Davos 2010: Better regulations needed to reform economy
For scripting a way for the global economy, in Davos there were more than 2,500 delegates last week. Issues that were discussed for reforming the face of economy included the withdrawal of stimulus, a need of better regulation for the financial system and who should withstand the blame for the economic crisis.
John A Quelch, senior associate dean at Harvard Business School, said, "Well I think last year was the spirit of pessimism. This year, I would say the spirit is one of realism. Not so much optimism. I think most people still feel the world faces tremendous challenges. Unresolved, but we're in a great place this year, compared to where we were last year."
It was felt that the way to go forward was to fix responsibilities on people who were capable of reforming the system. The blame game however between bankers and government officials continued.
Josef Ackermann, chief executive of Deutsche Bank, said, “I mean it's a little bit too simple to put all the blame on bankers and banks.”
After five days of heated conversation and plenty of blame game leaders agreed that in the post-crisis world more regulation was needed. But immediate priority that is needed was sustained recovery and no premature withdrawal of stimulus.