World elite gathers in Davos amid cautious optimism
DAVOS, Switzerland (AFP) – 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.
Some 45 world leaders will rub shoulders with around 2,500 lobbyists, journalists, captains of industry and economists in the picture-postcard Swiss 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 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 per cent of CEOs said they expected the world economy to decline further in 2013, against 48 per cent last year, while 52 per cent expected it to remain stable.
But only 36 per cent said they were “very confident” in their companies’ growth prospects in the next 12 months, down from 40 per cent last year and 48 per cent 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.
Organisers 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.