ZENIT - The World Seen From Rome - A Shaky New World Order - Forums See Humbled Businesses, and More Calls for Global Equality

www.zenit.org Date: 2003-02-01

DAVOS, Switzerland, FEB. 1, 2003 (Zenit.org).- The World Economic Forum's meeting this year in Davos was organized under the theme "Building Trust." The intention was to help business to recover in the wake of the recent series of ethical scandals.

"Trust is the glue that holds everything together, the bond that creates healthy communities and successful businesses," explained Klaus Schwab and Thierry Malleret, president and director of the World Economic Forum, respectively, in a Jan. 28 Wall Street Journal opinion piece. Once lost, trust "is incredibly difficult to regain," they noted.

A Financial Times editorial of Jan. 18 described the situation more bluntly: "Gone is the mood of arrogant triumphalism that characterized Davos meetings of a few years ago. Chief executives who were acclaimed then as the new masters of the universe, lofted upwards on buoyant markets and visions of endless growth, have been brought abruptly down to earth."

In all, this year's summit was a lot humbler, not only due to the past scandals, but also because of the shaky world economy and fears of a war in Iraq, noted the Globe and Mail on Jan. 24.

Klaus Schwab, who founded the forum 33 years ago, told delegates at the official opening that never in the meeting's history had the world faced a situation that was "so complex and so fragile" as this year. He also pleaded with the captains of industry to look at more than the bottom line. "Business must not just be profitable," Schwab said. "It must also be accountable. It must not only represent value, but values."

Anti-globalization protesters were also present, albeit diminished in both numbers and furor compared to previous years. The 2,350 Davos participants were protected by unprecedented security measures costing Switzerland around $10 million, the New York Times reported Jan. 23.

U.S. vs. Europe

The threat of a U.S.-Iraq war loomed large over at Davos. In fact, the forum "had an America-bashing theme," with frequent attacks by politicians and businessmen against "American arrogance," the doctrine of pre-emption and Washington's Iraq policy, the Wall Street Journal reported Jan. 27.

The global intelligence firm Stratfor speculated Jan. 29 that one of the factors behind the hostility in Davos toward the United States is that those present are a "segment of the international elite that is committed to preserving the international system as it was prior to Sept. 11, 2001."

And behind the growing divergence between Europe and the United States, opined Stratfor, is a division "at the deepest intellectual and moral level" that is seeing a breakup of the postwar alliance structure. "The incomprehension and anger of the Europeans at Davos is directed less at the United States than at a lack of ability to control events," concluded Stratfor.

The more traditional economic themes of globalization and relations between rich and poor countries were also present in the meeting. The newly elected Brazilian president, Luiz Inácio Lula da Silva, appeared in Davos, asking the better-off nations to help those in need, the Italian daily La Repubblica reported Jan. 27.

Lula was the star at a dinner in Davos that saw a number of Latin American heads of state present, including the Mexican and Argentinian presidents. In his speech the day before, Brazil's leader proposed the establishment of a world fund to fight against hunger. He also spoke of how his party in Brazil has forged "a new social contract" to restart economic development and to reduce social inequalities.

Lula assured participants that Brazil would respect its financial obligations, but he insisted on the need to break out of the vicious circle whereby his country had to continually borrow money in order to repay its outstanding debts. We believe in free trade, he said, but in a free trade in which the foundational characteristic is reciprocity, which is the contrary to what has taken place up until now, with the rich countries preaching free trade and practicing protectionism.

Porto Alegre

Meanwhile, in the Brazilian city of Porto Alegre, the 3rd World Social Forum took place. The event gathered about 100,000 participants who "sent out a strong message against war, injustice and social inequality," the Inter Press Service News Agency reported Jan. 29.

"Our greatest victory this year is that the world has heard us out," said Brazilian activist Cándido Grzybowski, a member of the WSF organizing committee. Ignacio Ramonet, another WSF organizer, said the forum's main message this year was "No to War!" -- referring to U.S. and British preparations for a military strike against Iraq.

Economic themes were also in focus. On the opening day of activities, forum organizers released a public opinion poll showing that a majority of the population in the 15 countries surveyed believed that globalization is driven by multinational companies, and concentrates wealth rather than generating opportunities, the Financial Times reported Jan. 24.

Interestingly, Mexico is the country where most of the people surveyed said they believe that globalization brings opportunities and that economic growth should take precedent over social issues. Conversely, more South Koreans and Germans believe that globalization concentrates wealth.

Forum activities included a protest march of some 30,000 people, CNN reported Jan. 28. Many of the marchers showed their disapproval for a hemispheric free-trade zone that would stretch from Canada to Argentina. The proposed Free Trade Area of the Americas is a project designed to unite the economies of 34 nations. Protesters feared it will allow large corporations to bypass labor and environmental laws and will hurt farmers and the poor.

George Monbiot, a columnist for the British daily Guardian and a decided critic of globalization, exulted in a Jan. 28 article on the growing popularity of the Porto Alegre meetings. Even though protests died down in the aftermath of the Sept. 11 attacks, he wrote, "our movement has grown bigger than most of us could have guessed." He explained: "For the great majority of activists -- those who live in the poor world -- the movement offers the only effective means of reaching people in the richer nations."

The correspondent for La Repubblica was not so sure. In a Jan. 29 commentary, Fabrizio Ravelli observed that despite all the talk and activity in Porto Alegre, there was little action. Programs to bring about concrete changes still seem a long way off, he noted.

Davos or Porto Alegre?

According to Bishop Diarmuid Martin, permanent observer for the Holy See at the United Nations' Geneva headquarters, what we need to avoid in globalization is to adopt ideologically driven positions, either pro- or anti-global. In an interview in the Italian Catholic paper Avvenire on Jan. 24, Bishop Martin noted the absence of structures capable of regulating today's global realities.

What is needed, he said, is clear and just rules that do not offer unfair privileges to any group. He also insisted on a greater respect for fundamental human rights. And in terms of economic development it is not enough just to open up markets so that Third World countries can export their goods.

Developing nations also need help in order to create functioning legal and political systems, so that the rule of law is respected and a free press is allowed. Bishop Martin also noted that investment in education is a fundamental starting point for economic development. Wise words, often unheeded in the heated rhetoric of international talkfests.