Iran, Syria set to dominate Davos

The bloody civil war in Syria and Iran's efforts to come in from the diplomatic cold will drive the agenda next week as world leaders, business chiefs and celebrities gather in the Swiss resort of Davos.

Iranian President Hassan Rouhani will be among more than 40 leaders and 2,000 of the world's most powerful economic players expected at the annual gathering that starts on Tuesday.

He is hoping to drum up international investment for his sanction-hit economy on the back of a diplomatic entente with the West.

Benjamin Netanyahu, prime minister of Israel, will also be speaking, and although the two are not scheduled to meet, anything is possible in the conference corridors.

Looming over proceedings this year will be the long-awaited 'Geneva 2' peace talks, aimed at ending the three-year bloodbath in Syria, which will take place at the same time in the Swiss town of Montreux.

John Kerry, US secretary of state, fresh from the talks in Montreux, is scheduled to give a key address on Friday.

A Western business consultant who works with many of the world's biggest companies said, "I would be surprised if you saw Iran shooting quickly to the top of the list of attractive markets, although it may be attractive for certain manufactured-goods companies in the short to medium term.

"The fact that Iran is making signals in the right direction is welcome, but I think the bulk of business people will be cautious and will play a bit of a wait-and-see game," he said, asking not to be identified due to political sensitivities.

After a charm offensive at the United Nations in September, the pragmatic Rouhani is set to address the World Economic Forum at the Swiss resort on Thursday.

The White House released a summary last week of November's interim deal between Iran and six world powers, under which Iran agreed to stop production of 20 percent enriched uranium by Monday.

In return, some sanctions imposed over the nuclear program - which Western countries suspect is aimed at developing arms despite Iranian denials - will be relaxed on Monday.

Under the interim accord, business opportunities in the short term are limited mostly to areas such as food and consumer goods, medicines, cars and petrochemicals. Iran will be able to spend $4.2 billion in unfrozen funds over six months, although most sanctions remain pending a long-term agreement.

On the economic front, the plight of emerging economies hit by a change in monetary policy in the US will play a major role in the Davos deliberations.

President Dilma Rousseff of Brazil, where the economy took a sharp turn for the worse last year, will defend the state of her nation, now battling inflation and slow growth.

Geopolitics will dominate the visit by Japanese Prime Minister Shinzo Abe, who instead of talking up reforms that are turning around years of economic gloom will likely face questions over tensions with China, which have focused mainly on China's Diaoyu Islands in the East China Sea.

Africa, now often considered an emerging power in its own right, will be represented by Rwandan President Paul Kagame and Liberian president Ellen Johnson Sirleaf.

As usual, a slew of central bankers and top economic policymakers will make the trek, with European Central Bank President Mario Draghi set to forecast the state of the economy with Mark Carney, the Canadian now running the Bank of England.

International Monetary Fund head Christine Lagarde will also address the forum, along with a plethora of finance ministers from around the world.

On the business side, Yahoo Chief Executive Marissa Mayer will feature prominently as will Facebook No 2 Sheryl Sandberg.

Actors Matt Damon and Goldie Hawn and U2 frontman Bono are also scheduled to attend.

AFP - Reuters

(China Daily 01/20/2014 page11)