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Global crisis talks move to Davos

2009-01-27 06:38:22

By Tim Weber

Business editor, BBC News website

Wars. Economic turmoil. Global poverty. The agenda is packed as more than 2,500

of the world's top business leaders and politicians come to the Swiss mountain

village of Davos to attend the World Economic Forum, which starts this

Wednesday.

The organisers are not bashful. This could be "one of the most important"

annual meetings of the forum yet, they predict.

And they have a point. The annual Davos event - this year with participants

from over 90 countries - is not only a good opportunity to get a feel for the

global economy and political balance of power.

To participants it also offers a chance to step back and take stock of crisis

and conflict, and gather ideas for tackling the world's problems.

The forum's "theme" this year is fitting: shaping the post-crisis world.

The participants are taking to it with a vengeance, if the forum's new system

for reserving a place at sessions is any guide.

The first batch of tickets for sessions about the economic crisis was snapped

up within 10 minutes after the booking website opened.

Humble pie

Critics, however, will point out that many of these problems were actually

caused by the powerful elite that flocks to Davos every year.

And with plenty of social activists in attendance, the event is also likely to

bring some reckoning, contrition, and large helpings of humble pie.

Philip Jennings, general secretary of global trade union UNI, said "we would

not give a bonus to a factory worker who destroys the production line or a

programmer who introduces a bug into software, yet all these bankers are being

rewarded for watching while the industry ran headlong into a meltdown".

Global leaders

Last January, as the first financial institutions suffered, most bankers had

lost their exuberance and could be found huddled together to discuss the

unfolding economic crisis.

This year, the bosses of hedge funds and private equity firms will have lost

their swagger as well.

Still, the forum continues to be a top attraction for the rich and powerful.

Russian Prime Minister Vladimir Putin will be there and give a keynote speech,

as will Chinese Premier Wen Jiabao.

All the world's top banks and industry giants will be represented, and a record

number of heads of state and government from around the world.

Absent friends

But there will be notable absentees.

One Davos regular was Richard Fuld, the boss of collapsed investment bank

Lehman Brothers. He is not on this year's list of participants, as is a raft of

other bankers who found themselves on the wrong side of the credit crunch.

Missing as well, and suffering the close attention of Indian authorities, is

Ramalinga Raju, the founder and chairman of IT services giant Satyam, who

recently admitted that he cooked the books to the tune of more than $1bn.

Mr Raju was a prominent supporter of the World Economic Forum.

More importantly, President Obama has ordered several key US officials to stay

at home and tackle economic and political flashpoints.

Top economic adviser and Davos regular Lawrence Summers will stay in

Washington. Tim Geithner is still awaiting his confirmation as new treasury

secretary. US Fed boss Ben Bernanke will give Davos a miss.

Even National Security Adviser James L Jones has been told to stay at home.

As a result, the voice of the US government will be somewhat muted in Davos,

and participants will sorely miss the input of heavy hitters like Mr Summers

and Mr Geithner.

Getting serious

Overall, though, the organisers of the not-for-profit World Economic Forum are

not short of participants. The number of top politicians seeking to come to

this valley in the Swiss mountains and hoping to get a grip on the crisis has

nearly doubled.

It is probably a sign of the times. Unfettered free-market capitalism dominated

is out, government regulation is back in.

It is all part of the trend for a more serious and less glitzy Davos. The forum

is a key opportunity for networking, but the number and scale of the

all-important parties that are the staple of Davos nights is coming down.

Even Goldman Sachs, the banking giant that managed to avoid the worst of the

crisis, has cancelled its Davos party.

The new seriousness is reflected in the guest list.

During the past few years already, the organisers cut down on the numbers of

campaigning Hollywood stars coming to Davos. Anti-poverty campaigner and Davos

regular Bono is expected to come again, as is human rights activist and former

rock star Peter Gabriel.

Overall, Davos 2009 is bound to be a much more serious and frugal affair - as

frugal as a meeting of the world's multi-millionaires and billionaires can get.

Hard topics

As always, the forum's agenda is packed with an eclectic mix of sessions.

There will be bread-and-butter issues like the state of the economy and the

crisis in the Middle East.

Participants will discuss how corporations can "turn the corner", will dissect

the "36 hours in September" when the credit crunch turned into financial

meltdown.

Deforestation and the global lack of fresh water are on the agenda, and whether

the environment will lose out to the economy.

But there are also lighter items, for example leadership lessons for managers

based Shakespeare's Macbeth.