Global Leadership

The Ideas Arena

Introducing The Ideas Arena on Global Leadership

Welcome to The Ideas Arena

Jan 22nd 2011, 17:44 by The Economist online

OUR special report on global leaders describes a world where traditional ruling classes are losing their wealth and influence to entrepreneurs, inventors, artists and philanthropists. But who makes up this new elite? Are our increasingly meritocratic societies also increasingly unequal? And does the rising power of unelected individuals pose a danger to democratic institutions?

As business leaders, politicians and journalists meet at the World Economic Forum's annual summit in Davos to discuss the year ahead, The Economist will be inviting readers and guests to participate in a series of online debates questioning the future of global leadership. From now until February 18th, we'll be examining the rapid emergence of a single global elite whose decisions, and opinions, affect us all.

We've had our say. Our special report explored, over 14 pages, the emergence of the elites. Our International section, in the issue of January 21st, examined in detail the rising inequality that has accompanied them; Our leader, in the same issue, laid out our response to these concerns. Now we'd like to hear from you. 

For the next four weeks, our Ideas Arena home page will highlight the best of these debates, curating comment and analysis from The Economist and from around the web. In addition, we'll be turning over the schedule of some of our regular discussion features to this global leadership debate.

The Economist Asks From January 24th to 28th, we'll be polling readers across all sections of the site, to find out their views on both traditional leaders and new global elites.

Economics By Invitation: From January 24th until February 18th, our guest panel of world-class economists will be offering thoughts on inequality, and describing the current, and future, stars of their profession. How has the economic crisis changed the balance of influence within economics? Which thinkers will most shape economic discourse over the next ten years?

Q&A with Robert Guest: On February 1st, Robert Guest, The Economist's business editor and author of our special report on global leaders, will make a guest appearance through our Twitter stream. He'll be answering the questions posed by our community of more than a million Facebook and Twitter followers.

The Economist Debate: "The global elite serve the masses." From February 8th until February 18th, special guests on our online debate site will close the festival by asking whether the rise of the global elite threatens or serves the interests of ordinary people. As always, Economist readers will get the final say in whether the motion is supported or rejected.

Now over to you.

Readers' comments

The Economist welcomes your views. Please stay on topic and be respectful of other readers. Review our comments policy.

night star

There are two ways by which a global political structure could be shaped; one based on the concentration of power, the other based on dispercing that power on the periphery. The first is already gaining ground, the other is not. A great politician of the 20th century has foresaw most of the events that took place at the beginning of the 21st century and are still effecting our lives.
"..Indeed it is ironic that just when those countries such as the Soviet Union which have tried to run everything from the center are learning that success depends on dispercing power and decisions away from the center,there are some in the community-(EEC,now E.U.)-that wish to move in the opposite direction", "..Willing and active cooperation between independent sovereign states is the best way to build a successful European Community.." Margaret Thacher

roran

The global elite serve the masses. The statement is inherently flawed in the sense that we live in an increasingly capitalist world, where it is extremely rare for an organization/individual to have a mandate/intention to serve the masses. Having said that, the world is increasingly becoming more open and transparent. This forces everyone to consider the 'cost' or implications of actions that go against the benefit of the masses.

In the bad old days, when communications were controlled or simply non existent, the elite could exploit the general public by keeping the truth hidden.

The world now looks a lot better where the masses can strike back (Tunisia is a case in point)at a corrupt regime or simply choose to buy a different competitor's products if they are made in an unethical manner (Nike and Adidas sales fell after reports of children being made to work in sweatshops in bangladesh to make shoes and footballs).

It is costs like these that create an incenive for the elite to serve the masses, or at least not offend them severely.

boontee

Do ideas or leaders rule the world?

Good and useful ideas are there to last. In the long term sense, ideas would supersede individuals in making the world tick.

Let us have more beautiful ideas that benefit the world. (vzc1943)

Richard D. Quodomine

Leadership is best defined as not telling people what to do, nor in telling people what not to do, but rather, to have people willingly follow you because working together under your capacity increases the capacity and results for all.

Gerald La Touche

The one who rises to leadership is the one who understands the struggle, embodies the vision and like a glowing torch provides direction to those whom he/she represents and leads - La Touche (2011). The problem with world leadership today is that never have so many assumed the leadership of the masses without knowing, understanding or even caring for those whom they profess to lead. Too many world “leaders” today are leading only themselves and their very own agenda – the feudalists are back in business!

Candle Surfer

I must disagree with the statement presenting that "traditional ruling classes are losing their wealth and influence to entrepreneurs, inventors, artists and philanthropists.". I debate however that these revolutionaries or "royalty" help increase our standard of living by inspring our minds and ideas. However claiming that they help in a transfer of wealth from "the tradtional" or ruling regimes is an incorrect statement. For without a helping hand (economic or political) these innovators rarely reach the top of the mountian without some for of indebtness to a human greater power. Today, the traditional ruling classes have masked themselves as banks (i am not debating its ethical/moral viewpoint), therefore as an aggregate population we are still ruled by a few, and maybe always will be. However, we can always increase the ruled's standard of living and our state of freedom through leadership, innovation, expression and support for general welfare.

Darian2

Regarding the discussion on economic inequalities around the globe, much of the disparity can be explained by the statistical skew toward inherited wealth, natural artistic or athletic talent, inventive genius, and hard work in the presence of a good opportunity.
But the most ignored source of inequality is the failure to implement national incentives for businesses to re-invest profits to their own workers; profitsharing.
We are not talkiing about the current model of a puny, deferred, retirement savings account. There should be a tax credit for businesses who return a predetermined percentage of net profits to the employees who help them EARN their profits.

Real profit sharing will stimulate a global economic recovery

The National Bureau of Economic Research has defined the components of a healthy economic recovery. They are:
1. Increased personal income
2. Increased employment
3. Increased industrial production
4. Increased business sales volume
5. Increased Gross Domestic Product statistics for 2 or more consecutive months.

Real profit sharing is one economic strategy which can accomplish all five of these!
For optimal motivational and economic results, there must be a frequent, nondeferred distribution of a predetermined percentage of net profits to employees.
And what would incentivize most business owners to participate?
A tax credit. Allow businesses a tax credit for re-investing up to 15-20% of net profits back into their own employees. 1.Profitsharing would rapidly raise household income, creating increased supply and demand.
It would help families pay mortgages and health care premiums.
2. An increase in supply and demand precedes new job creation.
Better paid jobs (linked to profits) incentivizes job seekers, and hard work.
It would therefore reduce unemployment, and change poorly paid jobs into positions that
could support a family.
3. A properly motivated workforce increases industrial productivity.
4. Increased supply and demand also naturally increases sales volume.
5. A profitsharing tax credit is a built-in stimulus, creating a sustained healthy GDP.

Additionally if this is practiced world-wide, it could revitalize the global economy as well, and restore our nation to a position of moral and economic leadership,
by demonstrating a more egalitarian model of free enterprise. It helps prevent the extremes of poverty and wealth by natural design. For investors, it stabilizes the economy, stabilizes successful business growth, and stabilizes the market.

From the government’s point of view, a healthy economy leads to a wider tax revenue base, and increased revenues without tax increases. Increased revenue would pay for the tax credit in just a few months. More jobs, more people working, and higher incomes lead to more paycheck with-holdings. This replenishes the Medicare and social security coffers as well, without increasing the tax. The tax credit creates a leaner government, which is more citizen and business responsive.
Most importantly, it is politically neutral. It is a business tax break in exchange for re-investing its profits back to its own workers. It is voluntary. It is the missing link of conservative supply-side economics and the missing link of liberal economic democracy. It dovetails liberal and conservative ideals. It is two opposite turning gears doing work for the betterment of the people.
Such a tax credit should be a greater incentive than a mere business deduction, but not one that is too burdensome on the government.
Why not try it in one state first, and as it demonstrates success, expand the program?
The profitsharing Tax Credit.

Theseus84

The "elite" is an illusion created by the "elite" to serve "the elite." It ignores the fact that practically anyone is capable of achieving "elite"-hood if given the opportunity. I hope that some of the "elite" will devote their energies to ensuring that more people do. I acknowledge that many already do, but including most investment bankers and traders in the "elite" is an insult to the term. If you make $250,000 a year, you're existence is now justified? That's the ideology that allows entire cohorts of people to shirk responsibility for the world in which they live.

Mani Mahesh

It is important to admit the fact that today we are living in a world of Leadership Crisis. The core of the problem is not the dearth of leaders who want to lead but the dearth of appropriate opputunities and proper channel for them to come forward and work. The systems today especially the political system has become so rigid and that too especially in developing countries like China and India that new faces are not encouraged. They have to struggle a lot. We have examples of leaders who have come forward fighting all odds and they are inspiration for us but at the same time they are a few.
To address this issue, it is the duty of political and economic class to open systems (reflected in actions) for entry of youth in politics, economics and social issues and support them and their cause to make this world a better to live in. It is something that must be initiated by the people at top positions because they are the one who can effectively change this.

Bertymandias

I would favour an anarchist, right-wing, totalitarian, hegemony where everyone is their own dictator. I believe that this could be achieved by adding a ranking system to Facebook.

Diverse Planet

We are living in a world of leadership deficit because it is an impossible job in this day and age. Any political leader will instantly argue against this because there is no way to get elected while admitting it. The complexity of the human world and the continuing demise of diversity is beyond the scope and ability of any person and anyone who denies it is either delusional, a liar or both.
Mathematics can prove that beyond a certain level of complexity events become increasingly unpredictable to a point where they become impossibly predictable.
It may be disconcerting for some and shocking for others to realize that the world's powerful people are mostly liars and scoundrels who have little or no regard for the rule of law but for how it can be abused, and consider the rest of us to be a resource.
This kind of thinking is the result of the corruption of the human mind when given too much power or money. History is littered with leaders who have lied, cheated and stolen and yet we lack the ability to make changes that can prevent it.
How can we expect that this kind of corruption will not also (excuse the expression) trickle down?

sugarless

The epicentre of the Davos agenda is Capitalism...the poor, the diseased, the uneducated, the jobless,the old and the earth they all pose challenges to systems of accumulation. A leader in this context is someone who can (1) broker consensus around solutions for human development (2)has a vision which has global appeal because it speaks to the fundamental right to development.

Manuvani

The Leadership deficit is very high in the world. All the three types of leaders drawn from the world of politics, civil society and the corporate sector - have lost their ethical values and moorings. If we remember the 3 M's - Mahatma Gandhi, Nelson Mandela and Martin Luther King we will be inspired to change the present world of corruption and unethical dealings every where. Even the civil society guys have proved unethical . Ethics holds the key to all our present day problems. Technology has been used for terrorism and deceit and not for peoples well being. Some countries and leaders have used SMS technology for the well being of the people.

The Davos events are for the rich and corrupt CEOs and Politicians. The World Social Forum is becoming more anti-wealth and anti prosperity. Let us bring back to the fore lots of leaders who are "invisible" and make them to lead in the three sectors Politics, Civil Society and the Corporates.If there is no harmony between them people will suffer. Manu N Kulkarni

kristina brooker

Right wing people, employers, the leaders; are not possibly good people because that job is impossible to do responsiblily. Employers have to deal with making desicions about their employees and customers that must be physically or mentally damaging to a certain group of them due to unemployment.

Even though left wing people talk like good people they are hypocrats though because they should essentially consider themelves as selling a product even though the sales of their product gets them their payment in the form of a persion.

I think one of the better sincreauggestions about this problem of people expanding their currency, would be to disclose the connection to their options about expanding their currency and having sex. Probably one of the better choices for people to make in order to expand their currency as much as possible, is not have sex until a later age, in order to collect their information about their currency expansion options in this increased, richer, virginal set of options.

sugarfree

A recent study by the OECD dispells the myth of anglosaxon societies as meritocratic. The study simply correlates the earnings of parents with that of their children. A high correlation between generations means that your parents' income is a good predictor for your own. Well, the UK has the highest correlation, while Denmark has one of the lowest. This should come as no surprise, if you consider that the majority of prime ministers in this country are Etonians. But the US is only slightly better than the UK. As prof Michael Sandel said on the BBC, the American dream is alive and well... but lives in Denmark

Viktor O. Ledenyov

The new emerging generation of global leaders will have a global mindset and be empowered by cognitive integrative creative design thinking with the strong ability to accumulate the wealth and bring prosperity to different nations around the World.
Viktor O. Ledenyov, Kharkov, Ukraine

Robert North

You are still not writing acurately Economist. A contemporary artist in Fiji at the top of his game is not part of any elite, except a notrious one. My best friend in Sydney struggles to feed himself despite his talent and recognition in his field. A great writer in NZ needs a second job, and so on. Is this article guilty of Anglocentricism? or maybe whatever "reality" this article is referring to, is a contrived one.

kristina brooker

I wonder if they have ever seen drugs, or know of anybody who has seen drugs, and if maybe my government also has that problem.

They probably are better people, but they probably don't havevery good ethics about usary.

Anyway because of the media drug issue we globally all share, their is no elite banking system, since it would have to be a co-operative one.

jbay

Entrepreneurs, inventors, artists and "philosophers" have always been the driving influence. Those with wealth have always acted as patrons to those who are able to guide man kind to a greater ideal.

Our relapse of decay is due to neglect for history. The fool has convinced himself that the short term is all that matters and that yesterday has no impact on today. The difference between a fool and a wise man is that the wise man learns from his mistakes while the fool does not.

About Global Leadership

Who are the global elite? What power do they wield? And does their rising influence complement, or threaten, our democratic institutions?
As business leaders, politicians and journalists meet at the World Economic Forum's annual summit in Davos, we examine the future of global leadership.

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