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Journalism of Courage
The double rolls of barbed wire surrounding the conference centre of the World Economic Forum at Davos are a troublesome metaphor. To some it represents global capitalism under siege, to others the great divide between rich and poor nations and between tech-savvy societies and others. Once a symbol of globalisation, Davos itself is falling out of fashion not because of the protesters without but because no one seems to have answers to the questions within. Attendance by political leaders and heads of corporations has fallen from its peak two or three years ago. The new Bush administration virtually ignored the gathering sending no members of the cabinet. Nor did European leaders show up although the prime minister of Japan did. Ironically, if the size of the Indian political and business delegation, one of the largest this year, is anything to go by, India retains a touching faith in Davos and global networking.
Nevertheless, this is evidently a juncture when governments and corporate leaders around the world are pausing to consider the best way forward. One question on everyone8217;s lips is, of course, what does the dramatic slowdown in the US economy mean for the rest of the world? Alan Greenspan has confirmed growth is close to zero just now, a sharp drop from the four per cent growth rate the Americans and the world have got used to. But theconsensus at Davos seems to be that an American recession is not in sight and that monetary and fiscal stimulation will ensure the slowdown will be shortlived. Comfort is also drawn from the fact that although the new economy has failed its gurus, the new technology has not and has indeed totally transformed the way companies are run and do business. As for global economic leadership, while the US is licking its wounds, an opportunity has arisen for Europe to shine. But can it show leadership in trying to find solutions to a range of globalisation issues from trade to poverty and the environment? On the whole, Europe is regarded with more ennui than hope largely because the current power struggle between major EU partners could distract its leaders from their global responsibilities. Also disconcerting is the view shared by many at Davos that multilateral institutions from the World Bank to UN agencies are not able to contribute to solutions.
