 Good morning ladies and gentlemen Welcome to this co-chairs press conference for the 46th annual meeting of the world economic forum Which is taking place under the theme of mastering the fourth industrial revolution Welcome to all of you. Welcome to to everyone watching on live cast I'm very pleased to be joined by our co-chairs for this annual meeting Just to introduce them. I'm Mira Iaoi for al basala in Tunisia We have mr. Hiraki Nakanishi who's chairman and chief executive officer of Hitachi from Japan We have Mary Barra the chief executive officer of General Motors from the United States We have Satya Nadella chief executive officer of Microsoft Corporation also from the US From Switzerland to Jean Tiang chief executive officer of Credit Suisse and Finally, but my name is Lee Sharon Barra who's general secretary of the international trade union conference based in Brussels So I'm going to ask each of our co-chairs to share their thoughts on this annual meeting and It's theme of mastering the fourth industrial revolution just to share some of their hopes and expectations of the coming days I'm going to start with you Amira. Thank you. Hello everyone Out of the six co-chairs here I think I'm the only one who lived the revolution with the use of technology just five years ago with the two-digit revolution and while This fourth industrial revolution talks a lot about artificial intelligence robots and robots taken over I In my country and in the region that I represent the Middle East and maybe Africa also We are more worried about how human are hurting other humans than robots so for me My my thinking about this is we're having we're having a world that's going to maybe ten billions and in a few years We are in a technology Area and we are substituting humans more and more with technology We're fearing that and we're fearing more the most is how will these robots become maybe smarter and I think the most is maybe conscious more conscious and more emotional than we are and What I think about it is Finally humans are no longer in This monopole of planet Earth. We are in a free market and we're having competition competition is with things that might be better than we are and This is why this fourth revolution should be The while we're thinking about this fourth evolution. We should maybe start thinking about who are we as humans? What are our values? What why are we better than the other that we're fearing? Why should we be the race that is the most important one in this planet? We are the one destroying planets. We are the one killing humans We are the one missing up with this with this word. So What should we do this fourth revolution should maybe be the revolution of values the second thing about this forum is We are a gender-balanced it co-chair group and 18% of this forum are women 18 is nothing I come from a country supposed to be Very anti-women and we are more than 33 percent women in parliaments and we have parity in every election But more than that I was asking how what is the percentage of people who are under 30 and that percentage way less than 18% so every revolution has been driven by youth and this will this one will be also driven by youth and the coming one will be to because Unfortunately, let's say order people love progress, but they hate change while revolutions are about change So what to end up here? my thought to you is This quote which says It's not by improving the candle that we created electricity and it's time to create electricity. Thank you Amir, thank you very much That's a great line about older people loving progress and hating change Nacone she said if I can ask you for your opening thoughts ahead of this meeting the force industrial revolution is a very important subject for this forum this year and The background is a digital technology But now the people tend to think that the digital technology will change of the industrial forms But today and through the other forums we would like to Point it out that such a the digital technology will change so many aspects of the society That's a very important point because of the from the business side business environment is changing very dynamically and also that we may have the big opportunity to Solve the various and social issues through the digital technology That is a key point for the future over us The current in the social issues is not the simple single issue Always the all issues are integrated and combined is a more complicated way So the we set up the various you know digital technology environment for solving those kind of the complicated issues of the society Japanese government recently decided that the we Japan's try to the Promotion of the society 5.0 The first generation is in hunting agriculture industrial the revolutions information at the next fifth stage is really the Super smart society That is a society 5.0 is a how to Contribute of the the solving of the social issues through the digitization Thank you Thank you very much Mary Barrett. Can I just call on you? Sure. Thanks Adrian and it is a pleasure to be here As the theme of this year's meeting makes clear We are at the start of an industrial revolution and in the auto industry It's really being driven by the convergence of connectivity electrification and changing customer needs The convergence is allowing automakers like GM to develop dramatically cleaner Safer smarter and more energy efficient vehicles for customers around the world And we believe these changes are as important as when we transition from horses to horsepower The impact on individuals and society in general will be tremendous as we develop cars that don't crash That don't are that reduce congestion that are better for the environment and that keep us connected to the people Places and activities that are most important in our lives And while we understand these advances are fully attainable We also know that there's no single company or industry or government that can achieve this on its own At General Motors one of our core values is relationships And we know our success depends on relationships both inside and outside of the company And we need in value diverse thinking and kept collaboration from leaders that are attending here this week To help sure we're creating this world that we've described for the consumer And it's important from a General Motors perspective in the global auto industry that we not only play a leading role In bringing the new technology and innovation to market But that we also shape the policies and standards that will enable the rapid Introduction and govern this new world of personal mobility that are definitely within our reach from a technology perspective So over the next few days I look forward to meeting with leaders and collaborating with experts across Industries and regions of the country and governments to make sure that we're going to Accelerate this transformation that is going to bring so much value Thank you. Mary. Thank you very much and I'll set you if I could ask you and Microsoft your thoughts ahead of this Great. Thank you, Adrian for me The real question of the fourth industrial revolution is is it going to be more digital dividend or digital divide? There's surplus that's going to be created economic surplus the real question is is this economic surplus going to be spread more evenly between Countries between industries as well as people of different economic strata When I think about the first phase of this fourth industrial revolution a lot of it has been shaped by digital technology Coming from consumer internet. It is shaped our lives in terms of media entertainment gaming And now the question is can we get beyond that? to really shaping other sectors of the economy across the globe in health in education in Other industrial segments and when I look at that I see hope I see a Kenyan entrepreneur who has gone and created using data Which is the real currency of the fourth industrial revolution a credit rating for people living under two dollars a day? I see researchers in Sweden Really help detect dyslexic students and help them. I see government officials in Kentucky or in India using data to intervene for college dropouts and school dropouts and really use the scarce resources of the state more efficiently This is all in my mind Using the public cloud which is a key ingredient of the fourth industrial revolution to create public good and I think it is up to us all It's going to be all the multiple constituents who need to come together Non-governmental organizations governments Private sector startups and established companies to tackle this challenge of creating More digital dividend and less digital divide and to that end we at Microsoft are very pleased to see us Promote this use of public cloud for public good By offering up a billion dollars over the next three years of credits of public cloud so that NGOs research Organizations and other civic bodies can take advantage of world-class technology to create world-class solutions and create this digital dividend Thank you very much Sharon well the world is at a tipping point Let's not fool ourselves that unrestrained growth is coming back Economic growth is still stagnant and you saw the IMF again downgrade its forecast now every year We're getting used to this sense of generated optimism and then of course it doesn't become a reality And for working people around the world Unemployment is still at an economic high It's unbelievable the social tragedy of almost 200 million people out of work 25 million or more Greater than before the financial crisis in 2008 2009 and nobody yet has a solution Infrastructure spend was the big piece. I'm still optimistic about that But we're spending less than half of the infrastructure dollar that was absolutely expected around six trillion US a year or 90 trillion by 2050 so There's no solution yet to unemployment and in fact That's just the tip of the iceberg because the only growing sector in terms of work Is the informal economy the economy of desperation where people are simply struggling to survive And you saw oxfam this week begin with a report one percent of The population has equivalent wealth of 99 percent. That's a failed global model Our report the itc report showed that if you get inside the supply chains Now the dominant global trade model more than 60 of production of the top 50 come of top of the Of 50 of the biggest companies in the world Then 94 of the people are a hidden workforce. These companies only employ 6 directly and 94 Booster profits but live on poverty wages in insecure work and indeed Often unsafe work. So then of course you saw amnesty's depiction of depravity in the extractive supply chain with the abuse that is just unconscionable of child labor So that's inequality by design. That's a model of global business. That's inequality by design Now there are business leaders here who were poor polman the b team many others who are trying to change That model, but there's only a few and we need many many more last year We saw an optimistic 2015 with the world's leaders with civil society and business backing them in Commit to the sustainable development goals. We saw the paris agreement Zero poverty zero carbon. It's possible, but it's not possible on the current model. So my view about technology And remember in our world technology has always been grafted on to traditional industries It's always had some displacement effect But where there's been dialogue and collective bargaining we've managed to upskill workers to in fact increase Incomes by bargaining what we've seen is a model that's smashing that dialogue and consequently demand So for us technology can be used to make people's lives easier Let's hope you're right sardia to reduce inequality to facilitate inclusion or to solve intractable global problems But without dialogue without governance. It can be used against the majority of people and even humanity itself We face climate conflict And and and a deficit of a social contract Can we actually establish the dialogue to use technology to resolve these issues or will we see a world That's simply more of the same where greed outstrips the opportunities that you've heard from the panel today That's the question for davos Dialogue and planning for zero carbon zero poverty and inclusive future or more of the same and increased greed and inequality Sharon. Thank you. Tijon Yes, thank you. Good morning to all I'd like to start by saying that it's a great honor to be here to be a co-chair to be on this panel and to salute all my co-chairs Amira made the point that we are gender balanced, but we're not just diverse by gender. We're diverse by continental origin geography size height and You can you can tell from the diversity of comments made what is for me at the heart of davos Which is really to bring people from different backgrounds and different perspectives together I Have reached a stage in my life where I have to say often I'm older than I look So I was here the first time in 1996 So I've done davos on the personal level with badge without badge on the margin at the center And it's intertwined with my personal life because in 1999 I was a minister in Africa and I got a letter December 15th saying that davos has designated a cabinet of the best ministers of the 20th century and I was one of the 12 So frankly needless to say I was very excited just 10 days later. There was a military coup So I had to I had to it's very humbling. I had to contact the forum and say look I don't think I can make it in january if a military lets me maybe but I don't think so So anyway, davos has been very and I came here in my 30s for you Now I'm in my 50s, but I've always enjoyed it I have never met. I mean most of the noble prices I've met have met in davos I don't I don't usually run into them It's a it's a unique place to to meet people with a phenomenal intellect and it's really really humbling and at the same time It's liberating I and I finish on this really Sharon you made two comments that I was going to make two words here You can you know dialogue and technology and I really think that at the heart of davos are two things I really care very much about one is the dialogue just talk and talk and listen to each other The asians say that you have two ears and one mouth and you should use them in proportion I like that. I like that image. So listen and talk and from that There is always a better world that emerges. So I recognize the the risks of technology But I'm an optimist. I think that it has the potential to transform nice for the better from the The farmers in West Africa who used to be Taken advantage of by doubtful intermediaries who can now go on their cell phone and check the cocoa price in the market and Maximize the income from a little family and take care of their children To medical science and analyzing and having a chance to beat cancer I think that the upside is is infinite provided that we we continue to talk together So I fully subscribe to the it's easy to to ridicule but the The committee to improving the state of the world. Certainly. That's why I'm here and I was enjoyed davos and hopefully for many more years. So thank you Thanks to our co-chairs have time some questions before We release them into the agenda of the of the meeting if you can just Raise a hand for me and if you can identify yourself in your organization If you have any specific questions individually based around something we'll have opportunities offline for individual Messages from each of the co-chairs, but if we can keep our questions to the broad theme of the meeting that will be fantastic Gentlemen at the front and can we get a microphone? Thanks, and then the gentleman behind Thank you. This is Matthew Allen from Swiss Info. This is a question to Tian Can you just speak up Matthew? Yeah, sorry Matthew Allen Swiss Info is a question for Mr. Tian On the question of jobs And how they how the fourth industrial revolution will affect jobs for the financial industry We hear that credit suites may be cutting jobs quite soon How do you feel that the employment situation will be shaped by the fourth industrial revolution for your company and for the financial Thanks Matthew for just Ignoring my comment about trying to keep them to the whole panel But can we just take the question behind and I think your broad point about jobs is one that each of the Panelists can probably address Just say that gentleman there Hi, David Cerroto with international business times. Um, this is directed to the whole panel, but it also focuses a little bit on GM GM has been criticized in recent weeks for Producing automobiles in the developing world that don't meet the American safety standards airbags and the like I'm curious why GM doesn't produce All cars at a certain safety standard But as part of the fourth industrial revolution, the real question is also Should those standards be globalized or not those safety standards? And that would go for Microsoft and privacy standards and everything that people on the panel work on Okay, so two questions really on jobs And to join me we'll start with you the the threat that the in fourth industrial revolution places on job the job market Something also the sherry addressed and and then perhaps globalized standards if we can talk say about and obviously in for microsoft too Globalized standards And the internet is something that's very concerning for all of us to jump Okay, thank you. Thank you. Adrien. I think you're right to raise the question But it's um one of the challenges of running a business that you have to do both you have to both Cut costs to be efficient and competitive and you have to invest for the future and it's a balance between those two so Um There is effectively and we've been very transparent about our plans in in switzerland. We've announced How many jobs we think net we will decrease, but that's a short term issue Long term medium term long term my my job is to build a growing organization My you know strategy we have was criticized was to growth strategy And it was found ambitious for a bank to want to grow But I really believe as a CEO in charge of an organization But organizations that don't grow it's like human organism They have necrosis and in the end they die if you want the atmosphere to be positive in the company My my view is always that everybody gets promoted every year Even if you don't change jobs if I make a company bigger everybody has a bigger job And that's how you create a positive dynamic in the company. But you know, there is legacy I mean everything a challenging situation you saw that we raised and I don't want to speak too much about Hadithis, but we had to raise six billion of capital. There's a lot of work to do to create Clean foundations for good growth. My ambition is definitely to grow and in the end to add more jobs in switzerland not to reduce the number of jobs Sharon, maybe you can pick up on that point on the jobs As you mentioned unemployment in the threat of places The vast majority of jobs being lost now are actually because of the collapse of economic demand and continuing economic crisis There's no doubt that we will see jobs displaced by technology, but we have Since uh, you know decades past the real question is if in fact there is less work globally Will we look again at what work is if we're investing in infrastructure that creates jobs If we're investing in the care economy where which is actually the biggest multiplier of jobs after infrastructure Then in fact, we will actually be investing in each other and redefining what work is So the real question is will the wealth be shared so people feel secure can make Decisions about their own work at work family lives And will we actually see vulnerable communities more cohesive? So the conflict that uh, Amira talked about is actually reduced because people feel like they have a future So our fear is not that technology will simply displace jobs Our fear is technology will be used by the few who already have the wealth to simply create enclaves of greater wealth And further marginalization and conflict and on the question of technology Generally, if I might not just globalize standards, can I say that's absolutely critical? We've got to have a new intellectual property model because if we don't share technology across the world We're giving junk technology again in whether it's in fossil fuels or whether it's in manufacturing processes to the developing world That actually keeps them behind the April So should people be rewarded for intellectual property? Sure, but can we think of new ways pools of technology? How can we actually make sure that the tests of the world aren't simply doing this for their own advantage? But it becomes a platform Which is a huge digital platform But also with grafted technologies from other areas that the world can benefit from By governance by dialogue by decision. That's the question and just briefly to bring in satsya and mary on globalized standards I'm presuming the question behind the question from david is whose standards Would be the globalized standards and satsya. Maybe you can start and I think that the There's no question that globalized standards in fact are very beneficial for someone who's a multinational company like us participating globally If anything in fact, I would say that the lack of globalized standards in fact creates more friction be it insecurity privacy or compliance And so we welcome that dialogue between governments Between the regulators so that there are more global standards that are uniformly Enforced so that we can comply with it and even in a vacuum What we have done for example when it comes to privacy and security Is set a set of principles that we operate by around control to the user transparency to the user As well as making sure that operations that we do are Securing the data of our users So those principles are what we stand by and we welcome global standards. We do not want fragmentation because fragmentation actually hurts the global trade and global Economy and global growth But having common standards is only going to be beneficial for everyone every country and even companies like us And I'm just yet specifically from the auto industry perspective global safety standards are hugely important From a customer perspective because if you look at the cost of technology We have technology right now as it relates to the environment to improve environment to improve dramatically improve safety congestion et cetera And right now the industry faces country by country Differences that require different technical solutions different validation solutions If we can globalize that because after all a person is a person It allows the cost of implementing that Technology to come down allowing it to be made available to you know more people across the globe So there's a huge benefit from globalizing safety standards Thank you Time probably for one or two more questions lady the front gentlemen at the back We'll probably mash them up again because we need to get around generally from cctv news Now here we have the four CEOs of listed companies. How do we? balance the needs of the capital markets That is to pay shareholders dividends and to be profit driven with our drive to reduce inequality Good question and general gentlemen at the back and we'll try and get to you Hello, and respect our dw from germany I know that the huge of topics discussed in divorce is normally great and huge But I also know that the forum usually chooses its main topic to be in line with the Times, you know the most urgent one maybe so my question is to all of you Isn't it a bit odd to focus on the fourth industrial revolution when you have Things happening like the refugee crisis in stable regions Huge numbers of unemployment and all that Isn't it a bit strange So let me just call on Amira first just to maybe tackle that one is Is are we missing at the forum the point by focusing on the fourth industrial revolution and framing our Meeting around that or are there dimensions of that revolution that impact on some of those things? The good thing with with themes is you do whatever you want with it So Whether you want to talk about robots about migration, whatever you want This is Davos. You're on the panel. You talk about whatever you want. So I um For example here now during this discussion. We were talking about the globalized standards So of course we can look at it from A private sector perspective But we can look at it also from a humanitarian or governmental perspective. How can these governments regulate? As satya says should regulate the private sectors where there is no globalized standards about in human rights For example in the world. I take for example all the uh big Countries like I don't know. I mean i'm just naming france or others Who will talk about democracy in their countries and will share corruption with alibongo or other Dictatorships So, uh, it's about globalized standards. How can we talk about? Equality in germany and at the same time Maybe now thinking about closing borders for the one million because we have too much migrants They are humans. What are the globalized standards while we're dealing with humans? So for me, uh, fourth industrial revolution doesn't only mean a tech Discussion and maybe it can it can mean tech discussion. We are today Having we are having today the first generation of native native technology Babies they are born with an iphone in their hands. This is new. This is not our case We are a non native technology people and this is why maybe we're fearing that much technology So, uh, I think uh, we while we're also talking about tech technology This is something very important in very poor places like satya said In tunisia for example technology helps many people and especially telephone phones and Internet has many people to get access to a market that they would have never dreamed of because there is no Real life access to these there is no transportation except and this is the case in many countries in africa so I totally understand your question and I think refugees will be at the heart of discussions here because this is An important Test for humanity and while we're talking about humanity. We are in the middle of this the word is testing humanity by handling Refugees crisis a mirror. Thank you. I'm aware of the constraints. We have on time. I just want to bring in Nakanishi san and just two years ago prime minister arbe announced his commitment to 30 of women in leadership roles by 2020 And just the gentleman's question. How do you square? Uh, sorry to delay from cctv's question. How do you square delivering shareholder value with meeting the requirements to tackle inequality? I don't have a clear answer to these big questions, but The ceo tend to think that It's not, uh, you know the how to making a balance of the total benefit The growth growth and the increasing of the total benefit That's the first, you know that the concern of the ceo has to work for that. That's uh, you know, that The only my answer my personal answer And so the from the viewpoint of how to Activate it of the the ladies The various activities in the society is also that this uh, very much Beneficial to the society We have to find the benefit at first Thank you and tijan. Yeah, I just wanted to come in because to your to the teacher fellow gentlemen depends if you Want to talk about the causes or the symptoms? I mean it was human tragedy. The migration is absolutely horrible, but those are symptoms of much Deeper problems which are around demography. Okay, the Arab spring is born from demography and lack of jobs Okay, and technology is really the way the reason why what we do is relevant Is that is a big part of the answer? It's a huge tool to empower people People who migrate are people who mean made powerless who want to claim that power back by voting with their feet So in the end, you know, and I can give you a lot of examples of what we did in Africa I was very involved with the development of mobile telephony We had to fight the world bank and it's an anecdote But I took a world bank delegation to a village in the air because because they just wanted to dig wells and Build roads and I said, well, why don't you ask the village chiefs that they want and this is 1995 And this old village chief are forever grateful to him. He said look, sir. What I want is a telephone And he said, you know, my son is a doctor He lives in the capital if I have a telephone in this little village I can get everything I want Because I just tell my son what I want and he'll bring it to me. So it's an image But the empowering dimension of technology for people who are in an unfavorable situation I cannot be overestimated In 30 seconds answer the question about shareholder value, it's a false dichotomy We have 30 trillion dollars of workers capital invested in the global economy We want to see companies transition just transition Whether it's climate or whether it's through inequality and just a few cents on any product would actually deliver a minimum living wage To all of those 94 of workers. So that's not that's not a question about whether it's possible It's a question of corporate will and just to give you one figure In 25 companies we profiled the cash reserves not even the profits Which are what shareholders look to the cash reserves would deliver $5,000 in one year in additional wages To 70 million people. Can you imagine what that would do? Not just for the lives of workers in the philippines or cambodia or vietnam or losotube But what it would do for demand so business has to stop thinking like that and with shareholders And with the consumers start talking about how we balance the load To all our coaches big. Thank you. I know you've all got things to go on to I'm sure you might got to catch them on their route to the next thing Thank you for joining us for this opening press conference. I look forward to a very successful meeting. Thank you