There have been intelligent discussions about the structural issues facing Europe, and related structural pressures facing the banking system.
The role that emerging economies play in the global picture continues to expand – a rapidly growing middle class in developing markets from Asia, to Africa and the Middle East is creating tremendous opportunity but also increasing demands to meet the growing needs for employment and resources. There is also an overarching discussion about addressing inequalities – whether in the context of executive compensation or the dramatic differences in living standards that exist across the world.
From a business perspective one of the most important discussions at Davos has been around responsible capitalism. One of the hard lessons learned from the financial crisis is that no business can operate solely with a view to maximizing short term returns. Long term sustainability is the key. This means business cannot only function to meet the short term demands of shareholders; long term performance means taking into account not just shareholders, but the company’s broader set of stakeholders – customers, employees, taxpayers and communities. Coming from the Asia Pacific region I especially appreciate the perspective we can gain from businesses in the East, which typically plan with a 10 to 15 year horizon; not just for the next quarter.
The challenge we all face is in building and maintaining sustainable organizations that can adapt successfully in a rapidly changing environment. This is where it becomes especially critical to have a longer-term perspective.