Support for economic forum wanes in Davos

The president of the WEF urges his audience not to give in to terrorism threats Keystone Archive

Increased security fears have raised doubts over the future of the World Economic Forum, which is held yearly in Davos.

The forum is traditionally a place where the world’s political and business leaders meet, to discuss important issues in an informal setting.

Former United States president Bill Clinton, former Soviet leader Mikhail Gorbachev, and Microsoft chairman Bill Gates have all been guests in Davos.

But at last year’s WEF meeting, fears of violent demonstrations by anti-globalisation protestors led to such tight security that main streets were sealed off, and normal life was disrupted for the people of Davos.

Fears of terrorist attack

This year, following the terrorist attacks of September 11, the security worries are even greater, and many local people now wonder whether WEF 2002 should go ahead at all.

The president and founder of WEF, Klaus Schwab, travelled to Davos on Saturday to hold an open meeting, in which he urged the audience not to give in to fears of terrorism.

After the meeting Schwab told swissinfo that cancelling the WEF would be tantamount to surrendering to terrorists.

“It would be capitulation,” he said, “and we should not do that. Any cancellation or postponement would be inappropriate.”

Tense international situation

Schwab discounted rumours that the number of participants for WEF 2002 is down from last year, because major world leaders are not keen to travel in the current international situation.

“The fact that everyone feels that Davos can contribute to a vision for the new world we are in means the forum is all the more important,” he said, “so we can assume everyone will be here. We certainly have not had any cancellations.”

Despite Schwab’s confidence, many in Davos are unconvinced that going ahead with the forum is a good idea. Davos tourism director Armin Egger remains basically supportive, but is not sure the forum will be the positive event it once was.

“Up until last year WEF was good for tourism,” Egger told swissinfo. “We got a lot of good coverage in the international press. But for next year I’m not so sure.”

But, Egger added, “the insecurity is not just about WEF, people are basically unsure about the world situation. It’s the most unpredictable situation in the tourist industry for the past 20 years.”

Business fears

After the security restrictions of last year, many small businesses in Davos have made up their minds that the forum would be better off elsewhere.

Sabrina Ris runs a small designer boutique on the main street of Davos, and she says the forum now means a significant loss of business.

“In 2001 they closed the roads, and the police told us to shut up shop because they couldn’t guarantee our safety,” said Ris.

“We had to pay extra insurance in case our windows were smashed,” she said. “And in the end we lost about two weeks worth of business – that’s over SFr60,000. There’s no way we can make that up in the summer season.”

Little support for WEF

At businesses up and down the main street of Davos, it is hard to find support for the World Economic Forum.

In the local record shop Jurg Putzi said he would prefer the forum not to go ahead.

“I would be happy if it did not happen in 2002,” said Putzi. “Last year we had to close everything, there were cops everywhere, it really wasn’t funny.”

Meanwhile at the hairdressers Christina Sondalini also has her doubts.

“I think it’s dangerous,” she said. “It might be good for some businesses such as the hotels, but not for me, and I think it’s better not to go ahead.”

Unanswered questions

The government of canton Graubunden, and the local authorities in Davos, are now caught in a dilemma over whether to approve holding the World Economic Forum.

Klaus Huber, a member of the Graubunden parliament who also sits on the WEF planning committee, said the authorities needed answers to a number of security questions before making a final decision.

“I fully understand the concerns of the Davos business community,” Huber told swissinfo,” and to a certain extent I share them.”

“Our main problem,”he continued, “is to ensure that security can be guaranteed. If we can’t do that the forum cannot go ahead.”

Huber said that one of the biggest headaches was finding enough police officers to mount the necessary security operation.

“Switzerland does not have a national police force”, he pointed out, “so we are reliant on support from other cantons, and we don’t know yet whether that will be forthcoming.”

Support from the government

The authorities in Graubunden are also hoping for more support from the federal government in Bern, if they do decide to go ahead with the forum. The necessary security operation is expected to cost up to SFr10 million.

At the moment the government is committed to paying nearly half of this sum, but the parliament in Graubunden has yet to approve its share.

Canton Graubunden has also asked the Swiss government for an analysis of the international situation, but this has not yet been forthcoming. A spokesman for the department of foreign affairs said the international situation and its effect on the forum would be assessed, but added that it was too soon to make a final decision.

Risks too great

But many people who live in Davos have already made up their minds. For people like Sabrina Ris the events of September 11, and their potential implications for the World Economic Forum, were the deciding factor.

“It’s not just about money any more,” said Ris. “For the first year ever I am actually frightened. If you live here, if you have children and friends here, you have to worry about what could happen.”

“I don’t like to say they shouldn’t have it,” she continued. “But not here, not in Davos. That’s not an objective opinion of course, I’m being very subjective, but Davos is my place, it’s where I live.”

by Imogen Foulkes