Last week World Economic Forum took place in Davos. This event coincided with the negative processes occurring in the world market. Therefore, this year traditionally optimistic forum was shaken with various opinions regarding future world financial crisis. Many participants tried to mitigate general pessimistic mood, recognizing that the situation is very critical.
Together with 27 heads of states and governments, the President of Azerbaijan, Ilham Aliyev, also attended the Forum. Generally the Forum brought together more than 2,500 participants from 88 countries, including 113 ministers, representatives of leading international organizations and public figures from all regions of the world. The participants also included ex-Prime Minister of Great Britain, Tony Blair and former US Secretary of State, Henry Kissinger.
On the first day of the conference, all bankers, economists and political figures expressed anxiety with the hamstring economy of the USA. The economic professor from New York University, Nuriel Rubin, drew special attention of the participants of Davos conference. Nearly 300 people listened to the speech by the professor. The matter is that already last year in Davos, he warned the participants of the World Economic Forum that a serious crisis will take place. Then, no-one believed him, but now he turned to full capacity and predicted full-value economic apocalypse. He added that the 'mortgage bubble' is just about to break out in Great Britain, Ireland and France.
Well-known financier, George Soros, also made a speech with pessimistic and discreet forecasts. Soros predicts that no measures will keep the US economy from serious fall, but the world economy will continue positive growth indicators and incur losses as well. The globalization enabled the USA to absorb savings of other countries and consume more than produced. Financial markets encouraged the consumers towards borrowings, implementing more difficult instruments. "The current crisis is the sign of the completion of the era of the credit expansion, of which support was USD as international reserve currency," the economist said.
The representatives from the USA were in the most critical mood and the Europeans discussed how the consequences of the US misfortune will be hard. The thesis is that the economic systems are not interconnected because other countries of the world lean on the developing economy, especially China and India. The general fall in the exchanges confirms that the investors is preparing for fall of the world economy in 2008. Jon Snow, former Secretary of the US Treasury, representative of the Board of Directors of Cerberus Capital Management, said that if the USA again sustain economic fall, it will be 'short and superficial'.
The President of Azerbaijan, Ilham Aliyev, made a speech in the Forum as well. In his speech regarding energy security, the President spoke about the growing role of Azerbaijan as an alternative energy source for Europe. Especially the President highlighted the energy projects realized in South Caucasus, irreplaceable role of the Caspian basin as an alternative source of energy security for Europe. The State Head of Azerbaijan said that not only oil, but also natural gas being produced in Caspian are supplied to Europe. The Nobel Laureate for Economy, Edmund Phelps said that Davos Forum brings together people who have something to say.
In addition to the key program of the Forum, the business people and representatives of the State bodies held many mutual meetings to discuss prospects of co-operation and signed contracts. "We consider that it is impossible to achieve social development without economic development, and such responsibility falls both on commercial companies and citizens," said the Head of the Forum, Claus Shvab. In addition, the Forum participants discussed the problems with poverty, climate change, situation in Middle East and Iran's nuclear program.
During the Forum, the Head of Microsoft Corporation, Bill Gates, made a speech on poverty. He considers that the business should not be governed only with own egoist interests. The business should take responsibility for making the world better. He called on his multi-millionaire colleagues to seek ways of making important commodities accessible for those who can not make full payment.
This idea was supported by almost all outstanding participants of the Forum. If Bill Gates promised to give $300mln to the farmers of the developing countries to fight against poverty and hunger, the Prime Minister of Japan, Yasuo Fukuda, suggested to, by 2020, increase the energy efficiency by 30%. The Co-chair of the Davos Forum, Tony Blair, suggested to fight against extremists through developing Palestinian economy.