So what was actually achieved at Davos?

Most business leaders attend not to learn about the latest trends in robotics or the arts, but to do business. (Reuters)
Updated 26 January 2019
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So what was actually achieved at Davos?

  • From resolutions and understanding on climate change, to statements of intent on economic policy and international relations, they were all worthy developments

DAVOS: As the last of the private jets left Davos on Friday, many were asking: What exactly was achieved at the annual meeting of the global elite?

One WEF official said wearily: “They ask that every year, but it’s not really the point. It is always good to talk to different people, and as somebody said, if you’re talking it means you’re not fighting.”

But it is an increasingly touchy subject for the WEF. The forum pointedly issued a press release on the final day listing “33 ways Davos 19 made an impact on the world.” From resolutions and understanding on climate change, to statements of intent on economic policy and international relations, they were all worthy developments.

Global themes were the biggest newsmakers. The US-China “trade war” was probably the most often-heard phrase, followed by growing concern over the global economy; Brexit was never far from the top of the agenda; Venezuela dominated proceedings toward the end of the week.

Climate change and environmental concerns were also dominant, partly because of the eloquent advocacy of Sir David Attenborough.

The Middle East was a constant theme too, not least because of the big presence of leaders from Saudi Arabia, the UAE and other Arab states. Most sessions on Middle East subjects — from security to economic transformation to energy— were packed.

In any case, most business leaders attend not to learn about the latest trends in robotics or the arts, but to do business. One global corporate chief told Arab News he had fitted 50 “bilaterals” — deal-doing business meetings — into three days.


Russian arrests of foreign businessmen shocks Western investors

Updated 1 min 46 sec ago
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Russian arrests of foreign businessmen shocks Western investors

  • Baring Vostok's executives were arrested in a case brought with the help of the FSB security service
  • It is just the latest in a long line of cases in which top business people have been accused of crimes motivated by commercial or political interests
MOSCOW: The arrest in Russia of prominent US and French investors on suspicion of fraud has sent shockwaves through Western business circles and sparked fears of cutbacks in foreign investment sorely needed for economic growth.
The founder and employees of the Baring Vostok private equity firm were arrested on Friday in a case brought with the help of the FSB security service.
The arrest took place on the same day Russia hosted leading business people in the Black Sea resort of Sochi for a major economic forum which trumpeted the country’s openness to investment.
Michael Calvey, a US citizen and the founder and director of Baring Vostok, has been placed in pre-trial detention in a Moscow jail for the next two months for alleged fraud, along with five others — including Philippe Delpal, a French citizen.
They are accused of defrauding Vostochny Bank of at least 2.5 billion rubles ($37.7 million). All of them deny any wrongdoing and blame the case on a shareholder dispute.
In an opinion piece on Monday in the Vedomosti business daily, Maxim Bouev — vice-rector of Moscow’s New Economic School — wrote the case proves what investors have long known: “If you want to invest in Russia, you have to accept your risk of eventually being arrested and finding yourself in the dock.”
This is the latest in a long line of cases in which top business people have been accused of crimes motivated by commercial or political interests, but these have rarely involved foreigners.
Business figures and economists reacted strongly to investigators swooping on Baring Vostok, founded 25 years ago, which has brought in investments of more than $3 billion to Russia despite the geopolitical tensions and Western sanctions of recent years.
Arkady Volozh, the CEO of Russian Internet giant Yandex, defended Calvey in a statement, saying he “has always been a standard for the market of decency and law-abidingness.”
Other business leaders said they fear the case will deal a severe blow to an investment climate already marred by corruption and the lack of independent courts — especially given the strong-arm tactics employed.
“This gives Russia a hateful image abroad,” the president of the French-Russian chamber of commerce, Emmanuel Quidet, told AFP.
The chamber on Monday said it was “very concerned” about the arrests in a joint statement with the Association of European Businesses, a federation of multinational companies working in Russia.
The case could “severely damage the climate and attractiveness of Russia for direct investments from abroad,” it said.
The Kremlin sought to dispel those fears, with spokesman Dmitry Peskov saying Calvey’s arrest should “not affect the investment climate” in Russia.
He added he was aware of the contribution to the Russian economy made by Calvey, who has met President Vladimir Putin numerous times.
The government in early February unveiled a 340 billion euros ($385 billion) plan to achieve its economic goals and support growth that is forecast to slow this year. This will require major private investment.
“It’s an electric shock,” a source in the Association of European Businesses told AFP.
“You get the impression that business rivals are using the justice system and Russian (security) services to settle their scores. But the fact that the authorities are letting this happen sends out a very negative signal. You wonder who will be next.”
In the Novaya Gazeta independent newspaper, outspoken commentator Yulia Latynina claimed that in the context of current East-West tensions, “for security officials, business people are criminals and foreigners are spies.”
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