www.gulf-daily-news.com DAVOS, Switzerland:

The annual World Economic Forum (WEF) opened in the Swiss ski resort of Davos yesterday, with dire forecasts about the economic impact of a war on Iraq and demands for more responsible business practices.

Economists and industry leaders at the forum warned that a US-led war could jeopardise chances of recovery for the fragile global economy, which was more "US-centric" than any other time since the Second World War.

They opened their meeting as the foreign ministers of Egypt, Iran, Jordan, Saudi Arabia, Syria and Turkey were due to meet in Istanbul in a last-ditch effort to avert a US-led war.

"The true risk ... if we see a war in Iraq (is) that there will be an event either in the Middle East or in the US, or a series of events around the world, that will create a sharp visible impact on consumer confidence, said Gail Fosler, chief economist of the private US forecasting institute, the Conference Board.

"This could give you no growth in the US or a possible recession," she said, adding: "If there is a major oil shock, its impacts are likely to be felt as much in 2004 as 2003." A poll of chief executives worldwide, published by the consultancy PricewaterhouseCoopers at the forum, showed 48 per cent of CEOs rated "terrorism and global war" as "significant or one of the biggest threats" to their growth prospects.

"The uncertainty and the variation of possible scenarios (concerning a war) is certainly weighing on our economies," Bertrand Collomb, CEO of French construction materials giant Lafarge, told a news conference in Davos.

"The sense (among top US executives) seems to be that a short, successful conflict could even be positive for the economy because it would remove the economic uncertainty (and) the war premium on the price of oil. A long, dragged out conflict could be very depressing for everyone concerned, certainly the economy" added Henry A McKinnell, CEO of pharmaceuticals giant Pfizer.

US Secretary of State Colin Powell is expected to address the Iraqi crisis in a speech on Sunday in Davos, where police and soldiers drafted in from across Switzerland have mounted a tight security operation.

His speech comes one day before UN chief arms inspector Hans Blix gives his first report to the United Nations Security Council on Baghdad's alleged weapons programme.

US Attorney General John Ashcroft is also due in Davos today, while Iraqi opposition groups are expected to meet there on Tuesday, the same day US President George W Bush will deliver an anxiously awaited State of the Nation address to the American people.

Another key speaker at the forum - a seven-day brainstorming session for some 2,100 political and business leaders - is newly-elected Brazilian President Luiz Inacio Lula da Silva.

www.thescotsman.co.uk EMMA COWING DEPUTY BUSINESS EDITOR

DAVOS may be known as a gathering place for the world’s great and good, but yesterday even the brilliant white snow that covered the Swiss mountains couldn’t brighten the gloom surrounding the alpine resort.

The creme de la creme of politicians, economists and businessmen arrive here every year for the annual meeting of the World Economic Forum, and 2003 is no different.

About 2,300 participants are expected - along with about two dozens heads of state and government. Microsoft’s Bill Gates, Douglas Daft of Coca Cola, Carly Fiorina of Hewlett-Packard, King Abdullah II of Jordan and Brazil’s new president, Luiz Inacio Lula da Silva, are among those attending.

But a year of corporate scandals, executive sackings and turbulent markets, plus the threat of terrorism and fears of an impending war in Iraq has cast a gloom over this year’s party.

US Secretary of State Colin Powell, for example, set to arrive tomorrow, will not be given the chance to smooth over differences concerning Iraq with French Foreign Minister Dominique de Villepin, who cancelled his trip yesterday.

At the Forum’s opening session, distinguished economists warned that, in a world where growth is stalled in three of the world’s largest economies, the US provides the only set of broad shoulders to muscle forward the global economy.

Gail Fosler, chief economist for the US-based Business Council, said: "We are looking forward to a set of risks, certainly surrounding war in the Middle East, that have a truly profound downside."

Switzerland is mounting its biggest ever security operation in Davos this year at a cost of around US$10 million (£6.1 million), equivalent to about $5,000 (£3,000) per delegate.

Anti-globalisation protesters have become an increasing problem at Davos in recent years. This year, however, the Swiss have authorised a demonstration , but it is to be kept well clear of the meeting site. A tight screening procedure has been set up to keep known troublemakers from entering the narrow valley that leads to the town .

Davos is not on the route of commercial airlines, and so jumpy are Swiss government officials, they have warned that any light plane seeking to overfly it could be shot down by Swiss fighters if it ignores orders to change course.

www.voanews.com VOA News 24 Jan 2003, 00:28 UTC

The World Economic Forum in Davos, Switzerland, is heading into its second day Friday, overshadowed by worries over a possible U.S.-led war in Iraq. Thursday, global business and political leaders at the forum warned that a conflict could jeopardize already slim chances for recovery in financial markets.

One financial analyst, Peter Cornelius, said a drawn-out war will have negative long-term effects on areas such as oil prices, but that a short conflict could actually improve world markets.

The forum's founder and director, Klaus Schwab, said never in the event's 33-year history has the world been so fragile, complex and dangerous.

Mr. Schwab also urged leaders to improve business ethics in order to regain confidence lost due to corporate controversies such as the accounting scandal at U.S. energy giant Enron.

About 2,300 delegates from 104 countries are participating in the 33rd annual World Economic Forum, which ends on Tuesday.

Meanwhile, thousands of anti-globalization activists in Brazil are holding their third annual World Social Forum to protest the Davos meeting. As many as 100,000 activists are expected to attend the six-day forum in Porto Alegre.

Brazil's first elected leftist leader, Luiz Inacio Lula da Silva, is expected to speak on hunger and poverty in upcoming days at the Davos forum. U.S. Secretary of State Colin Powell is also expected to address the forum.

Swiss officials have mounted a 10-million dollar security operation at the event. They closed the airspace over Davos and deployed hundreds of police officers and two-thousand troops to guard the ski resort.

www.alertnet.org 24 Jan 2003 02:02

(Recasts with march, adds quotes) By Nicholas Winning

PORTO ALEGRE, Brazil, Jan 23 (Reuters) - Thousands of people from across the globe marched for peace and more socially inclusive economic growth on Thursday to mark the opening day of the third annual World Social Forum in southern Brazil.

"I'm here as this is an expression of a movement that is worldwide ... the movement against (U.S. President George W.) Bush's war is worldwide," said 59-year-old British university lecturer Mike Gonzalez before his voice was drowned out by drums of the procession.

Earlier, WSF organizing committee member Francisco Whitaker declared the event open to a roar of applause from an auditorium packed with representatives from hundreds of grass-roots organizations and publications.

"I welcome government authorities, those people who do not consider themselves authorities and those who are against the authorities," Joao Verle, the mayor of Porto Alegre, told the opening ceremony before calling for "a vigorous demonstration against war and for peace."

Police captain Vanderley da Rosa said 150,000 people had turned out to take part in the procession through the heart of this southern Brazilian city, more than the double the 60,000 who took part in the event last year.

Organizers expect 100,000 people to attend the speeches, discussions, and workshops of the WSF, designed as an alternative to the long-running World Economic Forum, a meeting of the world's power brokers that also began Thursday in Davos, Switzerland.

"IT REMINDS ME OF THE SEVENTIES"

Protests against a U.S.-led military conflict in Iraq were the main order of the day, but other groups chanted for better agricultural workers' land rights, an end to the Palestinian conflict, and better treatment of retirees.

Others chanted for better medication for AIDS sufferers, and against the Free Trade Area of the Americas, an ambitious plan to drop trade barriers from the top of Alaska to the tip of Argentina which some Brazilians believe is a U.S. device to subjugate the region.

Banners read "No to debt and the FTAA", and the obligatory, "Make love, not war". A large group of Palestinians and sympathizers carried a huge Palestinian flag over their heads.

Goatees, tee-shirts emblazoned with the face of Che Guevarra, and sandals were everywhere, as were the innumerable beer and soft-drink sellers which appear whenever there is a public event in Brazil.

"It reminds me of the seventies," said 51-yar-old academic Mark Methven.

A speech on Friday by recently elected left-wing Brazilian President Luiz Inacio Lula da Silva, a champion of social issues and a regular at the past two forums, promises to be the highlight of the six-day event.

So much so that the mention of his name at the opening ceremony set off a soccer-like chant of "Ole-ole-Lula-Lula".

A large U.S. contingent filled with the "Who's Who" of the left, such as political activist Noam Chomsky and socially conscious actors like Danny Glover are also here to rally under the WSF slogan of "Another World is Possible."

Other high profile guests at the WSF to exchange ideas on themes including democratic sustainable development and human rights include Venezuelan President Hugo Chavez, former Portuguese Prime Minister Mario Soares, and a slew of writers and authors who have made a name attacking globalization.

Lula, a former union leader of humble origins, is also due to fly to attend the Davos summit. The trip has put a few die-hard left-wing noses out of joint, but there was little sign of resentment at the march where one banner read, "Davos give up! Lula is one of us".

www.voanews.com VOA News 24 Jan 2003, 02:30 UTC

The World Economic Forum in Davos, Switzerland, is in its second day Friday, overshadowed by economic uncertainty and worries about a possible U.S.-led war in Iraq.

On the opening day Thursday, global business and political leaders at the forum warned that a conflict could jeopardize already slim chances for recovery in financial markets.

One financial analyst (Peter Cornelius) said a drawn-out war will have negative long-term effects on areas such as oil prices, but that a short conflict could actually improve world markets.

Malaysian Prime Minister Mahathir Mohamad sharply criticized the United States for its plans for war with Iraq, saying such military action will only create more anger against the United States and unleash attempts at revenge and retaliation.

The host of the forum, Swiss President Pascal Couchepin, said U.S. military force must only be used as a last resort.

The forum's founder and director, Klaus Schwab, said never in the event's 33-year history has the world been so fragile, complex and dangerous.

About 2,300 delegates from 104 countries are participating in the 33rd annual World Economic Forum, which ends on Tuesday.

Meanwhile, thousands of anti-globalization activists in Brazil are holding their third annual World Social Forum to protest the Davos meeting. As many as 100,000 activists are expected to attend the six-day forum in Porto Alegre.

Brazil's first elected leftist leader, Luiz Inacio Lula da Silva, is expected to speak on hunger and poverty in upcoming days at the Davos forum. U.S. Secretary of State Colin Powell is expected to address the forum on Sunday.

Swiss officials have mounted a $10 million security operation at the event. They closed the airspace over Davos and deployed hundreds of police officers and 2,000 troops to guard the ski resort.