Edition 42 number of World Economic Forum in the Swiss ski resort of Davos takes place from 25-29 January 2012. Among the participants (over 2000) in the debate, as usual, are heads of state, central bank governors and several presidents of the leading companies in the world. With protesters camped at an igloo near the snowy meeting venue, pressure is on the VIPs at this year’s forum to take workers’ fears into account as they discuss the world’s economic problems. The Occupy movement and other protests have drawn global attention to anger over inequality, stubbornly high unemployment in many areas, and increasing poverty. The Occupy movement, which went global after protests against Wall Street last year, is camping in igloos to bring its argument with the super-rich “1 percent” to Davos. “At meetings the rest of society is excluded from, this powerful ’1 percent’ negotiates and decides about the fate of the other 99 percent of this world,” says David Roth, “Camp Igloo” organiser and head of the Swiss centre-left’s youth wing. “The economic and financial concentration of power in a small, privileged minority leads to a dictatorship over the rest of us. The motto ‘one person, one vote’ is no longer valid, but ‘one dollar, one vote’. We want to change that” he added, quoted by Huffington Post. Using the weather to their advantage, protesters are carving out blocks of snow and shaping them into igloos. Not missing any banners: Occupy World Economic Forum !
While the bigwigs debated at Davos, key Greek bondholders were holding closed-door meetings in Paris to discuss how — and whether — to continue talks central to Europe’s debt crisis, a person close to the bondholders said, quoted by Reuters.
Euro area sovereign debt crisis and its impact on the world economy will be the main topic of debates. Also, on agenda of talks is likely to be China’s economic rise, the rules imposed on financial systems and practical effects of the protests that have affected the whole country during the previous year and the begin of 2012. Despite the fact that Germany reported a greater then expected rise in bussines confidence, prospects are bleak (later Wednesday, German Chancellor Angela Merkel may chart her course for Europe’s crisis in her keynote speech at the Davos forum). Surveys ahead of the meeting showed pessimism among world CEOs and plunging levels of public trust in business and government leaders, feeding the overall sense of fragility in the U.S. and European economies, and concerns that it will bring the whole world’s economy down. Fear among international experts of a major geopolitical disruption over the next 12 months has risen significantly to 54%, just as confidence in the state of global cooperation has dropped, according to the World Economic Forum’s third Global Confidence Index.
From composition of this horror and funambulistic landscape could not miss the messangers of Apocalypse. U.S. billionaire George Soros warns that in the next period will follow a financial disaster and will lead a fierce struggle between the political classes, according to journalists in Bussines Insider. The financial system is collapsing, and the developed world is fast falling into a “deflationary debt trap” he reiterated. At a lunch on the sidelines of the World Economic Forum, Soros told journalists that European authorities “had done everything wrong” in their response to the financial crisis that struck in 2007, with a confused policy response that betrayed widespread ignorance of how financial markets work. The financier compared the crisis to the collapse of the Soviet empire and the Great Depression, adding that the old belief in the power of the market to prevent turmoil could no longer be relied upon. “The best-case scenario is a deflationary environment. The worst-case scenario is a collapse of the financial system. We need to move from the Age of Reason to the Age of Fallibility in order to have a proper understanding of the problems” said Soros. Another usual shocking statements were made by “Doctor Doom”, Nouriel Roubini. “There is no real decoupling… there is a recession right now in the periphery euro zone” Roubini said in an interview at the World Economic Forum in Davos. “There’s a recession throughout Europe, US growth is very anemic. There is a slowdown right now in China” he added.
Is good to know: A non-VIP invitation costs at least 71,000 dollars, while access toprivate meetings, the cost starts at 156,000 dollars, writesReuters.
“Strategic partnership” of the event, such as Goldman Sachs and Bank of America, paid 527,000 dollars for membership and19,000 dollars for each call, up to five.
Among the “strategic partners” are found ArcelorMittal, ABB, Bill& Melinda Gates Foundation, Coca-Cola, Deutsche Bank, GDF Suez, Google, Intel, JPMorgan, Lukoil, Microsoft, Metro, Nike, PepsiCo, Renault-Nissan, Sberbank, Thomson Reuters and Volkswagen.