SWITZERLAND: Mood of cautious optimism at the annual World Economic Forum (WEF) in Davos

Record ID: 335379

  • Title: SWITZERLAND: Mood of cautious optimism at the annual World Economic Forum (WEF) in Davos
  • Date: 23rd January 2013
  • Summary: DAVOS, SWITZERLAND (JANUARY 23 , 2013) (REUTERS) SUN RISING OVER MOUNTAINS OVERLOOKING DAVOS WORLD ECONOMIC FORUM (WEF) PARTICIPANTS ARRIVING ON FOOT VARIOUS OF PEOPLE IN STREET (SOUNDBITE) (English) ECONOMIST, JOHN LIPSKY, SAYING: "The G20 created a mutual assessment process under the framework for strong, sustainable and balanced growth. That effort has been continued a
  • Embargoed: 7th February 2013 12:00
  • Keywords:
  • Location: Switzerland
  • Country: Switzerland
  • Topics: International Relations,Economy,Politics
  • Reuters ID: LVA62SY3FI2V9ZSXQ9RKD7OIVSYC
  • Story Text: The world's political and business elite began the World Economic Forum in Davos on Wednesday (January 23) in a mood described by one delegate as "subdued optimism".
    The first full day of sessions at the WEF's annual gathering brought together many of the more than 1,500 business leaders and up to 50 heads of state or government set to attend the four-day event.
    This year's WEF message of 'resilient dynamism' is a bid to move on from years of economic crisis management. But many delegates voiced concern over the lack of leadership in addressing global issues.
    "The G20 created a mutual assessment process under the framework for strong sustainable and balanced growth. That effort has been continued at a technical level but hardly anyone is aware of it because the leaders themselves have seemingly lacked a commitment to a common effort and a coherent policy effort to restore growth," said economist John Lipsky who is also Distinguished Visiting Scholar at Johns Hopkins University.
    Business leader Pierre Beaudoin, President and CEO of Bombardier said the outlook was looking brighter.
    "Certainly from a moving out of the crisis perspective, we feel the momentum building in the U.S. in terms of our products so if the U.S. is doing well, it certainly helps the rest of the world economy. We've been doing well in emerging countries but now that there is momentum being built in the U.S., I think that's very good," he told Reuters.
    Russian Prime Minister Dmitry Medvedev presented the key-note speech of the opening day, in recognition of Russia's current presidency of the G20.
    Deputy Prime Minister Arkady Dvorkovich outlined his country's priorities.
    "First, it's a traditional discussion about macro-economic stability and growth, how we should preserve stability and how we should stimulate growth and create jobs. Second, and this is a Russia-specific topic, is how to best establish debt management practices around the world and how to deal with fiscal strategies in the medium term perspective. We believe it is important," he said.
    Another speaker on the opening day is Italian Prime Minister Mario Monti, who faces an election battle next month.
    "Monti has decided to play the elector game, to enter into the electoral arena. He will be part, I'm sure, of the next phase in the management of the country and the country needs a very strong coalition because the kind of efforts and the kind of task we have to perform are so important, so difficult because the resistances are certainly significant, that we need a strong coalition," said Italian industry minister Corrado Passera.
    As for the overall mood; "Let's call it subdued optimism," said South African Finance Minister Pravin Gordhan, "But one that still has to pass the test of collective action and some level of consensus on what we need to do."
    Ahead of the WEF's opening, founder Klaus Schwab had talked about the need to put 'burned out' leaders back on track.
    A survey of 1,000 business leaders and academics conducted by the WEF ahead of the Davos meeting found they continue to fear a possible "systemic financial failure", largely due to unsustainable government finances.
    "Talking to a colleague just now from the States, she senses amongst leaders a sort of a fatigue that might have come over the last 10 years - I think perhaps from 9/11 - the sense of being on tenterhooks all the time, of there being big issues in the background and whether we are able to address that, and then the economic downturn coming on top of that," said Professor of Clinical Psychology at Oxford University, Mark Williams.
    But former Mexican President Felipe Calderon said he hoped the worst of the global financial crisis was over.
    "As usual there is a certain scepticism at the start because of the current situation, especially in Europe, but at the same time I think that the worst is over, behind us. Frankly I think that trust for the long term is coming back."
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