World Excellence International Edition N° 29 | July/Sept by Le Fonti S.r.l.

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SPOTLIGHT

SUSTAINABILITY

Migration and the European union

new labour Market drivers

Making Water-smart Energy Choices

To address the migration issue effectively, Europe must evolve institutionally...

…technological and social forces have been transforming how work gets done…

...the depletion of water resources is contributing further to climate change…

| NEW YORK JULY, 1st 2018

How to Resolve Europe’s Political Crisis Over Migration

Agricolture’s Bad Medicine

The Singapore Summit’s Uncertain Legacy

We Need a Food Revolution

spotlight

Authenticty is the US Food Industry’s Key to Success

Going Beyond Expectations

New Labour Market Drivers

Complete and Secure SMS Bulk Messaging Worlwide

sustainability

Page 6

What’s Happening NOW?

food

World affairs

oVErViEW

contents

Energy for the Common Good

Making Water-Smart Energy Choices

July / September 2018 - World Excellence International Edition

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contents

The Debt Challenge to African Growth

The Old Allure of New Money

Engineering a More Responsible Digital Future

How to Protect Workers Without Trade Tariffs

Profiles in European Denial

The Cognitive Limits of Lifelong Learning

The Global Economy’s Uncertain Future

PAGE 69 | Le Fonti Awards | New York July 1st, 2018 Publisher/Director Guido Giommi Editors, America: Rosalyn Williams Editor, Asia: Eric Davide Editors: Marco Siepi Simona Vantaggiato Alessia Rosa Alessia Liparoti Claudia Chiari

International Subscription Kate Rios Art Director Nick Lowen Graphic Design Giulia Andreoli Mary Thompson Editorial Oﬃces: London, Milan, New York, Singapore, Dubai and Hong Kong

solely on sources believed to be reliable, though the accuracy has not been veriﬁed by World Excellence. Neither the information in World Excellence nor the opinions expressed should be taken as a solicitation for investment. World Excellence accepts no liability for actions based on the information herein.

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July / September 2018 - World Excellence International Edition

OVERVIEW

WHAT’S HAPPENING NOW? - WEIE July Market Review -

UNITED STATES OF AMERICA UE & US

Market Volatility

Similar to China, the United States has also levied duties on European Union steel and aluminum imports in the order of $4 billion. However, the EU has also retaliated, earmarking $3.3 billion worth of tariffs on specific US products imported into the EU. Trump has reacted by threatening a 25% tax on all imported automobiles into the US from the EU. If the European auto industry were to be levied with a 25% tax, the impact on the European economy would be much more significant. In case of such a trade battle the amount of exports hit by tariffs would be five-times larger than the tariffs to be imposed on steel and aluminum. This is because the export to the US by the automotive sector, which amounted to $32 billion worth of cars in 2017, is five-time as large as European steel and aluminum exports the US. If the EU in response, retaliates again, an all-out trade war could emerge. If we assume the various tariff increases would result in an average increase of 10% on both sides of the ocean, the economic damage would be approximately 0.3% of GDP for the EU and 0.4% for the US.

The market has moved higher as positive corporate earnings and encouraging economic data maintain an attractive trend. Volatility has stayed at a low level despite continued headlines around trade, especially with China. We expect investors to continue to base long-term decisions based on economic strength.

The Economy The Federal Reserve raised its outlook on U.S. economic growth during its latest meeting. The median real GDP forecast rose to 2.8%, up from 2.7%, for this year with a longer run median forecast remaining at 1.8%. Economic activity has been rising at a “solid” rate, the Fed’s statement said, marking an upgrade from “moderate” in the previous statement. The median unemployment projection for this year fell to 3.6%, down from 3.8%. Inflation expectations rose to 2.1% for this year through 2020.

World Excellence International Edition - July / September 2018

Interest Rates The Federal Reserve lifted its benchmark rate by a quarter of a percentage point, the second hike this year, landing at a range of 1.75% to 2.0%. A majority of policy makers said they now expect a total of four interest rate increases this year. Even though unemployment in the US is low, inflation is creeping higher. The Fed is raising rates gradually to keep the economy from overheating. “The main takeaway is that the economy is doing very well,” Fed Chairman Jerome Powell said at a news conference.

overview

UNITED KINGDOM

CHINA

The Months Ahead for Trades

Brexit

US Tariffs vs PRC

Trade talks, the Brexit and global conflicts will remain in the news and likely create some volatile days in equity markets. The U.S. economy continues to be strong, so we expect those volatile days to be fleeting. Corporate earnings season is largely behind us and we should see lower levels of grading activity through the summer months. The effects of the trade wars involving the European Union, China and the United States will be limited because exports of steel and aluminum to the US make up no more than 0.3% of worldwide goods exports by the EU and represent 0.05% of the EU’s GDP. The effect of the retaliation on the US economy is negligible too. The 3.3 billion dollars in tariffs represents only 0.1% of US exports worldwide even though targeted industries like US whiskey, US manufactured blue jeans, and peanut butter, to name a few, will feel the pain.

The deadline for settling Britain’s exit from the European Union is growing tight. Big issues, like the border between Ireland and Northern Ireland and the relationship of Britain and the EU after Brexit, continue to bog down talks. Several news outlets report it is growing likelier that the actual exit will be delayed, at least temporarily. One report out of Brussels says the EU would be willing to extend the deadline, as provided by the treaty, because no one is willing to jeopardize the peace in Northern Ireland, which hinges on keeping the border open. Since Northern Ireland is part of the United Kingdom, a full-fledged, or “hard” Brexit would mean border and customs controls there. This is a rapidly moving situation.

On June 15, the United States imposed tariffs on $50 billion worth of mostly high-tech imports that will be subject to 25% tariffs of which $34 billion going into effect from July 6. China announced tariffs that same day on $34 billion worth of U.S. goods, including agricultural goods. It’s vowed to match U.S. tariffs swiftly and dollar for dollar. It appears President Trump continues to reiterate his stated objective is to reduce the size of the U.S–China trade deficit from an estimated $370 billion to $200 billion by 2020. To accomplish this, China could buy more U.S. goods and services, and/or the U.S. could buy fewer Chinese goods and services. Both come with goods and bads for the U.S. economy. In the short-term it would be hard for U.S. companies to ramp up to export more to China when they are operating at full capacity and low unemployment.

The Bottom Line We continue to see stable and healthy economic data. At this time, we have no economic data that supports a recession in the next 6 to 12 months.

July / September 2018 - World Excellence International Edition

World affairs

Migration and thE EuropEan union

HOW TO RESOLVE EUROPE’S POLITICAL CRISIS OVER MIGRATION To address the migration issue effectively, Europe must evolve institutionally, so that it can respond more quickly and effectively to common challenges. Whether than means establishing so-called regional disembarkation platforms or some other mechanism remains to be seen. guy Verhofstadt

russEls

- Since the European Union’s migration crisis peaked in 2015, the number of illegal migrants arriving in the EU has fallen by 95%. Migration challenges remain, and reform of the EU’s methods for managing immigration is desperately needed, as the recent scandalous treatment of the Aquarius rescue vessel, which Italy and Malta turned away, made all too clear. But the timing of the immigration talks held by European leaders in Brussels last month was more a reﬂection of domestic political crises than a response to a spike in new arrivals.

yEs, EuropE’s CurrEnt asyluM poliCiEs, WhiCh

put thE burdEn alMost EntirEly on thE CountriEs that rECEiVE thE Most Migrants, haVE failEd. But

right-wing populists have stoked fears and misconceptions about the number of people arriving in Europe – and about the effects of migration on our societies – to such an extent that their tactics are fueling political cleavages across the continent. In response to domestic concerns over migration in Germany and Italy, EU government leaders agreed at their summit to explore the idea of “regional disembarkation platforms” in North Africa, under the auspices of the United Nations Refugee Agency (UNHCR) and the International Organization for Migration. Such

World Excellence International Edition - July / September 2018

platforms, if organized in accordance with human rights standards, could allow rapid processing to distinguish between economic migrants and those in need of international protection, while reducing the incentive to embark on perilous journeys in the hands of human traffickers. These proposals will require rigorous scrutiny. But regional disembarkation platforms, if implemented with full respect for human rights and combined with a revision of the socalled Dublin Regulation (according to which asylum-seekers must file their applications in the first EU country they reach) and burden-sharing among EU countries, could contribute to common management of migration. But the EU should also consider

World affairs

July / September 2018 - World Excellence International Edition

World affairs

allowing applications for asylum and humanitarian visas directly at EU embassies in third countries, to weaken further the incentive to pay trafﬁckers.

this surEly Must bE onE of thE Eu’s obJECtiVEs.

Migration bEtWEEn thE tWo ContinEnts has bEEn and Will ContinuE to bE a proMinEnt fEaturE of thE huMan story. The African

Union and the EU must address the challenges raised by migration together, in particular the need to crack down on the criminal gangs that ruthlessly exploit desperate and vulnerable people. Nationalist forces within individual EU member states have used migration in Europe for their own partisan purposes. With migrant numbers sharply down, the current political crisis is obviously symptomatic of a broader existential battle between empathetic liberalism and populist illiberalism. The danger now is that, in order to

is responsible for asylum seekers. Europe must continue to seek a collective response – a humane, coherent European asylum and migration system, which respects international law and our European values – before thousands more people lose their lives.

Building on the aims agreed by EU leaders, it is imperative that EU governments now conclude their With thE unitEd statEs work on the five legislative bills – haVing disgraCEd itsElf on reception conditions, asylum undEr prEsidEnt donald qualifications, resettlement, the truMp – recently separating more European Asylum Support Office, than 2,000 migrant children from and Eurodac (the fingerprint database their parents, and now detaining for asylum seekers) – already agreed migrant families indefinitely – Europe with the European Parliament. must show that a fair humanitarian National governments must also approach is possible. adopt positions on the Dublin But to do that, Europe must evolve Regulation so that negotiations institutionally, so that it can respond with the European Parliament can more quickly and effectively to finally start. The c o m m o n Parliament, building challeng es. thE Migration ChallEngE on the work of its W h e t h e r rapporteur, Cecilia that means EUROPE MUST SHOW THAT A FAIR Wikström, and a establishing HUMANITARIAN APPROACH IS POSSIBLE. strong majority of r e g i o n a l five political groups, disembarkation platforms or has been ready to advance this work for more than a resolve domestic partisan political some other mechanism remains to year and wants to see the Common disputes, such as between Germany’s be seen. But Europe should have European Asylum System completed Christian Democratic Union and the learned from its lackluster response before the European elections next CDU’s Bavaria-based sister party, to the financial crisis that postponing essential but painful reforms only May. the Christian Social Union, EU leads to more dramatic and complex The Brussels summit was right governments have opened the door political crises down the road. Maybe to highlight the need for a deeper to a retreat to bilateral agreements to this time, with a political crisis over partnership with Africa, which entails solve intra-EU migration issues. This migration erupting three years after stimulating private investment, is both regrettable and dangerous, promoting good governance, and migration inflows peaked, that lesson as it could lead to further bartering increasing development aid. will finally be recognized. WEiE between individual countries over who

10 World Excellence International Edition - July / September 2018

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World affairs

intErnational politiCal diploMaCy

THE SINGAPORE SUMMIT’S

UNCERTAIN LEGACY Donald Trump’s depiction of his meeting with North Korean leader Kim Jongun as a great success that solved the nuclear problem could make it tougher to maintain international support for the economic sanctions that are still needed to pressure Kim. Weakening the prospect of achieving one’s goals is not the mark of a strong negotiator. richard n. haass

EW yorK - US President

Donald Trump returned from his short summit meeting in Singapore with North Korean leader Kim Jung-un in an exultant mood. “Everybody can now feel much safer than the day I took ofﬁce,” Trump tweeted. “There is no longer a Nuclear Threat from North Korea.” He subsequently told reporters, “I have solved that problem.” There is only one catch: what Trump claimed was untrue. The nuclear threat posed by North Korea remains undiminished. The joint statement issued by the two leaders was as brief – just 391 words – as it was vague.

thE statEMEnt Was far

MorE about aspirations than aCCoMplishMEnts.

North Korea committed only “to work toward complete denuclearization of the Korean Peninsula.” Missing was any deﬁnition of what denuclearization might entail, a timeline for implementation, or a reference to how any actions would be veriﬁed. Other issues related to nuclear weapons, including ballistic missiles, were not even mentioned. Thus far, at least, the agreement with North Korea compares unfavorably to the Iran nuclear deal that Trump denounced – and then renounced a month before meeting Kim. This is not to argue that the Singapore

12 World Excellence International Edition - July / September 2018

summit had no value. At least for now, bilateral relations are in a better place than they were a year ago, when North Korea was conducting nuclear and missile tests, and observers (including me) were busy calculating the chances that the two countries would be making war rather than peace. And, looking forward, there is, in principle, the possibility that the United States and North Korea will be able to reach agreement on the many relevant issues and details that the Singapore summit statement left out.

but turning this possibility into rEality Will bE EXtraordinarily

World affairs

diffiCult. There are many reasons

to doubt whether North Korea will ever give up weaponry that, more than anything else, explains America’s willingness to take it seriously and treat it as something of an equal. In addition, the experience of Ukraine, a country that gave up its nuclear weapons, only to see the world do nothing when Russia annexed Crimea, hardly provides a reason for Kim Jung-un to follow suit. Much the same could be said of Libya, given Colonel Muammar el-Qaddaﬁ’s fate. There is also good reason to doubt that North Korea, arguably the world’s most closed and secretive country, would ever permit the sort of intrusive

international inspections that would be required to verify that it had complied with undertakings spelled out in some future pact. Trump seems to think that Kim can be swayed not simply by threats and pressure, but by ﬂattery and promises as well. The White House released a fourminute video that showcased Kim as someone who could be a great historical ﬁgure if only he would fundamentally change. The video also went to great lengths to show what North Korea could gain economically were it to meet US demands. The president even spoke of the North’s potential as a venue for real-estate development and tourism. What seems not to have occurred to

Trump is that such a future holds more peril than promise to someone whose family has ruled with an iron grip for three generations. A North Korea open to Western businessmen might soon ﬁnd itself penetrated by Western ideas. Popular unrest would be sure to follow.

truMp EMphasiZEs thE iMportanCE of pErsonal rElationships, and hE ClaiMEd to haVE dEVElopEd onE With KiM in a MattEr of hours. More than once, he spoke

of the trust he had for a leader with a record of killing off those (including an uncle and a brother) he deemed his enemies. All of this turned Ronald

July / September 2018 - World Excellence International Edition 13

World affairs

Reagan’s maxim – “trust, but verify” – on its head, to something like “Don’t verify, but trust.” In fact, some of Trump’s post-summit remarks have actually weakened the prospect of achieving his goals. His depiction of the summit as a great success that solved the nuclear problem will make it that much tougher to maintain international support for the economic sanctions that are still needed to pressure North Korea.

truMp also did hiMsElf no faVor by unilatErally

announCing that thE us Would no longEr ConduCt What hE dEsCribEd as “proVoCatiVE” War gaMEs,

also known as military exercises meant to ensure readiness and enhance deterrence. In so doing, he not only alarmed several US allies, but also gave away what he could have traded for something from North Korea. The danger, of course, is that subsequent negotiations will fail, for all these reasons, to bring about the complete and veriﬁable denuclearization of North Korea that the US has said must

north KorEan and us pEaCE prospECts

THE NUCLEAR THREAT POSED BY NORTH KOREA REMAINS UNDIMINISHED. THE JOINT STATEMENT ISSUED BY THE TWO LEADERS WAS AS BRIEF – JUST 391 WORDS – AS IT WAS VAGUE..

14 World Excellence International Edition - July / September 2018

happen soon. Trump would likely then accuse Kim of betraying his trust. In that case, the US would have three options. It could accept less than full denuclearization, an outcome that Trump and his top aides have said they would reject.

it Could iMposE EVEn striCtEr sanCtions, to WhiCh China and russia arE unliKEly to sign up. Or it

could reintroduce the threat of military force, which South Korea, in particular, would resist. But if Trump concludes that diplomacy has failed, he could nonetheless opt for military action, a course John Bolton suggested just before becoming national security adviser. This would hardly be the legacy that Trump intended for the Singapore summit, but it remains more possible than his optimistic tweets would lead one to believe. WEiE

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Food

inappropriatE usE of antibiotiCs

AGRICULTURE’S BAD MEDICINE

Around the world, antibiotics are being misused in livestock production, which is leading to an uptick in antibiotic resistance in humans. To stem the global threat, the world needs a new multilateral treaty that incentivizes farmers to scale back their prophylactic use of antimicrobial drugs. Jonathan anomaly

an diEgo - Most of us are oblivious to the threats caused by our actions when those threats are invisible. Our use of antibiotics is a case in point. When used judiciously, antibiotics save lives and prevent the transmission of deadly diseases. But the therapeutic power of antibiotics is being squandered by their imprudent use in agriculture.

Today, more than half of the antibiotics administered around the world are used in the production of food. Farmers use antimicrobials to treat infections in their livestock. The problem is that they commonly misuse antibiotics either to compensate for poor agricultural practices – such as overcrowding on factory farms, which encourages the spread of disease –

16 World Excellence International Edition - July / September 2018

or to accelerate growth and reduce production costs. These practices may appear harmless in isolation, but their aggregate effect is dangerous. As antibiotics enter the environment through the food people eat or the waste animals produce, antimicrobial resistance intensiﬁes. And this affects human health in troubling ways.

Food

EVEry day, at hospitals and CliniCs around thE World, patiEnts arE giVEn antibiotiCs for baCtErial infECtions like tuberculosis,

gonorrhea, or pneumonia. Others receive antibiotics prophylactically, to prevent bacterial infections during surgery, or when underlying conditions or treatments (such as chemotherapy) compromise their immunity. Unfortunately, many widely used antibiotics are losing their ability to protect patients and treat disease; routine misuse of antibiotics in farming is a key reason why. Not long after the Scottish microbiologist Alexander Fleming discovered a fungus that could kill bacteria, he recognized that overuse of antibiotics would encourage resistance. As he warned in 1945, “the thoughtless person playing with penicillin is morally responsible for the death of the man who ﬁnally succumbs to infection with the penicillin-resistant organism.”

WidEsprEad MisusE of antibiotiCs in agriCulturE is onE of thE Most EgrEgious forMs of “playing With pEniCillin.”

In 2015, a new antibiotic-resistant bacterium was discovered in Chinese pigs, and then in Chinese patients. Since then, two more variants of the bacterium have been discovered, and the genes that enable these bacteria to resist antibiotics and jump between species – so-called “mobile genetic

elements” – have been found on farms and in hospitals around the world. If the reckless use of antibiotics in agriculture continues, the impact on people will be severe. Fortunately, there is a solution. More than a decade ago, the European Union banned antibiotics in agriculture for any purpose other than treating infections. And, although the rule is not perfect, it has helped lower antibiotic use. In Denmark, for example, total antibiotic use by pig farmers has decreased, despite a slight increase in antibiotics administered for treating porcine diseases. These gains, however modest, are encouraging – and should encourage further – coordinated action. Because of the global nature of the threat, only multilateral cooperation – in the form of a new treaty or trade agreements – can ensure that farmers everywhere abide by minimal standards for raising livestock without the unnecessary use of antibiotics. In December 2015, a study commissioned by the British government and chaired by the economist Jim O’Neill found that the most effective means of changing behaviors would be to cap the use of antibiotics, but allow individual countries to experiment with taxes or restrictions to meet the cap. Moreover, as I have argued elsewhere, farmers should be required to obtain a prescription before administering medicine to livestock. Although the EU’s ban includes such a provision, waivers and exemptions have watered

down the rule. If a global consensus were reached – for example, through the G20 or the United Nations General Assembly – countries choosing to tax agricultural antibiotics could use the revenue to help ease the transition to alternative farming practices. Money could also go to fund research on in vitro meat, which would dramatically reduce animal suffering and lower the burden of infectious diseases.

Most iMportant, any nEW trEaty Must proVidE signatoriEs With flEXibility to MEEt thE diVErsE nEEds of thEir farMErs. The goal of global

action should be to incentivize farmers to reduce their antibiotic use, not to mete out punishment.

it is possiblE to CrEatE Conditions undEr WhiCh antibiotiCs arE usEd only to trEat siCK patiEnts, not hEalthy aniMals. Although

the world is a long way from that goal, consumer-driven practices in the United States and regulations in Europe have demonstrated that farmers will change their approach if encouraged or required to do so. Still, most of us remain blind to the unintended consequences of our decisions. Unless people voluntarily refrain from consuming factory-farmed meat, we will need governments and multilateral organizations to keep us on the right path. WEiE

July / September 2018 - World Excellence International Edition 17

Food

fEEding thE World

WE NEED A FOOD REVOLUTION The Earth is 45 million centuries old, but this century is unique, because it is the first in which a species could destroy the entire basis of its own existence. Yet much of the world seems unbothered by this existential threat, refusing to build sustainable systems for survival. bob geldof

ondon - In 1984, I gathered

the most successful musicians of the time to form a “supergroup” called Band Aid to raise money for famine relief in Ethiopia. The next year, an even larger grouping was formed for Live Aid, a major beneﬁt concert and music-based fundraising initiative that continues to this day. At last month’s International Forum on Food and Nutrition, held by the Barilla Foundation, the enduring – and increasingly urgent – need for efforts to strengthen food security could not be more obvious. The fate of the Easter

Islanders illustrates the world’s current problem. Sometime in the twelfth century, a group of Polynesians found their way to a remote volcanic island where dense forests provided food, animals, and the tools and materials to build hundreds of complex and mysterious stone sculptures. But, little by little, the people destroyed those forests, ultimately committing social, cultural, and physical suicide.

today, in rElatiVE tErMs, WE CollECtiVEly haVE only a sMall sWath of forEst

18 World Excellence International Edition - July / September 2018

lEft – and WE arE rapidly dEstroying it. We are running

out of land to farm, and the desert is spreading. The food we produce is often wasted, while almost a billion people do not have enough to eat – a reality that leaves many with little choice except to migrate. Most media coverage focuses on refugees fleeing armed conflict (think Syria) or migrants seeking better economic opportunities than they have at home (think Nigeria or Pakistan). But the link between food scarcity and migration is stronger than it might seem to those who are not among the hungry. For example, the Arab Spring uprisings of 2010-2011, which produced a massive wave of refugees, were triggered by a rise in wheat prices, which led to widespread bread riots that morphed into broader political revolutions. In fact, many armed conflicts, and the mass displacement they cause, can be traced back to food insecurity. While the poor South starves, the rich North gorges. More than two billion of us are overweight, puffed up by low-energy sugars and mass-produced processed foods rich in fat. According to the Food and Agriculture Organization of the United Nations, just one-quarter of the food we throw out or squander each year would be enough to feed 870 million hungry people. Worldwide, one-third of all crops are wasted. Like the Easter Islanders of the past, we are setting ourselves up for self-annihilation. Moreover, human-driven climate change threatens to intensify existing pressures affecting food supply and migration.

Food

In a report published last December, the European Commission’s European Political Strategy Center predicted that ever-more frequent droughts and ﬂoods will “dwarf all other drivers of migration,” with as many as one billion people displaced globally by 2050. Even the lowest estimate of 25 million climate-change migrants, the report warns, “would dwarf the current levels of new refugees and internally displaced persons.”

to bE surE, soME stEps arE bEing taKEn to addrEss food WastE and sCarCity.

For example, this year, the European Commission proposed cuts in farm subsidies, which contribute to overproduction. But this approach – framed in terms of “evolution,” rather than the “revolution” that is needed – is not even remotely adequate. The European Union’s common agricultural policy has long been highly problematic. The CAP authorized tax money to be spent on growing surplus

food, which was then warehoused (at further cost) and ultimately destroyed (at still further cost). The system has improved somewhat over the years, but not nearly enough. The farm bill in the United States – the federal government’s primary agricultural and food policy tool – is similarly wasteful. What is needed is not just a politically tolerable adjustment to existing policies, but rather root-and-branch reform that emphasizes real results. Unfortunately, it is not clear whether there are any politicians up to the task, whether in the erratic and polarized US or in the ineffectual European Parliament and Commission.

thE tiME to stEp up Was yEstErday; thE tiME to adopt a nEW approaCh is noW. We can discuss the United

Nations Sustainable Development Goals – which include targets like “halving per capita global food waste at the retail and consumer level, and reducing food losses along production

and supply chains by 2030” – until we are blue in the face. What matters are well-designed, effective, and comprehensive policies, implemented in a sustained manner. And those are nowhere to be found. The Earth is 45 million centuries old, but our century is unique, because it is the ﬁrst in which a species could destroy the entire basis of its own existence. Yet we latter-day Easter Islanders seem unaware of this existential threat, preferring to build statues rather than sustainable systems for survival. Will we acknowledge our predicament only when our land becomes a desert, when our health systems collapse under the strain, when even the wealthy are facing food shortages, when freshwater becomes scarce, and when our national shorelines are breached? By then, it will be too late, and our fate will be sealed. The greatest threat to our planet is the belief that someone else will save it. Each of us must recognize the seriousness of our situation and demand real action to change it. That means you. WEiE

July / September 2018 - World Excellence International Edition 19

spotlight

thE CEo suMMit in nEW yorK

AUTHENTICITY IS THE US FOOD INDUSTRY’S KEY TO SUCCESS Lefonti’s Ceo Summit in New York City is a Provocative Discussion About Successfully Marketing Italian Food Products in the United States Eric davide

20 World Excellence International Edition - July / September 2018

spotlight

EW yorK City - WEIE’s summer issue provided full coverage of Le Fonti’s annual CEO Summit on the Food industry recently held in New York City at the end of June 2018. The summit preceded Le Fonti’s annual Awards ceremony for 2018 and WEIE was there to gather insight on what food companies from the US believed are the strategic drivers to successfully marketing food products in the US. Indeed, the title of the Summit was “Understanding the US Grocery Market”, where four esteemed companies and one blogger answered questions about marketing Italian food in the United States and their strategic outlook for the 21st century. The event was conducted by two inﬂuential and well-known emcees for the food industry: Phil Lempert and Sabrina Buckwalter. Phil Lempert, “The Supermarket Guru,” has appeared on ABC’s The View, Dr.Oz, The Oprah Winfrey Show, 20/20, and has founded The Lempert Report, Food, Nutrition & Science, Facts, Figures & the Future, and The Food Journal. Sabrina Buckwalter is a respected freelance journalist and producer. The panel of the summit included Katie Graham, Senior Vice President of LOMAR (HyVee Distributing); Lorenzo Zurino (the CEO of The One Company), Paolo Zunino (the CEO of Esmach), Alessandro Negri Della Torre (New York branch head of the Law Firm Loconte & Partners), and Dara Pollack

(food blogger). The ﬁrst panelist was The One Company’s CEO Lorenzo Zurino, who provided interesting insights about the evolution of the food market in the United States, and the challenges facing Italian producers and US distributors, particularly with regards to the authenticity of Italian food products.

DARA POLLACK - FOOD BLOGGER

Mr. Zurino is part of a four-gEnEration faMily WhiCh has bEEn proViding Consulting to italian CoMpaniEs Wishing to EntEr thE us MarKEt. His

success stems from his straightforward and pragmatic approach to defining the US market’s specific characteristics in ways which may not always be noticeable to Italians. His contribution to the summit was well-received and he stressed the importance of educating the US consumer about the potential of Italian food products in the United States. He stressed to us that it is important for the Italian company to be patient and to dedicate the necessary time and effort to obtain success in the US market. Contrary to what may be perceived from Italy as a market conducive to reaping immediate benefits, Mr. Zurino’s advice is to apply constant pressure and to stay informed about the new trends and possible opportunities to promote innovative products in the US market. To this regard, he pointed out that

PAOLO ZUNINO - CEO OF ESMACH

the US food market has changed dramatically over the past 20-30 years. “10 years ago, I would have never imagined selling containers of healthy food in Manhattan”, he remarked, emphasizing that the market is in constant evolution and that US consumers are now more health conscious than ever before. The progressive and relentless evolution of

July / September 2018 - World Excellence International Edition 21

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the food market requires producers to be fully aware of the trends which may have both positive and negative repercussions.

KATIE GRAHAM, - SENIOR VICE PRESIDENT LOMAR (HYVEE DISTRIBUTING)

LORENZO ZURINO - CEO OF THE ONE COMPANY

in faCt, Mr. Zurino did highlight a partiCularity of thE us MarKEt With rEgards italian produCts and WhiCh has a lot to do With authEntiCity. He

asserted that the growing presence of “Italian-sounding” brands in the US market have become a deterrent to the growth of real, authentic Italian products on the market, and which have contributed to deteriorating their market share. “Sales of authentic Italian food products amount to about $5 billion in the United States, but that ﬁgure skyrockets to over $60 billion if we take into consideration Italiansounding products”, he declared, implying that it is the role of the Italian company, with the help of both US and Italian associations, to properly inform US consumers of the authenticity of products on the market so that they can make balanced purchasing decisions. The next panelist, Mr. Paolo Zunino represented Esmach, a new participant at the CEO Summit of New York and winner of Excellence of the Year foodservice equipment Italy. Esmach was featured in WEIE’s 2018 January–March issue in the Spotlight article “Baking Technology Made Easy and Environmentally Sustainable Worldwide”. Esmach is part of the

ALESSANDRO NEGRI DELLA TORRE - N.Y. BRANCH HEAD OF THE LAW FIRM LOCONTE & PARTNERS

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ALI Group, leaders in designing, producing and supplying machinery and solutions for food delivery. Mr. Zunino agreed with The One Company’s CEO that there is a consistently evolving market in the United States. US consumers are moving to larger purchasing categories (convenience food) and to fine foods, where in the latter category the request from clients (retailers) is to simplify productive processes and to automatize, particularly for innovative food like healthy food and traditional food. “In terms of fine food restaurants and supermarkets, these are emphasizing the difference between fine foods and convenience foods categories which can lead to higher earnings in both categories” declared Zunino, recognizing on the one hand that the upscale market will tend to become more predictable while, on the other hand, the lowerclass market will gain a little more quality in relation to its low-cost product segment.

hE also agrEEd that it is iMportant to Maintain authEntiCity as a driVEr for groWth of italian produCts in thE us MarKEt. “It is important to create a

story supporting a brand or product”, asserted Mr. Zunino, who also added that community building is a way to add a following to the success of a brand: “even if it means that only 1000 consumers (the community) will be

spotlight

buying the product, I know that I need to maintain their market following so that they continue to buy”.

thE nEXt panElist Was KatiE grahaM, sEnior ViCE prEsidEnt of loMar of hyVEE distributing, spECialiZEd in distributing spECialty food in thE us MarKEt. Ms. Graham agreed with

Zunino’s comments about authenticity, adding that consumers are becoming more and more interested in knowing the origin of the food they eat and that what they are eating has a purpose, particularly with regards to their diet. Mr. Lempert then commented that authenticity doesn’t mean only genuineness of the product, but also “who the company producer is working with and how the company’s funds are being invested”. Thanks to technology, he added, consumers may agree “to shop at retail points selling products whose company producers espouse values in line with those of consumers”. The 4th panelist was Dara Pollak, an experienced food blogger, whose precious suggestions were highly appreciated and an additional contribution. Her comments conﬁrmed Mr. Lempert’s assertions about the importance of millennials and generation-z consumers who have been trendsetters in recognizing the quality and value of food. She did however insist that authenticity is also an issue regarding food industry

bloggers and inﬂuencers as well: “The industry is quite cluttered” with many makeshift bloggers, “all you need is a phone and money to pay your followers,” adding that “we tend to lose sight of where the genuine credibility comes from and what it

authEntiCity

CONSUMERS ARE BECOMING MORE AND MORE INTERESTED IN KNOWING THE ORIGIN OF THE FOOD THEY EAT AND THAT WHAT THEY ARE EATING HAS A PURPOSE, PARTICULARLY WITH REGARDS TO THEIR DIET. - KATIE GRAHAM, HYVEE DISTRIBUTING offers. The situation is getting out of hand.” Ms. Pollak’s consistency in providing quality information thanks to her industry knowledge has allowed her to demonstrate her capabilities in a credible way from the start, from identifying whether or not products have been ethically sourced to issues

related to fair trade. To this regard, Mr. Lempert asked a final question about how tariffs have been impacting on food prices and availability which was partially answered by the final panelist, New York Branch head of the Loconte & Partners law firm, Alessandro Negri Della Torre. He asserted that the issue is not so much the amount or value of the tariffs but, rather, the predictability of whether tariffs will be levied or not: “Once you calculate how that impacts on your business, that can change due to a series of political assumptions that may not have to do with business.” Predictability and stability are the issues, he added, stating “when there are changes occurring due to factors which cannot be predicted, business will slow down due to anxiety and result in a lack of rational business planning.” In conclusion, there are a variety of issues which continue to keep food companies and influencers alert about the opportunities for Italian companies in the US market. Along with authenticity, predictability and human resources management, Italian producers’ success in the US market will also depend on efficiency, quality and volumes. The degree to which food companies demonstrate corporate excellence in the United States will also depend on their approach on the market: the mission and ideals they value will need to be efficiently transmitted to consumers

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global upsidE

GOING BEYOND EXPECTATIONS Enthusiasm, optimism and a long-term global strategy are the drivers of this US relocation company. alessia liparoti

asadEna (Ca) - Ragu Bhargava is a successful serial entrepreneur and, supported by his wife Gita, they are convinced there is no problem that cannot be solved. Whether it is people, process or technology – everything can be made better with the right skills and the right tools. Mr. Bhargava is the CEO and his wife COO of Global Upside and its sister companies Global PEO Services and Mihi Software. Global Upside solves business complexity with world-class HR, Payroll, Accounting,

Tax, Compliance, PEO, and Talent Acquisition services. With integrated, end-to-end support, companies can focus on innovation, growth, and excelling in their fields. Founded in 1999 in Silicon Valley, Global Upside today empowers companies in 100+ countries and is dedicated to solving complexity for companies everywhere they do business. The company has 5 branch offices convering the East and West coasts of the United States, and a branch office in India. Mr. And Ms. Bhargava are both award-winning and successful business

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persons and Mr. Bhargava is also highly sought after expert on international business. In 2017, he won the “Pride of India” Award at the House of Lords in London; appeared on Kathy Ireland’s show ‘Worldwide Business’; and was among a select group of US entrepreneurs invited by the Chinese Government to attend the China’s OBOR Summit. He and his wife were most recently awarded CEO and COO of the Year, respectively, for Innovation HR & Payroll North America at the world-renowned awards ceremony organized by Le Fonti in Milan, Italy

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on March 9th, 2018 and broadcasted around the globe. As an expert on international cultural affairs and relocation services, he was invited to speak at Le Fonti’s CEO Summit which preceded the awards ceremony. WEIE took the opportunity to go through some of the main points voiced by Mr. Bhargava during the summit when he was asked about the evolution of human resources and the repercussions in society. He suprised many with his wisdom and long-term vision.

hoW is thE World of huMan rEsourCEs Changing and What arE thE ChallEngEs WhiCh liE ahEad of you?

them, are changing the expectations perceived by employers. Millenials have new requirements which cannot overlooked by the employer and which have radically changed compared to those we had when we were 20 or 30 years old.

hoW Can this bE ConsidErEd an adVantagE or disadVantagE on thE part of thE EMployEr?

Actually, the fact that the “millenial” employee is so mobile and not tied down to work in a particular location is certainly an advantage for the potential employer when recruting. An employer will certainly beneﬁt from the fact that the potential employee knows no boundaries, so a company based in Milan can seek out talent based in the United States or anywhere in the world and viably consider relocation as an

What Can you tEll us about thE risK of a talEnt drain WhEn WorKErs EMigratE abroad?

There are certainly opportunties and drawbacks with the existence of a global workforce. As mentioned, talent can be sought around the world and newlyhired employees are then instrumental in providing economic stimuli to the host country where they have relocated. On the other hand, the talent drain is inevitably a drawback, but only initially.

Could you furthEr?

EXplain

The talent drain is detrimental if only ﬂowing in one direction, as it has been First and foremost, we cannot deny up to now, from home country to host the importance of reaching continuous country. The case of the United States growth through an increase in our has perhaps been the most eloquent. turnover, as is and has been the case What we have been realizing today is with the majority of companies around that once a worker has contributed his the globe. What has part to the branch been changing is the or headquarters of flEXibility workforce overall, a host-country based AN EMPLOYER WILL CERTAINLY BENEFIT whose evolution company, perhaps FROM THE FACT THAT THE POTENTIAL is moving from a after 5-10 years, the traditional, loyaltynew tendency is for EMPLOYEE KNOWS NO BOUNDARIES based relationship him/her to return - RAGU BHARGAVA, CEO, GLOBAL UPSIDE with the employer to to the home country. one which has been This is especially true deﬁned through the Gig economy as a option. The possibilities that a potential for growing home-country economies relationship where the employee is not employee says no to an international which inevitably tend to create necessarily looking to develop a longoffer diminish considerably. At the incentives for a relocated workforce term relationship with the employer, same time, however, employers must to come back and contribute to their and is not looking for the so-called be aware of millenials’ needs and while economic success. When resources move both towards the host country job for a lifetime. The new generation it is not necessarily a disadvantage, and subsequently towards the home of employees, the so-called millenials both parties need to adjust to the new and those who will be coming after country, the phenomenon becomes relationship.

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EXECutiVE profilE

Ragu Bhargava and his wife, Gita, at Le Fonti Awards Event in Milan, Italy

an opportunity to the employer and this newly-created opportunity is certainly emblematic of what the global workforce has to offer today and, especially, what its evolution has had to offer over recent years. Following the summit, WEIE had a brief interview with both Mr and Mrs. Bhargava to give readers a better idea of the company’s offer, their experiences with clients and future corporate initiatives. Their inexorable optimism is a good indicator of the company’s successful approach.

What Would you say is your gEnuinE uniQuE sElling point, your CoMpEtitVE adVantagE With rEgards to thE CoMpEtition?

Today, it’s far easier for the global workforce to communicate or for companies to ship goods across borders. However, legal entities need to be set up, people need to get paid, taxes need to be ﬁled, beneﬁts need to

Global Upside solves business complexity with world-class HR, Payroll, Accounting, Tax, Compliance, PEO, and Talent Acquisition services. With integrated, end-to-end support, companies can focus on innovation, growth, and excelling in their fields. Founded in 1999 in Silicon Valley, Global Upside today empowers companies in 100+ countries and is dedicated to solving complexity for companies everywhere they do business. Learn more at www. globalupside.com.

be provided, employment laws need to be understood – you have to play by the rules. The beneﬁts of working with a company like Global Upside are for both small and large companies. When relacating abroad. smaller companies have the beneﬁt of hiring external companies like ours to hire the right local staff in terms of both the number of personnel and the quality of their background as an indicator of potential performance. Larger companies have the possibility of hiring local staff when relocating thanks to a probable branch network they might have built abroad, however they still lack the expertise necessary build the incentives for growth opportunities. With our client base of over 200 companies, we are able to provide those best practice cases which allow our clients to have their employees reach their full growth potential, regardless of where they are located. Whatever comes your way, in whichever country you are operating – we will handle it.

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in What Way do you assist CliEnts in rEaChing thEir goals

We are living in a hyper-competitive economy – every brand is out there with a client experience strategy. At Global Upside – we treat “Client Experience” as a moving target. It changes with each client’s journey and we are all trained to be cognizant and responsive to that. The governing rule is to assess every decision, every strategy, every action based on whether it will amplify or enhance our client’s experience. With regards to relocation services. Global Upsaide’s broad client base and best practice cases can beneﬁt companies large and small to achieve results when going abroad being fully aware of the costs involved but also capitalizing on growth opportunities.

you’VE donE a phEnoMEnal Job CrEating global upsidE. What’s nEXt? What’s going to KEEp driVing you?

Our clients will be the ultimate driving force of our company. I have been running Global Upside for nearly 10 years and no two cases have been the same. Beyond internal challenges the challenge of the next client is a huge inspiration and driver for us how can we solve every new situation? Our goal is to be the brand every company wants to engage to fuel their growth. We want to satisfy and go beyond client expectations. . WEiE

kwak. „THE LINK BETWEEN MEDIA AND TELECOMS.“ International Premium Numbers. Domestic Premium Numbers. Bulk SMS. Call Center.

„AWARD WINNING MICROPAYMENT PROVIDER WITH GLOBAL FOOTPRINT.“

www.kwak-telecom.com e-mail: sales@kwak-telecom.com phone: +357 220 223 18

spotlight

lablaW

NEW LABOUR MARKET DRIVERS

During the past decade, perhaps remembered historically for the global economic crisis, technological and social forces have actually been contributing to the transformation of how work gets done, who does it, and especially its effects on the labour market. WEIE approached the repercussions of this transformation and its evolution with regards to labour market law with Italian lawyer and employment specialist Francesco Rotondi. Claudia Chiari

ilan - In 2006, Mr.

Rotondi partnered with Luca Failla to create LabLaw, an employment law ﬁrm with ofﬁces based in Italy and Dubai. Rotondi’s pragmatic approach has stemmed from social and local market analyses deeply rooted in the principles of Roman law.

Mr. rotondi, plEasE tEll us about your stratEgy rElatEd to loCal MarKEt prEsEnCE.

LabLaw has always taken into consideration a territorial marketing strategy, on both a national and international scope. Indeed, the name “LabLaw” combines the international

legal concept (Law) with a deeplyrooted territorial and historical market presence (Lab): lab refers to both a law laboratory, a sort of think tank of evolving legal issues, and the English/ Latin derivative labour. When the name was adopted there were no impelling market issues such as those at hand today. However, our reasoning was based on a common law policy under the auspices of European Union Law. Our national strategy has been based on fragmentation: we have established our market presence according to local market drivers to which our work methodology adapts. Our ﬁrm is prominently centred around our Milan headquarters, whose model is

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replicated nationally. Our strategy is to recruit personnel whose professional expertise is consonant with Milan’s model at a local level. We believe this modus operandi has yet to be adopted by any competitor and is the reason behind our success in opening ofﬁces in Rome, Padua, and Genoa followed by Naples, Pescara and Bari. We are convinced that this is a winning strategy because we can be immediately responsive to companies’ needs with local branches, thus contributing to a cost reduction for the client company’s headquarters. Moreover, we can increase our professional expertise in line with local market drivers. In our business, we do not believe that “top-

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EXECutiVE profilE

us to provide the necessary local legal staff to satisfy Ferrero’s needs without having to worry about ﬁnding solicitors abroad. Adopting the approach of a local market presence, like an “Italian desk” abroad, we created an international project to assist Italian entrepreneurs considering investments in Dubai. We excluded other international hubs, like those in the UK, as locations to open a local market presence since the stringent, saturated market conditions in the country would not be conducive to the realisation of a successful business venture.

down” organisational governance is at all feasible; on the contrary, an organisation’s structure must reflect local market drivers. Our international strategy has not been overlooked either: we have created a law firm alliance specialising in labour law (L&E Global) with headquarters in Brussels and a worldwide market presence. L&E Global’s General Director coordinates communication amongst all members concerning both law-making and social market drivers. Each local firm is LabLaw’s country reference for the entire organisation. For example, while assisting Ferrero to establish a new series of global agreements, our role as “general contractor” allowed

thE past dECadE’s soCioEConoMiC CliMatE has also ContributEd to profound transforMations in thE oCCupational and industrial struCturEs globally. hoW is thE lEgal fraMEWorK rElatEd to EMployMEnt Changing in italy? What points of ViEW arE bEing adoptEd froM a lEgal standpoint in EuropE and thE rEst of thE World?

It is important to make a premise here: labour market law is practised and evolves according to economic and business needs which are also governed by social market drivers. We have noticed an overwhelming discrepancy between company and market requirements, which have evolved during this past decade,

Francesco Rotondi Founding Partner LabLaw Francesco Rotondi is specialized in labour law and industrial relations and has provided assistance to some of the largest Italian and International companies around the world. He boasts solid experience in the fields of reorganisation planning and collective redundancies, company transactions, trade union litigation as well as drafting of all types of employment or agency contracts and other labour- related issues, also related to commerce and banking. Mr. Rotondi commenced his professional career in 1991 with Trifirò & Partners, where he became Partner. In 2006, he founded LabLaw. He is currently an adjunct professor of Labour Law at Cattaneo University - LIUC Castellanza, Italy. He has won several national and international awards, including Le Fonti’s prestigious recognition as Lawyer of the Year Italy. www.lablaw.com

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and legislative policies which have instead remained static. Wage labour is still considered the norm amongst employment schemes, but thanks to this immobility, the legislative process is hostage to a continuous speciﬁcation of “exceptions”. In Europe, there are no evident examples of good or bad national employment law management; most

series of critical issues to the forefront of companies, and we should consider that 90% of Italian companies are made up of Small and Medium-sized Enterprises (SMEs) which, when compared to other European SMEs are, essentially micro businesses. Italian SMEs’ successful performance is possible thanks to the absence of predeﬁned legal obligations: the

labour and tEChnology

“HUMAN RESOURCES COMPETENCY REMAINS AT THE HEART OF THE FOURTH INDUSTRIAL REVOLUTION” - FRANCESCO ROTONDI, LABLAW European countries have reacted similarly, each expressing resistance to change. In the United States, on the other hand, legislation policies have evolved on the matter thanks to emphasis put on job content, rather than on wage labour or selfemployment.

2018 is thE yEar thE Eu’s gdpr - gEnEral data protECtion rEgulation CaME into forCE. What is going to ChangE for CoMpaniEs and EMployEEs?

The EU’s GDPR is, in my opinion, just like the EU’s recent regulation on whistleblowing: an attempt to incorporate a legal regulation which is unﬁt for the proposed business framework. Its objective is to bring a

GDPR implies the creation of a department within each organisation whose goal is to guarantee the regulation’s application, an immediate cost outlay which organisations like Italian SMEs are not ready to incur. For larger and more structured businesses this has not been the case, as these companies have been preparing to implement the regulation privy of radical cost burdens.

during thE upCoMing 4th industrial rEVolution, huMan Capital Will nEEd to KEEp up With tEChnologiCal EVolution. in your opinion, arE thErE nations WhiCh haVE intEgratEd sChool and WorK bEttEr than othErs?

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What is thE CurrEnt sCEnario in italy?

Human resources competency remains at the heart of the fourth industrial revolution. On the one hand, companies are constantly searching for the right personnel to fulﬁl their objectives, while on the other the unemployment rates remain unusually very high. Even though some progress has been made, in Italy the educational system has not yet effectively taken into consideration companies’ human resources needs and Italian public institutions have been incapable of applying EU employment schemes on a national level, like the Youth Guarantee. Instead, large structured business organisations have autonomously created and adopted models based on school-work exchange programmes. I am proud to announce that I am proactively part of 2 projects launched by Bosch Italy: one is a training ground in which young people are placed in career pathways, while the other is a workforce development project called “Let’s Win Together”. The pathway includes career consulting, a particularly important service for those struggling in their job search, followed by career training: young people are subsequently placed in companies, like LabLaw, which provide them with work experience. Our idea is to represent a model which, if successful, could be replicated nationally by public

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institutions in a structured way. In Europe, I would like to compare Italy with France and Germany. In the latter, a great deal of energy has been channelled into the provision of career training. In Germany, for instance, many companies have made themselves available to participate in career pathways and trade unions have provided opportunities for old and young to meet and mutually exchange job experiences and roles as a way to create an intergenerational bond. In Italy, on the other hand, similar attempts have only become an expedient move to accompany the elderly towards retirement.

tEChnology has bECoME an iMportant rEsourCE for CoMpaniEs to CoMpEtE globally. arE today’s lEgal norMs in italy suffiCiEnt in guarantEEing EMployEE dignity and priVaCy or

do you thinK tEChnology is bECoMing a MEans for thE EMployEr’s abusiVE Control oVEr thEM?

The Italian legal system is completely prepared to manage “invasive” technology issues. Indeed, the entire legal apparatus built in 1970 was apparently capable of foreseeing the future: an underlying judicial philosophy had been conceived at the time and has subsequently evolved through the course of the years to be modiﬁed only very recently. In my opinion, it is not an issue related to the invasion of privacy; rather, companies should manage technological evolution in the workplace without falling into the trap of auto-denying its usage. This could lead to the generation of an audit mechanism in the workplace that goes beyond the employer’s sphere of control. There appears to be the notion that working around the normative framework related to the issue

of privacy is sufﬁcient to having the matter completely resolved. The crux of the problem lies in its implementation and the public infrastructure which makes up its underlying framework: for example, in my opinion, should the current draft of the so-called “dignity decree” be approved by parliament, serious employment repercussions would ensue because the current draft can only guarantee permanent work contract hiring scheme, without considering companies’ abilities to fulﬁl their role in the norm. Before any consideration is made regarding its approval, a complete analysis of the public sector’s underlying framework needs to be made: this involves the re-establishment of Italian public institutions and making sure that companies do indeed invest in the public sector. If norms are announced only as a way to promote political propaganda, these will remain empty and lacking in any substance. WEiE

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spotlight

MobiWEb

COMPLETE AND SECURE SMS BULK MESSAGING WORLDWIDE A Vital International Communications Service for All Kinds of Companies with Global Ambitions alessia liparoti

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spotlight

ong Kong - Since its

establishment in 1999, MobiWeb has been providing global bulk SMS Messaging for B2B, B2C and C2C mobile interaction. Being a licensed Mobile Network Operator (MNO) and ﬁxed carrier in several countries with its own direct ss7 capabilities, MobiWeb is the ideal partner for companies that demand high quality SMS messaging services, meeting the most demanding enterprise requirements. MobiWeb actively participates in the development of the mobile ecosystem as a GSMA associate member and is one of the largest sms messaging providers in the world. Headquartered in Hong Kong, MobiWeb has offices in United Kingdom, Belize, Turkey and Greece. MobiWeb international presence with offices located in 3 continents ensures client satisfaction covering local and international business needs. MobiWeb provides high quality telecommunication solutions to more than 2350 enterprises across the globe and supports 1000+ mobile networks, in 200+ countries, allowing clients to reach billions of subscribers. WEIE took the opportunity to discuss MobiWeb’s success with the company’s CEO, Peter Kappos. Read on to find out what

rEliability and EffiCiEnCy

OUR PRODUCTS...PROVIDE SEAMLESS SECURE MESSAGING SOLUTIONS, MISSIONCRITICAL TRANSACTIONS, MARKETING NOTIFICATIONS AND SERVICE ALERTS. makes the company stand out as a complete telecommunications solution provider.

you WErE aWardEd EXCEllEnCE of thE yEar – innoVation & lEadErship – sMs MEssaging proVidEr, asia at thE lE fonti aWards CErEMony in MarCh 2018. hoW Would you liKE to CoMMEnt on this ViCtory?

I am honored to win this award. This achievement is the result of our hard work and our focus on growth and innovation in the enterprise messaging market. However, successful management is not only conducive to the generation of economic growth. Vision, leadership, inspiring and motivating others, are now becoming even more important. It takes a lot of teamwork, inspiration, innovation and good old-fashioned hard-work to bring a company to global excellence and we believe MobiWeb is achieving this accomplishment. We strive to progress the industry by contributing to the telecom

community through our GSMA membership. This award is an inspiration to continue on the same path, progressing and disrupting the enterprise messaging industry with new, innovative products.

MobiWEb is a lEading Endto-End sMs MEssaging solutions proVidEr. Can you tEll us MorE about your sErViCEs?

Enterprises require SMS messaging to reach their customers directly as a means to offer them additional value. They cannot afford to have their communications compromised. They need security, reliability and quality services. Our products solve exactly these problems by providing seamless secure messaging solutions, mission-critical transactions, marketing notiﬁcations and service alerts. Through one connection, enterprises connect to our carriergrade platforms and unlock enterprise messaging delivery to more than 6 billion subscribers of more than 1,500 mobile operators. They use SMS messaging for authentication, security, marketing,

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EXECutiVE profilE

Peter Kappos | CEO of MobiWeb MobiWeb’s proprietary, carrier-grade mobile services platform is developed in-house and designed speciﬁcally for high performance: a simpliﬁed global messaging system through one application programming interface. Its services boast consistency and reliability through a geo-redundant network infrastructure. The company employs industry-standard security measures to ensure customers’ data integrity. MobiWeb’s employees possess extensive technical and commercial experience in the pursuit of client satisfaction and technological innovation. www.solutions4mobiles.com

customer service and commerce. Our client-base ranges from ﬁnancial institutions and banks to social networks and chat

applications. They all enjoy highquality, performance, reliability and security in their business communications.

What arE thE Main ChallEngEs in thE tElECoM sECtor noW?

The increasing growth of mobile messaging applications and OverThe-Top players has become a threat to traditional telecom revenues and their declining monetization model. The current business model of telecom companies is in the process of becoming unsustainable. To address this challenge, we believe telecom companies must adapt properly by investing in the development of new solutions that will drive innovation and meet consumer demand, leading to the creation of new revenue streams.

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What arE your futurE goals and proJECts?

Omni-channel customer engagement solutions are poised to make considerable market impact in the future. Enterprises require customer engagement solutions on multiple channels for seamless user experiences, which can be easily integrated into their operations and infrastructure. Our upcoming endto-end solution is in our product pipeline and addresses exactly this market need. Through one platform, enterprises will be able to reach their customers through SMS, Voice, Push Notiﬁcations and Chat Messengers (among others), delivering improved user-experiences. At the same time, our customers will continue enjoying the same reliability and performance through our existing SMS messaging products. WEiE

sustainability

EthiCs and thE EnVironMEnt

ENERGY FOR THE COMMON GOOD Aristotle famously contrasted two types of knowledge: “techne” (technical knowhow) and “phronesis” (practical wisdom). Scientists and engineers have offered the techne to move rapidly from fossil fuels to zero-carbon energy; now we need the phronesis to redirect our politics and economies accordingly. Jeffrey d. sachs

EW yorK - The climate crisis we now face is a reﬂection of a broader crisis: a global confusion of means and ends. We continue to use fossil fuels because we can (means), not because they are good for us (ends). This confusion is why Pope Francis and Ecumenical Patriarch Bartholomew are spurring us to think deeply about what is truly good for humanity, and how to attain it. Earlier this month, the pope and patriarch each convened business, scientiﬁc, and academic leaders, in Rome and Athens, respectively, to hasten the transition from fossil fuels to safe renewable energy. in Most of thE World today, thE purposEs of politiCs, EConoMiCs, and tEChnology haVE bEEn

36 World Excellence International Edition - July / September 2018

sustainability

dEbasEd. Politics is regarded as

a no-holds-barred ﬁght for power, economics as a ruthless scramble for wealth, and technology as the magic elixir for more economic growth. In truth, according to Francis and Bartholomew, we need politics, economics, and technology to serve a far greater purpose than power, wealth, or economic growth. We need them to promote human wellbeing today and for future generations.

aMEriCa May bE thE Most ConfusEd of all.

The United States today is rich beyond imagining, with median household income and gross domestic product per capita each equal to nearly $60,000. The US could have it all. Instead, what it has is widening income inequality, falling life expectancy, a rising suicide rate, and epidemics of

obesity, opioid overdoses, school shootings, depressive disorders, and other grave ills. The US incurred $300 billion in losses from climate-related disasters last year, including three massive hurricanes – the frequency and intensity of which has risen, owing to fossilfuel dependence. The US has vast power, wealth, and growth, and yet diminished wellbeing. The US economy and politics are in the hands of corporate lobbies, including Big Oil. Resources are relentlessly allocated to developing more oil and gas ﬁelds not because they are good for America or the world, but because the shareholders and managers of ExxonMobil, Chevron, Conoco Philipps, and others demand it. Trump and his minions work daily to undermine global agreements and domestic regulations that have been put in place to accelerate the shift from

fossil fuels to renewable energy. Yes, we can produce more oil, coal, and gas. But for what? Not for our safety: the hazards of global warming are already upon us. Not because we lack alternatives: the US has ample wind, solar, hydro, and other sources of primary energy that don’t cause global warming. The US economy, alas, is an outof-control juggernaut, chasing oil wealth and jeopardizing our very survival.

of CoursE, thE us is not alonE in thE Mad pursuit of WEalth oVEr WEllbEing. The same get-

rich-quick confusion of means and ends is causing Argentina, host of the G-20 Summit later this year, to pursue fracking of natural gas, with all the associated climate and environmental risks, instead of tapping its bounteous

July / September 2018 - World Excellence International Edition 37

sustainability

huMan dignity and naturE

Eastern churches potential in wind, “OUR CIVIL LIFE AND CIVILIZATION led by the solar, and hydro ARE DEFINED AND JUDGED PRIMARILY Ecumenical power. The same BY OUR RESPECT FOR THE DIGNITY Patriarch are corruption of in lands facing purpose is causing OF HUMANITY AND INTEGRITY OF NATURE.” extreme dangers the Canadian – POPE FRANCIS from global government to warming: intense guarantee a new heat waves, rising sea levels, and poorer countries and generations pipeline to export output from its increasingly severe droughts. The yet to come. Decisive progress on polluting and expensive oil sands Mediterranean region is already beset this path cannot be made without to Asia, while under-investing in by environmental distress and forced an increased awareness that all of Canada’s vast renewable energy migration from conflict zones. us are part of one human family, sources. Unchecked climate change – which united by bonds of fraternity and has already contributed to conflict – solidarity. Only by thinking and in his MEEting With thE would spell disaster for the region. acting with constant concern for CEos of MaJor oil and Bartholomew’s conference opened this underlying unity that overrides gas CoMpaniEs, franCis at the Acropolis, the very heart of all differences, only by cultivating a , “Our desire to told thEM ancient Athens, where 2,300 years sense of universal intergenerational ensure energy for all must not ago Aristotle defined ethics and solidarity, can we set out really and lead to the undesired effect politics as the quest for wellbeing. resolutely on the road ahead.” of a spiral of extreme climate As Francis was meeting the CEOs changes due to a catastrophic rise in Rome last week, Bartholomew in global temperatures, harsher thE politiCal CoMMunity, was similarly convening leaders of environments, and increased levels WrotE aristotlE, should scientific institutions, UN agencies, of poverty.” He noted that the oil aiM “at thE highEst and major faiths in Athens and the companies are engaged in “the good,” to bE aChiEVEd by Peloponnese, to chart a path to continued search for new fossil CultiVating thE VirtuEs of environmental safety. Bartholomew fuel reserves, whereas the Paris thE CitiZEnry. also underscored the fundamental Agreement clearly urged keeping Aristotle famously contrasted moral concern. “The identity most fossil fuels underground.” two types of knowledge: techne of every society and measure And he reminded the executives (technical know-how) and phronesis of every culture are not judged that, “Civilization requires energy, (practical wisdom). Scientists and by the degree of technological but energy use must not destroy engineers have given us the technical development, economic growth or civilization!” knowledge to move rapidly from public infrastructure,” he said. “Our Francis underscored the moral fossil fuels to zero-carbon energy. civil life and civilization are defined dimension of the problem: “The Francis and Bartholomew urge us and judged primarily by our respect transition to accessible and clean to find the phronesis, the practical for the dignity of humanity and energy is a duty that we owe wisdom, to redirect our politics and integrity of nature.” toward millions of our brothers economies toward the common The 300 million faithful of the and sisters around the world, good. WEiE

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sustainability

CruCial EnVironMEntal issuEs

Making Water-Smart Energy Choices Just as the accumulation of carbon in the atmosphere contributes to climate change, so does the degradation and depletion of water resources. If the world does not adopt a more holistic approach that recognizes this reality, it will be impossible to save the planet. brahma Chellaney

EW dElhi

- Climate change undoubtedly poses a potent – even existential – threat to the planet. But the current approach to mitigating it, which reflects a single-minded focus on cutting carbon dioxide emissions, may end up doing serious harm, as it fails to account for the energy sector’s depletion of water resources – another major contributor to climate change. “Water is at the heart of both the causes and effects of climate change,” a National Research

40 World Excellence International Edition - July / September 2018

Council report declares. And, indeed, the water cycle – the processes of precipitation, evaporation, freezing, melting, and condensation that circulate water from clouds to land to the ocean and back – is inextricably linked to the energy exchanges among the land, ocean, and atmosphere that determine Earth’s climate. Just as the accumulation of carbon in the atmosphere contributes to climate change, so does the degradation and depletion of water resources. And these processes are mutually

sustainability

reinforcing, with each propelling and intensifying the other. Energy extraction, processing (including refining), and production is highly waterintensive. The energy sector is the largest consumer of water in every developed country except Australia, where, like in most developing countries, agriculture comes out on top. In the European Union, electricitygenerating plants alone account for 44% of all freshwater consumed each year; in the United States, that figure is 41%. The more stressed water resources become, the more energy the water sector demands, as groundwater must be pumped from greater depths, and surface water must be transported across longer distances. In India, for example, energy now comprises about 90% of the cost of groundwater.

production over the next quartercentury. The only way to break this cycle – and thus to mitigate climate change effectively – is to manage the nexus between water and energy (as well as food, production of which depends on water and energy). In other words, countries must make energy choices that are not only less carbon-intensive, but also less water-intensive. With global water supplies already strained, the shift to a water-smart approach to energy could not be more urgent. Two-thirds of the world’s people – especially in

as thEsE proCEssEs fuEl CliMatE Variability, thEy rEduCE WatEr aVailability and boost EnErgy dEMand EVEn furthEr, produCing a ViCious CyClE that Will bE hard to brEaK. In fact,

Central and South Asia, the Middle East, and North Africa – confront serious water shortages. Asia – the biggest driver of increased global energy demand – is also the world’s driest continent, measured by water availability per capita. In these water-stressed regions, shortages have already begun to constrain the expansion of energy infrastructure. One important reason why China has failed to develop its shale hydrocarbon industry is inadequate water in

meeting higher electricity demand and achieving national targets for production of biofuels and other alternative fuels would require a more than twofold increase in global water use for energy

the areas where its deposits are located. (To extract energy from shale, millions of gallons of water must be shot into it.) Increasing water stress has also driven up costs for existing powergeneration projects, possibly jeopardizing their viability. Australia’s Millennium drought, which lasted from the late 1990s until 2012, undermined energy production, causing prices to rise. With energy shortages usually most severe in water-stressed areas, what are affected countries to do? For starters, they must recognize that energy that is “clean” in terms

prioritiEs in sustainability

…COUNTRIES MUST MAKE ENERGY CHOICES THAT ARE NOT ONLY LESS CARBON-INTENSIVE, BUT ALSO LESS WATER-INTENSIVE. of carbon can be “dirty” from a water-resource perspective. For example, “clean” coal involving carbon capture and sequestration ranks, along with nuclear power, at the top of the water-intensity chart. Some renewables, such as solar thermal power and geothermal energy, are also notoriously water-intensive. By contrast, solar photovoltaic and wind power – two renewable technologies gaining traction globally – require no water

July / September 2018 - World Excellence International Edition 41

sustainability

for their normal operations. Encouraging the development of such sources should thus be a high priority. But the type of energy that is used is not the only issue. It is also important to select the right types of plants at the planning stage. Alternative cooling technologies for power generation, including dry or hybrid cooling, can reduce water consumption (though the use of such technologies currently is constrained by efficiency losses and higher costs).

poWEr plants should also bE loCatEd in plaCEs WhErE thEy Will rEly not on frEshWatEr rEsourCEs, but instead on saline, brackish, degraded, or reclaimed water. In Asia, which now leads the world in terms of

adding nuclear power capacity, most new plants are located along coastlines, so that these thirsty facilities can draw more on seawater.

yEt hErE, too, thErE arE sErious risKs.

Rising sea levels, as a result of climate change, could pose a much more potent threat than natural disasters, such as the tsunami that caused the 2011 Fukushima catastrophe in Japan. Moreover, with coastal areas often densely populated and economically valuable, finding suitable seaside sites for new nuclear plants is no longer easy. Despite having more than 4,500 miles (7,200 kilometers) of coastline, India has struggled to implement its planned expansion

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of nuclear power through seaside plants, owing to strong grassroots opposition. True energy security is possible only in the context of resource, climate, and environmental sustainability. The global focus solely on carbon reduction not only obscures these critical linkages, but also encourages measures that adversely impact resource stability. It is time to adopt a more comprehensive, integrated, and long-term approach to the management and planning of energy, water, and other resources, with a view toward broader environmental protection. Otherwise, we will fail to meet the sustainabledevelopment challenges we face, with devastating consequences, beginning with the worldâ&#x20AC;&#x2122;s most water-stressed regions.WEiE

ECONOMICS

EConoMiC initiatiVEs in sub-saharan liCs

THE DEBT CHALLENGE TO AFRICAN GROWTH From increases in life expectancy to steep declines in infant mortality, many of Sub-Saharan Africa’s development indicators are heading in the right direction. But with public-debt levels increasing, fiscal reforms are needed to ensure that the region’s progress isn’t stifled by interest payments. abebe aemro selassie

ashington

Sub-Saharan Africa is confronting a pronounced rise in public debt. At the end of 2017, average public debt in the region was 57% of its GDP, an increase of 20 percentage points in just ﬁve years. While this is well below the peaks of the early 2000s, the current spike is concerning. Government borrowing to ﬁnance public investments is an essential part of any country’s macroeconomic toolkit. Over the last two decades, countries in Sub-Saharan Africa have used this option often, greatly improving human development outcomes as a result. For example, between 1990 and 2015, average life expectancy increased, infant mortality rates were halved, secondary school enrollment soared, and infrastructure

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gaps narrowed. These and other gains would have been impossible without pragmatic spending of borrowed resources. But this progress could be jeopardized if current debt trends in some countries continue. Africa’s increasing public-debt burden means higher interest costs, which divert resources from education, health care, and infrastructure. Therefore, government debt must be reined in. According to our most recent Regional Economic Outlook for Sub-Saharan Africa, six of the region’s 35 low-income countries (LICs) are in “debt distress,” meaning they are unable to service external commitments. A further nine LICs are classiﬁed as being at “high risk of debt distress.” In the broadest sense, three factors account for the current

debt challenges. For starters, the region’s commodity exporters, and particularly its oil exporters, were hit hard by the 2014-2016 slump in prices. Africa’s lost output and associated debt increases are comparable to the experience of advanced economies following the global ﬁnancial crisis.

today, Eight of thE rEgion’s fiftEEn dEbttroublEd liCs arE CoMModity EXportErs.

Additionally, most countries that have funded development and infrastructure through borrowing have failed to generate sufﬁcient additional tax revenues to repay that debt. In many cases, countries have not been effective at capturing the return on their investments through their tax systems.

Finally, in many Sub-Saharan countries, portions of the debt build-up can be traced to shocks in the migration of liabilities – such as losses by state-owned enterprises – to the public-sector balance sheet and exchange-rate depreciations. In a handful of countries, poor governance can also be blamed for unsustainable debt practices. As we have been saying for some time, if governments stick to their medium-term ﬁscal-consolidation and reform plans, debt levels should stabilize or decrease, alleviating debt-related challenges. However, the required adjustments have been delayed repeatedly, owing to political constraints, social pressure for much-needed development spending, and favorable external ﬁnancing conditions. This is a recipe for long-term pain; there is no scope to delay the adjustment any longer. As countries work to meet their development goals, it is essential that they move debt sustainability to the top of the policy agenda. But how?

for this to happEn, four KEy arEas Will nEEd spECial attEntion, dEpEnding on Country First, CirCuMstanCEs.

in resource-intensive countries, especially the region’s eight oil exporters, fiscal consolidation plans must be enacted without delay. This should be coupled with economic diversification, for which the recent recovery in commodity prices provides wider scope. In much of the rest of the region, the required fiscal adjustment is more modest and can be achieved through steady increases in tax revenues. In most cases, there is potential to raise revenue by 3-5 percentage points of GDP over the next few years. Reaching this level will require broadening the tax base, streamlining exemptions, and strengthening the administration of value-added tax.

third, Efforts should bE MadE to aCCount for off-balanCE-shEEt

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ECONOMICS

risKs, iMproVE dEbtManagEMEnt CapaCity, and EnhanCE data CoVEragE of dEbt and dEbt EXposurE.

And, fourth, governments must improve prospects for private investment. For decades, public expenditures offset low levels of private investment. But, faced with growing public-debt vulnerabilities, it is unclear how long this trend can continue. Sub-Saharan Africa’s economies should orchestrate a transition from public to private investment by strengthening regulatory and insolvency frameworks, increasing intraAfrican trade, and deepening access to credit. Sub-Saharan Africa’s public-debt burden has not yet hindered investment demand. On the contrary, as a measure of GDP, foreign financial flows to Africa are higher than those to emerging markets, and they come from a broader range of sources. So-called frontier economies have issued record levels of sovereign bonds, while bilateral creditors, like China, continue to invest heavily. But, as we have seen recently, capital flows are fickle, and if Sub-Saharan Africa is to take full advantage of the current global economic upswing, policymakers must tackle publicdebt vulnerabilities head-on while they can. Doing nothing will only constrain the region’s tremendous potential to achieve sustainable and inclusive growth. WEiE

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ECONOMICS

World labour sECurity

HOW TO PROTECT WORKERS WITHOUT TRADE TARIFFS Donald Trump’s trade war is an international tragedy. But it could have a happy ending if it eventually reminds us of the risks that free trade imposes on people, and if we improve our insurance mechanisms to help them. robert J. shiller

EW haVEn - According to a

Washington Post/Schar School poll of Americans published on July 11, only 39% of respondents approved of US President Donald Trump’s imposition of tariffs on foreign countries, while 56% were opposed. But, while it’s good news that a majority of Americans oppose their president on this key issue, Trump is plunging ahead, apparently thinking the public will like the tariffs better when they are in place. It is a puzzle why even 39% support these policies. Ever since the Great Depression and World War II, and the 1947 General Agreement on Tariffs and Trade, the United States – both its

government and its people – has been squarely in support of free trade. In his 1776 book The Wealth of Nations, Adam Smith provided an eloquent and convincing argument for free trade, instead of trade distorted by tariffs. With free trade, the economy prospers because goods and services are sourced from the countries that are most productive in creating them. Smith’s book was much talked about from the beginning, and the evidence supports its argument. Economists Jeffrey Frankel and David Romer have conﬁrmed that individual countries that have freer trade have higher economic growth, and that this is not just reverse

48 World Excellence International Edition - July / September 2018

causality from growth to freer trade. So, why are we seeing so much public support for a US-initiated trade war now?

it Must stEM froM thE Job insECurity soMEtiMEs iMposEd by frEE tradE,

and the sense of injustice that arises when one is among the losers. Most people do not want charity. Voters in the United States responded well to “Make America Great Again.” They did not respond well to former President Barack Obama’s “spread the wealth around.” Political scientist John Ruggie made the

case in 1982 that post-World War II multilateralism and free trade was the result of a “compromise of embedded liberalism.”

a MultilatEral systEM and loW tariffs Could bE politiCally ViablE only if goVErnMEnt intErVEnEd to stabiliZE CitiZEns’ EConoMiC liVEs.

The economist Dani Rodrik has provided further evidence supporting Ruggie’s point. Using data from 125 countries and controlling for other factors, Rodrik found a positive correlation between countries’ economic openness and the share of government expenditure in their GDP; that is, more open economies spend more money relative to their size for goods and services for their citizens. High-trade countries are not smallgovernment countries: it is just the opposite. The total value of government consumption is much more important than the temporary unemployment insurance offered by many countries, or programs such as Trade Adjustment Assistance in the US. Trade Adjustment Assistance allows people who can demonstrate that their jobs were lost to foreigners because of free trade to receive temporary compensation while they ﬁnd a new job. Obama wanted to see such assistance, which began with the Trade Expansion Act of 1962, expanded further, by creating wage insurance. But even this modest proposal was not enacted.

inCoME sECurity is not an optional

WE NEED TO FIND A WAY TO INSURE PEOPLE AGAINST THE RISKS OF THE GLOBAL MARKET WITHOUT IN ANY WAY DEMEANING THEM.. In my 2003 book The New Financial Order, I argued in favor of privately issued “livelihood insurance,” which protects against long-term loss of income and sets premiums on the basis of occupation and training. But while such programs could encourage occupational risk-taking and economic growth, they are not being implemented. One reason why it has been so difﬁcult to apply the principle of insurance to trade risks is that if the government offers the coverage against risks to livelihoods from free trade, it just looks like redistribution. This is especially so because the risks of maintaining free trade with low tariffs may be long-term. Losing one’s job in the US steel industry as mills shut down in the face of foreign competition may look awfully permanent.

but it is hard to iMaginE goVErnMEnts subsidiZing displaCEd WorKErs for dECadEs.

The problem today is that, with increased globalization an apparently permanent new condition, and with inequality within countries widening, people tend to feel that their long-term economic situation is getting riskier. We need to ﬁnd a way to insure people

against the risks of the global market without in any way demeaning them. Fortunately, there is abundant precedent for in-kind government redistribution that does not seem like charity for society’s losers. When the government spends tax money on universal public education and health care, it does not strike many as redistribution, because the services are offered to everyone, and accepting them appears more patriotic than abject. As long as most people use the government schools and doctors, redistribution does not look like charity. Another solution is to have the government encourage private livelihood insurance by subsidizing it to help cover the cost of jobs lost because of foreign trade. Private insurance companies, competing against each other and subject to appropriate regulations, may show much more entrepreneurial creativity in successfully managing the risks that free trade imposes on individuals. Trump’s trade war is an international tragedy. But it could have a happy ending if it eventually reminds us of the risks that free trade imposes on people, and if we improve our insurance mechanisms to help them. WEiE

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ECONOMICS

EXpECtations for groWth hingE on politiCal rElations

THE GLOBAL ECONOMY’S UNCERTAIN FUTURE

At this time last year, the global economy was experiencing strong, widespread growth, with even the long-stagnant European Union staging a robust recovery. But with key indicators of trade and investment now weakening, a new crisis – not least a global trade war – could quickly bring the global upturn to a halt. Jim o’neill

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ECONOMICS

ondon - At the start of 2018, most of the world economy was experiencing a synchronized cyclical recovery that seemed to herald a longer period of sustainable growth and an end to the decade-long hangover from the 2008 slump. Despite the shock of Brexit, storm clouds over the Middle East and Korean Peninsula, and US President Donald Trump’s unpredictable behavior, rising investment and wages, alongside falling rates of unemployment, appeared to be in the ofﬁng. Yet, as I warned in January, “the global mood [had] shifted from fear about political risks to obliviousness, even though many such risks still loom large.” Moreover, while my preferred global indicators were all looking up, I worried about whether that would continue after the ﬁrst half of 2018, given foreseeable complications such as monetarypolicy tightening across advanced economies, especially in the United States. Lo and behold, we are now halfway through 2018, and some of those same indicators are no longer looking quite so rosy. While the US Institute for Supply Management’s June Purchasing Managers’ Index (PMI) remains very strong, other comparable surveys around the world are not nearly as robust as they were six months ago. Most important, business activity has slowed in both China and Europe.

anothEr KEy indiCator is south KorEa’s tradE data, WhiCh is publishEd Monthly and bEforE that of any othEr Country. On

July 1, we learned that South Korean exports had fallen year-on-year in June 2018. Whereas 2017 was a record-setting year for the country’s nominal export strength, 2018 has ushered in several months of decelerating performance. Ironically, this slump coincides with improved relations with North Korea, while the strong performance last year occurred in spite of nuclear brinkmanship on the Korean Peninsula. The weakening of South Korean exports calls for careful followup analysis, both of other major

result of tariffs. We do not yet have a full regional breakdown of export performance. But from the data that are available for the ﬁrst 20 days of June, we can see that South Korean exports to the US and China were actually rather strong; the weakness was in exports to Association of Southeast Asian Nations countries and the Middle East. If this remains the case, there is less reason to worry that the strong global-trade performance over the past 12-18 months is being thrown into reverse. After all, we are in a decade in which the world economy is dominated by activity in the US and China. According to my calculations, 85% of the growth of nominal GDP worldwide since 2010 is due to

thE World’s EConoMiC duopoly

...THE SUSTAINABILITY OF GLOBAL GROWTH DEPENDS LARGELY ON THE US AND CHINA. economies’ trade data and of South Korea’s July data, when it is published on August 1. Given the worrying escalation of Trump’s import tariffs and the retaliatory measures being pursued by China, the European Union, and others, one should not be surprised if the weakening of global trade persists. That said, one also should not assume that falling trade numbers are a direct

these two countries, with the US accounting for 35% and China accounting for 50%.

so, as long as China and thE us arE doing finE, thE global EConoMy Can bE EXpECtEd to sustain annual output groWth of around 3.4 pErCEnt. As for the rest of the world,

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ECONOMICS

economic indicators from this time last year through early 2018 seemed to suggest that many previously weak performers were ﬁnally on the mend. In nominal dollar terms, Brazil, the EU, Japan, and Russia all experienced slight declines since 2010, but showed signs of improvement in 2017. For example, at this time last year, the EU looked as though it was on the cusp of a robust, widespread cyclical recovery. But that no longer seems to be the case. Key economies such as France and Germany have experienced a slowdown, perhaps owing to fears of a global trade war. And, of course, the plodding

Brexit negotiations, Italy’s new anti-establishment government, and an intra-EU political crisis over immigration have all created more economic uncertainty. The immigration crisis, in particular, could have severe consequences both for German Chancellor Angela Merkel’s government and for EU cohesion. To be sure, Europe’s economic softening could prove temporary, and PMIs for eurozone countries did strengthen somewhat in June, following a couple of months of marked decline. But it would be foolhardy to rule out the worst.

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still, as WE haVE sEEn, thE sustainability of global groWth dEpEnds largEly on thE us and China.

Obviously, if these two economic giants are going to start trading blows with tit-for-tat tariffs, both will lose – and so will the world economy. For the US, where consumption accounts for around 70% of GDP, positive international trade and a stable, friendly investment climate are essential for sustainable growth. One hopes that someone close to Trump can turn him around before his policies derail the world’s longawaited recovery. WEiE

Unilever

Banca Generali

RAI

Cucinelli

Segafredo

Vodafone

LE FONTI AWARDS

UPCOMING

Awards Ceremonies and Gala Dinners LONDON Le Fonti CEO Summit & Awards October 26th, 2018

MILAN Le Fonti CEO Summit & Awards November 8th, 2018 | November 22nd, 2018 December 5th, 2018

DUBAI Le Fonti CEO Summit & Awards December 13th, 2018

SUBMIT YOUR CANDIDACY Philip Morris

www.lefontiawards.com

Carrefour

business & finance

CurrEnCy fluCtuations

THE OLD ALLURE OF NEW MONEY Practically no one, outside of computer science departments, can explain how cryptocurrencies work, and that mystery creates an aura of exclusivity, gives the new money glamour, and fills devotees with revolutionary zeal. None of this is new, and, as with past monetary innovations, a seemingly compelling story may not be enough. robert J. shiller

EW haVEn - The cryptocurrency revolution, which started with bitcoin in 2009, claims to be inventing new kinds of money. There are now nearly 2,000 cryptocurrencies, and millions of people worldwide are excited by them. What accounts for this enthusiasm, which so far remains undampened by warnings that the revolution is a sham? One must bear in mind that attempts to reinvent money have a long history. As the sociologist Viviana Zelizer points out in her book The Social Meaning of Money: “Despite the

commonsense idea that ‘a dollar is a dollar is a dollar,’ everywhere we look people are constantly creating different kinds of money.” Many of these innovations generate real excitement, at least for a while.

as thE MEdiuM of EXChangE throughout thE World, MonEy, in its Various EMbodiMEnts, is riCh in MystiQuE. We tend

to measure people’s value by it. It sums things up like nothing else. And yet it may consist of nothing more than pieces of paper that just go round and round in circles

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of spending. So, its value depends on belief and trust in those pieces of paper. One might call it faith. Establishing a new kind of money may be seen as a community’s avowal of faith in an idea, and an effort to inspire its realization. In his book Euro Tragedy: A Drama in Nine Acts, the economist Ashoka Mody argues that the true public justification for creating the European currency in 1992 was a kind of “groupthink,” a faith “embedded in people’s psyches” that “the mere existence of a single currency…would create the impetus for countries to come together in closer political embrace.” New ideas for money seem to go with the territory of revolution, accompanied by a compelling, easily understood narrative. In 1827, Josiah Warner opened the “Cincinnati Time Store” that sold merchandise in units of hours of work, relying on “labor notes,” which resembled paper money. The new money was seen as a

business & finance

testament to the importance of working people, until he closed the store in 1830. Two years later, Robert Owen, sometimes described as the father of socialism, attempted to establish in London the National Equitable Labour Exchange, relying on labor notes, or “time money,” as currency. Here, too, using time instead of gold or silver as a standard of value enforced the notion of the primacy of labor. But, like Warner’s time store, Owen’s experiment failed. Likewise, Karl Marx and Friedrich Engels proposed that the central Communist premise – “Abolition of private property” – would be accompanied by a “Communistic abolition of buying and selling.” Eliminating money, however, was impossible to do, and no Communist state ever did so. Instead, as the British Museum’s recent exhibit, “The Currency of Communism,” showed, they issued paper money with vivid symbols of the working class on it.

thEy had to do soMEthing diffErEnt With MonEy.

During the Great Depression of the 1930s, a radical movement, called Technocracy, associated with Columbia University, proposed to replace the goldbacked dollar with a measure of energy, the erg. In their book The A B C of Technocracy, published

under the pseudonym Frank Arkright, they advanced the idea that putting the economy “on an energy basis” would overcome the unemployment problem. The Technocracy fad proved to be short-lived, though, after top scientists debunked the idea’s technical pretensions. But the effort to dress up a half-baked idea in advanced science didn’t stop there. Parallel with Technocracy, in 1932 the economist John Pease Norton, addressing the Econometric Society, proposed a dollar backed not by gold but by electricity. But while Norton’s electric dollar received substantial attention, he had no good reason for choosing electricity over other commodities to back the dollar. At a time when most households in advanced countries had only recently been electrified, and electric devices from radios to refrigerators had entered homes, electricity evoked images of the most glamorous high science. But, like Technocracy, the attempt to co-opt science backfired. Syndicated columnist Harry I. Phillips in 1933 saw in the electric dollar only fodder for comedy. “But it would be good fun getting an income tax blank and sending the government 300 volts,” he noted. Now we have something new again: bitcoin and other cryptocurrencies, which have

spawned the initial coin offering (ICO). Issuers claim that ICOs are exempt from securities regulation, because they do not involve conventional money or confer ownership of profits. Investing in an ICO is thought of as an entirely new inspiration. Each of these monetary innovations has been coupled with a unique technological story. But, more fundamentally, all are connected with a deep yearning for some kind of revolution in society. The cryptocurrencies are a statement of faith in a new community of entrepreneurial cosmopolitans who hold themselves above national governments, which are viewed as the drivers of a long train of inequality and war.

and, as in thE past, thE publiC’s fasCination With CryptoCurrEnCiEs is tiEd to a sort of MystEry, like the mystery

of the value of money itself, consisting in the new money’s connection to advanced science. Practically no one, outside of computer science departments, can explain how cryptocurrencies work. That mystery creates an aura of exclusivity, gives the new money glamour, and fills devotees with revolutionary zeal. None of this is new, and, as with past monetary innovations, a compelling story may not be enough. WEiE

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business & finance

thE Eu and grEEK publiC dEbt

profilEs in EuropEan dEnial An impartial observer of the Meseberg Summit between Angela Merkel and Emmanuel Macron would conclude that the eurozone remains as macroeconomically unsustainable as it was five years ago. And yet Europeâ&#x20AC;&#x2122;s establishment, oblivious to the Nationalist International preparing to devour the EU, is serving it appetizers. yanis Varoufakis

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business & finance

thEns

- Europe’s establishment is luxuriating in two recent announcements that would have been momentous even if they were only partly accurate: The end of Greece’s debt crisis, and a Franco-German accord to redesign the eurozone. Unfortunately, both reports offer fresh proof of the European Union establishment’s remarkable talent for never missing an opportunity to miss an opportunity.

thE tWo announCEMEnts did not CoME in thE saME WEEK by aCCidEnt. The Greek

debt implosion, back in 2010, was the ugly symptom of the eurozone’s design ﬂaws, which is why it triggered a domino effect across the continent. Greece’s continuing insolvency reﬂects the deep disagreements within the Franco-German axis concerning eurozone redesign. While three French presidents and the same German chancellor were failing to agree on the institutional changes that would render the eurozone sustainable, Greece was asked to bleed quietly. In 2015, the Greeks staged a rebellion, which Europe’s establishment ruthlessly crushed. Neither Brexit nor the EU’s steady de-legitimation in the eyes of European voters managed to convince the establishment to change its ways. French President Emmanuel Macron’s election seemed the last hope for the new Berlin-Paris accord needed to prevent a suffocating Italy from triggering the next – this time lethal –

domino effect. Under Macron, new, hopeful ideas were proposed: a common budget for the eurozone; a new safe debt instrument and quasi-federal tax-raising capacities; a common unemployment insurance fund; common bank deposit insurance and a common pot from which to recapitalize failing banks (thus providing the missing foundation of a real banking union). Moreover, a new investment fund would mobilize idle savings across Europe, without adding to the fiscal stress of member-states. And Macron’s government also seemed to adopt a proposal I made in 2015, when I was Greece’s finance minister, for restructuring public debt via GDPindexing. That way, the size of Greece’s total public debt (and the speed of its repayment) would be linked to the size and growth rate of Greece’s nominal income. A year later, with Italy on a collision course with the EU, the Meseberg Summit between German Chancellor Angela Merkel and Macron delivered an agreement on eurozone reform. A few days later, the Eurogroup of eurozone finance ministers delivered its own “solution” to the Greek debt crisis. In a decent universe, these two announcements would herald the end of a lost decade for Europe and the beginning of an era of rebuilding so that Europeans may face, together, the challenges posed by US President Donald Trump and the next economic downturn. Alas, that is not the universe we inhabit.

July / September 2018 - World Excellence International Edition 59

business & finance

Even before the Meseberg Summit, Macron had diluted his proposals to the point of surrender. The common bank deposit insurance scheme and the recapitalization fund were pushed into an implausible future in which the eurozone periphery’s banks have to shed their bad loans before a proper banking union is forged. The common unemployment insurance scheme was not even discussed. Last but not least, a common debt instrument to underpin a eurozone budget amounting to 2-3% of eurozone aggregate income – the main prerequisite for a macroeconomically significant fiscal union – was unceremoniously consigned to the dustbin. Naturally, Merkel offered just enough to allow Macron to disguise his humiliation as a personal triumph. In front of an ecstatic press corps, they hailed the decision to create a eurozone budget in name, when in reality it is nothing more than a credit line from the European Stability Mechanism (ESM, the bailout fund that gave Greece its loans in 2015). They also agreed to an insubstantial “rainy day” fund, to be financed by member states and a fictional financial transactions and digital economy tax – a “compromise” that costs Merkel nothing, given that countries like the Netherlands and Ireland are likely to torpedo it.

As for bank recapitalization, Macron and Merkel touted an ESM-funded scheme. But with all ESM decisions subject to German parliamentary approval, the German Bundestag would have veto power over the recapitalization of, say, an Italian bank. Italy’s new government is unlikely to buy into this. When bankers try to cover up bad loans on their books, they extend new loans to enable their insolvent borrowers to pretend to be servicing the original loan.

WhEn thE nEW loan is EXhaustEd, thE CliEnt is alloWEd to suspEnd rEpayMEnt for a fEW yEars, With intErEst aCCuMulating. This keeps the

net present value of their asset (the loan) constant while postponing the day of reckoning (when they have to confess to their regulator that the loan is unrecoverable). Since 2010, Greece’s creditors have been practicing this extend-andpretend strategy as though they were training for an Olympic event.

instEad of a CouragEous and thErapEutiC hairCut, or thE ModEratE gdpthe indEXing solution,

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Eurogroup’s recent decision, proclaimed as the “end of the Greek debt crisis” boiled down to the apotheosis of this cynical practice. Technically speaking, the central pillar of the new debt agreement is a decadelong postponement of payments totaling €96.6 billion ($112.5 billion) that were due to begin in 2023. The Greek state has thus been offered easy repayments until 2033 in exchange for continuing harsh austerity ad inﬁnitum (a primary budget surplus target of 3.5% of national income until 2022, and 2.2% during 2023-2060); impossible annual debt repayments from 2033 to 2060 (around 60% of the state’s tax revenues); and a debt-to-national income ratio above 230% by 2060 if the next global recession puts the plan’s over-ambitious growth targets out of reach, as it surely will. Any objective assessment of the Eurogroup’s recent deal on Greek public debt would conclude that it condemns Greece to permanent debt bondage. And an impartial observer of the Merkel-Macron Meseberg Summit would conclude that the eurozone remains as macroeconomically unsustainable as it was ﬁve years ago. And yet Europe’s establishment, oblivious to the Nationalist International preparing to devour the EU, is serving it appetizers. WEiE

INNOVATION & TEChNOLOGY

EthiCs and digitiliZation

ENGINEERING A MORE RESPONSIBLE DIGITAL FUTURE Economic revolutions often bring profound social change, affecting everything from jobs to family size. With the digital revolution now in full swing, humanity must recommit to building more ethical machines, or face a future in which our technologies undermine basic values like human rights and civil liberties. dirk helbing

uriCh - The world is being battered by technological disruption, as innovations such as big data analytics, artiďŹ cial intelligence (AI), robotics, the Internet of Things, blockchain, 3D printing, and virtual reality change how societies and economies work. Individually, each of these technologies has the potential to transform established products, services, and associated

support networks. Taken together, they will upend old business models and institutions, heralding a new era of economic, social, and political history. How will we respond? Major economic transformations typically produce far-reaching change. During the ďŹ rst Industrial Revolution, in the eighteenth and nineteenth centuries, new manufacturing processes eventually led to huge improvements

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in human wellbeing. As productivity increased, salaries and living standards rose.

but, Early in thE proCEss, MEChaniZation brought nEgatiVE ConsEQuEnCEs, liKE unEMployMEnt, Child labor, and EnVironMEntal dEgradation.

The social and political impact of the

INNOVATION & TEChNOLOGY

digital revolution could be even more dramatic. Wars and revolutions may erupt, and values like human rights and civil liberties could be undermined. As my colleagues and I noted in a recent article in Scientiﬁc American, the more computers know about us, “the less likely our choices are to be free and not predetermined by others” – as long as informational self-determination is impossible.

fortunatEly, thE loss of indiVidual autonoMy is not inEVitablE. It is possible to

engineer a more responsible digital future. But we must start doing so immediately. Success requires public discourse, digital enlightenment and emancipation, and broader awareness of technology’s risks. In other words, the transition we are facing is bigger than any one country or organization can manage alone. We all have something at stake: our future. There are obvious dangers in letting technological progress alone drive this change. In 2008, Wired editor Chris Anderson suggested that big data would eventually reveal all truth, without requiring science or theory. Clearly, that hasn’t happened. With more data at their disposal, scientists ﬁnd more patterns to study; it takes science to judge which are meaningful and which are misleading. The expectation that AI would overcome human weaknesses such as bias has also fallen short. Today, many AI systems discriminate against people, and can even be manipulated.

Other predictions of the new “digital society” were equally off-base. Socalled smart cities – in which urban life is automated – have so far failed to live up to expectations. That’s because cities are not simply giant supply chains; they are also spaces for experimentation, creativity, innovation, learning, and interaction. Finally, while the “platform economy,” and its reliance on the Internet, computation, and data, has given rise to some of the most valuable companies in the world, it has also turned many citizens into passive consumers. The irony of hyperconnectivity is that people are less discerning not only about the products they buy, but also with the information they consume. It is, after all, this “attention economy” that spawned “fake news.”

siMply put, our digital utopia Will not arriVE unaidEd. We need a more ethical

approach to engineering technology, one that integrates constitutional, cultural, and moral norms and values into artiﬁcial and autonomous systems. An “ethically aligned,” “value-sensitive” design approach is needed in every aspect of technological development – from smart devices to the software that supports our governments and markets. For example, if democracy is to remain a viable political model, the information systems that democratic governments use must be designed to support human rights, dignity, self-determination,

pluralism, division of responsibility, transparency, fairness, and justice. To achieve this democratic digital future, the world needs to change how it thinks about technology. We need to build open, participatory information ecosystems that empower anyone in the global economy to contribute ideas, talent, and resources. In a networked world, where everything we do affects others, we must learn to think beyond ourselves, and pursue cooperation, cocreation, co-evolution, and collective intelligence. If we progress accordingly, the Fourth Industrial Revolution can be more inclusive than the ﬁrst; that is the future that my colleagues and I are working toward. For example, at Delft University of Technology in the Netherlands, we are engineering socially responsible communication networks and urban governance systems, while the FuturICT initiative, an international network of researchers, is applying a multidisciplinary approach to technology development. The goal of both research efforts is to facilitate a more equitable digital future.

WE haVE thE ability to EnginEEr tEChnology that sErVEs us, rathEr than EnslaVEs us. But building that

future demands a new digital zeitgeist, whereby social, cultural, environmental, and ethical values become part of the design process. Innovations and revolutions are often upsetting and tumultuous, but in the digital age, they can also be responsible. WEiE

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INNOVATION & TEChNOLOGY

tEChnology training and thE labour MarKEt

THE COGNITIVE M LIMITS OF LIFELONG LEARNING

- As new technologies continue to upend industries and take over tasks once performed by humans, workers worldwide fear for their futures. But what will really prevent humans from competing effectively in the labor market is not the robots themselves, but rather our own minds, with all their psychological biases and cognitive limitations. In today’s fast-changing labor market, the most in-demand occupations– such as data scientists, app developers, or cloud computing

To succeed in today’s fast-changing labor market, workers are expected to be agile lifelong learners, comfortable with continuous adaptation, and willing to move across industries. But addressing skills obsolescence requires overcoming high psychological and intellectual barriers. Edoardo Campanella

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ilan

INNOVATION & TEChNOLOGY

specialists – did not even exist ﬁve or ten years ago. It is estimated that 65% of children entering primary school today will end up in jobs that do not yet exist. Succeeding in such a labor market requires workers to be agile lifelong learners, comfortable with continuous adaptation and willing to move across industries. If one profession becomes obsolete – a change that can happen virtually overnight – workers need to be able to shift nimbly into another. Lifelong learning is supposed to provide the intellectual ﬂexibility and professional adaptability needed to seize opportunities in new and dynamic sectors as they emerge, as well as the resilience to handle shocks in declining industries. Training centers, the logic goes, simply need to identify the competencies that companies will look for in the future and design courses accordingly.

yEt, in thE EuroZonE, only about 10% of thE labor forCE undErtooK soME typE of forMal or inforMal training in 2017, and thE sharE dEClinEd sharply With agE.

If lifelong learning is the key to competing in the labor market, why are people so reluctant to pursue it? The truth is that reversing the process of skills obsolescence requires overcoming psychological and intellectual barriers that are

too often ignored. According to behavioral economics, human beings are biased toward the status quo: we overestimate the potential losses of

memory, abstract reasoning, and the processing of novel knowledge – beginning to decline around age 20. After middle age, these

WorKEr adaptability and rEsiliEnCy

SUCCEEDING IN SUCH A LABOR MARKET REQUIRES WORKERS TO BE AGILE LIFELONG LEARNERS, COMFORTABLE WITH CONTINUOUS ADAPTATION AND WILLING TO MOVE ACROSS INDUSTRIES. a deviation from our baseline, and underestimate the potential benefits. Lifelong learning is viewed as extremely costly in terms of time, money, and effort, and the returns are regarded as highly uncertain, especially amid technological disruption. Such views may be reinforced by the feelings of depression and hopelessness that often arise when workers lose their jobs or face career crossroads. If the need to “start over” after years in a certain job or field is demoralizing, after decades it can seem like an insurmountable challenge. And, in fact, embarking on such a change late in life runs against our natural patterns of development. Human beings experience a decline in cognitive performance relatively early in life, with fluid intellectual abilities – associated with working

abilities deteriorate substantially, making the acquisition of new skills increasingly challenging. Only our crystalized cognitive abilities, related to communication and management skills, improve later in life.

this rEflECts CEnturiEs of EVolution. In almost

any society, age is associated with wisdom, experience, and growing social status. Youth was the time for learning the fundamentals of the profession that one would practice throughout adulthood. Once in that job, a worker would reﬁne their skills as they gained experience, but they would probably not have to learn new competencies from scratch. Today’s training programs are ineffective partly because they usually target ﬂuid intellectual abilities. For companies, the conclusion seems to be that retraining a workforce

July / September 2018 - World Excellence International Edition 65

is too challenging, so when new skills are needed, it is better to pursue alternatives like automation, offshoring, and crowdsourcing. In its 2015 Economic Report of the President, the US Council of Economic Advisers found that the share of US workers receiving either paid-for or on-the-job training fell steadily from 1996 to 2008. The assumption that workers, regardless of their age and educational background, will independently do what it takes to keep up with technological change is a fallacy that risks creating an army of unemployed. Such an approach can be expected only of the most highly educated and qualiﬁed workers – those whose jobs are usually not even at risk from automation.

this May ChangE in thE futurE, bECausE youngEr gEnErations arE groWing up With thE EXpECtation of lifElong lEarning.

But, in the meantime, policymakers should take steps to mitigate the complicated mental processes at the root of many people’s professional inertia. For starters, counselors could help to guide workers through the tumultuous process of skillsacquisition and job-hunting. For individuals, securing the help of a counselor would require overcoming feelings of despondency or shame about needing help at all. Moreover, workers may get caught up in what psychologists call the “illusion of control” – our tendency to overestimate our ability to shape events without external support. If, however, counseling services become the norm, workers are far more likely to take advantage of them. To this end, trade unions and business associations should establish formal mentoring programs to advise workers on how to progress in their careers or in a transition to a new sector. Employers, for their part, should establish formal feedback processes,

66 World Excellence International Edition - July / September 2018

not just to evaluate the performance of their employees, but also to assess what skills need to be updated or can realistically be acquired. In addition, companies should be granted generous tax incentives to boost investment in training programs. Reﬂecting the reality of adults’ cognitive abilities, such programs should aim to transfer new knowledge gradually, while leveraging crystalized intellectual skills. More experienced workers might be less prone to learning altogether new skills than their younger colleagues, but they may excel in other valuable areas, such as problem-solving, selfmanagement, and self-motivation.

as WE dEVElop robots With inCrEasingly huManliKE CapabilitiEs, WE should taKE a ClosEr looK at our oWn. Only by learning to overcome – or at least evade – our cognitive limitations can we have long and fruitful careers in the new global economy. WEiE

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NEW YORK Le Fonti Awards 2018 On July 1st, 2018 the world’s leading corporate stars reunited for the 8th annual Le Fonti Awards Gala and CEO Summit in New York City. Le Fonti Awards are held each year in multiple locations recognizing industry leaders in banking, business, economics, ﬁnance, sustainability, law, healthcare, food, insurance and e-commerce. This year, the New York Gala & CEO Summit was held at the Yale Club of New York City, a luxurious venue located in the heart of downtown Manhattan, hosted by 2 prominent TV emcees, Phil Lempert and Sabrina Buckwalter. The title of the CEO Summit round table was “Understanding the US Grocery Market”, a discussion focusing on the important drivers which are impacting and will impact on the US food industry and beyond in the 21st century.

LE FONTI AWARDS

LE FONTI LEGAL

AWARDS

MPMLEGAL

Loconte & Partners

EXCELLENCE OF THE YEAR INTERNATIONAL LAW ITALY

EXCELLENCE OF THE YEAR WEALTH MANAGEMENT ITALY

MPMLEGAL

Loconte & Partners

For 25 years of excellence in commercial and international legal assistance, whose motto is “Global Expertise, Individual Attention”. Thanks to his leadership and his in-depth editorial, congressional and academic activities, the MpMLegal’s founding partner, Prof. Avv. Mastracci has conﬁrmed himself as a trusted source for legal assistance both in Italy and abroad.

For the ﬁrm’s successful management of international tax issues thanks to their dynamism, competence, and multidisciplinary and personalized approach in the areas of legal, tax and wealth management. With detailed knowledge of national and international regulatory instruments, the ﬁrm’s managing partner, Stefano Loconte has become a reliable business partner.

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LE FONTI FOOD

AWARDS

Esmach

The One Company

Pariani

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LE FONTI AWARDS

EXCELLENCE OF THE YEAR FOODSERVICE EQUIPMENT ITALY

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Esmach

The One Company

For 50 years of commitment towards continuous improvement in the food industry. For the strong focus on innovation and sustainability and for revolutionizing the world of catering and bakeries, successfully bringing excellence to the Made in Italy brand worldwide.

For being a fast-growing Italian excellence and leading exporter of Italian Food products worldwide. For the dynamic business model applied both in Italy and internationally that has allowed the company to become landmark in the industry.

EXCELLENCE OF THE YEAR FOOD ITALY

Pariani For being an Italian excellence which has been recognized throughout the industry as a leader and trendsetter. Using selective ingredients to satisfy the most demanding tastes, Parianiâ&#x20AC;&#x2122;s continuous pursuit of excellence exempliďŹ es the best that Made in Italy has to offer in food innovation and quality.

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Eyewitness News BREAKING NEWS | ECONOMICS | FINANCE DIGITAL INNOVATION AND MORE SOME OF OUR GUESTS:

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July / September 2018 - World Excellence International Edition 73

AWARDING THE BEST IN CLASS Submit your candidacy today for the Le Fonti Awards

e Fonti Awards® is an annual awards ceremony recognizing organizations that demonstrate corporate excellence in the fields of business innovation, leadership, technological achievement and employee engagement. Now in its 8th year, it is recognized as one of the world’s leading ceremonies of business awards and personal honors support services. Each awards ceremony is held in a leading strategic financial center such as Hong Kong, Dubai, London, Singapore, Milan and New York. Moreover, each ceremony includes an exclusive roundtable discussion amongst panelists about topics ranging from leadership, to organizational skills, to business strategy and more. The nomination, selection and announcement under the awards winners section is completely free-ofcharge. LeFonti®’s scientific committee along with a team of legal, economic and financial journalists based in over 120 countries receive nominations in

various awards categories throughout the calendar year for the relevant countries, regions and sectors which are pertinent to the category. They can be written submissions or on-line nomination forms and surveys. Our research team will first examine a nomination for a company or individual candidate to ensure that it meets the award’s specific criteria in the selected category. Then, the judging panel, comprising the research team and editors of our magazines (World Excellence - Italy, Le Fonti LEGAL, Finanza & Diritto, Asset Management, New Insurance and our English language publication, World Excellence - International) will evaluate all suitable nominations received for that awards category, provide verdicts and select a winner. To nominate a company for one of our awards please complete our online nomination form by visiting our website, www.lefontiawards.com or send an email info@lefontiawards.com.

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