Troubled by the limp dollar and facing calls to do more to curb poverty and climate change, more than 2 000 political and business leaders have convened on Wednesday in the Swiss resort of Davos to talk, network and ponder the world’s pressing problems.
The yearly World Economic Forum, a corporate schmoozer’s dream nestled in the Swiss Alps, began with a sharp rebuke to ”self-indulgent” United States consumers threatening global growth at one of the first of several hundred discussion panels.
Later on Wednesday, British Prime Minister Tony Blair was to deliver a formal opening speech on the need to control climate change, while President Jacques Chirac of France was set to push a plan for an international solidarity tax — although he was to deliver his address by video conference because heavy snow prevented him from attending.
Other themes during the World Economic Forum, which runs until Sunday, range from the Middle East and China’s growing clout to ethical dilemmas caused by globalisation.
This year’s gathering clashes with the World Social Forum in Porto Alegre, Brazil, a conference of greens, economists, libertarians and union activists usually at odds with the liberal, free-market approach favoured at Davos.
Organisers brag that Davos offers an unprecedented opportunity for leaders to thrash out solutions, although much of the draw of the forum is the chance to network away from the public stage.
”There are many things to be discussed, but I hope by the end of the meeting we have some pragmatic solutions that each one of us in his or her area of responsibility can implement,” said Daniel Vasella, chief executive of Swiss pharmaceutical giant Novartis and a co-chairperson of the 2005 meeting.
Blair was set to call for more concerted action to stem rising temperatures caused by greenhouse gases, one of the key themes of Britain’s presidency of the Group of Eight (G8) industrialised nations.
On Tuesday, scientists from nine nations involved in a climate-change task force warned that if governments do not respond rapidly, widespread droughts, crop failure and water shortages will lead to economic, social and political crises.
On Thursday, Blair is also to examine relations between rich countries and Africa with former US president Bill Clinton, presidents Thabo Mbeki of South Africa and Olusegun Obasanjo of Nigeria and Irish pop star Bono.
Chirac, who would have been the first French leader to join the Davos meeting, was expected in his video appearance to relaunch a proposal for some form of levy — ideas for tax targets range from capital movements to credit-card purchases — to fund development.
While the idea is supported by the likes of Brazil but fiercely opposed by the US, Chirac hopes it will receive a more positive response in a new climate of global solidarity after the Indian Ocean tsunami disaster.
Fred Sicre, one of the forum’s managing directors, said he detects a new mood in the political and business world.
”After two years of polarisation over Iraq, and then the tsunami, I think there’s a mood of looking at more debt relief, at assistance. The message is, exchange ideas, but then let’s take some action,” he said.
An early exchange was on the US economy, as Morgan Stanley chief economist Stephen Roach branded credit-laden US consumers as ”an accident waiting to happen”.
Calling for a US interest-rate rise, he said the US Federal Reserve is ”in denial” about global economic reliance on US consumer credit and Asian current account surpluses.
The Davos A-list includes new stars such as President Viktor Yushchenko of Ukraine and Palestinian chief Mahmud Abbas, while Executive Vice-Premier Huang Ju will symbolise China’s growing global presence.
The US presence is low key, with Trade Representative Robert Zoellick the highest-level figure, partly because Davos clashes with confirmation hearings for the second-term US administration.
Switzerland has mobilised up to 5 000 troops, a squadron of F-18 fighters and 50 helicopters to protect the well-heeled and well-connected, who include actors Sharon Stone, Angelina Jolie and Richard Gere on the celebrity side.
However, anti-globalisation activists have permission to protest what they see as a celebration of free-market capitalism. — Sapa-AFP