Economic leaders expect ‘shock’ in 2012

Article by directdebtsolutions on 25th Jan 2012 15:44

newspaperThe World Economic Forum has released the results of its quarterly survey just ahead of the annual conference in Davos this week.

And the results don’t make good reading: according to WEF, the majority of government officials and businessmen are expecting a ‘major geopolitical disruption’ in the coming twelve months.

The survey is carried out quarterly and polls the opinions of 345 experts from the world of commerce, business and government, but the latest results reveal a depressing vision for the near future by those that are in the know.

From those interviewed, 54% said they expect to experience a ‘major geopolitical disruption’ during 2012. This is an increase of 36% on the results from last quarter and highlights the growing unease with the economic outlook, just as the annual conference is due to convene.

WEF also reported that close to 60% of those in the survey did not have confidence in the ability of global leaders to contain any crisis or to adequately deal with the risks.

Opinion was somewhat divided between those from the private sector and those in office, with the former slightly more upbeat about the overall prospect for 2012. However, those in the public sector were marginally less concerned about a major geopolitical event occurring in the next twelve months.

The summit is expected to attract approximately 2,600 attendees, including 1,600 business leaders from all over the globe. British Prime Minster, David Cameron and German Chancellor, Angela Merkel are both expected to be included amongst the 40 heads of state arriving in Davos.

But outside the conference, a peaceful protest is expected to take place, with the Occupy movement travelling to Davos to continue its rallying call.

An igloo village has been built close to the conference boundary, which includes two heated tepees to take the chill away in the frozen fields around the Swiss ski resort. There is also a field kitchen and enough icehouses for around 50 people to sleep.

The Occupy WEF group has called for other committed campaigners to join them in their icy protest against the way leaders and banks are managing the economy, declaring on their website, “Every year, self proclaimed global leaders, allegedly committed to improving the state of the world, meet up for the World Economic Forum (WEF) in the Swiss mountains to propagate their own businesses and network amongst the so-called global economic elite. This year we will not let them exclude us, the 99%! We say: occupy WEF!”

Poverty and global disparity in income is expected to be on the agenda for the conference, with the WEF describing the ‘significant and urgent challenges’ which need to be overcome, in order to achieve the ‘cohesion’ required for global growth.

An eleven person sub section of the WEF – the Global Issues Group (GIG) – have been a strong voice in highlighting the problems facing the international economy on subjects such as rising unemployment, decelerating growth and protectionist policies adopted by individual countries.

GIG said that in order to regain momentum it was necessary for countries to provide some ‘political energy’ to the movement by taking the necessary actions previously promised. The group suggested measures such as a co-ordinated approach to structural reform, open trading and cross border finance as potential steps which could help to boost the flagging growth.

GIG includes some high ranking individuals, including Christine Lagarde (head of the IMF), Robert Zoellick (the World Bank President) and Director General of the WTO, Pascal Lamy. Despite the political heavyweights involved in GIG, the WEF said it did not fully endorse all of the opinion expressed but said that it agreed that they did have a shared vision of a ‘strengthening of growth, employment and the quality of life in every part of the world.’

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