DCene - 2009 Annual Conference: 100 Days

E D I T I O N

“The First 100 Days” Conference Examines Options for New Economic Growth

Debating the need for a global financial architecture

Photo by: Kaveh Sardari

The Bertelsmann Foundation joined forces with its media partner, the Financial Times, to host “The First 100 Days. Opportunities in Crisis: Empowering society in a time of economic turmoil” on April 23 at Washington, DC’s Newseum. The conference, timed to coincide with US President Barack Obama’s 100th day in office, brought together about 200 high-level representatives from the US and European political, corporate, media, academic and think-tank communities to discuss innovative, yet practical and realistic, solutions to the economic crisis.

Conference participants included EU Economic and Monetary Affairs Commissioner Joaquin Almunia, French Finance Minister Christine Lagarde, Ukrainian Vice-Prime Minister Hryhoriy Nemyria, philanthropist George Soros and World Bank President Robert Zoellick. Messrs.

Hosts Liz Mohn and Gunter Thielen of the Bertelsmann Foundation Photo by: David Hills

Almunia, Soros and Zoellick comprised the keynote speakers. Minister Lagarde and VicePrime Minister Nemyria joined one of five panels that examined different aspects of the crisis.

For the conference agenda, go to: http://www.bertelsmann-stiftung.de/bst/en/media/xcms_bst_dms_27945_27946_2.pdf.

Summaries of individual sessions can be found on the following pages, along with links to full reports on each session.

©Copyright 2009, Bertelsmann Foundation. All rights reserved.

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Inspiring People. Shaping the Future.

M AY

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S P E C I A L

KEYNOTE SPEAKER: Robert Zoellick, President, World Bank Group

Quotes of the Day

Mr. Zoellick called on G-20 nations to

…on the Bertelsmann Foundation

follow through on pledges made at their

GUNTER THIELEN, President and CEO, Bertelsmann Foundation

recent London summit to ease the burdens of the current economic crisis.

“As one of Europe’s leading think

He urged conference participants to

tanks, we see a need, particularly in

turn their attention to developing

these times, to strengthen trans-

countries and see the crisis from their point of view. These countries, he said,

Atlantic ties. Our purpose is to

require investment in a number of

strengthen the networks across the

areas, especially infrastructure and

Atlantic and to exchange best Photo by: David Hills

agriculture. He cited China as an

example of a country that has benefited from such investment, noting that the Chinese have thereby created a foundation for growth. This was especially important since the current crisis has eroded jobs in the developing world and has led to a decrease in remittances from migrants in

practices among Europeans and Americans. We want to challenge conventional thinking and policy to learn from one another, to improve

industrialized nations.

and advance our societies.”

For a full report on this session, go to: http://www.bertelsmann-stiftung.de/bst/en/media/xcms_bst_dms_27870_27871_2.pdf

KEYNOTE SPEAKER: Joaquín Almunia, EU Commissioner for Economic and Monetary Affairs

…on the causes of the global financial crisis GEORGE SOROS, Chairman, Soros Fund Management, LLC “…this is not just an ordinary

Mr. Almunia echoed the call for greater

bubble, it's a super bubble. And the

trans-Atlantic cooperation in

housing crisis was merely the

confronting the global economic crisis.

detonator that detonated the

The commissioner admitted that the

explosion of the super bubble. Now

downturn had hit Europe as hard as the

the super bubble is a more

US, although he originally thought that that would not be the case.

complicated animal because there Photo by: Kaveh Sardari

For a full report on this session, go to: http://www.bertelsmann-stiftung.de/bst/en/media/xcms_bst_dms_27878_27879_2.pdf

again, the underlying trend is the increasing use of credit and leverage. And the misconception is

KEYNOTE SPEAKER: George Soros, Chairman, Soros Fund Management, LLC

the belief that markets are self-

Mr. Soros delivered the final keynote

correcting and there's no need to

address at the conference, calling the

regulate them.”

current economic crisis the worst since the Great Depression. “This crisis is not just an ordinary bubble, it’s a super bubble,” he said, conceding that the collapse of financial markets was generated in the US. He called the belief in self-regulating and selfcorrecting markets a misconception, warning that the mispricing that occurs in financial markets can be self-reinforcing, making them prone to bubbles.

For a full report on this session, go to: http://www.bertelsmann-stiftung.de/bst/en/media/xcms_bst_dms_27872_27873_2.pdf

Photo by: David Hills

PANEL 1 Shared Responsibilities: The Roles of Government, Industry and Labor in an Economic Downturn “Financial capitalism is not

Quotes of the Day …on dealing with the global economic crisis ROBERT ZOELLICK, President, World Bank Group

dead. It is in hibernation.” With these words, Financial Times

“…I think one of the challenges,

Editor-in-Chief Lionel Barber

whenever you’re in a crisis, is you

opened the Bertelsmann Foundation’s 100 Days

have to be fast and flexible in

conference. The form of

dealing with the problems of the

capitalism that should exist in

day. But you have to try to keep

the wake of the financial crisis,

your eyes out a little bit further on,

however, became the main topic

learn lessons from looking back in

of discussion during the

the past and try to see how you can

conference’s first panel.

Photo by: David Hills

PANELISTS:

plant seeds today that will create opportunities tomorrow.”

Roel Campos, Partner, Colley Godward Kronish LLP, member of President Obama’s Economic Advisory Board and former Securities and Exchange Commission Commissioner Leonhard Fisher, CEO, RHJ International and former member of the Credit Suisse Group

…on the consequences of the global economic crisis CHRISTINE LAGARDE, Finance Minister, France

Executive Board Reiner Hoffmann, Deputy Secretary General, European Trade Union Confederation Nancy LeaMond, Executive Vice President, AARP Social Impact and Director, Divided We Fail Campaign

“What I believe is that consumption, hopefully throughout the world, is going to be of a different nature. It’s

Moderator: Lionel Barber, Editor, Financial Times

going to be much more mindful of For a full report on this session, go to: http://www.bertelsmann-stiftung.de/bst/en/media/xcms_bst_dms_27876_27877_2.pdf

limited resources, of natural resources, of the necessity to invest in

PANEL 2 Greening the Stimulus: Climate and Energy

new technologies that will be

This session examined the

that we do not draw on those fossil

options for using the US

resources that will exhaust and just

sufficiently creative and innovative so

economic-stimulus package as

naturally by virtue of use. So, I think,

an unprecedented opportunity

it’s going to be a new balance, just in

for controlling global warming,

the way the world has changed and

reducing dependence on foreign sources of fossil fuels, and

will never be the same again because

researching technology for

we have the emerging countries as

sustainable energy. Panelists

new players, because we need to set

agreed that the stimulus’ focus

new rules. In the same vein, I think

should go beyond the

we will move towards new

immediate goals of kick-starting the economy to include longterm gains for sustainable, environmentally friendly growth.

PANELISTS:

Photo by: Kaveh Sardari

consumption trends that will play a different role in the way in which it kick-starts and stimulates and maintains growth.”

Gerald Fine, President and CEO, SCHOTT North America Caio Koch-Weser, Vice Chairman, Deutsche Bank Group Lewis Milford, Founder and President, Clean Energy Group

Quotes of the Day

Margrete Strand Rangnes, Deputy Director, Blue Green Alliance Moderator: Paula Stern, Chairwoman, The Stern Group, Inc. And former Chairwoman, US International Trade Commission For a full report on this session, go to:

LEONHARD FISCHER, CEO, RHJ International and former member of the Credit Suisse Group Executive Board

http://www.bertelsmann-stiftung.de/bst/en/media/xcms_bst_dms_27941_27968_2.pdf

“I’m very afraid that the tendency of

PANEL 3 Divisions of Labor: Wages, Pensions and Benefits

public policy in the last 12 months

The state of the American and

acceptance and the need of the

European labor markets, the

free-market society to lose, fail, and

has been the evolution of the

importance of training and skill

go bankrupt. And if that prevails

development to economic

then I would be seriously worried.”

competitiveness, growing inequality as exemplified by

“…the moment someone takes away

Wall Street bonuses, and

my right to lose money they take

cultural values that impact

away my moral right to make

today’s workers formed the

money…”

main topics of discussion during this panel.

PANELISTS:

“…in a world where financial Photo by: Kaveh Sardari

Barbara Dyer, President and CEO, Hitachi Foundation and Chairwoman,

companies are no longer allowed to go bankrupt they need to be

National Taskforce on Workforce Development

regulated extremely… You have to

Scott Paul, Executive Director, Alliance for American Manufacturing

limit the size of them. You have to

Xavier Prats Monné, Director for Employment, Lisbon Strategy and International Affairs, Directorate General for Employment, Social Policy and Equal Opportunities, European Commission

limit the scope of them, and you have to limit their freedom because you only are entitled to optimize

Howard Rosen, Executive Director, Trade Adjustment Assistance Coalition

your profit if you’re also entitled to

Moderator: Bruce Stokes, Trade and International Economics Correspondent, National Journal

go bust.”

For a full report on this session, go to: http://www.bertelsmann-stiftung.de/bst/en/media/xcms_bst_dms_27939_27940_2.pdf

…on trans-Atlantic financialsector regulation

PANEL 4 Caring for Health: Systems, Access and Reform

JOAQUIN ALMUNIA, EU Commissioner for Economic and Monetary Affairs

“No issue is more complex or more critical than healthcare,

“…I hope we will be able to agree

and the current system is very

on the same kind of regulatory

difficult to address.” With that, Ronald Brownstein, political

reforms for the financial sector. We

director of Atlantic Media Co.,

need financial regulatory convergence

set the tone for the debate on

between the US and EU. And [it] is

healthcare. Forty-five million

extremely important to have an

Americans lack health insurance

efficient financial system because

while health costs continue to increase significantly. Reforming

the financial system in the future

the US healthcare system, which

cannot be based on leverage, on the

would have to address both

Photo by: Kaveh Sardari

issues, returned to the spotlight when US President Barack Obama and the new Congress made it a top priority. A framework for reform in the US, Mr. Brownstein predicted, could come by the end of the year.

excesses that triggered these crises.

And we need that sound regulation on both sides of the Atlantic.”

Quotes of the Day

PANELISTS: Howard Dean, Physician and former Governor of Vermont

…on healthcare reform

Karin Johansson, State Secretary, Ministry of Health and Social Affairs, Sweden

HOWARD DEAN, physician, former Governor of Vermont and US presidential candidate in 2004

Uwe Reinhardt, Professor, Princeton University Anthony Welters, Executive Vice President, UnitedHealth Group and President, Public & Senior Markets Group

“…Americans think that death is an avoidable consequence of any

Moderator: Ronald Brownstein, Political Director, Atlantic Media Co.

illness…. It leads to this attitude that

For a full report on this session, go to:

we can spend anything we want to

http://www.bertelsmann-stiftung.de/bst/en/media/xcms_bst_dms_27937_27938_2.pdf

and achieve any result and anything

PANEL 5 The Need for a Global Financial Architecture

is possible…. We think it’s perfectly

The conference’s final session

hire someone to ream out our

addressed the need for a global

arteries 25 years later.”

fine to go to McDonald’s and then

financial architecture in the

UWE REINHARDT, professor, Princeton University

aftermath of the current economic crisis. Panelists debated methods of regulation

“The reason why we don’t have

that would not stymie growth

queues in America is… we ration by

but would prevent the outbreak

price and ability to pay. An

of another crisis.

uninsured person, on average, gets

PANELISTS:

about half the healthcare of an

Lescek Balcerowicz, Professor, Wausau School of Economics

equivalently insured [person].

Photo by: David Hills

and former Finance Minister, Poland

“…an awful lot of American illness is

Robert Hormats, Vice Chairman, Goldman Sachs (International)

actually caused by having to deal

Christine Lagarde, Finance Minister, France

with the market and all its

Hryhoriy Nemyria, Vice-Prime Minister for European and International Integration, Ukraine

uncertainties. There are not many

Wolfgang Schüssel, former Chancellor, Austria, and member of the Austrian People’s Party

Europeans who lie in bed, wake up

parliamentary group

at three in the morning and worry

Moderator: Chrystia Freeland, U.S. Managing Editor, Financial Times

about losing health insurance. Our

For a full report on this session, go to:

papers are full of tragic stories.”

http://www.bertelsmann-stiftung.de/bst/en/media/xcms_bst_dms_27868_27869_2.pdf 450 guests attended a pre-conference reception at Washington, DC’s National Portrait Gallery

Photo by: David Hills

Quotes of the Day …on labor-market reform REINER HOFFMANN, Deputy Secretary General, European Trade Union Confederation “I’m very keen for what we are calling a social-market economy, which is entirely different from a free-market economy. Because if you ask the Photo by: David Hills

Photo by: Kaveh Sardari

question on fairness, you [must] look at the income distribution over the last decades. Taking the example of the United States, huge increases in productivity [occurred while] wages have stagnated. This is fair…?”

XAVIER PRATS MONNÉ, Director for Employment, Lisbon Strategy and International Affairs, Directorate General for Employment, Social Policy and Equal Opportunities, European Commission “…the most expensive thing is to

Photo by: Kaveh Sardari

Photo by: David Hills

[take] people out of the labor market because you never get them back in…

Let’s do what we can to keep people in employment even if that means reducing working time…. This is… what one can take home from what our successful European experience is.”

…on developing green technologies CAIO KOCH-WESER, Vice Chairman, Deutsche Bank Group Photo by: Kaveh Sardari

Photo by: Kaveh Sardari

“It’s very important not just to focus on the immediate stimulus packages, but how they are embedded in the medium-term policy perspective.

There is increasingly the awareness that, in terms of future sources of growth that will replace many of the sources of growth we will not have in the future world economy, climate change [and] energy efficiency will create jobs and will be… major growth areas.“

Photo by: Kaveh Sardari

Photo by: Kaveh Sardari