Schwab: WEF meeting to look at new reality based on geopolitical power shift

01-26-2011 09:06 BJT

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The annual World Economic Forum will open tomorrow (Wednesday) in Davos, Switzerland. Organizers say they're optimistic the five-day forum can provide a roadmap of sorts, on the way forward after three years of global financial and economic turmoil.

The annual World Economic Forum opens under a cloud of economic worries. The theme this year is "Shared Norms for the New Reality". Discussions will focus on the role of the Group of 20 major economies and a still fragile economic recovery. The ongoing power re-distribution will also be high on agenda.

Klaus Schwab, Founder & Executive Chairman of World Economic Forum

Klaus Schwab, Founder & Executive Chairman of World Economic Forum said "I think this should be a meeting which looks at new reality, which is reality based on the shift of geopolitical power from the north to the south, from the west to the east. And I think that is very much reflected in the participation, politically and economically."

Europe's sovereign debt crisis will also be under the spotlight. Some economists expect the crisis to worsen, and wonder if the euro group could even break up.

The forum's founder thinks not.

The annual World Economic Forum will open tomorrow (Wednesday) in Davos, Switzerland.

Klaus Schwab said "I'm absolutely sure that the euro will not collapse, because I think there is still a strong European solidarity in place. I think there is no other choice."

But he suggests that if Europe wants to remain a key actor, it has to hold on to its unity and work together in fiscal, monetary and general economic policies to make sure that the euro is secured.

Organizers will also discuss how to deal with unforeseen risks this year. A report compiled by the forum's in-house think tank highlights 37 global risks, ranging from cyber warfare to public uprisings resulting from population growth and resource shortages.