Half global wealth held by the 1%

Oxfam warns of widening inequality gap, days ahead of Davos economic summit in Switzerland

The Guardian, Larry Elliott, economics editor, and Ed Pilkington,  19 January 2015

The Swiss ski resort of Davos, home to the annual meeting of the World
Economic Forum. Photograph: Christian Kober/Robert Hardi/REX

Billionaires and politicians gathering in Switzerland this week will come under pressure to tackle rising inequality after a study found that – on current trends – by next year, 1% of the world’s population will own more wealth than the other 99%.

Ahead of this week’s annual meeting of the World Economic Forum in the ski resort of Davos, the anti-poverty charity Oxfam said it would use its high-profile role at the gathering to demand urgent action to narrow the gap between rich and poor.

The charity’s research, published today, shows that the share of the world’s wealth owned by the best-off 1% has increased from 44% in 2009 to 48% in 2014, while the least well-off 80% currently own just 5.5%.

Oxfam added that on current trends the richest 1% would own more than 50% of the world’s wealth by 2016.

Winnie Byanyima, executive director of Oxfam International and one of the six co-chairs at this year’s WEF, said the increased concentration of wealth seen since the deep recession of 2008-09 was dangerous and needed to be reversed.

In an interview with the Guardian, Byanyima said: “We want to bring a message from the people in the poorest countries in the world to the forum of the most powerful business and political leaders.

“The message is that rising inequality is dangerous. It’s bad for growth and it’s bad for governance. We see a concentration of wealth capturing power and leaving ordinary people voiceless and their interests uncared for.”

Oxfam made headlines at Davos last year with a study showing that the 85 richest people on the planet have the same wealth as the poorest 50% (3.5 billion people). The charity said this year that the comparison was now even more stark, with just 80 people owning the same amount of wealth as more than 3.5 billion people, down from 388 in 2010.

Byanyima said: “Do we really want to live in a world where the 1% own more than the rest of us combined? The scale of global inequality is quite simply staggering and despite the issues shooting up the global agenda, the gap between the richest and the rest is widening fast.”

Separate research by the Equality Trust, which campaigns to reduce inequality in the UK, found that the richest 100 families in Britain in 2008 had seen their combined wealth increase by at least £15bn, a period during which average income increased by £1,233. Britain’s current richest 100 had the same wealth as 30% of UK households, it added.

Inequality has moved up the political agenda over the past half-decade amid concerns that the economic recovery since the global downturn of 2008-09 has been accompanied by a squeeze on living standards and an increase in the value of assets owned by the rich, such as property and shares.

Pope Francis and the IMF managing director Christine Lagarde have been among those warning that rising inequality will damage the world economy if left unchecked, while the theme of Thomas Piketty’s best-selling book Capital was the drift back towards late 19th century levels of wealth concentration.

Barack Obama’s penultimate State of the Union address on Tuesday is also expected to be dominated by the issue of income inequality.

He will propose a redistributive tax plan to extract more than $300bn (£200bn) in extra taxes from the 1% of rich earners in order to fund benefits specifically targeted at working families.

However, the odds of the White House having any success persuading Congress to adopt the plan, given the Republicans’ new grip on both chambers, are extremely long. But Obama’s embrace of what he calls “middle-class economics” – as opposed to the trickle-down economics of the Republicans – is likely to ensure that inequality remains a pivotal theme of the 2016 presidential campaign.

Oxfam said the wealth of the richest 80 doubled in cash terms between 2009 and 2014, and that there was an increasing tendency for wealth to be inherited and to be used as a lobbying tool by the rich to further their own interests. It noted that more than a third of the 1,645 billionaires listed by Forbes inherited some or all of their riches, while 20% have interests in the financial and insurance sectors, a group which saw their cash wealth increase by 11% in the 12 months to March 2014.

These sectors spent $550m lobbying policymakers in Washington and Brussels during 2013. During the 2012 US election cycle alone, the financial sector provided $571m in campaign contributions.

Byanyima said: “I was surprised to be invited to be a co-chair at Davos because we are a critical voice. We go there to challenge these powerful elites. It is an act of courage to invite me.”

Oxfam said it was calling on governments to adopt a seven point plan:

• Clamp down on tax dodging by corporations and rich individuals.

• Invest in universal, free public services such as health and education.

• Share the tax burden fairly, shifting taxation from labour and consumption towards capital and wealth.

• Introduce minimum wages and move towards a living wage for all workers.

• Introduce equal pay legislation and promote economic policies to give women a fair deal.

• Ensure adequate safety-nets for the poorest, including a minimum-income guarantee.

• Agree a global goal to tackle inequality.

Speaking to the Guardian, Byanyima added: “Extreme inequality is not just an accident or a natural rule of economics. It is the result of policies and with different policies it can be reduced. I am optimistic that there will be change.

“A few years ago the idea that extreme poverty was harmful was on the fringes of the economic and political debate. But having made the case we are now seeing an emerging consensus among business leaders, economic leaders, political leaders and even faith leaders.”

Nearly US$300m in fines just the start for China's anti-monopoly work

Want China Times, Staff Reporter 2014-10-26

Qualcomm's company logo. (File photo/CFP)

From Microsoft to Qualcomm, Audi to Mercedes Benz, China's anti-monopoly moves have issued penalties worth nearly 1.8 billion yuan (US$294 million) so far this year, while calls for ensuring fair competition in the market are getting stronger and stronger, the Beijing-based Economic Information Daily reports.

The next stage of the anti-monopoly campaign will focus on breaking administrative monopolies, including manipulating administrative power to exclude competition and local protectionism. Experts expect a more fair and orderly market environment in China in the future, following the implementation of the anti-monopoly law.

The world has been paying close to attention to how China has been managing monopolies since the campaign started in 2013. The first stage targeted monopoly agreements (vertical monopoly), the concentration of undertakings that restrict competition (horizontal monopoly) and the abuse of a dominant market position.

The vertical monopoly refers to upstream and downstream operators in the same industry having reached agreements to exclude or restrict competition. For example, in the auto market, car suppliers have issued policies or notices to restrict and define the minimum resale price, as well having fixed the resale price and taken other unilateral measures.

Horizontal monopoly refers to agreements reached among competitors, a tactic much harder to detect and break. Enterprises in the same industry may agree to jointly set prices through meetings and regional alliances.

Targets of fines include Japanese car parts enterprises, which got slammed with 1.24 billion yuan (US$202 million) in August, and fines on Zhejiang's insurers for 110 million yuan (US$18 million) in September.

Chen Fengying, director of the Institute of World Economic Studies at the China Institutes of Contemporary International Relations, expects the nation's anti-monopoly investigations to deepen further, expanding to wider ranges and gaining more authority.

Since China's implementation involves foreign multinational companies, some foreign media have raised queries over its fairness. Premier Li Keqiang at the World Economic Forum (WEF) in Davos this year replied that among the companies being investigated for anti-monopoly, foreign enterprises accounted for only 10%, a number he described as fair. China's implementation of anti-monopoly probes will make China further expand its openings, allowing more foreign funds and foreign products willing to enter the nation.

Anti-monopoly probes follow international standards, aiming to ensure fair competition in the market and upgrade economic efficiency, said an expert.

Richest 85 boast same wealth as half the world

SMH, Gareth Hutchens, January 21, 2014

Illustration: Cathy Wilcox

Eighty-five people control the same amount of wealth as half the world's population.

That is 85 people compared with 3.5 billion.

A new report from Oxfam has been published in time for the World Economic Forum in Davos this week.

It shows the world's ultra-wealthy have not only recovered from the global financial crisis, they have positively blossomed.

The report shows the wealth of the 1 per cent richest people in the world is worth about $US110 trillion, 65 times the total wealth of the bottom half of the world's population.

It also shows the world's richest 85 people control about $US1.7 trillion in wealth, equivalent to the bottom half of the world's population.

And far from hindering the wealthy, the political response to the global financial crisis - including the actions of central banks and the austerity measures introduced by national governments - has made the rich fabulously richer.

In the US, the wealthiest 1 per cent of the population grabbed 95 per cent of post-financial crisis growth between 2009 and 2012, while the bottom 90 per cent became poorer.

But an Oxfam survey of six countries - the United States, UK, Spain, Brazil, India and South Africa - has found that the majority of people believe laws and regulations are skewed in favour of the rich, so people are noticing.

It has called on the world's powerful meeting in Davos to try to stem the tide of rising inequality.

It says seven out of 10 people live in countries where economic inequality has increased in 30 years.

''Given the scale of rising wealth concentrations, opportunity capture and unequal political representation are a serious and worrying trend,'' the report says.

''This massive concentration of economic resources in the hands of fewer people presents a significant threat to inclusive political and economic systems.''

Economists say the rise in global inequality is not surprising.

The US Federal Reserve's multibillion-dollar bond-buying program was singled out as a major driver of the increase in wealth inequality.

"The distribution of wealth has been widening, both before and after the financial crisis,'' Bank of America chief economist Saul Eslake said.

''And although I don't criticise the policies on these grounds, I think it's fairly apparent that the policies that are being pursued, particularly by central banks, in an attempt to revive major advanced economies after the financial crisis, have probably contributed to widening the distribution of wealth.''

Frank Stilwell, Emeritus Professor at Sydney University, said he was not surprised there was inequality of that magnitude, but he wondered if Davos would be the forum to address it.

''It should be a matter of public concern, within and between nations, because this concentration among the ultra-wealthy I think is pretty well documented within countries,'' Professor Stilwell said.

''The bigger question is if the World Economic Forum and its member participants can do anything about these trends is another matter.''

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Iceland President Olafur Ragnar Grimsson tells Al Jazeera's Stephen Cole that Europe should let banks that are ran "irresponsibly" go bankrupt.

Speaking at the annual World Economic Forum in Davos, Grimsson also held his country as a model of economic recovery after its near-collapse four years ago.

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“… Your nation of Iceland is being used as a testing ground for the rolling out of financial strategies for the betterment of your planet. It would be wise to follow their progress in this respect, as it will be the fate of all nations in a very brief period of time. We have always advised you that such an action would never come from the larger powers and nations of the world, but they will follow in lockstep once the actions begin their domino effect…..” 

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Davos 2013: world leaders to discuss aliens, super-humans, and immortals

The voice of Russia, Yulia Zamanskaya, Jan 25, 2013        

"The Voice of Russia"

                              

This year, apart from the traditional economic concerns, the program of the World Economic Forum in Davos is scheduled to address a number of highly controversial issues which have been kept classified for decades. Called the 'X factors', these issues include the potential risks of medically induced enhancement of cognitive abilities, prolongation of human life, and discovery of extraterrestrial life.

After reading the Executive Summary of the WEF 2013 one is left with an impression that he has just read the scenario for the next 'X Files' episode. Runaway climate change, rogue deployment of geoengeneering, and digital wildfires are just a few issues that the readers of the Executive Summary can find not only unconventional but also futuristic. Nonetheless, all of these themes are due to be discussed under the rubric of the 'X Factors'.

Developed in partnership with the editors of Nature, a leading science journal, the 'X Factors' category looks well beyond the landscape of 50 traditional global risks and identifies the most significant game-changers of the next decade. Apart from the already mentioned runaway climate change, digital wildfires, and rogue geoengeneering, which seem to be at least minimally realistic, the list of 'X Factors' also includes the possible implications of people living longer, getting smarter, and meeting extra-terrestrial 'Others'. While some remain highly skeptical regarding these issues, the editors of Nature together with the WED team seem to be convinced that in the very near future these risks will not only become very real, but will also profoundly challenge the existing social and scientific paradigms.

In WEF team's opinion, super-human abilities are no longer the preserve of science fiction. Instead, the time of human prodigies is fast approaching the horizon of plausibility. At the time when researchers all over the world are working hard to develop the medical cure to such mental illnesses as Alzheimer’s and schizophrenia, it is conceivable that in the not too distant future scientists will identify compounds that will be more effective than existing cognitive pharmaceutical enhancers such as Ritalin and modafinil. While these new compounds will be prescribed only for treatment of severe neurological diseases, it is highly likely that they will also be used off-label by healthy people seeking for an edge in their every-day endeavors. effective new compounds which appear to enhance intelligence or cognition are sure to be used off-label by healthy people looking for an edge at work or school.

Interestingly, WEF experts believe that significant enhancement of cognitive abilities can be attained through hardware as well as drugs. Laboratory studies indicate that direct electrical stimulation through the implanted electrodes can significantly improve memory. Unlike drugs, such cognitive enhancement therapy is less easily available and is thus less likely to be adopted by healthy people. Nonetheless, the scientists suggest that within 10 years time intra-brain devices and sensors will open a new realm of enhanced neurobiology for those who can afford it. In this context, the scientists wonder whether it can be ethically acceptable for the world to be divided into the cognitively-enhanced and unenhanced. Will the humanity accept the idea that significant cognitive enhancement should be available to purchase on the open market or will there be a push for legislation to maintain a more level playing field?

The other question that the experts are asking is what happens if cognitive enhancement program goes awry or if it falls in the wrong hands. Cognitive enhancement drugs and devices have a very wide-ranging effects on various systems of human body since they work by targeting neurotransmitter systems. In this respect, WEF scientists argue that "there is a significant possibility of (un)intended effects on other systems – for example, drugs to enhance learning may lead to a greater willingness to take risks; drugs to enhance working memory may lead to increased impulsive behaviour". Indeed, recent research into the field already suggests that, in addition to improving long term memory, it is possible to use TMS to manipulate or even suspend a person’s moral judgement of right versus wrong. The technology can also be used to “erase” memory and deliberately cause permanent brain damage. In this sense, it is not difficult to see how new cognitive enhancement drugs and technologies can open up a space for their misuse by criminal organizations and terrorist networks.

Another issue that the WEF experts decided to present for discussion this year is the implications of longer life-span among humans. The WEF team suggests that while "medical advances are prolonging life, long-term palliative care is expensive. Covering the costs associated with old age could be a struggle". Indeed, according to official statistics people all over the globe now live up to 35 percent longer than hundred years ago and more funds are needed to provide adequate care for the millions of elderly. However, the problem of funding is not the only concern which is related to longer life-span. The risk of over-populating the planet is yet another issue which the world will soon face.

In this respect, most radical commentators were quick to suggest that the only solution to the problem of longer living humans is euthanasia. The proponents of this view contend that with medical advancements even the weakest and the sickest people will survive and live to their late 90s and possible 100s, which will not only lead to a significant increase in global population, but will also negate the fundamental law of the survival of the fittest. In this context, some suggest that euthanasia might be the only way out from the vicious circle of artificially healthy individuals living unnaturally long lives.

The last and probably the most controversial X Factor that will be discussed during the Davos Forum is the possible discovery of extraterrestrial life. While it is the first time that the Forum addresses the aliens, the issue has recently become a frequent theme of discussion among the world leading politicians and military officials. In December 2012, Russian Prime Minster Dmitry Medvedev mused on topic of aliens after completing an on-camera interview with international reporters in Moscow. Back then, Mr Medvedev jokingly claimed that "I will not tell you how many of them [aliens] are among us because it may cause panic". It turns out, however, that Mr Medvedev's concern with the aliens did not end last December. A shocking Davos Forum agenda aims to bring the topic of aliens beyond the realm of jokes.

WEF experts contend that "given the pace of space exploration, it is increasingly conceivable that we may discover the existence of alien life or other planets that could support human life. In 10 years’ time we may have evidence not only that Earth is not unique but also that life exists elsewhere in the universe." In this context, WEF team urges the global elite to prepare themselves and their nations for such discovery. The scientists suggest that new funding and new brain power will be needed to overcome the challenges that the humanity will face as a result of its encounter with an extra-terrestrial civilization. The world might even need to create artificial-intelligence emissaries to survive an inter-stellar crossing. The discovery of an Earth 2.0 or life beyond our planet might also inspire new generations of space entrepreneurs to meet the challenge of taking human exploration of the galaxy from the realm of fiction to fact.

At the same time, WEF experts do not believe that the discovery of alien life will change the fabric of human society in the short-run. While the discovery would certainly be one of the biggest news stories of the year and interest would be intense, it would not change the world immediately. Over the long run, however, the psychological and philosophical implications of the discovery could be profound. In the opinion of WEF scientists, "the discovery of even simple life would fuel speculation about the existence of other intelligent beings and challenge many assumptions that underpin human philosophy and religion."

All in all, it seems that humanity is heading to exciting times, and Davos may be the first trigger that will unleash a series of most extraordinary worldwide revel worldwide revelations.

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"THE NEXT 18 YEARS"–  Dec 2, 2012 (Kryon Channelling by Lee Caroll) (Subjects: You are looking  at a Quantum event, clearing a filter - Portal pineal , Higher self to step forward and communicate to You, Still remains in 3D but exposure to multi dimensions, Evolution of humanity, Intent, Mayan Calendar, Midpoint on 21-12-2012, 26.000 Years, Milky Way, Nostradamus, 1987, Beginning to a New Time, Channellers/Teachers, Center of Galaxy – Black hole, Bridge of Swords, Pleiadians, Children, Inventions – The discoveries (e.g. : Airplanes - Medicines – Radio ...): These new Discoveries were given all over the planet when Human consciousness was ready for it, New Inventions are coming, the timing depends on how the middle East problems are solved, Biology reaction of quantum energy; new radio of the future, seeing quantum energy, when it is revealed all science books will have to be rewritten, This will be an AHA moment – be possible to communicate with the rest of Galaxy, NASA, Church/religion will be effected the most by these discoveries, The quantum discovery will see the grid, life, gardens and will redefine life, DNA (3 billion pieces) evolving piece DNA are chancing, Gaia/Humanity are linked, new instruments will start to reveal the DNA variance, Evolution revealed: Autistic children have born with the removal of their 3D structure in the brain, Gaia/Spirit are testing these quantum beings  (Evolved DNA), Universe central clock = Rifs,  Globally there will be only 5 currencies, Wars on earth will be declared barbaric, Middle East, Global Unity, .. etc.)

"Recalibration of Free Choice"–  Mar 3, 2012 (Kryon Channelling by Lee Caroll) - (Subjects: (Old) Souls, Midpoint on 21-12-2012, Shift of Human Consciousness, Black & White vs. Color, 1 - Spirituality (Religions) shifting, Loose a Pope “soon”, 2 - Humans will change react to drama, 3 - Civilizations/Population on Earth,  4 - Alternate energy sources (Geothermal, Tidal (Paddle wheels), Wind), 5 – Financials Institutes/concepts will change (Integrity – Ethical) , 6 - News/Media/TV to change, 7 – Big Pharmaceutical company will collapse “soon”, (Keep people sick), (Integrity – Ethical)  8 – Wars will be over on Earth, Global Unity, … etc.) - (Text version)

“…  3 - Longer Life is Going to Happen, But…

Here is one that is a review. We keep bringing it up because Humans don't believe it. If you're going to start living longer, there are those who are frightened that there will be overpopulation. You've seen the way it is so far, and the geometric progression of mathematics is absolute and you cannot change it. So if you look at the population of the earth and how much it has shifted in the last two decades, it's frightening to you. What would change that progression?

The answer is simple, but requires a change in thinking. The answer is a civilization on the planet who understands a new survival scenario. Instead of a basic population who has been told to have a lot of children to enhance the race [old survival], they begin to understand the logic of a new scenario. The Akashic wisdom of the ages will start to creep in with a basic survival scenario shift. Not every single woman will look at herself and say, "The clock is ticking," but instead can say, "I have been a mother 14 times in a row. I'm going to sit this one out." It's a woman who understands that there is no loss or guilt in this, and actually feels that the new survival attribute is to keep the family small or not at all! Also, as we have said before, even those who are currently ignorant of population control will figure out what is causing babies to be born [Kryon joke].

Part of the new Africa will be education and healing, and eventually a zero population growth, just like some of the first-world nations currently have. Those who are currently tied to a spiritual doctrine will actually have that doctrine changed (watch for it) regarding Human birth. Then they will be able to make free choice that is appropriate even within the establishment of organized religion. You see, things are going to change where common sense will say, "Perhaps it would help the planet if I didn't have children or perhaps just one child." Then the obvious, "Perhaps I can exist economically better and be wiser with just one. It will help the one!" Watch for these changes. For those of you who are steeped in the tradition of the doctrines and would say that sounds outrageously impossible, I give you the new coming pope [Kryon smile]. For those of you who feel that uncontrolled procreation is inevitable, I encourage you to see statistics you haven't seen or didn't care to look at yet about what first-world countries have already accomplished on their own, without any mandates. It's already happening. That was number three.….”

"Common Questions from Non-Lightworkers" - Feb 2012 (Kryon Channelling by Lee Carroll) 

"... Question Three: Is there life on other planets?

Are you kidding? There's life everywhere. Everywhere! Right now, your scientists are searching for microbial life on all the planets and their moons in your solar system, and they will eventually find it. They expect to find it. They will eventually understand that the seeds of life are everywhere.

How much life might there be? How long has it been "out there"? When science starts to realize the scope of how long life has been in your galaxy, they will begin to see something counterintuitive to evolution - their own Human history. How old is your Universe? Ask your scientists and they will say about 13 billion years. That's OK. Let's use their numbers. How old is your own planet - 4 or 5 billion, perhaps? Correct. But how old is humanity? Why weren't you here with the dinosaurs? You think the earth wasn't ready? Do you think that perhaps that which controls evolution was a little too stupid to make a Human sooner, but the process could make a dinosaur? Have you ever thought about these things?

If you put the earth's entire history into a 24-hour clock, life itself only started in the last hour and humanity, all of civilization, happened the last few seconds. Isn't that odd to you? Therefore, in a Universe that may be 13 billion years old, you arrived in the last few seconds. Did you ever think maybe you're the newest ones on the block? Well, you'd be right.

If the Universe is really that old, do you think perhaps there are civilizations in your galaxy that might be a billion or more years older than you? If that's the case, do you think perhaps they have gone through anything you're going through? Do you think any of them might have had your DNA attributes? Perhaps they also went through what you are going through spiritually? Perhaps they even went into a quantum ascension status? The answer is dozens of them.

You already know them and you've listed them in your publications. The ones who directly seeded you are called Pleiadians. The ones who seeded them might be Octurian and the ones who seeded them may be even Orion. They're everywhere, and they're all here as well. They're looking at you, for you are the ones who are next, and you are passing this marker of the shift ...."

“… Is there life on other planets? The scientists are saying, "It's going to be a long time before we get to the stars, you know? We have to get in this little metal can and put air in it, and then travel in it for years and years before we ever get to the next star." Meanwhile, a Pleiadian can do it in the blink of an eye! What do you think is going on there? Do you even believe me?

Not long ago, if you wanted to communicate to someone far away, you sent a letter. It was carried by a horse. It took a month to get a response. Now you communicate instantly!  Why is this so unbelievable to you about travel?

I will tell you, as long as you stay in 3D, you'll still be getting in little metal cans and air suits and going to planets. As soon as you begin the quantum age, however, you will simply wish yourself there, because you will be entangled with everything and can go with intent. If you don't believe this now, you will later, for what I give you is true. It may be lifetimes and lifetimes from now, but the group that is before me is the group that is going to come back over and over and over. The difference is that you're done coming back in an old energy. This is a new energy. ..”

"The Big Picture - You Are Not Alone" - (a message from Kryon channeled by Lee Carroll)

Occupy activists attempt to take over Davos debate

Movement tries to stage its own debate on 'remodelling capitalism' at World Economic Forum venue

guardian.co.uk, Jill Treanor in Davos, Friday 27 January 2012

Activists from the Occupy movement entered the open public event in Davos
 and challenged participants to join their debate on capitalism.
Photograph: Laurent Gillieron/EPA

Activists from the Occupy movement attempted to disrupt a debate in Davos attended by the Labour party leader, Ed Miliband, calling on him and the other delegates to leave the stage and join them on the floor of the packed debate on "remodelling capitalism".

The event, which was open to the public as part of a 10-year programme by the organisers of the World Economic Forum to engage with a wider audience, was eventually brought back under control when other public participants refused to support the efforts of Occupy activists.

Eyewitnesses said about 30 activists had strategically placed themselves in the large auditorium in the local Swiss Alpine High School and had attempted to conduct the debate on their own terms.

A representative of Occupy – who started the proceedings and gave her name only as Maria – had already been scheduled to take part in the debate, in which Juan Somavía, director general of the International Labour Organisation, was also a speaker.

After the event Miliband told the Guardian: "Occupy wanted us to do the debate in a different way."

But, he said, they had been outnumbered by other members of the public. He had argued: "This is a big moment of opportunity. There are real opportunities to show there are solutions that can be moved forward. I understand why people are angry."

The Guardian's economics editor, Larry Elliott, who chaired the debate said: "Eventually the will of the audience prevailed and we had a good, productive discussion."

The Occupy protesters have set up a camp of igloos in this Swiss Alpine resort attended by prime ministers, central bankers, business people and charitable organisations from across the globe. Earlier on Friday a number of them had attempted to gain entry to the high security venue where the major events are held and Klaus Schwab, the septuagenarian who founded the WEF, has offered to meet them on Saturday.

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The critics ramp up the pressure at Davos

Deutsche Welle, 26 january 2012  

There is a lot to debate in Davos

The World Economic Forum in Davos is not just a get-together of leading politicians and managers. Organizations like Amnesty International are also piping up - occasionally with scathing criticism.

"Davos can not afford to be a complacent club for the rich and powerful of this world," says Salil Shetty, Secretary General of Amnesty International. He couples this statement with a call for a demonstration in Davos. The motto: "Companies must be kept on a tight leash." Nongovernmental organizations (NGO) have adopted a stern approach at this year's forum in the Swiss Alps, effectively forcing their topics onto the agenda. "The governments must take responsibility. We need stricter regulation of large corporations," says Shetty.

Shetty does not mince his words when it comes to criticizing the practices of big business. The accusations range from economic greed and corruption to human rights violations. After all, the most recent economic crisis has forced an additional 50 million people below the poverty line, according to Shetty. Indeed, the managers gathered in Davos are feeling the pressure from NGOs, but although they are on the defensive, they are unwilling to take responsibility for the crisis.

Are companies acting responsibly? 

Salil Shetty, Secretary General of
Amnesty International, wants to put
companies on a leash

Deloitte Touche Tohmatsu Limited (DTTL), a global consultancy with around 180,000 employees, has presented a new study on the influence of corporations on the economy and society.

"Most companies are already making an important contribution to society and progress," says Heather Hancock, Managing Partner of DTTL. "Companies create sustainable growth, and they also ensure there is enough food to meet the rising population or enough homes and modern transport." Most managers agree that big business has the necessary muscle to tackle the important topics head-on.

Profit is not everything 

Companies contribute significantly
 to society, says Heather Hancock
of DTLL

"The greed of corporations has eclipsed responsible and transparent dealings," counters Sahil Shetty of Amnesty. He is calling for a fair and comprehensive approach to cope with the crisis, and he wants governments to force stricter regulation on large corporations.

But how do young people feel about this debate? The DTTL study also examines the views of the younger generation, including 1,000 so-called "Millenials" (people born after 1981), currently working for Deloitte. They say personal and corporate responsibility as well as the responsibility towards society must go hand in hand. The value of a company should not just be measured by its profits but also by the nature of its contributions to society.

As a result, managers are facing growing challenges and pressure. Improved and more frequent communication between managers and their critics could help share the burden. There are tentative signs that this may already be happening at the World Economic Forum in Davos.

Author: Manuela Kasper-Claridge, Davos, Switzerland / nk

Editor: Michael Lawton

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BBC News, 24 January 2012

Davos 2012 

• Davos debates future of capitalism
• IMF boss in warning on austerity
• Inequality is 'top global risk'
• Q&A: Davos 2012

Sir Mick Jagger says he
 "eschewed party politics" during
his career

Sir Mick Jagger has declined an invitation to a UK event at the World Economic Forum in Davos after complaining he feared he would be used as a "political football".

The tea party, hosted by Prime Minister David Cameron at the Swiss resort, is designed to showcase British talent.

Sir Mick said he would now cut short his visit to Davos amid "innaccurate" comments on his political allegiances.

He said he had "eschewed party politics" during his career.

Others expected to still attend the event include model Lily Cole and Sir Tim Berners-Lee.

In a statement, Sir Mick said: ''During my career I have always eschewed party politics and came to Davos as a guest, as I thought it would be stimulating.

"I have always been interested in economics and world events.

"I now find myself being used as a political football and there has been a lot of comment about my political allegiances which are inaccurate.

"I think it's best I decline the invitation to the key event and curtail my visit."

London Mayor Boris Johnson is also expected to still attend the event.

His spokesman said earlier: "The British delegation at Davos decided having a cup of tea and a biscuit mid-afternoon was the most frugal and efficient way of getting access to the global financial elite and to tell them about investment opportunities in UK, not least in this Olympic year.

"The mayor was asked if his name could be put on the invitation in order to attract the best crowd and be there to bang the drum for London."

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Davos Forum’s Global Elite Damaged by Year of Scandals

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Davos Forum’s Global Elite Damaged by Year of Scandals

Jakarta Globe, Simon Kennedy, January 24, 2012

Employees install a sign for the World Economic Forum on the Congress
 Center in Davos, Switzerland, on Monday. Some 1,600 economic and political
 leaders, including 40 heads of states and governments, will converge at the chic
ski town for the 42nd edition of the five-day forum that opens today. (AFP Photo)

              

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Davos Man is approaching his annual Alpine get-together with humility after spending the past year getting fired, arrested, belittled and occupied.

When the World Economic Forum’s conference gets under way in the Swiss ski resort today, several past stars will be missing from the swirl of policy debates and cocktail parties.

News Corp. chairman Rupert Murdoch is embroiled in a phone hacking scandal. Oswald Gruebel quit as chief executive officer of UBS after a $2.3 billion loss from unauthorized trading. Philipp Hildebrand left the Swiss National Bank in a furor over his wife’s currency transactions. Dominique Strauss-Kahn resigned as International Monetary Fund managing director after sexual-assault charges, later dropped, were filed against him.

As “OccupyWEF” protesters build igloos under the eye of Swiss security forces, the leaders of this year’s Davos may try to profit from the mistakes of their predecessors by embracing transparency and ethics.

Citigroup CEO Vikram Pandit, a co-chairman of the meeting, is calling for the financial industry to be more open amid panel discussions with such titles as “Is 20th-century capitalism failing 21st-century society?”

“Davos Man has taken on the lessons of recent years and is asking how to do things differently,” said Richard Edelman, president and chief executive of public relations agency Edelman, who is attending the conference. Businesses and policy makers are having to “process accurately the vox populi.”

The need for them to do so is demonstrated by Edelman’s annual poll on trust, released on Monday in conjunction with the Davos meeting. Trust in government fell a record 9 percentage points to 43 percent, while faith in business slid to 53 percent from 56 percent.

The credibility of CEOs slid 12 points to 38 percent, the largest drop in nine years, and banks and financial services remained the two least trusted industries. The online survey questioned a total of 30,600 people in at least 25 countries from Oct. 10 to Nov. 30 last year.

“Davos Man is not this caricature of the rich and powerful person,” Klaus Schwab, founder of the forum, said on Monday.

“Davos Man is a person who, as I define it, should be concerned with the present state of the world and who should be ready to engage and contribute so that the state of the world is improved.”

The term “Davos Man” was created by the late Samuel Huntington, a professor at Harvard University in Cambridge, Massachusetts, to describe those with international visions who view governments’ only use as easing “the elite’s global operations.”

The 42nd annual meeting of the World Economic Forum embodies the “1 percent,” to use the phrase popularized by the young protesters who spent more than eight weeks occupying New York’s Zuccotti Park last year.

Among scheduled attendees are bank CEOs such as Pandit and Jamie Dimon of JPMorgan Chase and corporate chiefs Peter Voser of Royal Dutch Shell and Cisco Systems’ John Chambers. At least 70 billionaires are to be present, including investor George Soros and Microsoft founder Bill Gates. They will join about 2,600 other delegates discussing the world outlook.

The image of financial, corporate and governmental powers have taken a hit as the “occupy” protests, the Arab Spring uprisings and recent marches in Moscow highlighted rising unemployment and income inequality, said Tina Fordham, senior global political analyst at Citigroup and a member of the forum’s Global Agenda Council. It helps shape the forum’s work.

There is “a reduced willingness to tolerate the perceived excess of elites and the old social order, and heightened potential for protests to cause disruption, violence and pressure to alter the legislative agenda,” she said.

Not everyone has gotten the message. Three years after he used the Davos stage to pledge Russia wouldn’t turn toward “isolationism and unbridled economic egoism” and as he seeks to return to the presidency, Prime Minister Vladimir Putin is facing the biggest protests against his rule in 12 years. They were sparked by alleged fraud in the Dec. 4 parliamentary election, in which his United Russia party retained power.

In the financial world, Davos Man took a pay cut. Morgan Stanley CEO James Gorman, who is scheduled to attend the forum, had his 2011 pay reduced by 25 percent from a year earlier. Goldman Sachs cut average compensation and benefits expenses 21 percent in the same period.

Ian Bremmer, president of Eurasia, a New York-based investment consultancy, detects a generational transition. While Murdoch, 80, began posting on Twitter last month, it’s executives less than half his age who will be more alert to the demands of consumers and to accepting less privacy given the rise of social media, he said.

As younger leaders “start taking a role and grow in influence and importance, then you’ll see a different sensibility in terms of how they interact with the global public,” Bremmer said.

There will be plenty of room for them.

Murdoch is absent again. A year ago, he canceled his participation in a panel discussion at the forum as British police stepped up an investigation into phone-hacking allegations by News Corp. newspapers.

News Corp. spokesman Jack Horner said Murdoch was busy this year.

Gruebel, who two years ago was privately huddling in Davos with counterparts to discuss how to reassert their influence with regulators and governments, quit in September after UBS fell victim to a rogue trader.

High-profile locals are also missing from Davos this year. Hildebrand, who as a student worked in the resort as a bell boy and limousine driver, is a no-show after he resigned as SNB president this month. His credibility was questioned following the disclosure his wife bought $504,000 in the days before the SNB imposed a currency cap on the franc.

Two former Davos stars have been incarcerated in the past year. Strauss-Kahn, who as IMF chief used a Davos debate four years ago to push governments to ease fiscal policy, is back in Paris after being arrested in New York and charged with attempted rape and sexual assault.

Saif al-Islam Qaddafi, the son of the former Libyan dictator, was named a Young Global Leader at the forum in 2006. He was captured by rebels in November while trying to flee to Niger a month after his father was killed in Libya’s overthrow.

Some of the falls from grace reflect the aftershocks of the recent credit crisis and the resulting pushes for greater income and democratic equality, said Nariman Behravesh, chief economist at Englewood, Colorado-based IHS and a Davos delegate.

“Severe income disparity” was cited as one of the greatest threats to global prosperity over the next decade in the forum’s annual review of risks published on Jan. 11.

Organizers have made some nods to the emerging theme. The opening panel on capitalism in modern times will involve Bank of America CEO Brian Moynihan and Sharan Burrow, general secretary of the International Trade Union Confederation. Later in the week, the role of business in society will be discussed, as will whether banks are a cure or curse for the world economy.

“The focus on ethics and responsibility and social justice will be much greater this time around,” said Behravesh.

Bloomberg

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