Global business, government leaders kick off World Economic Forum in Davos (AP) Updated: 2006-01-26 10:34
Global business and government leaders kicked off the annual meeting of the
World Economic Forum Wednesday, with an emphasis on using creativity to advance
commerce, find peace and ensure prosperity for all.
A gloomy forecast about the world economy greeted the leaders when Stephen S.
Roach, chief economist of Morgan Stanley financial services company, said
markets and officials had developed "a dangerous degree of complacency,"
assuming that an unbalanced world economy could continue without correction.
Asian central banks have helped to keep things going so far by supporting the
U.S. economy much longer than could be expected, Roach said.
The American consumer _ both "the weakest link" and the most important _ has
continued to drive the world economy by spending, according to Roach. But the
U.S. real estate "bubble" is showing signs of slowing down, with the key
indicator of home mortgage refinancing down 45 percent from peak levels a year
ago.
Later in the day, attendees were to discuss the emergence of China and India
as major players on the global stage.
Klaus Schwab, who started the Forum more than three decades ago, announced
Wednesday that he planned to start an annual meeting in China starting in the
summer of 2007.
"China will be the home of many of the companies" that are expected to emerge
on the global scene, Schwab told reporters. "In some way we are creating a
parallel World Economic Forum for the next generation of companies."
Also on tap was a candid discussion on the changing shift in jobs in the
future. With an estimated 1 billion workers from emerging economies joining the
global labor market, it has created both disruptions and opportunities.
Fifteen heads of state, top business leaders and celebrities like Bono
gathered in this exclusive Alpine resort this week to brainstorm on key issues
facing the globe: Iran's nuclear program, high oil prices, new business models
and the shifting balance of power in Asia.
German Chancellor Angela Merkel and Pakistan's President Pervez Musharraf are
among the world leaders attending this year, along with U.N. Secretary-General
Kofi Annan.
One of the top themes will be the emergence of China and India as true global
powerhouses economically and politically.
Though the forum falls on the Chinese lunar new year, several officials from
the country are making the visit to Davos, including Vice-Premier Zeng Peiyan.
More than 2,340 participants from 89 countries are attending, including 735
who are either chairmen, chief executives or chief financial officers of their
companies, the highest figure of corporate leaders ever, Forum officials said.
A new theme this year will be the role of sports in promoting economic growth
and fostering ties between countries. Among those scheduled to attend to discuss
sports are FIFA President Joseph Blatter; Jacques Rogge, president of the
International Olympic Committee; and David Stern, commissioner of the U.S.
National Basketball Association.
This year Davos welcomes U2 front man and debt relief advocate Bono;
Brazilian literary superstar Paulo Coelho; musician Peter Gabriel; and actress
Angelina Jolie, a goodwill ambassador for the United Nations.
Police, augmented by the Swiss military, have erected barricades and barbed
wire around the Alpine city and have imposed a no-fly zone in the
area.
|