Davos Summit To Focus On Asia Crisis, Euro

The worlds political and business elite converged in this icy Swiss ski resort yesterday for the ultimate capitalist convention, with the focus on Asias troubles and Europes single currency.

Some 2,000 top industrialists, financiers, central bankers, political leaders, media moguls and a herd of reporters packed into a conference centre as ski-booted tourists tramped outside on the snow-covered pavements.

Despite the uncertain economic outlook amid Asias crisis, the forum began on an upbeat note. A survey of the worlds corporate chieftains found that 95 per cent were optimistic about world growth in the next three years.

Half of 377 CEOs from among the worlds 2,000 biggest companies, surveyed by Price Waterhouse for the annual forum, ranked Asia as offering the worlds greatest opportunity for business despite its plummeting currencies and market turmoil.

 

German Chancellor Helmut Kohl is due to open the week-long meeting, billed as the most important business summit.

Also addressing the opening session is Thailands Prime Minister Chuan Leekpai, who will seek to restore Europes confidence in his countrys efforts to salvage its economy.

On the US front, eyes this year will be on First Lady Hillary Clinton, who has been helping coordinate husband Bill Clintons defence against allegations he had an affair with a former White House aide and then urged her to deny it.

Markets will be watching Davos for clues about economic policy from top financial figures set to attend, including US deputy treasury secretary Lawrence Summers and International Monetary Fund First deputy managing director Stanley Fischer.

Japan-watchers will be looking to Davos in the wake of a bribery scandal that has claimed the head of finance minister Hiroshi Mitsuzuka. On

Wednesday, an official from the ministrys elite banking bureau hanged himself in his Tokyo home.

Also attending are senior economic officials from South Korea and Hong Kong, including a top finance official, the territorys secretary for financial services, Rafael Hui Si-yan.

On the European front, the hot topic will be the single currency due at the start of 1999.

One focus will be Italy, which has made great strides toward qualifying as a founding member of the euro club but still provokes qualms among some about its longer-term prospects.

European Union Monetary Affairs Commissioner Yves-Thibault de Silguy and French Finance Minister Dominique Strauss-Kahn will attend discussions on the euro.

Other key figures attending include three top figures around ailing Russian president Boris Yeltsin Prime Minister Viktor Chernomyrdin and Moscows pair of young liberal reformers, first deputy prime ministers Anatoly Chubais and Boris Nemtsov.

This year, the Muslim fast of Ramzan and the Chinese New Year coincide with the forum, resulting in some no-shows from southeast Asia as well as the Middle East.

However, Iran is still sending foreign minister Kamal Kharrazi and central bank governor Mohsen Nourbakhsh.

Belt-tightening in the emerging world following Asian turmoil may also hit attendance. Philippine President Fidel Ramos has already cancelled plans to attend to save money.

Participants in Davos pay thousands of dollars for the right to network in numerous breakfasts, coffees, lunches, dinners and night-cap sessions and meetings which this year are on topics ranging from Asias crisis and sessions on Latin America and Caspian Sea oil to death and cloning.