Davos elite warned over protectionism, climate change
Pastor Dale Morgan
Thursday January 25, 3:52 AM
*Davos elite warned over protectionism, climate change*
German Chancellor Angela Merkel lectured global leaders on the perils of
protectionism, as the annual Davos forum kicked off with bullish
predictions on growth but warnings about global warming.
In her keynote speech opening the annual gathering of world movers and
shakers at the Alpine ski resort, Merkel staunchly rejected
protectionism as a solution to the economic and social challenges of
globalisation, saying that free trade was essential for economic growth.
In the capacity of Germany's presidency of the European Union and G8
industrialised nations, Merkel cautioned that some developed countries
might be tempted to confront globalisation by selfishly consuming global
resources and setting up customs barriers to protect "their own weaknesses".
"My clear and succinct answer is: No!" Merkel told the gathering.
In a wide-ranging address, the German leader called for greater
flexibility from all sides to resolve the blocked Doha round of world
trade talks and stressed the need for a binding global pact on carbon
emissions.
Merkel's audience contained a healthy quota of the impressive Davos
guest list that includes the likes of Microsoft founder Bill Gates and
British Prime Minister Tony Blair.
This year's theme -- "The Shifting Power Equation" -- sought to take in
everything from the growing geopolitical clout of Asia to the increasing
influence of the Internet in business and information gathering.
"We have a shift of power in many ways ... with the rise of China and
India, and the next layer of countries like Vietnam, Brazil and Korea,"
said World Economic Forum founder Klaus Schwab.
"At the same time we see the shift of power from business leaders to
customers and shareholders," Schwab said.
The 2,400 registered participants at Davos included some 800 corporate
chief executives or chairmen, 24 heads of state or government and 85
cabinet ministers.
Business leaders were in upbeat mood about prospects for 2007 and
beyond, amid strong corporate profits and forecasts for another year of
global expansion, despite a predicted slowdown in the United States.
A poll of Davos participants by the organisers showed that 65 percent of
corporate chiefs and politicians thought their children would live in a
more prosperous world.
An unusual lack of snow in the run-up to this year's Forum helped to
highlight the issue of climate change, and there was a cautious welcome
for US President George Bush's proposals for a long-term cut in US
gasoline consumption.
"I think it is a movement in the right direction. There is a recognition
of the link between climate change and human activity," said Nicholas
Stern, the British government's chief economic advisor.
Stern recently penned a major report that warned of the dire economic
consequences of global warming change unless swift action was taken.
Merkel described Bush's proposal as "sensible" but pressed Washington to
commit to an international treaty on curbing carbon emissions.
The theme of shifting spheres of influence at Davos was party reflected
in the absence of big name US officials, while India sent a high-profile
100-member delegation and the prime minister of Vietnam, Nguyen Tan Dung
-- the newest member of the World Trade Organisation -- was due to show up.
Another notable "shift" was the lack of celebrities.
With the exception of pop icon Bono, a Davos regular, famous names from
the world of entertainment were scarce on the ground compared to
previous years when the likes of Angelina Jolie, Brad Pitt and Sharon
Stone stole the media spotlight from the corporate bigwigs and political
leaders.
"It is not our policy to invite stars," Schwab explained. "It is our
policy to invite people who can make contributions to specific sessions."
Blair, making probably his last appearance at the Forum, was to line up
on Friday alongside Bono, South African President Thabo Mbeki, Microsoft
founder Bill Gates and Liberian President Ellen Johnson Sirleaf to press
home a message about delivering on the promises of aid to Africa.
Security was tight around the ski resort, although protests by
anti-globalisation groups were expected to be minimal given the ease of
controlling access to the isolated venue.