DPM Mutambara Attends the WEF and Holds Talks with Chinese Premier, Wen Jiabo

This particular WEF was meeting at a critical moment for the global community as business leaders and policy makers seek to develop and implement necessary strategies to generate a new wave of economic growth, given the current global economic crisis. It brought together a new generation of leaders and innovators from around the world. These business and political leaders provided fresh perspectives and alternative approaches to a global economy characterised by significant structural shifts and volatility. There were five themes stated as follows; New Business Models in a Deleveraging World, Opportunities in a Green Economy, Rethinking Asias Development Model, Driving Economic Growth through Science and Technology, and Addressing Societal Needs through Innovation

The DPM attended the forum in his capacity as a WEF Young Global Leader and also as Deputy Prime Minister of Zimbabwe. The Young Global Leaders is a unique multi stakeholder community of exceptional young leaders who share a commitment to shaping the global future. Some of the discussions and conversations centred around global challenges and opportunities with particular reference to climate change, green jobs, the global economic crisis, economic growth, sustainability, innovation, poverty alleviation, entrepreneurship, global risks, and the redesign of corporate governance. The WEF provides a platform for sharing global best practice among business leaders, industrial sector experts, academics and technologists. Some of the key recommendations tackled included the proposal that IMF must create a new reserve currency to lessen global reliance on the US dollar, reforms of the global institutions (IMF, WB, UN), entrepreneurship as a key driver of development and economic growth, access to capital as a source of shared economic growth, the role of values and ethics in global economic systems, the case of social entrepreneurship and corporate social responsibility.

The Summer Davos was also a platform where the Global Competitiveness Index (GCI) report for 2009-2010 was released. The GCI is a highly comprehensive index which captures micro- economic and macro-economic foundations of national competitiveness. Competitiveness is defined as the set of institutions, policies and factors that determine the level of productivity for a country. The level of productivity in turn sets a sustainable level of prosperity that can be earned by a country. In addition to attending the WEF, DPM Mutambara attended two separate bi-lateral meetings with the Acting Mayor of the City of Dalian and the Chinese Premier Mr Wen Jiabo. Both meetings were extremely productive and useful. The conversation with the Mayor concentrated on the possibilities of collaboration between Dalian companies and their Zimbabwean counterparts. The discussions with Premier Wen Jiabo centred on China and Zimbabwe supporting each other in international diplomacy and pursuing win-win partnerships emphasizing investment into Zimbabwe rather than aid. Zimbabwe is resource rich but cash poor; while China has excess capital and a huge appetite for raw materials. There is a huge opportunity to unlock mutually beneficial synergies between the two countries.

DPM Mutambara placed emphasis on valued adding activities such as processing and refining of minerals, manufacturing, infrastructural development, and financial services as opposed to raw material extraction and export of unrefined products. He explained to the Chinese Premier Zimbabwes desire to pursue an export-led growth strategy rooted in beneficiation as the country aspires to move up the global value chains. It was an excellent meeting, which will lead to dramatic increase in the China-Zimbabwe joint ventures. The Chinese Premier expressed support for the inclusive government, and commended Zimbabweans for their ability to put the national interest before partisan aspirations. He also expressed his agreement to the Zimbabwean emphasis on investment and beneficiation. In the bilateral discussions, DPM Mutambara also acknowledged and expressed gratitude that China has been an all weather friend to Zimbabwe, starting with the liberation struggle, right into the post-independence era, and up to our current challenges. It is on the basis of this history of solidarity and comradeship that the two countries should enhance cooperation in trade, investment, agriculture, infrastructure, and manufacturing. He emphasized that Zimbabwe can learn a lot from the Chinese economic miracle story which has seen it achieve sustained economic growth rate of 8% in spite of the current global economic crisis.

The GDP of the Chinese economy is predicated to overtake that of Japan by next year, and it is predicated to overtake that of the USA by 2030; making China the biggest economy in the world. The key drivers of the Chinese model include effective planning, use of science and technology, innovativeness, strong financial services sector, large market size, work ethic, performance management. This years WEF in Asia was of particular significance as China celebrates the 60th anniversary of the Peoples Republic of China on the 1st of October, 2009.