SHARE
COPY LINK

DAVOS

Get past ‘crisis fighting’, WEF founder urges

The world's political and business elite gather in the snow-covered resort of Davos from Wednesday, aiming to instil some confidence in the global economy amid tentative signs of recovery.

Get past 'crisis fighting', WEF founder urges
JP Morgan Chase CEO Jamie Dimon (left) and UBS Chairman Axel Weber at World Economic Forum banking session on Wednesday. Photo: Johannes Eisele/AFP

Some 45 world leaders will rub shoulders with around 2,500 lobbyists, journalists, captains of industry and economists in the picture-postcard Graubünden ski resort for the five-day annual meeting of the World Economic Forum (WEF).

The 2012 meeting was dominated by the euro crisis and fears Greece could be forced out of the eurozone, but this year's gathering is marked by a feeling of cautious optimism the worst may be over.

Opening the meeting, WEF founder and host Klaus Schwab, 74, called on delegates to turn the corner on the eurozone debt woes that have tipped the region into a recession.

"My hope is that you come out of the meeting with a vision which goes beyond just crisis management as we have seen, a vision that is much more dynamic, not just crisis fighting," Schwab said in his opening speech.

In one of the first sessions, JP Morgan Chase CEO Jamie Dimon said he felt the banking industry was beginning to turn the page on its difficult recent history.
   
"I think the industry has to come back from the past. I think a lot of companies are doing fine," he said.

"Banks continue to expand and lend."

In a major survey released by financial services firm PricewaterhouseCoopers Tuesday on the eve of the meeting's official opening, chief executives said they were marginally more optimistic on the global
economy.

Only 28 percent of CEOs said they expected the world economy to decline further in 2013, against 48 percent last year, while 52 percent expected it to remain stable.

But only 36 percent said they were "very confident" in their companies' growth prospects in the next 12 months, down from 40 percent last year and 48 percent in 2011.

Among the leaders set to address the forum are German Chancellor Angela Merkel, Russian Prime Minister Dmitry Medvedev, Italian Prime Minister Mario Monti and Britain's David Cameron.

Other top speakers centre-stage in the eurozone crisis are European Central Bank President Mario Draghi, who will speak on "challenges for the years to come", and the head of the International Monetary Fund, Christine Lagarde.

However, every year events conspire to hijack the agenda and this year is no different, with the conflict in Mali and the crisis in Syria poised to exercise the minds of the global elite.

Jordan's King Abdullah II was due to make a special address and the premiers of Egypt, Lebanon, Libya, Tunisia and the Palestinian Territories were scheduled to attend, as well as Israeli President Shimon Peres.

There is also a heavy African presence, with the leaders of South Africa and Nigeria attending a session on "de-risking" the continent on Wednesday.

Beside the leaders, more than 900 top business executives will attend, with this year's forum co-chaired by the CEOs of Coca-Cola, Embraer, UBS, Dow Chemical and the head of anti-graft watchdog Transparency International.

Organizers have chosen the theme "resilient dynamism", reflecting the need for an improvement in the structure of the global economy to resist sudden emergencies like the eurozone debt crisis.
   
Despite the presence of so many world leaders, no formal decisions are taken at Davos, although corporate deals are often sewn up on the sidelines and presidents and prime ministers huddle in small gatherings to thrash out pressing issues.
 
But it is not all top-level politics and head-spinning economics. Delegates are invited to early morning meditation sessions and there are lighter topics from the world of art, music and culture.
   
Among the 260 sessions spread over dozens of venues are also presentations on religion, science, media and health, including a dinner exploring possible cures for cancer and a session on "the past and future of the universe" by the head of top particle physics laboratory CERN.
   
The invitation-only meeting is also known for its informal luncheons and lavish cocktail parties, often hosted by corporate sponsors and with exclusive guest lists, where political and business leaders can rub shoulders and mingle.
   
Adding some Hollywood sparkle to the meeting before it officially got under way was actress Charlize Theron, who called on world leaders to do more to combat HIV/AIDS.
   
And pressure group Oxfam appealed for greater income equality, saying that the incomes of the top 100 billionaires last year alone would be enough to end world poverty four times over.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

DAVOS

Switzerland: 2021 Davos summit shifted to Lucerne in May

The World Economic Forum announced Wednesday that its postponed 2021 Davos summit, themed as "The Great Reset" in the coronavirus crisis, will take place in Lucerne, Switzerland from May 18 to 21.

Switzerland: 2021 Davos summit shifted to Lucerne in May
Participants at the World Economic Forum at Davos in 2020. Photo: FABRICE COFFRINI / AFP

The annual gathering of the world's political, economic and business elite traditionally takes place in January against the idyllic snowy backdrop of the Swiss Alpine village of Davos.

But it was postponed due to the Covid-19 pandemic and, charged with remodelling the world economy in the wake of the crisis, will now be held 125 kilometres (75 miles) away in the plush Burgenstock resort overlooking Lake Lucerne.

“The meeting will take place as long as all conditions are in place to guarantee the health and safety of participants and the host community,” WEF spokesman Adrian Monck said in a statement.

“The meeting will focus on the solutions required to address the world's most pressing challenges. “Global leaders will come together to design a common recovery path, to shape 'The Great Reset' in the post-Covid-19 era and rebuild a more cohesive and sustainable society.”

Hybrid format

The WEF announced in June that the 51st edition of its annual meeting would take place in a hybrid format, then in August said it was being delayed for several months to reduce any risks to participants from the coronavirus pandemic.

The Lucerne summit will combine both in-person and virtual elements, with participants linked to a network of around 400 hubs worldwide to incorporate dialogue with the WEF's “young global shapers, to ensure openness and inclusion”, said Monck.

The summit will be preceded during the week of January 25 by digitally-convened high-level “Davos Dialogues”, when global leaders will share their views on the state of the world in 2021.

The novel coronavirus has killed more than 1.04 million people while at least 35.5 million infections have been recorded since the outbreak emerged in China late last year, according to a tally from official sources compiled by AFP.

The pandemic has also triggered a global economic downturn, though the International Monetary Fund said Tuesday that while it is far from over, it will not be as bad as originally feared thanks to a flood of government spending.

The World Trade Organization said likewise, forecasting a global trade contraction of 9.2 percent this year, rather than its previous “optimistic scenario” prediction of 12.9 percent.

But global trade will then grow by only 7.2 percent next year, rather than the previous 21.3-percent estimate issued in April, the WTO added.

Swiss cases rising

The WEF announcement comes as Switzerland announced Wednesday that daily coronavirus cases had jumped over the 1,000-mark for the first time since April 1, when the peak of the pandemic's initial wave began to recede.

Swiss Health Minister Alain Berset has urged the country to “get a grip” and be more rigorous in applying the basic measures to control the spread of the virus.

The 2020 edition of the WEF summit, hosted in January just as the world was beginning to become aware of the new coronavirus spreading in China, drew more than 50 heads of state and government to Davos.

It focused on themes of sustainability and finding a more inclusive model for capitalism. US President Donald Trump and Swedish teenage eco-warrior Greta Thunberg were among its top speakers.

The WEF said it aims to be back in Davos for 2022.

SHOW COMMENTS