Davos: Shooting long range

World leaders gathered, as they have for 41 years now, in Davos for the annual meeting of the World Economic Forum recently. Careful in making generalisations, business leaders and policy leaders perhaps urged the importance of taking a long term view of sustainable growth.
A survey of global leaders cited at the summit pointed out that uncertainty of policy measures, emphasis on green technologies, strategic investments in the next-11 countries and a shortage of talented workers remained key concerns in 2010.
After witnessing a rapid recovery in the year that passed, primarily on the strength of the emerging economies, growth is set to taper due to the concerns of the European sovereign debt and the gorilla in the room - American long-term deficit. Tepid recovery in Europe and the US has led the growth engines of the world to figure out other dimensions of growth.
Growing consumption in emerging Asia is resulting in disproportionate increases in intra-regional trade as opposed to dependence on advanced economies where consumer confidence is still being held hostage to high levels of private credit.
The remarkable growth of China and India was celebrated and fears of bubble or overheating were downplayed. Experts were confident that both the shining stars of Asia would continue to grow at a healthy pace through the next year.
If the glass is half full approach is entertained, Nouriel Roubini, points out that the risk of double dip recession has been largely warded off, companies balance sheets in the advanced economies are cash rich and borrowing costs have come down significantly.
As the recovery phase pushes into its second year, world leaders envision a long-term growth strategy that is innovative and sustainable. "We believe that short-term profits and long-term sustainability are not mutually exclusive," said India Nooyi, CEO Pepsico speaking about the future of enterprise at the conference.
The biggest concern for the economy is the rising price of oil and other commodities. Inflation resulting from the sharp rise in food and energy costs has resulted in protests in many countries, the most significant being the revolts in Tunisia and Egypt, which dominated the international relations discourse at the event.
Inequality in income and wealth and the impact of rapidly changing demographics were themes that echoed through the many panel discussions. While no clear solutions to issues of such an enormous magnitude were reached, it is a healthy development that the debate has kicked off.