A far more optimistic economic forum

Four months ago there was a feeling of near panic when the World Economic Forum met for its annual meeting in Davos. The global economic crisis was unfolding, and no-one knew how deep it was going to go. The G20 had not met, and there were grave doubts among the rattled business and banking communities that the governments could manage to create a proper stimulus package across so many borders.

But this gathering at the Dead Sea has a more optimistic feeling. Everyone knows that we are going through the biggest recession of our lives, and that businesses are not doing well. However there is a sense at this gathering of Middle East businessmen and senior government ministers and officials that the actions of the governments in the region are beginning to have an effect.

There is also a strong strand of social urgency at the World Economic Forum. Almost every speaker has agreed that in the long term the only real asset the region will have is its people, and their ability to contribute and lift the region up from the low point that it occupies at present depends on much better education. They all want to see curriculum reform, an end to the learning of facts by rote and the promotion of independent thinking and analysis.

But what several speakers have pointed out is that while there are plans to improve education, there are few plans for political reform.

"Our nations are not nations," said Shafeeq Ghabra, professor of political science in Kuwait. "They are family projects, in which loyalty wins over education."

Despite there being no real answer for this political question, the urgency for social reform remains at the top of everyone's agenda.

"The Arab world is at the bottom of most indeces," said Marwan Muasher, senior vice president of the World Bank. "Whether you look at human resources, the state of women, governance, transparency, the Arab world comes out poorly. We cannot afford to stay in this situation, and we have to focus on education."

After several months during which the major banks vanished, embarrassed at the ever-continuing tale of misery and all-too-regular stupidity, some of the more confident international banking groups have now resurfaced with a vengeance. HSBC has fielded a large group of senior bankers who have fanned out over the forum, ready to talk to their clients and find new ones. Standard Chartered is also here, hosting a large reception and willing to explain that they are ready to do business.

WEF

DIARY

By Francis Matthew

Editor at Large