Editorial

Dismal in Davos

Since its founding in 1971, the World Economic Forum has always showcased the biggest names in global affairs. In recent years, the annual event held in the mountains of Davos, Switzerland, has been graced by corporate hotshots, government planners and a few movie stars.

Last year, the mood was already cautious. Then, oil prices were soaring while stock markets were falling. The possibility of recession in the United States loomed. The saving grace, it appeared, were the markets of Europe and Asia, which everybody expected to cushion the world from the impact of a shrinking American economy.

This year it?s official: the United States is in recession. Despite its having just inaugurated a charismatic new president?who will not attend the forum?the ills are real and likely to linger.

Worse, contrary to last year?s expectations, European and Asian economies are not in a better situation, either. The United Kingdom, Germany and Japan have fallen into recession themselves; banks have had to be bailed out and even China has posted the slowest growth in years.

While the forum recognizes the threat brought by geopolitical tensions in several parts of the world, the pervading concern is arresting economic woes through a mix of stop-gap solutions and long-term reforms. These are best done, not by highly paid corporate executives who have shown how greed could cloud their judgment, but by governments. ?Politicians, not corporate titans, are poised to be the big draw this year, echoing the broader power shift away from the free market as one government after another tries to prop up its sinking economy,? says the International Herald Tribune.

And indeed it appears that even in the face of globalization, it?s each nation for itself. The role of individual countries? leaders is more crucial than ever, as they are expected to bring, or bring back, basic strengths of their economies through good governance and prudent decisions.

For instance, Socio-economic Planning Secretary Ralph Recto says the global crisis will last longer than expected as he makes a pitch for a P300-billion stimulus package of our own. The picture is far from rosy as companies propelling our export industries are closing shop and laying off workers, and our migrant workers are expected to send less money or lose their jobs altogether.

But the stimulus program will only achieve its goal if it is carried out in the best interests of the country, not to advance the agenda of politicians or the business interests of their associates. Only then can real development be achieved.

Economic cycles come and go, but bad leaders will come and stay?if we let them.