DAVOS JANUARY 2011:THE IRISH are in short supply as luminaries from the worlds of politics, business, religion, education and entertainment mingle in Davos to discuss the state the global economy.
As befits a bailed-out State whose financial system is on its knees, this year’s gathering of the global elite kicked off last night in the Swiss Alps with only a handful of Irish bankers due to attend and few other Irish besides.
Top-ranking bankers from the likes of AlB and the Bank of Ireland were frequent attendees in the snow-clad resort in the days before humiliating taxpayer rescues.
According to the official attendance list for the 41st World Economic Forum (WEF), the only Irish bankers due this week are representing international institutions.
These include Peter Sutherland of Goldman Sachs International, himself a WEF board member, and his Goldman colleague Richard Gnodde. Also due to attend is John Hourican of Royal Bank of Scotland.
It doesn’t stop there, however. The small Irish contingent includes Bono and Archbishop Diarmuid Martin, who is due to participate in discussions on “the Social Network Addiction” and “Media’s Role in Shaping Norms”.
If fewer Irish confidently stride these days with the masters of the universe, new research published to coincide with the Davos event suggests Ireland is now the world’s second most globalised state.
According to Ernst Young and the Economist Intelligence Unit, Ireland comes after only Singapore when judged by openness to global trade, capital movements, the exchange of technology and ideas, labour movements and cultural integration. If only such rankings helped the national finances.
British prime minister David Cameron is due to speak in Davos, as are Israeli president Shimon Peres and European Central Bank chief Jean-Claude Trichet.
The meeting, often described as the world’s premier networking event, comes this year as Europe grapples with what remains a grave threat to the single currency and as the Obama administration strives to inject employment growth into the nascent American recovery.
While US treasury secretary Timothy Geithner might throw some light on that most testing of challenges when he addresses delegates, many here say the most remarkable feature is the return of the Wall Street titans to Switzerland.
As profits advance again and top bankers declare the time for apologies has passed, the world’s mightiest institutions have booked the finest hotels for cocktail receptions and dinners.
Entrance by invitation only, of course.
JP Morgan chief Jamie Dimon returns to Davos after skipping last year.
Having defied the 2008 debacle to emerge with an enlarged bank, Dimon is scheduled to take part in a panel discussion titled “The Next Shock: Are We Better Prepared?”
Also present is Vikram Pandit of Citigroup, Brian Moynihan of Bank of America and Bob Diamond of Barclay’s. This mood in Davos this year reflects increasing confidence about the global recovery.
Although this is crucial for Ireland’s prospects, much of the optimism reflects high hopes for emerging markets.
Still, accountants PricewaterhouseCoopers say in a survey that optimism among chief executives is close to levels seen before the financial crisis erupted.
“Chief executives have emerged from the bunker mentality of surviving the recession,” said PwC chairman Dennis Nally.
“People are feeling better. Twelve months ago when we were here, there were a lot of questions around, are we looking at a double-dip . . . I think we are past that.”
