What is your outlook for the global economy in 2011?
I think the world is cautiously optimistic. The world has gone through
a difficult two/three years, one of the most severe recessions in recent memories.
In Bahrain, however, we have maintained positive growth throughout
this period but our rate of growth has been limited to the rate of global growth.
Globalization means that we're all interlinked and we're all affected by
what has gone on so our rate of growth
has been limited by the state of the world economy.
Having said that, we see growth coming back, starting to accelerate, optimism
is coming back within the private sector and in our international meetings so I think
we are cautiously optimistic that 2011 will be a better year.
How can organizations develop resilience in this new world of risk?
I think one of the things this crisis has taught us is that fundamentals matter so
I think all of us, whether we're countries or companies, need to focus on
the fundamental building blocks that make our companies stronger or our economies stronger.
And if we focus on having sound balance sheets and attention to your stakeholders
and your customers, I think it will help us be resilient.
Another aspect is we have to be adaptable.
If you strong fundamentals and you can react quickly I think you will be in
a position to handle whatever comes - whatever the world economy throws at you
with strength and ability to handle it.
So I think these two factors, having strong fundamentals and remaining
adaptable and agile. I think having these two principles will
allow economies, companies be better able to handle the storms this new global
economy gives us.
As global growth shifts to the developing world,
what should be the role of business in developing countries?
I would say it's unfair to put the blame solely on business.
Governments have to change and business has to take advantage of these opportunities.
As growth goes to developing countries or, as they say, growth moving east,
I think the developing countries have to change the old policies and the old bad
policies, policies of mass subsidies, policies of protectionism,
policies played with currency exchange regimes.
These - government must adapt more open, more business-friendly policies as we do
in Bahrain and build an environment that is conducive to business.
Business, on the other hand, must take a more long term view, invest for the long run.
It is not now solely on the financial bottom line but you also have to take on
your social role and take a longer term view at things.
And it is a balanced approach from government and from businesses.
I think it will enable businesses to grow in the long run and countries to
grow in the long run.
What would you consider the most important norms that an increasingly
interdependent yet diverse world needs to share?
We have three values that we are trying to adopt in Bahrain.
In Bahrain we have Vision 2030 and as part of Vision 2030 we have three
fundamental values we're trying to underpin and these are competitiveness,
fairness, and sustainability.
And I think they apply actually to any country or anyone all over the world.
If we create a level playing field and have a fair playing field for all
countries and companies, if we promote competition that brings about innovation,
that brings about development and let's companies become stronger.
And also sustainability, I mean, it is part of our long term interests so
I think these are three values and norms we have adopted in Bahrain and actually
I think they apply to anywhere in the world.
How can companies turn sustainability into a competitive advantage?
In the past, people viewed sustainability as environmental sustainability but
at the same time they practiced sustainability every day but what they
practiced was fiscal sustainability where their revenues should be greater than
their costs and their businesses became fiscally sustainable.
We have to do - take the same view and the same principles to other parts of the world,
be it the environment, be it society, and where what you consume must
be less than what you put back and therefore you can build and grow the
environment to save you better, you can build and grow society to help and serve
the economy as well. So we're used to fiscal sustainability,
it's what drives capitals and it's what drives businesses, we just need to adapt it
and interpret it and use the environment to our advantage,
use in developing society, again also to our own advantage.
So sustainability is a word we live and breathe and practice every day
but we were only used to one aspect of it and I think we can now -
if we just broaden the definition of what sustainability is,
we can make better use of it and make the world a better place.