February 13, 2012

The IMD MBA Class of 2012 gained new insights on what is arguably the major leadership challenge of this century at a roundtable organized by The Evian Group @ IMD on January 31 and February 1. 

The roundtable, on the theme of Globalization: Equity and Sustainability, featured world-renowned speakers discussing how to reconcile globalization and capitalism with a more equitable, prosperous and sustainable future society.

IMD Professor and Evian Group Founding Director Jean-Pierre Lehmann said the purpose of the roundtable was "to prepare leaders for a very different kind of environment, which will require different responsibilities and values."

This was an ambitious goal, and one that fired the imagination of several members of the MBA class.

"It's great to see this in a business school," enthused MBA candidate Julia Neubauer-Babu, who came to IMD to acquire the business skills to better manage NGOs. "What I heard is that we are the agents of change from an economic perspective."

Fellow MBA candidate Tomas Gerges said the roundtable has allowed him to reprioritize and envisage new opportunities. "The timing could not be more perfect," he said.

The speakers included Nobel Prize-winning economist Michael Spence, who had also spoken at IMD the previous evening. He described how the rapid convergence of developing countries with advanced economies is dependent on three vital factors: the health of the global economy, a reasonable degree of equity within a country, and leadership. All eyes will be on China, he said, as its "middle-income transition" will depend largely on its ability to stimulate domestic demand.

Rajendra Pawar, Founder and Chairman of the India-based NIIT Group, presented the educational projects developed over the past 20 years by his institute, grounded in the belief that technology can help financially challenged populations to overcome poverty. The mission, he explained, is to "bring people and computers together," including women, the socially isolated or learners with special needs. "Challenges and handicaps don't get in the way of doing a great job," he said.

Mr Pawar and Dr Spence were joined by award-winning journalist and author Pallavi Aiyar to discuss a better distribution of the benefits of globalization - if it is to be sustainable (watch the video).

Comparing economic performance in China and India, the panelists observed that China's system of governance allowed swift decisions to be made, although sometimes at the expense of the people's needs. Pointing to China's one-child policy, Ms Aiyar said India's robust population growth is now considered an asset in terms of economic potential, although education remains the key to capitalizing on such a development.

Addressing the MBA candidates directly, Mr Pawar said he has noticed a big difference in the way the younger generation thinks about society. They're talking a lot less about what's wrong, he suggested, and a lot more about they can do. "Take ownership of the issues," he encouraged them.

Other thought leaders shared their views on the challenges of equity and sustainability. Jeremy Hobbs, Executive Director of Oxfam, exchanged on poverty and gender dynamics with Shahra Razavi, Senior Researcher at the United Nations Research Institute. And WTO Counsellor Doaa Abdel-Motaal discussed the effects of globalization on climate change with Ian Johnson, Secretary General of the Club of Rome. IMD Professor Salvatore Cantale offered a further financial perspective by presenting the case for Islamic finance, while IMD Professor Pasha Mahmood shared with the class perspectives on "frugal innovation" as a means to enhance the welfare of the poor.

At the close of the day, Peter Wuffli, Chairman of the IMD Foundation, offered a perspective that integrated ethics and practical engagement as an entrepreneurial philanthropist. He spoke with passion about the activities of elea Foundation for Ethics in Globalization, an organization that his wife and he had founded five years ago to do "philanthropy with a private-equity mindset." When Dr. Wuffli's elea Foundation forms partnerships with local organizations to alleviate absolute poverty in countries such as Bolivia, Madagascar or India, it systematically measures the social impact of its investments.

Professor Lehmann concluded the roundtable by urging the MBA candidates to help reconcile wealth and welfare. "The crisis of capitalism will be saved by you," he said.