Expert perspectives: What’s the value of an economic summit?

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‍No one has counted how many economic forums take place across the world every year - somewhat ironically - but it seems safe to say they are never in short supply.

Attending these meetings goes with the territory for economists. But what do they actually achieve?

The 2008 financial crisis crept up on politicians, business leaders and economists. And fears of a similar surprise go some way to explaining the growing appetite for more discussion and more sharing of ideas regarding economy management. But academia’s role in safeguarding the global economy can seem distant to the public.

Disentangling the message and clues woven into a summit's official statements is not always a simple task.

“The Forum engages the foremost political, business and other leaders of society to shape global, regional and industry agendas:” so the World Economic Forum, known for its annual meeting in Davos, Switzerland, charts its mission.

Ahead of the Boao Forum for Asia - an annual gathering aimed at “promoting and deepening economic exchange, coordination, and cooperation” - two leading Chinese scholars spoke to CGTN about their experiences of economic summits.

They shed light on the inner workings and consequences of meetings where words shape global decision-making that in turn directly affects ordinary people’s lives.

What's the agenda?

Business leaders and politicians show up with a dash of celebrity and various agendas to advance, but more often than not their underlying goals are the same.

“Leaders coming to the summits will make efforts to seek out public support and sympathy with their decisions”, said Ben Shenglin, dean of the Academy of Internet Finance at Zhejiang University and executive director of the International Monetary Institute at Renmin University of China.

By speaking about policies at a summit with an established theme, leaders drop a hint about the rationale behind their decision-making, either in an attempt to test reactions from the public or to prepare people for a future decision, Ben explained.

Chinese President Xi Jinping’s keynote speech in Davos earlier this year was applauded for its supportive tone to globalization, against the backdrop of economic agendas across the world threatened by a protectionist hijack.

Economists' role

Academics are a voice for the general public, Xu Hongcai, deputy chief economist at the China Center for International Economic Exchanges, also told CGTN.

By introducing fresh perspectives and sharing ideas, scholars can broaden the horizons of policymakers and perhaps more importantly, push policies in a more inclusive direction.

Academia’s advantage in plugging the gap between decision-makers and the general public, and between officials and entrepreneurs, is its independence from partisan or commercial interests, Xu argued, “so that the economists can think more deeply."

Ben, however, was conservative about the idea that academia was a decisive force in shaping government and business policies, especially when experts’ ideas often contradict those of the people with the final say.

“The debate is intended to improve future decision-making,” Ben contended.

Xu agreed, adding that theoretical research was not flawless and disagreement also exists among economists. Business owners and political leaders need to find a balance when shopping for theoretical support.

“The scholars must be honest and constructive,” added Ben.

Goals higher than summit

Ridding the world of economic crises of the same scale as the 2008 financial earthquake goes far beyond the capability of a global forum, both experts agreed.

Humans can exert influence on the functioning of the economy, but by no means dictate it. Therefore it is “naive” to expect that a few days of talks will solve all the issues once and for all, according to Ben.

But bringing those influencers together to talk face-to-face does make a difference‍, he and Xu agreed.

“The mismatch of information among different groups of people is still a serious issue that demands more efficient communication than yelling at each other online,” Xu noted.

“Having all the right people in the same forum will accelerate decision-making”, Ben acknowledged.

“It (a summit) may help to reduce the frequency of the crisis,” he added.

The lessons of the 2008 financial crisis, a series of snowballing events that were foreseen by few, are plentiful. More transparency, more effective oversight and more communication - perhaps these are areas where a summit can contribute to building up defenses against a future economic tremor.