Reimagining our global economy so it becomes more sustainable and prosperous for all

Our global economic system is broken. But we can replace the current picture of global upheaval, unsustainability, and uncertainty with one of an economy that works for all people, and the planet. First, we must eliminate rising income inequality within societies where productivity and wage growth has slowed. Second, we must reduce the dampening effect of monopoly market power wielded by large corporations on innovation and productivity gains. And finally, the short-sighted exploitation of natural resources that is corroding the environment and affecting the lives of many for the worse must end.

The debate over the causes of the broken economylaissez-faire government, poorly managed globalization, the rise of technology in favor of the few, or yet another reasonis wide open.Stakeholder Capitalism: A Global Economy that Works for Progress, People and Planet argues convincingly that if we don't start with recognizing the true shape of our problems, our current system will continue to fail us. To help us see our challenges more clearly, Schwabthe Founder and Executive Chairman of the World Economic Forumlooks for the real causes of our system's shortcomings, and for solutions in best practices from around the world in places as diverse as China, Denmark, Ethiopia, Germany, Indonesia, New Zealand, and Singapore. And in doing so, Schwab finds emerging examples of new ways of doing things that provide grounds for hope, including:

By accurately describing our real situation,Stakeholder Capitalism is able to pinpoint achievable ways to deal with our problems. Chapter by chapter, Professor Schwab shows us that there are ways for everyone at all levels of society to reshape the broken pieces of the global economy andcountry by country, company by company, and citizen by citizenglue them back together in a way that benefits us all.

ProfessorKlaus Schwab is Founder and Executive Chairman of the World Economic Forum, the International Organization for Public-Private Cooperation, most known for its Annual Meeting in Davos, Switzerland. He first introduced the stakeholder concept in his 1971 bookModern Enterprise Management in Mechanical Engineering and has been an advocate for stakeholder capitalism ever since.

Co-authorPeter Vanham is the Head of Chairman's Communications at the World Economic Forum and author ofBefore I Was CEO. He writes about the global economy and the people who shape it.

About the Authors xi

Preface xiii

Part I The World I Grew Up In

1 75 Years of Global Growth and Development 3

2 Kuznets Curse: The Issues of the World Economy Today 21

3 The Rise of Asia 55

4 Divided Societies 75

Part II Drivers of Progress and Problems

5 Globalization 93

6 Technology 115

7 People and the Planet 147

Part III Stakeholder Capitalism

8 Concept 171

9 Companies 199

10 Communities 219

Conclusion 247

Acknowledgments 253

Index 259