Topic of the 41st St. Gallen Symposium

One of the most powerful and at the same time controversial assumptions within the theories of globalisation is the notion that the primacy of politics has come to an end. Now that the economic and financial crisis has put governments around the globe back in the driving seat, this assessment has been shown to be flawed. When one considers emerging economies and their quest for more political influence, but also at geopolitical hotspots such as Iran and North Korea, the conclusion has to be drawn that the power of politics and arms has not diminished in the wake of economic globalisation. Now the question arises as to what form this power should take, and how political and military power can be deployed within the framework of today’s global economy.

In modern Western societies, money and ownership are prerequisites for any form of self-determination, political participation and freedom. The redistribution of income and wealth in the welfare state means not only that this kind of power is spread across a large proportion of the population, but also that it needs to be constantly re-negotiated. As the income and wealth gap has increasingly narrowed, many European countries have struggled more and more with the high costs associated with this system. Emerging economies are increasingly faced with a similar question, namely how wide this gap can be without social peace and at the same time ownership rights being violated. America supposedly found the answer when it provided all of its citizens with cheap money, allowing widespread ownership and opening up consumer opportunities. This came at a high price, however, in the form of economic imbalances on the global stage, and a transfer of power to economies such as China and Japan to wield influence over America's economic and monetary policy.

It is widely recognised that the media exercise power in a way most people are not fully aware of. For instance, it is hotly disputed whether media coverage during the 2008/2009 downturn did not in fact fuel the financial crisis in some aspects. As the implementation of media-integrated newsrooms leads increasingly to the merging of digital and print media, our everyday lives are infiltrated by an ever more persistent stream of news and marketing information. This integrated form of media consumption is already extensively used by companies, governments and political parties, to name but a few. Besides its effects on the media, the power of voice has its own political implications. As opinions are articulated and shaped more and more in the virtual world of the internet, for instance via social networking sites, many people today are asking what impact this will have on understandings of citizenship and democracy. More specifically, the question is what impact the power of voice will have on future opinion-making processes.

The economic downturn has, among many other things, brought with it a deep crisis of confidence in many public and private institutions. In the eyes of the public and of investors, companies and their managers as well as governments and regulatory bodies have dramatically lost legitimacy. So who is going to alter the course of how our institutions are run? And how should this be done? The current situation presents a unique opportunity to rethink and to give direction to the process of rebuilding corporate and political structures. Here the challenge for all kinds of leaders will be to overcome traditional ways of thinking within governments and companies, and at the same time stave off increasing juridification and regulation from policy makers. Above all, leaders need to be able to free up space in which innovation and creativity can thrive.

In response to announcements of far-reaching austerity programmes in many Western European and some Asian countries over the past few months, there is increasing debate not only about how to tackle national debt, but also about the purpose of government action in general. As many worry about the possibility of social unrest triggered by budget cuts, it is high time to discuss once again the core values and the set of common ideas that we hold about our social and economic order. The power of values and ideas can be effective in a way that leads to a new understanding of traditionally shared values and, therefore, promotes a focus on the core duties of governments and private enterprises. But it can also present a dangerous temptation for some people to exploit the current situation by attacking the foundation of free market societies.