How Middle Eastern retailers can keep up with E-commerce

How Middle Eastern retailers can keep up with E-commerce

This article is part of the World Economic Forum on the Middle East and North Africa and is co-authored by Abdellah Iftahy, Partner, McKinsey & Company, Franck Laizet, Partner, McKinsey & Company and Zaid Ghazaleh, Associate Partner, McKinsey & Company.

A saleswoman attends to a customer at the cash counter inside a shop at Dragon Mart in Dubai, March 2, 2011. Built in the shape of a dragon, the 1.2 km long and 150,000 sqm large mall is a trading centre with almost 3,950 shops selling mainly Chinese products ranging from office appliances to garments and daily products.  Picture taken March 2, 2011.    REUTERS/Jumana El Heloueh (UNITED ARAB EMIRATES - Tags: BUSINESS) - GM1E73318X601

01 Apr 2019

Traditional bricks and mortar retail is under attack globally. Retailers have struggled to compete with the growing popularity of large-scale competitors such as Amazon and Alibaba. The industry is also in the grip of a revolution powered by digital technology, as people shop online rather than in stores. Millennials comprise the largest internet audience, and will have more buying power than any generation before. But they still want to touch, feel and explore products. Shopping is becoming more of an experiential activity, during which stores compete for consumers’ “share of wallet”.

Middle Eastern retailers and consumer goods companies are even more vulnerable, as the pressure from e-commerce and changes in consumer buying behaviour are compounded by rising costs associated with economic reforms, such as workforce localization, taxes, and increasing fuel and electricity prices. As prices rise, consumer buying power and confidence is becoming subdued.

In fact, our latest survey, conducted in September 2018, reveals that consumers in the Middle East are spending even more cautiously than they have in previous years. They are also more anxious: 80% of survey respondents in Saudi Arabia and 72% in the United Arab Emirates are worried about losing their jobs. In both countries, more than 40% of respondents said they’re cutting down on spending and paying closer attention to prices.

Consequently, traditional retailers have limited levers to operate in response. They have a large fixed base of assets, which they need to rethink as shoppers favour the convenience of purchasing online rather than visiting stores. It is absolutely critical that retailers think about how to operate at maximum efficiency, with a hard focus on cash and working capital, in order to survive to the next stage. They are in a paradoxical moment where their revenues and returns are declining, yet they must invest in technology. It is not always easy to justify this spend with investors. And in thinking beyond the present to the different value propositions and approaches needed to recapture the customer, they must re-skill their employees and recruit new talent.

Customers are now more interested in experiences than products. In considering how to stay with them throughout their buying journey and not just at the end of it, retailers need to make many changes in the way they reach their customer, how they interact with them, what they learn about them, and how they ultimately sell them a product, service or experience. Convenience is also becoming important to consumers as they move their retail activity online. In fact, 50-60% of consumers state that saving time is one of the main reasons why they shop online.


Digital technologies and changing shopping habits are a clear threat to traditional retail business models. But there are positive ways to respond to these trends. To embrace these opportunities, real-estate developers must get closer to consumers and figure out how to meet their evolving wants and needs.

The good news is that by leveraging their assets – physical proximity to consumers, logistics, brand, in-store experience – traditional players still have the right to win. The Middle East has a young population with aspiring lifestyle choices, and with the various macroeconomic transformations taking place, buying power will recover and grow. But retailers must be willing to undertake rapid, radical and lasting transformation when it comes to efficiency, and the ways they embrace technology and offer products.

A transformation can be designed around the following five fundamentals or key success factors.

First of all, the full leadership team – not just the Board and CEO – has to be behind the change required to turn the business around.

Second, this motivation needs to move beyond the boardroom fast and engage the front line, going deep and wide across the organization.

In the Middle East, those two elements are typically in place. It’s the following three that need more focus.

The right structures need to be put in place to ensure that any response is effectively executed and delivered – for example how the business is organized, how governance is implemented, and how objectives and deliverables are executed.

Culture is also important. This is not about how to respond from a technical point of view, but the changes necessary in the mindsets and behaviours of everyone in the organization to make the transformation a success.

The last element is identifying, developing and elevating the best people in your organization, because they are the resource who will take you from point A to point B.

There is no doubt that physical retail is here to stay, and will keep its place alongside the online marketplace. Even e-commerce giants are entering into physical retail, as digital natives invest offline – see Amazon acquiring Wholefoods, and Alibaba’s Hema concept. These new stores have decoupled the notions of “shopping” and ‘“buying”, showing the face of retail is changing. Traditional retailers’ main challenge is to accelerate the pace of transformation, while ensuring they address, in a holistic way, the growth side, cost side, cash side and re-skilling of employees, in order to deliver results.

Read more here.

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Informal Economy in the North African countries

Informal Economy in the North African countries

Shadow economy or as labelled Informal Economy in the North African countries of the MENA region commands, according to the local media, some 30 to 50% of their respective economies.  It has historically been taken for a long time as the main cause responsible for economic backwardness of the under-developed countries of the world. These countries’ government in a bid to reduce its importance, were at pains trying to draw sizable segments out of the informal sphere of their economies and insert them into economies that are very often stiffened by red tape and / or lacking capital fluidity.
Meanwhile, advances in technology and its increasing coverage would possibly be working the other way around, meaning towards informalizing further all economies by facilitating amongst many things the easy transfer and exchange of money, etc.
This article of the WEF by Charlotte Edmond, Formative Content is explicit about this phenomenon as witnessed in certain countries.  This however would obviously apply all over the world but at varying degrees.

This developed country’s shadow economy is worth one-fifth of its GDP

Three southern European countries dominate a list of selected industrialized countries with shadow economies.

Some countries have much larger shadow or unofficial economies than others. Greece’s shadow economy is worth over a fifth of its total output, and Italy’s isn’t far behind.

This chart, based on research by Germany’s Institute for Applied Economic Research (IAW) at the University of Tübingen, shows southern European countries dominating the top of a list of selected industrialized countries with shadow economies.

Image: Forbes

What is the shadow economy?

It is the total value of transactions by businesses and individuals that occurs “off the books”. In other words, work done for cash to avoid incurring tax and without following standard business practices.

This could be anything from paying a tradesman or a babysitter in undeclared cash to the illegal wildlife trade, counterfeiting and money laundering.

Untaxed and unrecorded economic activity boomed during the global financial crisis and continues to grow today.

The World Economic Forum’s Global Agenda Council on Illicit Trade 2012-2014 estimated the global shadow economy to be worth $650 billion. While it’s difficult to be sure of the amount of business that bypasses regulators, WEF research from 2015 forecast that the cost to the global economy of counterfeiting alone could reach $1.77 trillion over the course of that year.

A large shadow economy is a cause for concern for governments that miss out on tax revenues. However, it has also been argued that attempting to curb the shadow economy can limit economic growth and hamper innovation.

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“The Middle East: A region divided” 2017 Report

“The Middle East: A region divided” 2017 Report

The MENA region consist as we all know of countries of predominately Arab at 70%, Iranian and Turkic at approximately 14% each, populations.  A study of these ‘Arab World’ populations’ youth titled The Middle East: A region divided” 2017 Report is based on surveys undertaken by ASDA’A Burson-Marsteller, a Public Relation firm established in Dubai, UAE and lead by Sunil John, founder shareholder and Chief Executive Officer

“The Middle East: A region divided” in 2017 ?

We took the initiative with compliments to this gentleman, to borrow few excerpts so as to hopefully launch a debate on this report.  This started with the premise that :

“The 22 Arab nations spread across two continents, Asia and Africa, have to pull together in a historic movement to declare a shared manifesto that focuses on a unified destiny.

And that:

The solution for the region’s problems, as the Arab Youth Survey sees it, must come from within this region, and not from the US, Russia, Europe or even the United Nations.“

Elaborating, ASDA’A BursonMarsteller stated that its 9th Annual Arab Youth Survey 2017 was conducted by international polling firm PSB Research to explore attitudes among Arab youth in 16 countries in the Middle East and North Africa. PSB conducted 3,500 face-to-face interviews from February 7 to March 7, 2017 with Arab men and women aged 18 to 24.  The interviews were conducted in Arabic and English.

The aim of this annual survey is to present evidence-based insights into the attitudes of Arab youth, providing public and private sector organisations with data and analysis.  It is the largest of its kind of the region’s ‘largest demographic’, and covers the six Gulf Cooperation Council states (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE), North Africa (Algeria, Egypt, Libya, Morocco, and Tunisia) the Levant (Iraq, Jordan, Lebanon and Palestinian Territories) and Yemen. The survey did not include Syria due to the civil unrest in the country.

The key theme running through this Youth Survey 2017 is a sobering one: we live in a region where young people straddle a fault line between hope and despair.  A vast, important demographic that is united by religion, language and culture is increasingly separated by access to opportunity.  Even today, given the conflicts, security issues and unemployment which sadly mark much of the region, the overall finding looks surprisingly positive: just over half of young Arabs as a whole still believe their nation is on the right track.

Looking at the Survey on a region-by-region, or country-by-country level, however, we see a stark divide between youth in the Gulf states, who are brimming with optimism, and those in the Levant – Lebanon, Jordan, Palestinian Territories, Iraq – and Yemen, who are anxious and disillusioned about the future.  The real tragedy of this year’s key findings is that young Arabs are becoming more pessimistic.

“Our best days are behind us” is not a phrase any government should hear from anyone, least of all the very demographic that will be living with the legacy of their rule.

It would be easy to dismiss this divide as the result of the widening income gap between the ‘haves’ and the ‘have nots’ – those that have oil, and the prosperity that should come with it and those that don’t.

Young Arabs realise that while their elders played the victim game and sought intervention and protection from foreign allies, that strategy no longer cuts ice.  The world is becoming increasingly inward-looking and globalisation is being challenged:

According to this year’s Survey, young Arabs do not see the US, Russia or other international powers as their biggest allies, but Saudi Arabia and the UAE.  And they increasingly see the UAE as a model country – one that they would not only choose to live in over any other, but also want their own countries to emulate.

This suggests a solution: that good governance could be the UAE’s newest export.  The soft power of the UAE is one of the Middle East’s greatest assets – and one that doesn’t just enrich the UAE but the whole region, through the promotion of stability and prosperity.

National and international complexities mean that a one-size-fits-all model would be unrealistic. But some aspects of the UAE model are universal: empowering youth, and focusing on enabling positivity, happiness and tolerance – increasingly in short supply across the region – would be  a strong start.

The Arab Spring of 2011 is behind us, and last year’s Survey showed us youth were increasingly disillusioned with its legacy.  But revolutions can take a long time for their full effects to become apparent. For better and for worse, the region is very different today than it was six years ago. It’s easy to concentrate on the ‘worse’ – the conflicts in Yemen, Syria and Libya, the refugee crisis and continued instability in Iraq, to name just a few.  For better, though, we see that nations are waking up to the new reality and finally preparing their economies for the future. In Saudi Arabia, the UAE and Qatar we see younger generations taking more prominent roles in government; in Egypt we are seeing the return of a measure of economic and political stability; in Iraq and Syria we see Daesh in retreat; in North Africa, outside of Libya, we see relative stability; and across the region we see young people increasingly rejecting the message of extremism.

Twelve years ago, long before the Arab Spring provided a wake-up call to autocratic regimes, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, sent a clear message to Arab governments: “You must change, or you will be changed.”

So what is the solution?

The 28th Arab League Summit, held in Jordan in March this year, pontificated for the nth time on the same issues, and came out with no solution.  While it may sound utopian, the only real solution that has the chance to offer a candle in the sea of darkness is one led by the spirit of youth and the courage to be positive.

We in MENA-Forum accept all the report’s findings as a true picture of the current situation.  For a start we would join in applauding such initiative to try and cover such a diversely endowed region by nature and millenary culture.  We would nevertheless have to note that misunderstanding is however still prevailing sadly in most of its hot spots where it would certainly be difficult to extricate a happy opening for each and every side to be happy with.

 

Fossil loaded Urbanisation of the Gulf Desert Shoreline

Fossil loaded Urbanisation of the Gulf Desert Shoreline

For the few oil & gas exports economies, these resources exploration and trade have as we all know, brought a wealth that has never been known before its advent but with it a lot of disagreements as well. Unfortunately not only to them. The results are also “renowned for their pedagogical prowess” and the gains could be seen as merely crazy fossil loaded urbanisation of the Gulf desert shoreline and a most affordable fill up at the petrol station.

Fossil loaded Urbanisation of the Gulf Desert Shoreline ?

Seriously, urbanization we could say is in the Gulf States not much more than the rapid extension of the existing cities of the region and are therefore at the centre stage of their development. They also have a definite impact on the region’s environment and its sustainability. Honorable attempt at green development and sustainability was undertaken as in Masdar City but conventional urbanization development acceleration was, to put it simply, a response to the huge demand for  housing and all related facilities as induced by the fossil oil industry. Time has elapsed and things seem to have gone full circle and the world energy is getting cleaner and cheaper but not quickly enough, lots of people were heard as saying. This is mainly our reason of committing to this movement Fossil Free UK.
We, this site team, have just sign in this petition and join in the support of this campaign in which we believe that the majority of the MENA countries should ascribe too, petro and non-petro economies alike.
We republish excerpts of this article of the Fossil Free campaign that is gaining momentum by the day. So apart from this fossil loaded Urbanisation related issues, here is :

How we win

The Fossil Free campaign is just one part of the global movement for climate justice. As long as we weaken acceptance for the industry and keep escalating pressure, we’re on the right track and gaining strength.

This is how we win.

Overthrowing the most powerful industry in history

Fossil fuel companies have arguably become the most powerful corporations in history. But their power is dependent on being seen as legitimate actors in our society.

There’s a reason why they invest millions and billions to maintain a respectable brand image through advertising and sponsorship deals.

  • They need to be able to recruit and keep qualified workers.
  • They rely on workers and sometimes the state police or even the military to cooperate to keep their operations going.
  • They need to have access to and influence over academic research, specific knowledge and expertise.
  • They need permits from various levels of government and courts.
  • They need investors and have to be able to get loans.
  • They need insurance companies to back their projects.
  • They rely on suppliers and business partners.

…. They need enough public acceptance to maintain a favourable legal and political framework that allows them to pollute our atmosphere unrestricted and for free, while harming our health, destroying our environment and trampling on human rights.

If governments withdrew the billions of dollars of subsidies the industry enjoys, fossil fuel companies could by now barely survive.

Photo: Babawale Obayanju

The more people see that the rogue business model of the fossil fuel industry for what it is – one which relies on destroying the climate and environment to achieve profit, the harder it will be for them to keep drawing on the support they need.

The fossil fuel industry knows this. Just recently, Shell CEO Ben van Beurden said that waning public acceptance was the biggest challenge his company faces. The chief executive of Total, Patrick Pouyanné also recently complained that oil and gas companies were ‘accused of being the villains’ and that investments in renewables were a tool to ‘make [the] oil and gas business acceptable’. (He was quick to note that these only made up a fraction of their investments and reasserting that Total was an oil and gas company.)

Our pathway to transformation, winning over popular opinion

Instead of trying to use institutional influence to achieve incremental gains, a transformational approach aims to move the broader public on an issue to make much bigger changes possible than what may seem politically feasible at a given point in time.

When the public debate has shifted, enough people sympathise and lend their support to the cause, and a strong movement of people builds enough sustained pressure for change, decision makers will find themselves with no choice but to catch up.

The success of this pathway to change relies on stories, wins and demands that bring the moral urgency to address an injustice into the public spotlight. Immediate impacts on policy or actual enforceability can be less important on this trajectory than the symbolic value of achievements. In that sense, divestment commitments are less about money being moved but the symbolic value of institutions distancing themselves from the industry.

Instrumental gains are important to build and keep momentum going (speaking of momentum, check out how much we have achieved already). However, the success of the Fossil Free campaign depends on how successful we are in swaying public opinion and growing stronger as a movement.

Whether or not an institution divests,, we achieve our goals when campaigns successfully create public battles that win over public opinion and weaken acceptance of the industry.

When students at UCL in London escalate actions on campus highlighting the conflict between the university’s research and its investments, and exposing the close connections of university council members to fossil fuel companies; when pressure from scientists, climate activists and museum employees force oil mogul David Koch to step down from the board of New York’s American Museum of Natural History; when the City of Cape Town comes under pressure to divest from the companies at the root of the city’s water crisis; when Nobel Prize winners urge the prestigious Nobel Foundation to cut their financial ties to fossil fuel companies, we have exactly the kind of impact we aim for with the Fossil Free campaign.

Lessons from history

Transformational change rarely happens in a linear way. The status quo can seem untouched for a long time while the pillars of support upholding it start to crumble. When a campaign reaches a tipping point, the system can seemingly all of a sudden collapse.

Many social movements we look back on as being hugely successful, have for the longest time had very little instrumental achievements like big policy or legislative changes to show for. It is in fact not unusual for social movements to go through a stage where they feel they are failing before they actually win, as Bill Moyer’s analysis of movements shows.

Africa Diabetes retailing Medtronic insulin pump in Morocco

Africa Diabetes retailing Medtronic insulin pump in Morocco

Capitalising on its technological expertise in the field of E-health and Diabetes, Africa Diabetes retailing Medtronic insulin pump in Morocco started a well publicised marketing operation; it is about an insulin pump and a wide range of innovative accompanying solutions for all health professionals in Morocco.

Details as provided by Zineb Nafii of Jankari Consulting follow below.

The MENA region

Innovation: Africa Diabetes, a company specializing in innovative supply to diabetes, starts marketing off the catalogue of the American leader Medtronic insulin pump.

Goal: To allow Insulin-dependent diabetics to monitor 24/7 their blood sugar and be able to protect themselves from the hypos.

In practice, two ranges of pumps are available in Morocco. It’s the last pump generation “MiniMed 640 G” and the pump “MiniMed Paradigm Veo”. The offer covers, in addition to the supply of these two insulin pumps, an accompaniment of potential pump holders in consumables to monitor on the day to day their blood sugar (catheters, quick-set infusion set, silhouette infusion set, safe-T infusion set, tanks of insulin and Enlite Sensor).

The deployment of this innovative technology by Africa Diabetes, which requires a closer follow-up of a patient by a health care professional, including endocrinologists, relies on the expertise of two strategic partners, in this case, Eramedic and teams of Medtronic in the Middle East and North Africa region.

At the same time, Africa Diabetes makes available to the type 1 diabetics, children and adults, sensitive to pain of injections of insulin or who suffer from anxiety related to injections, the I-port Advance technology. It is a solution to use with a syringe or an insulin Pen for several injections a day without repeated bites, for a maximum of three days (72 hours).

In another line, Africa Diabetes makes accessible, the “IPro2” solution from Medtronic for the measurement of glucose for professional use by ecosystem health (endocrinologists, diabetologists, clinical, and University Hospitals).

In addition to the advanced offer on the insulin pump supply, Africa Diabetes has, through its platform e-Commerce www.africa-diabetes.com of a catalogue of 100 products that cover the daily needs of type 1 and 2 diabetes such as test strips to measure blood sugar and urinary, needles, injection, insulated kits pens, books, diabetic foot, nutrition… Patients can order and pay online through the interbank electronic payment Center (IJC) platform.

In terms of logistics, Africa Diabetes delivers its products through Morocco using Aramex services that allow users to track their orders online.

 

 

 

We need a New Narrative for Globalization of Klaus Schwab

We need a New Narrative for Globalization of Klaus Schwab

Looking for some good weekend reads, we could not let the following article We need a New Narrative for Globalization of Klaus Schwab, Founder and Executive Chairman, World Economic Forum go unnoticed. As a Regular Author, Klaus Schwab produced many noteworthy contributions in various media on this very subject, and we could not let it pass without hopefully helping its spread throughout the MENA region.  Globalisation is as a matter of fact impacting the MENA Region which with its diverse countries socio-economic and political arrangements does contribute to the ever increasing expansion globalisation but in its own discrete ways, resulting in as diverse appreciation and / or revulsion as elsewhere by its populations.

The only sure thing about this phenomenon is that it (globalisation) is here to stay and that it has only one way to go: expand further.  As put by this author: ‘We have to manage our future based on the fact that we are simultaneously local, national and global citizens with overlapping responsibilities and identities.’  And that: ‘The promise of a better future lies in acting together as stakeholders of a technology-driven global transformation process, with the objective of building a more modern, inclusive and human world.’ 

Klaus Schwab: We need a new narrative for globalization

Published by the WEF on Friday 17 March 2017

The world is at a historic crossroads. Market extremism, often labelled neoliberalism, which has shaped our national and global policies for the past three decades, has become a toxic fuel for the stuttering engine for global growth. It has also generated polluting side effects that are no longer tolerated by large portions of society.

Yet market-driven globalization has lifted over a billion people out of poverty and has been an overall driver of improved standards of living. In its present form, however, it is no longer fit for purpose in our current – nor particularly our future – context.

What are the reasons?

First, the global economic system has moved from focusing on meeting the needs and aspirations of crucial segments of society who feel they are living in a precarious situation, to focusing on the optimization of the system itself. As such, individuals want to regain control of their livelihoods and seek out more than material satisfaction. People are searching for meaning and purpose in their lives – lives that are not solely defined by economics and business, but which also encompass social and cultural affinities. Many people feel spiritually isolated in a globalized world and long for a socio-economic context in which greater emphasis is placed again on shared values and less on impersonal rules.

In addition, the legitimacy of a purely market-driven global economy was undermined by a growing number of systemic challenges, such as:

  • The transition from a unipolar to a multipolar world, and consequently, to a world with competing societal concepts which challenge “Western” thinking;
  • Market power, corrupt practices and speculative financial practices distorting the fairness of markets and the process of real long-term value creation;
  • Transformation of production processes, emphasizing automation, capital and innovation over manual, and soon intellectual, labour;
  • The serious threat to the preservation and regeneration of our environment, caused by the excessive use and erosion of our natural resources.

Unheeded warnings

Since the 1980s, I have drawn attention repeatedly to the deficiencies of neoliberal globalization. For example, in an editorial for the International Herald Tribune (now the New York Times) more than 20 years ago, I wrote:

“Economic globalization has entered a critical phase. A mounting backlash against its effects, especially in the industrial democracies, is threatening a very disruptive impact on economic activity and social stability in many countries … This can easily turn into revolt …”

Even though the World Economic Forum emphasized the importance of social responsibility in its programmes in Davos and around the world, these warnings were not taken seriously enough.

Today, we face a backlash against that system and the elites who are considered to be its unilateral beneficiaries. The danger of this backlash is that it overlooks the fact that the search for innovation and competitiveness is still the main driver of economic development, and ultimately social progress. It is not the market-based system itself that is the issue, but rather its implementation. It is the lack of adequate and trustworthy principles to maintain a social contract inside it, which is indispensable to a fair, prosperous and healthy society.

Moreover, the tendency to resurrect national borders and other obstacles to global interconnectivity overlooks the fact that the world has become a community of shared responsibility. Global cooperation cannot be undone without causing major damage to all involved. We depend on each other when confronting the challenges of pollution, migration, space exploration, terrorism and crime – to name but a few.

It is also true that some of the elites were at the origin of aberrations in the system, just as others triggered a popular outcry over excessive abuses of this power. But any society that wants to remain dynamic needs people who assume responsibility for political and economic successes and failures alike. In a fast-changing world, where our very notion of identity is being challenged, the ideological choice is no longer between left and right, but rather between open and closed – with one of the consequences being that people are increasingly opposing “cosmopolitan” elites.

Thus, the ideological battle currently raging should not be between defending the “old” system against the current forces offering simple answers to very complex sets of challenges. Instead, this impasse must urgently be overcome – to not only be responsive to the grievances and anger of large portions of society, but also to move forward. Failure to do so will only result in a further shift towards more polarized societies and a breakdown of the norms that are fundamental to social cohesion.

The future challenge: the Fourth Industrial Revolution

There is no new replacement or ready-made ideology that can be conveniently taken “off the shelf”. Our priority should instead be to redesign our economic and social systems, taking into consideration that humankind, thanks to global interconnectivity and the growing impact of the Fourth Industrial Revolution, is becoming more sophisticated, and the individual more emancipated.

The Fourth Industrial Revolution will completely alter how we produce, how we consume, how we communicate and how we live. It will redefine the relationship between citizens and the state. It will provide us with great opportunities for enhancing the lives of individuals and societies. It will allow, if we get it right, a much more human-centred approach, fostering not only material satisfaction, but also genuine individual and societal well-being for all.

The present focus of our economic and political discussions seems to completely miss the mark. We have now a historic window of opportunity to shape technological breakthroughs, such as artificial intelligence and gene editing, in the service and for the benefit of humankind. We have two options. We can either fully use the opportunities of the Fourth Industrial Revolution to help lift humanity to new heights, or we can allow ourselves to be controlled by the forces of technology and end up in a dystopian world in which citizens will have lost their autonomy.

Mastering the Fourth Industrial Revolution is a global challenge. The tension between globalism and nationalism is artificial. We have to manage our future based on the fact that we are simultaneously local, national and global citizens with overlapping responsibilities and identities. The best way to develop a sustainable future is through the stakeholder concept, which I developed more than 40 years ago, and which forms the base of the Forum’s philosophy.

The basic principle for the success of the stakeholder concept is to find long-term solutions based on dialogue, and endorsed by the commitment and willingness to achieve the best outcome in the shared long-term interest of all stakeholders. As the international organization for public-private cooperation, the World Economic Forum is committed to serving this purpose as a catalyst and convener.

The promise of a better future lies in acting together as stakeholders of a technology-driven global transformation process, with the objective of building a more modern, inclusive and human world.