A call for trust
President of the World Economic Forum Klaus Schwab spoke to Reda Helal about Davos 2003, about building trust between the West and the Islamic world, the possible war in Iraq, and the Palestinian-Israeli conflict
Is the role of the World Economic Forum in the international arena subsiding?
The World Economic Forum is an organisation which aims at changing mindsets and paving the way for constructive decision-making on a series of complex and interconnected issues which affect the global agenda. Our unique "multi- stakeholder" policy means the Forum takes leaders from all parts of society through issues that can only be solved through combined effort. Indeed, similarly to the unique current era of "globalisation" -- where economic, social, political and societal realities are intricately interdependent -- the World Economic Forum is the only organisation that brings all social players together, taking them through these global challenges in the hope of finding appropriate solutions.
What do you expect to be the outcome of Davos 2003?
The 2003 Annual Meeting of the World Economic Forum is placed at an extremely critical juncture, where global political, economic and social crises require speedy decisions and at a time when change is sorely needed. For action to occur, however, all the social players must engage in constructive dialogue. But there can be no dialogue without trust, and "building trust" is the overall theme of this year's annual meeting.
Building trust between various societies a key concern at this year's meeting. Why?
As I said, trust is a prerequisite for constructive dialogue and is necessary if comprehensive and just decisions are to be made. Increasingly, one sees that people have started to lose trust in the private sector, their governments, international institutions and regulators but -- and perhaps more importantly -- it is clear that tension is increasingly present in several areas of the globe, particularly in the Middle East. This is a reality that affects all global citizens and one that decision-makers must address together.
But how can the World Economic Forum help build trust among nations?
The role of the World Economic Forum is not only to build trust between nations. That is the role of the United Nations. Our role is to promote dialogue between people, to promote understanding between decision makers from all walks of life and not only from governments, and to address issues collectively. And it is by bringing such a varied group of leaders together, by working through issues that affect humanity as a whole, that we plant the seeds for trust and cooperation. We believe that these are indispensable ingredients for peace, stability and prosperity.
Do you think that it is still possible to build trust between the Islamic world and the West?
We do not believe that the Islamic world and the West do not trust each other, nor that there is a clash of civilisations waiting to happen just around the corner. This is what certain vocal extremists, from both sides, are portraying as reality. They do this by claiming that one system is better than the other. Unfortunately this is often exaggerated by the media, as well as some intellectuals and politicians.
The issue is not which system is better, but how can we work together, just like the West and the Islamic world have been doing since ancient times. This history of dialogue and "cross-pollination" has been incredibly enriching for both civilisations and should continue. There is certainly a need for a constructive dialogue between the Islamic world and the West on complex issues such as democracy and governance, civil society, globalisation, modernisation and education, and this is the purpose of the World Economic Forum's "Council of 100 leaders" which is being launched in Davos this year. The Forum's council will be composed of an equal number of leaders from the West and the Islamic world and will represent a multi- stakeholder platform. We must together present an alternative example to those who, for there own political reasons, prefer to speak in terms of mistrust or clash.
What if the war in Iraq erupts? What would be the effects on the world economy, oil markets, and Arab economies?
War against Iraq will undoubtedly have a destabilising effect on the economies of the Middle East. These effects are not quantifiable now and all estimates are purely speculative. However, independent of the immediate political reality, the Arab economies have a series of crucial and very serious challenges that must be addressed now. These were clearly identified in the World Economic Forum's Arab World Competitiveness Report which was published in September last year. These challenges are exacerbated by increased population growth of the region, by its dire need for improved physical as well as economic infrastructure, but also by a poor education system. In-depth social and economic reforms are urgently required if the region is to hope, one day, to claim its rightful place in the global economy.
At the moment, the Palestinian-Israeli conflict is the main concern for Arabs. How can we build trust in the Middle East without resolving this conflict?
The Palestinian-Israeli conflict does, indeed, take centre- stage in the Middle East. As you know, historically, the World Economic Forum was the primary player of the region who provided economic backing for peace, when the prospect of peace was still a reality, i.e. between 1994 and 1997. I, personally, am saddened by the situation of conflict and suffering that has prevailed in the region since the crumbling of the peace process, and can only repeat our statement that, should the political process become redirected towards peace, the World Economic Forum will certainly ensure that the process will be supported by the international and regional business community and civil society at large.
What do you think is Egypt's role in building trust between Islam and the West?
Egypt is a very important country in the region and, due to the size of its population and intellectual leadership, carries the weighty responsibility of representing the Arab world on the global stage. In this respect we are sorely disappointed that Egypt will not be represented at the political level at the 2003 World Economic Forum. This year, perhaps more than ever in the past, Egypt has missed a very timely opportunity to be in Davos when the world's leaders will be focussing on issues which affect Egypt both as a leading Arab nation and leading developing nation, but also as a leading Muslim nation -- at a time where dialogue and cooperation are crucial, especially now that the World Economic Forum is promoting dialogue with the launch of the West-Islamic world dialogue and the 100 leaders council.
