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Samantha Gilbert - “Organizations are only effective with highly talented and engaged people - at all levels”
Samantha Gilbert opens the Salzburg Global Seminar session Driving the Change: Global Talent Management for Effective Philanthropy
Samantha Gilbert - “Organizations are only effective with highly talented and engaged people - at all levels”
Mirva Villa 
With hundreds of staff in dozens of offices around the world, managing all their staff and ensuring they hire the most enthusiastic, engaged and efficient employees is important to the Ford Foundation. At the conclusion of the recent Salzburg Global Seminar session, Driving the Change: Global Talent Management for Effective Philanthropy, Samantha Gilbert, vice president for talent and human resources at the Ford Foundation, answered questions from Salzburg Global Seminar’s communications intern, Mirva Villa.  Salzburg Global Seminar’s Mirva Villa: What drew you personally to work in philanthropy?  Samantha Gilbert: I started my career fresh out of university as a social worker and over time moved into human resources management and leadership roles, the first ten years or so working in the government and not-for-profit sectors. I then worked for a decade in a global leadership role in a for-profit international knowledge-based business – a professional services arts business – which taught me a great deal and fulfilled my desire to work internationally and in a dynamic environment. Over time I realized that I needed to be doing my work back in a mission-driven environment – that’s where my values come through strongly, as I experienced earlier in my career. I was eager to take all the rich learning I gained from the private sector and contribute my experience and skills in an environment that was aiming to make a positive impact in the world. Philanthropy allowed me to continue to work internationally, fulfilling my interests in diverse cultures and experiences, and matching my deep-rooted values about work that enables the well-being of people. With your work in talent and human resources at the Ford Foundation, you clearly believe in the importance of the staff development. Why do you believe this is so important? I truly believe that organizations are only effective with highly talented and engaged people. At all levels. And I believe all individuals carry unique talents, and when nurtured in the workplace, great outcomes occur. At all levels. Organizational development is all about people development – creating a work environment where people feel inspired to do their best work. This is why I believe human resources functions have a critical role in organizational development – to understand the unique aspects of the organization’s culture, nurture the best of it, and put into place the support, systems, policies and practices that enable employees to give their best. That’s a “win” for the organization and a “win” for employees because they learn, grow and develop a sense of pride, purpose and confidence in the contributions they make. What are the biggest challenges the philanthropy sector faces in acquiring talent?  The world offers a rich diversity of people and abilities and it will take all of them to solve the problems of today’s complex world. Sometimes I think we do not look broadly enough for talented people to work within our organizations. We are often too risk-averse to consider someone from another sector. We are often not strong enough in our onboarding practices to enable diverse talent to effectively acclimate in our world of philanthropy. We are strong on knowledge-mentorship as manager but not as strong on career coach as manager. These are some good skills we could learn from the private sector. What did you hope to gain by attending this session? What will you go back with?  I created this session in many ways over four years ago at a first of its kind forum at the Rockefeller Foundation’s Bellagio Center for learning. This is the second follow-up, but with a larger number of philanthropic organizations joining this time, and with broader co-sponsorship. I hoped that we would have a rich discussion about the landscape of our field of mission-driven work, and what it means for our talent needs and practices. I hoped to build a network of global leaders who think about our work through the lens of people, and therefore share and exchange ideas about how to make our sector stronger and more impactful. I believe we have all walked away with some new insights and understanding, and a commitment and bond with each other, and I can say I have also walked away with some new tangible ideas. How was this session different to the one held in Bellaggio 2013? It was not different in spirit and goals, but this time it was larger in size (an additional ten organizations) and therefore more diverse, which brought an even greater richness and opportunity for learning. It also benefited significantly from the programming and facilitation support from Salzburg Global Seminar. Thanks to Salzburg Global we moved a few notches up in content design and delivery. Other than that….it rained on Lake Como when we were there in 2013, and it rained in Salzburg this week, and both lakes and the rain offered a special quiet for reflection and learning. What were the reasons for the Ford Foundation for joining in partnership with Salzburg Global to create this session? What are the benefits of events like this?  The Ford Foundation’s President, Darren Walker, my boss, believes deeply in continuous learning and the value of collaboration and network building to achieving impact. He leads in a people-focused way and Ford has a long history in supporting institutions, individuals and ideas. Our co-sponsors – Carnegie Corporation, the Robert Wood Johnson Foundation, the William and Flora Hewlett Foundation and the ZeShan Foundation – share these values. So together we knew that Salzburg Global would be the perfect partner to carry forward this seminar given their similar ideals and rich history of supporting these dialogues and developments. What change do you wish to see in the field of philanthropy?  I hope we will continue to be brave and innovative. Samantha Gilbert was a participant of the session, Driving the Change: Global Talent Management for Effective Philanthropy. You can read more about the session on the website: www.salzburgglobal.org/go/581
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Wangsheng Li - “One of the most distinct assets of philanthropic institutions is its people”
Wangsheng Li speaking at the Salzburg Global Seminar session Driving Change: Global Talent Management for Effective Philanthropy
Wangsheng Li - “One of the most distinct assets of philanthropic institutions is its people”
Mirva Villa 
The constantly evolving world of philanthropy offers exciting opportunities for open-minded workers globally. A rising player in this field is China, where the modern philanthropic movement is still taking shape. As the philanthropic sector develops, talent management becomes increasingly important, emphasizes Wangsheng Li, a participant of the recent Salzburg Global Seminar session Driving the Change: Global Talent Management for Effective Philanthropy. His diverse background, working in charitable organizations in Asia and the US, has given him a unique viewpoint to the developments in the philanthropic sector globally. Li is currently the president of ZeShan Foundation, which supported the latest Salzburg Global session on philanthropy. The advancement of global philanthropy and supporting diverse participation is important to the family foundation. “One of the most distinct assets of philanthropic institutions is its people. Talent management fits well with that line of thinking,” Li says, “Personally, it’s always a very inspiring and a worthwhile effort in terms of learning from your peers and an opportunity to have some time to reflect and think, and hopefully to be inspired – even challenged – in a sense.” Philanthropy in China Philanthropy and charitable giving in China has always existed in one form or another – from tightly-knit communities helping each other in their daily lives to leaders of the past preparing for the tough times by stocking up food supplies, like grain, and medicine. “In classic Chinese literature, you can find how local governments and local philanthropists would prepare themselves a year or longer ahead in anticipation of, say, floods, famine, etc. “Local doctors would be asked to stock up herbal medicine in case of an epidemic or digestive diseases caused by unclear water. That tradition has always been, and not only in China,” Li explains. However, the modern, institutionalized form of philanthropy is still taking its shape.  “Institutionalized philanthropy is a relative new phenomenon in comparison with the US,” Li explains, “Donors want to take their work to the next level, and there is an increasing recognition that institutionalized giving is the future of philanthropy. Institutionalization also means bringing on board professionals, so that gave rise to this kind of professionalization of grant-making. Now where do you get people? It was – and still is – a relatively new phenomenon, so where is your pipeline?” Currently a large portion of the people working in the field of philanthropy in China come from a background of social work training, instead of having experience in public policymaking or public administration. This is the case in many other countries in Asia and Latin America, Li says: “They’re trained as social workers, but they have a pretty sound understanding of the social issues and the community’s needs, and policy issues.” The challenge now facing the Chinese philanthropy sector is how to diversify their workforce, and more importantly, prepare them for their work in this evolving industry. “One [challenge] is how to encourage more young people or professionals of diverse backgrounds to go into the philanthropy field, and two is really looking at how to prepare them to go into this field. So it’s a pipeline issue.” The future of philanthropy So what lies in the future for philanthropy in China? Li expects to see the philanthropic sector move away from the traditional ways, and become more of a hybrid: “Social entrepreneurship has already become a very important part of contemporary philanthropy. The donors are younger, and have become increasingly hands-on. That poses also a challenge, even a conflict of interest.”. He also expects to see charitable giving no longer be perceived as the privilege of the “super rich.” “It also has become part of the social movement, you could say, of the development of civil society. Ordinary citizens can also be donors.” Wangsheng Li was a participant at Session 581 - Driving the Change: Global Talent Management for Effective Philanthropy, which is part of Salzburg Global's multi-year initiative on philanthropy and social investment. Read more about the session here.
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Salzburg Academy students develop DIY playbook for building a better world
Salzburg Academy students develop DIY playbook for building a better world
Aceel Kibbi 
More than 80 students have come together as part of a three-week program to create a series of interactive exercises to educate others about global populism and extremism.Participants at this year’s Salzburg Academy on Media and Global Change – entitled Voices Against Extremism: Media Responses to Global Populism – included students from Argentina, Austria, Canada, China, Hong Kong, Egypt, Finland, India, Indonesia, Jordan, Kenya, Lebanon, Mexico, the Netherlands, Palestine, Singapore, Slovakia, Syria, the UK, the United States, and Venezuela. Together they produced projects for an online DIY playbook: reaction.community.The online publication aims to identify how populism and extremism operates and affects people of different ages, backgrounds and ethnicities around the world. Students were organized into groups where they brainstormed, conducted research, and identified case studies related to populism and extremism. The ideas were then transformed into “playable problems.”Some of the themes explored in this year’s publication are children’s rights, climate change, reporting on extremism, the protection of journalists, the power of photo manipulation, the history and future of populism, violence against women, and freedom of information. The projects aim to facilitate dialogue and promote engagement through a product-based approach. They also invite the audience to develop a sense of solidarity and harness the right tools to stand in the face of oppression in all of its forms. Multimedia elements including videos, infographics, music playlists, interactive maps, text-based games, e-zines, comics, and data visualizations make up a number of the projects. Paul Mihailidis, program director of the Salzburg Academy and associate professor at Emerson College, Boston, USA, said: “The 83 students, 13 faculty and 15 visiting experts came together to create a meaningful civic media intervention that provides creative media solutions for responding to harmful populist rhetoric. Their work emerged out of a commitment to themselves, and each other, to be open, honest, and creative, and open to new ideas. Only then can they create creative media that is by them, for their peers, and focused on social impact at local and global levels.”Students’ ideas were inspired by conversations which took place throughout the Academy. Throughout the three weeks, students explored how media are framed by design choices, algorithmic bias, data manipulation, and commoditized content. To expand their international outlook on media and politics, they took part in plenary sessions, workshops, reading groups and hands-on exercises that challenged their creativity and transformed their thoughts into action. Topics covered included critical media making, the intersection of civic imagination and civic media, bridging cultural divides, challenging social gaps, journalism ethics and media literacy. Guest speakers at this year’s Academy included US Supreme Court Justice Anthony Kennedy and acclaimed journalist Robin Wright, a contributing writer for The New Yorker.This year’s students, who hailed from five different continents, put their differences aside to discuss one of the world’s most pressing problems. Not only did the Salzburg Academy serve as a safe space for healthy debate and dialogue, it also acted as a “brave space” – where participants reaped the benefits of challenging their perspectives and beliefs.In among the discussions and work, students were taken on cultural and poignant trips into the Alps and to the Mauthausen Memorial Site. Students also took part in a “Seeing Media” image contest, which provided a mosaic of visual art which shows how the Academy visualized global issues today.Connor Bean from Bournemouth University, UK, said: “Seeing how people from different parts of the world can come together and allow their perceptions to collide rather than clash has been the highlight of my time at the Salzburg Academy. The motivation and drive in certain people inspired me to make a change in my community and allowed me to have a whole new view on the world.”Rachel Hanebutt, a graduate student at Emerson College, Boston, USA, said: “Making connections on multiple continents, I left the Salzburg Academy feeling re-energized and ready to use my media and communication skills to make positive change in not only my community, but in the world. Before Salzburg, I didn’t realize how truly powerful media can be in shaping societies and changing perspectives; whether it is populism or climate change, I now know that I want to be a part in creating more just and equitable political systems, through media. More than anything, this Academy allowed me the time and space to focus in on what is truly important to me, which inadvertently helped me to more deeply understand I want to accomplish in the short term, as well as in my long term goals.”The Salzburg Academy on Media and Global Change was launched by the international non-profit organization, Salzburg Global Seminar in 2007 in partnership with leading universities on five continents. Over its 11 years, more than 700 alumni have taken part in the three-week program at its home, the palace Schloss Leopoldskron in Salzburg, Austria. The Academy has taken a pioneering lead in media education, tackling issues of global concern with a focus on media literacy and civic engagement. Academy alumni have been inspired to become change-makers and leaders, taking pro-active positions in education, media, technology and politics. Voices Against Extremism: Media Responses to Global Populism is part of Salzburg Global Seminar’s long-running multi-year program, the Salzburg Academy on Media and Global Change. More information on the session can be found here: www.SalzburgGlobal.org/go/sac11.
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Mónica María Leonardo Segura – “As a human rights lawyer I must be committed to ensuring dignity for all human beings”
Mónica María Leonardo Segura – “As a human rights lawyer I must be committed to ensuring dignity for all human beings”
Nicole Bogart 
Mónica María Leonardo Segura is an attorney specializing in human rights and the rule of law, including HIV and LGBTI rights, focusing on countries affected by conflict. Her work directly impacts her home country, Guatemala, where LGBT* individuals face systematic discrimination over their sexual orientation and gender identity. Segura, a participant of the fifth annual Salzburg Global LGBT Forum – Home: Safety, Wellness, and Belonging – says this discrimination has become particularly dangerous for transgender women. “There are reports of extrajudicial killings, forced disappearances, torture, extortion, often committed by armed forces, namely the police or the army,” she explains. “LGBTI people, particularly transgender women, suffer from transphobia, lesbophobia, and biphobia, and it’s the basis of a dynamic that excludes them from their families, from school, and from society in general.” That exclusion often pushes transgender women to no other recourse but to become sex workers, according to Segura, leaving them vulnerable to even further violence and to be more exposed to HIV. “We see throughout the Latin American region, and Guatemala is no exclusion, there is a prevalence of HIV in one percent of the population. For transgender women it’s 35 percent,” she says. “For men who have sex with men it’s 18 percent. So we can see from those figures an example of that exclusion and violations of human rights.” Segura works with organizations for transgender women to adopt legislation that would recognize their gender identity and autonomy, without subjecting them to physiatric evaluation or physiological tests, or requiring surgery. “It would only require a simple administrative procedure for their sex and names to be changed in official documents, as a means to have their gender identity recognized,” she says. This would allow transgender women to apply for jobs and pensions, open bank accounts, secure housing and generally “give them a way to express themselves.” But human rights activists and lawyers also put their own livelihoods at risk to fight for the rights of others; a reality Segura is no stranger to. “I believe that there is a danger to doing human rights work anywhere in the world, no matter where you are. The more you become vocal and visible in your work, there is a greater danger for governmental forces, or homophobic [and] transphobic forces to attack you,” she admits. “It can seem counter-intuitive, but I think the more you speak, and the louder you speak, the better protected you will be.” *LGBT: Lesbian, Gay, Bisexual, and Transgender. We are using this term as it is currently widely used in human rights conversations on sexual orientation and gender identity in many parts of the world, but we would not wish it to be read as exclusive of other cultural concepts, contemporary or historical, to express sexuality and gender, intersex and gender-nonconforming identities. Mónica María Leonardo Segura was a participant at the fifth annual Salzburg Global LGBT Forum – Home: Safety, Wellness, and Belonging. The session was supported by the German Federal Ministry for Family Affairs, Senior Citizens, Women and Youth; the Archangel Michael Foundation; Open Society Foundations; Stiftung Erinnerung Verantwortung Zukunft; the Austrian Development Cooperation; UNDP; and Canadian 150. More information on the session can be found here: http://www.salzburgglobal.org/go/578.html
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Lee Badgett – The reinvigorated state of LGBT* activism in post-election America
Lee Badgett – The reinvigorated state of LGBT* activism in post-election America
Nicole Bogart 
Discussing the notion of “home” wasn’t a topic Lee Badgett, professor of economics at the University of Massachusetts Amherst, paid much mind to prior to the 2016 presidential election, which saw President Donald Trump elected. Yet when faced with the question “What is home?” during the fifth gathering of the Salzburg Global LGBT Forum – Home: Safety, Wellness, and Belonging – Badgett says she found a defiant answer in this changing political landscape. “We started thinking what if the worst happened? What is the wave of ugliness and hatred that seemed to be going on across the country? What if that built into something that looks more like what we saw in the 30’s and 40’s in Germany? So my wife said maybe we should think about moving,” says Badgett. “As we talked about it, the more adamant I was that [I wasn’t] going to move. This is my home. Maybe that is my definition of home – it’s the place I feel like they can’t kick me out of.” Despite controversy over the Trump administration’s stance on LGBT* rights, Badgett says activists within the community have found more motivation to stay on task and keep moving toward equality. “To go from having a president who was very supportive and did his best to facilitate making our rights real, we now have a congress and a president who don’t seem to care,” she says. “At the same time, activists of many kinds have been invigorated rather than intimidated. That gives me hope that we will be able to weather whatever happens. If it means holding on to our rights or pushing harder to extend them, one way or another it will happen.” Badgett’s current research topics include LGBT* poverty and employment discrimination. She is currently writing a new book examining the economic case for LGBT* equality, while her past research debunked the myth of gay affluence and examined the positive experience regarding marriage equality for same-sex couples in the U.S. and Europe. As a Fellow of the third Salzburg Global LGBT* Forum –  Strengthening Communities: LGBT* Human Rights and Social Cohesion –  Badgett credits Salzburg Global for enriching her research on LGBT* rights and economics. “It’s had a big impact on me to think about what the lives of LGBT people are like. What do we know about them; what don’t we know? This is probably an occupational hazard of being an economist, [but] when I hear a story I think that’s very powerful and reveals a bit of life – it’s also data,” she says. “If I learn from it, I think other people could too. But maybe then we would also want to know more widely how common is that experience; how many other people experience it; and where do they experience it more than in other places? It always makes me ask more questions.” Through her participation in the Salzburg Global LGBT* Forum, Badgett has gained several connections which have led to projects outside the Forum, including research with UNDP on the LGBTI inclusion index. Connections with Fellows in South Korea provided the opportunity for one of her books to be translated and allowed her to facilitate talks in the country. She says her participation in the Forum has also provided an invaluable network of LGBT* activists she can turn to for research purposes. “I can actually ask people, and that’s really very important to me. To not be the helicopter social scientist, but to be engaged in work that is going to help people make change where they are,” Badgett says. “[The Forum] really opened up some interesting and important doors for me as a person, and as a scholar, to be engaged in new issues.” *LGBT: Lesbian, Gay, Bisexual, and Transgender. We are using this term as it is currently widely used in human rights conversations on sexual orientation and gender identity in many parts of the world, but we would not wish it to be read as exclusive of other cultural concepts, contemporary or historical, to express sexuality and gender, intersex and gender-nonconforming identities. Lee Badgett was a participant at the fifth annual Salzburg Global LGBT Forum – Home: Safety, Wellness, and Belonging. The session was supported by the German Federal Ministry for Family Affairs, Senior Citizens, Women and Youth; the Archangel Michael Foundation; Open Society Foundations; Stiftung Erinnerung Verantwortung Zukunft; the Austrian Development Cooperation; UNDP; and Canadian 150. More information on the session can be found here: http://www.salzburgglobal.org/calendar/2010-2019/go/578.html
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Joanna Ostrowska – Queer history is part of human history, and we should remember it
Joanna Ostrowska – Queer history is part of human history, and we should remember it
Nicole Bogart 
History often serves as a stark reminder of atrocities committed against the persecuted; their stories serving as an education for future generations. Yet, with ongoing concerns about the safety of LGBT* people in Chechnya, Joanna Ostrowska, lecturer on Jewish and gender studies at the University of Warsaw, fears some may have forgotten about the importance of queer history. During the fifth gathering of the Salzburg Global LGBT Forum – Home: Safety, Wellness, and Belonging – Ostrowska discussed the importance of documenting the history of LGBT* people throughout the world. “Queer history, I think, is one of the most important things when talking about the community,” she says. “In Poland, we have this situation where everybody thinks that before 1990 queer history was some kind of myth. After 1990, because the ‘Western demons’ came to Poland, we [had] gay people, lesbian people, and ‘the others.’ Before it was like heaven for the heterosexual people.”  This “legend,” as Ostrowska describes it, is far from the truth; but she warns many influential voices in the country, including politicians, believe this so-called myth to be true. “I think the historical impact is a kind of education for us; not only for the minority but for the rest of society. This is [a] weapon to show other people that the queerness, the queer history, is not legend. It’s not ironic myth which you can use to show that somebody is different, or weird. This is a part of human history, and we should remember it,” Ostrowska says. Ostrowska’s research currently focuses on sexual violence in Poland during World War II, and forgotten victims of the Holocaust, with a particular focus on homosexual victims. She believes her research is of increasing importance in light of allegations of “gay genocide” in Chechnya, noting the allegations are reminiscent of paragraph 175 under Nazi Germany, which added homosexuality to the criminal code. “This is a situation that tells me we should remember,” she stresses. Building on the theme of “Home,” participants of the fifth annual Salzburg Global LGBT* Forum spent time listening to the stories of LGBT* refugees, many of which fled to new countries to seek asylum due to discrimination over their sexual orientation or gender identity. During the Forum, refugees from Syria, Ethiopia, and beyond, shed light on how difficult it is for an LGBT* individual to flee their home and integrate into a new society. These stories, Ostrowska says, are the future of queer history. “I’m really happy that people of the LGBT* minority are responsible [for] making archives. I think this is the most important thing; it was really important for me when I started researching the field of homosexual victims of the Holocaust,” she says. “We didn’t have enough materials.” Though the Salzburg Global LGBT* Forum brings together LGBT* allies from all backgrounds, whether it be activists, lawyers, artists, or researchers, Ostrowska says her participation has helped her feel more involved in the LGBT* movement. “It was always a hard thing for me to feel like an activist because my work is somewhere else. I’m some kind of supporter – [an] ally – but I’m not an activist,” she says. “But after a couple of days here, I feel like I’m part of this movement.” *LGBT: Lesbian, Gay, Bisexual, and Transgender. We are using this term as it is currently widely used in human rights conversations on sexual orientation and gender identity in many parts of the world, but we would not wish it to be read as exclusive of other cultural concepts, contemporary or historical, to express sexuality and gender, intersex and gender-nonconforming identities. Joanna Ostrowska was a participant at the fifth annual Salzburg Global LGBT Forum – Home: Safety, Wellness, and Belonging. The session was supported by the German Federal Ministry for Family Affairs, Senior Citizens, Women and Youth; the Archangel Michael Foundation; Open Society Foundations; Stiftung Erinnerung Verantwortung Zukunft; the Austrian Development Cooperation; UNDP; and Canadian 150. More information on the session can be found here: http://www.salzburgglobal.org/go/578.html
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Ranjit Ajit Singh - Long-termism and sustainability must form the lynchpins of our economic philosophy
Ranjit Ajit Singh - Long-termism and sustainability must form the lynchpins of our economic philosophy
Ranjit Ajit Singh 
Below are the remarks of Ranjit Ajit Singh from his opening address at the 2017 session of the Salzburg Global Forum on Finance in a Changing World - Global Challenges, Regional Responses: How Can We Avoid Fragmentation in the Financial System? Mr. Stephen Salyer, President & Chief Executive Officer, Salzburg Global Seminar, Sylvie Matherat, my fellow co-chair of the seminar, distinguished participants, ladies and gentlemen, good morning. I am delighted to be here in the lovely location of Salzburg.   And as I stand here, I am reminded that the best test of any human construct or invention lies in its ability to adapt and remain relevant in the face of the only constant of this world – change. The Salzburg Global Seminar on Finance in a Changing World aims to do just that – to stimulate important conversations on major trends unfolding across today’s financial landscape, as well as the implications they bring, and the responses they necessitate, in this small but highly influential gathering of leading policymakers, regulators, market practitioners and experts in the global financial services sector.  I would like to take this opportunity to thank Stephen Salyer and Tatsiana Lintouskaya for their gracious invitation to be here today and convincing me to co-chair this very important event.  Fragmentation in today’s world  Ladies and gentlemen,  I would like to take some time this morning to offer a few of my observations on global developments and the impact of fragmentation on the financial system. While I do not profess to have solutions for the challenges that confront us, I hope that this will provide some perspectives in our conversations over the next two days.  The theme of this year’s Seminar is timely, as policymakers and regulators around the world respond to the impact of ongoing political and socioeconomic developments. In my view, there are several permutations to fragmentation that transcend economic, social and geographical boundaries.  Open and integrated financial markets are under threat from political and economic challenges stemming in part from growing backlash against globalization and calls for protectionism policies among many countries. The backlash stems partly from concerns of growing social fragmentation with growth not being evenly spread across the income spectrum, reflecting an increasingly widening inequality gap. Today, we live in a world where the richest 1% is said to own more wealth than the rest of the world population [1]. Globalization has also resulted in increased inequality within countries, which is particularly pronounced in some advanced economies of the world.   In contrast, one-third of all food produced for human consumption in the world (around 1.3 billion tons) is lost or wasted, with most wastage occurring in developed markets [2]. In terms of climate change, the share of national GDP at risk from climate change is expected to exceed USD1.5 trillion in 301 major cities (expected to account for two-thirds of the world’s GDP) around the world by 2025 [3]. There are also structural implications arising from technological progress and innovation on employment and job displacement, which are very real. While automation has the potential to increase productivity and economic growth, it also raises concerns on implications to jobs, skills, and wages.  Such developments, if taken to extreme, may even fragment the existing social order. Despite recent geopolitical outcomes, the pivot away from globalization that we see is very much a symptom of deeper rooted socioeconomic imbalances, rather than a root cause of its own. It has also been aggravated by the challenging external environment of heightened uncertainty, low growth and high debt and growing inequality. Ladies and gentlemen, The second aspect of fragmentation relates to economic fragmentation. We have been observing a realignment of global markets, in terms of the presence and significance of emerging markets within the global financial landscape. Emerging economies contribute nearly 60% of global GDP, as compared to 10 years ago when they accounted for only about 30% of global GDP [4].  Global population, in turn, is expected to reach over 9 billion by 2050 with the majority of this growth driven by emerging markets [5]. The significance of emerging markets was reinforced by the IMF Managing Director Christine Lagarde in a speech where she said – “Emerging and developing economies are home to 85% of the world’s population, and these 85% matter to the global economy more than ever, and they matter to you more than ever – because of strong linkages through trade, finance, economics, geopolitics, and personal connections that you experience every day” [6].  In shaping the global agenda, it is critical therefore to consider the heterogeneity of markets with varying economic and social dimensions, and are motivated by different needs. The agenda cannot be one that is premised on a one-size-fits-all model that is driven, and sometimes dictated, by advanced markets. Given the number and growing economic significance of emerging markets, there needs to be a more balanced debate on international regulatory reforms and better inclusion of these considerations in international policy formulation. Otherwise, we risk perpetuating this divide and fragmentation even further. Ladies and gentlemen The third aspect of fragmentation relates to an area close to what I do and that is regulatory fragmentation. The world’s capital markets currently make up more than half of global financial assets. Further, a corollary of the narrowing of traditional financing channels as banks adopt a more conservative lending appetite (in line with more stringent prudential requirements) is the greater reliance on capital market-based financing. Prudential regulation and financial stability issues, however, continue to dominate global policy regulation and often is not reflective of the significant role of capital markets in the overall financial system.  For example, there are instances where prudential regulations are being expanded to reach capital market and non-bank entities which by their nature are different from banks. There is also greater focus on issues relating to market regulation, which have traditionally been within the realm of securities regulators further creating duplication and potential fragmentation in regulation. To reflect the multiple dimensions of global financial regulation and to minimize these unintended consequences on capital markets, there needs to be concerted efforts to increase the representation of capital market regulators in international financial policy-making. Today capital market regulators (both from developed and emerging markets) are severely under-represented in the configuration of some international organizations at a time when market-based financing is increasingly growing.  New paradigms of globalization  The important question for policy makers, regulators, and market practitioners is not whether we should accept or reject globalization, but rather, how do we ensure that that global policy making and regulation leverage on each other and do not perpetuate fragmentation even further and impose undue costs and disruption to the market. As global finance interconnects us, there needs to be, as the Salzburg Global Forum in their efforts of Bridging Divides seeks to do, much greater emphasis placed on bridging the divides and creating greater links to financial development to minimize the risk of further polarization. There is also a need to redefine the paradigms of globalization and re-orientate our development philosophy towards more inclusive access to opportunities that transcend geographical and socio-economic boundaries Growth must be sustainable across generations and be able to support optimal quality of life for those living within the ecosystem. This includes strengthening the safety nets to ensure sustainability of our retirement systems against the backdrop of an aging population. Are the needs of the aging population being catered to and do they have opportunities for wealth creation through effective savings and pensions structures?  To ensure a meaningful response to many of these issues I described earlier, it is clear that long-termism and sustainability must form the lynchpins of our economic philosophy. This is a central theme as we contend with not only finite but depleting resources, as the forces of globalization impact inclusivity and social inequalities. Sustainable capitalism  Ladies and gentlemen, A healthy financial system is vital for the well-functioning of the global economy. It is however observed that finance has also gained a momentum of its own and has become somewhat detached from the real world of industry, manufacturing, services, agriculture, thereby outpacing growth in the real economy and distorting public’s trust and confidence in the financial system along the way.  In order to make finance work for the real world, rapid financial proliferation should be balanced with a more democratized financial system to meet the needs of diversified stakeholders across different segments of society. It cannot be solely anchored on small but influential segments of the economy, whether they be the more advanced markets, the larger companies and institutions or the wealthy and elite individuals.  One clear example is the disconnect between the traditional financial system and the younger generation, where structural inadequacies within the system have helped catalyze new forms of alternative financing and investments enabled by technology (crowdfunding, mobile payments, and investments etc.).   With its ability to provide long-term financing to encourage and sustain business activity, innovation, and infrastructure development, it is critical to have deep and interconnected capital markets that can safely and efficiently allocate investments needed to achieve these outcomes. Global challenges, such as climate change, require significant investments, with the World Economic Forum estimating that an additional investment of US$700 billion per annum is needed to provide for clean energy infrastructure, sustainable transport, energy efficiency and forestry [7]. Due to the sheer scale and duration of financing required, it is argued that capital markets have the appropriate mobilization and risk diversification capacity to fulfill this demand. Further, Islamic finance, based on principles of equitable and participatory growth with emphasis on risk sharing, can also play an increasingly pivotal role in promoting sustainable finance. As Islamic finance transactions need to be supported by genuine economic activities, it is also therefore firmly linked to the real economy.  Conclusion Ladies and gentlemen, Globalization in its current form is not a viable option, nor is fragmentation or permutations of it, the solution to the challenges we face. What is required is a common set of minds to shift the global ecosystem to make the economy and financial system more inclusive and sustainable for all. A world which incentivizes short-term maximization at the individual level over long-term optimization at the aggregate level is not a world that produces sustainable outcomes for the present as well as the future generation. We are at a critical juncture. As stewards of global finance, our actions - or even inaction - in the coming years will be a crucial determinant of the state of resilience and integrity of our economies.  I wish you a productive discussion in the days ahead. Thank you. References [1] Oxfam (January 2017), “An economy for the 99%”, Briefing paper[2] Food and Agriculture Organization of the United Nations (FAO)[3] Harvard Business Review, (2017), “If You Think Fighting Climate Change Will Be Expensive, Calculate the Cost of Letting It Happen”[4] Christine Lagarde, (4 February 2016), “The Role of Emerging Markets in a New Global Partnership for Growth”[5] United Nations Department of Economic and Social Affairs (2015), “World Population Prospects: The 2015 Revision”[6] Christine Lagarde, (4 February 2016), “The Role of Emerging Markets in a New Global Partnership for Growth”[7] World Economic Forum (2013), “The Green Investment Report: The ways and means to unlock private finance for green growth” Ranjit Ajit Singh, executive chairman of the Securities Commission (SC) Malaysia, was speaking at the opening day of Global Challenges, Regional Responses: How Can We Avoid Fragmentation in the Financial System?, the seventh session of the Salzburg Global Forum on Finance in a Changing World.
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