Dalian, People’s Republic of China, 15 September 2011 – More than 20
mining and metal industry leaders and cross-industry partners
unanimously predicted an inevitable future increase in government
nationalization of critical resources over the next two decades as a
burgeoning middle class in emerging economies begins to demand higher
living standards.
“The resounding answer was that nationalizations will take place and
that this is not a good thing,” said Richard O’Brien, President and
Chief Executive Officer of Newmont Mining Corporation, USA. The
corporate executives were meeting as part of this year’s Resource
Summit, a feature of the World Economic Forum’s Annual Meeting of the
New Champions 2011 in Dalian, People’s Republic of China. The Summit
is part of an ongoing dialogue on resource issues sponsored by the
World Economic Forum. If nationalizations do take place, they will
very likely have a negative impact on globalization and world trade.
By 2030, the world population will pass the 8 billion mark, and
shortages are likely to be felt in water and food as well as petroleum
mineral resources. In a panel discussion on resources, Sir Mohammad
Jaafar, Chairman and Managing Director of the Kuwaiti Danish Dairy
Company, Kuwait, noted that, by 2030, matching European living
standards would require three planets of natural resources, and to
match US living standards would require at least five. While it may be
possible to meet some of the increasing demand with technology and
innovation, prices – especially on fuel – will inevitably rise and
even populations in the US and Europe will be forced to modify their
lifestyles.
Shi Dinghua, Counsellor on the State Council of the People’s Republic
of China, who worked on the current 5-Year Plan, noted that China can
expect to face water shortages and has made increasing the efficient
use of water a top priority. Shi also said that China intends to
provide at least 15% of its energy from renewable sources, and also
plans to continue developing nuclear power resources, although
security precautions will be tightened after the recent disaster in
Japan.
Scott Thomson, Chief Financial Officer for Talisman Energy, Canada,
said that he believes needs will be met through innovation, but that
it will almost certainly involve technology that has not yet been
developed.
Responding to growing systemic risks, the World Economic Forum
launched the Risk Response Network (RRN) at the Annual Meeting 2011 in
Davos in January to provide private and public sector leadership with
an independent platform to better monitor and mitigate contingencies.
The RRN Community will focus on those risks where multistakeholder
collaboration can strengthen global, regional and industry-related
risk resilience.
The Annual Meeting of the New Champions 2011, also known as the
“Summer Davos”, is taking place in Dalian, People’s Republic of China,
from 14 to 16 September. The Meeting is held in close collaboration
with the Government of the People’s Republic of China and with the
support of the National Development and Reform Commission (NDRC).