RIYADH: The speakers at the second day of the three-day Global Competitiveness Forum (GCF) expressed their concern about the return of regulations and bureaucratic hurdles to the economic and business worlds, an inevitable accompaniment to government-rescue prescriptions for the current global economic downturn.
More than 1,000 political leaders, business figures, economic experts and delegates from various corners of the world gathered in Riyadh to discuss the solutions for the global financial woes under the theme entitled “Responsible Competitiveness.”
The Saudi Arabian General Investment Authority (SAGIA) is sponsoring the forum. Around 20 panel discussions have been scheduled to take place during the forum.
“Solutions for the present global crisis can only be offered by governments, which veteran politicians such as former US President Ronald Reagan, had viewed as a clog in the wheel of economy,” Stephane Garelli, director of World Competitiveness Center, said while speaking in a work session yesterday.
Robert Huggins, director of the Center for International Competitiveness, said he believed that the government regulations would only hamper the global economic progress besides burdening the economic activities with additional cost. In his view the small and medium companies rather than large multinationals, will be the worst affected by the government regulations that would inevitably follow government aid programs.
Earlier in the day, former Canadian Prime Minister Jean Chrétien called on the international community to join hands to solve the current issues and learn from the past recessions, particularly when none of the countries in the world is spared from the current crisis.
The Canadian leader pointed out that the absence of trust, a situation created by the conduct of employees in financial markets largely in New York, in London and Zurich. “We need a special program to create jobs, thus have a greater number of taxpayers, as unemployed people cost us a lot,” he added.
Aron Cramer, president and CEO of Business for Social Responsibility, warned in his speech about the depletion of the natural resources as a major problem facing the world. “The mankind would need five other planets to meet their requirements at the present rate of consumer growth in the United States,” Cramer observed.
“The major ingredient of success for business firms in the year 2020 will be manufacturing products with the least quantity of natural resources,” Cramer added.
Commenting on the increasing role of governments in solving the current economic crisis with strict regulations, Cramer said governments in advanced countries, particularly the US government, would employ soft pressure to create changes in the business culture of future days. He added that large companies are aware of the fact “as the rules of the game have changed in the present world.”
Don Thornhill, chairman of National Competitiveness Council of Ireland, emphasized the need for closer global cooperation in enforcing corporate governance and evolving smart systems at national and international levels besides stronger standards for monitoring economic activities and making necessary changes in the employment market.
One of yesterday’s session set apart for infrastructure development, drew the participants’ attention to negative results of the slow pace of infrastructure growth in developing countries.
