideredunacceptable and which effectively disqualify risktakers from making further attempts.

Educational systems in many countries needoverhauling to overcome a fundamentalmismatch between the skills taught and thefuture skills needed. This disparity is increased indeveloped countries by students’ perceptions ofwhat constitute worthwhile occupations. “Wehave to persuade children that, in the future,getting a vocational degree will be as importantas getting a university qualification,” insistedDavid Arkless, Executive Board Member,Manpower, USA. “We need electricians,plumbers, infrastructure workers and higher-levelproduction workers. We have to make thesesorts of jobs, which make cities work, lookvaluable and feel valuable.”

At the same time, educational systems will needto become more broad-based so that peoplefind it easier to switch between jobs. “Trying toplan for specific shortages in the long term is notthat useful,” declared Jagdish Bhagwati,Professor, Columbia University, USA.“Uncertainty comes in no matter how hard youtry. You can only make broad statements like skillshortages will happen.” This is also the view ofNandan M. Nilekani, President, Chief ExecutiveOfficer and Managing Director, InfosysTechnologies, India, who finds that collegerecruits do not have the right skills. “We have ourown finishing school to get them ready for ourbusiness. The focus is on training people to beadaptable, flexible and able to change quicklywith the times, because it is impossible topredict what we will need in the future.”

Equally important is that educational systemsrecognize that 85% of job skills are not specificto a particular task but include work habits,project management, teamwork, communication,time management and punctuality.

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• Empowering poorer countries to close theincome gap with the rich, thus boosting theirpotential as consumer markets, is in the long-term interests of industrialized nations.Regional cooperation agreements, targetedinfrastructure investment, easier access tocapital and removing farm subsidies in thericher nations can help achieve this end.

• Iran’s nuclear ambitions are the biggestimmediate concern for the internationalcommunity in the Middle East region,overshadowing Iraq and the Israel-Palestineconflict despite the election victory of Hamas.While there is no consensus on whetherTehran really wants nuclear weaponry, high-pressure diplomacy is the only effective way tohandle the issue. A military attack would bedangerously counterproductive for the West.

Despite the fact that hundreds of millions havebeen lifted out of abject poverty over the pastdecades, income disparities between worldregions and within nations are growing. “Globalimbalances are deepening, and that has seriousconsequences for developing countries likeIndia,” warns Palaniappan Chidambaram,Minister of Finance of India. Yet, it is in the longerterm interests of the richer powers, and theirbusiness communities, to narrow the divide andhelp create populations of consumers within thepoorer countries rather than see armies of thedesperate surging across borders in the hope offinding a better life. “The integration of the four-fifths of the world that is poor with the one-fifththat is wealthy has the potential to be one of thetwo or three most important economicdevelopments of the past millennium, along withthe Renaissance and the Industrial Revolution,”

argued Lawrence H. Summers, President,Harvard University, USA; Co-Chair of the AnnualMeeting 2006.

Formal regional agreements on trade, likeNAFTA, and political-commercial pactsunderpinning groupings like the EU and ASEAN,have raised living standards in their memberstates. However, non-formal cooperationbetween countries through free movement ofcapital and goods are achieving similar ends.“Regionalism is the right way forward for themutually-beneficial advance of the statesinvolved, as the EU and ASEAN have showed,”said President Pervez Musharraf of Pakistan.

Helping Africa, and other poorer regions, to helpthemselves by developing infrastructure can beinspiring. “Making money and doing real coolstuff at the same time is a magical formula.Business needs to talk less and do more,”commented Hugh Grant, Chairman, Presidentand Chief Executive Officer, Monsanto Company,USA. “There are a billion people who cannot bebusiness consumers unless they are helped toclimb out of poverty,” argued Antony Burgmans,Chairman, Unilever, Netherlands. But asChidambaram warned, “Developed countriesmust show much more concern for the capitalrequirements of developing countries.”Certainly, business can more actively press majorgovernments to remove trade barriers withpoorer countries, and especially to remove farmsubsidies. Africa “can only grow when it isallowed to trade freely and openly and fairly. Thatmeans these trade-distorting subsidies must beremoved by 2010,” said Niall Fitzgerald,Chairman, Reuters, United Kingdom; Member ofthe Foundation Board of the World EconomicForum.

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“Right now, no oneknows if Iran is trying tocross the weaponsthreshold.”

Kenneth M. PollackDirector of Research, SabanCenter for Middle East Policy,The Brookings Institution

“Regionalism is the rightway forward for themutually-beneficialadvance of the statesinvolved, as the EU andASEAN have showed.”

Pervez MusharrafPresident of Pakistan

But the greatest will in the world to remove tradebarriers will fail if the global geopoliticalenvironment remains volatile. The West’s nuclearstand-off with Iran bears the seeds of a gravecrisis affecting much of the world. If Tehran haltsoil exports, or they are halted by Western militaryaction, prices will likely soar well beyond theircurrent highs and the repercussion on keyWestern economies, and global markets, will bedramatic.

The real aims of Iran’s nuclear programme areunclear. One view is that serious economicproblems and a rapidly growing population arepushing it towards diversifying its energyresources. Others think differently. “Right now,no one knows if Iran is trying to cross theweapons threshold,” said Kenneth M. Pollack,Director of Research, Saban Center for MiddleEast Policy, The Brookings Institution, USA. “Butit is prudent to believe that they are developing anuclear weapons capacity,” said Jack Straw,Secretary of State for Foreign andCommonwealth Affairs of the United Kingdom.“There is no threat (to Iran) from anyone in thatregion,” argued Saxby Chambliss, Senator fromGeorgia (Republican), USA. Motivation for anyweapon development could therefore only beoffensive.

There is consensus that the response should be“carrot-and-stick” diplomacy. However, the Westmay have to make more generous offers –including economic cooperation that involvesinvestment and trade – to persuade Tehran toplay ball. Richard N. Haass, President, Councilon Foreign Relations, USA, said: “I don’t see thatthere is enough on the (negotiating) table at themoment.”

Certainly, there is little enthusiasm for an attackon Iran’s nuclear centres. A common view is thatthis would spark a huge geopolitical crisis in theregion and far beyond, and only delay Iranianarms development while pushing the populationto more radical political positions.

The electoral victory by Hamas, seen as linked toIran and viewed officially as a terroristorganization by many Western governments,adds a further complicating factor. Should thereaction of the West be to isolate or engage?“We all have a difficult time managing risk. Welive in a polarized world in which the risks haveincreased colossally,” said 2005 Nobel PeacePrize winner Mohamed M. ElBaradei, Director-General, International Atomic Energy Agency,Vienna. “If you fix the Middle East, North Koreaand South Asia, you would fix 90% of ourproblems.”

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Jack Straw, Secretary of State for Foreign and Commonwealth Affairs of the United Kingdom; Barham Salih, Minister of Planning and DevelopmentCooperation of Iraq; Ahmed Chalabi, Deputy Prime Minister of Iraq; Robert B. Zoellick, US Deputy Secretary of State; Hajim Alhasani, President of theIraq National Assembly; John McCain, Senator from Arizona (Republican), USA; Sheikh Hamam Hammoudi, President, Constitutional Drafting Council,Iraq; and Amre Moussa, Secretary-General, League of Arab States, during the session “What Is at Stake in Iraq?”

Responding to the five challenges that were thefocus of the Annual Meeting 2006 will require globalpolicy-makers and stakeholders to developsolutions in three broad, interrelated areas:

Rebuilding trust in public and privateinstitutions: In virtually every region andcountry, opinion surveys reveal decliningpublic confidence in governments,corporations and multinationalorganizations.

Effective leadership in managingglobal risks: New mechanisms need toidentify and – where possible – mitigatethreats such as terrorism, environmentaldegradation, natural disaster andeconomic instability.

Innovation, creativity and designstrategy: The obsolescence of many20th century structures compels leadersto develop fresh concepts, newinstitutional models and more flexibleprocesses for serving diversepopulations.

While all three responses are crucial, the last onemay hold the key to the first two. Numeroussessions and workshops highlighted the need toreward innovation, encourage unconventionalthinking and promote cultural cross-fertilization inevery region and at every level of society.

Change – both sweeping and fundamental –appears to be the one constant as the world movesdeeper into the 21st century. Political, corporateand social leaders no longer have the option (if theyever did) of relying on inertia and habit to carry themthrough the currents of global integration. Theymust respond – often in real time – to powerfulforces that cut not just across national borders, butacross cultures, markets and technologies.

The Three Responses

Describing the specific policies required to managethese forces of change is a task of almost hopelesscomplexity. However, the agenda for this year’sAnnual Meeting reflected an assumption that globalleaders must articulate and implement policyresponses in three broad areas:

• Rebuilding trust in public and private institutions:There is growing awareness among elites andpublics alike that the institutions of the post-WorldWar II order – national governments, multinationalcorporations, international organizations – nolonger function well. In the developing world,corruption and inefficiency threaten to overwhelmtrust (and institutions) altogether. In the industrialcountries, economic change spurs fears of abroken social contract. Unless these trends arereversed, global leaders face the prospect of apolitical backlash that could wreck decades ofprosperity, integration and global accommodation.

• Effective leadership in managing global risks:Theory holds that as markets become moreflexible and barriers reduce, economic systemsgain stability. However, unwise policies orincomplete adjustments can produce unexpectedvolatility. Likewise, modern infrastructures offerunparalleled speed and convenience – but may bevulnerable to terrorism or natural disaster. Leadersmust improve early warning systems, and developbetter tools for defining, controlling and – not least– allocating risk.

• Innovation, creativity and design strategy: In a“flat” world – one approximating the textbookdefinition of market efficiency – constantinnovation is the only guarantee of competitiveadvantage. This applies as much to institutionalcultures and structures as to new technologiesand products. But the sources of innovation arenot well understood and financial markets areoften unprepared to reward long-term innovationstrategies as opposed to short-term gain. Thisposition requires leaders to experiment boldly withincentives and work life arrangements.

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Responding to Global Challenges


These key themes become vital whenconsidering the growing importance of theworld’s great cities as incubators for innovation,or creating new markets for pricing and tradinginsurance risks – including personal economicrisks such as unemployment or loss of income.This gives rise to growing awareness thatglobalization has reached a crossroads, one thatcould determine whether the integration processcontinues, or gives way to a new era of regionalfragmentation and conflict.

“But the process [of global integration] doesn’thave to be smooth. Along with integration weface the risk of disintegration – failed states,struggling middle classes caught in bindseverywhere. These forces are of equalimportance,” noted Lawrence H. Summers,President, Harvard University, USA; Co-Chair ofthe Annual Meeting 2006.

The Next Wave

Until now, globalization has been abouteconomic efficiency – expanding trade, slashinglabour costs and maximizing comparativeadvantage through the creation of globalproduction chains. These strategies, however,have reached the point of diminishing returnsand “knowledge” is rapidly becoming acommodity. Cost efficiencies are now easilyreplicable, meaning they provide no lastingadvantage. They have become a necessary, butnot sufficient, condition for success.

To avoid being trapped in a zero sum game,companies and societies alike will need to usetheir increased productivity to create newproducts, anticipate new needs, new markets,new technologies and – most of all – new jobs toreplace those that have been lost. Populationsthat until now have been excluded from theprogress of globalization – or made morevulnerable by it – will need to be brought into themainstream, in ways that respect their humandignity and worth. “We won’t have a creativeand flourishing world without bringing everyoneinto the global economy,” contended JacquelineNovogratz, Founder and Chief Executive Officer,Acumen Fund, USA.

However, such ambitions can only be realized ifexisting leadership institutions – the massivepublic and private bureaucracies inherited fromthe hierarchical 20th century – can be renovated.Here, too, though, progress is being made, albeitoften too slowly (see Figure 4). Daniel Vasella,Chairman and Chief Executive Officer, Novartis,Switzerland, noted the growing consensus in thecorporate world on the need for greatertransparency and accountability. Now businessleaders need to take that message to theiremployees, shareholders and customers. “Weneed to make an effort to communicate what wedo and how we do it,” he said.

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Figure 4: Trust in Institutions

Average of 14 Tracking countries - based on a global public opinion poll involving atotal of 20,791 interviews conducted between June and August 2005

Trust

Distrust

“But the process [of globalintegration] doesn’t have tobe smooth. Along withintegration we face the riskof disintegration – failedstates, struggling middleclasses caught in bindseverywhere. These forcesare of equal importance.”

Lawrence H. SummersPresident, Harvard University

A World of Opportunities

It would be a mistake, however, to view the nextphase simply in terms of risks and looming crises.Tremendous opportunities are also on the horizon –not least for the global business community. Forexample, the demand for environmentally-sensitive,energy-efficient products and services: While someanxiously watch the rise of China and foresee aresource catastrophe, architects, engineers andurban planners are already at work designing theChinese cities of tomorrow, featuring rooftop farms,sewage treatment plants that produce more energythan they consume and the construction of solarpower collectors on a massive scale. “We believe itis possible to create a virtuous cycle in both ourecological and our social systems,” said WilliamMcDonough, Chairman, William McDonough +Partners Architecture and Community Design /MBDC, USA.

Likewise, the problems of poverty andmarginalization, while formidable, are not deterringlocal leaders from inventing – or emulating –solutions. Sergio Fajardo Valderrama, Mayor ofMedellin, Columbia, explained how his city isdelivering educational and cultural services to thepoor, following trailblazing urban planning efforts inthe Brazilian city of Curitiba. Medellin, he noted,recently built five large cultural complexes on theoutskirts of the city, each combining a public library,an outdoor movie theatre and a public park. Thesecentres are accessible not only to city residents, but

also to inhabitants of the informal shanty towns thatsurround it. “We wanted the poor to see that wewere building the nicest public buildings in thepoorest neighbourhoods,” he explained. “Themessage we are trying to send is that there ishope.”

Can the creative imperative win the race with thespectres of political disintegration, economicdislocation and ecological collapse? Thinkers havebeen arguing the question at least since ThomasMalthus and David Ricardo debated the future ofthe industrial revolution. There is no guarantee thatmankind’s ingenuity will continue to trump its knackfor self-destructive behaviour. But given theinnovative thinking on display at this year’s AnnualMeeting, it still looks like the smart bet.

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This year at the Annual Meeting 2006,participants prioritized 11 questions during theBig Debate. They continued to gatherknowledge, opinions and data during 240sessions, including the CEO series, andculminated in a targeted workshop to considerthe priorities for the coming year. This vast array

of knowledge sharing through discussion helpedlaunch new initiatives and expanded currentones to continue addressing some of the world’smost pressing issues and further will help shapethe agenda for the Forum’s regional and industryevents during 2006.

23

The Creative Imperative – Responses


“... it's important for you, asbusiness leaders, to say wheredo you think the responsibilitylies? Perhaps the responsibilityfor education and training lieswith the government. Whatabout the responsibility forpensions and healthcare?What about the responsibilityof paying a living wage?”

Laura D. TysonDean, London Business School

“The Forum is here to help usto find out what the mainissues are and then it is up tous to act individually.”

Peter Brabeck-LetmatheChairman and Chief ExecutiveOfficer, Nestlé

The World Economic Forum Annual Meeting 2006closed with participants supporting the projectexpansions in health, education, hunger andpublic-private partnerships as well asrecommending broad action areas that private andpublic institutions should undertake.

1. Health Initiative launches global Stop TBcampaign

The Forum’s Global Health Initiative helpscompanies design workplace health programmesfor prevention and treatment of HIV/AIDS, TB andmalaria. Having reached over 10 million employeeswith such programmes, the initiative continues toexpand efforts to assist companies extendprogrammes throughout their supply chains,targeting rapidly growing economies like Chinaand India. During the Annual Meeting, the globalStop TB campaign was launched with US$ 1.2billion committed by core partners.

2. Global Education Initiative expands toPalestinian Territories and Egypt

The Global Education Initiative launchescollaborative public-private partnerships toimprove education systems. In Jordan, with thedirect support of the King and Queen, it hasengaged over 45 public and private partners totransform curricula, teaching and IT infrastructurefor 50,000 schoolchildren. The programme is nowunderway in Rajasthan, focusing on 100 girls’schools, and during the Annual Meeting work wasinitiated in the Palestinian Authority and Egypt.

3. Disaster relief platform formedFollowing the major natural disasters of 2005, theForum was asked to serve as a major platform forengaging private sector support for relief efforts,building on and expanding its Disaster ResourceNetwork through planning that took place at theAnnual Meeting.

4. New Hunger Initiative launchedUnder the leadership of the Forum’s food andbeverage company members, business and publicleaders developed a business-led action plan tohelp reduce hunger in Africa and discussed it withUN Secretary-General Kofi Annan. The group hasrecommended that the Forum serve as a platformfor putting this plan into action during 2006.

24

The Creative Imperative – Responses


Recommendations from the AnnualMeeting:

• Prepare for future jobs: Realign the globaleducation system to meet future demandfor skill sets, particularly in vocationaloccupations

• Restore balance in the global economy:Develop policies for greater savings in theUS and consumption-led growth in China

• Sustain growth in China and India: Buildsupport for business education andentrepreneurship

• Protect the environment through betterresource management: Expand watermanagement initiatives to address urbanand agricultural use, especially indeveloping markets

• Mitigate the impact of an increasingly fluidlabour market: Improve social securitywhen changing jobs

• Manage disruption: Develop models todesign, build and implement more quickly

Strategic PartnersABBAccel PartnersAccentureAMDApax PartnersAudiAvayaBain & CompanyBarclays BombardierBooz Allen HamiltonBTCACisco SystemsCitigroupThe Coca-Cola Company Credit SuisseDeloitte Deutsche BankDeutsche Post World NetDeutsche TelekomDubai HoldingEconomic Development

Board of BahrainErnst & YoungFluor CorporationGoldman SachsGoogleHPInfosys TechnologiesIntelInvestcorpJPMorgan Chase & Co.KPMGKudelski Group Lehman BrothersMcKinsey & Company ManpowerMarsh & McLennan

CompaniesMerck & Co.Merrill Lynch

Microsoft CorporationNakheelNASDAQNestléNew York Stock ExchangeNikePepsiCoPfizerPricewaterhouseCoopersQatar AirwaysReliance IndustriesSaudi Basic Industries

Corporation (SABIC)Siemens Swiss ReVolkswagenWPPZurich Financial Services

Annual Meeting PartnersABN AMRO Bank AkamaiAmerican International

Group (AIG)Bank for Foreign Trade VneshtorgbankBarcoBPBurda MediaDuPontInvest in France AgencyLUKOIL Oil CompanyMasterCard International MetroMittal Steel CompanyMoore Capital ManagementMorgan StanleyNomura HoldingsReutersSICPASwiss International Air

LinesUnilever

Acknowledgements

The World Economic Forum would like to thank its Partners for their valuable support of the World Economic ForumAnnual Meeting 2006



Ged Davis is Managing Director, Annual Meeting Programme. Jonathan Schmidt is Director, GlobalAgenda. Stephanie Janet is Associate Director, Annual Meeting Programme. Sheana Tambourgi isAssociate Director, Global Agenda.

Vidhi Tambiah is Associate Director, Business Insight, at the World Economic Forum. He worked withWayne Arnold, Robert Evans, Matthew May, William Montague, Alejandro Reyes and Benjamin Skinnerto produce this report.

The World Economic Forum would like to express its appreciation to the summary writers for their workat the Annual Meeting 2006. Session summaries are available at:www.weforum.org/annualmeeting/summaries2006

Alicia Bramlett, Action Communities Workshop design

Associate Director, Editing: Nancy Tranchet

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

Photographs:swiss-image.chRichard Kalvar / Magnum

Contributors

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

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

Documents

World Economic Forum Annual Meeting 2006