Davos delegates under a cloud

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.