Creating a harmonious global society

We must rethink our traditional notions of economic growth and global competitiveness by focusing not only on growth rates and market penetration but equally, if not, more importantly, assessing the quality of economic growth. How is growth achieved? How sustainable is it and at what cost to the environment?

How are the gains distributed? And as consequence of such growth, what has become of the family and community fabric as well as society's culture and heritage? The time has come to embrace a more holistic approach to global economic development.

China's "harmonious society" has reflected this approach, which shifts the country's primary focus from a purely economic growth model to a more balanced one that addresses social issues such as the gap between rich and poor, widespread environmental degradation, and government and corporate corruption.

China's growth has not only lifted hundreds of millions of people out of poverty in a relatively short period of time, but also made it the world's second largest economy with foreign exchange reserves topping $3 trillion. Within a decade China could replace the US, which despite its financial challenges and fragility, remains in the number one position.

But with China's newly found position as well as the rise of other emerging economies comes new responsibilities and the urgent need for better cooperation, especially when it comes to such transnational problems as resource and energy scarcity, climate change, environmental degradation, all of which are interdependent and inter-related.

The world has become more interconnected than ever before, linked through information and communication technologies and increased movement of people as well as economically through record trade and capital flows. Our systems - from financial to communications to supply chains - are also increasingly intertwined. As a result, global challenges cannot be met by individual governments, businesses or other organizations alone. In a complex, fast driven, interconnected world, we need a platform for cooperation involving all stakeholders of global society to work together.

The most decisive success factors to accomplish this will be the ability to anticipate, manage and mitigate risks. To respond better to global risks, the World Economic Forum has created a Risk Response Network based on the knowledge and partnerships it has created over years.

The network is a unique platform for global decision-makers to better understand, manage and respond to complex and interdependent risks. It will bring a rigorous approach to understanding the complexity of risks that face corporate, government and civil society leaders, and will provide tools enabling them to better mitigate risks and capture associated opportunities.

Our only way out is the stakeholder concept. This means that the pursuit of our own interests can only be substantially realized by incorporating the interests of all those with whom we have a mutually dependent relationship. This is true on all levels, and in any capacity in which we take decisions: family life, society, business or politics.

The author is the founder and Executive Chairman of the World Economic Forum.

(China Daily 05/21/2011 page5)

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