Global Agenda World Economic Forum Annual Meeting 2015 The New Global Context

Davos-Klosters, Switzerland 21-24 January Contents Preface

3 Preface The World Economic Forum Annual acknowledge our Partners, 4 The Co-Chairs Meeting remains the foremost Members and participants, as well venue to shape and develop global, as the meeting Co-Chairs, for their 5 Davos Facts & Figures regional and industry agendas at leadership and guidance throughout 6 New at Davos the beginning of the year. At the the event. Thanks, too, to recognized Annual Meeting 2015, global leaders leaders from the Forum communities, 8 Crisis & Cooperation from government, business and including Social Entrepreneurs, 14 Growth & Stability civil society took advantage of the Global Shapers, Young Global 22 Innovation & Industry Forum’s unique multistakeholder Leaders and Technology Pioneers, platform to address profound who played a significant role in the 30 Society & Security political, economic, social and design and development of the 38 Arts & Culture at Davos technological transformations that various sessions focusing on the Klaus Schwab are affecting the world; a world future. 40 More Davos highlights Founder and Executive fraught with complexity, fragility and 42 Reports launched at Davos Chairman uncertainty that could potentially end On behalf of the Managing Board, 44 Acknowledgements an era of economic integration and thank you again for your participation international partnership. and working together in the 46 Upcoming Meetings collaborative and collegial Spirit of In this New Global Context – the Davos. theme of the 45th Annual Meeting in Davos-Klosters, Switzerland – We look forward very much to more than 2,500 participants met welcoming you at our regional events for strategic dialogues to develop and other meetings throughout the the necessary insights, ideas and coming year, as well as in Davos in partnerships, and to elaborate 2016. bold ideas and strategic options to consider in the year ahead. This context consisted of 10 global challenge initiatives to focus on W. Lee Howell in the coming year, among them Head of Global Programming, rising income disparity and social Member of the Managing inequality, the future of the internet Board and growing geopolitical tensions.

Leaders from government, academia and civil society discussed how to identify and build public-private World Economic Forum collaboration on these initiatives, and 91-93 route de la Capite deepen and strengthen collective CH-1223 Cologny/Geneva Switzerland understanding of a particular global Tel.: +41 (0)22 869 1212 issue or agenda. Fax: +41 (0)22 786 2744 Email: [email protected] www.weforum.org This Annual Meeting 2015 report World Economic Forum® serves as a valuable document to stimulate deeper thinking on the © 2015 – All rights reserved. No part of this publication may be reproduced or New Global Context. We gratefully Transmitted in any form or by any means, including Photocopying and recording, or by any information Storage and retrieval system.

REF 300115

The New Global Context 3 Co-Chairs Facts & Figures of the Annual Meeting 2015 Annual Meeting 2015 in numbers

Hari S. Bhartia Co-Chairman and Founder Jubilant Bhartia Group 1,500 India business leaders including 40 from heads of Winnie Byanyima state and 25 government Executive Director sectors and Oxfam International industries United Kingdom from over 300 140 public countries Katherine Garrett-Cox Chief Executive Officer figures Alliance Trust, United Kingdom

250 media representatives Jim Yong Kim 2,500 President The World Bank participants Washington DC 200 representatives from New Champion Eric Schmidt Communities Executive Chairman Google USA 100 webcast live Over online 280 Roberto Egydio Setubal sessions Chief Executive Officer and Vice-Chairman of the Board of Directors Itaú Unibanco Brazil

4 World Economic Forum Annual Meeting 2015 The New Global Context 5 New at Davos New at Davos

Globalized intelligence New partnerships Global Strategic Forum partners with is put on the map on global challenges Foresight Community Tropical Forest Alliance

The Annual Meeting inaugurated Transformation Maps to As part of the new global context, the World Economic Strategic foresight offers the opportunity to influence The World Economic Forum is to host the secretariat of frame and analyse connections between industry, regional Forum has identified 10 global challenges for which the future. By taking a long-term, proactive approach to the Tropical Forest Alliance (TFA) 2020, a global public- and global issues. The unique knowledge platform aims accelerated progress is contingent on new or expanded thinking about potential futures, lessons can be learned private partnership to help slow tropical deforestation to uncover the large transformations that are reshaping public-private cooperation. They are: agriculture and about what is wanted and not wanted in time to still do and address climate change. Through the secretariat, the world by harnessing the collective intelligence of the food security, economic growth and social inclusion, something about it. Building on its own strategic foresight the Forum will help TFA partners expand and implement Forum network. The interactive tool synthesizes key issues employment, skills and human capital, environment and practice, the World Economic Forum has established the company commitments for the sustainable sourcing of and developments in close to 140 Insight Areas – with six resource security, international trade and investment, Global Strategic Foresight Community (GSFC), which such key agricultural commodities as beef, paper and to eight strategic issues that define the agenda within each infrastructure, long-term investing and development, future brings together experts to identify insights, or shifts, that pulp, palm oil and soy. Tropical deforestation is a driver area. of the global financial system, future of the internet, gender will shape future global, regional and industry agendas. of risks and issues at the top of the global agenda – parity, and global crime and anti-corruption. For each The GSFC will actively interact with stakeholders from from threatening the livelihood of the 1.2 billion people They are continuously updated with the latest thinking of challenge, the Forum will sponsor a major global project in government, business and civil society to reflect on them. who depend on tropical forests for income to reducing top leaders and experts from Forum meetings, projects, partnership with international organizations. environmental risks such as forest burning. communities and informal discussions with Members The GSFC’s work in the coming two years will evolve and constituents. Insight Areas range from such industry The internet is one example. To safeguard this shared around the deeper exploration of the whole set of global The secretariat will raise awareness about tropical sectors as financial services, mobility and ICT, to global global resource, the Forum has launched the Future shifts and how they might provoke systemic change deforestation, with support from Forum networks and issues on economic and finance, environment and of the Internet initiative to help strengthen trust and across social, economic, environmental, technological at meetings, to coordinate and advance action with sustainability, and security and governance. Insight Areas expand cooperation on internet-related challenges and and political systems. These shifts are topics or issues governments on tropical deforestation globally and in also provide key insights from the key countries and opportunities. The aim is to help develop the internet as which should be highlighted now and added to the key regions. TFA partners include governments, as well regions. a core engine of human progress and protect its globally agendas of the Forum and relevant organizations to as producer and consumer goods companies, NGOs, integrated, highly distributed and multistakeholder nature. inspire constructive action for the future. These shifts, indigenous people’s groups and other stakeholders. The The initiative will initially focus on five key areas – policy offering new ways of thinking to realize the opportunities of TFA was born out of support from the United States and societal challenges, privacy, cybercrime, access and emerging developments, will also complement the Forum’s government for the Consumer Goods Forum commitment impact on business models. work on mitigating risks. to achieve zero-net tropical deforestation and to create sustainable supply chains for these commodities by 2020. http://reports.weforum.org/global-strategic-foresight- community

6 World Economic Forum Annual Meeting 2015 The New Global Context 7 Crisis & Cooperation Crisis & Cooperation “The oil price collapse is driven by economics rather than geopolitics.”

Nouriel Roubini A critical year for tackling Professor of Economics and International Business, Leonard N. Stern School of Business, New York University, USA global challenges Europe went through its post-conflict environmental concerns are coming period more than a half a century ago to the forefront of our global dialogue. but is pulling out of a post-financial We are at a critical fork in the road, a ‘There is no Planet B’ crisis as nations look to implement period of decision that will dictate the Leaders at the Annual Meeting a year ago could not have reforms to promote growth and health and viability of our civilization Scepticism on global warming create long-term jobs. “Europe has for decades, said Al Gore, Chairman is no longer an option – 98% of imagined the scale and sweep of crises to come: the conflict an opportunity to emerge stronger and Co-Founder, Generation scientists agree climate change between Ukraine and Russia, the spread of Ebola, the eruption out of the crisis,” Merkel said. Investment Management, USA. is driven by human behaviour. of ISIS and the growing threat of climate change. What will it Another big global challenge is There are signs of encouragement “The risk is one in ten or one cybersecurity. Being connected has – 196 countries will meet in Paris in five that we will have huge take to maintain global order, peace and security in 2015? become the “new normal” across so in December 2015 to agree on a many aspects of one’s lives, driving new climate change deal. At the disasters,” Nobel Laureate huge change across business, Annual Meeting, Gore and American scientist Mario Molina told government and civil society. While musician Pharrell Williams announced participants. “If that message One of the key messages in to defeat terrorism. “We have to international cooperation in the battle such a level of interconnectedness a worldwide concert series, Live was widespread, industry would Davos was the need for a global do more to avoid an endless cycle against Ebola, new trade pacts, offers opportunities it also presents Earth 2015, which will be broadcast do more to minimize the risk.” international response to terrorism of violent extremism. We have to progress towards an international substantial risks. Because the to up to 2 billion people to promote from both the public and the private transform the very environment from climate-change agreement, as internet transcends national, cultural, awareness. Other leaders, including At current greenhouse gas sectors. This was underlined by which these forces emerge,” he said. well as steps towards a peaceful linguistic and ethnic boundaries, the UN Secretary-General Ban Ki-moon, emissions, the planet is likely to only feasible way to address cyber François Hollande, President of resolution of the Iran nuclear World Bank President Jim Yong warm by 3.7°-4.8 °C by 2100 France, referring to the attacks in Much has been achieved by the negotiations. issues is through a cooperative Kim, and IMF Managing Director – double the 2°C limit targeted Paris in early January. “It wasn’t only coalition of 60 partners formed to global approach to define and act on Christine Lagarde supported the plea France that was attacked two weeks defeat Daesh, also known as ISIS, There are no quick fixes for shared goals. to move on climate change. “It’s a by the United Nations. However, ago – freedom itself was attacked,” Kerry added, but the speed of complicated, multifaceted conflicts; collective endeavour, it’s a collective there’s a thin chance it could be he said. “All countries are vulnerable progress is not yet fast enough. “To nor is there one single tool. Climate change was also high on the accountability and it may not be too much worse. According to the to terrorism.” Hollande called for an effectively combat violent extremism Maintaining peace in post-conflict agenda. Critical to the future of the late,” Lagarde said. UN, there’s a 1.6% probability international, shared response by over the long term, we need to societies requires tackling tensions planet’s ecosystem is how leaders that the planet could warm by government and business and urged better understand the underlying at the grassroots through innovative tackle the adverse effects of climate The world continues to face the risk 6°C. That would spell the end of the international community to do conditions,” he argued. “We have and sustained socio-economic change. Extreme weather events are of major conflict between states human civilization. more to resolve existing conflicts and to create alternatives that are better approaches. In the fight against taking increasingly deadly tolls. For and non-state actors alike, and the stabilize simmering global hotspots. than extremism.” terrorism, Angela Merkel, Chancellor example, typhoons in the Philippines means to wage conflict, whether Apply the same probability to of Germany, said: “Democracy must have created millions of refugees; through cyberattack, competition John Kerry, US Secretary of State, Kerry concluded his address on be our answer to terrorism.” floods and mudslides in Afghanistan for resources or sanctions and other airline travel and you’d have echoed the French president’s call an optimistic note, citing historic have killed almost as many families economic tools, are broader than 2,000-3,000 jumbo jet crashes as have been killed in wars. Drought ever. Addressing all these possible a year, according to Johan exacerbates economic strife, from triggers and seeking to return the Rockström, Executive Director California to Ukraine. world to a path of partnership, rather of the Stockholm Resilience “We need to put a price on denial than competition, should be a priority Centre. Would our grandchildren Leaders cited 2015 as a critical for leaders in 2015. ever forgive us if we bet against in politics. People need to stop year for action on climate change those odds? As the sign next to and sustainable development. If financing denial of climate change.” politicians, the private sector and the sea of snowmen in Davos international organizations fail to act, said: “There is no Planet B”. Al Gore Vice-President of the United States (1993-2001); Chairman and Co-Founder, the opportunity to create low-carbon Generation Investment Management, USA growth and reduce poverty will be lost. “Now, more than ever before,

8 World Economic Forum Annual Meeting 2015 The New Global Context 9 01 02

John Chipman, Director-General and Chief Executive, International Institute for Strategic Studies (IISS), United Kingdom; Wu Xinbo, Executive Dean, Institute of International Studies, Fudan University, People’s Republic of China; Frederick Kempe, President and Chief Executive Officer, The Atlantic Council, USA; Kirstjen Nielsen, Senior Fellow, Homeland Security Policy Institute, USA; Mahmood Sariolghalam, Professor of International Relations, National University of Iran, Islamic Republic of Iran; Anton du Plessis, Managing Director, Institute for Security Studies (ISS), South Africa

03 The fight for freedom creating a perfect environment for evil-doers to go about their trade,” Sawers said. The Paris attacks underlined how the extremist threat is next door – not international. Cyber- Trust is the issue. “We need a new covenant assaults on governments and corporations have between public opinion and intelligence spiked, while unchecked social media promote agencies,” said John Chipman, Director of the 04 ISIS beheadings and lure new recruits. UK’s International Institute for Strategic Studies. The head of Norway’s intelligence service agrees 01: Christine Lagarde, 04: Hilde Schwab, 05 Managing Director, Chairperson and The battle between freedom and extremism on and welcomes the thorough oversight that gives International Monetary Co-Founder, Schwab his team “legitimacy”. In Britain, MI6 has its Fund (IMF), Washington Foundation for Social the streets of Europe and Iraq is mirrored by the DC; World Economic Entrepreneurship, operations vetted by a high-level parliamentary Forum Foundation Switzerland virtual battle between freedom and privacy on the Board Member; Ban 05: Klaus Schwab, world’s digital highways. committee and two independent judges. Ki-moon, Secretary- Founder and Executive General, United Nations, Chairman, World New York; Jim Yong Economic Forum, and For Sawers, there is no trade-off between privacy Kim, President, World Didier Burkhalter, Federal “Intelligence services are in the frontline in national Bank, Washington DC; Councillor and Head of defence,” said Sir John Sawers, ex-head of and security – only through greater security can Co-Chair of the Annual the Federal Department Meeting 2015; Paul of Foreign Affairs of the Britain’s Secret Intelligence Service, or MI6. But our freedoms be preserved. Intelligence agencies Kagame, President of the Swiss Confederation, have far more advanced systems for protecting Republic of Rwanda; A. sign the Host Country since Snowden’s leaks, trust in governments has Michael Spence, William Agreement, which officially privacy than commercial companies, according to R. Berkley Professor in recognizes the Forum as nosedived, tech companies have cut cooperation Economics and Business, an international entity with spies and “that’s added to the threat”. John Podesta’s post-Snowden review of Big Data NYU Stern School of 06: Angela Merkel, for President Obama. Business, Italy; Paul Federal Chancellor of Access to exchanges on Facebook could have Polman, Chief Executive Germany Officer, Unilever, United 07: Igor Shuvalov, First helped agencies prevent a British soldier being 06 07 Kingdom Deputy Prime Minister of hacked to death in London two years ago. Sawers concluded: “We in the security community 02: Li Keqiang, Premier the Russian Federation; of the People’s Republic Andrey L. Kostin, care about privacy. I do sometimes have a of China; Klaus Schwab, Chairman and Chief concern that privacy advocates take security for Founder and Executive Executive Officer, VTB The British government has called for a “back Chairman, World Bank, Russian Federation granted and don’t realize it has to be worked for.” Economic Forum 08: Zhang Xin, Chief door” to the internet – access to the encryption 03: Vishal Sikka, Chief Executive Officer and codes that tech companies use to protect digital Executive Officer and Co-Founder, SOHO Managing Director, China, People’s Republic data. Davos participants fretted that the bad guys Infosys, India; Hans E. of China Vestberg, President and could use the same entrance – “The path to hell 08 Chief Executive Officer, starts at the back door,” said Bradford Smith, Ericsson, Sweden; Gillian R. Tett, US Managing Vice-President of Microsoft. But if police can Editor, Financial Times, USA; Ajay S. Banga, access every back-alley and CCTV records every President and Chief Executive Officer, passer-by, then no-go areas online don’t make MasterCard, USA; Peter sense, say security advocates. T. Grauer, Chairman, Bloomberg, USA; Erik Brynjolfsson, Director, MIT Initiative on the Digital “If you create a completely closed sector of the Economy, Massachusetts internet which is impossible to monitor…you’re Institute of Technology, USA 10 AnnualWorld Economic Meeting of Forum the New Annual Champions Meeting 20152015 The New Global Context 11 01: Al Gore, Vice-President 08: Marcelo Cortes Neri, 01 02 03 of the United States (1993- Minister of Strategic 2001); Chairman and Affairs of Brazil; Carlos Co-Founder, Generation Ghosn, Chairman and Investment Management, Chief Executive Officer, USA; Pharrell Williams, Renault-Nissan Alliance, Creative Director and France; World Economic Brand Ambassador, Bionic Forum Foundation Board Yarn, USA; Kevin Wall, Member; Alexei Kudrin, Founder and Executive Professor and Dean, Producer, Live Earth, USA School of Liberal Arts and 02: Laurence Fink, Sciences, Saint Petersburg Chairman and Chief State University, Russian Executive Officer, Federation BlackRock, USA; Joaquim 09: Andrew Steer, Levy, Minister of Finance President and Chief 01: François Hollande, of Brazil; Haruhiko Kuroda, Executive Officer, World 04 05 President of France, with Governor of the Bank of Resources Institute, USA Global Shapers Japan; Benoît Coeuré, 10: Anne-Marie Slaughter, 02: Ibrahim Boubacar Member of the Executive President and Chief Keita, President of the Board, European Central Executive Officer, New Republic of Mali Bank, Frankfurt; Mark America, USA; Inga Beale, 03: Margaret Chan, J. Carney, Governor of Chief Executive Officer, Director-General, World the Bank of England; Lloyd’s, United Kingdom; Health Organization World Economic Forum Linda Yueh, Presenter, (WHO), Geneva Foundation Board Talking Business, BBC 04: Fareed Zakaria, 01 Member; Min Zhu, Deputy News, United Kingdom; Anchor, Fareed Zakaria - Managing Director, Guy Ryder, Director- GPS, CNN, USA; Melinda International Monetary General, International French Gates, Co-Chair, 02 Fund Labour Organization Bill & Melinda Gates 03: Laurence Fink, (ILO), Geneva; Beth A. Foundation, USA; William Chairman and Chief Brooke-Marciniak, Global H. Gates III, Co-Chair, Executive Officer, Vice-Chair, Public Policy, Bill & Melinda Gates BlackRock, USA EY, USA; Bernard J. Foundation, USA 04: Sheryl Sandberg, Tyson, Chairman and Chief 05: Nicole Schwab, Chief Operating Officer Executive Officer, Kaiser Author, Switzerland; Young and Member of the Board, Permanente, USA 06 Global Leader Alumnus Facebook, USA signs her book at Book 05: Marissa Mayer, Reading: The Heart of the President and Chief Labyrinth Executive Officer, Yahoo, 06: Ellen Kullman, Chair USA of the Board and Chief 06: Matteo Renzi, Prime Executive Officer, DuPont, Minister of Italy USA 07: Martin Schulz, 07: Nhlanhla Musa Nene, President of the European Minister of Finance of Parliament; Adam Posen, South Africa; Lesetja President of the Peterson Kganyago, Governor of Institute for International the South Africa Reserve Economics, USA Bank (SARB), South Africa 08: Baroness Amos 07 (centre), Undersecretary- General for Humanitarian 03 04 05 06 Affairs and Emergency Relief Coordinator, United Nations Office for the Coordination of Humanitarian Affairs (OCHA), New York at Weak Signals from the Future session 09: Anthony F. Fernandes, Group Chief Executive Officer AirAsia Bhd, Malaysia; Tejpreet Singh Chopra (right), President and Chief Executive Officer, Bharat Light and Power India 10: Abdelfattah Said Hussein Alsisi, President of Egypt; Angela Merkel, 08 09 Chancellor of Germany 11: José Manuel Barroso, President of the European 10 Commission (2004-2014), Portugal; Maurice Levy Chairman and Chief Executive Officer, Publicis Groupe SA, France 07 08

09 10

11

12 World Economic Forum Annual Meeting 2015 The New Global Context 13 Growth & Stability

India and Indonesia are taking Federal Minister of Economic Affairs of the Constitution of Fifty, Egypt, Growth & Stability advantage of lower energy prices to and Energy of Germany. said. Policies that cut red tape and slash subsidies. If other countries facilitate investment, particularly in follow suit and invest the savings in Spain has been a model for such infrastructure projects that create job creation and education, with a reforms, with Spanish car factories jobs and improve living standards special focus on women, the impact now more productive than German quickly, will help growth and stability. on growth and inclusion would be ones. Economic growth in Spain is The path to inclusive and huge. Christine Lagarde, Managing accelerating. With economic growth ranging from Director, International Monetary 4%-5% and a young population, Fund (IMF), estimates that $2 trillion Lower commodity prices are hurting Africa is ready for investment. The resilient economies would be freed to reduce inequality Russia and many Latin American continent already has more foreign if energy subsidies were ended. “If countries, but this shift is obliging exchange reserves than debt. African you increase the income share of the them to diversify their economies. countries must work to rebrand poorest, it has a multiplying effect on Many will now invest more in the continent, to diversify their growth,” she said. infrastructure and education. Brazil is economies and cut red tape. The returning to the “middle path” it first opportunities are enormous. “Once Japan’s mix of aggressive monetary implemented in 2003: a combination you’re in Africa, you’re in it; you policy and fiscal stimulus has kept of redistributive social programmes don’t withdraw,” said Sunil Bharti the country from recession. The and market-friendly economic Mittal, Founder and Chairman, Bharti The global economy is bouncing back from the 2008 financial country needs to further liberalize policies. Enterprises, India. Mittal is investing parts of the economy, but one more than $1 billion in 17 countries in crisis, but leaders still have work to do. Many countries need reform is already a success: Japan “Implementing the Bali Trade the continent. has increased the number of Facilitation Agreement could result structural reforms to make growth sustainable and bring down working women, partially offsetting in $1 trillion in economic growth and Governments cannot neglect unemployment and inequality. the demographic decline in its 21 million jobs could be created,” inclusion as they seek to ramp up labour force. A new programme will Roberto Azevêdo, Director-General, growth. Youth unemployment in accommodate 400,000 children in World Trade Organization (WTO), Europe and the Arab world, and the government-organized after-school said. The 10 countries of ASEAN, fate of the very poorest everywhere childcare to further help working with over 600 million people and must be addressed. Besides labour mothers. average growth of over 6% a year, market reforms, investment in The United States is growing. The engine of world growth,” said Justin will create a common market by basic healthcare and in improving International Monetary Fund now Lin, Professor, National School of The European Central Bank’s the end of this year. “The free flows the quality of education will reduce expects the world’s largest economy Development, Peking University, said. announcement that it, too, will of goods, capital and labour will inequality. to grow 3.6% this year and that implement quantitative easing and provide the opportunity for ASEAN growth will have ripple effects India is aiming to resume growth pump at least €1.1 trillion into the to become the factory for the world,” Winnie Byanyima, Executive Director, worldwide. “We are more optimistic rates of 8%-9%. Under Prime Eurozone is a big step forward. For Samdech Samdech Techo Hun Sen, Oxfam International, and Co-Chair of now because the US economy is Minister Narendra Modi, the this monetary boost to become Prime Minister of Cambodia, said. the Annual Meeting 2015, summed coming back. We will see better government is opening sectors such sustainable growth, the continent up the consensus that she found results in the next five years than we as railways and defence to foreign must also liberalize labour markets, The Middle East faces strife and among both business and political saw in the last five,” Roberto Egydio direct investment and implementing “We do not just reform pension systems and combine political unrest, but the rise of a new, leaders: “Growth must touch Setubal, Chief Executive Officer a programme of financial inclusion want to define short-term fiscal stimulus with long- more technology-savvy generation everybody and lift everybody for it to and Vice-Chairman of the Board of for millions of Indians. These reforms term fiscal consolidation. “The task and the spread of democracy be sustainable.” Directors, Itaú Unibanco, and Co- have changed the mindset inside the issues; we want for Germany now is to support the offer hope. “Democracy will be the Chair of the Annual Meeting 2015, country and are attracting foreign to help create European Union, but every country order of the day. It is a process said. investment. solutions.” needs to have the courage to and it has started,” Amre Moussa, undertake structural reforms,” said Secretary-General of the League of China’s growth is slowing, but its new The recent plunge in oil prices is, on Sigmar Gabriel, Vice-Chancellor and Arab States (2001-2011) and Head 7%-8% growth rate is sustainable. balance, a positive development. Klaus Schwab The country is moving from an Jim Yong Kim, President, The World Founder and Executive economy based on investment and Bank, and Co-Chair of the Annual Chairman, World Economic “If we bring together government, investors and Forum exports to one that relies more on Meeting 2015, said that if the international financial institutions, we can solve services and consumption, which average price of oil were $60 a barrel will lift its people’s standard of living this year, compared to last year’s corruption risk, variable risk, currency risk.” and create export markets for other $94, his forecast for global economic countries. “I am confident that China growth would rise half a percentage will be able to maintain a 7% growth point. Gordon Brown rate over the next five or even 10 Chair, World Economic Forum Global Strategic Infrastructure Initiative; Member of Parliament; Prime Minister of the United Kingdom (2007-2010) years. China will continue to be an

14 World Economic Forum Annual Meeting 2015 The New Global Context 15 Martin Wolf, Associate Editor and Chief Economics Commentator, Financial Times, United Kingdom; Anat Admati, George G. C. Parker Professor of Finance and Economics, Martin Wolf, Associate Editor and Chief Economics Commentator, Financial Times, United Kingdom; Anat Admati, George G. C. Parker Professor of Finance and Economics, Stanford Graduate School of Business, USA, Pietro Carlo Padoan, Minister of Economics and Finance of Italy; Andrea Enria, Chairman, European Banking Authority, London; Stanford Graduate School of Business, USA, Pietro Carlo Padoan, Minister of Economics and Finance of Italy; Andrea Enria, Chairman, European Banking Authority, London; Urs Rohner, Chairman of the Board of Directors, Credit Suisse Group, Switzerland Urs Rohner, Chairman of the Board of Directors, Credit Suisse Group, Switzerland

ECB to the rescue – accomplished under the Schröder government and Tougher measures leave banks their size means that a collapse could pose a those that Spain is currently implementing. Europe systemic threat. Yet private equity funds are also but is it enough? must also ensure that its banks are solid and that stronger and more resilient playing an increasingly useful role in infrastructure regulations permit them to lend, otherwise QE’s development, stepping in to finance projects that The European Central Bank (ECB) has decided new money may stay parked on banks’ balance Governments worldwide responded to the 2008 governments cannot afford. to follow the lead of the United States, the United sheets. financial crisis with measures that were intended to Kingdom and Japan, and implement quantitative make the financial system more resilient: minimal Much has been accomplished. Most banks have easing (QE): the large-scale purchase of bonds QE brings risks too. It tends to weaken currencies, capital levels for banks; liquidity requirements; strengthened their capital levels, undergone to drive down interest rates, increase the money which will benefit Europe’s exporters but may processes to recover or resolve troubled stress tests and addressed issues of manager supply and, hopefully, stimulate growth and end trouble the continent’s trading partners. The flow of institutions; and new regulations for derivatives compensation and conduct. “These regulations the risks of deflation. new money may also create asset bubbles, which markets. have not stifled growth. On the contrary, banks disproportionately benefit the rich and thereby with stronger capital are lending more and gaining Mario Draghi’s announcement that the ECB increase inequality. More work remains to be done. Anat Admati, market share,” Andrea Enria, Chairman, European would buy €1.1 trillion in assets by autumn 2016 George G.C. Parker Professor of Finance and Banking Authority, London, said. pleased markets and most participants, but there Still, leading economists were in broad agreement Economics, Stanford Graduate School of was a consensus that the ECB’s move, though that QE offers Europe an opportunity, and if policy- Business, said the problem of too-big-to-fail banks Min Zhu, Deputy Managing Director, International necessary, was not enough. “The European makers now also liberalize labour markets to has not been solved. International collaboration is Monetary Fund (IMF), summed up the new Central Bank’s action by itself, welcome as it is, lower youth unemployment, adopt pro-growth tax needed so that the orderly resolution of a global scenario: “Worldwide, the whole banking sector is is not going to solve the problem,” said George policies and reform pensions, recovery will follow. “I bank, with operations spanning national borders, much stronger than a few years ago.” Osborne, Chancellor of the Exchequer of the am confident that Europe can make it,” Ana Botín, would be feasible. She also urged that derivative United Kingdom. Chairman, Banco Santander, said. markets be made simpler and more transparent, and that banks be obliged to further raise their The lesson from the United States, where QE is equity levels. coming to an end, is that this monetary easing creates space or buys time for other measures Risks may also be moving into the lightly- to be taken. In the case of Europe, that means regulated “shadow banking” sector of private structural reforms such as those Germany equity and hedge funds. Even if these funds do not benefit from government deposit insurance, 16 AnnualWorld Economic Meeting of Forum the New Annual Champions Meeting 20152015 The New Global Context 17 01: Thomas de Maizière, 07: Hikmet Ersek, 02 01 02 Federal Minister of the President and Chief Interior of Germany Executive Officer, The 02: Kofi Annan, Chairman, Western Union Company, Kofi Annan Foundation, USA Switzerland; Secretary- 08: Kasper Rorsted, Chief General, United Nations Executive Officer, Henkel, (1997-2006); John F. Kerry, Germany US Secretary of State 09: Orit Gadiesh, 03: The panel, China’s Chairman, Bain & Impact as a Global Investor Company, USA; World session Economic Forum 04: Thorold Barker, Editor, Foundation Board Europe, Middle East and Member; Klaus Kleinfeld, Africa, Wall Street Journal, Chairman and Chief United Kingdom; Zhou Executive Officer, Alcoa, Xiaochuan, Governor of USA; World the People’s Bank of China Economic Forum of the People’s Republic Foundation Board Member of China; Guillermo Ortiz, 10: Martin Senn, Group 01 Chairman of the Advisory Chief Executive Officer, Board, Banorte, Mexico; Zurich Financial Services, Arkady Dvorkovich, Switzerland; Paul Bulcke, Deputy Prime Minister of Chief Executive Officer, 03 04 the Russian Federation; Nestlé Anthony Scaramucci, Founder and Managing Partner, SkyBridge Capital, USA; Kenneth Rogoff, Thomas D. Cabot Professor of Public Policy and Professor of Economics, Harvard University, USA 05: H.M. Queen Rania Al Abdullah of the Hashemite Kingdom of Jordan, Member of the Foundation Board of the World Economic Forum 06: Jonas Prising, 05 Chief Executive Officer, ManpowerGroup, USA 03

06 04

07

Ngcuka, Undersecretary- 08 09 General and Executive Director, United Nations Entity for Gender Equality and the Empowerment of Women (UN WOMEN), New York; Paul Polman, Chief Executive Officer, Unilever, United Kingdom 07: Arun Jaitley, Minister of Finance, Corporate 05 06 07 08 Affairs and Information and Broadcasting of India 08: Klaus Schwab, Founder and Executive 01: Petro Poroshenko, Schmidt, Professor, Chairman, World President of Ukraine Australian National Economic Forum; François 02: Jean-Pierre University, Australia Hollande, President of Bourguignon, President, 03: will.i.am, Founder, France European Research Angel Foundation, USA 09: Erin Ganju, Co- Council, Belgium; Francis 04: Installation In Search of Founder and Chief S. Collins, Director, Balance in the Congress Executive Officer, Room National Institutes of Centre to Read, USA; Javier Health, USA; France A. 05: Ban Ki-moon, Lozano, Founder, Clinicas Cordova, Director, National Secretary-General, United del Azucar, Mexico; 09 Science Foundation (NSF), Nations, New York Ann Cotton, Founder USA; Enrique Acevedo , 06: Katie Couric, Global and President, Camfed Anchor, Univision, USA; Anchor, Yahoo News, International, United Mario Molina, Professor, USA; Melinda French Kingdom; Tony Kalm, Centro Mario Molina, Gates, Co-Chair, Bill & Director, One Acre Fund, Mexico, Konstantin Melinda Gates Foundation, USA; David R. Gergen, Novoselov, Research USA; Paul Kagame, Co-Director, Center Fellow, Mesoscopic President of the Republic for Public Leadership, Physics Research Group, of Rwanda; Erna Solberg, Harvard Kennedy School University of Manchester, Prime Minister of Norway; of Government, USA 10 United Kingdom; Brian Phumzile Mlambo-

18 World Economic Forum Annual Meeting 2015 The New Global Context 19 01: Haidar Al Abad, Prime Southern Africa, South 01 02 Minister of Iraq; Charlie Africa; David Rosen, 01 02 01 Rose, Anchor, CBS News, Rabbi and International USA Director, Interreligious 02: Loïc Le Meur, Chief Affairs, American Jewish Executive Officer, LeWeb, Committee (AJC), Israel; USA Tony Blair, Middle East 03: Habil F. Khorakiwala, Quartet Representative, Chairman Wockhardt United Kingdom Limited, India; Ahmad 09: Jacob G. Zuma, Iravani, President and President of South Africa Executive Director, Center 10: Paul E. Jacobs, for the Study of Islam and Executive Chairman, the Middle East (CSIME), Qualcomm, USA 03 USA 11: Paul Polman, Chief 04: David M. Rubenstein, Executive Officer, Unilever, Co-Founder and Co-Chief United Kingdom Executive Officer, Carlyle 12: Ayad Allawi, Group, USA; Indra Nooyi, Vice-President of Iraq; Chairman and Chief Abdelilah Benkirane, Executive Officer Chief of Government of PepsiCo Inc., USA Morocco 05: Moisés Naím, Distinguished Fellow, 04 Carnegie Endowment for International Peace, USA; Anne-Marie Slaughter, 01: Paul Kagame, 09: The panel, Growing in President and Chief President of the Republic Harder Times session 06 Executive Officer, New of Rwanda 10: Struggle for Survival America, USA 02: Ursula von der session 06: Gary D. Cohn, Leyen, Federal Minister of 11: Simin Nikbin Meydani, President and Chief Defence of Germany Director, Jean Mayer Operating Officer, 03: Aliko Dangote, USDA Human Nutrition Goldman Sachs, USA; President and Chief Research Center on Ray Dalio, Chairman and Executive Officer, Dangote Aging, Tufts University, Chief Investment Officer, Group, Nigeria; Dominic USA Bridgewater Associates, Barton, Global Managing USA Director, McKinsey 07: Javad Zarif, Minister & Company, United of Foreign Affairs of the Kingdom; Meta-Council Islamic Republic of Iran on the Circular Economy; 05 06 08: Mina Al-Oraibi, Omar K. Alghanim, Assistant Editor-in- 03 04 Chief Executive Officer, Chief, Asharq Al-Awsat Alghanim Industries, 07 08 Newspaper, United Kuwait Kingdom; Hamza Yusuf 05 06 04: Al Gore, Vice- Hanson, President, President of the United Zaytuna College, States (1993-2001); USA; Thabo Cecil Chairman and Makgoba, Archbishop Co-Founder, Generation and Metropolitan of Investment Management, the Anglican Church of USA 05: Jimmy Wales, Founder and Chair Emeritus, Board of Trustees, Wikimedia Foundation, USA 07 06: Christian Morales Collado Corporate Vice- President and General Manager, Europe, Middle 09 08 East and Africa Intel Corporation, Germany 07: Ana Botín, Chairman, Banco Santander, Spain 08: Susan Goldberg, Editor-in-Chief, National Geographic Magazine, USA

11 07

10 09 10 11 1412

20 World Economic Forum Annual Meeting 2015 The New Global Context 21 Innovation & Industry

profound and pervasive. “Those of Isabel Fernandez-Mateo, Adecco Innovation & Industry us who are slow to adapt to changes Chair Associate Professor, London may go bankrupt,” said Sung- Business School. Mo Steve Kang, President, Korea Advanced Institute of Science and As smart machines and robotics Technology (KAIST). play an increasingly large role in businesses, new questions arise Changing frontiers shaped Another feature of today’s business about the skills required to succeed landscape involves changes in the in the 21st-century workplace. labour market. Digital platforms have Ensuring the inclusion of a broad “Time is of the by digital innovation fundamentally altered traditional range of demographics, skillsets essence. Every models of employment. For example, and backgrounds increases a the internet allows more people to corporation’s resilience and ability day we don’t work from home and to earn income to take advantage of market improve our from freelance work or creative- opportunities. competitiveness Connectivity and data are transforming all industries. Not only economy services such as Airbnb or Lyft. New technologies have raised is a lost day.” have business models been upended by digital technology, the questions about how governments As the millennial generation plays a should respond to disruptive Angela Merkel Federal Chancellor of Germany boundaries between industries have also shifted. These larger role in the workforce, changing innovation. For example, how changes have profound implications for the future of business expectations about work and should municipalities regulate for- business cultures will affect an even hiring driving services to balance as well as for the nature of work, civic participation and greater number of firms. “Youth today the convenience of new apps with communications. want to be part of the solution,” the public-safety needs of taxi- concerns about data security have said Ellen Kullman, Chair of the licensing regimes? These questions generated a range of national Board and Chief Executive Officer, will require new partnerships regulatory responses. New apps DuPont, USA. The skills of millennial between policy-makers, technology have allowed people to take control workers may become increasingly providers, business leaders and of their health in unprecedented valuable in helping firms utilize digital community activists. In addition, ways, monitoring physical activity, The rise of digital technologies – such The internet will increasingly become or technological breakthroughs. technologies. However, it is important societies must weigh the advantages heart rate and nutrition, for example. as big data, the internet of things, the fabric that connects cities, homes Network connectivity has enabled for businesses to maintain continuity of infrastructure, such as low-cost These tools also raise questions and robotics – has created anxiety and products we use, and the cloud technologies and digital in culture and retain experienced bandwidth access, in comparison to about government standards for as well as a sense of opportunity distinction between offline and online platforms to combine data sets in workers. other spending priorities. balancing innovation with privacy in today’s marketplace. Products will become imperceptible. “The innovative ways. protection. ranging from tractors to coffee- internet will disappear,” Eric Schmidt, Further, demand for technology skills The challenges for developing makers have become networked Executive Chairman, Google, The result for businesses is that has resulted in a bifurcation of the nations are particularly pressing. On Some digital firms have found that its objects generating constant streams predicted. disruptive innovations can come from global workforce. “Labour markets the one hand, ensuring that low- customers will sacrifice some data of data. In addition, the world now sectors that initially seem distant are diverging between the haves and income populations can access privacy in exchange for convenience has 2 billion smartphones and As the internet transitions from from day-to-day operations. For have-nots in terms of technology,” the internet is one of the most and efficiency. But trust is essential: 5 billion mobile phones, and the browser-dominated to app-driven, example, new technologies enable said Jonas Prising, Chief Executive affordable ways to raise education customers will retaliate against firms number is growing. A recent survey what are the implications for drivers to install monitoring devices Officer, ManpowerGroup, USA. levels, increase entrepreneurship and that lack transparency or fail to give of businesses by Accenture revealed businesses and communities around in exchange for discounts on their Ensuring that youth in developing expand business opportunities. On users options for managing their own that two-thirds of executives believe the world? First, the boundaries car insurance. Does this mean that nations in particular have the the other hand, many developing- data. the failure to incorporate big data in between industries are changing, car insurers must develop data necessary job skills will require world communities still lack clean their firm’s operations would cause and opportunities to innovate may analytics capacities? The demands reforming education to improve digital air and drinking water. Technological Data-sharing has opened new their businesses to suffer. come from unforeseen sectors for rethinking business models are literacy and creating infrastructure to innovation is needed to ensure these possibilities in medical research increase broadband connectivity in basic needs are met. and academia. The collaborative underserved areas. nature of the Human Genome “We need to find ways for technology Project, for example, demonstrated “India’s challenge is how to bring the largest Increasing diversity in the workplace to make everyone’s lives better, not the breakthroughs enabled by is one way that firms can maximize just people who are educated and collaboration among scientists, number of young people into the job market recruitment and retention of talent. can code,” said Sheryl Sandberg, engineers and data analysts. Companies that monitor and publish Chief Operating Officer and Member Complex, data-intensive fields with the right hard and soft skills.” diversity statistics tend to improve of the Board, Facebook, USA. such as neuroscience and cancer more quickly in the inclusion of research could benefit from similarly Hari S. Bhartia women and minorities. “To increase Technology also raises questions multidisciplinary approaches. Co-Chairman and Founder, Jubilant Bhartia Group, India; Co-Chair of the Annual Meeting 2015 the number of women at the top, about balancing security and open- start with transparency,” said access to information. In Europe,

22 World Economic Forum Annual Meeting 2015 The New Global Context 23 Innovation is sorely needed to Big brains, These projects are beginning to map neural improve healthcare systems around processing and generate a tremendous amount of the world. Scientists have generated big data information about human cognition. This research stunningly powerful new tools to treat could improve treatments for neural problems illnesses such as cancer. However, ranging from autism to blindness. Scientists have existing pharmacology institutions With an average of 100 billion neurons, the human cannot offer personalized genetic already identified ways to detect Alzheimer’s before brain has more connections and a higher level of the onset of symptoms by testing spinal fluid. therapies on a large scale. The complexity than the internet. Recent advances in existing model of healthcare depends neuroscience have made striking gains in terms on a “fix-me” system in which In order to ensure that this research benefits patients seek out medical services of understanding mental illness and the neural the greatest number of people, researchers underpinnings of cognition. However, most basic to cure illnesses, but if this model Daniel Yergin, Vice-Chairman, IHS, USA; Abdalla Salem El Badri, Secretary-General, Organization of the Petroleum must ensure that findings generate publically continues, demographic changes Exporting Countries (OPEC), Vienna; Fatih Birol, Chief Economist, International Energy Agency, Paris; Dalia processes of the brain remain a mystery. Grybauskaite, President of Lithuania; Arkady Dvorkovich, Deputy Prime Minister of the Russian Federation; Khalid A. accessible data. The informational output of these will result in a doubling of healthcare Al Falih, President and Chief Executive Officer, Saudi Aramco, Saudi Arabia; Claudio Descalzi, Chief Executive Officer, Eni, Italy projects could also transform data analytics. For costs by 2025. With many developed “How do you lay down a memory? We don’t really example, presently, scientific research generates countries already spending more know what the molecular basis of memory is,” said efficiency standards and end- a high volume of images. But researchers have than 15% of their GDP on healthcare, Oil prices, gas and Francis S. Collins, Director, National Institutes of user apps have combined yet to identify ways to generate computational this trend is unsustainable. Health, USA; Global Agenda Council on the Future renewable energy to make marked reductions information or conduct statistical analyses from of the Health Sector. Shifting healthcare from a drain on in fossil-fuel demand from large numbers of images. Thus, the problem- national economies to a driver of developed markets. In addition, solving required to analyse the human brain could However, the mysteries of the brain are starting innovation will require reinventing Will low oil prices reverse the innovations in natural gas also transform disciplines such as computer to become solvable scientific puzzles, thanks to models to promote public health. demand for renewable energy? production have caused gas science, engineering and statistics. One alternative is to focus on well- the computational power of big data and large, How will new technologies to occupy a larger share of being, rather than treating illness. multidisciplinary projects such as the EU’s Human in hydraulic fracturing and energy markets. New natural As chronic diseases such as obesity Brain Project and the US Brain Research through horizontal drilling transform gas extraction sites can be and diabetes become increasing geopolitics and affect the global Advancing Innovative Neurotechnologies. problems around the world, an installed more quickly and output power of oil-rich nations? emphasis on healthy lifestyles and can be modulated more easily preventive care will become even in response to prices. Further, more important. While it is not a high- These questions were among the improvements in liquefaction tech solution, promoting individual topics confronting participants processes have rendered natural responsibility, moderation and at the 2015 Annual Meeting. gas easier to store and transport. active lifestyles will be one of many While no consensus emerged to innovations needed to raise living forecast the price of oil per barrel standards globally. While demand for fossil in the coming year, participants fuels is unlikely to fade in the generally agreed that recent The Forum launched a multi-year coming decades, boosters fluctuations in fossil-fuel pricing Future of the Internet initiative to of renewable technology are help strengthen trust and expand were unlikely to destabilize quick to cite reduced costs concrete cooperation on internet- longer-term trends in energy of solar and wind technology related challenges and opportunities. markets. as major breakthroughs in The purpose is to help develop the reducing carbon emissions and internet as a core engine of human One source of ongoing demand giving nations more options for progress and safeguard its globally for renewables is China and its integrated, highly distributed and configuring their desired energy rapidly industrializing markets. mix. multistakeholder nature. The nation has committed to make renewable energy 30% of its energy mix by 2030, which means that Chinese demand will be a major source of demand for wind and solar technologies.

New demand-side technologies have also improved efficiency of Jean-Pierre Bourguignon, President, European Research Council, Belgium; Francis S. Collins, Director, National Institutes of Health, USA; France A. Cordova, Director, National fossil-fuel usage. For example, Science Foundation (NSF), USA; Enrique Acevedo, Anchor, Univision, USA; Mario Molina, Professor, Centro Mario Molina, Mexico; Konstantin Novoselov, Research Fellow, smart grids, congestion pricing, Mesoscopic Physics Research Group, University of Manchester, United Kingdom; Brian Schmidt, Professor, Australian National University, Australia

24 World Economic Forum Annual Meeting 2015 The New Global Context 25 01: Stefan Loefven, Prime 10: Pridiyathorn Devakula, 01: Hugh Herr, Assistant Administrator, United 02 Minister of Sweden; Jonas Deputy Prime Minister of Professor in Media Arts Nations Development Prising, Chief Executive Thailand and Sciences and Health Programme (UNDP), Officer, ManpowerGroup, 11: A. Michael Spence, Sciences and Technology, New York; Jean-Marie USA; Hélène Rey, William R. Berkley MIT - Media Laboratory, Guéhenno, President Professor of Economics, Professor in Economics USA and Chief Executive London Business School, and Business, NYU Stern 02: Thabo Cecil Officer, International United Kingdom; Guy School of Business, Italy Makgoba, Archbishop Crisis Group (ICG), Ryder, Director-General, 12: Anne Pasternak, and Metropolitan of Belgium; Moisés Naím, International Labour President and Artistic the Anglican Church of Distinguished Fellow, Organization (ILO), Director, Creative Southern Africa, South Carnegie Endowment for Geneva Time, USA; Daan Africa; David Rosen, International Peace, USA 02: Brian Skerry, National Roosegaarde, Artist, Rabbi and International 09: Volkan Bozkir, Geographic Photography Studio Roosegaarde, Director, Interreligious Minister for EU Affairs Fellow, National Netherlands; Carol 03 Affairs, American Jewish and Chief Negotiator of Geographic Magazine, Becker, Dean of Faculty, Committee (AJC), Israel Turkey; Joseph S. Nye Jr, USA School of the Arts, 03: Aliko Dangote, University Distinguished 03: Peter B. Gabriel, Columbia University, USA President and Chief Service Professor, Founder, Real World, Executive Officer, Dangote Harvard Kennedy School, United Kingdom Group, Nigeria Harvard University, USA; 04: Toomas Hendrik Ilves, 04: Satya Nadella, Kishore Mahbubani, President of Estonia Chief Executive Officer, Dean, Lee Kuan Yew 05: The panel, The BBC Microsoft Corporation, School of Public Policy, World Debate: A Richer USA National University of World, but for Whom? 05: Rima Maktabi, Singapore, Singapore; 06: KoTian Wei, 01 Senior Anchor and John Baird, Minister of Moderator and Host, Roving Correspondent, Foreign Affairs of Canada; CCTV News, China Al Arabiya, United Arab Ngaire Woods, Dean, Central Television, Emirates; Young Global Blavatnik School of People’s Republic of Leader; Ayad Allawi, Vice- Government, University of China; Young Global President of Iraq, Office of Oxford, United Kingdom 01 Leader the President of Iraq, Iraq; 10: Chanda Kochhar, 07: Kofi Annan, Chairman, H.R.H. Prince Turki Al Managing Director and Kofi Annan Foundation, Faisal Al Saud, Chairman, Chief Executive Officer, 02 Switzerland; Secretary- King Faisal Center for ICICI Bank, India; General, United Nations Research and Islamic Hari S. Bhartia, Co- (1997-2006) Studies, Saudi Arabia; Chairman and Founder, 08: Justin Lin, Professor, Rowsch N. Shaways, Jubilant Bhartia Group, National School of Deputy Prime Minister of India; Co-Chair of the Development, Peking 04 05 Iraq, Office of the Prime World Economic Forum University, People’s Minister of Iraq, Iraq; John Annual Meeting 2015 Republic of China; Baird, Minister of Foreign 11: Angel Gurría, Arun Jaitley, Minister of 07 Affairs of Canada Secretary-General, Finance, India 06: Thorold Barker, Editor, Organisation for 09: Akihiko Tanaka, Europe, Middle East and Economic Co-operation 03 President, Japan Africa, Wall Street Journal, and Development International Cooperation United Kingdom; Zhou (OECD), Paris; World Agency (JICA), Japan; Xiaochuan, Governor Economic Forum 04 05 Kevin Rudd, President, of the People’s Bank of Foundation Board Asia Society Policy China of the People’s Member Institute, Australia Republic of China 07: Amre Moussa, Secretary-General of the 06 League of Arab States (2001-2011); Tarek Sultan Al Essa, Chief Executive 06 Officer and Vice-Chairman of the Board, Agility, Kuwait 08: Juan Carlos Pinzon Bueno, Minister of National Defence of Colombia; Young Global Leader; Helen E. Clark,

09

08

07 08 10

04

10 0111 12 09 11

26 World Economic Forum Annual Meeting 2015 The New Global Context 27 01: Ahmet Davutoğlu, 02 Prime Minister of Turkey 01 02: Sheila Lirio Marcelo, Founder and Chief Executive Officer, Care. com, USA; Young Global Leader 03: Pham Binh Minh, Deputy Prime Minister and Minister of Foreign Affairs of Vietnam 01 01 04: Jim Yong Kim, 02 President, The World Bank, Washington DC; 01 Co-Chair of the Annual Meeting 2015 05: Nik Gowing, International Broadcaster, United Kingdom; Patrick Chappatte, Editorial 03 Cartoonist, USA; Abdallah bin Bayyah, President, Forum for Promoting Peace in Muslim Societies, United Arab Emirates; Kenneth Roth, Executive Director, Human Rights Watch, USA; Jeanne Bourgault, 04 05 President, Internews, USA 01: Laurence Fink, John F. Kerry, US 06: Nhlanhla Musa Nene, 06 Chairman and Chief Secretary of State Minister of Finance of 06 Executive Officer, 07: Katie Couric, Global South Africa; Marcelo BlackRock, USA; Anchor, Yahoo News, Cortes Neri, Minister of Joaquim Levy, Ministry USA; Melinda French Strategic Affairs of Brazil; of Finance of Brazil; Gates, Co-Chair, Alexei Kudrin, Professor Haruhiko Kuroda, Bill & Melinda Gates and Dean, School of Governor of the Bank of Foundation, USA; Paul Liberal Arts and Sciences, Japan; Benoît Coeuré, Kagame, President of the Saint Petersburg State Member of the Executive Republic of Rwanda; Erna University, Russian Board, European Central Solberg, Prime Minister Federation; Carlos Bank, Frankfurt; Mark J. of Norway; Phumzile Ghosn, Chairman and 03 Carney, Governor of the Mlambo-Ngcuka, Chief Executive Officer, Bank of England; World Undersecretary-General Renault-Nissan Alliance, Economic Forum and Executive Director, France; World Economic Forum Foundation Board 04 Foundation Board United Nations Entity for Member; Min Zhu, Deputy Gender Equality and the Member 07 Managing Director, Empowerment of Women 07: Yorihiko Kojima, International Monetary (UN WOMEN), New Chairman of the Board, Mitsubishi Corporation, 11: Christine Lagarde, Fund (IMF), Washington York; Paul Polman, Chief Managing Director, 08 DC; World Economic Executive Officer, Unilever, Japan 08: Jim Hagemann International Monetary Forum Foundation Board United Kingdom Fund (IMF), Member 08: Wolfgang Schäuble, Snabe, Chairman, 05 Centre for Global Washington DC; World 02: Mattias Klum, Federal Minister of Economic Forum Photographer and Finance of Germany Industries, Member of the Management Foundation Board Filmmaker, Mattias Klum 09: Hans Rosling, Member; Jim Yong Kim, Tierra Grande, Professor of International Board; World Economic 07 Forum Foundation President, The World Sweden; Young Global Health, Karolinska Bank, Washington DC; Leader Alumnus Institute, Sweden Board Member; Sheryl Sandberg, Chief Co-Chair of the Annual 03: Johan Rockström, 10: Kishore Mahbubani, Meeting 2015; Paul Executive Director, Dean, Lee Kuan Yew Operating Officer and Member of the Board, Kagame, President of the Stockholm Resilience School of Public Policy, Republic of Rwanda; A. Centre, Sweden National; Martin Wolf, Facebook, USA; Young Global Leader Alumnus; Michael Spence, William 04: George Soros, Associate Editor and Chief R. Berkley Professor in Chairman, Soros Fund Economics Commentator, Eric Schmidt, Executive Chairman, Google, USA; Economics and Business, Management, USA Financial Times, United NYU Stern School of 09 05: George Osborne, Kingdom Co-Chair of the World Economic Forum Annual Business, Italy; Paul Chancellor of the Polman, Chief Executive Exchequer of the United Meeting 2015; Satya Nadella, Chief Executive Officer, Unilever, United Kingdom Kingdom; Ban Ki-moon, 06: Klaus Schwab, Officer, Microsoft Corporation, USA; Vittorio Secretary-General, United Founder and Executive Nations, New York Chairman, World Colao, Chief Executive Economic Forum; Officer, Vodafone Group, 08 09 United Kingdom 10 09: Stefan Loefven, Prime Minister of Sweden; Jonas Prising, Chief Executive 11 Officer, ManpowerGroup, USA 10: Moisés Naím, Distinguished Fellow, Carnegie Endowment for International Peace, USA; Marco Panara, Chief Editor, Business and Finance, La Repubblica, Italy 10

28 World Economic Forum Annual Meeting 2015 The New Global Context 29 Society & Security

said globalization has induced “a for sustainable growth,” she said, Middle East (CSIME), USA. “But it is Society & Security deep-seated sense of uncertainty” adding that inequality had worsened also the responsibility of intellectual, that would be a “dangerous mistake” since the financial crisis. “Distribution scholars, thinkers and religious to ignore. The rise of national and matters,” she said, because “if you leaders to be more active within populist parties worldwide is a increase the income share of the society,” he said. warning signal. poorest it has a multiplying effect on growth.” Jim Yong Kim, President, The World Building a future of How best to respond to this new Bank, and Co-Chair of the Annual global context? The key to facing all To rebuild trust, political leaders need Meeting 2015, told participants of these challenges is for leaders to to “cool down” prevalent dangerous that the World Bank Group aims to confidence and trust fully realize the interconnectedness trends and commit to addressing raise the income of the lowest 40% of the risk factors and develop deepening pockets of conflict and earners in developing countries. strategies, including public-private confrontation, recommended Ernesto partnerships, to manage them. Zedillo Ponce de Leon, Director, Yale Bill and Melinda Gates of the Bill Global leaders grappled with how Center for the Study of Globalization, & Melinda Gates Foundation, We live in turbulent times. Nothing feels secure, from our to overcome trust and leadership Yale University. USA, offered a vision for 2030 deficits and defined new pathways to where poverty is eradicated, personal safety to our neighbourhoods, workplaces and public a more sustainable and just future. People need to be told the truth disease eliminated and everyone spaces where we interact as a community. What can be done to about the complexity of challenges has access to nutritious food and Participants acknowledged that and they need transparency, he said. the opportunities presented by transform today’s context from one of uncertainty, mistrust and leadership and global governance This takes political courage. “My education. are in crisis. International institutions proudest moment as president [of fear to one of confidence, trust and optimism? are no longer representative and Mexico] is when I was taking tough The couple said lives of people in are in desperate need of reform. decisions and my popularity rating poor countries will improve faster Many leaders talk about principles, was lower than Mexico’s inflation in the next 15 years than at any including transparency, integrity and rate,” Zedillo told participants. other time in history. Important Despite the mood of uncertainty Development Goals will be adopted Challenges abound – fundamental the common good, but practice often breakthroughs will be driven by in the face of unprecedented at the UN summit in September institutions and global governance lags far behind. Italy’s Prime Minister Matteo Renzi innovation and technology, ranging geopolitical challenges, optimism and a global agreement on climate are broken, corruption is pervasive, urged politicians to “carpe diem” from new vaccines with universal and hope fuelled many of the change could be reached in the rich are becoming richer and Winnie Byanyima, Executive Director, and tackle complex risks head on. coverage, better agriculture yields conversations at the Annual Meeting December. the poor poorer, rising middle Oxfam International, and Co- “Not to see the risks is stupid for due to better seeds, better nutrition, 2015. Public and private sector classes are being squeezed by Chair of the Annual Meeting 2015, a politician, but transforming risks cheaper smartphones and new ways institutions are working together Since 2008, when the global financial volatile commodities, inequality acknowledged that the rich are into opportunities is the quality of to deliver these benefits to more to rebuild trust and there is huge system imploded, trust in public and is fuelling unrest, climate change producers of great wealth. However, leadership,” he said. people. potential for technology to transform private sector institutions plummeted. and environmental degradation are she added, the issue is about political all areas of our lives, including Deeply engrained inequities rose undermining social and economic capture. “Extreme wealth takes over Chief executives also have an healthcare, financial services, energy, to the surface and individual and development, chronic and the role of public decision-making,” important role to play. CEOs need manufacturing and retail. societal risk became a daily reality for contagious diseases are on the rise she said. to better manage transparency billions. Public confidence and trust and cybersecurity is moving to the and explain their role in societies. Participants taking stock of the are low. Trust, which is an intangible top of the political agenda. With low oil prices, now is the perfect Corporate philanthropy and a serious Millennium Development Goals asset in organizations and leadership, opportunity to cut $2 trillion worth of commitment to public-private noted that progress has been implies ethical and moral linkages. As Failure to address social and global energy subsidies and invest partnerships can help to rebuild trust. made on many fronts. This year, such, it contributes to human well- economic inequalities could become in job creation and education, with the foundations for meaningful being and progress. But mistrust can toxic. Simonetta Sommaruga, a special focus on women, said Reform over the long term is the change can be laid – the Sustainable lead societies into a downward spiral. President of the Swiss Confederation, Christine Lagarde, Managing Director, solution, according to Ahmad Iravani, International Monetary Fund (IMF). President and Executive Director, “Excessive inequality is not good Center for the Study of Islam and the

“We need to have a plan equal to the “We’re not trying to say the 1% are bad guys. challenge.” But the wealthier can buy longer, happier and healthier lives, while the poor people and their children are trapped in poverty.”

Jim-Yong Kim Winnie Byanyima President, The World Bank, Washington DC; Co-Chair of the Annual Meeting 2015 Executive Director, Oxfam International, United Kingdom; Co-Chair of the Annual Meeting 2015

30 World Economic Forum Annual Meeting 2015 The New Global Context 31 Shaping up to global issues with local solutions

At the Annual Meeting, the Shaping Davos initiative featured local solutions to global issues in 16 live sessions connecting to 40 cities worldwide. Powered by the Global Shapers Community, the initiative explored 10 topics ranging from governance in social media to innovation in education.

In Shaping Davos: Rethinking Politics, a conversation on social trends and technology pointed to a reshaping of politics and civic engagement worldwide. While disaffection with political parties is widespread, particularly among young people, social media and other forms of instant communication are making it easier to mobilize public demonstrations and open data is creating opportunities for deeper transparency and accountability of government. A new form of “active citizenship” is also available through information technology, which allows youth and all citizens to name and shame government offices that request bribes and also pushes the boundaries of transparency and accountability. The session featured Madrid, Manila, Ottawa, and Tunis.

In Shaping Davos: Conflict Resolution, Global Shapers from Juba to Gaza, Colombo to San Salvador, showed how each phase of conflict – from civil war to truth and rehabilitation commissions – carries tremendous challenges. Across the globe, the rise of social media has been seen as a democratizing force that can help facilitate and sustain peaceful societies. Social media has also helped to mobilize ground support for causes ranging from the uprisings that shaped the Arab Spring to the latest elections in Sri Lanka, facilitating an unprecedented rate of civic participation among young people.

The Global Shapers Community provides youth with a global platform to shape the future. There are currently more than 4,600 Global Shapers in over 400 Hubs in 165 countries and territories around the world.

Watch Shaping Davos webcasts at:

Global Shapers, with François Hollande, President of France, http://shapingdavos.org share perspectives on democracy, governance and innovation

32 AnnualWorld Economic Meeting of Forum the New Annual Champions Meeting 20152015 The New Global Context 33 01: Jack Ma, Executive 01 02 Chairman, Alibaba Group, 01 02 People’s Republic of China; World Economic Forum Foundation Board Member 02: Tod Machover, Muriel R. Cooper Professor of Music and Media, MIT - Media Laboratory, USA 03: Joe Palca, Science 03 Correspondent, National Public Radio, USA; Richard J. Davidson, 04 05 William James and Vilas Research Professor of Psychology and Psychiatry, Center for Investigating Healthy Minds, Waisman Center, University of Wisconsin, Madison, USA; Thomas R. Insel, Director, National Institute of Mental Health, USA 04: Michael E. Haefliger, Executive and Artistic 03 04 Director, Lucerne Festival, 06 Switzerland 05: Muhammad Yunus, 01: Stanley M. Bergman, Secretary-General, Chairman, Yunus Centre, 01 Chairman of the Board Organization of the Bangladesh and Chief Executive Petroleum Exporting 06: Tom Szaky, Founder Officer, Henry Schein, Countries (OPEC), and Chief Executive 07 USA Vienna; Fatih Birol, Chief Officer, TerraCycle, USA; 02: Ulrich Spiesshofer, Economist, International Social Entrepreneur Chief Executive Officer, Energy Agency, Paris; 07: Brian Skerry, National ABB, Switzerland Dalia Grybauskaite, Geographic Photography 03: Lamberto Zannier, President of Lithuania; Fellow, National Secretary-General, Arkady Dvorkovich, Geographic Magazine, Organization for Security Deputy Prime Minister of USA and Cooperation the Russian Federation; 08: Sarah Jones, 05 07 in Europe (OSCE), Vienna Khalid A. Al Falih, Playwright, Actress and 04: Mahmoud Jibril, President and Chief Poet, USA Leader, National Forces Executive Officer, Saudi 09: Wolfgang Ischinger, Alliance of Libya, Aramco, Saudi Arabia; Chairman, Munich Libya; Ayad Allawi, Claudio Descalzi, Chief Security Conference, Vice-President of Iraq; Executive Officer, Eni, Italy Germany talks to Joseph Abdelilah Benkirane, 08: Kathryn Brown, S. Nye Jr, University Chief of Government Chief Executive Officer, Distinguished Service of Morocco; Ghassan Internet Society (ISOC), Professor, Harvard Salame, Dean, The Paris Switzerland Kennedy School, Harvard School of International 09: Ertharin Cousin, University, USA Affairs, Institut d’Etudes Executive Director, United 10: Paola Antonelli, Senior Politiques, France; Global Nations World Food Curator, Architecture and Agenda Council on Geo- Programme (WFP), Rome; Design; Director, Research economics Stanley M. Bergman, and Development, The 05: Rich Lesser, Global Chairman of the Board Museum of Modern Art, Chief Executive Officer and Chief Executive New York, USA and President, The Officer, Henry Schein, Boston Consulting Group, USA USA 10: Francine Lacqua, 06: Kil Jeong-Woo, Editor-at-Large and Member of Parliament, Presenter, Bloomberg Republic of Korea; Wu Television,United Xinbo, Executive Dean, Kingdom; Christine 06 Institute of International Lagarde, Managing Studies, Fudan University, Director, International People’s Republic of Monetary Fund (IMF), China Washington DC; World 10 07: Daniel Yergin, Vice- Economic Forum Chairman, IHS, USA; Foundation Board 01 Abdalla Salem El Badri, Member; Gary D. 08 09 Cohn, President and Chief Operating Officer, Goldman Sachs, USA; 10 Ray Dalio, Chairman and Chief Investment Officer, 08 Bridgewater Associates, USA; Ana Patricia Botín, Chairman, Banco Santander, Spain; Lawrence H. Summers, Charles W. Eliot University Professor, Harvard University, USA

09

34 World Economic Forum Annual Meeting 2015 The New Global Context 35 01: Mary Barra, Chief 08: Erna Solberg, Prime 01: Robin Niblett, Director, Executive Officer, General Minister of Norway 01 02 Chatham House, United Motors Company, USA 09: Mark J. Carney, Kingdom; Alexander 02: Nick Goldman, Governor of the Bank of Stubb, Prime Minister of Research Group Leader England; World Economic Finland, Young Global and Senior Scientist, Forum Foundation Board Leader; Enda Kenny, The Goldman Group, Member; Christine Taoiseach of Ireland; EMBL-EBI European Lagarde, Managing Laimdota Straujuma, Bioinformatics Institute, Director, International Prime Minister of United Kingdom Monetary Fund (IMF), Latvia; Mark Rutte, 03: Tania Singer, Director, Washington DC; World Prime Minister of the Department of Social Economic Forum Netherlands; Sigmar Neuroscience, Max Foundation Board Gabriel, Vice-Chancellor Planck Institute for Human Member 03 and Federal Minister of Cognitive and Brain 10: Daniel Yergin, Vice- Economic Affairs and Sciences, Germany Chairman, IHS, USA Energy of Germany 04: Muhtar A. Kent, 02: Ren Zhengfei, Chairman of the Board Founder and Chief and Chief Executive Executive Officer, Huawei Officer, The Coca-Cola 01 02 Technologies, People’s Company, USA Republic of China 05: Simonetta 03: Patrick Pouyanné, Sommaruga, President of Chief Executive Officer the Swiss Confederation and President of the and Minister of Justice Executive Committee, and Police; William Lacy 04 Total, France Swing, Director-General, 04: Health Summit International Organization workshop for Migration (IOM), 05: Lynette Wallworth, Geneva Artist, Australia; Daan 06: Enda Kenny, Roosegaarde, Artist, Taoiseach of Ireland; Studio Roosegaarde, Laimdota Straujuma, Netherlands Prime Minister of Latvia 06: David Christian, 07: Anshu Jain, Co- 05 Professor of History, Chief Executive Officer, Macquarie University, Deutsche Bank, Germany Australia 07: Peter Liu, Founder and Chairman, WI Harper 03 04 Group Inc., USA 08: Pierre Nanterme, Chief Executive Officer, Accenture, France 06 09: Joachim Schellnhuber, Director, Potsdam Institute for Climate Impact Research (PIK), Germany 10: Dominic Casserley, Chief Executive Officer, Willis Group, United Kingdom 11: Judith Rodin, President, Rockefeller Foundation, USA 12: The Keeping 05 06 ‘Worldwide’ in the Web 07 08 session

09

10

11 12

07 08

09 10

36 World Economic Forum Annual Meeting 2015 The New Global Context 37 Arts & Culture at Davos Artists unveil visions of balance

The playwright and comedian Sarah With the Victoria and Albert Museum, and return on investment, it can be Jones is African American, but she we created a set of large-scale difficult to speak of the impact of the can equally easily become a fast- animated immersive projections of arts. talking Dominican student, an elderly contemporary photography from the Jewish woman or impersonate Middle East, South Africa and the The arts are a key component of a number of other characters Black British Experience, powerfully shaping any culture. Culture is how representing different world views bringing the outside world into the we see the world. How we see and life experiences. Congress Centre and exploring the the world influences our decisions. theme In Search of Balance. With the world’s decision-makers She performs this feat in her joining us in Davos, it is always a celebrated comedy show, One- With Daan Roosegarde, we created responsibility to bring the arts into Woman Global Village, which the site-specific The Studio, marrying the mix, helping leaders form as full explores diversity and the universality Roosegarde’s Dune – a poetic and a picture as possible of the global of needs and hopes. In a world interactive landscape of energy- challenges and inspiring creative where walls are springing up, where efficient LED lights that interact with ways forward to tackle them. nationalism and populism are stoking the motion of passing visitors – with fear of the other, how can one single a space to discuss creative ideas for At the Forum we speak of artists as person such as Jones break these shaping a more sustainable future. “cultural leaders”; indeed, we are barriers effortlessly? primarily interested in engaging with With Lynette Wallworth, we created artists who directly through their work Jones and many other cultural The Refuge and presented Lynette’s or indirectly through other activities leaders came to Davos to respond Evolution of Fearlessness, a set of are actively engaged in improving the to a climate of exclusion by providing moving and interactive portraits of state of the world. visions of balance, inclusiveness and women refugees, which celebrates nuance. The arts were included in the resilience in the hardest conditions The arts activities in Davos may or Annual Meeting programme because – this in the context of the worst may not have tangible outcomes. A they are needed – now more than refugee crisis ever recorded. In performance may only provide hope, ever. photographer Platon’s words, artists or an installation only a slight sense can help us “humanize statistics”. of discomfort. We do not prescribe To complement the discussions, solutions. It is not the role of the debates and conversations on global There has been a debate for arts. But we trust in the potential challenges, we created something centuries about the value of the arts. of the experiences, in how they are akin to a set of artistic interventions Are the arts an enjoyable distraction presented and contextualized within – performances, screenings, visual from the pressing concerns of the Annual Meeting, to spark a new displays and immersive installations everyday life, or can they help us idea, create more empathy, shift – to help make those global better appreciate our world and a consciousness, and even lead a challenges personal and to inspire provide inspiration to live everyday life leader to commit to action. None of our community of leaders to see to the fullest? At a time when there this is efficient or scalable, but then hope even when the circumstances is a premium on efficiency, scale again, change has never come easily. are bleak.

“The arts can communicate without words and can convey complex ideas that speak to people differently; art can increase tolerance and empathy.”

Deborah Bull Director, Cultural Partnerships, King’s College London, United Kingdom

38 World Economic Forum Annual Meeting 2015 The New Global Context 39 More Davos Highlights More Davos highlights

Big History, Big Future for Shapers bring big ideas on big issues world to Davos

New to the Annual Meeting this year, the Big History, Big Throughout the week the World Economic Forum’s Future series brought together experts across disciplines Global Shapers Community – a network of exceptional to help leaders think big by thinking back and thinking young leaders who self-organize to have an impact on beyond in the new global context. The series examines their local communities – brought the world to Davos and how society reached this point in human history and took Davos to the world through a series of live events. speculates about where it is headed. Big ideas in the The interactive webcast sessions connected 40 cities session, From the Origins of Life to Megacities, included from around the world to discuss 10 topics related to the migration and collective learning, cities and states, Annual Meeting theme, The New Global Context. Topics and power, conflict and governance. The future rests focused on rethinking politics, engaging youth in work, on how people can act together even though they do conflict resolution and building trust in public-private not necessarily share the same values or interests. partnerships, among others. In the session, Globalization, Growth and Stability, population, agriculture and energy, and trade, capitalism The Shaping Davos initiative provided viewers with and globalization were cited as concepts of growth for unprecedented live access to cities and issues in every measuring human well-being and happiness. In Innovation major region of the world, using two-way live streaming Crystal Award since the Modern Revolution, innovation is seen as a Touching lives and satellite broadcast technology. Shaping Davos powerful and disruptive force that evolved naturally, in The Refuge allowed its audience to travel to cities like Gaza, Erbil, winners 2015 spread quickly through language and accelerated through Juba, Paramaribo, and many others, to explore local communal learning. Throughout the meeting, participants solutions to global issues. had the opportunity – through the Big Picture: Big History Three cultural leaders were honoured at the 21st annual display – to embark on a visual exploration of history from Housed in The Refuge – a set of moving and interactive www.shapingdavos.org World Economic Forum’s Crystal Awards ceremony. The the Big Bang to the modern day and glimpse into the portraits of women refugees living in Australia – artist awardees are highly regarded for their artistic career and future using touchscreen technology. Lynette Wallworth’s Evolution of Fearlessness exhibition have a demonstrated and long-standing commitment exposed participants to loss, survival and strength. After to improving the state of the world. Japanese architect reading the stories of 10 women who lived through wars‚ Shigeru Ban was recognized for his innovative work using survived concentration camps or experienced extreme reusable materials for temporary housing in disaster acts of violence, the viewer approaches a doorway in a areas in such places as his native Japan and in Haiti and darkened room and places a hand on the glass portal. Rwanda. Italian tenor Andrea Bocelli received the award This action activates a life-sized video of one of the for his musical achievements and inspiration to people women to step forward and place her hand on your hand. living with blindness. Benin singer-songwriter Angélique The work creates a moment of video touch. Kidjo was honoured for supporting secondary school and higher education for girls in Africa. The award ceremony Built around the importance of gesture and responsive to was followed by a concert performed by Bocelli and the touch, Evolution of Fearlessness provides a tactile gateway Orchestra Sinfonica Rossini di Pesaro. to the women contained in the piece. While cinematic techniques are at the heart of the art work, it goes beyond http://wef.ch/crystalawards15 cinema in its immersive and interactive form, revealing the strength of the human spirit. It is not only about women who have experienced extreme trauma but also those who have managed to transform that trauma and come out stronger.

40 World Economic Forum Annual Meeting 2015 The New Global Context 41 World Economic Forum Insight: Health Systems Leapfrogging in Emerging Economies The report gathers insights from 50 case studies in 20 emerging economies on the concept of “leapfrogging”, including ways to scale up the process and initiate broader health system reports launched at Davos transformation. Leapfrogging can empower emerging economies to build health systems that are more focused on better health outcomes, financial sustainability and people satisfaction. http://wef.ch/healthsystems15

Industrial Internet of Things: Unleashing the Potential of Connected Products and Services The Industrial Internet of Things – the integration of the physical and digital worlds through networked sensors, machine learning and big data – promises to fundamentally transform and disrupt a wide Global Risks 2015 range of traditional industries through improved operational efficiency, new business models and opportunities for job creation. The report highlights the latest wave of technological change that will The 2015 edition of the Global Risks report completes a decade of highlighting the most significant impact industries, value chains, business models and workforces, and the actions that business and long-term risks worldwide, drawing on the perspectives of experts and global decision-makers. This government leaders need to take to ensure long-term success. year’s report underscores potential causes as well as solutions to global risks. Not only does it include 28 global risks in the report’s traditional categories (economic, environmental, societal, geopolitical http://wef.ch/internetofthings15 and technological), but also considers the drivers of those risks in the form of 13 trends. http://wef.ch/grr2015 Maximizing Healthy Life Years The report, part of the Forum’s Future of Healthy project, includes a systems map depicting the Beyond Supply Chains complex ecosystem influencing healthy populations, key inflection points for investment in healthier societies, examples of investments at these inflection points that have resulted in positive health and The report identifies a set of companies that are implementing world-class supply chain practices that economic returns, and building blocks to rethink the concept of return on investment (ROI) for a are best in class from a commercial perspective, while also improving environmental impact and local healthy population. economic conditions – building ethical supply chains. This is known as the “triple supply chain advantage”. http://wef.ch/healthylife15 http://wef.ch/bsc15 Partnering Against Corruption Initiative (PACI) Bridging the Skills and Innovation Gap to Boost Productivity in Latin America The Forum’s Partnering Against Corruption Initiative (PACI) is expanding work of its PACI Vanguard community of global chief executive officers in 2015 to help implement the action plan created by the The report identifies skills and innovation as two of the biggest challenges preventing Latin America B20 Working Group on Anti-Corruption. Top priorities of the action plan include critical issues such as from reaching its full competitiveness potential, sustaining prosperity and raising the well-being of its beneficial ownership, public procurement reform, strengthening anti-corruption enforcement, citizens. It presents recommendations for the region’s political, business and civil society leaders to harmonizing legal frameworks and initiating more collective action. collaboratively address these challenges across sectors and national borders. http://wef.ch/paci15 http://wef.ch/latamcompetitiveness

Partnering for Cyber Resilience Towards the Quantification of Cyber Threats Building Foundations Against Corruption This report outlines a “cyber value-at-risk” framework that seeks to unify all dimensions of The report provides practical advice on how corruption in infrastructure and related sectors can be cyberthreats and encourages organizations to create robust cyber risk models. This should help addressed through collective action. It is part of the Forum’s Building Foundations Against Corruption increase confidence regarding decisions to invest, distribute, offload and/or retain cyber risks. project, which aims to foster CEO and government collaboration to build a framework for open and transparent business practices. http://wef.ch/cyberrisk15 http://wef.ch/againstcorruption15 Project Mainstream Data-Driven Development Pathways for Progress Project MainStream, part of the World Economic Forum’s Circular Economy initiative, released a new project outline containing three programmes – PET and polyester, paper and paperboard, and asset The report by the World Economic Forum Global Agenda Council on Data-Driven Development tracking – to accelerate the transition to a circular economy. The initiative brings together industry serves to clarify how big data can be leveraged to address the challenges of sustainable development. players on a cross-industry, cross-supply chain basis to change the way they conduct business, Providing a blueprint for balancing competing tensions, areas of focus include: addressing the data including in their product design, material usage and business models. deficit of the Global South, establishing resilient governance and strengthening capacities at the community and individual level. http://wef.ch/projectmainstream15 http://wef.ch/datadrivendev15 The Business of Creativity Enabling Trade: Increasing the Potential of Trade Reforms The report explores how digital content has introduced opportunities for creating, sharing and distributing content, while revealing tensions in copyright systems. It also highlights recent innovations The report examines trade reform and the gaps and potential improvements that governments can in digital content ecosystem, illustrates how such innovations impact copyright systems, and explores make in collaboration with the private sector. It uses case examples to illustrate supply chain the legal, technical and societal changes needed to foster the ongoing innovation of online content. bottlenecks and the ways that both national governments and the private sector can use ongoing trade reforms to either reduce or eliminate those hindrances. http://wef.ch/normsvalues15 http://wef.ch/enablingtrade15 The Future of Electricity Benchmarking Inclusive Growth and Development The Future of Electricity: Attracting Investment to Build Tomorrow’s Electricity Sector offers guidance on transforming the electricity sector to a more sustainable, affordable and reliable system, and This discussion paper aims to contribute to the emerging debate on what policy incentives and outlines recommendations for policy-makers, regulators and businesses in developed markets to institutional mechanisms are available to policy-makers seeking to expand social inclusion without attract needed investment. It is part of a broader Future of Electricity initiative, which was launched at dampening incentives to work, save and invest. the World Economic Forum Annual Meeting 2014, and aims to provide countries, companies and http://wef.ch/inclusivegrowth15 societies with a platform for dialogue and learning amid the transition to a lower-carbon electricity system.

42 World Economic Forum Annual Meeting 2015 http://wef.ch/electricityfuture15 The New Global Context 43 Acknowledgements Further Information Contributors

The World Economic Forum would like Goldman Sachs Swiss Re to thank its Strategic Partners for their Google Inc. Takeda Pharmaceutical valuable support of the World Economic Hanwha Group Tata Consultancy Services Forum Annual Meeting 2015. HCL Technologies Ltd Tech Mahindra Heidrick & Struggles Thomson Reuters The event page of the World Klaus Schwab, Founder and Executive Henkel Toshiba Corporation Economic Forum Annual Meeting Chairman Strategic Partners Hitachi Total 2015 provides access to a richer level W. Lee Howell, Head of Global HSBC UBS A.T. Kearney of content from the meeting, including Programming, Member of the Huawei Technologies Unilever ABB videos, photographs, session Managing Board IHS UPS The Abraaj Group summaries and webcasts of selected Emma Loades, Senior Director, Infosys USM Holdings Accenture sessions. Programme Development Team Itaú Unibanco VimpelCom Adecco Group Nico Daswani, Associate Director, Aetna JLL Visa Inc. http://www.weforum.org/am15 Head of Arts & Culture, Programme Agility Johnson Controls Volkswagen AG Development Team Alcoa JPMorgan Chase & Co. VTB Bank ArcelorMittal KPMG International Wipro AUDI AG Kudelski Group WPP The report was written by Mary Lazard Yahoo Bahrain Economic Development Board More information on the World Economic Forum Annual Meeting 2015 can be Bridges, Daniel Horch, Dianna Rienstra Lenovo Zurich Insurance Group Bain & Company found using the following links: and Jonothan Walter. Bank of America LIXIL Group Corporation The Forum would also like to thank the Highlights Video Barclays LUKOIL summary writers for their work at the http://www.weforum.org/am15/highlights Basic Element ManpowerGroup Strategic Foundation Partners Annual Meeting 2015: Robin Bowman, BlackRock Marsh & McLennan Companies (MMC) Programme Lucy Conger, Paula Dupraz, Kate Bill & Melinda Gates Foundation Bombardier MasterCard http://www.weforum.org/am15/programme Lamb, Catherine Ong, Nicholas van The Rockefeller Foundation The Boston Consulting Group McKinsey & Company Praag, Dorit Sallis, Mark Schulman, The Wellcome Trust Session Summaries and Insight Reports BP Plc Microsoft Corporation Gareth Shepherd, James Workman http://www.weforum.org/am15/summaries Bridgewater Associates Mitsubishi Corporation and David Watkiss. BT Morgan Stanley Strategic Technology Partner Webcasts Burda Media Nestlé SA http://www.weforum.org/am15/webcasts Novartis Salesforce CA Technologies Photographs Editing and Production Old Mutual Chevron http://www.weforum.org/am15/photos Ann Brady, Associate Director, Head of Cisco Omnicom Group Editing Citi PepsiCo Agenda David Bustamante, Senior Manager, Clayton, Dubilier & Rice LLC Petroleo Brasileiro SA – PETROBRAS https://agenda.weforum.org Production and Design The Coca-Cola Company Prudential Kamal Kimaoui, Director, Head of Credit Suisse Publicis Groupe Production and Design Dangote Group PwC Deloitte Qualcomm Dentsu Group Reliance Industries Photographers Deutsche Bank Renault-Nissan Alliance Swiss-image; Richard Kalvar; Benedikt Deutsche Post DHL Royal DSM Von Loebell Doğuş Group Royal Philips The Dow Chemical Company SABMiller The views expressed in this publication DuPont Saudi Aramco do not necessarily reflect those of the Ericsson Saudi Basic Industries Corporation World Economic Forum. Essar Capital Ltd (SABIC) EY Sberbank Facebook Siemens Fluor Corporation SK Group GE SOCAR (State Oil Company of the This report is also available to download in PDF or HTML format: General Motors Company Azerbaijan Republic) Standard Chartered Bank http://www.weforum.org/am15/report/pdf

44 World Economic Forum Annual Meeting 2015 The New Global Context 45 Upcoming Meetings

World Economic Forum on East Asia Jakarta, Indonesia 19-21 April 2015

Marking a return to Indonesia after three years, the 24th World Economic Forum on East Asia will be held in Jakarta just months after the inauguration of Indonesia’s third democratically elected government, under the leadership of President Joko Widodo. In this context, the meeting will be an ideal platform for senior decision-makers from different sectors to explore how enhancing trust can improve regional cooperation and advance critical decisions for accelerating sustainable socio- economic development. For more information, email: [email protected]

World Economic Forum on Latin America Riviera Maya, Mexico 6-8 May 2015

The World Economic Forum on Latin America returns to Mexico to collaborate in the region’s transition to long-term economic growth and social development. Mexico, one of the leading economies in Latin America and current holder of the pro-tempore presidency of the Pacific Alliance, has made advances on a variety of critical reforms, which are already opening new opportunities. The meeting will provide an ideal platform for committed decision-makers to set a bold renovation agenda and take the initiative on the new generation of Latin American investments and transformational projects. For more information, email: [email protected]

World Economic Forum on the Middle East and North Africa Dead Sea, Jordan 21-23 May 2015

Convening under the theme, Shaping a New Strategic Context, more than 800 government, business and civil society leaders from more than 50 countries are expected to participate. Taking place at a pivotal time, the meeting will particularly focus on new developments and institution- building efforts of countries in the Levant and North Africa, which are creating important momentum for regional and cross-regional trade and investment with countries of the Gulf Cooperation Council, as well as with the United States, Europe and Asia. For more information, email [email protected]

World Economic Forum on Africa Cape Town, South Africa 3-5 June 2015

In 2015, the World Economic Forum on Africa marks 25 years of change in the continent. Over the past decade and a half, Africa has demonstrated a remarkable economic turnaround, growing two to three percentage points faster than global GDP. The meeting will convene regional and global leaders from business, government and civil society to take stock of progress over the past 25 years, share insights on the present landscape and identify innovative approaches to accelerate inclusive growth while bringing about sustainable development in the future. For more information, email: [email protected]

Annual Meeting of the New Champions 2015 Dalian, People’s Republic of China 9-11 September

The ninth Annual Meeting of the New Champions convenes the next generation of fast-growing enterprises shaping the future of business and society, and leaders from major multinationals as well as government, media, academia and civil society. A community of more than 1,500 participants from over 90 countries will participate in the foremost global gathering on science, technology and innovation, which addresses today’s unprecedented set of intertwined global challenges – economic, political, societal and environmental. For more information, email: [email protected]

For a full list of upcoming meetings, visit the World Economic Forum’s website: www.weforum.org

46 World Economic Forum Annual Meeting 2015 The World Economic Forum is an international institution committed to improving the state of the world through public-private cooperation in the spirit of global citizenship. It engages with business, political, academic and other leaders of society to shape global, regional and industry agendas.

Incorporated as a not-for-profit foundation in 1971 and headquartered in Geneva, Switzerland, the Forum is independent, impartial and not tied to any interests. It cooperates closely with all leading international organizations.

World Economic Forum 91–93 route de la Capite CH-1223 Cologny/Geneva Switzerland Tel.: +41 (0) 22 869 1212 Fax: +41 (0) 22 786 2744 [email protected] www.weforum.org