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The Earth Times | Posted February 12, 2002



Business

Klaus Schwab: Davos in New York
> BY TORI KATZ
Copyright © 2002 by The Earth Times. All rights reserved
How has the World Economic Forum changed since the annual meeting in 2001?

We announced some significant changes in the Forum prior to our Annual Meeting last year in Davos, and we have implemented and institutionalized those changes in the year since. Our Managing Board has been together for 18 months now and is a smooth, working unit. We have also added new consultative councils to bring new input into our Forum program and activities.

How has your own stewardship of the Forum evolved in the past year?

To be honest, I have enjoyed the transition to "shared leadership" here at the Forum. It gives me time to take the overview of things, and the long view, which I like. I have always had the advice and guidance of our Foundation Board and our Business Council, and I like to believe that leadership at the Forum has always been a collaborative process. But I think we now have a team in place that can really share the responsibilities of leadership, which is good for the Forum and good for me.

What is your message to New York City as you prepare to convene Davos 2002?

I would say, "Thank you for your warm welcome!" We have received such a great welcome from the Mayor, from the former Mayor, Mr. Giuliani, and from the Governor. And we've also gotten so much encouragement from the people we've met there. There seems to be a genuine appreciation for the decision we made to show solidarity with New York and hold our Annual Meeting there. We made our announcement when New York was still in shock from the tragic events of Sept. 11th, and in the midst of the anthrax scare. The people of New York are glad we're coming, and we're grateful for their warm welcome.

How optimistic are you about global economic revival now?

The business leaders I've spoken with are more optimistic than some of the news reports I read, which, I suppose, is a good sign. But I think the economy has some rough patches ahead before things get better. Unemployment may not have reached its worst point yet, and it will take some time to restore consumer confidence and confidence in the markets. So I think we can expect a difficult period through the middle of the year, but perhaps some improvement in Q3 and certainly, I hope, by Q4.

What do you sense to be the trends internationally concerning "the next big thing"?

The next big thing is probably something in the biotech area. Cloning, genetic engineering or something along those lines. It isn't necessarily where we are focused today--with terrorism and the struggling economy taking so much of our attention--but I think a breakthrough in biotech could be headline for us sometime in the near future.

In what way are you emphasizing social entrepreneurship, and why?

Social entrepreneurs make the world a better place--consistent with our own mission at the Forum. We have invited more than 40 social entrepreneurs, selected by the Schwab Foundation for Social Entrepreneurship, to join us at the Annual Meeting this year. They are an outstanding collection of people and we are looking forward to their participation.

What will it take to jump-start sustainable economic development in poor countries?

There are many factors contributing to sustainable economic development, but I think we need to emphasize the role that the governments in the developing world need to play in creating the proper climate for investment. International institutions, business leaders, the media, other entities--all play a role--but I think there is a burden on national leaders now to demonstrate their commitment to good governance, fiscal discipline and the rule of law, if the investment picture in the developing world is to change.

What is your exhortation to donor countries concerning aid to the emerging nations?

It would not be appropriate for me--or the Forum--to "exhort" the donor nations regarding aid. I think it is fair to say that more aid could be helpful in both alleviating poverty and stimulating development, but the Forum isn't the kind of institution that tells nations--or companies or individuals--what to do. That's not our role.

As the 10th anniversary of the 1992 Rio Earth Summit approaches, what are your recommendations about how the global community should prepare its agenda?

To implement all the promises and pledges that were made.

How should corporations enhance good governance and social responsibility, especially in a time of retrenchment?

As you know, the Global Compact was introduced at the World Economic Forum's Annual Meeting a couple of years ago, and we are proud of the Forum's role in promoting corporate social responsibility. We have also initiated task forces aimed at promoting good corporate governance, which we believe is essential in modern business.

Are issues such as environment, population, human rights and governance still as "hot" as they once were?

They are to us. Certainly, the war against terrorism has taken over the headlines in recent months, but at the World Economic Forum we like to take the long view. And I think the issues you mention will continue to factor into our programs and activities for many years to come.

How should the general public--especially NGOs--regard the World Economic Forum now?

I think the meeting this year in New York will provide a wonderful opportunity to introduce the Forum to a new audience of people who may not be as familiar as Europeans with who we are and what we do. I hope they will come to appreciate the uniqueness of our organization and will see the value we bring to the world through our many activities. As for NGOs, I think they should seize the opportunity for dialogue that the Forum provides. This year we will have more than 100 NGO representatives participating in our Annual Meeting--a record number for the Forum. We value the contribution they make to the important discussions we have about the issues you mentioned earlier--the environment, human rights, population, governance--and to our discussions about the downturn in the global economy and other issues. NGOs are an important stakeholder in our society and should participate in these discussions. We continue to welcome them in our community and we value their input.

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