Davos

Davos-Seattle Link

Globalization is combining with specia lization to reduce the number of players in many industries

The 30th annual meeting of the World Economic Forum in Davos, Switzerland was the first big international economic gathering of the third millennium. Close to 3000 economic, political, social and cultural figures took part in the event. Adopting the motto of “a new start on the advent of year 2000”, the Davos forum focussed on such issues as the future of Asia, impact of economic growth of China and Japan on the continent, globalization and global management, ways of fighting global deprivation and the role of the Internet in expanding trade exchanges.
The WEF meeting was another high-profile international gathering on global economy since a World Trade Organization meeting in Seattle ended in abject failure last December after being disrupted by environmental and labor protests. The Seattle fiasco left many business leaders wondering whether international trade is in danger or whether the process of economic integration known as globalization would come to a sputtering halt. The focus at Davos was on growing public discontent over the pace and the price of globalization. Developing countries as well as rich ones want more trade, not less. But nearly everyone in Davos agreed that globalization has an image problem.
Even Mike Moore, director general of the WTO, acknowledged Seattle’s communications failures. “I know we’re not getting the message of truth out. This is not a case of a few wealthy white guys trying to fix the rules for the rest of the world.”
The result was that many of the world’s richest tycoons found themselves not only talking about new business strategies in Davos, but sounding like New Age guys, expressing a need to remain open, transparent and ethical. “Two years ago the notion of corporate social responsibility would not have been heard,” says Claude Smadja, the Swiss managing director of the annual economic forum. “Back then, people were saying ‘Our issue is maximizing shareholder return.’ Now, this element of social responsibility is coming up more and more.”
The ferocity of the demonstrators in Seattle had raised concerns about the popularity of global trade in underdeveloped countries, where the impact on labor and the environment was questioned. The Seattle conference had been called by the 135-nation WTO in hopes of deciding on a new agenda for the next round of trade negotiations, following up on the global trade treaty adopted in 1994.
Some participants said it was a mistake to oppose globalization because the process was impossible to stop once it got underway. Globalization is combining with specialization to reduce the number of players in many industries. Small may be beautiful, but there are no examples of small companies doing well.
Not everyone agrees with this argument. A number of social activists invited to Davos made clear that what had happened in Seattle was only the beginning unless governments and businesses both become more sensitive to labor and environmental issues. “Globalization is smashing good jobs in one place and setting up pathetic conditions in others,” they say.

Iran continues cooperating with the Central Asian republics to establish a huge regional common market in the near future

While the labor issue was clearly the most sensitive among executives in Davos, a surprising number of companies were happy to talk about making improvements in their record on preserving the environment. When it comes to corporate responsibility, executives agree that they feel increased pressure to act ethically. The process of globalization can only be constructed if public opinion is included to work through ethical dilemmas.
In an effort to address some of the concerns raised at Seattle, organizers of the World Economic Forum arranged a meeting between representatives of non-government organizations concerned about globalization and people from the Davos.
While the advocacy groups said they were unhappy with the results of Davos, because the meeting is private and discussions are held behind closed doors, they may have been more successful than they realized. Many of the issues they raised at Seattle were discussed at those private meetings. While some, like setting international labor standards, proved unpopular, other topics, such as measures to protect the environment, were embraced by a surprisingly large number of executives, whose eyes are supposedly only fixed on the bottom line. Of course, raising such concerns is good public relations. Such discussions probably won’t affect the direction of globalization, but they have already found a place on the trading world’s agenda for the future.

Iran: Silk Road Talk

The World Economic Forum was an opportunity for Iran to reiterate its policy vis-à-vis some topics of international importance. The Iranian mission included Foreign Minister Kamal Kharrazi and Mohsen Nourbakhsh, Governor of the Central Bank of Iran. Addressing a Davos session named “Perspectives of the Central Asia and Caucasus: Revival of the Silk Road or the Big Play”, Iran called on the Central Asian republics and Caucasus to consider the mutual interests of the countries in the region as a guarantee for their national and regional interests.
It was in the same spirit of respecting mutual interests that these countries opted for joining the independent Economic Cooperation Organization (ECO) to announce their political life soon after their adhesion to the United Nations in 1992. The term “big play” signifies the intense rivalries between the world superpowers and their hegemonic policies during the two past centuries in the Caspian Sea and the Central Asia to dominate Afghanistan and the Indian Peninsula thereby finding access to the natural reserves of the regional states. In fact, the region was a scene of rivalry between colonialist powers over spoils. Following the disintegration of the former Soviet Union, a new atmosphere has been created in the region enabling it to turn into an important center for trade transactions.
Iran refers to ECO as a good axis for the regional states to embark on the activities in the areas of trade, energy and transportation. ECO is now enjoying the political backing of all its members and that is the reason why it can be instrumental in promotion of the cooperation of states located on the Silk Road. Due to its strategic location between the Caspian Sea and the Persian Gulf, Iran provides a golden opportunity for the Central Asian countries to use the Iranian territory to develop their land communications with other important economic centers in the world and to transfer their oil and gas to other markets. In order to create a huge regional common market in the near future, Iran continues cooperating with the Central Asian countries and Caucasus.