Security tight as world leaders meet in Davos

Terrorism and China in focus

A SLOW DOWN in world economic growth, increased threats of terrorism and worries over the flood of migrants into Europe cast shadows over the opening yesterday of the annual meeting of the world’s rich and powerful in Switzerland.

The heightened security threat was starkly in evidence at the venue – the snow-covered ski resort of Davos – with police carrying machine-guns patrolling the streets and concrete blast blocks placed in front of key venues.

Pope Francis sent a special message to the World Economic Forum urging the wealthy political and economic elite not to be deaf to the cry of the poor and to consider how to end inequality.

Ironically, as a new robot proved a popular attraction at an exhibition at the forum, the pope drew attention to new technologies, such as robotics saying these “soulless machines” must not be allowed to replace humans.

On the environment, the pope urged business leaders to see to it that the planet does not become “an empty garden”.

The annual Davos meeting – with the theme this year of “Mastering the Fourth Industrial Revolution” – brings together many of the world’s wealthiest and most powerful people to consider issues such as economics, climate change and war, with an eye to working on solutions to them.

It has been criticised by activists as a forum for organisations that have been responsible for the problems in the first place.

They are boosted by reports such as one from charity Oxfam estimating that 1% of the world’s population owns 99% of the wealth.

In one of the first speeches yesterday, US Vice-President Joe Biden placed the emphasis not on economic matters, but to call on business leaders to use their influence to drive change in countries where lesbian, gay, bisexual and transgender people face repression.

The issue is on the official agenda for the first time at the forum, attended by countries that discriminate against gay people, such as Nigeria and Russia.

Biden said there was no national cultural justification to discriminate against lesbian, gay, bisexual and transgender people.

“People used to be cannibals as part of their culture, people used to do terrible things as part of their culture,” he said.

The start of the forum was preceded by the International Monetary Fund (IMF) sounding the alarm on Tuesday about perils in the major emerging economies.

This influenced the fund to lower its outlook for global economic growth this year.

But many of the world’s top executives said in the corridors outside the forum meetings that a repeat of the 2008 financial meltdown was unlikely.

The slowdown in Chinese growth is especially darkening the mood of policymakers in Davos.

“The big event that I think has captured everyone’s attention is the developments in China and in particular the fact that growth is slowing,” IHS chief economist Nariman Behravesh said.

He said the Chinese policymakers had fumbled, so adding to widespread international uncertainty and volatility.

China’s problems would be discussed by the Davos delegates – “but they won’t say it in public, they will say it in the hallways”, Behravesh said.

He said “the public Davos is a little different than the private Davos”.

Other observers say that is exactly why 2 500 movers and shakers make their annual pilgrimage to Switzerland to air the biggest issues openly and, when they wish, far from the prying eyes of their domestic audiences.

For example, the foreign ministers of two countries deep in conflict – Saudi Arabia and Iran – are attending, although a public meeting is considered unlikely.

On the technology side, implantable mobile phones, 3D-printed organs for transplant, and clothes and reading-glasses connected to the internet are among ideas being thrown around on the sidelines of the forum and featuring in exhibitions there.

After steam, mass production and information technology, the so-called “fourth industrial revolution” will bring ever faster cycles of innovation, posing huge challenges to companies, workers, governments and societies alike, experts say.

And some even predict that artificial intelligence machines could be sitting on corporate boards of directors within the next decade as part of the swiftly advancing revolution.