Collaboration is the key to economic growth
– Aron Cramer is president and CEO of BSR, a global business network and consultancy focused on sustainability. The views expressed are his own. —
As the World Economic Forum’s “Summer Davos” meeting in Dalian, China, gets underway, it is a bit chilling to think back to how the financial crisis was unfolding in real time during last year’s event.
As the 1,000 leaders gathering for this year’s event spend three days debating how to restore economic growth and social stability, the need to focus on a long-term transition to a more sustainable economy is clearer than ever.
Doing this will require unprecedented cooperation among businesses and consumers. The companies that build new business models and innovative products and services will win in the reset world, and shape an economy that avoids disruptions like the one that erupted last fall.
At this year’s meeting, I am chairing two workshops, where we will explore how to build new models of production and consumption that hold the potential to create not only a return to growth, but to a more sustainable model of growth.
Arising from an interlocking set of crises, three immense challenges stand before us. We must:
1. Return to economic growth while deleveraging massive debt. 2. Transition to a low-carbon economy that uses natural resources more efficiently. 3. Create new social contracts both inside and between nations.
from Rolfe Winkler:
Buffett’s Betrayal
When I was 14, Warren Buffett wrote me a letter.
It was a response to one I'd sent him, pitching an investment idea. For a kid interested in learning stocks, Buffett was a great role model. His investing style -- diligent security analysis, finding competent management, patience -- was immediately appealing.
Buffett was kind enough to respond to my letter, thanking me for it and inviting me to his company's annual meeting. I was hooked. Today, Buffett remains famous for investing The Right Way. He even has a television cartoon in the works, which will groom the next generation of acolytes.
But it turns out much of the story is fiction. A good chunk of his fortune is dependent on taxpayer largess. Were it not for government bailouts, for which Buffett lobbied hard, many of his company's stock holdings would have been wiped out.
Berkshire Hathaway, in which Buffett owns 27 percent, according to a recent proxy filing, has more than $26 billion invested in eight financial companies that have received bailout money. The TARP at one point had nearly $100 billion invested in these companies and, according to new data released by Thomson Reuters, FDIC backs more than $130 billion of their debt.
To put that in perspective, 75 percent of the debt these companies have issued since late November has come with a federal guarantee. (Click chart to enlarge in new window)
Just another example of Buffett’s hypocrisy (he advocates that companies pay dividends–but his own doesn’t. He rails against insider Boards, but look at his own packed with kids and cronies. He advocates corporate disclosure, but his own reporting is of the “trust me” variety.) Maybe at one time this guy could invest under the radar and buy undervalued companies and be a portfolio genius, but now he simply has too much money to make it worth his while to make money off doing good deals with private owners–the only entity left is the biggest sucker of them all–Uncle Sam, courtesy of Professor Ben and Easy Al.
As to the people who suggest that his only duty is to his shareholders–if it is, then he should stick to that and not give advice to the rest of us. Perhaps he could preface his well-publicized remarks that he is solely motivated by doing what is best for Berkshire Hathaway–somehow I doubt he would want that. But you can’t have it both ways.
Dear Editor,Your article on World Economic Forum and related economic growth are very knowledge oriented.When compared to previous decades,now a days,many countries have started doing the new ,real economic thoughts to their action oriented schedules.Due to new,real and progressive thinking,major under developed countries are turning to developing nations.Why,because collaboration and co-ordination on trade,education,tourism,exchanges of goods and services,and knowledge sharing for better economic and social growth.We knew very well that,historically said about China.India,South Africa and Brazil branded as old,traditional set up.Now, everything is changing at jet speed.As per your reporters,and coverages of latest extra ordinary better co-operation and co-ordination by China and India with Australia,Iran,Japan and with famous western countries are created,produced and showing fantastic results on many sectors.Your one sentences can be agreed by all economic thinkers-A year after the Great Recession,we know not only what the challenge is but also what the answers look like.I think that all recent developing,big nations will participate and will raise new queries for long pending issues in forth coming World Economic Forum.Your subject can be very useful to Economics school of thoughts.Lastly , I want to finish my comments —–Together We Can and Together We Will.This slogan will be practicable at this economic juncture.