Chief executives speaking at the Riyadh Global Competitiveness Forum that opened here Sunday warned that businesses would begin to feel the pinch of the global economic crisis more visibly than expected. The CEOs of both Airbus and Nissan said they expected a sharp decline in sales following months of staggered figures. Airbus chief executive Thomas Enders said world demand for its new aircraft could drop 50 to 60 percent this year and even the usually less sensitive markets of the Gulf were drying up. “We are struggling to get financing for our customers,” said Enders, adding that the European firm Airbus is preparing for a long downturn. Nissan also warned that the global car market could shrink by 14 percent in 2009 following last year's nine-percent drop. Nissan chief executive Carlos Ghosn said the recession will be long and hard for the world. “There is absolutely no question of the fact that you are going to see more consolidation.” Ghosn predicted world auto sales would fall to 55 million vehicles in 2009, a fall of almost 14 percent, compared to 63 million in 2008, a year that was already nine percent down on the 69-million figure of 2007. Earlier this month, Enders warned that the number of deliveries this year would surpass the number of orders for the first time since 2003. Airbus delivered 483 aircraft in 2008, and won 777 net orders valued at $100 billion, the company's website said. Rival US manufacturers Boeing delivered 375 aircraft in 2008 while it received 662 orders. Global sales of large new aircraft was about 1,400 units in 2007. In July, when oil prices reached record prices, Airbus struck deals to sell eco-friendly passenger jets worth $15.2 billion dollars to mainly cash-rich Arab states in the Gulf. The 3rd annual Global Competitiveness Forum (GCF) was opened in Riyadh Sunday evening by Prince Miteb Bin Abdul Aziz, Assistant Deputy Commander of the National Guard, on behalf of King Abdullah, Custodian of the Two Holy Mosques. In his speech, he said government investment programs are focused on basic services and projects, and to enhance capacity. More than $400 billion would go into such investments, including the oil sectors, in the next five years, he said. In recent years, the Kingdom has been boosting its economic competitiveness and investment environment by providing incentives to foreign investors, which include guaranteeing all their rights. GCF President Abdulmohsin Al-Badr said in his speech that the forum aims to raise awareness about competitiveness and the challenges thereof, locally and internationally; discuss topics related to how competitiveness affects progress in businesses, international trade, sustainable development, the environment, and human resources development;, and examine the micro- and macroeconomic issues linked to competitiveness. Around 100 renowned speakers from 33 countries are participating in the three-day panel sessions to discuss the most pressing challenges facing the world. Amr Al-Dabbagh, Governor of Saudi Arabian General Investment Authority (SAGIA), organizer of the event, said in his opening remarks that hosting GCF was a valuable and rewarding part for SAGIA. “Our mission at SAGIA is to transform Saudi Arabia into one of the world's top 10 most competitive economies by 2010 – the 10x10 vision. As such, we have much to learn from and contribute to the world's premier gathering on competitiveness challenges,” he said. The panel discussions held were on “Responsible Competitiveness,” The Energy Evolution,” “Thought for Food,” and “Arts: Painting Crisis in a New Light.” Q&A sessions were held after each panel discussion session. Thorlief Enger, former president and CEO of Yara International, ASA, speaking at the Thought for Food session, said the food crisis has raised awareness about the importance of agriculture, which had been taken for granted over the last 25 years. Africa's potential increase capability was important because African fertilizer use only compares as one-tenth of Asia's, he said. The global economic downturn has impacted the agricultural sector by causing a sharp drop in fertlizer consumption, consequently leading to fewer crops being grown. “This means, food production will go down and therfore, prices should go up as a result,” Enger said. “We are probably at the beginning of a food crisis as a result of the financial crisis.” Mary Robinson, the first female President of Ireland, former UN High Commissioner for Human Rights and currently President of Realizing Rights: The Ethical Globalization Initiative, said the issue of human rights has not received the global recognition it deserves. Human rights, though integrated into legislation, constitutions, etc., are still deemed an obstacle in the advancement of dialogue, she said. “We are at a critical juncture of a financial crisis, a food crisis, a human rights crisis and an environmental crisis all (overlapping) together, which demands our urgent action,” she said. Having a human rights focus, would help substantially in dealing with these crises, through the improvement of conditions for individuals, for organizations, and for countries. The session titled Arts, Painting Crisis in a New Light was moderated by Riz Khan, founder of Al-Jazeera English Channel. Panelists discusssuch as, “How do the arts enhance the competitiveness of a nation? Why are the arts important to a thriving society? Is prosperity defined by economic measures alone? What can the arts teach us about true prosperity? How can nations build skills in arts and creativity? How is it possible to become creative, productive, and prosperous?” James Barrett, Executive Director, Redefining Progress said: “Are we measuring what really matters to assess the well-being of a nation? GDP? We've found that after $10K the increase in quality of life starts to fall apart. Take as an example the fact that GDP income values prison construction in the same manner as museum construction.” Jim Clifton, Chairman and CEO, the Gallup Organization, said: “What does everybody in the world want? A good job.” He said there was more money in hope, than there is in water and oil. The value of hope wasdemonstrated by the imposing development of the US in the last 30 years, he remarked. Michael Kaiser, President, John F. Kennedy Center for the Performing Arts, said creativity was essential for economic development. He said cities that preserved their cultures were the ones most productive and cities with most culture were the ones with the most tourism. During the next two days the participants will also discuss questions such as “How can we avoid similar economic crises in the future?”
