Governments as Economic Super Actors | World Economic Forum Annual Meeting 2026 – Transcript

00:54Good. Smart. Yeah. >>

01:22>> Good morning. Welcome to everyone in the room. Welcome to everyone who's following us online to this one of the first panels at the 2026 World Economic Forum annual meetings. It's shaping up to be a very exciting week. Uh and I'm very happy to be inaugurating this panel. I'm Martin Samu from the Financial Times.

01:42The title of this panel is governments as economic super agents which I think is a very exciting title because we used to have the Washington consensus which if we dumb it down a little was basically governments should take care of macroeconomic stability and property rights and get out of the way for the rest and uh we're very much not in that world anymore.

02:06Everyone has seen how China's state-led development model has had huge successes in terms of growth and industrial development uh over the past decades. And by now with all the crises that have been happening in the world, pretty much every government has adopted some some form of interventionism, industrial policy, certainly an acknowledgement that the state has a guiding role to

02:32play in shaping economic growth. So that's what we're here to talk about today to hear about experiences from from governments to hear how the private sector reacts to understand challenges, risks, opportunities. Um we have a wonderful panel. So I'll very rapidly introduce you. To my left is Jose Akazawa, Japan's Minister for Economy, Trade and Industry. Next is Fona Philip

02:58Champagne, Canada's Minister of Finance. Directly opposite me. Bob Willin, global managing partner and chair of Kernzi, the global consultancy company. To my right, Sunny Man, global chair of Baker McKenzie, the international law firm.

03:14And last but not least, Kathleen Coulson, professor of law at Georgetown University. So, a very high powered um very highowered panel. So, let's just launch straight into it. We have ridiculously a ridiculously short amount of time. So, I apologize in advance if I cut any of you off to to make sure everyone has time to speak. And we really do want some of the people in the

03:39room to be able to ask questions towards the end. So, so let's go. Uh before China, there was Japan. So, I'm going to turn to you first, Minister Akazawa. Uh I'm just about old enough that when I was in school I would learn about Japan as the example to look at in terms of a country that got industrial policy right and uh your ministry I guess maybe it

04:03was Mitti then Meti now was the core of the secret source and then you know maybe Japan went a little bit off track uh but is now coming back strongly. So what I'd like to ask you to do to get us started is to just explain to us how Japan is now getting that legacy using that legacy to rethink the role of the Japanese state in industrial policy and economic

04:30growth. Minister Akazawa please and I should say the minister will speak in Japanese so you all have translation headsets uh on your chairs. >> Well, thank you for the kind introduction.

04:46Davos economic forum 2026 this session with the government as economic super actors thank you so much for embody me and I have brow the CVS of the panelists so powered panelists I'm very honored to be here and Mr. asked a question. Thank you.

05:07>> And from the way you talk about the questions that I think you understand very well of economic history back in 1985 as you can recall the agreement of plaza agreement of the semiconductor have been striking including Japan and the United States and around that time that was one of the peaks that we enjoyed as Japan. Japan as number one.

05:29That book was published in the US and our GDP was almost half of the US and the US started to see us as a rivalry and uh one of the hegemonic countries of the United States kept us in check and the trade friction occurred after that and that was around 1985 and around that same time and the new neoliberalism has started to appear and then the politics shouldn't Wayne in those economy and industrial

05:57policy is not afraidable in order to protect the country the government shouldn't interfere those economy and that's kind of the trend we started to see there back then now the United States try to keep Japan in check and also industrial policy is not necessarily favorable and without protecting country we need to open the market and WTO comes to prominence and we need to lower tariffs

06:22and that's a development we saw and that neoliberalism is they without taking care of those that we purchase the things where the cost is lowest and sell those products where the the products can be sold. But then what President Trump is thinking about it is that manufacturing of the United States went out of the country and we need to

06:49restore those jobs but one of the hegemonic countries stance have been rattled and neoliberalism is not necessarily favorable for the world economy that's one of the problems awareness problem awareness the President Trump has I think and the vulnerability started to appear and the rare earth and key minerals supply started to be suspended by China and uh oil cannot be manufactured with

07:16those raw materials because of China's policy and under neoliberism the development of China goes on as ever has been is it really okay we need to ask questions to ourselves and then uh in that context we started to review the industrial policy I can understand what the US stands but the method itself is pretty wild and um we to be able to respond to that while

07:42the method but at the same time the free trade and the rule law those are the very important principles Japan advocates we need to take a good balance between the two so that's one of the struggles we have to deal with at the moment and as Mr. to ask the question that Matei leads in industrial policy and MEI has had so much power back in 1985 and US

08:09called the MEI as a notorious MEI now yes we were Miy now we mei we were MEI now and most efficient [clears throat] most effective ministry is a meti and I'm and the minister in charge of the ministry so the robust industrial policy need to be led So in order whenever we go on export import the stable supply is one thing we have to be mindful of.

08:35So that's the times that we are under at the moment and I would like to lead that the economy forward. >> Thank you very much. You're quite right actually to remind us of the of the 2010 move on rare earths limiting exports of rare earths from China to Japan because it it reminds us that in so many ways Japan has been facing some of the challenges everyone else is facing first. So I think we can all do to look to Japan to see how

09:02they've navigated also some of the macroeconomic challenges uh we we had over the last 10 20 years. U Minister Champagne, your country, Canada in this period that we were just talking about uh was really putting all in on integration with the US and has recently it seems determined that you might not want to put all your beg eggs in one basket.

09:30Given that the panel here is about the role of the state in the economy, I think we'd really like to hear from you how you as a government think about facing this challenge of well the structure of our economy may not be what we would like it to be. How do we get it from one place to another?

09:47Because again this is a break with the previous sort of hands-off thinking that prevailed in places like the World Economic Forum for many years. So tell us how your government what is your strategy? How do you actually go about reshaping restructuring an economy from the top down?

10:04>> Sure. Well, well, first of all, thank you everyone. Kazawasan, delighted to be with you. A distinguished panel. Thank you, Martin, for having all of us. Thank you for all of you to show up. I know it's early morning, but hopefully champagne will will fire you up a bit this morning. Um I must say the first thing I'd say Martin is that the the second quarter of the 21st century that we have already entered is not going to look like the last 25 years and and I

10:30think if you need a reminder of that we're only the 20th of January and I think some would say already feel that we have had a number of things to do. uh I can tell you as a G7 finance minister there was already one meeting and another schedule and we're just 20 days in the year. So that's just to give a sense of perspectives to colleagues as to where the world stand and and for me I think it's the trius uh which is really uh what colleagues may comment

10:58but just to put that in a frame and I'll come to Canada but it's the speed scale um and scope of change that is really rattling the world and it goes from geopolitics supply chain geoeconomics which is basically the word that I've heard the most from chairs now geoeconomics I've come here since 2009 I think so I've seen different different discussion in Davos but I think this is a momentous time because we're entering the the second quarter of the 21st

11:26century and how are we going to shape and it's not just geopolitics supply chain but it's the the speed scope and scale of technology I quantum and if you put all that I'd say for our citizens it's a lot at the same time let alone for governments let alone for corporate leaders to adjust to that new reality which is going to shape clearly the second quarter of the 21st century and beyond, I would think, particularly when you match quantum and AI. So, if you're

11:52Canada in this new world, how do you look at the world? Well, you were right. I think the world is moving and I'm very close to our Japanese friend as well. We're moving from reliance to resilience. I think in many parts of the world, you've seen supply chain going from global to regional, more emphasis, and you'll hear from colleagues talking about um you know, people are more about resilience than pure efficiency. We're moving from a different model. Remember the just in time which was very talked

12:19about in places like Davos. I think now people I I'll tell you one thing. I was with a he said you know what I like about Canada. If things go bad I can send a truck across. If it goes go really bad I'll go myself pick it up. Uh uh because you know proximity is everything. So if you're a country like Canada in a world like that uh you certainly want to diversify and I think this is what you're seeing. uh new

12:45alliance being formed, uh new supply chain being developed. If you talk about the largest uh uh maritime companies, you'll see new shipping lanes being established, new ports. I mean, we're the world is redesigning that in order to be more resilient. And obviously, when you're Canada, you've been blessed by geography. Obviously, we we're we're close to the United States of America, our largest trading partner. And I like to remind them by the way we're we're