Davos diary: Eclectic mix of ideas takes effect

The eclectic mix of ideas that makes Davos different from most other conferences is beginning to take effect. The day started with a 'Business Breakfast' (a horrible idea for someone who likes his first cup of coffee in peace). This was hosted by the management consultants Bain and Co, and turned out to be a very interesting on pure management topics as they spoke of how public companies have been forced by private equity funds to review how they manage their affairs.

The core of the discussion was how to maximise value, and to what timescale should a company's management work. The head of Nestle pointed out that his company was 140 years old and would aim for another 140, while many private funds work to a five-year scale.

I then moved straight on to a meeting on the impact of sovereign funds on the global economy, which was attended by the heads of the Kuwaiti, Saudi and Norwegian funds, and the US Deputy Secretary of Treasury, and the ever-exciting Larry Summers of Harvard who kept the debate buzzing as he argued that the funds needed to sign up to a Code of Conduct to allay fears, while the funds argued that they had a solid record of responsible investment for decades.

Then on to listen to President Musharraf of Pakistan, who took a very prominent part in yesterday's proceedings, despite not being on the programme the day before. Later the Palestinians are due to be on the same platform as the Israelis.

This extraordinary combination of ideas is what makes Davos work. It makes it very clear that politics cannot be separated from the economy, and that any successful development requires action on all sides.

For example, the impact of good governance, a steady supply of good water and energy, and the removal of poverty will all have a substantial impact on the political arena and reduce any possible trend to terrorism.

On to the maelstrom of people around the main hall, where people meet each other and catch up on what is happening, either around the world or in the many breakout sessions. In this situation one of the challenges facing anyone from the Gulf is recognising friends when they pop up out of context and not wearing Arab dress.

I had several surprises as a very familiar face loomed up out of the crowd, but in totally different clothes than at home. Sometimes this led to an anxious moment before recognising a good friend.

What is also interesting is how different political leaders behave in this situation. While Hamid Karzai moves quietly through the halls with very little fuss, stopping to chat with people he knows, the new leader of South Africa's ANC, Jacob Zuma, travelled with a substantial entourage, carving a path through the crowd. And even despite the high level of interest in anything that Pervez Musharraf might say, he also enjoys being part of the crowd and moving around with little drama.