The World Economic Forum in a nutshell.
The World Economic Forum consists of top financial developers in every sector of the economic world. These economic sectors consist of everything from technology, investments, to medical and private companies. All of which puts these financial powerhouses in a position to address the economic freedom of the world, in its entirety. They address everything from data, to the economic debt of specific countries and the possible effects of the world financial situation on neighboring countries. Now mind you, these individuals hold the power to make financial decisions that can effect every person on the planet and for 3 days in Davos-Klosters, Switzerland, from January 22 to January 25, 2014 they were all in one place. In the Davos Economic Forum of 2014 there were discussions in the Global Agenda that revolved around disturbances in the economic world and the impact of U.S debt ceiling, to name a few. The panel discussion of the Associated Press Davos Debate revolved around such issues as developing a plan to end extreme poverty world wide. In the following paragraphs we will touch on these key points of the World Economic Forum 2014.
The world economic news in every aspect was discussed in the world economic forum of 2014. I found key points in these discussion that bare repeating. Key points such as disturbances in the economic world that could have a ripple effect on the rest of world. Within this discussion was the input and opinion of top rated financial advisors and decision makers such as: Joseph Jimenez, the CEO of Novartis, which is medical related industry, Marissa Mayar the President and CEO of Yahoo, Kris Gopalakrishnan, President of the Confederation of Indian Industry, Geoff Cutmore the Anchor of CNBC, Judith Ronan the President of the Rockefeller Foundation, Jiang Jianging the Chairman of the Board with the Industrial and Commercial Bank of China and Christopher de Margerie French CEO of Total. This financial guru’s were set upon to discuss such issues as the Disturbances that could have effected the stability and growth of the financial industry in 2015 and the ripple effect of the U.S Debt Ceiling.
Issues Discussed - Global Warming
There were many more issues discussed such as gender equality, unemployment and even the effects of Global Warming. Which was an issue I found to be a bit a laughable. Not that the issue itself is humorous but it would seem that even the financial giants of the world agree that global warming is an issue yet the policy makers of the world are still debating if it is really an issue at all, they even go so far as to refute it’s existence. The effects of Global Warming are most certainly something that should be addressed but since they, as well as every other sector of global industry, could not seem to put forth a viable resolution.
US Debt Ceiling
Which is why I seemed most drawn to the global disturbances and the effects of the U.S debt ceiling. These are immediate issues that can and do have viable resolutions and I think it is safe to say that even though the resolutions are viable and immediate, law makers are yet to address it.
Unemployment, Financial Stability, Social Unrest
Within the disturbances addressed by these financial powerhouses most agreed that Unemployment, climate change, achieving financial stability, social unrest as well as technology and regulations were something that could have the biggest most lasting effects on our financial stability, globally. These are immediate issues but where the rate of unemployment as definitely decreased, there is still a vast amount of work to be done in that area to even come close to resolving the issue. Climate change is an issue that the law makers must agree even exists before change can effected. They also discussed the impact of the U.S Debt Ceiling on the global economy. This panel agreed that the U.S had to do away with short term resolutions and focus on a more lasting solution. Now, when financial giants get nervous and have such uncertainty about the U.S’s ability to resolve their debt ceiling so as to stabilize the world economy, that is something to be apprehensive about. Christopher de Margerie of the Total did state, however, that he was optimistic the United States would come up with a solution because envisioning the United States going bankrupt is unthinkable. Because, if the U.S. economy were to suffer that kind of blow it would cause the entire world economy to collapse.
Global Agenda - Poverty
Another panel had a separate discussion proceeding the The Global Agenda, which was the closing discussion panel of the World Economic Forum of 2014, this panel was the a debate of The Associated Press. This panel consisted of activists such as Bono from the group U2 and several members of the United Nations. This panel discussed issues such as: ending extreme poverty, Transforming economics for jobs and inclusive growth, building peace, open and accountable institutions, to name a few. The one issue that seemed to embrace the entire discussion was the ending of extreme poverty, stating such facts as, regardless of the efforts and the statistics wrapped around unemployment, there still remained over 1 million people in the world living with under $1.25 per day. I’m a writer and even I think that’s extreme. Could you imagine, living with under $1.25 per day. That, to me, is impossible. That wouldn’t cover a meal, well enough a home, electricity, water, clothing and personal needs. Essentially, there are over 1 million people on the face of the earth who are merely, existing and barely so. Tidjane Thiam the CEO of Britian Insurer Prudential said it eloquently that those 1 million living is that extreme level of poverty are “the faces of our shame”. Ngozi Okonjo-Iweala who hold a seat with the United Nations and is the Financial Minister of Nigeria had valid points to add to the discussion. Points such as, “there has to be total accountability for both government and private sector” companies in order to enable this movement to come into fruition. Iweala also seemed to agree with Bono that the “poor need to be consulted” with the theory regarding the solution of this dilemma. They have to have viable, life sustaining solution otherwise they are useless and could cost the world billions of dollars in lost revenue. It was, however, comforting to hear the panel agree that the majority of people living in such squaller really did want to be a part of solution and merely wanted to work in areas that allowed them to make a living and dignity. Considering, I’m fairly positive that those living in those conditions are not looking for a such short term resolution as a hand out or charity. This will only fix the issue for a moment, not for a lifetime. The creation of jobs in a top priority world wide. Because, to ensure that an economy is sustainable there has to be a balance of good and services and consumers in which these goods and services can benefit and have the means in which to contribute to the global economy. Granted unemployment rates have gone down drastically in the last few years. But, unfortunately the law makers contribute this unemployment rate to people assuming productive roles instead of the obvious, their unemployment benefits ran out. Which is where they draw their statistics from [the rate of those drawing unemployment benefits against the last census].
It’s heartwarming to know that those in the finance industry take such an interest in the common man. But, we all know that that is a self serving interest. For the financial industry needs consumers in order to thrive. The above paragraphs discussed the Global Agenda for 2014 and the panels thoughts on global financial disturbances and the effects the U.S debt ceiling would have on the global economy. The debate of the panel with the Davos Debate of the Associated Press touched on issues as Extreme poverty and many other subjects of interest that, could and most emphatically will, have an impact on the finances of the world. These issues were discussed among financial guru’s, giants, activists and powerhouses of the financial community. Hopefully, they can help our law makers come to consensus on how to deal with these issues so as to avoid another possible depression, which could also cause social unrest in the U.S and other neighboring countries. Because, with poverty comes desperation, criminal content and even revolution or civil war should the matter continue to go unresolved. No one can function at that level of uncertainty. I know I sure couldn’t