"Perspectives are changing. The fact is that a completely new global balance of power is being created." Angela Merkel Federal Chancellor of Germany

The theme of the World Economic Forum Annual Meeting 2007 - Shaping the Global Agenda: The Shifting Power Equation - underscored the particular challenge of this period of rapid globalization. "We are living in an increasingly schizophrenic world where economies are booming and global signs are promising but underneath are economic, political and social risks as well as imbalances and inconsistencies," said Klaus Schwab, the Forum's Founder and Executive Chairman. "We want to make sense of this world and shape the global agenda, taking into consideration the fragilities of global development and global systems. This is the unique contribution we make each year - to analyse the state of the world, the challenges, risks and opportunities. We sort out our priorities and come out with solutions to our problems."

Davos, as E. Neville Isdell, Chairman and Chief Executive Officer of The Coca-Cola Company, put it, is the "epicentre of engagement." The Meeting's outcomes amply illustrated the unique approach that the Forum brings to the global agenda through participating government, business, media, academic and civil society leaders from across countries, continents and cultures. It was precisely because of this potent mix of actors that, at this Meeting more than any previous one, the Davos community defied the risks, concerns and lingering doubts to move from awareness and commitment to concrete action on climate change and sustainability.

Among the outcomes of the Annual Meeting:
•	Decision by 30 trade ministers to restart the Doha Round of global trade negotiations at the subministerial level which subsequently led to a full resumption of the talks
•	Formation of the Climate Disclosure Standards Board, a new international partnership to establish a generally accepted framework for climate riskrelated reporting by corporations
•	Establishment of a joint Israeli-Palestinian business council to encourage and facilitate cooperation between Israeli and Palestinian business leaders and to reinforce economic relationships and help peace building efforts
•	Creation of an alliance of leading companies to bring power to villages in sub-Saharan Africa
•	Agreement among four global accounting firms to work with the World Economic Forum Partnering Against Corruption Initiative (PACI) to support the fight against corruption
•	Renewed affirmation of support for the PACI from the heads of the World Bank, the African Development Bank, the Asian Development Bank, the European Bank for Reconstruction and Development and the International Finance Corporation
•	Release by the World Economic Forum and the Reinventing Bretton Woods Committee of the final report on a two-year, public-private review of the international monetary system in cooperation with G20 governments

Another notable outcome from Davos was the recognition that the Forum and its partners in the business community and civil society have a responsibility to promote open discussion of globalization, both its advantages and disadvantages, how those benefits can best be enhanced and shared, and how the negative effect can be reduced and those affected helped. "Most people who are hurt or think they are hurt by globalization know it," said Renault President and Chief Executive Officer Carlos Ghosn, who is also the President and Chief Executive Officer of Japanese automaker Nissan. Added Unilever Group Chief Executive Officer Patrick Cescau: "Globalization is worth defending. It is also worth being explained."

The Annual Meeting agenda was designed to help the 2,400 participants in Davos and those outside who joined the conversation through the Internet - perhaps through their Second Life avatars - to understand the many aspects and implications for business and societies of globalization and the shifting power equation. The programme was organized under four sub-themes - Economics: New Drivers; Geopolitics: The Need for Fresh Mandates; Business: Leading in a Connected World; and Technology and Society: Identity, Community and Networks.

The Forum would like to thank the distinguished Co-Chairs of the World Economic Forum Annual Meeting 2007, each of whom provided invaluable support to the proceedings and brought their considerable experience and wisdom to the discussions.

"Globalization is the single greatest economic engine of our time" Tony Blair Prime Minister of the United Kingdom

From left to right: Eric Schmidt, Chairman of the Executive Committee and Chief Executive Officer, Google, USA; E. Neville Isdell, Chairman and Chief Executive Officer, The Coca-Cola Company, USA; James J. Schiro, Group Chief Executive Officer and Chairman of the Group Management Board, Zurich Financial Services, Switzerland; Michelle Guthrie, Chief Executive Officer, Star Group, Hong Kong SAR; Sunil Bharti Mittal, Chairman and Group Managing Director, Bharti Enterprises, India

Economics: New Drivers
While globalization has resulted in an unprecedented expansion of global trade and investment that has spurred the world economy to grow at its fastest pace in three decades, lifting hundreds of millions out of poverty, the benefits are not evenly shared. Renewed efforts are needed to mitigate the negative effects of globalization.

•	Growing unease, in particular about job creation and security, could lead to political backlash. To counter this, both government and business have to better communicate the benefits of globalization. More measures must also be taken to insulate workers from the negative effects of competition in the increasingly global labour market.
•	Greater attention must be paid to the impact of the rising tide of capital flooding through the world's financial markets and the fact that financial innovations are deepening the connections among global markets.
•	Urgent steps must also be taken to combat the negative effects of increased industrialization and energy consumption related to rising living standards. Because of the difficulty in forging a global consensus on an approach to climate change, nations should undertake unilateral efforts to limit carbon emissions and support international mitigation efforts, such as carbon trading programmes.
•	Efforts are also required to plan for coming demographic imbalances, focusing on job creation for the young and pension and healthcare reforms to address ageing populations.

"Most people who are hurt or think they are hurt by globalization know it. Most people who benefit do not know it. What we need to do is come in with concrete cases and messages." Carlos Ghosn President and Chief Executive Officer, Renault, France; President and Chief Executive Officer, Nissan, Japan

Geopolitics: The Need for Fresh Mandates The international community's capacity to handle the complex and fast-changing global agenda is hampered by the sometimes perplexing shifts in power relationships that are playing out, particularly the emergence of new poles of influence and nonstate actors.
•	While the US remains the dominant world power, its position is increasingly challenged or constrained by new emerging players such as China and resourcerich Russia, as well as states with nuclear capabilities and ambitions such as North Korea and Iran.
•	This new world order requires a fresh, pragmatic approach to global governance and management of the global agenda, including the reform of international institutions and agreements to rebalance relationships in the world to acknowledge power shifts.
•	The ultimate power shift is the rise of non-state actors - no longer a term that instantly connotes malevolence as it had in the past. Grassroots movements, communities, civil society and companies are forging novel partnerships to develop new solutions and tackle global challenges such as climate change.

Business: Leading in a Connected World The proliferation of technology, global risks and the multiplying pressures from rapid globalization have increased the responsibilities of companies and their leaders, challenging them to find new and innovative approaches to doing business. Chief executives must now look beyond shareholder interests and cater for the needs and concerns of a wider group of stakeholders.
•	The CEO's main task is to enhance collaboration and develop new partnerships to address everything from the challenge of research and development to strategic issues such as climate change. Companies cannot rely on old command-andcontrol models.
•	Companies also face rising pressures from technology-empowered consumers, employees who want to work for socially responsible enterprises, and shareholders who demand greater transparency and better governance.
•	The expanding role of emerging markets both as a destination for investment and as a source of investor capital is raising difficult questions about everything from national security to clashing cultures. In emerging markets, CEOs must also address the particular challenge of human resource management.
•	Intense scrutiny and stress on the management of public companies are increasing interest in privatization and fuelling in part the rapid expansion of private equity investment. But private ownership does not shield companies from the pressures to which they must respond.

Technology and Society: Identity, Community and Networks
The rapid convergence of telecommunications, cable television and the World Wide Web is driving the growth of new services that blur the line between audience and producer, resulting in an explosion of user-generated information, entertainment and services. The impact of this power shift is affecting everything from corporate communications to elections, from the way companies conduct R&D to the social behaviour and privacy of individuals.

•	The expansion of customer-generated content and online communities on popular websites such as YouTube and Second Life have perplexed incumbents but opened tantalizing new business opportunities.
•	As they develop in quality, virtual worlds could become the common interface for all Internet usage.
•	The growth of online communities is spurring debate about the ability of the Internet to break down barriers based on geography, nationality, sex or appearance. The practice of using avatars is also raising questions about the impact on social interaction and psychological health.
•	Grave concerns about privacy, security and online fraud threaten to derail the future of Internet commerce.
•	IT advances are changing the way institutions and companies collaborate within their organizations and with each other, particularly in R&D.

"The rise of China, India and other countries in Asia is not a threat but an opportunity. When you see the incredible consumer market opportunity for global businesses, it is quite extraordinary. The shifting power equation does not have to mean that there are winners and losers."
Michelle Guthrie