Friday, September 22

8:45 – 10:30 am
Keystone Roundtable MAKING THE GLOBAL ECONOMY WORK FOR EVERYONE: CHALLENGES AND OPPORTUNITIES
Globalization is one of the most charged issues of the day. A multifaceted concept, globalization is seen by its supporters as an effective vehicle for achieving global economic growth and prosperity. Its critics have, however, argued that globalization is widening the gap between rich and poor and damaging the environment. Recent economic crises and market instability, along with rising criticism from civil society, have underscored the need to continue to examine globalization from a number of different perspectives. The Keystone Roundtable of the 2000 Program of Seminars brings together a distinguished group of international thinkers, leaders, and trendsetters who will share their views on the risks, challenges, and opportunities of globalization, analyze the debate about its impact on people, and discuss how public and private sectors should respond. Speakers and participants will elaborate on these issues in the seminars and workshops that will take place during the ensuing four days. Among the important topics they will consider are:
Why have there been such large differences in rates of poverty reduction in the developing world, and to what extent may these be related to globalization?
How can policymakers exploit the opportunities for higher economic growth and better living standards resulting from globalization and, at the same time, mitigate the risks and promote greater equity?
Is globalization hindering countries’ efforts to set environmental standards?
How much of the responsibility to share the benefits of globalization rests with the corporate sector?
What kinds of governance and regulations are needed to capture the benefits from an integrated world economy?
How best can international financial cooperation and the opportunities presented by an open world economy work toward achieving prosperity for all sections of society?

11:00 – 12:30 pm
FINANCE IN THE NEW MILLENNIUM: THE ROLE OF GLOBALIZATION AND E-FINANCE
Globalization, technological advancements, and the Internet are swiftly and fundamentally changing the financial services industry. These movements are rendering the traditional paradigm of financial sector development obsolete-introducing new players and opportunities, yet also raising fresh challenges and risks.
What long-term changes can be expected in the global financial system?
What will be the impact on financial service providers? Will banks still be unique?
What particular challenges confront policymakers in the supervision and regulation of new e-markets and related institutions?

11:00 – 12:30 pm
HARNESSING INTERNATIONAL TRADE FOR DEVELOPMENT
For many developing countries the global trading system has been a powerful engine of growth in recent decades. However, many of the poorer developing countries have been unable to take advantage of these opportunities, have remained dependent on traditional commodities, and have seen their share of world exports sliced in half since the early 1980s. It has become clear that a more comprehensive approach to development is needed, and the challenge is to identify where trade reform fits within this broader approach.
Should developing countries increase their engagement with the world economy, or turn inward to meet their development objectives?
What trade reforms and complementary policies are needed so developing countries can use trade for development?
How can the world community best help the poorest countries use trade for development?
How much emphasis should developing countries, and particularly the poorest, place on a multilateral negotiating round?

2:00 – 3:15 pm
CURRENCY AREAS AND THE INTERNATIONAL MONETARY SYSTEM OF THE 21 ST CENTURY
Three major currency areas are likely to dominate the first decades of the 21 st century: a dollar, a euro, and an Asian currency. Whereas the shape of the first two already can be clearly discerned, that of the third is uncertain. The evolution of these currency areas will have profound implications for the world’s monetary system.
What are the probable forms and memberships of the dollar and euro currency areas?
What are some possible scenarios for the emergence of an Asian currency area?
What are the prospects for relations between these areas and implications for the international monetary and financial system as a whole?

2:00 – 3:15 pm
MAKING MARKETS WORK FOR THE POOR
The vast majority of poor people make their living from market activities. How well markets function, and especially the conditions for private enterprise development are of paramount importance to the material well-being of the poor. Under the right conditions the operation of markets can be the engine of poverty reduction. But what are those conditions? The panel will review circumstances in which markets can work “for” the poor – that is, be a force for greater equity and poverty reduction. The discussion will take place in the context of the experiences of market-oriented reforms in the developing world over the past two decades.
How can governments best encourage job-creating enterprises?
Under what conditions is trade liberalization good for promoting equity and reducing poverty?
What is the connection between local regulation and entrepreneurial activity in the informal sector and in small and medium enterprises?
Under what conditions can large domestic firms and Foreign Direct Investment (FDI) help reduce poverty?
What is needed to make privatization of State Owned Enterprises (SOEs) pro-poor?

3:45 – 5:00 pm.
FINANCIAL CRISIS RESOLUTION: WHAT ROLE FOR THE PRIVATE SECTOR?
Recent financial crises have brought to the fore questions concerning the involvement of the private sector in the resolution of financial crises. The seminar will examine issues associated with the circumstances in which the official community should be willing to rely on the traditional catalytic role of the Fund to produce spontaneous capital inflows, and the circumstances in which this should be buttressed by more concerted techniques for securing private sector involvement.
How can countries limit their vulnerability to crises, and establish constructive dialogues with foreign investors?
Should the international community move toward a rules-based system for determining when concerted private sector involvement would be required in the resolution of crises?
How are efforts to secure private financing in the resolution of crises likely to affect the pattern of capital flows to emerging market borrowers?

3:45 – 5:00 pm
THE CHALLENGES OF GLOBAL CORPORATE COMPETITION
The world’s economy will continue to integrate, driven by the erosion of national borders and the escalating power of technology. As developing country companies enter the global marketplace they must tackle the often formidable forces of global competition. This seminar will highlight some of the key challenges – and solutions – for these companies to become global players. What is an appropriate strategy for developing country corporations to respond to the challenges of global competition?
How can companies from developing countries compete in domestic markets against established multinationals?
What is the approach of large multinational companies in developing countries as they accelerate their strategies to match the pace of globalization?
What is the appropriate policy framework for developing country governments to adopt?

5:30 – 6:30 pm
KEYNOTE ADDRESS
By Romano Prodi, President, Commission of the European Communities

6:30 – 7:30 pm
WELCOME RECEPTION

Saturday, September 23

8:45 – 10:30 am
E-FINANCE.COM: IMPLICATIONS FOR POLICY
There is no turning back now that consumers and corporations have started using the Internet for on-line banking and other financial transactions. Internet-based financial services are shaking up the banking industry, with new players jockeying for position ahead of traditional providers in an arena where the ground rules are still being defined.
How are the established “brick and mortar” banks responding to the challenges posed by the new Internet competitors?
What strategies are the newcomers adopting in the business-to-business and business-to-consumer arenas?
What is the implication of e-finance for developing countries?

9:00 – 10:30 am
INTEGRATION INTO THE EUROPEAN UNION: CHALLENGES FOR ACCESSION COUNTRIES
The more advanced transition economies of Eastern and Central Europe must address vital fiscal and macroeconomic issues to lay the groundwork for a smooth accession into the European Union.
What are the macroeconomic and structural policies necessary to facilitate economic integration with the European Union?
What, if any, tradeoffs are involved in successful implementation of these policies?
How can policymakers help ease the process of economic integration with the European Union?

11:00 am – 12:30 pm
BUILDING THE BOTTOM LINE THROUGH GOOD CORPORATE CITIZENSHIP
In this time of rapid globalization, technological innovations, and profound economic, political, and social change, there is agreement among policymakers, senior businesspeople, and civil leaders on the increased importance of sound corporate citizenship. Through several case studies presented by high-profile executives, this seminar will address corporate citizenship from a market perspective.
What are the roles of business, civil society, and government in sound corporate citizenship?
How does one create a business and policy environment that supports sound corporate citizenship?
Can sound business ethics and practices improve corporate competitiveness and the corporate bottom line?
What is, and should be, the role of the private sector in society?

11:00 am – 12:30 pm.
IS DOLLARIZATION/EURO-IZATION THE WAY FORWARD?
Many emerging economies are seriously considering the benefits of adopting a foreign currency, such as the US dollar, as their sole legal tender currency. In Europe, some countries are also considering adopting the euro even ahead of admission into the European Union. This seminar will debate the costs and benefits of taking such steps.
How relevant are the traditional “optimal currency area” arguments for currency unions in the current environment?
What would be the reaction of international capital markets vis-a-vis public and private debt?
Are the loss of monetary autonomy, seignorage revenues, and the traditional “lender of last resort function” serious problems?
Would early, unilateral Euro-ization make the transition to European Central Bank membership easier for Central and Eastern European economies?

2:00 – 3:15 pm
PRIVATE HEALTH INSURANCE AND PENSIONS: THE ROLE OF REGULATIONS
In both developed and transition countries, the private sector increasingly is used to provide health insurance and old-age income support through privately managed pension funds and annuities. This (partial) outsourcing reflects problems in reforming social programs within the public domain, the desire to link social objectives with economic growth, and the desire to harness private sector innovation. Withdrawal from direct provision and full financing of these social programs raises issues about government’s role to assure adequate and effective private provisions through appropriate regulation and supervision, and their objectives and limits. Speakers from both the public and private sectors will provide their perspectives.
Is there a self-interest of the private sector in appropriate public regulations?
Can these regulations be assured through private sector rules of conduct and self-regulation?
What is the needed scope and where are the limits of public regulation and supervision?
Is there a difference between countries at different stages of market development?
Can public agencies – in particular, revenue collectors – play a useful role in achieving administrative efficiencies and assuring compliance, or do they impede progress?

2:00 – 3:15 pm
GLOBAL FINANCIAL MARKETS IN THE TRANSITION ECONOMIES OF EUROPE AND CENTRAL ASIA: THE DECADE AHEAD
The ability of the transition countries of Europe and Central Asia to adapt to the evolution of global financial systems is key to prospects for regional financial sector development in the decade ahead.
What role will Western financial institutions play in the region’s financial systems?
What new challenges will confront financial regulators in the region’s countries?
What should European and Central Asian countries do to reduce their vulnerability to contagion from international financial crises?

3:45 – 5:00 pm.
PRIVATIZATION AND RESTRUCTURING IN TRANSITION ECONOMIES
The effects of privatization in transition countries have been hotly debated, but much of the discussion to date has been based more on anecdotes and assertions than on careful, rigorous analysis. This seminar will present the findings of a recent and comprehensive examination of 125 studies of ownership change and restructuring results in transition states. It will also address the question of whether, and if so, how transition governments should go about privatizing their remaining state-owned firms.
What have been the effects of privatization?
How do these vary from one set of transition countries to another?
Do some owners perform better than others?
What are the effects on restructuring of soft budgets and competition policies?
What methods, procedures, and policies should transition governments adopt to complete the privatization process?

3:45 – 5:00 pm
BANKING AND CAPITAL MARKETS – THE UNFULFILLED PROMISE IN EUROPE AND CENTRAL ASIA
The strengthening of banking and capital markets systems is recognized as a fundamental component to the successful development of transition economies in Europe and Central Asia.
What should be done to stimulate greater private savings in general and increased deposit mobilization in particular?
And what will it take for banks to concentrate more on financing their corporate clients in the new decade?
Have banking crises in Europe and Central Asia held back the development of the real and financial sectors?
What might be done to better prepare the capital markets to handle long-term flows of funds that will result from pension reform in some countries?

5:30 – 6:30 pm
KEYNOTE ADDRESS
by His Excellency Ernesto Zedillo, President, Mexico

6:30 – 7:30 pm
NETWORKING RECEPTION

Sunday, September 24

9:30 – 11:00 am
BUILDING PUBLIC CONSENSUS FOR REFORM
Ambitious reform programs often face numerous challenges. One of the most critical, and most often overlooked, is that of building public support. Engaging all stakeholders in a constructive dialogue, including those groups who are going to be “losers” in the process, is key to implementing successfully any far-reaching policy. An effective reform program must be not only technically sound, but also politically and socially viable. Among the critical issues to be considered are: Why is it important to involve interested parties as early as the design stage of a reform program?
Participatory processes raise many expectations: how should expectations be managed?
How have reform programs faltered or failed to engage stakeholders?
How can public opinion be mobilized to support crucial policies?
How are stakeholders identified and their relative weight measured?
How does one reach out to the non-organized elements of society that often lack a strong voice?
What key communication strategies have contributed successfully to national development issues?
What role can the media play?
Who can help lead change and promote dialogue across sectoral boundaries?

11:30 am – 12:30 pm
KEYNOTE ADDRESS
To be announced.

2:00 – 3:30 pm
THE EURO-MED PARTNERSHIP AGREEMENTS:ARE THEY FOR REAL?
In the 1990s the European Union (EU) approved a major initiative to enhance the development efforts of Mediterranean countries. This is particularly significant for the economies of the Middle East and North Africa, given that the EU is by far the region’s largest trade, investment, and economic assistance partner. Since 1993 three Mediterranean countries in the Middle East and North Africa region have signed separate partnership agreements with the EU, and negotiations are ongoing with the others. This seminar will address the following issues.
How does the commitment of the EU to the Mediterranean region compare with that of EU enlargement to the East?
How can Euro-Med partners use this negotiation process to maximize benefits from the EU, particularly in services?
Is the initiative dealing with the potentially explosive migration issue?
Do the Euro-Med Partnership Agreements complement or compete with ongoing regional and multilateral trade liberalization efforts?

2:00 – 3:30 pm.
LATIN AMERICA AND THE CARIBBEAN: THE ROAD AHEAD
Latin America and the Caribbean face major challenges in implementing their development agendas. The successful development of both regions depends both on internal policies and global developments. This session will focus on key themes that are sure to influence regional prospects for years to come.
What will be the future regional trading relationships for Latin America and the Caribbean, and what lessons can be learned from past experience?
What future currency relationships would serve best the needs of the region and how can they be developed?
What are the key drivers of the region’s competitiveness?
How can governance aspects in the region be linked to the achievement of national objectives of growth and poverty alleviation?

4:00 – 5:30 pm
MAKING TRANSITION WORK FOR EVERYONE: POVERTY AND INEQUALITY IN CENTRAL EUROPE AND CENTRAL ASIA
Poverty and inequality have increased substantially over the past decade in transition countries. Unemployment is high, real wages have collapsed, and wage incomes as a share of total income have declined in many countries, though the patterns do vary between Central Europe and the Commonwealth of Independent States (CIS) countries. There is strong interest in employment generation and a high demand for public provision of social security. The experience of Organization for Economic Co-operation and Development (OECD) countries is relevant to the economic and social concerns of transition countries. This seminar will consider how transition countries might benefit from the lessons learned by OECD member countries.
What policies have had the biggest impact on reducing poverty?
Have active labor market programs been successful in reducing poverty and unemployment?
What is the role for work-tested social assistance?

4:00 – 5:30 pm.
AFRICA: DEVELOPING AN INVESTOR-FRIENDLY ENVIRONMENT
A key element in raising growth rates and reducing poverty in Africa is achieving higher levels of productive investment. This seminar will enable policymakers and private investors to discuss ways of attracting investment and cutting the costs of doing business in Africa. The primary focus will be on stabilizing the macroeconomic environment, rationalizing tax provisions, reducing trade barriers, modernizing financial infrastructures, accelerating privatization, improving governance, and reforming judicial systems. The effort to achieve greater export diversification and the role of regional trading initiatives will also be explored. The panel will include individuals with first-hand experience in setting up businesses in Africa, implementing pro-business reform, and coordinating policy initiatives within subregions of the continent.
How should Africa’s macroeconomic environment be stabilized and its tax provisions rationalized?
What can, and is, being done to trade barriers for Africa and within Africa?
What will the investment impact be of modernizing Africa’s financial systems and reforming its judicial systems?
What is the best way to accelerate privatization and improve governance in Africa?

Monday, September 25

9:00 – 10:30 am
DIGITAL CONVERGENCE:ACCESS AND EMPOWERMENT
The emergence of the networked economy is having a major impact on the world economy. There is also growing recognition that access to the Internet is becoming an important factor in ensuring participation in the global economy. Unless a proactive policy to foster access and empowerment in emerging economies is adopted, the risks of a growing “digital divide” will increase. This session will explore issues of access, from the points of view of technology and financing, as well as how access to modern networks can contribute to the empowerment of stakeholders.
What are the major opportunities and risks faced by developing countries?
What can be done to accelerate access in the electronic marketplace?
How can we focus attention on opportunities provided by the information revolution in order to accelerate sustainable capacity building?

11:00 am – 12:30 pm
BUILDING THE NET: SEEDING START-UPS IN THE DEVELOPING WORLD
For the developing world to tap into the opportunities of the Internet, local approaches must be created to meet local needs. A dynamic environment for start-ups therefore becomes a critical issue in bridging the “digital divide”. Beyond a lack of financing for early stage firms, most countries lack the network of experienced managers, advisors, and business services that help start-ups succeed. The seminar will explore issues of entrepreneurship in developing countries.
What are “angel networks” and how do they help? What is the role of “incubators”?
What are some relevant experiences in venture capital?
What are some of the innovative solutions out there to the challenges that are presented by logistics and payment services?

11:00 am – 12:30 pm
GOVERNING THE ECONOMY, CAPTURING THE STATE: LESSONS FOR COMBATING CORRUPTION AND IMPROVING GOVERNANCE
Corruption is now recognized as an important obstacle to development. It not only weakens the business environment and reduces growth, but also contributes to increases in inequality and poverty. One particular form of corruption that has proved to be particularly detrimental is “the capture of the state” by powerful private interests. This session will bring together distinguished leaders from the public and private sectors to discuss state capture and its potential remedies.
Why have a narrow set of private interests been able to capture the law and policymaking processes in so many countries?
How can the voice of the business sector be channeled through broader, and more formal, transparent mechanisms, such as business associations?
How should lobbying be regulated?
How can greater transparency and accountability be introduced in political and bureaucratic institutions to reduce incentives and opportunities for state capture?

2:00 – 3:30 pm.
GOVERNANCE OF CITIES IN TRANSITION: 2000 AND BEYOND
Cities play a pivotal role in the transition from plan to market. They are at the center of achieving lasting economic growth as they support the emergence of new businesses and jobs. Yet many cities struggle to deliver cost-effective services to businesses and residents; improve their own administrations; engage civil society; develop new sources of finance; and replace social safety nets previously provided by state enterprises. A roundtable of mayors from Eastern Europe and Central Asia, government representatives, private investors, academics, and representatives of international financial institutions will discuss key urban issues in an open debate.
How can cities address their needs with few revenues and still achieve lasting success?
How can cities balance the sensitivities of newly emerging democracies with the demands of global investors for a more integrated world economy?
How can cities cope with the stress of rapid social change and the emergence of poverty?

2:00 – 3:30 pm
AFTER THE GUNS GO SILENT: THE BUSINESS OF PEACE
In every region of the world where conflict has occurred, countries have been impoverished, in many cases wiping out the achievements of decades of economic and social development. It is clear that the breadth of the challenges in most postconflict situations remain daunting for public and private actors alike. The transition to peace and the challenge of returning large numbers of displaced persons to social and economic stability is complicated – not just by landmines and unexploded ordnance, but also by the legacy of divided and often militarized societies. The destruction of physical assets, disruption in trade links, decimated institutional capacity, and loss of human capital can be devastating. This session will look at past and current postconflict situations, and the conditions and cooperative efforts necessary to ensure that assistance reaches the affected populations and begins to normalize the economy.
What are the priorities for “jumpstarting” the economies of postconflict countries and creating the conditions for renewed trade and investment?
What is the correct timing and sequencing for these interventions?
What makes entering postconflict situations financially viable for the private sector?
What conditions need to be in place, and what risks need to be evaluated?
Who is best qualified to lead these large-scale efforts?
What are the obstacles to effective public-private cooperation?

4:00 – 5:30 pm
Capstone Roundtable MAKING THE GLOBAL ECONOMY WORK FOR EVERYONE:WHERE DO WE GO FROM HERE?
Join a panel of distinguished leaders and visionaries for a synthesis and analysis of the issues raised during the four-day Program of Seminars, and a strategic look at the road ahead for leaders in government, business, and nongovernmental organizations. From the perspective of their various areas of expertise, these luminaries will discuss options and strategies for making the global economy work for everyone.

5:30 – 7:00 pm.
RECEPTION HOSTED BY ARTHUR ANDERSEN