The disastrous aftermath of the massive economic downturn in 2008 gave rise to speculations about widespread political upheaval around the world. It did not take place, thankfully, and the world’s leading economies are growing again. The fear that haunted the minds of the world leaders in 2009 is almost over and a sense of relief was visible in the participants of World Economic Forum Annual Meeting 2010.

Keeping in line with this year’s theme ‘Improve the State of the World: Rethink, Redesign, Rebuild’, the WEF’s objectives were, create values framework, strengthen economic and social welfare, mitigate global risks and address systemic failure, ensure sustainability, enhance security and build effective institutions.

Despite economic indicators pointing towards recovery, a pervasive apprehension lingered in the air that the economic disaster hadn’t been fully averted, as Nik Gowing’s BBC World Debate discussed the possibility of another recession – a double dip – in the coming years. It talked about massive stimuli slowing down due lack of funds as resources dry up. On the brighter side, it was noted that the US quarterly growth rates were the best during Oct-Dec 2009 since 2003.

Before recession, the buzzword was ‘globalisation’, which is now believed to be an unstable system prone to be disrupted by political tensions, therefore leading to financial turmoil. Using his Plenary Address to attack the globalisation concept, French President Sarkozy pushed for a new agreement on the lines of Bretton Woods Agreement (the 1948 post World War II agreement) to regulate the financial system of the world. The speakers argued the notion that nations must not adopt a do-it-alone policy and coordinated policy responses were deemed essential. Financial Times’ Martin Wolf put the obvious questions about the world’s economy coming out of the crisis, the biggest economic challenges ahead and the lessons that should be learned from this disaster.

Coinciding with Davos’ theme, the US President Obama’s State of the Union message emphasised tighter regulation for banks while cutting down their size, and enactment of laws to prevent free-wheeling speculation leading to another recession. In his address, the head of the Central European Bank, Jean-Claude-Trichet supported the US policy crafted by the former World Bank Head Paul Volker. However, the leading bankers of the UK belonging to Standard Chartered, HSBC, and Barclays etc. dismissed the concept of “smaller” banks. It was observed that they were not in sync with their own policy makers who supported Obama’s proposals. Lord Mervyn King, Governor of the Bank of England, recommended carving up international banks and large pay cuts.

The session on ‘Global governance Redesigned’ had six heads of states – Presidents Felipe Calderón of Mexico, Lee Myung-Bak of South Korea, South Africa’s Jacob Zuma, Stephen Harper of Canada, José Luis Rodríguez Zapatero of Spain and Vietnam’s Nguyen Tan Dung. Prime Minister Harper summarised in the best possible manner that every nation had its own national interests which may be in conflict with the world’s interest. He insisted that instead of forcing nations to come into line, the gaps present in the relations of nations should be narrowed down to gain consensus.

NDTV showcased India’s economic success, holding a live TV debate for the first time with 271 participants in a room among whom 237 were Indians. India was represented by four ministers along with six ambassadors from the EU Region. A new found maturity could be observed in India’s approach, as for a change there was no Pakistan-bashing or Pakistan-baiting for that matter. Nevertheless, they tried their best – with the help of glib rhetoric – to gloss over the realities of their arrogance with neighbouring countries. They especially seemed satisfied on being bracketed with China rather than being straitjacketed in the India-Pakistan context.

Top universities like Harvard, MIT, Stanford, etc. ran “Ideas Labs” where the participants debated the world’s current subjects of deep concern such as security, public, health, governance, nuclear non-proliferation in a university classroom format, developing substantive ideas. An outstanding session on “Population Growth” was conducted by the brilliant and committed Harvard Professor David Bloom. Terrorism and nuclear potential having a dangerous nexus in Pakistan, the International Institute for Strategic Studies Head John Chipman moderated a session in which I was a participant as well. It emphasised the need to give a passage to Pakistan to come out of the nuclear isolation, giving it access to nuclear material and fuel through legitimate sources like India, and thus eliminating Pakistan’s need to go to the netherworld of the nuclear black market. Geneva’s Defence Minister Zu Guttenberg and former Australian Foreign Minister Gareth Evans participated with me in a live German and Swiss TV discussion moderated by famous Swiss TV compere Romaine Jean.

Unfortunately, no senior Pakistani official was present in the session on Afghanistan, where the former finance minister of Afghanistan Ashraf Ghani could not avoid making snide comment about Pakistan. However, British Foreign Minister David Miliband forcefully brushed it aside, acknowledging publicly my suggestion that not enough was being done for Pakistan despite its central role. He considered it incongruous that 30000 US soldiers in the “military surge” alone would cost US$1 million per soldier i.e US$30 billion per year, whereas Pakistan would get only US$1.5 billion economic aid through the Kerry-Lugar Bill (the additional military support of US$1.2 billion for Pakistan in 2010 was announced two days later). It was suggested that economic and security assistance for Afghanistan had to be exponentially increase by the US, EU, China and other developed countries to see fruitful results.

In 2009, Pakistani PM Gilani succeeded in gathering positive views for Pakistan through his networking with government officials and business leaders. This time around, with both the president and the prime minister absent, the traditional “Pakistan Breakfast” was missed by the WEF participants. It was the first time in seven years that the Pakistan-specific event attended every year by an average of 300 participants did not take place. This time, even the official Pakistani delegation was missing from the WEF Congress Center. Nevertheless, Pakistani entrepreneurs in Davos, Arif Naqvi, Zakir Mahmood, Hussain Dawood and PSO’s Irfan Qureshi held the fort. With five of us against 100 plus of India’s powerful economic elite – a 20:1 ratio – we fared reasonably well. Arif Naqvi and Hussain Dawood were outstanding in their respective panels on industry and corruption, with Arif being clearly acknowledged as a world class entrepreneur par excellence.

Missing from Davos this year were the usual celebrity star attractions like Naomi Campbell, Michael Douglas, Brad Pitt, Angelina Jolie, etc. however, California’s Governor, Arnold Schwarzenegger was there and so was James Cameron whose session in a cinema theater about his movie Avatar was a major draw. The former US President Bill Clinton’s star appeal was undiminished who eloquently appealed for humanitarian assistance for the sufferers of Haiti earthquake.

With Andre Schneider and his team re-inventing Davos to reflect future world challenges, we should encourage more Pakistani businessmen to attend the WEF. Presidential or PM-level presence, especially, can give Pakistan enormous dividends – not only economically but politically as well, in a ‘redefined’ Davos.

The writer is a defence and political analyst. Email: isehgal@pathfinder9.com