Davos Forum Targets Economic Growth, Possible Iraq War

www.voanews.com VOA News 23 Jan 2003, 15:23 UTC

Global business and political leaders are confronting the issues of slow economic growth and a possible war in Iraq, as the the World Economic Forum opens in Davos, Switzerland.

The chief economist for investment bank Morgan Stanley, Stephen Roach, told the forum Thursday, that the United States, which he called "the engine of the world," is struggling. He says the U.S. economic recovery will continue to be disappointing. Gail Fosler, the chief economist at the Conference Board, a U.S. business group, was more optimistic than Mr. Roach.

She believes there will be a pickup in business investment that will allow the U.S. economy to grow at least three-percent this year. But she warns that there could be an unpredictable affect on consumer confidence from a war in Iraq, especially if chemical weapons are unleashed.

About 2300 delegates from 104 countries are taking part in this year's six-day forum. Switzerland has mounted a $10 million security operation, closing the airspace over Davos and deploying hundreds of police officers and 2,000 troops to guard the ski resort. Separately in Brazil, thousands of anti-globalization activists are meeting for their third annual World Social Forum to protest the Davos summit. As many as 100,000 activists are expected to attend the forum in Porto Alegre. Brazil's first elected leftist leader, Luiz Inacio Lula da Silva, is expected to speak on the issues of hunger and poverty. He also plans to attend the economic summit in Davos.