Former British Prime Minister Tony Blair, former U.S. Secretary of the Treasury Timothy Geithner and other globally renowned thought leaders will gather in Seoul this week to explore a new zeitgeist that could help weather growing uncertainties and instability in this era at the 16th World Knowledge Forum (WKF). They will share their insights in various sessions on a wide range of issues including what alternatives to capitalism in the 21st century are available, what lies ahead for the U.S.-led shale gas revolution, where international oil price is headed, what’s happening between the G2 (the U.S. and China) over geopolitical and economic hegemony, how to raise money for the unification of the Korean peninsula and how to strengthen urban competitiveness.

◆ Capitalism and equality in 21st century

Since the global financial crisis in 2008 prompted skepticism over capitalism, discussion on alternatives to the capitalist system has heated up. Protesters seizing Wall Street criticize capitalism for benefiting the 1 percent at the expense of the 99 percent, and Thomas Piketty, a professor of Economics at the Paris School of Economics, has contributed to the public debate on worsening inequality under the current system. The widening wealth gap between the rich and the poor is identified as a main culprit of growing social instability and weakening growth momentum. Insatiable greed of financial companies and firms using low interest rates as a lever has inflated the financial bubble, and the burst of the bubble in the global financial crisis has driven the whole world to the brink. At the WKF, it will be possible to find out how to overcome the limitations of the existing capitalism for inclusive growth.

Jeffery Kim, professor emeritus of economics at Sung Kyun Kwan University, will chair the session of “21th Century Capitalism of Equality,” which will be attended by Laurence Kotlikoff, Boston University Professor of Economics, who has cast light on the dark side of capitalism, Danny Leipziger, Growth Dialogue Managing Director, and Mark Buchanan, who looked at complex social phenomena from a scientific view through his books. South Korea’s former Prime Minister Han Deok-su will also participate in the session as a panelist to analyze the current state of Korea’s inequality and suggest solutions.

◆ Prospect of global oil price in 2016

Global oil prices, which once surged to $140 a barrel in 2008, are lately hovering between $40 and $50. While many assume that the era of high oil prices of over $100 a barrel has ended, some believe that global oil prices have finally bottomed out. In the session of “2016 Energy Outlook,” participants including Tim Gould, International Energy Agency Head of Unit, Resources and Investment, and Aldo Flores-Quiroga, IEF Secretary General, will discuss how long oil prices would remain low and how much global oil prices would affect the global economy. Tatina Mitrova, Energy Research Institute Russian Academy of Sciences Head of Oil and Gas Department that plays a dominant role in the international energy market, will also take part in the session.

The session of “Energy War: Conventional Oil vs. Shale Oil” is another interesting session. The shale revolution that started by the U.S. in the 2000s has emerged as a game changer in the energy sector, threatening traditional oil powers. Experts from the U.S., China, Russia and Japan will have in-depth discussion on how the competition between the existing oil producing countries and the shale producers to capture the energy market worth $7 trillion would affect on the global economy. Breitling Energy CEO Chris Faulkner will analyze the current state of the U.S. shale industry, while Chen Weidong, China National Offshore Oil Corporation (CNOOC) Chief Economist, and Ken Koyama, the Institute of Energy Economics, Japan (IEEJ) Chief Economist & Managing Director, will look into the current state of the global energy market.

◆ Cities drive the world

At the forum, there will be head-to-head debate between leaders from two mega cities with populations of 10 million or more - Seoul and Tokyo. How to enhance a city’s competitiveness is the challenge facing cities around the world.

Tokyo Governor Yoichi Masuzoe, who has been leading a major transformation of the city for the upcoming 2020 Tokyo Olympics, pushes for high-density development strategy, marked by high-rise multi-tenant buildings housing business, residence and culture together.

Mr. Masuzoe, who has advanced Tokyo the world’s best city, will talk about Tokyo’s vision at the session “Cities Drive the World.” Park Won-soon, Mayer of Seoul, will be joining the session to share visions of city development and talk about how to boost cooperation between the two cities. They will also discuss how the cooperation of two cities could lead to enhanced cooperation between Korea and Japan.

◆ G2 War: China struggling to be global rule setter

G2 nations, namely the U.S. and China, are fighting for global hegemony to set the geoeconomical orders and global standards.

To counter the U.S., which is shifting its diplomacy and military focus to Asia, China has taken “One Belt One Road” initiative to build a new Silk Road connecting lands and seas of Eurasia. The future of the world will be inevitably affected by the looming G2 war.

An array of well-known scholars from the U.S. and China will shed lights on the future of the G2 war at the session titled ‘The G2 War: China, the New Global Rule-Setter.” South Korea’s former Foreign Minister Han Seung-joon will be the moderator, while Angang Hu, Tsinghua University professor, Christopher Hill, Dean of University of Denver and John Mearsheimer, University of Chicago professor enlighten the occasion.

The session ‘The G2 War: Fight for Economic Hegemony” will invite Sung Taeyoon, Yonsei University professor as a moderator. Also on the panel list includes Eswar Prasad, Cornell University professor, Sihai Lei, Chief Commentator at China Radio International and Liping He, Beijing Normal University professor.

◆ Unification of two Koreas

Unification is not a vision but a reality. The unification of East and West Germany is the case in point. The Korea Development Institute estimated about $3 trillion will be required for the unification of two Koreas between 2020 and 2030, while the Congressional Budget Office of Korea projected about 4.7 trillion won ($4.1 billion) for the next 45 years.

On the other hand, some claim that the benefits of the unification will far outweigh the burdensome unification costs. They argue that the unification will reduce military budget by resolving military tensions between the two Koreas and let the South to tap natural resources of the North.

But it remains a daunting task for South Korea because there is a lack of consensus about reunification and its cost in South Korea. The session titled “Financing the Unification of Korea,” will be moderated by National Pension Service CEO Choi Kwang and will offer participants to learn lessons from Germany’s unification from former German Minister of Finance Theo Waigel.

AXA Investment Managers S.A. Chairman Christof Kutscher and Kookmin University professor Andrei Lankov will seek the best option to finance the unification of the two Koreas. The session titled “What is North Korea headed” will offer insights into the current status of North Korea, possible scenarios following the regime’s collapse and necessary preparations. The panel list includes Chun Yungwoo, Chairman and Founder of Korean Peninsula Future Forum, Haruki Wada, Emeritus Professor at Tokyo University, and Thierry Montbrial, Executive Chairman at French Institute of International Relations.

By Park Bong-gwon, Chung Wook, Lim Sung-hyun