Davos Notebook

from The Great Debate:

Trust: the commodity in shortest supply

Where do I put my money?
What do I read?
Who do I listen to?
Who saw it coming?
Who made money from it?
Who will make money from it?
Who can I trust?

david-schlesinger-in-the-newsroom
As Davos gets under way, my feeling from chatting with contacts and listening to conversations around me is that one thing the world economy is really suffering from right now is a crisis in trust.

Institutions failed us.
Governments failed us.

Our own intuition failed most of us (George Soros said today that he protected his capital and had a satisfactory return -- that's certainly better than I did!).

Our advisers failed us.
The media failed us too.

So before we buy again, or invest again, or behave normally again, people need an answer to the fundamental question -- where can I invest my trust.

I think that's the issue behind all of the discussions here.

And solving the related questions of "who is trustworthy now" and "what can we do to create trust in governments and institutions" seems a vital first step.

The shift in power from West to East

One news theme I’ve asked our journalists to be alert to this year is the shift in power and emphasis from est to East.

The rise of China’s economic power during 30 years of reform and opening to the world is just one manifestation of this; the knowledge and service powerhouse that India has come in a globalised world is another. At Davos this year I’m moderating a panel on Asian innovation that will surely highlight software advances in Japan, Korea and Thailand as well.

I’m convinced the current global economic crisis must lead to a fundamental reassessment of how power and influence is expressed through the world, from manufacturing and service oriented Asia through the oil-rich Gulf.