Davos Defenders of Globalization Fight to Show 2014 Is Not 1914

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http://www.bloomberg.com/news/2014-01-16/davos-defenders-of-globalization-fight-to-show-2014-is-not-1914.html


Photographer: Gianluca Colla/Bloomberg
Fresh snow covers the brim of a woman's hat as she walks past the Kongress Zentrum,


Davos, the spiritual home of globalization, is having to defend its vision.

As the Swiss ski resort prepares to host its next who’s who of decision-makers on Jan. 22-25, the World Economic Forum’s abiding belief that “improving the state of the world” is compatible with closer integration has taken a beating.

The financial crisis that struck in 2008 raised questions about whether globalization was more of a threat than a boon, Bloomberg Businessweek reports in its Jan. 20 issue. Even as recession recedes, its ravages are visible and countries are more inclined to protect trade and their financial markets than become vulnerable again. Charles Collyns, who was assistant U.S. Treasury secretary for international finance, puts it bluntly, saying “globalization has stalled.”

“What we’re moving toward is a system which on paper is open, but beneath the surface is increasingly distorted by all kinds of subsidies and buy-local provisions,” said Simon Evenett, professor of international trade at the University of St. Gallen in Switzerland.