DAVOS – World business leaders on Wednesday said there is a need for a “golden triangle” collaboration between governments, companies and the civil society to rejuvenate the global economy, create jobs and fight corruption. They also urged the economic movers and shakers attending this year's edition of World Economic Forum (WEF) meeting on the theme “Resilient Dynamism”. Kicking off the annual Davos meeting Wednesday in a spirit of guarded optimism that the worst of the financial crisis might finally be over, it is taking place at a time when fiscal woes across continents and anemic world economic growth are posing policy as well as political challenges. Setting the tone for the deliberations at this snowy resort town, Coca-Cola Company Chairman and CEO Muhtar Kent, also co-Chair of WEF meet, said that growth and job creation are going to be key for the global economy going forward. “We need to ask a question how can business, government and civil society rise to the challenge and create a golden triangle,” Kent said. The call for collaborative efforts comes against the backdrop of corruption issues coming to the fore in various countries, including India, where the role of companies, banks, the government as well as individuals have come under the scanner. Opening the meeting, WEF founder and host Klaus Schwab, 74, called on delegates to turn the corner on the eurozone debt woes that have tipped the region into a recession. “My hope is that you come out of the meeting with a vision which goes beyond just crisis management as we have seen, a vision that is much more dynamic, not just crisis fighting,” Schwab said in his opening speech. In a major survey released by financial services firm PricewaterhouseCoopers Tuesday on the eve of the meeting's official opening, chief executives said they were marginally more optimistic on the global economy. Only 28 percent of CEOs said they expected the world economy to decline further in 2013, against 48 percent last year, while 52 percent expected it to remain stable. But only 36 percent said they were “very confident” in their companies' growth prospects in the next 12 months, down from 40 percent last year and 48 percent in 2011. Unemployment remains high in many developed economies and the public's faith in business and government leaders is falling. The euro alliance and Japan are in recessions. And politicians in the United States are struggling to finalize a budget deal to avoid a potential default that would cause havoc in financial markets. Even if the US does reach a deal, as expected, it could include big government spending cuts that would hurt the global economy. “There is an opportunity where if we get it right in the politics, in the business and elsewhere,” UBS Chairman Axel Weber said. Japanese electronics company Toshiba Corp Chairman Atsutoshi Nishida, another co-Chair, said resilient dynamism is an engine that drives growth, “but in chaotic social reality of 21st century what is needed is adaptability to the changes”. US major Dow Chemical chief Andrew Liveris, also a co-Chair, said the current economic outlook is not that promising. Besides, not many are addressing issues like food security, energy security, he added. Transparency International's Chair Hugette Labelle, also a WEF meet co-Chair, said a collaboration of government, civil society and business is necessary against corruption. “We have to find new ways keeping in mind commonality of interest so that we can sustain trust and rebuild the trust that has been lost,” he said. Besides financial problems, the need for empowerment of women is also a talking point at the WEF meet. Coca-Cola Chief Muhtar Kent said that women today represent 66 percent of labor force but 10 percent of income worldwide. This is a big inequality. Also, for youth we have not done enough for them to get jobs in the government, business in this generation, he added. Kent noted that going forward clear paths should be charted for the global economy to make it better for the next generation and to empower entrepreneurs, especially women. Emphasizing on the need for a new strategy for banks, UBS Chief Axel Weber said the current strategy has not worked. Meanwhile, Brazilian aircraft maker Embraer's CEO Frederico Curado said that it is time to look forward to spur growth. — Agencies
