Leaders gather in Riyadh to propose global solutions to G20

Keynote speaker Carlos Ghosn, President and CEO Nissan Motors, started the day talking about the current financial crisis and how this has affected the global car industry. He also discussed competitiveness and how corporations must focus on building trust among all stakeholders in order to be sustainable.

When asked whether he felt financial bailouts work Mr Ghosn said, "We need to distinguish between bailouts that are intended to overcome the hiatus of the financial system and provide access to essential credit facilities for industries, like the automotive industry, that rely upon reasonably priced credit facilities to maintain operations and those bailouts that are compensating for a lack of competitiveness. The former is absolutely necessary and appears to be working. The latter is not a sustainable use of funds."

Mr Ghosn went on to talk about oil prices and their impact on the development of zero emission vehicles such as electric cars. Mr Ghosn said of oil prices, "No one has been able to accurately forecast oil prices, but based upon our analysis we expect prices to increase, probably towards $80 per barrel. At this price the development of substitutes will become economical."

Fellow panellist, Airbus CEO Tom Enders, drew parallels between the car industry and the aviation industry and suggested that solutions to the current economic crisis required a coordinated approach between governments. Mr Enders stated that, "We need a clear indication from governments that they wish to strip out regulation and operate free markets and need to see the Doha round [of trade negotiations] concluded."

GCF 2009, under the patronage of His Majesty the Custodian of the Two Holy Mosques His Majesty King Abdullah Bin Abdulaziz and organised by Saudi Arabian General Investment Authority (SAGIA), seeks to foster debate and discussion around a central theme of responsible competitiveness. More than 100 leaders have gathered to discuss a diverse array of leadership issues.

Fahd Hamidaddin, General Director Marketing and Communications at SAGIA, started today's forum by announcing that, "As part of our efforts to use this debate and launch initiatives in support of competitiveness, we plan to draft an open letter to the G20 ahead of their follow up meeting in April, which captures the essence of our discussions in the next few days and proposes a way forward."

As part of the debates the more than 1,000 delegates have been asked to vote on various questions relating to sustainable competitiveness. Three questions were asked of delegates on day one. The first asked what companies should do to become more responsible. 31% of delegates voted that corporations should be more accountable to shareholders, 25% said that they should treat their employees more equitably and 44% suggested that they should seek to minimise impact on environment.

In a second round of voting 71% of delegates agreed that governments should encourage their citizens to change their diet in light of the food crisis and 29% disagreed.

Speaking at the conference, SAGIA Governor His Excellency Amr Al Dabbagh, observed that, "Already at this conference we have seen some interesting comments made by the speakers and during the panel discussions. The clear message from day one seems to be that a multilateral approach involving governments and the private sector is required to avert the current economic crisis."

In a final vote of the day 71% of delegates agreed that education in the arts help foster country competitiveness, while 29% disagreed.
Other panellists during the first day of the GCF 2009 included Peter Brabeck-Lemathe, CEO of Nestle SA; William Amelio, President & CEO, Lenovo; Angel Cabrera, President, Thunderbird School of Global Management; H.E. Mohammad Hassan Omran, Chairman Emirates Telecommunications Corporation Etisalat; Rajat Gupta, Senior Partner Emeritus, McKinsey & Company; Paolo Scaroni, CEO ENI S.p.a.; Gertjan Lankhorst, CEO Gas Terra; Bjorn Stigson, President World Business Council for Sustainable Development; Markus Brehler, CEO & Founder of Enocean; Thorleif Enger, Former President and CEO Yara International ASA; Magatte Wade-Marchand, Co-Founder & President Adina For Life; James Barret, Executive Director of Redefining Progress; Jim Clifton, Chairman & CEO of Gallup Organisation; Michael Kaiser, President of John F Kennedy Center for the Performing Arts; Said Eigner, Chairman of Lonworld. The day was moderated by Al Jazeera presenter, Riz Khan.