Recognise Disruption as a Positive Force, world politicians tell GMIS

29 Mar 2017
  • The effect of disruption on global trade patterns, employment trends, and political dynamics discussed by panel of global politicians at Global Manufacturing and Industrialisation Summit
  • Governments must understand the needs of society and the effects of disruption, in order to harness its potential as a power of positive change
  • Small and medium enterprises must be supported in the adoption of often expensive Fourth Industrial Revolution technologies

Abu Dhabi, UAE, March 29, 2017: Four representatives from global governments held a wide-ranging panel discussion on day one of the Global Manufacturing and Industrialisation Summit (GMIS) to discuss the power and potential of disruption on global trade patterns, employment trends, and political dynamics.

The panel, titled ‘Harnessing the Power of Disruption – Strategic Policymaking for a New Industrial Revolution’, was moderated by Simon Baptist, Global Chief Economist, EIU, The Economist. He was joined on stage by Rogelio Garza Garza, Undersecretary of Industry and Commerce, Mexico; Jerzy Kwieciński, Secretary of State, Ministry of Economic Development, Republic of Poland; Dr Peter Ramsauer, Member of the German Bundestag, Chairman of the Committee on Economic Affairs and Energy, Former Federal Minister Germany, and Airlangga Hartarto, Minister of Industry, Indonesia.

Key themes of the discussion revolved around the way in which global trade patterns, employment trends and political dynamics have undergone a seismic shift in recent decades, while the advent of technological revolution has had massive implications not only on the future of manufacturing, but on national economic structures worldwide. The panellists addressed how disruptive technologies change global trade patterns, how policymakers can prepare for disruption, the roles of economic and industrial policy, and how governments can ensure tomorrow’s workforce are ready for tomorrow’s higher skilled, technological future.

Speaking on the trends in manufacturing and supply chain in Mexico and on a global scale, Rogelio Garza Garza said: “Disruptive technologies have and will continue to change the different patterns of production and trade, and we need to work with this. The big challenge of this is how to work with human capital, and with small and medium enterprises. Governments need to understand in order to apply policies. If you can understand the level of adoption of technologies in SMEs, we can define the policy to support these small businesses to enable them to adapt Fourth Industrial Revolution technologies.”

“We are living in a changing world,” said Jerzy Kwieciński, looking ahead to the trends that will shape industry in the future. “We have to decide if we treat this new change as a threat to our economies, or as a chance. What we have to do, as politicians, is make a proper diagnosis of the situation in order to ensure it has maximum benefit for our economy and society. Manufacturing accounts for almost one third of our economy. If you take manufacturing’s auxiliary services into account, then this will show you that almost half of the economy will be directly or indirectly effected by manufacturing. Additionally, manufacturing and the industrial sector accounts for two thirds of innovation, and what is even more important is the high value added, because as we want other people to earn more, we have to look for jobs that get value added.”

Dr Peter Ramsauer addressed the matter of change as a positive. “Our decisive recipe for economic success was to always say yes. If we [Germany] had denied manufacturing, then we would still be very, very poor. We have a strong, healthy German economy because of all these conditions, and also why my first commitment, in regards to the fact of globalisation and digitalisation, what we call disruption, is to say yes – never try to avoid all of these. Say a clear yes, and try to shape it as far as necessary, but also from a political point of view only interfere as much as needed. The word disruption might cause fear because it’s a negative notion; we should replace the word ‘disruption’ with digital opportunities.”

Airlangga Hartarto, discussing the ways in which small and medium enterprises (SMEs) can take advantage of often expensive Fourth Industrial Revolution technologies, said: “Indonesia has benefitted from the current technology environment. We have the basis of manufacturing, based on minerals and resources available, and agriculture, as well as exported products. Looking into regional development, there is an emphasis on developing manufacturing sectors such as mining, petrochemicals, and more. We are one of the largest motorcycle producers, creating 8 million motorcycles a year. Our strategy with digitalisation is to combine into a digital economy to maintain competitiveness. Indonesia is an open economy; we are open for foreign direct investment; growth comes from foreign direct investment.”

The inaugural Global Manufacturing and Industrialisation Summit is taking place at the Paris-Sorbonne Abu Dhabi, UAE, until March 30, 2017, under the patronage of His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces. The Summit, which is co-chaired by the UAE Ministry of Economy and the United Nations Industrial Development Organization (UNIDO), is the world’s first global gathering for the manufacturing community, bringing together decision-making leaders from governments, businesses and civil society organisations to shape a vision for the sector’s future.

The Summit is a global platform for participating attendees to learn from best practices from across the world. This unprecedented global gathering will spark new ideas and set the stage for debate and action – addressing ways in which manufacturing can shape and reshape the world, integrating activities between developed and emerging markets, and delivering on social responsibility towards future generations. Leaders from the public and private sectors, along with representatives from civil society organisations, will gather to discuss global challenges within the manufacturing sector, looking specifically at six themes: technology and innovation; global value chains; skills, employment and education; sustainability and environment; infrastructure; standards, and stakeholder alignment.

About the Global Manufacturing and Industrialisation Summit

As the world’s first cross-industry forum, the Global Manufacturing and Industrialisation Summit is a global gathering for manufacturing minds. It is a voice and a venue for global manufacturing transformation. More than 1,200 delegates will attend, including world leaders, industry CEOs, policy-makers, specialist researchers and academics. The Global Manufacturing and Industralisation Summit will deliver (i) a voice for transformational ideas, (ii) a venue for the generation of new networks and cross-industry partnerships, (iii) a showcase for pilot projects arising from cross-industry research,

Global Agenda on the Future of Manufacturing

The conference will focus on the role of manufacturing in reconstructing the global economy and restoring global prosperity. Leaders from the public and private sectors, along with civil society representatives, will gather together to discuss global challenges facing the manufacturing sector. The discussions will focus around six themes: technology and innovation; global value chains; skills, employment and education; sustainability and environment; infrastructure; standards and stakeholder alignment. The participants will form working groups to identify concrete action plans and recommendations that outline potential solutions to global issues, as well as showcase best practices and case studies from across the world. To highlight an example of global issues, the inaugural conference will focus on the issue of economic migration, with the aim of establishing a manufacturing platform that will bring together countries facing emigration or immigration challenges with regional countries that seek to support economic reconstruction. These countries will work together with manufacturers and the wider United Nations network on restoring global prosperity.

The Manufacturing Expo

Capitalising on the huge presence of the global manufacturing community under a single meeting venue, the Manufacturing Exhibition will offer space to corporations looking to showcase their products, services and latest innovations or technologies that can further contribute to promoting global economic development. The Manufacturing Expo consists of four components: an exhibition showcasing the manufacturing capabilities of the host country; international pavilions showcasing the manufacturing capabilities and economic incentives of each participating country; an innovation exhibition that demonstrates the latest fourth industrial revolution technologies; and an event for SMEs to present their products and solutions to potential customers.

The Global Value Chain Market

The Global Value Chain Market (GVCM) is a business matchmaking platform dedicated to increasing regional and international partnerships and opportunities. The platform will provide networking and sourcing opportunities both online and onsite via pre-scheduled meetings with the vision of forging investment opportunities, commercial partnerships, and encouraging technological transfer and knowhow. The platform will enable countries to identify and meet global manufacturers to promote industrial development, and familiarise global manufacturers with targeted industrial activities in various countries. The GVCM will become a source of valuable information for global investments, providing insights on legislation and regulations, sovereign risk, political stability, and physical and logistical infrastructure.

For additional enquiries contact:

ASDA’A Burson-Marsteller
Mohammad Shaban

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