45th World Economic Forum
A "Dangerous Mistake" to Ignore Uncertainty
RiskNET [Editor-in-chief]21.01.2015, 11:26
Today’s global context is one of uncertainty, said Simonetta Sommaruga, President of the Swiss Confederation and Minister of Justice and Police. Uncertainty is prevalent in current conflicts and crisis regions as well as in the comparatively prosperous countries of Europe. "Overall, globalization has led to greater prosperity and reduced poverty, but that is not the case everywhere," she said.
Sommaruga was speaking at the 45th World Economic Forum Annual Meeting in Davos-Klosters, 21 to 24 January 2015. She told participants that globalization induces a deep-seated sense of uncertainty in many people. "It would be a dangerous mistake to ignore the uncertainty felt by many people," she added. She pointed to the rise of nationalist and populist parties in many countries in Europe that are critical of globalization, reject immigration and incite scepticism towards the European Union. She called on business people and politicians to accept responsibility and address the uncertainties created by today’s global economy.
"Are we creating an economic environment in which only high performers working under constant pressure can prevail?" she asked. "Competition is growing for the highly developed economies too. In more and more countries, workers are still paid low wages but now offer highly skilled labour."
This means that even leading economies can remain successful only if they are prepared to continuously make structural changes. "Structural change in itself is not a bad thing, but it produces winners and losers. This is something we cannot accept," the President said.
Uncertainty has fuelled the rise of nationalist conservative parties in Europe, parties that invoke a nation’s sovereignty and a native country symbolizing familiarity and safety. This describes an ideal past that never was, she added.
Sommaruga noted that business leaders have avoided assuming the responsibility for answering questions on the inequitable distribution of the benefits of globalization for far too long. "We need business people who want to earn money but who also want something more," she said. "We need business people who want to give others a chance; employers who set benchmarks in terms of profit and of corporate culture. We also need commodities groups that prohibit all forms of forced labour and exploitation, and that recognize the rights of others."
The President also called on policy-makers to put in place – and enforce – a sound framework based on the rule of law, legal certainty, no corruption and protection of human rights and social justice. "These elements are key to a healthy economic and social order. This requires determination, clear values and steadfastness," she added. "Nothing has greater value in politics than credibility."
Kommentare zu diesem Beitrag
The Canadian Property Market
Volker Liermann | Nikolas Viets | Stefan Grossmann07.08.2018, 06:55
Unprecedented low interest rates, booming asset prices and the ever increasing challenge to remain profitable have led financial institutions in many parts of the world, and in Canada in particular,...
Credit risk management, digitalization and cost transformati...
Markus Krall31.07.2018, 10:00
The European Central Bank’s attempt to utilise all available monetary policy means to force reflation is having a significant impact on the banking industry. The flat zero interest curve is eroding...
Future Outlook and Emerging Risks
RiskNET [Editor-in-chief]07.06.2018, 10:47
Artificial Intelligence (AI) refers to the ability of a computer program to think and learn like a human and its snowballing impact on society is undeniable. AI applications already pervade many...
Tensions and Turbulence Ahead
RiskNET [Editor-in-chief]14.05.2018, 09:59
In 2017, the global political risk landscape was turbulent, and is likely to remain so over the next 12 months. The Political Risk Map 2018, published by Marsh and based on BMI Research findings,...
Decision making in risk management
RiskNET [Editor-in-chief]29.03.2018, 14:10
Our world is in a state of upheaval – whether due to war and terrorism, the increasing number of environmental disasters or because of cyber risks and economic distortions. The risk map is growing as...