The London Conference 2014 Globalization and World Order Conference Report October 2014
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Conference Report October 2014 The London Conference 2014 Globalization and World Order Conference Report October 2014 The London Conference 2014 Globalization and World Order Chatham House, the Royal Institute of International Affairs, is an independent policy institute based in London. Our mission is to help build a sustainably secure, prosperous and just world. The Royal Institute of International Affairs ISBN 978 1 78413 023 7 Chatham House A catalogue record for this title is available from the British Library. 10 St James’s Square London SW1Y 4LE Cover image © Sean Randall/Getty T: +44 (0) 20 7957 5700 Typeset by Soapbox, www.soapbox.co.uk F: + 44 (0) 20 7957 5710 www.chathamhouse.org Charity Registration No. 208223 © The Royal Institute of International Affairs, 2014 Chatham House, the Royal Institute of International Affairs, does not express opinions of its own. The opinions expressed in this publication are the responsibility of the authors. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical including photocopying, recording or any information storage or retrieval system, without the prior written permission of the copyright holder. Please direct all enquiries to the publishers. Chatham House Contents Foreword iv I The Conference 1 Programme 2 Steering Group Members 4 Sponsors 5 Conference Participants 6 II Key Conclusions 10 International Order in 2014: A Loss of Trust Robin Niblett 11 Key Points of Discussion 13 III Background Papers 18 1 Globalization and World Order: 1914 vs 2014 19 2 Globalization: Winners and Losers 23 3 Power and Governance in the Digital Age 27 4 Resource Security and Geopolitics 31 5 What Now? First Steps Towards a Rebalanced World 35 Chatham House | iii Foreword This report serves as a record of the inaugural London The report itself opens with a short essay which explores Conference on Globalization and World Order, convened one of the main conclusions of the conference: the loss by Chatham House on 2–3 June 2014 at Lancaster House of trust that appears to be permeating relationships in London. between governments, and between governments and their citizens, as a result of the pressures they are all The London Conference has three aims: to be under from the process of globalization. This is followed comprehensive in debating how best to manage the by the key insights from each of the five main sessions profound economic and political rebalancing taking place of the conference on 3 June. across the world; to go behind the headlines and debate the trends underlying and connecting current events; The final section brings together the five papers written and to build an international community of experts by members of Chatham House’s in-house research with a shared understanding of the major challenges teams in advance of the conference in order to stimulate accompanying globalization. participants’ thinking. Even following an eventful six months since these were written, their insights This inaugural conference was fortunate to draw together and proposals retain an important salience for the future. high-quality speakers for each session, who offered perspectives reflecting their geographic and sectoral I would like to thank the institute’s Conferences and Events diversity. It benefited enormously from the ideas for teams, as well as staff from the research departments, all themes, speakers and participants suggested by its of whom contributed to the success of the conference. I am steering committee. The conference would not have especially grateful to Catherine O’Keeffe, Deputy Director been possible without the generous support of its two for Events, and Laurel Louden, Events Manager, who helped founding partners – Accenture and Chevron – and its develop and organize the inaugural London Conference. supporting sponsors – Bloomberg and Rio Tinto – as well We look forward to hosting the second London Conference as the generous cooperation that we received from the on 1–2 June 2015. Foreign & Commonwealth Office in hosting the event at the historic Lancaster House in St James’s. And the quality of the debate, insights and ideas generated over the course Robin Niblett of the conference was driven largely by the input from its Director 200 participants. Steering committee members, sponsors and participants are all listed in the next section, along September 2014 with speakers’ details and the conference programme. iv | Chatham House The London Conference 2014 I. The Conference Chatham House | 1 Programme Lancaster House, London: Monday 2–Tuesday 3 June 2014 Monday 2 June Session Two | Globalization: Winners and Losers 1900–2200 Pre-conference dinner and discussion | Current 1000–1115 Political Crises and the Global Balance of Power • How can national social contracts be adapted to the changing international division of labour, evolving production networks and trade trends in the Panellists developed and emerging economies? Dr Bassma Kodmani Executive Director, • How can the trade agenda be advanced to encourage Arab Reform Initiative well-functioning global markets that support prosperity and reduce inequality? Can regional trade Orysia Lutsevych Research Fellow, blocs be leveraged to enhance this agenda? Russia and Eurasia Programme, Chatham House • What could reduce the tension between transnational James Nixey Head, Russia and Eurasia Programme, forces and national politics to help populations adapt Chatham House to the forces of globalization? To what extent can Dr Surin Pitsuwan ASEAN Secretary-General (2008–12) migration provide a solution? • How can the systems upon which economic integration relies – international transport, open digital Tuesday 3 June 2014 communications, well-regulated financial markets and international law – be reinforced and guarded? Session One | Globalization and World Order: 1914 vs 2014 Panellists 0900–1000 Ziad Bahaa-Eldin Former Interim Deputy Prime Minister, Egypt • What is different about globalization in 2014 compared with 1914? Obiageli Ezekwesili Senior Economic Adviser, Africa Economic Development Policy Initiative, Open Society • Is world order now influenced more by economic Foundations interdependence than by geopolitical competition and military power? Or is conflict as great a risk as ever? Leo Puri Managing Director, UTI Asset Management Co • Is the rise of the middle class in the emerging Sir Michael Rake Chairman, BT Group economies the most significant global geo-economic Moderator: Jim O’Neill Economist shift of our time? How will it affect the global balance of political power? • What steps can existing and emerging world powers Session Three | Power and Governance take to focus on the pursuit of opportunities rather in the Digital Age than on the defence of national interests? 1145–1300 Panellists • Can the principle of open and equal access to the internet survive commercial and political pressures Alyson Bailes Adjunct Professor, University of Iceland for control? Harold James Professor of History, Princeton University • How can governments shape their use of the internet Ruan Zongze Vice President, China Institute of to enhance good governance and citizenship? International Studies • What is needed to ensure that innovation remains a Sam Walsh CEO, Rio Tinto defining feature of digital life in the face of increasing moves for control? Moderator: Robin Niblett Director, Chatham House • What are the best governance models for the internet? 2 | Chatham House The London Conference 2014 Programme Panellists 1550–1630 In conversation with Rt Hon William Hague, Hu Yong Associate Professor, Peking University School of UK Foreign Secretary Journalism and Communication Moderator: Robin Niblett Director, Chatham House Marietje Schaake Member of the European Parliament Mark Spelman Managing Director, Accenture Session Five | What Now? First Steps Towards Emily Taylor Emily Taylor Consultancy a Rebalanced World Moderator: Nik Gowing Television Journalist 1630–1745 1300–1415 • How might current multilateral structures such as Lunch the UN and the World Bank adapt to deal successfully with global challenges such as climate change, nuclear proliferation and international trade? Session Four | Resource Security and Geopolitics • What other structures could emerge to deal successfully with these challenges? How formal and all-inclusive do they need to be? 1415–1530 • To what extent will non-state actors become better able • How can governments and companies best reduce than states and international organizations to develop counterproductive competition over access to critical a new form of international collaboration? Will they resources? need the legitimization of states to be effective? • What is the right balance between government-led and market-driven solutions to current resource Panellists insecurity? R Nicholas Burns Professor of International Relations, • What can be done to accelerate the global deployment Harvard Kennedy School of Government of resource-efficient, clean technology and resource price reform? Jan Eliasson Deputy Secretary-General, United Nations • What forums could be created to act as a John Kufuor Former President, Ghana and UN Special counterweight to resource nationalism, strengthen Representative on Climate Change sustainable resource management and mitigate the Kevin Rudd Former Prime Minister, Australia global effects of their increased consumption? Who should take part in such forums? Moderator: Ngaire Woods Professor of Global Economic