by admin | May 25, 2021 | Opinions
By Amit Kapoor & Bhawna Kakkar,
India is putting together this year its largest entourage of ministers, policymakers and business leaders for the World Economic Forum’s annual meeting at Davos — with the Prime Minister addressing the opening plenary session at the prime event.
The Davos meeting marks attendance of the richest and most powerful among the elite from across the world to discuss global economics and politics. This year’s theme is “Creating a shared future in a fractured world”, highlighting the need for collaborative and integrated action to address the multitudinal scale of challenges that our world faces today.
Forums with international repute evolve over a period of time, just like other organisations. The World Economic Forum (WEF) too has widened its ambit since 1971 — from discussions limited to global economic change to include political and social change as well. This broadening has been brought by an emphasis on dialogue and consensus between conflicting agendas.
The growing unification within the world economy has helped India establish itself as an emerging market economy to a considerable extent. With elite economic powers now recognising India’s presence worldwide in major sectors, it is useful to understand the stature of our participation in forums at the global level in view of erratic global developments that have become a common spectacle today.
It is after a gap of 20 years that an Indian Prime Minister will be attending WEF’s annual meeting, the last being H.D. Deve Gowda in 1997. With recent economic reforms as the background and the Goods & Services Tax (GST) and demonetisation as the front-runners, Prime Minister Narendra Modi is expected to echo his vision of a new and transformed India by 2022 at this global stage while taking on issues relating to economic imbalances, terrorism, and cyber threats.
He is the chief marketing person of India’s narrative on national and foreign policies, entrusted with the responsibility of making sure that the message is received. The accompanying ministers, businessmen and civil society leaders too would be elaborating on the efforts made in the last three-and-a-half-years in several sessions.
This move comes at a time when there’s optimism surrounding the Indian sentiment towards economic growth and social advancement. The insightful interactions with top-notch world leaders at forums like the WEF make room for some of the best learnings and showcasing one’s own experiences to foster greater connectivity and cordial relations.
While targeting global forums, India can lay out its position in today’s world order; represent the willingness to take the lead and send out a categorical message across the global community regarding the creation of a conducive environment for doing business, and emerge as a potential partner in steering global economic growth.
Reflecting upon this view, the government is preparing for the commemorative two-day Indo-ASEAN (Association of Southeast Asian Nations) summit to be led by Narendra Modi in Delhi on from January 25. The summit will see the participation of all 10 ASEAN countries. This can prove to be an opportunity for our country to present itself as a powerful confederate to these countries in areas of strategic regional connectivity and target global positioning as well.
However, India decided to give a miss at the Asian Financial Forum (AFF), the 11th edition of which (in Hong Kong ealier this week). The AFF features the world’s most powerful business and financial players discussing ideas and the developments in dynamic Asian markets. It is not to say that non-participation at the AFF this year reflects India’s weak stance on intensifying its global presence as the reasons for non-participation are not clear.
If we look at the ramifications of such global and national forums, one can assert that these conversations and dialogues help in moving one step forward towards higher integration of thoughts and experiences. There are several other platforms even at the national level, like the National Competitiveness Forum, aiming to drive India’s productivity, competitiveness and leadership in global markets through its activities, and Thinkers Sandbox, a thought leadership platform, to name a few.
Forums like these can help our country commandeer a resilient narrative both nationally and internationally.
The average Indian here would think and say: “What’s the point in all this?” He may have never heard of a place like Davos and is very likely to think that it is nothing but a scheme by the world’s most powerful elite. As a matter of fact, there may not be big boost decisions affecting his routine activities from such dialogues. Sill, in a place where global tensions arise with a blink of an eye, it is a solace that there are neutral platforms where discussions will not turn unpleasant.
(Dr. Amit Kapoor is chair, Institute for Competitiveness, India. The views expressed are personal. He can be contacted at amit.kapoor@competitiveness.in and tweets @kautiliya. Bhawna Kakkar is researcher, Institute for Competitiveness, India)
—IANS
by admin | May 25, 2021 | Business, Business Summit, Corporate, Corporate Buzz, Emerging Businesses, Events
New Delhi : Extreme weather events have been seen as the single most prominent risk to the global economy by business leaders and policymakers, the World Economic Forum said on Wednesday.
Its annual Global Risks Report says that in 2017, the environment was by far the greatest concern raised by experts.
The report was made public just a week ahead of the World Economic Forum’s 48th annual meeting that will take place on January 23-26 in Switzerland.
This year Indian Prime Minister Narendra Modi will open the forum, while US President Donald Trump will close it, according to organisers.
The report says among the 30 global risks the experts were asked to prioritise in terms of likelihood and impact, all five environmental risks — extreme weather; biodiversity loss and ecosystem collapse; major natural disasters; man-made environmental disasters; and failure of climate-change mitigation and adaptation — were ranked highly on both dimensions.
The report has a message: the prospect of strong economic growth presents leaders with a golden opportunity to address signs of severe weakness in many of the complex systems that underpin the world, such as societies, economies, international relations and the environment.
The report, which every January shares the perspectives of global experts and decision-makers on the most significant risks that face the world, cautions that “we are struggling to keep up with the accelerating pace of change”.
It highlights numerous areas where “we are pushing systems to the brink, from extinction-level rates of biodiversity loss to mounting concerns about the possibility of new wars”.
The annual Global Risks Perception Survey (GRPS) suggests that experts are preparing for another year of heightened risk.
“When we asked nearly 1,000 respondents for their views about the trajectory of risks in 2018, 59 per cent of their answers pointed to an intensification of risks, compared with seven per cent pointing to declining risks,” said the World Economic Forum.
A deteriorating geopolitical landscape is partly to blame for the pessimistic outlook in 2018, with 93 per cent of respondents saying they expect political or economic confrontations between major powers to worsen, and nearly 80 per cent expecting an increase in risks associated with war involving major powers.
John Drzik, President – Global Risk and Digital at Marsh & McLennan insurance group, said: “Geopolitical friction is contributing to a surge in the scale and sophistication of cyber attacks. At the same time, cyber exposure is growing as firms are becoming more dependent on technology.”
“While cyber risk management is improving, business and government need to invest far more in resilience efforts if we are to prevent the same bulging ‘protection’ gap between economic and insured losses that we see for natural catastrophes.”
Economic risks, on the other hand, feature less prominently this year, leading some experts to worry that the improvement in global GDP growth rates could lead to complacency about persistent structural risks in the global economic and financial systems.
Even so, inequality is ranked third among the underlying risk drivers, and the most frequently cited interconnection of risks is between adverse consequences of technological advances and high structural unemployment or under-employment.
Steve Waygood, Chief Responsible Investment Officer with Aviva Investors, said: “It is important that the World Economic Forum is once again recognising the risk that the unchecked climate change poses to global prosperity.”
“As a global insurer, we recognise that a world that warms by four degrees would pose an existential threat to our sector.”
—IANS
by admin | May 25, 2021 | Business, Corporate, Corporate Buzz, Corporate Governance, Investing, Large Enterprise
New Delhi : Ahead of the World Economic Forum in Davos which Prime Minister Narendra Modi will attend this month, the Union Cabinet on Wednesday opened up Air India for foreign investors and brought in changes in key sectors by allowing 100 per cent foreign investment in single brand retail and construction development through the automatic route.
The decisions, taken at a meeting of the Union Cabinet chaired by Modi and intended to liberalize and simplify the FDI policy to provide ease of doing business, drew sharp criticism from both the opposition and trade bodies.
However, the government contended that the move would “lead to larger FDI inflows contributing to growth of investment, income and employment”.
Wednesday’s decision marked a key change in the aviation industry where the government had already allowed up to 49 per cent FDI in private carriers. There was a restriction that foreign airlines could not invest in the loss-making Air India.
“It has now been decided to do away with this restriction and allow foreign airlines to invest up to 49 per cent under approval route in Air India subject to the conditions that foreign investments in Air India including that of foreign airlines shall not exceed 49 per cent either directly or indirectly,” an official statement said.
It added that substantial ownership and effective control of the national carrier shall continue to be with “vested in Indian national”.
The Cabinet also approved 100 per cent FDI in single brand retail trading, tweaking its present policy of allowing only 49 per cent foreign investment in the sector through automatic route and the rest through government approval.
It also gave five-year holiday for foreign investors from the mandatory 30 per cent of local purchases. But after that, they will be required to meet 30 per cent of sourcing norms directly towards its India operations on an annual basis.
The Cabinet also decided to allow 100 per cent FDI in construction development relating to building townships, housing, infrastructure and real estate broking services.
“It has been decided to clarify that real estate broking service does not amount to real estate business and is therefore eligible for 100 per cent FDI under automatic route.”
Making changes in the sector relating to power exchanges, the government removed the restrictions on investment by foreign institute investors and portfolio investors to invest in power exchanges through primary market as well. Under the present policy, FII and FPI purchases were restricted to secondary market only.
The Congress and the CPI-M slammed the government move on Air India, saying it would only lead to the national carrier going into the hands of a foreign airline.
Former union minister Anand Sharma said the government should come clear on the Air India deal as to whether its assets “worth lakh of crores of rupees” and its route rights would also go to the investor.
He said the UPA government had consciously kept Air India out of the purview of FDI though it had allowed 49 per cent FDI in the civil aviation sector.
The Communist Party of India-Marxist (CPI-M) said the Modi government was now moving towards handing over Air India to a foreign airline.
“The government should heed the recommendation of the Parliamentary Standing Committee on Transport, Tourism and Culture which has asked the government to review its decision on privatisation of Air India and provide five years to revive the airline with its debt written off.”
There was support to the Air India move. Pervez Damania, a former Director of the now defunct Kingfisher Airlines, welcomed it saying the “government has no business to be in flying”.
P.N. Vijay, a market analyst, said the decision was “not good enough”. “It should be 100 per cent FDI in Air India.”
On allowing 100 per cent FDI through the automatic route in single brand retail, the CPI-M said the move portends the Modi government’s intentions of “moving towards allowing FDI in multi-brand retail trade”. It warned of grave consequences for the domestical retail trade.
However, Ananda Sharma termed the FDI in retail “a cosmetic change” and “minor tweak”.
“I don’t think its going to make much change because almost all the major brands of the world are already here as 100 per cent FDI was already allowed. This is done perhaps for the Prime Minister to make a statement at Davos.”
Both Congress and the CPI-M reminded the BJP that it had opposed the entry of foreign companies into retail trade earlier and it has now “hypocritically reversed its position”.
Calling it a “serious matter” for small businesses, the Confederation of All India Traders (CAIT) strongly opposed the FDI in single brand retail.
Condemning the Modi government’s “love for MNCs”, CAIT Secretary General Praveen Khandelwal said the move would facilitate easy entry of multi-national companies in retail trade and leave a large number of people jobless.
“It’s a serious matter for small businesses. It is a pity that instead of formulating policies for the welfare, upgradation and modernisation of existing retail trade, the government is more interested in paving the way for the MNCs to control and dominate the retail trade of India.”
Modi will be the first Prime Minister after 20 years to participate in the annual World Economic Forum show in Davos where world leaders and top industrialists and businessmen meet. The four-day event begins on January 23.
—IANS
by admin | May 25, 2021 | World
Washington : US President Donald Trump is expected to attend the World Economic Forum at Davos in Switzerland, in the coming weeks, an official has said.
In a statement on Tuesday, White House Press Secretary Sarah Huckabee Sanders, said the President was looking forward to attending the gathering of world leaders and business executives, The New York Times reported.
“The President welcomes opportunities to advance his America First agenda with world leaders,” Sanders said.
“At this year’s World Economic Forum, the President looks forward to promoting his policies to strengthen American businesses, American industries and American workers.”
Trump’s planned appearance at an event that is synonymous with wealth and elite prestige comes as he enters the second year of a term he won on a message of economic populism.
Presidents have rarely attended the forum in Davos, in part out of a concern that it would send the wrong message to be rubbing shoulders with some of the world’s richest individuals.
Trump won the 2016 election in part by attacking elites in the United States and promising to “drain the swamp” in Washington of lobbyists, corporate influence and members of the establishment – the very description of those who regularly attend the Davos forum.
The event in Switzerland is a global symbol of everything that Trump’s former chief strategist, Stephen K. Bannon, railed against during the presidential campaign and the first seven months in the administration.
But Trump has also spent a lifetime as a real estate mogul and television personality.
Some of Trump’s advisers were befuddled by his planned trip, coming a year after his team decided not to send a representative to the 2017 gathering.
A year into his term, Trump’s appearance at the forum is certain to highlight the clash between his America First agenda and the more globalist approach of some of America’s closest allies around the world.
Those disagreements have been highlighted during Trump’s earlier trips abroad, including arguments with European leaders about the need for action to confront climate change.
Trump’s visit to Asia last year underscored his disagreements on trade issues with countries in the region.
The President has claimed credit for the economic improvements during his first year in office, and has predicted that the tax overhaul passed at the end of last year would accelerate those trends.
The annual economic forum takes place in the resort town of Davos high in the Swiss Alps, bringing together more than 3,000 members of the global elite in what has been described as the world’s most high-powered networking event.
Founded in 1971 by Klaus Schwab, a German economics professor, the forum has become an annual meeting that includes dinners and over 400 panel discussion sessions, largely about world social and economic trends. Officially, it is an academic conference; unofficially it is a global schmoozefest for the rich and powerful.
The conference is still dominated by corporate executives, but the gathering also now attracts world leaders, some of whom use the venue as a way to hold less formal bilateral conversations.
Last year, Chinese President Xi Jinping attended the forum.
—IANS
by admin | May 25, 2021 | Business, Economy, Employment, News
New Delhi : With growth in international arrivals in India, there would be a creation of approximately one million additional jobs, according to a World Economic Forum (WEF) report.
As India prepares to launch the Incredible India 2, the report put forward few recommendations, including the importance of public-private cooperation in its execution, and suggesting that advantage be taken of the unexplored 6,00,000 villages with their own culture and heritage, ecotourism and cruise tourism to create unique experiences for travellers.
Another recommendation was to integrate the Incredible India campaign into a holistic campaign that includes not only print but also other channels, such as digital, social, placement, review sites and global media, focussing on the positives of visitor-created content while addressing the challenges these visitors say.
Taking advantage of the labour force available in India to provide a quality product to tourists and enhancing the perception and reality of India as a safe destination were other recommendations.
Several top names from the Indian travel and aviation industry have contributed towards the findings in the report, the WEF said in a statement on Wednesday.
“The industry is people focused and the quality of its people defines the value of the product. Hence the need to train and educate staff is acute here”, said Aditi Balbir, one of the contributors to the report.
He observed that the industry had the power to create jobs across the economy at various skill levels, and for the marginalized sectors of the society.
The WEF white paper also recommends a proposal to create a Tourism Board.
“Currently, India’s travel and tourism industry is fragmented and lacks a unified public-private body to represent the industry, in turn hindering its ability to achieve its potential.
“This board could support enhancing industry coordination, public-private sector initiatives and enacting change through policy recommendations,” it said.
It noted that India welcomed nine million international travellers in 2016 and its domestic demand nearly touched the 100 million mark, adding India is effectively one of the fastest growing aviation markets in the world and according to the Travel and Tourism Competitiveness Report 2017, one of the most improved nations, reaching 40th position compared to 65th in 2013.
—IANS
