GCF: Sustainable recovery will require fundamental transformation in commerce and public policy

Keynote speaker, Jean Chrétien, 20th Prime Minister of Canada, opened discussions, drawing from his experience as former Prime Minister of Canada, to emphasize the importance of confidence and hope in overcoming economic difficulty. "It was a big tragedy," Mr. Chrétien said of the collapse of the United States' investment banking sector in 2008, "but it was predicable. It was inevitable." Mr. Chrétien emphasized the need for government officials to embrace fairness and transparency in developing policies to alleviate the current economic contraction.

Subsequently, the innovation panel noted innovation's paradoxical role in fostering speculative bubbles even as it drives underlying prosperity growth. Fostering innovation in the new frontiers of knowledge—nanotechnology, biotechnology, artificial intelligence, and green energy—crucially involves managing it responsibly, including rethinking how research is funded, shared, and commercialized. Innovation is possible even in poor countries, with government support.

His Excellency Dr. Mohammed Al-Suwalyei, President, King Abdulaziz City for Science and Technology, said, "Innovation isn't something you can buy off the shelf. Some governments have realized this and have embarked on plans to drive innovation. In Saudi Arabia we have embarked on a 20-year strategy to create an economic eco-system by pursuing a vigorous scholarship programme to send our talented youngsters around the world to educate them and give them the experience needed to drive innovation forward."

Panelists discussed whether infrastructure investment was one path to recovery from the current global crisis. Mark Fuller, Chairman of Monitor Group stated that in times of crisis and hardship, people often turn to fundamentals such as infrastructure. "Infrastructure and infrastructure investment is critical to competitiveness. It also provides a wonderful avenue to help the disadvantaged, not just by creating jobs, but by providing better quality of life. Infrastructure investment can create a benign cycle which goes in the right direction."

Panelists in a discussion on climate change agreed, that it is a challenge "too hot not to handle." With energy demands set to double to 2050, achieving environmental sustainability requires a dramatic, fourfold reduction in the world's carbon intensity, the ratio of carbon emissions to gross domestic product. Building a green economy requires action on a number of fronts. In the short-term, existing technologies, better management and additional R&D should be deployed to reduce energy waste. Longer-term, investments should seek to replace wasteful legacy technologies and adopt green electricity generation. Regulations and incentives to reduce carbon emissions will be crucial to facilitating this transformation. Though it is the world's largest petroleum exporter, panelists noted that Saudi Arabia will be on the forefront of energy transformation.

A discussion on the risks facing the economy in 2009 raised the prospect of rapidly rising unemployment if economic stimulus packages are unsuccessful and a lack of liquidity continues to erode business confidence. One participant, Peter Schiff of Euro Pacific Capital, challenged Saudi Arabia, a major creditor of the United States Treasury, to reconsider the wisdom of funding billions of dollars in wasteful consumer spending in a country with ballooning foreign liabilities.
GCF 2009 is delighted to announce that Saudi Arabia's National Commercial Bank has been named as the winners of the King Khaled Responsible Competitiveness Award. These awards are given to the top three companies based on the benchmarks set by the Saudi Responsible Competitiveness Index (RCI). This means the companies that adopt the most efficient programmes to support sustainable social, economic, and environmental development.

GCF 2009, under the patronage of His Majesty the Custodian of the Two Holy Mosques His Majesty King Abdullah Bin Abdulaziz, seeks to foster debate and discussion around a central theme of responsible competitiveness.

SAGIA's Governor, His Excellency Amr Al Dabbagh, commented, "Today's messages are clear in that we have to make our governments more efficient in promoting business and competitiveness. Investment in well planned infrastructure projects, both great and small, may offer long-term growth and quality-of-life improvements. The financial crisis may result in governments playing a more active role in business but it is important that a balance is struck between regulation and corporate responsibility. It is encouraging that the green agenda is at the forefront of thinking as it is imperative to keep in mind the impact our businesses have on future generations."

Other panellists during the second day of GCF 2009 included Stéphane Garelli, Professor at IMD and the University of Lausanne and Director, World Competitiveness Centre; Dr. Don Thornhill, Chairman, National Competitiveness Council of Ireland; Deborah L. Wince-Smith, President, US Council on Competitiveness; Dr. Wilhelm Bender, Chairman of the Executive Board, Fraport AG; Mark Fuller, Chairman, Monitor Group; Bruno Lafont, Chairman and CEO, Lafarge; Ralph Peterson, Chairman and CEO, CH2M Hill Companies Ltd; Markus Brehler, CEO and Founder, Enocean; Peter Rosen, CEO, Bovince Ltd; Jean-Pascal Tricoire, CEO Schneider Electric; Christine Todd Whitman, Former Governor of New Jersey and Administrator of EPA; Herbert-Michael Zapf, President & CEO, International Post Corporation; Dr. Philip Campbell, Editor in Chief, Nature Magazine; George Gruner, Founder and CSO, Unidym; Dr Michio Kaku, Theoretical Physicist, Professor, Best Selling Author; Nandan Nilekani, Executive Chairman, Infosys Technologies Ltd; Peter Schatz, CEO, Quiagen; HE Dr Mohammed Al-Suwaiyel, President, King Abdulaziz City for Science and Technology; Kap-Soo, Suh, Chairman and Founder, KTIC; Lori Bonn, Founder and CEO, Bonnventures; Aron Cramer, President and CEO, Business for Social Responsibility; Maria Otero, President and CEO, ACCION Inernational; Gary WInnick, Chairman of the Board, Pacific Capital Group, Inc; Dr. Shumeet Banerji, CEO, Booz and Company; Peter Kurer, Chairman, UBS AG; Peter Schwartz, Chairman, Global Business Network; Jim Quigley, CEO, Deloitte Touche Tohmatsu; Peter Schiff, President and Chief Strategist for Euro Pacific Capital. The day was moderated by Laura Tyson, Professor of Business Administration at the University of Berkeley in California.