Global Themes

On Globalization & Venture Capital

Sleepless in Davos…

WEF_Davos   Some sobering remarks and thoughts from a recent TIME magazine article on the WEF in Davos (“Lovely While It Lasts”, Pg 36, TIME Europe, Feb 5, ’07)…

Zhu Min, Vice President, Bank of China:

  • “I am more and more convinced that we’ll have a much tougher situation in the coming years” (talking about the $1 trillion in reserves held by China’s central bank to which another $200billion will be added this year)

China and India together account for about 40% of the world’s population but only 6% of the world’s economic output. By contrast, the US, Japan and Western Europe make up 15% of the global population but account for 80% of its output…(as a consequence…)

  • “…There is a great gap and it is going to be bridged over the next 20 years…we are going to see fundamental changes in the center of gravity and the center of power” Jacob A. Frenkel, Vice Chairman, AIG

German Chancellor Angela Merkel:

  • “…for the past 200 years, we got used to a Eurocentric view of the world but today we can see that this type of overview is over…”

Laura D. Tyson (ex-Dean, LBS and now Prof at Haas Business School)

  • “I do worry how the U.S. will respond to the fact that its hyper-power status in terms of finance and wealth has to be reduced over  the next 25 years”. She has reason to worry: most Americans (… and I would add Europeans – SB) have no idea so elemental a shift of power is now under way.

and finally,

  • All the panelists said that they were concerned that the big questions relating to globalization, including the huge power shifts under way from the developed economies to the developing ones, were not being well explained in the West”

Worrying…

January 31st, 2007 Posted by | China, Emerging Markets, Europe and Asia, Globalization, India, USA and Asia | no comments

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