January 27, 2000
Associated Press
by Geir Moulson

DAVOS, Switzerland (AP) -- An annual Alpine gathering of the world's political and corporate elite kicked off Thursday with the hosts cautioning that free trade must be people-friendly.

After two years in which the World Economic Forum has been overshadowed by economic crises in Asia and beyond, "we are not confronted with any overwhelming crisis," said Klaus Schwab, the organization's president, said at a low-key opening ceremony.

But relief over global economic improvement was tempered by memories of violent demonstrations against the World Trade Organization's Seattle meeting in December, when city was rocked by protesters opposed to the WTO's free-trade philosophy.

"The state of the global economy is excellent," Swiss President Adolf Ogi told delegates. "There is, however, a downside. This is nothing new, but it is growing in importance. Massive discontent, sometimes veiled, sometimes not so veiled, is all around us."

Preparations for this year's six-day gathering -- featuring 300 politicians including U.S. President Bill Clinton, 1,200 business leaders and 400 prominent academics and cultural figures -- have been marked by nervousness at the prospect of protests by groups opposing globalization and power.

Although expressing concern at the backlash against"globalization," few of the political leaders and chief executives here are suggesting any change. Mexican ministers came out fighting against the Seattle protesters' objections to free trade.

"We believe that the message that some people wanted to send from Seattle was the wrong message," Commerce Secretary Herminio Blanco told reporters. "I think really there is no serious substance to this," added the country's Treasury Secretary Jose Angel Gurria. "There is no other way. It is there -- we have to live with it, we have to take advantage of it, we have to ride it and profit from it.Swiss authorities have banned a demonstration in Davos Saturday, when Clinton will pay a quick visit. But organizers have vowed to go ahead anyway.

Many ordinary people "feel not exactly empowered," Ogi conceded. "Their feelings have been in evidence in Seattle and, if we are honest with ourselves, we all know that this is not the last we have heard of it." Organizers promise views from both sides, with WTO Director-General Mike Moore and unionists including John Sweeney, president of the umbrella organization of U.S. labor, the AFL-CIO, appearing at the forum Friday. Also scheduled to appear are British Prime Minister Tony Blair and his Turkish counterpart Bulent Ecevit.

World Bank President James Wolfensohn, on his way from Washington, D.C., promised to "speak to leaders of the technology industry on how to use knowledge technology in combating poverty."

Among the technology titans present will be Bill Gates of Microsoft Corp.