WORLD ECONOMIC FORUM

Annual Meeting 2006

The Creative Imperative

Davos, Switzerland 25-29 January
INSIGHTS
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 Contents

Preface 3

Foreword 4

The Emergence of China and India 7

The Changing Economic Landscape 10

New Mindsets and Changing Attitudes 14

Creating Future Jobs 16

Regional Identities and Struggles 18

Responding to Global Challenges 20

The Creative Imperative – Responses 23

Acknowledgements 25

1
World Economic Forum Annual Meeting 2006
 Preface

The World Economic Forum Annual Meeting 2006 offered participants a great opportunity to
better understand those issues influencing society and business over the year ahead – and
beyond.

Starting from the premise that the world community is at a turning point given the pace of
change, the global nature of the challenges we face and the need for new responses, the
theme “The Creative Imperative” provided this Annual Meeting with a solutions-driven
impetus.

Participants discussed how the assumptions, tools and frameworks that business,
government and civil society leaders have employed to make decisions over the past decades
now appear inadequate. Be it to address income disparities, climate change, job creation or
to build design strategy in organizations, discussions centred on how leaders and their
institutions can adopt more collaborative approaches to resolving issues – and the need to
improve the capacity to adapt to a new emerging environment. Moreover, it was agreed that
to successfully meet the challenges we face will require greater emphasis on human
imagination, innovation and creativity.

Once again, the Meeting drew leaders from business, government, international institutions,
non-governmental organizations, universities and other communities. This year’s Meeting also
saw valuable and innovative contributions from a strong contingent of Young Global Leaders.
Together with our Members and Partners, we look forward to continuing to drive the Global
Agenda forward in a creative and constructive fashion, taking up the findings from Davos in
our regional meetings, through Forum initiatives and industry activities over the coming year.

Klaus Schwab
Founder and Executive Chairman

The Forum would once again like to take this opportunity to thank the Annual Meeting
Co-Chairs, each of whom provided invaluable support to the proceedings, bringing a
distinguished background in business and public service to the discussions. They were:

Mukesh D. Ambani, Chairman, Reliance Industries Limited, India

Peter Brabeck-Letmathe, Chairman and Chief Executive Officer, Nestlé, Switzerland;
Member of the Foundation Board of the World Economic Forum
Sir Martin Sorrell, Group Chief Executive, WPP, United Kingdom
Lawrence H. Summers, President, Harvard University, USA

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World Economic Forum Annual Meeting 2006
 Foreword – The Creative Imperative

“We need to remove obstacles. We have to open the windows; we have to breathe deeply the
fresh air. And we have to seize the opportunities.”
Angela Merkel, Federal Chancellor of Germany

The confluence of mood and world events, made discussions at this year’s Annual
Meeting even more focused than usual. With over 240 sessions covering eight sub-
themes and involving leaders from business, government, international
organizations and many other communities, participants sought to apply fresh
thinking to pressing global challenges.

The eight sub-themes of the Annual Meeting 2006 comprised five challenges and
three responses. The challenges include the Emergence of China and India, the
Challenging Economic Landscape, New Mindsets and Changing Attitudes, Creating
Future Jobs, and Regional Identities and Struggles. The responses include Building
Trust in Public and Private Institutions, Effective Leadership in Managing Global
Risks and Creativity, Design Strategy. In this foreword, we highlight key messages
emerging from participants on these eight sub-themes. Following this, we further
delve into each theme concerning each of the five challenges and then separately
consider the three responses.

The Emergence of China and India The Changing Economic Landscape

“The story has moved
beyond GDP growth rates…
the emergence of China and
India gives the world an
opportunity to experiment
and make sure that there is
equitable wealth
generation.”
Mukesh D. Ambani, Chairman
and Managing Director,
Reliance Industries Limited
These two very
different, yet rapidly
growing countries face enormous challenges as
they restructure and integrate their economies into
the global system. For China to continue to grow it
must expand domestic demand, reduce its reliance
on exports and foreign direct investment for growth
and further reform financial systems so consumers
can spend some of their savings and privately held
businesses can finance their growth. Consequently,
the government will need to find a balance between
structural reforms, social equity and statist control.
India continues to face poor infrastructure,
deregulation and bureaucratic corruption. It may be
the “fastest growing free market democracy” the
world has ever known, but its leadership must
respond rapidly to create jobs and reduce income
disparities.
4
“Two things move the world, and
two things move economies: hope
and fear. In the short run in financial
markets I fear that we have too
much hope and too little fear.”
Lawrence H. Summers, President,
Harvard University
Given US influence on the
global economy, its current
account deficit of 5.7% of
GDP in 2004 or US$ 666
billion, continues to concern
policy-makers in Washington DC and abroad.
China’s economy is still too small to counter a
possible US slowdown, and Europe and Japan,
while perhaps improving, are currently too slow-
growing to drive the global economy forward.
Moreover, the major economies are struggling to
keep fiscal promises as their pension and healthcare
bills grow. Inequities in trade and increased
competition for natural resources mean risk is rising
– especially to the environment. While the world
economy has proven resilient enough to absorb a
sustained US$ 60 a barrel for oil, participants were
quick to agree, if prices rise further and stay high,
the effects will hurt.
World Economic Forum Annual Meeting 2006
 Foreword – The Creative Imperative
New Mindsets and Changing Attitudes
“I have been seeking to
change … the mindset
that international
relations are nothing
more than relations
between states, and the
United Nations is little
more than a trade union
for governments.”
Kofi Annan, Secretary-
General, United Nations
The 21st century will
be about managing the implications of a
shrinking yet more fragmented and complex
world. Individual states have less influence than
in the past and are subject to the wider interests
of regional or economic groupings. Institutional
frameworks designed to respond to cold war
threats are not appropriate to deal with global
warming, international terrorism or poverty
reduction. Leaders themselves will need to learn
or re-learn skills if they are to drive organizations
to innovate and adopt new ideas. For policy-
makers in the developed and developing world
the challenge will be to create educational
curricula that will provide today’s youth with the
tools they will need tomorrow.
Creating Future Jobs
“Cities like Shanghai are
saying, ‘We need 20,000
experts right now and if
you can find them abroad,
we’ll give them work
permits’. They are doing
the first – that I’ve seen
worldwide – rigorous
forecasting of skill
requirements and …
channelling people into the
right vocational skill lines
for future requirements.”
David Arkless, Executive Board Member, Manpower
World Economic Forum Annual Meeting 2006
The challenge for many countries is not only
what new jobs they create, but also how these
jobs translate into livelihoods. And with the total
global workforce having doubled over the last
five years, pressure on wages is likely to
continue. So where are the jobs of the future?
With fiscal budgets already stretched, they are
unlikely to come from the public sector. But
policy-makers can play an important role in
providing the environment for the private sector
to create jobs. More generally, both developed
and developing countries will need to re-examine
education strategies to build the skills necessary
for the future.
Regional Identities and Struggles
“The challenge that has
dominated the headlines
is … a minority group of
extremist Muslims who
have taken upon
themselves to distort
Islam in order to justify
violent action… And I
think this has led the
Muslim world to a very
critical crossroads of
self-evaluation and self-
definition and to really
look at what it is that we stand for. And this has led to a
reaffirmation of the basic principles of Islam.”
H.M. Queen Rania of the Hashemite Kingdom of Jordan
Closing regional income gaps will require regional
cooperation, coordination and compromise.
Trade is key but targeted investment in
infrastructure, education and easier access to
capital are also important concerns. But, without
geopolitical stability, regional cooperation efforts
will be hampered. The Hamas election victory
sparked reactions from many, though some saw
this as a moment to trigger change. However,
Iran, whose absence from the meeting served to
accentuate the gravity of the current situation,
drew most attention. Experts warned that,
whatever the outcome, the consequences for
the region and the international community will
be significant.
5
 Foreword – The Creative Imperative
And from Where Will Responses Come?
… Through Building Trust in Public and Private
Institutions
“The unfortunate thing is
that companies haven’t
done a good job of building
the [public’s] trust by
managing themselves in a
positive way.”
Michael E. Porter, Bishop
William Lawrence University
Professor, Harvard Business
School
Evidence shows public
disenchantment and
mistrust of institutions and business is growing. In
the developing world, corruption and inefficiency
threaten to overwhelm trust. In industrial countries,
economic change spurs fears of a broken social
contract. If not addressed through truly collaborative
solutions, global leaders face a potential political
backlash.
… Through Effective Leadership in Managing
Global Risks
“The basic ingredient of a
leader, I personally feel, is
that he should never panic…
whatever the problems,
whatever the
circumstances…”
Pervez Musharraf, President of
Pakistan
In a globalized world,
risks cannot be dealt
with in isolation.
Despite increased
attention and some success in mitigating, if not
preventing calamity, new risk frameworks are still in
their infancy. Recent natural disasters in Asia or the
US and public concern about pandemics, are
further proof that today’s international institutions
and frameworks are not designed to respond to the
nature, or the frequency, of the risks that lie ahead.
What is clear is that the way in which organizations
mitigate, manage and respond to risk is a source of
differentiation.
6
“Do we need to worry? Of
course we need to worry ...
We know that terrorists are
highly sophisticated and are
interested in acquiring
nuclear weapons or nuclear
material ... What you have to
do is simply to cross your
fingers and prioritize.”
Mohamed M. ElBaradei, Director-
General, International Atomic
Energy Agency
… Through Innovation, Creativity and Design
Strategy
“Today, if you don’t innovate,
you’re just going to die.”
Barry S. Sternlicht, Chairman and
Chief Executive Officer, Starwood
Capital Group
Finally, the frameworks
and assumptions upon
which leaders in
business and
government have long
depended to make
decisions are no longer
adequate. The economic and political context in
which businesses and government institutions seek
to compete or otherwise serve their constituents
has fundamentally altered; new models, new leaders
and new mindsets are necessary. As the world
reacts to a new emerging architecture and creativity
increasingly drives the economy, tomorrow’s leading
companies and institutions will be those who seize
the courage and capability to adapt.
World Economic Forum Annual Meeting 2006
 The Emergence of China and India
“China cannot achieve
development in isolation of
the rest of the world, and
the world needs China for
development.”
Zeng Peiyan
Vice-Premier of the People’s
Republic of China
China and India are at inflection points in their
development requiring them to sustain economic
development, in particular to manage natural
resource consumption and environmental
degradation.
• China is focusing more on stimulating domestic
demand and reducing its reliance on exports
and foreign direct investment to drive growth.
• India must deal with structural problems such as
poor infrastructure, deregulation and
bureaucratic tangles that could hamper its
ambitions to achieve growth at par with China.
• Retail and manufacturing sectors are in need of
attention.
• Failure to address obstacles to sustainability,
stability and global integration will not only set
China and India back but will also aggravate
global imbalances.
That China and India have emerged as drivers of
global growth is nothing new. These economies
each with one-billion-plus populations are set to
grow by over 6% and 8% a year respectively for
the near to medium term. China is already an
integral part of the global supply chain; India has
become a dominant player in outsourcing services.
World Economic Forum Annual Meeting 2006
Participants went beyond conventional wisdom to
consider long-term problems for China and India
that require innovative solutions, namely the quality
and sustainability of growth models, creating jobs,
maintaining stability, eradicating corruption and
better integrating into the global system.
These issues are closely connected. Better
integration with the rest of the world will enable
both to achieve more balanced, diversified growth
and transform them into more efficient economies,
more inclusive societies, and more responsible
and responsive members of the international
community. Adopting sustainable development
policies to promote social equity, a cleaner
environment and economic stability will naturally
deepen their integration with the global economy.
“China cannot achieve development in isolation of
the rest of the world, and the world needs China
for development,” said China’s Vice-Premier Zeng
Peiyan. His statement could equally apply to India.
Comparing China and India, however, pits apples
against oranges. Yes, they have similarities, but
there are even more crucial differences that are
widely recognized – the makeup of their
economies; depth of integration with global supply
chains; share of global trade, notably exports (see
Figure 1); and workforce skill levels, not to mention
obvious and significant divergences in their political
system, rule of law, infrastructure and level of
development.
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 The Emergence of China and India
Figure 1: China and India Exports to the Rest of the World
US$ TN
In China, domestic consumption must increase;
China must lower its reliance on exports and
foreign direct investment (FDI) to drive growth.
Chinese officials including Vice-Premier Zeng
emphasized that the new five-year plan to be
approved in March should set a “moderate”
growth target of 8% to allow for greater focus on
social programmes and initiatives for sustainable
development.
India’s delegation delivered its own stark
message: While India has arrived on the world
stage, it has a raft of urgent problems to tackle,
including poor infrastructure, widespread poverty
and widening income disparities particularly
between urban and rural areas, limited
manufacturing capabilities and deficiencies in
education. The self-styled “fastest growing free
market democracy in the world” is proving that
pluralism and growth are compatible.
“Democracy is going to be a source of
competitive advantage for us,” predicted Nandan
M. Nilekani, President, Chief Executive Officer
and Managing Director, Infosys Technologies.
Indian Minister of Commerce and Industry Kamal
Nath added: “As the world’s perception of India
changes, India’s perception of itself changes.
The Indian electorate is realizing more and more
that a more liberalized economy is what is driving
growth.”
8
US$ TN
Source: Thomson Datastream
The complacent and fearless may cling to one-
dimensional high-growth stories. But it is time to
take in the bigger picture. The tricky shifts that
China and India are trying to pull off as they
implement complex reforms will prove more
painful than anything they have so far achieved.
Turning an economy driven by exports and FDI
into a consumption-led one cannot be easy for a
society still nominally steeped in central planning.
Moreover, China must create a system of
rationally allocating finance (i.e. reform the
banking system) so long constrained by political
interference. As Morgan Stanley Chief Economist
Stephen Roach said, “switching from an
investment-led economy to a consumer-led one
is more art than science. A consumer culture is
the DNA of market-based capitalism and this is
not in the experience set of China’s
macroeconomic managers.”
While China must balance bold structural
reforms with statist controls to avoid destabilizing
social tensions, India inches forward gingerly, its
revolutionary reform ambitions tempered by a
much admired, yet constraining devotion to
democracy and social heritage. Bridging
significant gaps of poverty, empowering women
through education and addressing infrastructure
deficiency are enormous tasks that lie ahead.
World Economic Forum Annual Meeting 2006
 The Emergence of China and India

“As the world’s perception

of India changes, India’s
perception of itself
changes. The Indian
electorate is realizing more
and more that a more
liberalized economy is
what is driving growth.”

Kamal Nath
Minister of Commerce and
Industry of India

All this suggests that China and India could each
hit a wall, forcing them to scramble to generate
new models of growth. And in the case of China,
we need no reminders that not a single country
in the post-World War II period has undertaken
banking reform the likes of which China is
attempting absent a significant financial crisis.
There are many plausible negative scenarios:
rising protectionism stemming from
disillusionment with multilateral trade
negotiations, social tensions resulting from rising
expectations and uneven development, disputes
with rivals over natural resources, diplomatic
friction over ties to potentially destabilizing
regimes such as Iran, and falling FDI due to
frustration with the shaky rule of law and thin
profit margins in China or India’s infrastructure
deficiencies and bureaucratic bottlenecks.
Business must consider the implications of the
transformations underway and adopt risk
strategies accordingly. At the same time,
Chinese companies are venturing overseas to
acquire management expertise, technology and
brand-building savvy to apply them at home.
Boardrooms in Europe and the US are having to
consider new potential emerging competition.
Chinese and, to a lesser extent, Indian firms are
building resource supply networks and strategic
business relationships in Africa, Latin America
and other emerging markets. Global companies
that source products from China and India are
beginning to apply environmental best practices
standards to suppliers. Companies are bolstering
the rule of law by asserting their commercial
rights including intellectual property protection
through available legal channels, adhering to
transparent and ethical conduct, and requiring
the same of partners and contractors. The
leaderships of both countries are struggling to
stay far enough ahead on the reform curve to
prevent human resources and infrastructure
constraints from damaging critical labour cost
advantages.
China and India’s developments are unparalleled
transitions with profound consequences and
opportunities for the world at large. Conditions
change quickly; objectives once considered
incongruent can swiftly turn into complements.
Environmental protection and economic growth
are a prime example. As US architect William
McDonough, Chairman, William McDonough +
Partners Architecture and Community Design /
MBDC, who is designing cutting edge eco-
friendly cities in China, concluded: “The Chinese
have the ability to go to scale with velocity.”
While India may move more slowly, its impact on
the global economy is likely to be as great as
China’s, particularly as life sciences and other
services are outsourced to India. As many
participants put it, as go China and India, so
goes the world.

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World Economic Forum Annual Meeting 2006
 The Changing Economic Landscape
• The global economy is beset with inefficiencies
and imbalances that threaten to derail growth
and halt efforts to bring prosperity to the
world’s poorest corners.
• Massive US deficits and yawning Asian
surpluses, inequities in trade and the
increasingly heated race for natural resources
pose risks.
• The brunt of these imbalances, however, is
being borne by the environment, which looms
above all else as a risk to the well-being of the
planet.
No one drills for oil or assembles iPods at the
South Pole. But evidence that the global
economy is dangerously out of kilter can be
found swimming under the ice nearby. There in
the frigid Antarctic seawater, tiny shrimp-like
crustaceans – called krill – eke out an existence
eating plankton and algae until they are eaten by
seabirds, whales and other animals. Global
warming is melting polar ice and reducing the
krill’s habitat, causing by some estimates a 90%
drop in krill populations in the past 20 years. Bad
10
news for the penguins and, it turns out, for
humans too: thanks to overfishing in the world’s
oceans, mankind has moved right down to the
bottom of the food chain to harvest krill
alongside the seals.
The same inefficiencies and imbalances that
economists say imperil trade and markets are
hastening the depletion of natural resources and
environmental destruction. These imbalances
have so far not derailed global economic growth,
but the slow destruction of our own habitat
belies the conclusion that the situation is
sustainable.
The most fundamental imbalance has long been
the disparity of wealth between developed
nations and undeveloped nations. This disparity
is being slowly reduced now in what some call
the most dramatic shift of wealth ever witnessed.
While erosion of Socialist orthodoxy catalysed
the re-emergence of China and India, their
impact stems largely from their massive ranks of
young workers, which have helped double the
global workforce since 1990. But discrimination
against women in both nations has helped give
World Economic Forum Annual Meeting 2006
 The Changing Economic Landscape
Min Zhu, Executive Assistant President, Bank of China; Laura D. Tyson, Dean,
London Business School; Peter Gumbel, Senior Writer, Business, Time
Magazine; Michael J. Elliott, Editor, Time International; Stephen S. Roach, Chief
Economist, Morgan Stanley; and Jacob A. Frenkel, Vice-Chairman, American
International Group (AIG), during the session “Update 2006: Global Economy”
Figure 2: US Debt and Budget Balance
World Economic Forum Annual Meeting 2006
rise to vast gender disparities that are deepening
emerging shortages of skilled labour. “In the
developing world, there are 100 million women
‘missing’,” said Lawrence H. Summers,
President, Harvard University, USA; Co-Chair of
the Annual Meeting 2006. The developed
economies, by contrast, face increasingly aged,
unproductive populations.
Persistently high demand for consumer products
in the US and Europe has enabled developing
economies such as China to use manufactured
exports as an engine of growth. The emerging
skilled labour shortages in China and India have
largely dispelled fears that they would export
deflation. Instead, a potentially precipitous
paradox has emerged in which the developing
nations of Asia finance consumption of their
exports by the world’s richest nation.
Asian purchases of US government bonds
enable the US to run an ever-widening trade
deficit, consuming more than is financially sound,
without depreciation of the dollar or significantly
higher inflation. US debt is rising close to 50% of
GDP (See Figure 2), with US savings rates at
their lowest since the Great Depression.
Source: Thomson Datastream
11
 The Changing Economic Landscape

This artificial support for US deficits fuels asset-
price inflation, particularly housing prices. US
housing prices and those around the globe have
risen sharply, by 85% since 1997 (see Figure 3)
leading some commentators to believe this is the
largest bubble in history.
Economists say rising home values are largely
behind the illusion of wealth that inspires US
consumers to spend more than they earn. Many
predict that housing prices may stop rising soon,
which could chill US consumer demand for
Asian exports.
With the dollar artificially overvalued and global
inflation kept low, the world is flush with cash.
Interest rates paid by borrowers once
considered relatively risky compared to
governments are historically low, making it
harder for investors to earn the kind of returns
needed to finance the world’s growing pension
liabilities.

Figure 3: Global House Price Rises (1997-2005)

Percentages

Source: The Economist

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World Economic Forum Annual Meeting 2006
 The Changing Economic Landscape
“Consider the dynamic
that 73% of tariffs paid
by developing countries
are paid to other
developing countries.”
Peter Mandelson
Commissioner, Trade,
European Commission
Growing trade imbalances also increase the risk
that politicians will grasp for protectionist
solutions and halt efforts to make trade fairer
through the World Trade Organization. Tariffs
designed to protect agriculture in Europe and the
US hinder the ability of developing nations to
export their way out of poverty. But not all such
barriers are from developed countries. “Consider
the dynamic that 73% of tariffs paid by
developing countries are paid to other
developing countries,” said Peter Mandelson,
Commissioner, Trade, European Commission,
Brussels.
Aside from feeding extremism, such inequities in
global trade distort the cost of resources. Tariffs
and subsidies encourage the wasteful use of
land, water and oil.
Oil, and our over-reliance on it as our principle
source of energy, remains a problem. With China
and India leading a new surge in demand, the
global economy is susceptible to shocks such as
those triggered by the terrorist attack on gas
pipelines in Georgia, or Hurricane Katrina.
World Economic Forum Annual Meeting 2006
”It’s actually an economic
necessity, if we’re going to
have enough capacity on
earth to give China and
India and other countries
the growth which they
rightfully claim is theirs.”
William J. Clinton
Founder, William Jefferson
Clinton Foundation; President
of the United States (1993-
2001)
Policy-makers need to take steps to redress
these imbalances. In particular, prices for goods
and services should reflect their real cost, not
only in terms of labour and capital, but also their
impact on natural resources and the
environment. “It’s actually an economic
necessity,” said William J. Clinton, Founder,
William Jefferson Clinton Foundation; President
of the United States (1993-2001). “If we’re going
to have enough capacity on earth to give China
and India and other countries the growth which
they rightfully claim is theirs, and revive the
American economy, and provide an opportunity
for Europe to continue to grow and prosper, I
think we have to deal with [preserving the
environment].”
13
 New Mindsets and Changing Attitudes

“Adaptation of technology, programmes to encourage tolerance and diversity

along with economic and prevent growing extremism that can lead to
growth and education, is
terrorism. Besides, economies that aim for a fully
one of the essential
components of functioning modern democracy will need to foster
modernism.” critical thinking, knowledge of the market economy,
gender acceptance and racial diversity. More
Hamid Karzai
President of Afghanistan
focused education programmes will make such
attributes more likely, especially if combined with the
intelligent use of technology.

“Adaptation of technology, along with economic

• With technology advancing rapidly and
globalization a fact of life, “new mindsets”
inevitably collide with old ways of thinking.
Government, business and civil society all play a
role in ensuring that these new mindsets bring the
greatest good to the greatest number of people.
• The most critical goals involve fortifying and
expanding educational systems to spread the
benefits of growth and to stem extremism,
harnessing new technologies to solve old
problems – particularly poverty, unaccountability of
public and private sector officials, and health
crises – and creating constructive synergy
between governments, NGOs and businesses.
growth and education, is one of the essential
components of modernism”, said Hamid Karzai,
President of Afghanistan. But new technology also
poses critical challenges for businesses and
governments alike. Will these new technologies
advance accountability, destroy privacy, or both?
How will old brands weather the storm of new
media?
In the fields of marketing and news media, the
Internet has been nothing short of a sea change.
Consumers of news, an essential pillar of a

Expanding education to benefit the largest number

of people remains a critical challenge. Participants
voted a “global educational framework that fosters
inclusivity” – a priority for several well-established
reasons. For example, educated societies tend to
be more productive, rich and happy. As Jiro
Nemoto, Honorary Chairman, Nippon Yusen
Kabushiki Kaisha, Japan put it, “Human
development must be the foundation for economic
development.” Educated societies also tend to be
healthier; combating ignorance – in the form of
testing and information on prevention – is an
essential weapon in the fight against diseases such
as HIV/AIDS.

However, participants also recognized that in

today’s society, education is important to tackle
some of the world’s more pressing issues, like
extremism. For example, many understand that
generally exchanging knowledge prevents ignorance
and alienation. Nations with significant immigrant
populations or large ethnic, religious or linguistic
sub-communities need proactive education
14
World Economic Forum Annual Meeting 2006
 New Mindsets and Changing Attitudes

functioning democracy, increasingly rely on blogs or
online versions of print newspapers. Many in the
media expressed concern that such trends would
mean the erosion of responsible journalism, but
publishers such as Arthur Sulzberger Jr, Chairman
and Publisher, The New York Times, USA,
expressed guarded optimism “that the need and
desire for quality, trustworthy journalism would keep
the old media brands afloat.” But change is
undeniable. “The consumer has been empowered,”
said Frederick Kempe, Assistant Managing Editor
and Columnist, Wall Street Journal, USA, “the
Internet is a democratizing force.”
Privacy issues such as ID theft and government
intrusion loom large, and striking the right balance
between regulation and freedom will be a critical
challenge in the next decade. But with new
problems also comes new opportunities.
Technology, like education, is vital to the war on
terror, as it can facilitate the collection and sharing
of information among nations and international
security organizations.
Breaking down the barriers between governments,
NGOs and businesses holds the potential to foster
cooperation and growth within and between
nations. “My objective has been to persuade both
the member states and my colleagues in the
Secretariat that the United Nations needs to engage
not only with governments, but with people,” said
Kofi Annan, Secretary-General, United Nations, New
York.
How private-public engagements occur remains an
essential question. Generally, business is better than
government at changing the behaviour of
individuals. “Where there is opportunity for more
profit,” said Bill Owens, Governor of Colorado, USA,
“companies are increasingly moving towards what is
good for the public.” The role of government in
balancing business interests with those of the nation
is a tendentious issue as was demonstrated by the
CNOOC Limited bid to acquire Unocal Corporation,
and the American political climate which sunk the
deal.

Christopher Murray, Director, Global Health Initiative, Harvard University; Jens Stoltenberg, Prime Minister of Norway; William H. Gates III,
Chairman and Chief Software Architect, Microsoft Corporation; Gordon Brown, Chancellor of the Exchequer of the United Kingdom;
Olusegun Obasanjo, President of Nigeria; Fareed Zakaria, Editor, Newsweek International; Giulio Tremonti, Vice-President of the Council
of Ministers and Minister of Economy and Finance of Italy, during the session “Not Gone, but Almost Forgotten”

15
World Economic Forum Annual Meeting 2006
 Creating Future Jobs
“In my 30 years
experience I have never
seen such an incredible
shortage of talented
people – whether it is in
Germany, Brazil, China,
India or Kansas.”
Samuel A. DiPiazza Jr
Global Chief Executive Officer,
PricewaterhouseCoopers
• Hundreds of millions of new jobs will be
needed over the next 20 years to avoid
massive increases in global unemployment.
• This requires new attitudes towards supporting
innovation, entrepreneurship, risk taking and
encouraging creativity.
• The ability to start a business will need to be
made much simpler, quicker and cheaper in
many countries and the benefits of
entrepreneurship widely publicized and taught
formally.
• Numerous educational systems will need to be
restructured if they are to meet future skill
requirements and must include broad-based
skills so that future workers find it far easier to
switch between different occupations.
A time bomb relating to work is ticking.
Registered world unemployment reached 187.7
million in 2004, according to the International
Labour Organization. Over 80 million new jobs
will be needed by 2020 to keep the Arab world
alone at its current level of 16% unemployment.
The entry of so many workers into the global
market economy will have a dramatic effect on
the worldwide ratio of labour to capital with a
consequent downward pressure on wages. This
situation can be expected to last for at least 25
years and will require fresh, collaborative ideas to
provide solutions.
16
“The focus is on training
people to be adaptable,
flexible and able to
change quickly with the
times, because it is
impossible to predict what
we will need in the
future.”
Nandan M. Nilekani
President, Chief Executive
Officer and Managing Director,
Infosys Technologies
Business in the developed and developing world
could not face more divergent labour markets.
“In developed countries, the question is not
where the jobs will come from but where will the
workers come from,” said Donald J. Johnston,
Secretary-General, Organisation for Economic
Co-operation and Development (OECD), Paris.
Min Zhu, Executive Assistant President, Bank of
China, People’s Republic of China, has no such
problem: “We have to understand that labour is
a resource not a burden. So it is labour-intensive
manufacturing which makes China a
powerhouse in the world with a 10% growth
rate.”
In developed countries with ageing populations
there will clearly be a boom in healthcare
employment. Companies which understand the
added consequences, such as a sharp boost in
the number of people who are time rich and
cash poor, will be able to create further jobs.
“The implications of people getting older means
a complete shift in consumerism as people will
buy differently,” insisted Sir Digby Jones,
Director-General, Confederation of British
Industry (CBI), United Kingdom. “Where they go,
the need to heat their homes more, and they will
want to pay lower prices.”
Businesses in the Middle East, however, will only
be able to start creating the work needed by
tens of millions of Arab youths if, at the very
least, there is a far greater regional openness in
the trade of goods, services and labour. Ahmed
Mahmoud Nazif, Prime Minister of Egypt, for
World Economic Forum Annual Meeting 2006
 Creating Future Jobs
example, needs to create 750,000 jobs a year to
keep unemployment at the same levels. “Part of
the answer is related to growth, particularly in
tourism which is important to Egypt and creates
more jobs than industry.”
For much of commerce, the way to create new
jobs is globalization, although this is being
restricted by skill shortages at the white collar
level. “In my 30 years experience I have never
seen such an incredible shortage of talented
people – whether it is in Germany, Brazil, China,
India or Kansas,” said Samuel A. DiPiazza Jr,
Global Chief Executive Officer,
PricewaterhouseCoopers, USA. “There is this
war for talent and we are not just talking about
the top 5%. It is an issue even in countries with
good population growth and education.”
These skill shortages need to be tackled with
increased efforts by business to release
underutilized assets into the labour market
through improved childcare services, wage
equality and greater education opportunities.
”We do not have enough urgency about
innovation,” declared Ben J. Verwaayen, Chief
Executive Officer, BT, United Kingdom, “not in
the R&D sense, but in terms of job creation,
getting women involved, getting minorities
involved.” The success of such initiatives can
provide further new opportunities for
employment as unpaid work becomes paid
work. “In Scandinavia so many of the workforce
are now in employment that a lot of housework
has effectively become paid work as others are
paid to do it,” said Neil Kearney, General
Secretary, International Textile, Garment and
Leather Workers’ Federation, Brussels.
Creating new jobs that are needed on the
massive scale means that most will have to
come from the private sector and will require a
fundamental change in attitude to business and
public sector support for innovation,
entrepreneurship and risk taking. Indices of
competitiveness, which look at the cost and
difficulties of starting a business in various
countries, should be expanded and used to
praise the best and “name and shame” the
worst nations while examining in depth each
World Economic Forum Annual Meeting 2006
country’s regulations, the availability of funding,
employment, taxation, and the time and cost of
starting a new business. Crucially policy-makers
should also emphasize the importance of
changing mindsets in those countries where
entrepreneurial failure is considered
unacceptable and which effectively disqualify risk
takers from making further attempts.
Educational systems in many countries need
overhauling to overcome a fundamental
mismatch between the skills taught and the
future skills needed. This disparity is increased in
developed countries by students’ perceptions of
what constitute worthwhile occupations. “We
have to persuade children that, in the future,
getting a vocational degree will be as important
as getting a university qualification,” insisted
David Arkless, Executive Board Member,
Manpower, USA. “We need electricians,
plumbers, infrastructure workers and higher-level
production workers. We have to make these
sorts of jobs, which make cities work, look
valuable and feel valuable.”
At the same time, educational systems will need
to become more broad-based so that people
find it easier to switch between jobs. “Trying to
plan for specific shortages in the long term is not
that useful,” declared Jagdish Bhagwati,
Professor, Columbia University, USA.
“Uncertainty comes in no matter how hard you
try. You can only make broad statements like skill
shortages will happen.” This is also the view of
Nandan M. Nilekani, President, Chief Executive
Officer and Managing Director, Infosys
Technologies, India, who finds that college
recruits do not have the right skills. “We have our
own finishing school to get them ready for our
business. The focus is on training people to be
adaptable, flexible and able to change quickly
with the times, because it is impossible to
predict what we will need in the future.”
Equally important is that educational systems
recognize that 85% of job skills are not specific
to a particular task but include work habits,
project management, teamwork, communication,
time management and punctuality.
17
 Regional Identities and Struggles
“Right now, no one
knows if Iran is trying to
cross the weapons
threshold.”
Kenneth M. Pollack
Director of Research, Saban
Center for Middle East Policy,
The Brookings Institution
• Empowering poorer countries to close the
income gap with the rich, thus boosting their
potential as consumer markets, is in the long-
term interests of industrialized nations.
Regional cooperation agreements, targeted
infrastructure investment, easier access to
capital and removing farm subsidies in the
richer nations can help achieve this end.
• Iran’s nuclear ambitions are the biggest
immediate concern for the international
community in the Middle East region,
overshadowing Iraq and the Israel-Palestine
conflict despite the election victory of Hamas.
While there is no consensus on whether
Tehran really wants nuclear weaponry, high-
pressure diplomacy is the only effective way to
handle the issue. A military attack would be
dangerously counterproductive for the West.
Despite the fact that hundreds of millions have
been lifted out of abject poverty over the past
decades, income disparities between world
regions and within nations are growing. “Global
imbalances are deepening, and that has serious
consequences for developing countries like
India,” warns Palaniappan Chidambaram,
Minister of Finance of India. Yet, it is in the longer
term interests of the richer powers, and their
business communities, to narrow the divide and
help create populations of consumers within the
poorer countries rather than see armies of the
desperate surging across borders in the hope of
finding a better life. “The integration of the four-
fifths of the world that is poor with the one-fifth
that is wealthy has the potential to be one of the
two or three most important economic
developments of the past millennium, along with
the Renaissance and the Industrial Revolution,”
18
“Regionalism is the right
way forward for the
mutually-beneficial
advance of the states
involved, as the EU and
ASEAN have showed.”
Pervez Musharraf
President of Pakistan
argued Lawrence H. Summers, President,
Harvard University, USA; Co-Chair of the Annual
Meeting 2006.
Formal regional agreements on trade, like
NAFTA, and political-commercial pacts
underpinning groupings like the EU and ASEAN,
have raised living standards in their member
states. However, non-formal cooperation
between countries through free movement of
capital and goods are achieving similar ends.
“Regionalism is the right way forward for the
mutually-beneficial advance of the states
involved, as the EU and ASEAN have showed,”
said President Pervez Musharraf of Pakistan.
Helping Africa, and other poorer regions, to help
themselves by developing infrastructure can be
inspiring. “Making money and doing real cool
stuff at the same time is a magical formula.
Business needs to talk less and do more,”
commented Hugh Grant, Chairman, President
and Chief Executive Officer, Monsanto Company,
USA. “There are a billion people who cannot be
business consumers unless they are helped to
climb out of poverty,” argued Antony Burgmans,
Chairman, Unilever, Netherlands. But as
Chidambaram warned, “Developed countries
must show much more concern for the capital
requirements of developing countries.”
Certainly, business can more actively press major
governments to remove trade barriers with
poorer countries, and especially to remove farm
subsidies. Africa “can only grow when it is
allowed to trade freely and openly and fairly. That
means these trade-distorting subsidies must be
removed by 2010,” said Niall Fitzgerald,
Chairman, Reuters, United Kingdom; Member of
the Foundation Board of the World Economic
Forum.
World Economic Forum Annual Meeting 2006
 Regional Identities and Struggles

Jack Straw, Secretary of State for Foreign and Commonwealth Affairs of the United Kingdom; Barham Salih, Minister of Planning and Development
Cooperation of Iraq; Ahmed Chalabi, Deputy Prime Minister of Iraq; Robert B. Zoellick, US Deputy Secretary of State; Hajim Alhasani, President of the
Iraq National Assembly; John McCain, Senator from Arizona (Republican), USA; Sheikh Hamam Hammoudi, President, Constitutional Drafting Council,
Iraq; and Amre Moussa, Secretary-General, League of Arab States, during the session “What Is at Stake in Iraq?”

But the greatest will in the world to remove trade
barriers will fail if the global geopolitical
environment remains volatile. The West’s nuclear
stand-off with Iran bears the seeds of a grave
crisis affecting much of the world. If Tehran halts
oil exports, or they are halted by Western military
action, prices will likely soar well beyond their
current highs and the repercussion on key
Western economies, and global markets, will be
dramatic.
The real aims of Iran’s nuclear programme are
unclear. One view is that serious economic
problems and a rapidly growing population are
pushing it towards diversifying its energy
resources. Others think differently. “Right now,
no one knows if Iran is trying to cross the
weapons threshold,” said Kenneth M. Pollack,
Director of Research, Saban Center for Middle
East Policy, The Brookings Institution, USA. “But
it is prudent to believe that they are developing a
nuclear weapons capacity,” said Jack Straw,
Secretary of State for Foreign and
Commonwealth Affairs of the United Kingdom.
“There is no threat (to Iran) from anyone in that
region,” argued Saxby Chambliss, Senator from
Georgia (Republican), USA. Motivation for any
weapon development could therefore only be
offensive.
There is consensus that the response should be
“carrot-and-stick” diplomacy. However, the West
may have to make more generous offers –
including economic cooperation that involves
investment and trade – to persuade Tehran to
play ball. Richard N. Haass, President, Council
on Foreign Relations, USA, said: “I don’t see that
there is enough on the (negotiating) table at the
moment.”
Certainly, there is little enthusiasm for an attack
on Iran’s nuclear centres. A common view is that
this would spark a huge geopolitical crisis in the
region and far beyond, and only delay Iranian
arms development while pushing the population
to more radical political positions.
The electoral victory by Hamas, seen as linked to
Iran and viewed officially as a terrorist
organization by many Western governments,
adds a further complicating factor. Should the
reaction of the West be to isolate or engage?
“We all have a difficult time managing risk. We
live in a polarized world in which the risks have
increased colossally,” said 2005 Nobel Peace
Prize winner Mohamed M. ElBaradei, Director-
General, International Atomic Energy Agency,
Vienna. “If you fix the Middle East, North Korea
and South Asia, you would fix 90% of our
problems.”

19
World Economic Forum Annual Meeting 2006
 Responding to Global Challenges
Responding to the five challenges that were the
focus of the Annual Meeting 2006 will require global
policy-makers and stakeholders to develop
solutions in three broad, interrelated areas:
Rebuilding trust in public and private
institutions: In virtually every region and
country, opinion surveys reveal declining
public confidence in governments,
corporations and multinational
organizations.
Effective leadership in managing
global risks: New mechanisms need to
identify and – where possible – mitigate
threats such as terrorism, environmental
degradation, natural disaster and
economic instability.
Innovation, creativity and design
strategy: The obsolescence of many
20th century structures compels leaders
to develop fresh concepts, new
institutional models and more flexible
processes for serving diverse
populations.
While all three responses are crucial, the last one
may hold the key to the first two. Numerous
sessions and workshops highlighted the need to
reward innovation, encourage unconventional
thinking and promote cultural cross-fertilization in
every region and at every level of society.
Change – both sweeping and fundamental –
appears to be the one constant as the world moves
deeper into the 21st century. Political, corporate
and social leaders no longer have the option (if they
ever did) of relying on inertia and habit to carry them
through the currents of global integration. They
must respond – often in real time – to powerful
forces that cut not just across national borders, but
across cultures, markets and technologies.
20
The Three Responses
Describing the specific policies required to manage
these forces of change is a task of almost hopeless
complexity. However, the agenda for this year’s
Annual Meeting reflected an assumption that global
leaders must articulate and implement policy
responses in three broad areas:
• Rebuilding trust in public and private institutions:
There is growing awareness among elites and
publics alike that the institutions of the post-World
War II order – national governments, multinational
corporations, international organizations – no
longer function well. In the developing world,
corruption and inefficiency threaten to overwhelm
trust (and institutions) altogether. In the industrial
countries, economic change spurs fears of a
broken social contract. Unless these trends are
reversed, global leaders face the prospect of a
political backlash that could wreck decades of
prosperity, integration and global accommodation.
• Effective leadership in managing global risks:
Theory holds that as markets become more
flexible and barriers reduce, economic systems
gain stability. However, unwise policies or
incomplete adjustments can produce unexpected
volatility. Likewise, modern infrastructures offer
unparalleled speed and convenience – but may be
vulnerable to terrorism or natural disaster. Leaders
must improve early warning systems, and develop
better tools for defining, controlling and – not least
– allocating risk.
• Innovation, creativity and design strategy: In a
“flat” world – one approximating the textbook
definition of market efficiency – constant
innovation is the only guarantee of competitive
advantage. This applies as much to institutional
cultures and structures as to new technologies
and products. But the sources of innovation are
not well understood and financial markets are
often unprepared to reward long-term innovation
strategies as opposed to short-term gain. This
position requires leaders to experiment boldly with
incentives and work life arrangements.
World Economic Forum Annual Meeting 2006
 Responding to Global Challenges

To avoid being trapped in a zero sum game,

“But the process [of global
integration] doesn’t have to companies and societies alike will need to use
be smooth. Along with their increased productivity to create new
integration we face the risk products, anticipate new needs, new markets,
of disintegration – failed new technologies and – most of all – new jobs to
states, struggling middle
classes caught in binds
replace those that have been lost. Populations
everywhere. These forces that until now have been excluded from the
are of equal importance.” progress of globalization – or made more
vulnerable by it – will need to be brought into the
Lawrence H. Summers
President, Harvard University mainstream, in ways that respect their human
dignity and worth. “We won’t have a creative
and flourishing world without bringing everyone
into the global economy,” contended Jacqueline
These key themes become vital when Novogratz, Founder and Chief Executive Officer,
considering the growing importance of the Acumen Fund, USA.
world’s great cities as incubators for innovation,
or creating new markets for pricing and trading However, such ambitions can only be realized if
insurance risks – including personal economic existing leadership institutions – the massive
risks such as unemployment or loss of income. public and private bureaucracies inherited from
This gives rise to growing awareness that the hierarchical 20th century – can be renovated.
globalization has reached a crossroads, one that Here, too, though, progress is being made, albeit
could determine whether the integration process often too slowly (see Figure 4). Daniel Vasella,
continues, or gives way to a new era of regional Chairman and Chief Executive Officer, Novartis,
fragmentation and conflict. Switzerland, noted the growing consensus in the
corporate world on the need for greater
“But the process [of global integration] doesn’t transparency and accountability. Now business
have to be smooth. Along with integration we leaders need to take that message to their
face the risk of disintegration – failed states, employees, shareholders and customers. “We
struggling middle classes caught in binds need to make an effort to communicate what we
everywhere. These forces are of equal do and how we do it,” he said.
importance,” noted Lawrence H. Summers,
President, Harvard University, USA; Co-Chair of Figure 4: Trust in Institutions
the Annual Meeting 2006.
Trust
The Next Wave

Until now, globalization has been about

economic efficiency – expanding trade, slashing
labour costs and maximizing comparative
advantage through the creation of global
production chains. These strategies, however,
have reached the point of diminishing returns Distrust

and “knowledge” is rapidly becoming a

commodity. Cost efficiencies are now easily
replicable, meaning they provide no lasting
advantage. They have become a necessary, but Average of 14 Tracking countries - based on a global public opinion poll involving a
not sufficient, condition for success. total of 20,791 interviews conducted between June and August 2005

21
World Economic Forum Annual Meeting 2006
 Responding to Global Challenges

A World of Opportunities also to inhabitants of the informal shanty towns that

It would be a mistake, however, to view the next
phase simply in terms of risks and looming crises.
Tremendous opportunities are also on the horizon –
not least for the global business community. For
example, the demand for environmentally-sensitive,
energy-efficient products and services: While some
anxiously watch the rise of China and foresee a
resource catastrophe, architects, engineers and
urban planners are already at work designing the
Chinese cities of tomorrow, featuring rooftop farms,
sewage treatment plants that produce more energy
than they consume and the construction of solar
power collectors on a massive scale. “We believe it
is possible to create a virtuous cycle in both our
ecological and our social systems,” said William
McDonough, Chairman, William McDonough +
Partners Architecture and Community Design /
MBDC, USA.
surround it. “We wanted the poor to see that we
were building the nicest public buildings in the
poorest neighbourhoods,” he explained. “The
message we are trying to send is that there is
hope.”
Can the creative imperative win the race with the
spectres of political disintegration, economic
dislocation and ecological collapse? Thinkers have
been arguing the question at least since Thomas
Malthus and David Ricardo debated the future of
the industrial revolution. There is no guarantee that
mankind’s ingenuity will continue to trump its knack
for self-destructive behaviour. But given the
innovative thinking on display at this year’s Annual
Meeting, it still looks like the smart bet.

Likewise, the problems of poverty and

marginalization, while formidable, are not deterring
local leaders from inventing – or emulating –
solutions. Sergio Fajardo Valderrama, Mayor of
Medellin, Columbia, explained how his city is
delivering educational and cultural services to the
poor, following trailblazing urban planning efforts in
the Brazilian city of Curitiba. Medellin, he noted,
recently built five large cultural complexes on the
outskirts of the city, each combining a public library,
an outdoor movie theatre and a public park. These
centres are accessible not only to city residents, but

22
World Economic Forum Annual Meeting 2006
 The Creative Imperative – Responses
“... it's important for you, as
business leaders, to say where
do you think the responsibility
lies? Perhaps the responsibility
for education and training lies
with the government. What
about the responsibility for
pensions and healthcare?
What about the responsibility
of paying a living wage?”
Laura D. Tyson
Dean, London Business School
This year at the Annual Meeting 2006,
participants prioritized 11 questions during the
Big Debate. They continued to gather
knowledge, opinions and data during 240
sessions, including the CEO series, and
culminated in a targeted workshop to consider
the priorities for the coming year. This vast array
World Economic Forum Annual Meeting 2006
“The Forum is here to help us
to find out what the main
issues are and then it is up to
us to act individually.”
Peter Brabeck-Letmathe
Chairman and Chief Executive
Officer, Nestlé
of knowledge sharing through discussion helped
launch new initiatives and expanded current
ones to continue addressing some of the world’s
most pressing issues and further will help shape
the agenda for the Forum’s regional and industry
events during 2006.
23
 The Creative Imperative – Responses

The World Economic Forum Annual Meeting 2006

Recommendations from the Annual
closed with participants supporting the project
Meeting:
expansions in health, education, hunger and
public-private partnerships as well as
• Prepare for future jobs: Realign the global
recommending broad action areas that private and
education system to meet future demand
public institutions should undertake.
for skill sets, particularly in vocational
occupations
1. Health Initiative launches global Stop TB
campaign
• Restore balance in the global economy:
The Forum’s Global Health Initiative helps
Develop policies for greater savings in the
companies design workplace health programmes
US and consumption-led growth in China
for prevention and treatment of HIV/AIDS, TB and
malaria. Having reached over 10 million employees
• Sustain growth in China and India: Build
with such programmes, the initiative continues to
support for business education and
expand efforts to assist companies extend
entrepreneurship
programmes throughout their supply chains,
targeting rapidly growing economies like China
• Protect the environment through better
and India. During the Annual Meeting, the global
resource management: Expand water
Stop TB campaign was launched with US$ 1.2
management initiatives to address urban
billion committed by core partners.
and agricultural use, especially in
developing markets
2. Global Education Initiative expands to
Palestinian Territories and Egypt
• Mitigate the impact of an increasingly fluid
The Global Education Initiative launches
labour market: Improve social security
collaborative public-private partnerships to
when changing jobs
improve education systems. In Jordan, with the
direct support of the King and Queen, it has
• Manage disruption: Develop models to
engaged over 45 public and private partners to
design, build and implement more quickly
transform curricula, teaching and IT infrastructure
for 50,000 schoolchildren. The programme is now
underway in Rajasthan, focusing on 100 girls’
schools, and during the Annual Meeting work was
initiated in the Palestinian Authority and Egypt.

3. Disaster relief platform formed

Following the major natural disasters of 2005, the
Forum was asked to serve as a major platform for
engaging private sector support for relief efforts,
building on and expanding its Disaster Resource
Network through planning that took place at the
Annual Meeting.

4. New Hunger Initiative launched

Under the leadership of the Forum’s food and
beverage company members, business and public
leaders developed a business-led action plan to
help reduce hunger in Africa and discussed it with
UN Secretary-General Kofi Annan. The group has
recommended that the Forum serve as a platform
for putting this plan into action during 2006.

24
World Economic Forum Annual Meeting 2006
 Acknowledgements
The World Economic Forum would like to thank its Partners for their valuable support of the World Economic Forum
Annual Meeting 2006

Strategic Partners Microsoft Corporation

ABB Nakheel
Accel Partners NASDAQ
Accenture Nestlé
AMD New York Stock Exchange
Apax Partners Nike
Audi PepsiCo
Avaya Pfizer
Bain & Company PricewaterhouseCoopers
Barclays Qatar Airways
Bombardier Reliance Industries
Booz Allen Hamilton Saudi Basic Industries
BT Corporation (SABIC)
CA Siemens
Cisco Systems Swiss Re
Citigroup Volkswagen
The Coca-Cola Company WPP
Credit Suisse Zurich Financial Services
Deloitte
Deutsche Bank
Deutsche Post World Net Annual Meeting Partners
Deutsche Telekom ABN AMRO Bank
Dubai Holding Akamai
Economic Development American International
Board of Bahrain Group (AIG)
Ernst & Young Bank for Foreign Trade Vneshtorgbank
Fluor Corporation Barco
Goldman Sachs BP
Google Burda Media
HP DuPont
Infosys Technologies Invest in France Agency
Intel LUKOIL Oil Company
Investcorp MasterCard International
JPMorgan Chase & Co. Metro
KPMG Mittal Steel Company
Kudelski Group Moore Capital Management
Lehman Brothers Morgan Stanley
McKinsey & Company Nomura Holdings
Manpower Reuters
Marsh & McLennan SICPA
Companies Swiss International Air
Merck & Co. Lines
Merrill Lynch Unilever

25
World Economic Forum Annual Meeting 2006
 Contributors

Ged Davis is Managing Director, Annual Meeting Programme. Jonathan Schmidt is Director, Global
Agenda. Stephanie Janet is Associate Director, Annual Meeting Programme. Sheana Tambourgi is
Associate Director, Global Agenda.

Vidhi Tambiah is Associate Director, Business Insight, at the World Economic Forum. He worked with
Wayne Arnold, Robert Evans, Matthew May, William Montague, Alejandro Reyes and Benjamin Skinner
to produce this report.

The World Economic Forum would like to express its appreciation to the summary writers for their work
at the Annual Meeting 2006. Session summaries are available at:
www.weforum.org/annualmeeting/summaries2006

Alicia Bramlett, Action Communities Workshop design

Associate Director, Editing: Nancy Tranchet

Design and Layout: Kamal Kimaoui, Associate Director, Production and Design

Photographs:
swiss-image.ch
Richard Kalvar / Magnum

28
World Economic Forum Annual Meeting 2006
The World Economic Forum is an independent
international organization committed to improving
the state of the world by engaging leaders in
partnerships to shape global, regional and
industry agendas.

Incorporated as a foundation in 1971, and based

in Geneva, Switzerland, the World Economic
Forum is impartial and not-for-profit; it is tied to
no political, partisan or national interests.
(www.weforum.org)