The 13 th World Business Dialogue covering the topic "Crisis Demands - The End to Anything Goes" took place at the University of Cologne from the 17 th to the 18 th of March, 2010.
The focus of the convention dealt with the worst economic crisis since the great depression of the nineteen thirties. The need for action to overcome it is immense and immediate. Most countries are highly indebted and were barely able to prevent a total collapse of the world economy by further increasing state debts.
The 13th World Business Dialogue approached the crisis from different perspectives in order to come up with innovative and interdisciplinary solutions. In addition to a variety of workshops and other supporting events the four main panels defined the emphasis of the convention.
The massive shock which controls the financial markets and the real economy since the break down of Lehman Brothers has changed the world dramatically. Middle-term and long-term consequences, on the other hand, are not appreciable at all due to uncertain developments. How do leaders from the business sector and politicians evaluate the current situation and the events since the beginning of the crisis? How can we deal with highly increased national debts? Are these and other effects of the current situation a first step towards a new crisis, a crisis of the states? How will the role of the Western World and the Asiatic Continent change in the future and in which direction will the constellation of power in economy and politics develop in the next few decades?
While major players fall, rising stars will be born and new collaborations will emerge. Some companies are facing a credit bottleneck. Consumers are acting completely irrational. Budgetary and product policy will never be the same. Against this background of ever changing economic frameworks, it appears that there are no reliable sources for predictions. Not only do economic frameworks influence the decision-making procedure, but the psychological aspect of how humans, in general, make decisions also plays an important role in this process. What influences do you use when faced with decisions? In addition, there is the fact that the consequences of our decisions in this globalised world remain often unclear. This crisis catalysed thinking from years to months - even weeks. Have decision-making processes changed in the past 20 years--in the past year? Companies need a flexible organisational structure that allows quick response to sudden shifts. The crisis has revealed the weak points of companies and forced executives to change strategic thinking habits. As the past teaches, the biggest risk a company can face is something completely new that never was imagined. In this fast paced environment, drafting possible scenarios and thinking of how to react to them is essential. We would like to discuss the question of how companies face constantly altering circumstances. The crux of this panel is: How to judge information and make decisions, especially in times of uncertainty.
With the economic crisis, medium-term plans and long-term strategies of companies and countries are blocked. The length and proportions of the economic crisis weren't foreseeable and were until now extremely underestimated. How is the development of the economy going happen in the future? For which possible increasing scenarios in the world and regional must countries and the economy be prepared? Can we expect a V- or a W-shaped growth process or are we going to be confronted with the Brazilianisation-Theory, which means the rich getting more and more powerful and the poor being neglected even further? What would be the political and enterprising consequences of each situation? Can we expect a long-term growth to be desirable and if yes, how can we realize sustainable growth today? Another discussion includes how long-term plans of companies could be shaped today and which acclimatisation is indispensable because of the economical and political environment.
Bad speculation, extravagant bonus payments, cutbacks, ascending unemployment rate, calls for more state, and fears of unhealthy protectionism, panic mongering and minimization: media plays an important role in the dissemination of information. Media appoint the themes of the daily coverage and thus define the mindset of a large number of people worldwide. The so-called ?new media? provide the spread of information with a new dimension of speed, availability and ubiquity for billions of people. It is a fact that (new) media played a role in the current financial and economic crisis. But what exactly was the effect of media on the evolution of this crisis? Can this omnipresent flow of information act as a catalyst of these disastrous incidents? The financial crisis is not only the result of a bubble caused by immoderate financial practices but to a certain extent also the result of mass panic and a general loss of trust in the system. The objective is to debate possible solutions optimizing the organisation of media and all parties involved in the information flow in order to guarantee more sustainability and healthy growth.
How do the economic frameworks need to change in regards to the increasing acceleration of the world's economy in order to create an economy where entrepreneurial decisions are not dominated by the constant fight against crises, followed by the celebration during euphoric bubbles? The stabilization of the financial and economic systems and of worldwide growth rates while trying to simultaneously reduce emissions is a central challenge of our time. Therefore, in the future more ethical and responsible management approaches will play an indispensable role in companies and on their boards. The recent crisis has highlighted the disastrous consequences caused by an instable financial system. Furthermore, it showed the enormous interdependencies of our globally linked world. Consequently, economic researchers, as well as leaders from the business sector, ask for the lessons being learned from the crisis. Did anything change in people's behaviours? Are we heading towards true sustainability with our actions? And, finally, do we underrate the crisis' impact by regarding it as a non-recurring phenomenon without any need for structural changes?
Top speakers like Axel Weber (president German Central Bank), David B. Speer (Chairman an CEO ITW Inc.) and Prof. Muhammad Yunus (Founder Grameen Bank and Nobel Peace Laureate) inspired the conventions participants to engage in critical thought about necessary economic changes.
