The Wen-Putin show

At Davos,a festival of pointed fingers,of attempts to deflect and assign blame. Bankers those who have turned up,with jobs intact,at least,unlike Merrill Lynchs John Thain wont say sorry,with some even calling for less regulation. Obamas men havent even turned up,presumably to avoid being blamed for what they would say were the last lots mistakes. All these evasions are dangerous. The international economy is broken: and it wont be fixed if everyone is busy pretending that they had nothing to do with how it got that way. Which makes the behaviour of Russia and China particularly unacceptable.

Not since Li Peng in 1992 has a Chinese official close to the rank of Wen Jiabao,the current prime minister,turned up. And Wen has turned up at a moment when and because Chinas growth,and thus influence,are at unprecedented lows. He acknowledged that the economy had taken a hit but then claimed that it was on course for 8 per cent while Nouriel Roubini,the economist who is enjoying his reputation as a prophet for correctly forecasting the size and pattern of the crisis,chose that moment to announce that China was probably in a recession. But it isnt just Wens doubtful forecasts. The point is that he claims that Western blind pursuit of profit is responsible. The actual problem,of course,is that Chinas leaders have skewed its economy to keep savings high and domestic consumption low. So,export-dependent or no,Chinas imports have actually fallen quicker than exports. Yet blaming Wall Street is easy,so Wen will do that instead. And as for Russia,what is marked is the tightrope that Putin walks: sounding belligerent about both the US and China while sounding hopeful and welcoming to foreign investors,whove disappeared. He has to do that because hes stoked the fires of nationalism at home while being mean and nasty to his previous foreign partners when oil prices were high. Theyre low now.

There are lessons from this. We mustnt let anger at unregulated excesses in Western finance distract us from the real problems that the retreating tide of cheap capital makes visible. And we shouldnt let those who point fingers elsewhere get away too easily. Everyone needs to make changes.