FICCI President at MEDEF, France, Organised Summer University 2018
To refresh and further deepen FICCI's institutional connects with MEDEF (Mouvement des entreprises de France), one of the long-standing institutional partners in Europe, Rashesh Shah, President, FICCI, participated in MEDEF organised Summer University 2018 on 28-29 August 2018 in Paris. Shah was accompanied by Manish Singhal, DSG, FICCI.
Over the years, the initiative has come to be recognised as a 'Must Participate' global platform by global industry and policymakers.
Shah was a distinguished panellist at the session on 'The black, the Red and the Green...Three Scenarios for the World Economy'. It was presided over by Dieter Kempf, President of BDI (Federation of German Industries). Jean-Pierre Clamadieu, CEO of Solvay, Issad Rebrab, CEO of Cevital, Karien Van Gennip, Dutch Politican, Mathilde Lemoine, French Economist, were also present at the session.
The three major focus areas identified for the global economy were Black Scenario – based on financial crises; Red Scenario – current scenario of a growth obtained since the summer of 2016 by the indebtedness; and, Green Scenario – based on sustainable growth.
Mathilde Lemoine, the French Economist, highlighted that the global economy had accelerated since the summer of 2016, this surge in growth occurred due to China's changing economic policy, which had significantly increased investments in infrastructure. However, this growth was offset by an increase in global debt to 240 per cent of GDP and 20 points since 2015. This debt should cause a slowdown in activity, especially in Europe. She added that Asian regional integration since 2009 was, however, largely underestimated. Since 2009, Asia has accounted for 57 per cent of the acceleration in global export growth, Europe 10 per cent, the United States 11 per cent. These two continents had become commercial dwarves in a very short time. Asian regionalisation was based on a commercial pillar, a banking pillar and a financial pillar prepared by China. The Euro zone remained absent from this evolution of world trade towards services and finance.
Kempf mentioned that the black scenario would be the end of the market economy, while the green scenario would see a growing market and sustainable development. Production had tripled since the fall of the Berlin Wall but these positive statistics were being questioned as some employees had emerged as big losers in this situation.
Rashesh Shah was optimistic about the markets and emphasized that asset prices remained stable. Therefore, green remained more present than expected, the red was now due to trade wars, Brexit and, in India, the rise in oil prices; and black reflected inequality. He mentioned that the role of companies in the years to come would be decisive and it was important to consider all stakeholders while defining social responsibilities.
Issad Rebrab emphasized on the dark scenario wars, terrorism and climate change. Jean-Pierre Clamadieu was hopeful about the strength of the market economy model and felt that it was important to be proud of the European project, even if the risks remained real. Karien Van Gennip stressed that there was a need to create new jobs in different dimensions of the economy. He pointed out that of the ten largest companies twenty years ago, there were only two that were left in the rankings, Microsoft and Exxon Mobil. All the participants stated that the future is green. Shah also had a bilateral meeting with Vinay Mohan Kwatra, Indian Ambassador to France. He also had institutional meetings with Geoffroy Roux de Bezieux, President, MEDEF and Kempf.
Rashesh Shah, President, FICCI (extreme right). Also seen are (L to R): Jean-Pierre Clamadieu, CEO, Solvay; Issad Rebrab, CEO, Cevital; Karien Van Gennip, Dutch Politican; Hedwige Chevrillon, Journalist; Dieter Kempf, President, BDI and Mathilde Lemoine, French Economist.