How to properly manage globalization
By Helmut Maier-Mannhart
MUNICH (DPA): The annual G-7 summit of the world's most influential industrial nations, sometimes dubbed the G-8 when recent addition Russia is involved, has always proved to be something of a spectacular. At least in logistical terms.
The fact that heads of state and government of such important countries spend two days discussing the global economic situation under the gaze of the world's media cannot fail to instill a modicum of respect -- even if the results are scarcely worth reporting.
But what is a summit of this limited nature compared to the World Economic Forum (WEF) in Davos, nestling in the mountains of Switzerland? The forum, which runs from Thursday through to Feb. 2, will attract 40 heads of state, around 1,000 business leaders, 300 scientists and, last but not least, 250 journalists.
But what of the scathing voices that declaim the WEF as nothing but an excuse to go skiing at the taxpayers' expense, and an opportunity for the peacocks of world politics to strut before the world's cameras. That, after all is said, it is an outdated spectacle?
Yet, in its 29 years of existence, the WEF has lost nothing of its attraction. It is characterized by the chance it offers for an informal exchange of views, an uncomplicated way for delegates to "network" with each other -- in short, the "spirit of Davos" gives everyone the feeling that they are somehow involved in shaping the world we live in.
In view of the problems in all corners of the globe, it is no wonder that the WEF's founder and president Klaus Schwab has again chosen the global aspects of the economy as his theme this year.
"Responsible Globality: Managing the Impact of Globalization" is the WEF's grand title this year. Under that catch-all slogan, there will be a plethora of meetings, sessions, symposia and press conferences to discuss how best to deal with the effects of globalization. Politicians of the stature of U.S. Vice President Al Gore will be handling these considerations.
Gore, together with the German President Roman Herzog, will open this year's forum. Much of the talking will center on the topics of Europe and the euro.
The subject of the future role of the "Old World" will be discussed by a Who's Who of European grandees: Germany's Chancellor Gerhard Schroeder, Foreign Minister Joschka Fischer and Finance Minister Oskar Lafontaine; France's finance and economics minister, the "superminister" Dominique Strauss-Kahn; European Union President Jacques Santer and European Central Bank president Wim Duisenberg, to name but a few.
The question on the best methods to re-establish confidence and growth in Asia will be handled by, among others, Malaysian Prime Minister Mahathir Mohamad, together with his former opposite number in Singapore, Lee Kuan Yew, and Hong Kong Chief Executive Tung Chee Hwa.
The role of the United States is also up for debate -- particularly its foreign policy considerations and its responsibility as the sole remaining superpower. Besides Gore, Treasury Secretary Robert Rubin and Trade Representative Charlene Barshefsky will be discussing this theme.
Perhaps the greatest interest will be generated by the big topic now in the economic news: Brazil and the consequences of its recent currency plunge. While a sizable number of ministers from South American countries will be involved, most observers will be keen to hear Brazilian Finance Minister Pedro Sampaio Malan's views on the subject.
The forum would, of course, not be complete without the attendance of representatives of international organizations, such as the World Bank's managing director Stanley Fischer or its vice-president, Joseph E. Stiglitz.
In the space of five days, this community of world leaders will ponder over the world's future course under the shadow of the Swiss Alps. While they will not come up with any miracle cures, they will be able to exchange a great deal of information.
And although the close of the meeting never produces any tangible decisions, it does usually provide some very interesting findings.