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【Share】Davos 2011: World leaders to discuss 'new reality'
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Business leaders meanwhile will discuss "the new reality" after the financial crisis and the rise of India and China. The mood is expected to be much more optimistic than in the past two years, with many expecting a boom in 2011. A survey of chief executives published on the eve of the annual event suggests that business confidence is nearly as strong as before the start of the global financial crisis. Some economists coming to Davos will argue that the world economy is set for long-term growth. The organisers expert more than 2,000 of the world top business and political leaders to come to the Swiss moutain village, where they will be joined by journalists, social entrepreneurs, religious leaders and stars like rock singer Bono and opera singer Jose Carreras. Actor and film director Robert de Niro pulled out at the last minute due to "personal reasons". Russian challenge WEF founder Professor Klaus Schwab is still drawing the crowds. The attraction of Davos is underlined by the fact that President Medvedev is coming here despite Mondays airport attack, which killed 35 people and injured 110. The five-day conference-from Wednesday to Sunday-gives the president a global stage to set out his case against the attackers. This weeks events may also protect him from challenging questions about the recent second jail sentence for former business tycoon Mikhail Khodorkovsky. A raft of other European leaders will also try to make their mark on the agenda. German Chancellor Angela Merkel, buoyed by a strong domestic economy, is likely to outline her plans for the eurozone, while French President Nicolas Sarkozy will find it a challenge to follow up his speech last year in Davos- a passionate bashing of bankers and Anglo-Saxon style capitalism. UK Prime Minister David Cameron is also set to come to Davos, accompanied by his deputy Nick Clegg and Chancellor George Osborne. Austerity, bubbles and digital worries. Five big themes are dominating the Davos agenda: 1 How will the rise of India and China alter the global balance of power? 2 How can Western economies cope with debt, austerity, joblessness and potentially years of low growth? 3 Will rapid economic growth in emerging economies trigger run-away inflation, and could it lead to dangerous bubbles? 4 Economists at IHS Global Insight already compare Chinas property market to that in Japan before the big crash of the early 1990s. How are digital media and technology changing not just whole industries, but human society? 5 And as the enemies of the World Economic Forum(WEF) seem to have disappeared, the capitalists in Davos have to be their own best critics, with a series of sessions examining the failings of the global economic system-from poverty to inequality, resource problems and green issues. Trendspotter or behind the curve? A popular topic at Davos is whether the event "wil get it wrong again" - as in 2007 and even 2008, when many business leaders failed to sport the imminent financial and economic meltdown. "They always seem to be a bit behind the curve here, " says Rajesh Shah, managing director of Indias largest specialist steel manufacturer. That may be true, but the organisers can console themselves with the fact that the rest of the world tends to get it even more wrong than the Davos consensus. |
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