World Economic Forum to Begin Second Day

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.