WEBVTT 1 00:00:00.000 --> 00:00:03.167 (bright upbeat music) 2 00:00:08.100 --> 00:00:10.020 line:15% Hello. I'm Matt Schlueter, 3 00:00:10.020 --> 00:00:12.080 line:15% Managing Director and partner at BCG, 4 00:00:12.080 --> 00:00:13.710 line:15% and also BCG's global leader 5 00:00:13.710 --> 00:00:16.500 line:15% for our Defense and Security Sector practice. 6 00:00:16.500 --> 00:00:19.390 Today, we have the privilege to speak with Benedict Franke, 7 00:00:19.390 --> 00:00:22.583 CEO of the Munich Security Conference. 8 00:00:22.583 --> 00:00:24.470 The Munich Security Conference, or MSC, 9 00:00:24.470 --> 00:00:26.130 is the preeminent global forum 10 00:00:26.130 --> 00:00:28.450 to discuss defense and security. 11 00:00:28.450 --> 00:00:29.540 And just recently, 12 00:00:29.540 --> 00:00:31.360 BCG had the privilege 13 00:00:31.360 --> 00:00:33.470 to announce a formal partnership with MSC 14 00:00:33.470 --> 00:00:35.800 to support MSC style leadership, 15 00:00:35.800 --> 00:00:38.450 and also to help MSC convene the leading defense leaders 16 00:00:38.450 --> 00:00:39.540 from around the world 17 00:00:39.540 --> 00:00:43.130 to discuss today's most difficult security challenges. 18 00:00:43.130 --> 00:00:44.290 We are thrilled 19 00:00:44.290 --> 00:00:47.290 to be partnering with such a fantastic organization, 20 00:00:47.290 --> 00:00:50.340 and are excited to learn more from Benedict directly 21 00:00:50.340 --> 00:00:51.860 about the defense and security trends 22 00:00:51.860 --> 00:00:53.960 that MSC is facing today. 23 00:00:53.960 --> 00:00:55.840 Benedict, it's great to see you again. 24 00:00:55.840 --> 00:00:58.410 Welcome, and we look forward to speaking. 25 00:00:58.410 --> 00:01:01.030 Thank you so much Matt for having me this morning, 26 00:01:01.030 --> 00:01:02.310 for your warm welcome, 27 00:01:02.310 --> 00:01:03.570 and for your very kind words 28 00:01:03.570 --> 00:01:05.350 about the Munich Security Conference. 29 00:01:05.350 --> 00:01:07.320 And we are absolutely thrilled 30 00:01:07.320 --> 00:01:09.390 to be partnering with BCG- 31 00:01:09.390 --> 00:01:11.500 because it's industry partnerships like this one 32 00:01:11.500 --> 00:01:12.830 that keep us relevant, 33 00:01:12.830 --> 00:01:15.480 that keep us ahead of the curve in defense thinking. 34 00:01:16.430 --> 00:01:18.480 I can't wait for our discussion this morning, 35 00:01:18.480 --> 00:01:21.390 and what we can achieve together in the years to come. 36 00:01:21.390 --> 00:01:23.210 Thanks Benedict. 37 00:01:23.210 --> 00:01:26.270 You know, one area I think we've always appreciated 38 00:01:26.270 --> 00:01:28.260 is that MSC has been at the forefront 39 00:01:28.260 --> 00:01:29.900 of evolving defense trends, 40 00:01:29.900 --> 00:01:32.540 really for several decades now. 41 00:01:32.540 --> 00:01:34.040 So perhaps to start our discussion, 42 00:01:34.040 --> 00:01:35.530 you could spend a few minutes elaborating 43 00:01:35.530 --> 00:01:38.350 on how the conversations have evolved within MSC- 44 00:01:38.350 --> 00:01:40.530 from your founding in 1963, 45 00:01:40.530 --> 00:01:43.200 all the way to the challenges of today. 46 00:01:43.200 --> 00:01:44.700 You've already mentioned 47 00:01:44.700 --> 00:01:48.540 we started in the early 1960s as a small meeting 48 00:01:48.540 --> 00:01:51.070 across the Atlantic between German 49 00:01:51.070 --> 00:01:55.880 and American thought leaders, senators, representatives. 50 00:01:55.880 --> 00:01:57.700 We have now evolved into 51 00:01:57.700 --> 00:02:00.450 what we believe is a pretty global setup 52 00:02:00.450 --> 00:02:01.970 with dozens and dozens of meetings 53 00:02:01.970 --> 00:02:03.950 around the world every year, 54 00:02:03.950 --> 00:02:05.943 and about 500 leading participants 55 00:02:05.943 --> 00:02:09.260 at our main conference in Munich, every February. 56 00:02:09.260 --> 00:02:12.360 The topics that we are really discussing now 57 00:02:12.360 --> 00:02:14.830 aren't all that different from the topics 58 00:02:14.830 --> 00:02:17.210 that we've been discussing for the last 60-odd years. 59 00:02:17.210 --> 00:02:20.230 However, we really have become more global. 60 00:02:20.230 --> 00:02:21.710 Now we have participants 61 00:02:21.710 --> 00:02:24.310 from places like Brazil, India, 62 00:02:24.310 --> 00:02:27.330 the United Arab Emirates sitting side-by-side 63 00:02:27.330 --> 00:02:29.710 with heads of state and military leaders, 64 00:02:29.710 --> 00:02:33.190 with CEOs, academics, environmentalists, 65 00:02:33.190 --> 00:02:36.260 and the most influential thought leaders around the world 66 00:02:36.260 --> 00:02:38.500 to discuss the pressing issues of the day 67 00:02:38.500 --> 00:02:40.740 and to advance dialogue wherever we can. 68 00:02:40.740 --> 00:02:44.040 The ambition has stayed the same over the last 60 years. 69 00:02:44.040 --> 00:02:46.100 We want to be the world's best, 70 00:02:46.100 --> 00:02:49.170 most relevant, and most constructive platform 71 00:02:49.170 --> 00:02:51.400 on the debate of foreign and security policy. 72 00:02:51.400 --> 00:02:54.080 The challenges that we're looking at today 73 00:02:54.080 --> 00:02:57.210 really boil down to sort of three silos: 74 00:02:57.210 --> 00:03:00.090 There are the issues of global order. 75 00:03:00.090 --> 00:03:03.170 There are issues of defense and security. 76 00:03:03.170 --> 00:03:05.440 There are issues of human security, 77 00:03:05.440 --> 00:03:07.820 resilience, sustainability. 78 00:03:07.820 --> 00:03:10.210 You know, Benedict the one word 79 00:03:10.210 --> 00:03:11.570 that maybe really resonates with me 80 00:03:11.570 --> 00:03:13.890 from that MSC ambition that you just laid out 81 00:03:13.890 --> 00:03:15.100 is the word relevant. 82 00:03:15.100 --> 00:03:16.970 I would offer if there's one thing we've learned, 83 00:03:16.970 --> 00:03:20.200 and we've gotten to know MSC over the past few months, 84 00:03:20.200 --> 00:03:21.430 but there's one thing we've learned, 85 00:03:21.430 --> 00:03:23.850 it's clear that MSC has not shied away 86 00:03:23.850 --> 00:03:25.860 from taking on many of the big topics 87 00:03:25.860 --> 00:03:28.200 that defense ministries are facing today. 88 00:03:28.200 --> 00:03:32.190 These include AI, space, climate, cybersecurity, 89 00:03:32.190 --> 00:03:35.230 all of which you were extremely relevant on. 90 00:03:35.230 --> 00:03:36.700 In fact, as I understand, 91 00:03:36.700 --> 00:03:38.390 MSC has even set up separate working groups 92 00:03:38.390 --> 00:03:39.483 to address each one. 93 00:03:40.350 --> 00:03:41.540 So I think it would be helpful 94 00:03:41.540 --> 00:03:44.570 maybe for us to dive into those specifically 95 00:03:44.570 --> 00:03:46.020 to understand if you have further thoughts 96 00:03:46.020 --> 00:03:47.978 on each of these areas. 97 00:03:47.978 --> 00:03:50.720 Lots of thoughts and probably more than I can squeeze 98 00:03:50.720 --> 00:03:53.280 into this little conversation today, 99 00:03:53.280 --> 00:03:54.810 but I guess we've got many years 100 00:03:54.810 --> 00:03:56.640 to develop this conversation. 101 00:03:56.640 --> 00:03:58.260 For us, 102 00:03:58.260 --> 00:04:00.350 technology has taken up 103 00:04:00.350 --> 00:04:04.520 such an important part of our work 104 00:04:04.520 --> 00:04:05.710 of the last couple of years. 105 00:04:05.710 --> 00:04:09.320 We've gone from talking about cybersecurity 106 00:04:09.320 --> 00:04:13.730 as a new arena of a confrontation competitionm 107 00:04:13.730 --> 00:04:16.180 to really looking at technology 108 00:04:16.180 --> 00:04:18.600 as a driver of conflict, 109 00:04:18.600 --> 00:04:20.180 as a new pedal space, 110 00:04:20.180 --> 00:04:25.180 but also as a new way to look at possible solutions 111 00:04:25.210 --> 00:04:26.630 to huge challenges. 112 00:04:26.630 --> 00:04:29.820 When we look at what really drives change 113 00:04:29.820 --> 00:04:31.410 in the defense sector, 114 00:04:31.410 --> 00:04:32.780 it is technology. 115 00:04:32.780 --> 00:04:37.780 And we are absolutely focused currently on 116 00:04:40.020 --> 00:04:43.320 the capacity of the public sector, 117 00:04:43.320 --> 00:04:47.940 of defense ministries, of the military to innovate 118 00:04:47.940 --> 00:04:50.290 and to align this innovation 119 00:04:50.290 --> 00:04:52.600 across our various alliances. 120 00:04:52.600 --> 00:04:54.670 And I think those are two issues 121 00:04:54.670 --> 00:04:58.530 that we have to get much better at in the west, 122 00:04:58.530 --> 00:05:01.171 and that we have to get much better at globally. 123 00:05:01.171 --> 00:05:05.510 We are not as good in innovating as we believe we are, 124 00:05:05.510 --> 00:05:10.010 and we are certainly not as good as we think we are 125 00:05:10.010 --> 00:05:14.240 on coordinating these innovations across the alliances. 126 00:05:14.240 --> 00:05:15.740 And so those are two sort of, 127 00:05:15.740 --> 00:05:19.280 geopolitical angles to industry issues 128 00:05:19.280 --> 00:05:21.510 that we're looking at right now. 129 00:05:21.510 --> 00:05:24.630 Benedict, I'm glad you brought up innovation 130 00:05:24.630 --> 00:05:26.160 because I think it's one area that clearly 131 00:05:26.160 --> 00:05:29.290 industry has a role where we can help support. 132 00:05:29.290 --> 00:05:30.540 And you also mentioned in your comments 133 00:05:30.540 --> 00:05:32.050 the role that MSC is playing to help 134 00:05:32.050 --> 00:05:34.650 different alliances coordinating innovation. 135 00:05:34.650 --> 00:05:36.080 But maybe you could spend a few minutes 136 00:05:36.080 --> 00:05:38.250 talking about the relationship and coordination 137 00:05:38.250 --> 00:05:40.130 between industry and the public sector, 138 00:05:40.130 --> 00:05:40.970 specifically 139 00:05:40.970 --> 00:05:42.870 how do you see industry's role to support 140 00:05:42.870 --> 00:05:45.411 innovation in the public sector we are at large? 141 00:05:45.411 --> 00:05:48.090 What the public sector needs 142 00:05:48.090 --> 00:05:51.060 is the private sector capacity to innovate, 143 00:05:51.060 --> 00:05:52.590 we've seen that all over the place. 144 00:05:52.590 --> 00:05:53.910 We've seen that most recently 145 00:05:53.910 --> 00:05:56.550 in the development of vaccines. 146 00:05:56.550 --> 00:05:57.660 But behind the scenes, 147 00:05:57.660 --> 00:06:00.670 we've also seen it in the areas of cybersecurity. 148 00:06:00.670 --> 00:06:05.670 Espionage- you've just recently heard about the Pegasus 149 00:06:05.675 --> 00:06:10.532 issue where an Israeli company has provided espionage 150 00:06:10.532 --> 00:06:14.270 software to selected governments around the world. 151 00:06:14.270 --> 00:06:18.120 The private sector has become a crucial aspect 152 00:06:18.120 --> 00:06:22.570 of military strategy, military outreach, 153 00:06:22.570 --> 00:06:24.430 and defense doctrine across the world 154 00:06:24.430 --> 00:06:25.860 and particularly in the west. 155 00:06:25.860 --> 00:06:30.150 And what we are really excited about is the question 156 00:06:30.150 --> 00:06:33.350 how do you get the public sector and the private sector 157 00:06:33.350 --> 00:06:35.770 to operate more efficiently? 158 00:06:35.770 --> 00:06:39.160 How can the private sector draw attention 159 00:06:39.160 --> 00:06:43.370 to problems down the line earlier and louder? 160 00:06:43.370 --> 00:06:46.610 Let me just raise the 5G example 161 00:06:46.610 --> 00:06:49.410 as an issue where industry was aware of 162 00:06:49.410 --> 00:06:53.590 the inherent problems in setting this new standup. 163 00:06:53.590 --> 00:06:56.170 But the public sector- 164 00:06:56.170 --> 00:06:58.400 especially the high political level- 165 00:06:58.400 --> 00:07:01.080 just ignored the problem until it was too late. 166 00:07:01.080 --> 00:07:02.564 So we at the Munich Security Conference 167 00:07:02.564 --> 00:07:06.280 are working very hard with our industry partners 168 00:07:06.280 --> 00:07:11.100 to raise questions like which standards to go for early 169 00:07:11.100 --> 00:07:16.100 and continuously to ensure that the debate doesn't derail 170 00:07:16.340 --> 00:07:20.000 when it's far too late or in fact it doesn't derail at all. 171 00:07:20.000 --> 00:07:22.750 And we're also excited to see 172 00:07:22.750 --> 00:07:26.450 what the public sector can learn from private sector 173 00:07:26.450 --> 00:07:29.710 innovation, processes, capacities, 174 00:07:29.710 --> 00:07:32.710 and how we can synchronize 175 00:07:32.710 --> 00:07:35.670 and create synergies between private sectors 176 00:07:35.670 --> 00:07:39.450 and public sectors across the west and globally. 177 00:07:39.450 --> 00:07:41.130 Thanks Benedict. 178 00:07:41.130 --> 00:07:43.080 As I reflect over the challenges 179 00:07:43.080 --> 00:07:43.913 of the past year, 180 00:07:43.913 --> 00:07:46.110 I have to commend the MSC with what you've done 181 00:07:46.110 --> 00:07:48.210 to still bring defense leaders together virtually 182 00:07:48.210 --> 00:07:50.070 through your Road to Munich campaign 183 00:07:50.070 --> 00:07:53.270 and all the various virtual events that you've supported. 184 00:07:53.270 --> 00:07:54.610 So as the world looks to open up, 185 00:07:54.610 --> 00:07:55.590 can you talk a little bit about 186 00:07:55.590 --> 00:07:58.610 what the next few months look like for MSC, 187 00:07:58.610 --> 00:08:00.490 and what big events you have planned? 188 00:08:00.490 --> 00:08:03.100 Yeah, it was a really difficult year for us- 189 00:08:03.100 --> 00:08:04.980 really difficult year and a half- 190 00:08:04.980 --> 00:08:06.280 and we're an organization 191 00:08:06.280 --> 00:08:09.520 that thrives on physical meetings, 192 00:08:09.520 --> 00:08:11.390 on intimate atmospheres, 193 00:08:11.390 --> 00:08:14.690 on conversation among the most powerful people, 194 00:08:14.690 --> 00:08:17.250 and that was very difficult to arrange 195 00:08:17.250 --> 00:08:18.500 over the last year and a half. 196 00:08:18.500 --> 00:08:21.580 However, we have started what we called 197 00:08:21.580 --> 00:08:23.460 the Road to Munich campaign 198 00:08:23.460 --> 00:08:25.040 that is supposed to lead up 199 00:08:25.040 --> 00:08:27.710 to the Munich Security Conference 2022 200 00:08:27.710 --> 00:08:29.740 in February of next year, 201 00:08:29.740 --> 00:08:34.740 and we have selected the transatlantic relationship 202 00:08:35.260 --> 00:08:39.200 as the core issue in this Road to Munich campaign. 203 00:08:39.200 --> 00:08:41.170 What we're really, really interested in 204 00:08:41.170 --> 00:08:45.470 is to map out the building sites and the relationship. 205 00:08:45.470 --> 00:08:46.600 And there are many. 206 00:08:46.600 --> 00:08:47.980 There are those that believe 207 00:08:47.980 --> 00:08:51.440 that with the Biden administration having come to power, 208 00:08:51.440 --> 00:08:53.286 all the billing sites have suddenly disappeared 209 00:08:53.286 --> 00:08:58.286 and it's almost a paradise once again. 210 00:08:58.410 --> 00:09:01.270 And yes, the tone has improved, 211 00:09:01.270 --> 00:09:03.350 but the building sites are still there. 212 00:09:03.350 --> 00:09:05.150 And with the Road to Munich, 213 00:09:05.150 --> 00:09:07.730 we have already looked at many important buildings sites, 214 00:09:07.730 --> 00:09:09.470 like Nord Stream 2, 215 00:09:09.470 --> 00:09:12.460 like the joint technology agenda, 216 00:09:12.460 --> 00:09:15.200 like digital trust, 217 00:09:15.200 --> 00:09:18.450 like issues like military sovereignty, 218 00:09:18.450 --> 00:09:20.630 military autonomy in Europe, 219 00:09:20.630 --> 00:09:22.940 the relationship between the NATO pillar 220 00:09:22.940 --> 00:09:24.350 in European defense 221 00:09:24.350 --> 00:09:27.250 and the European pillar in European defense. 222 00:09:27.250 --> 00:09:30.300 And we will continue to look at these building sites 223 00:09:30.300 --> 00:09:31.530 and map them out 224 00:09:31.530 --> 00:09:35.070 in order to present a list of action items 225 00:09:35.070 --> 00:09:37.200 at the next Munich Security Conference. 226 00:09:37.200 --> 00:09:41.000 What we really want to do is to showcase 227 00:09:41.000 --> 00:09:43.420 the low-hanging fruits out there, 228 00:09:43.420 --> 00:09:44.730 and to draw attention 229 00:09:44.730 --> 00:09:47.090 to the really, really difficult challenges 230 00:09:47.090 --> 00:09:49.100 and see whether we can't make 231 00:09:49.100 --> 00:09:52.830 some progress now that we have important elections 232 00:09:52.830 --> 00:09:53.810 in Europe coming up. 233 00:09:53.810 --> 00:09:56.290 The German elections in September of this year 234 00:09:56.290 --> 00:09:59.350 may provide yet another window of opportunity 235 00:09:59.350 --> 00:10:03.020 to tackle some of these challenges early on. 236 00:10:03.020 --> 00:10:07.000 And so you will see us going to Seattle and to Washington, 237 00:10:07.000 --> 00:10:10.180 you will see us looking at east west relationships again, 238 00:10:10.180 --> 00:10:13.380 you will see us looking at vaccine distribution, 239 00:10:13.380 --> 00:10:15.170 but also at some regional challenges 240 00:10:15.170 --> 00:10:18.160 like Yemen, Western Sahara, 241 00:10:18.160 --> 00:10:22.310 European periphery, Belarus, and Ukraine. 242 00:10:22.310 --> 00:10:24.890 All of these are very important building sites 243 00:10:24.890 --> 00:10:27.190 in our relationship with the United States, 244 00:10:27.190 --> 00:10:31.020 and many of those we believe can be solved 245 00:10:31.020 --> 00:10:34.180 if we slim down the issue 246 00:10:34.180 --> 00:10:38.950 and make it even clearer what the right policy 247 00:10:38.950 --> 00:10:41.120 responses to these challenges are 248 00:10:41.120 --> 00:10:43.070 and draw attention to the need 249 00:10:43.070 --> 00:10:46.870 for European and American agendas to be aligned, 250 00:10:46.870 --> 00:10:50.300 synchronized, and driven ahead simultaneously. 251 00:10:50.300 --> 00:10:51.950 Thanks Benedict. 252 00:10:51.950 --> 00:10:54.340 I know we only had a few minutes to speak, 253 00:10:54.340 --> 00:10:57.750 but let me just close by saying it's a very inspiring agenda 254 00:10:57.750 --> 00:10:59.480 and we're really excited to be a part of it, 255 00:10:59.480 --> 00:11:01.110 to be supportive of MSC, 256 00:11:01.110 --> 00:11:02.420 and we're very excited 257 00:11:02.420 --> 00:11:05.083 about the MSC and BCG partnership going forward. 258 00:11:05.920 --> 00:11:08.300 We look forward to hopefully seeing you very soon in person 259 00:11:08.300 --> 00:11:09.340 at the next event, 260 00:11:09.340 --> 00:11:11.110 and we really appreciate that you spent some time 261 00:11:11.110 --> 00:11:13.700 to join us today and share your MSCs agenda 262 00:11:13.700 --> 00:11:15.700 and the exciting things that MSC is doing. 263 00:11:15.700 --> 00:11:17.040 As always, thanks Benedict, 264 00:11:17.040 --> 00:11:18.325 really appreciate your time. 265 00:11:18.325 --> 00:11:20.400 Thank you so much for having me, 266 00:11:20.400 --> 00:11:23.350 I can't wait to get started with our knowledge partnership 267 00:11:23.350 --> 00:11:25.910 and look at some of the important issues 268 00:11:25.910 --> 00:11:27.480 on our agenda together. 269 00:11:27.480 --> 00:11:29.110 Many thanks for having me Matt. 270 00:11:29.110 --> 00:11:30.698 Thank you Benedict, take care. 271 00:11:30.698 --> 00:11:33.865 (bright upbeat music)