FICCI Pres­i­dent at MEDEF, France, Or­gan­ised Sum­mer Uni­ver­sity 2018

FICCI Business Digest - - Contents -

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.

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