By Lea Pachta
“If Davos Wants To Run The World, IT Has To Show Some Leadership” says Michael Green, Economist And Author Of Philanthrocapitalism.
Next week business leaders and policy makers from around the world will be gathering in Davos for the World Economic Forum (WEF). The agenda will be dominated by the financial crisis and how the world can emerge out of this mess.
“After the failure at Copenhagen and with the G20 stalemated, Davos has an opportunity and responsibility to break the logjam in the reform of the global economy. If Davos wants to run the world, it has to show some leadership”, says economist and author of Philanthrocapitalism Michael Green.
Participants at the WEF pondering its plans for a ‘global redesign’ will come from a broad range of stakeholders, not just heads of state and captains of industry. The WEF is uniquely placed to cut through the bluster and set an agenda for change. This year more than ever, the WEF needs to use its freedom from tiresome diplomatic protocols to seize the opportunity in the crisis and to set an agenda for change. New thinking is needed on:
• Financial reform – we need to figure out a way to rewrite the rules in a way that makes our banks more responsible without tying them up in red tape.
• A new monetary order – the super-bubble that burst in September 2008 had been inflated by the endless supply of credit flowing into America from emerging economies running huge trade surpluses. The global economy is not out of the woods unless we can fix these imbalances in global finance.
• A ‘New Deal’ between the rich and the poor world – after the failure at Copenhagen we risk a global impasse where the poor won’t act because the rich won’t pay.
Michael Green is an economist and writer, based in London. Michael specialises in international finance and development issues. He has written for the New York Times, Washington Post, Foreign Policy, the Guardian and other publications. He is the co-author, with Matthew Bishop of the Economist, of Philanthrocapitalism.