Jean-Pierre Rosso on The Global Marketplace
Mr. Rosso has been Chairman of World Economic Forum USA Inc. since April 2006. Mr. Rosso served as Chairman of CNH Global N.V. from November 1999 until his retirement in May 2004; was Chief Executive Officer of CNH Global N.V. from November 1999 to November 2000; and Chief Executive Officer of Case Corporation from April 1994 to November 1999 and Chairman from March 1996 to November 1996. He is also a director of ADC Telecommunications, Inc., Bombardier Inc., and Eurazeo.
Question: Is there enough regulation of global capital?
Jean Pierre Rosso: Yeah, I am against regulations so now yeah, I think that as long as we find a way to control the flow of money that goes that would go to a ill conceived initiatives and obviously you are dealing with terrorism at this point , that is legitimate that we have mechanisms to make sure that we have a way to attract illicit movements our suspicious movements of money so just a delicate balance here but, right and this is being done as we speak, I mean probably more than we know, care to know, but other than that I think to regulate in this business sense of the world I think that again I would be a mistake because I obviously a convinced capitalists not because it is the [inaudible] , not because it is, it doesn’t have any draw backs but frankly we have in [inaudible] in using better so to rise, to raise the level of very one, so the world to progress up to now is through a capitalistic system, and if you could find something better on what we are open to it open to it, but we have not. So and the essecnce of the capitalist system is that , you do not want to regulate [inaudible] you want it certainly you want to do minimum to make sure that this order is preserved and that again no illegal or illicit things have been done.
Question: How is globalization altering the state/market relationship?
Jean Pierre Rosso: Huge change,you know, globalization has in some well known, I would say [inaudible] but well known statements on this you know world is flattend, so just draw I mean to some extent, some extent is to that the globalization has we have move from a national markets to a global market so in all people think to comply any where, every where in the world and they are and this has created a situation where large global company have certainly acquired the power that is very, very significant some of them have the citizenship to deal with this the corporate values used to do with this, some of them may not yet, but they are getting their quickly, because they have realized their responsibility in the world because of their presence and to some extent that has raised the awareness amongst CEOs of large Global companies that global corporate citizen ship is very important and they have to deal with that and they are which is also one of the reasons the forum is successful attracting this interest because that is we talk about that. So that is one thing, the second thing is that countries have sort of lost a fair amount of power in this globalization evolution and because obviously this grows across nations. So this is a change that is interesting to witness and some countries react smartly to this and some not so smartly so but progressively inevitably this is going to go in the right direction because business is getting conscious of their responsibilities and governments are starting to understanding how they can deal with this phenomenon more, more effectively as an opportunity who are in the threat, here is the big difference of course the countries have gone to protection these measures I have tried to contain their industry by artificial means and that is not the solution, the solution is to not to look at this aa a threat but to look at this as an opportunity and those who do are successful.
Question: What does a U.S. recession mean for markets around the world?
Jean Pierre Rosso: At this point I think that we can argue whether we will, or will not and to what extent we have a recession putting a name on the economic slow down is always sort of artificial. here we saw recession is two quarters of negative growth okay so that is arbitrary decision but so be it, if that is the decision I don’t know whether we will have that may be we do, may be we don’t I think it is a immaterial to a large extent we will come out of this and go again. So it is only a temporary situation, now having said this even if we have this the engines of growth in the rest of the world are powerful enough that I don’t think this will trigger world recession at all because the those growing economies are just unbelievable and if take me China grows at 10%, a year or , 9% a year , if they start growing at 6% a year I mean this is still a lot of growth. So I don’t see, I don’t see that as a problem at all.
Question: Is the growing income gap a threat to global markets?
Jean Pierre Rosso: Well, I think the purchasing power of Americans is decreasing and will continue to decrease. I think this is inevitable as a result of this global trend. So the, some of the other countries are raising to that level, coming to that level I think as I said earlier the bigger problem is the income disparity between Africa and the rest of the world I think this is probably the most serious issue on that particular question that in my view we have.
Date Recorded: 03/19/2008
Government should stay out of the way.