June 2, 2009. -- Thomas Leysen, Chairman of the Federation of Belgium Industries in Belgium and Chairman of Umicore, addressed the topic of "Crises and Renewal: Economic Crises and Recovery" at the CEIBS Shanghai Campus this evening. Jointly hosted by CEIBS and the Benelux Chamber of Commerce in China (BENCHAM), the event was part of CEIBS' EU-China BMT Project Lecture Series. The BMT Project, which runs from 2008 to 2012, will raise awareness of the European Union in China and knowledge about the European Union as a political and economic entity. 

 
Thomas Leysen

To get today's event underway, CEIBS Dean and Vice President Rolf D. Cremer extended an official welcome to Mr. Leysen and the packed room which included BENCHAM representatives, CEIBS faculty, staff and students. CEIBS, Dean Cremer said, was "always happy" to stage events which contribute to the sharing of intellectual discourse within the business community. Among the VIPs in attendance were:
- Consul General of Belgium, Mr. Marc Pecsteen
- Vice Chairman of BENCHAM, Mr. Patrick Van Overloop
- GM of BENCHAM, Ms. Myriam Cops
- Senior Vice President/Country Manager Umicore Greater China Klaus Ostgathe.

In his address, Mr. Leysen used a number of Economist magazine cover stories to track the failure to heed early warnings of the impending financial meltdown, the early beginnings and sources of the crisis, as well as the way forward. He drove home the point that there is now a global imbalance in the financial system, the world economy, state budgets, global governance, and the entire planet as a whole. The challenge now, he said, is to restore balance in all these areas. He spoke of the need to stabilize and then redesign the shrinking financial sector which will inevitably see changes to some of its larger segments -- such as securitization. He stressed, however, the need for a careful approach to this task in order to avoid extreme measures that would lead to overregulation. "The challenge is to resist overly rapid and simplistic actions," he said.

Mr. Leysen also told the audience that:
- The current collapse in the manufacturing sector is temporary and he expects growth to resume in the sector by the second half of the year, but he added that there is a need to address the existing imbalances between the U.S and China.
- There is a vital need for companies to retain their skills base and invest in retraining during the crisis, which has claimed so many jobs.
- While he accepts that some spending is needed to emerge from the crisis, rescue packages should be used in moderation. It may be time, he said, for "us to acknowledge that we're just a little bit poorer then we were before."
- Correcting the imbalance in global governance is vital in order to accommodate the rising power (and accompanying responsibilities) of countries such as China and India. 
- There is a need for Europe to speak with one voice and ensure that it not only has a seat at the table, but also a voice.
- Avoiding the return to protectionism and fostering free trade is vital.

He told the audience, however, that the most important issue is the geological imbalance and emphasised the need for sustainability. Said Leysen, "We are coming to a limit. This will be the defining issue... long after the financial crisis is a footnote in the books of history. We have to ensure, ecologically, that we turn before we hit that brick wall." There is an urgent need, he added, to find a way to balance the earth's limited resources with the desire for material growth. He explained that this will require a combination of market forces, and behavioural change by both citizens and corporations. "Energy efficiency has to be the first priority," he stressed.

Drawing on the example of his own company, Umicore, which has transformed itself by moving away from smelting to now generating 15% of its euro 2 billion from clean technology, Mr. Leysen made the point that successful companies of the 21st Century will be those that take a serious approach to sustainable development issues. "This is a time of opportunity," he said, "so we shouldn't be despondent. If we put our minds to it, this crisis can be and needs to be a time for renewal."

After a Q&A session, the evening wrapped up with a cocktail reception during which guests had an opportunity to further exchange views.

CEIBS Dean and Vice President Rolf D. Cremer presents Mr. Leysen with a token of appreciation.

This was the first of a number of EU-China BMT Project Lecture Series events planned for 2009. Events held in 2008 include:
- an October 28 discussion, by the Netherlands' Minister of Foreign Trade Frank Heemskerk, on CSR and Dutch enterprises 
- a September 19 visit by Deputy Managing Director of the Barcelona Port Authority, Santiago Mila who spoke on "European Sustainability in the World Economy: The Role of Logistics and Mediterranean Ports"
-  a June 19 address by EU Ambassador to China His Excellency Serge Abou who shared his thoughts on "The European Union & China in the 21st century"
-  a June 13 speech by Ambassador of the Republic of France to China, His Excellency Herve Ladsous, who spoke on "Priorities of the EU's French Presidency"
-  and a February 26 visit by UK Foreign Secretary David Miliband who explored the current global shifts in economic and political power, and the implications for those who lead, during a CEIBS forum entitled "Leadership and Globalization - The Role of Government and Business".