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World Economic Forum opens in Davos

The 40th World Economic Forum opened in the Swiss city of Davos with the aim of reviewing the status of the world’s economy.

Almost 2500 business leaders and important government officials have attended the five-day meeting to work together and address pressing challenges in order to strengthen world’s financial system.

The event, titled “Improve the State of the World: Rethink, Redesign, Rebuild” was opened by French President Nicolas Sarkozy.

Sarkozy said that it will not be possible to emerge from the global economic crisis and protect against future crises if the economic imbalances that are at the root of the problem are not addressed.

“Countries with trade surpluses must consume more and improve the living standards and social protection of their citizens,” he remarked. “Countries with deficits must make an effort to consume a little less and repay their debts.”

Banks and their future will be a main theme during the five days forum at Davos. Some bankers seem to be more confident about the recovery this year after they stayed away last year in the heat of the financial meltdown.

Muhammad Yunus, the Managing Director of Grameen Bank in Bangladesh said, “It is not only the great recession, I think, it is a bundle of crises, not one crisis, in the same period; the food crisis, the financial crisis, the global warming crisis.”

Peter Sands, the CEO of Britain’s Standard Chartered Bank said that his industry already has been “fundamentally changed” by tighter regulations and supervision, while Deutsche Bank Chairman Josef Ackermann said “we will all be losers” if governments clamp down on markets too zealously.

The forum’s Executive Chairman Klaus Schwab said that the future of Haiti after its devastating quake will also be discussed.

On Haiti, the forum has created a joint initiative with the Clinton Global Initiative and the United Nations to encourage business in the country’s long-term economic development.

“We hope that we can present a major common effort to the world community showing true corporate global citizenship in Davos,” Schwab said.

The slim US presence suggests that Davos is not a high priority for Obama’s administration. After years of top-level US participation under George W. Bush, this year, the highest US official attending the summit is Lawrence Summers, the Director of the National Economic Council.

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