Davos economic forum
January 25, 2012
Snow plows push tirelessly through the streets near the Congress Center in Davos, Switzerland. The final preparations are underway for the roughly 3,000 participants that are expected at the World Economic Forum (WEF).
There hasn't been so much snow in the small Swiss town since 1968, and it isn't showing any signs of letting up. All the plows are in use, but the streets and sidewalks won't be completely cleaned up by the time the conference starts.
Extraordinary conditions
The small town of 13,000 inhabitants, which bills itself as the "highest city in Europe," is experiencing extraordinary conditions. Security personnel have closed streets and paths, and public busses are being forced to take detours.
"Anyone looking for an electrician right now will be out of luck," said Hansruedi Bertschinger, a 55-year-old who rents out holiday apartments. "Everyone has to wait until the World Economic Forum is over."
The demand for Bertschinger's apartments is high for the Forum. During the Forum, he could rent out each apartment three or four times over, and the prices reflect this demand. A simply-equipped holiday apartment with two bedrooms costs 7,000 Swiss francs (5,800 euros, $7,500). That's at the cheaper end of the spectrum. Some chalets go for 100,000 francs for the week. There hasn't been a hotel room available for several months, either.
The residents of Davos benefit greatly from the WEF, and only few complain when they have to sit in traffic or are denied access to their favorite café because it is inside a secure area.
"The great transformation - shaping new models" is the theme of this year's WEF. Klaus Schwab, who founded the annual forum in 1972 and remains its president, refers to a "global burnout" because of the global economic climate and the debt crisis.
In Davos, alternatives to Anglo-Saxon-influenced capitalism are to be discussed, which has lead to a first in the history of the WEF. The Occupy movement is being allowed to set up an igloo village and draw attention to its criticisms of the current system.
Rich topics
The WEF will be opened with a widely-anticipated speech from German Chancellor Angela Merkel on Wednesday evening. German economic policy seems to be effective despite, or perhaps because of, slamming the brakes on debt. Other countries are trying to create growth based on credit and are facing a disaster.
Nevertheless, the German model is only being viewed with respect, and not much understanding. There are doubts that it would work for other countries. Maybe stimulus packages - and the incurred debt - are really the way to go? Participants at the WEF won't suffer for a lack of things to talk about.
Billionaire George Soros, who once nearly brought down the British pound based on financial speculation, has been sighted at a simple Davos restaurant. He'll be giving his take of the eurozone crisis at a lunch on Wednesday. But first more snow needs to be cleared if the WEF participants are even to have a chance of arriving.
Author: Manuela Kasper-Claridge, Davos / mz
Editor: Michael Lawton