Model Management: The lessons of Genoa

The G8 summit in Genoa left an unpleasant aftertaste. On every side, everything about it seemed wrong. The summit leaders failed to engage in any real way with the problems of world poverty or the impacts of globalisation. The NGOs (non-governmental organisations), there to demonstrate their own concerns and push their own agendas, allowed themselves to be taken over by a minority intent on violence. The Italian police overreacted, killing one demonstrator. The people of Genoa were excluded from the centre of their own city, though were graciously left with the task (and cost) of clearing up in thanks for their hospitality.

Change is needed on all sides.

The political leaders who strut their stuff (often for the benefit of national television audiences) at these events could use a little more humility. A G8 summit need not resemble the Field of the Cloth of Gold and little less conspicuous consumption in terms of huge limos and even larger entourages, not to mention lavish banqueting, would not go amiss. The idea of summit meetings is for leaders to get to know each other in informal situations, not come on like potentates.

In that respect, the Canadians, who host next year's G8 meeting, are right to limit national delegations to under 40. (Their decision to relocate it from Ottawa to a remote Rocky Mountain resort is less so. Of course no one wants their cities trashed but increased isolation is not one of the answers. And in any case don't the Canadians think demonstrators will make the effort to get to wherever the summit is held?)

The NGOs also need to rethink their positions. It is true that many distanced themselves from violent demonstrations. But they have mixed feelings. They are forced to acknowledge that violence puts the issues on the front pages of the world media however much they deprecate it.

'Respectable' NGOs are increasingly working with governments and individual companies to achieve their aims. Companies have little choice, given the clout of NGOs, but to go along with them, whether it means taking 'conflict diamonds' or timber from rainforests off the shelves or paying decent wages.

But NGOs are also big business in their own right. Johns Hopkins University estimated in 1998 that they employed 19 million people worldwide and had an income of over $1,000bn. They are also unelected, unaccountable and sometimes cavalier with the facts on which they base their campaigns.

Those protesters who resort to violence just need to stop it, of course. Their targets seem to be those 'global brands' that most offend a mindless mix of soft-hearted, soft-headed 1960s-style hippiedom and a much harder-edged economic determinism that borders on the fascist and/or communist. It is an unappealing mix of left and right.

Global brands have a right to exist. But the companies behind them also need to think about change as well. Some of the most famous global brands (we all know their names) are actually behind some of the most vacuous, irrelevant, unnecessary, and sometimes downright dangerous products. The world would not be any the poorer were they to vanish.

Thinking of it like that, hard sell tactics, harsh and unfeeling labour practices in developing countries married to short-term financial obsession and fat cat-style executive salaries and perks is not a pretty sight.

As Jean-Jacques Lambin points out in the current issue of European Business Forum, globalisation can lay claim to many positive effects. Odd, though, that the case has to be made by an academic.

If we are to succeed in tackling the real problems of developing countries and mitigating the ill-effects of globalisation (because it does have some) then the real players - companies, NGOs, and governments - will need to get together to come up with some real solutions.

There will always be people who want to resort to violence. But if we are to stop a never-ending list of more Seattles, more Pragues, more Genoas, then change must take place.

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