Global Policy Forum

By Aude Lagorce

Surging oil prices, the bulging U.S. budget deficit, the new powerhouses of China and India, and a world without Alan Greenspan will be the hot topics for world leaders meeting this week at the Swiss resort of Davos for the annual gathering of the World Economic Forum.

Some of the world's biggest political names, including Germany's chancellor Angela Merkel, Afghan President Hamid Karzai and China's Vice-Premier Zeng Peiyan will mix and mingle with corporate and financial chieftains such as Microsoft Chairman Bill Gates, international financier George Soros and United Kingdom Chancellor of the Exchequer Gordon Brown.

Unlike last year, they likely won't be focusing on how to feed the world's hungry. The world leaders are anxious to get back to basics after the fight against poverty and efforts to help Africa dominated the summit in 2005. "There was a bit of a feeling among delegates last year that the meeting was slowly becoming something it wasn't meant to be and going beyond its mandate," said Howard Davies, director of the London School of Economics and Political Science.

Organizers of the conference this year -- which runs from Wednesday through Sunday -- have tried to set things back on track by shifting the focus from social and charitable issues back to "key business and economic issues," said Davies. Last year politically active celebrities grabbed much of the spotlight at the normally staid meeting. Rock star and advocate for Africa Bono serenaded the crowds and made headlines on the need for debt relief, and actress Sharon Stone attracted attention with her plea for mosquito nets to fight malaria.

On the economic and political fronts, concerns over the sinking dollar, the chilly relationships between Washington and its allies and the war in Iraq were at the forefront of the meeting. Regaining centre stage at this session will be the global economic outlook and the various wild cards that could impact it -- energy prices, a new chairman of the U.S. Federal Reserve, continued threats of terrorism and more. This year, the world leaders gather after weathering a number of severe storms over the past 12 months. Oil prices peaked at $70.85 US a barrel in August and a series of unprecedented natural disasters, including the destructive hurricanes in the United States and the earthquake in Pakistan, stretched already tight budgets.

Meanwhile, world stability seems ever more at risk as unrest and violence continue in Iraq, and Iran's nuclear ambitions become harder to ignore. Prospects for peace in the Middle East also seem more remote following Israeli Prime Minister Ariel Sharon's major stroke last month. Despite these various threats, the global economy, boosted by record growth in China and a recovery in Europe and Japan, managed to grow at a robust 3.1 percent in 2005. Barring a hard landing in Beijing or serious disruptions to energy supplies, economists say 2006 should bring more of the same.

For its 36th edition, the annual meeting of the World Economic Forum will bring together the usual impressive crop of chief executives, political leaders and economists for five days of a very special Alpfest. There, participants from 89 countries including 15 heads of state, 60 cabinet ministers, 23 religious leaders and more than 700 corporate heads will spend five days rubbing shoulders in corridors and at cocktail receptions, debating prospects for the global economy and listening to discussions ranging from the deadly serious to the quirky.

And while the summit has sometimes attracted criticism for being out of touch with the world's ills, it remains a must-go event. This year's guest list is as impressive as ever, including Google's co-founder Larry Page, Deutsche Bank's Joseph Ackerman, World Bank President Paul Wolfowitz and United Nations Secretary-General Kofi Annan. China is sending its vice-premier and a host of other dignitaries, and India's delegation will be led by Finance Minister Palaniappan Chidanbaram.

FAIR USE NOTICE: This page contains copyrighted material the use of which has not been specifically authorized by the copyright owner. Global Policy Forum distributes this material without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. We believe this constitutes a fair use of any such copyrighted material as provided for in 17 U.S.C íŸ 107. If you wish to use copyrighted material from this site for purposes of your own that go beyond fair use, you must obtain permission from the copyright owner.