Davos: Politicians and business leaders arrived in Davos yesterday ahead of the start of the World Economic Forum, a five-day event clouded by ominous signs that a possible US recession could result in a worldwide economic slowdown.
Global markets plunged for a second day, part of a wider range of pessimism concerning a $145 billion US economic stimulus package aimed at keeping America's economy from sliding into a recession.
The 2,500 world leaders coming to Davos will find a forum focused more on economic and political issues instead of the show business glamour that brought out stars such as Angelina Jolie and Sharon Stone in years past.
A year ago, Davos attendees predicted that the economy would move ahead with confidence. But after the credit crisis brought on by massive exposure to subprime mortgage securities, the prevailing mood instead is one of caution.
The global economic turmoil is top of the agenda for the 2,500 world leaders coming to the Swiss Alps for the annual meeting that starts today and aims also to foster real dialogue on issues such as pursuing a lasting peace in the Middle East to settling global economic malaise and stemming terror worldwide.
The forum said that this year's meeting will have the theme of 'the power of collaborative innovation.' Klaus Schwab, founder and executive chairman of the Geneva-based WEF, said the meeting's "unique combination of the world's top business and political leaders, together with the heads of the world's most important NGOs, and religious, cultural and media leaders allows us to approach the problems that face the world in a systematic way and with an eye to tackling the major issues that face us all."
Schwab said that the forum would focus on addressing economic insecurity, as well as helping businesses compete with each other by collaborating. The event will also look at how science and technology have expanded the frontiers of nature, and how the values of different societies can help people gauge emerging cultural trends.
The opening session, which will be addressed by US Secretary of State Condoleezza Rice, will focus on climate change and terrorism.
The key issue, though, will be the global economy.
Billionaire philanthropist George Soros, arriving late last night, made waves when he was quoted by the Vienna-based newspaper Der Standard yesterday as saying the US was headed for a recession and that other regions, notably Europe, would not be able to escape unscathed.
"The situation is much more serious than at any time since World War II," he was quoted as saying.
His remarks were telling given that a survey conducted by the WEF ahead of its 38th annual meeting found a profound lack of faith that the next generation of humanity would be living in a safer world.
It also found that business leaders were held in better regard than their political counterparts, but many criticised them both.
