World Economic Forum Discusses Economic, War Worries

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.