WEF meet concludes amidst economic crisis of Alpine heights

Indivjal Dhasmana

Davos, Feb 1 (PTI) Global business and political leaders Sunday left the Alpine Swiss resort after five days of brainstorming, with a warning that protectionist efforts by the rich nations could make things worse for the global economy facing the biggest crisis since the Great Depression.

The emerging BRIC (Brazil, Russia, India, China)
economies marked their strong presence at the annual World
Economic Forum meeting, telling the Americans and others in
the west how their business models turned into bubbles, which
were to burst anyway.

Now that the bubbles of low savings, or actually no
savings, and high consumption have burst, the impact is not
limited to the US and European economies.

People in developing countries that depend on exports to
rich nations are taking a hit on income and jobs.

Chinese Premier Wen Jiabao and Russian Prime Minister
Vladimir Putin blamed the excesses of the free market
economies for triggering the crisis.

"This pyramid of expectations would have collapsed sooner
or later. In fact, it is happening right before our eyes,"
Putin, who was among the 40 heads of state and government
said, in one of the sessions.

Wen blamed "inappropriate macroeconomic policies of some
economies" and "prolonged low savings and high consumption,"
in a barely veiled attack on the US.

India gave a strong warning against protectionist efforts
being resorted to in the West.

"History is witness that whenever countries try to prop
up protectionism, it intensifies depression," Commerce and
Industry Minister Kamal Nath said.

Nath said America's Smoot-Hawley tariff, which brought
nearly 900 items under the ambit of import duty, "is regarded
as one of the major contributors of the Great Depression. The
world needs to ensure that protectionist tendencies are
avoided".

Mahindra and Mahindra Group Vice-Chairman and Managing
Director and one of the co-chairs of the meeting wanted a
clear indication from the Obama administration as to where
America stands in terms of protectionism.

"The most important thing is what Obama will do on
protectionism. Everyone is interpreting Obama's word. I
believe the US needs to make a very strong statement where it
stands," he said participating in the concluding session.

While Mahindra said that the G-20 grouping of developing
and developed nations should get more active in managing
global economic affairs, WEF President Klaus Schwab did not
have much hope from this platform.

"We cannot expect much from the G-20 meeting. Do not
forget it is a technical meeting," Schwab said. The G-20 is
scheduled to meet in April in London.

The common themes that ran through the meetings were the
limited capabilities of the governments to deal with the
crisis, the urgency for a global breakthrough and the threat
of a backlash to the excesses of Wall Street.

Though on a low key, the meeting was also marked by
presence of film stars and religious leaders from all over the
world.

Bollywood icon Amitabh Bachchan was felicitated by the
corporate world and his fans. PTI IND