Davos seeks to put 'burned out' leaders back on track

The business and political elite will seek to restore confidence in their leadership as they gather this week in Davos (January 23-26), bracing for more economic turbulence and conflict. World Economic Forum founder Klaus Schwab says the aim of this year's meeting, with the theme 'resilient dynamism', is to help 'burned out' leaders move on from crisis management and get back on track.

 DAVOS, SWITZERLAND (JANUARY 20, 2013) (REUTERS) -  Italian premier Mario Monti will set the tone for beleaguered business and political leaders gathering in Davos this week for the annual World Economic Forum(WEF), with a speech entitled "Leading against the odds".

The pow-wow will bring together more than 1,500 business leaders and up to 50 heads of state or government, many of them, like Monti, weathered by almost perpetual crisis as they fight to bring their economies and companies through global financial turmoil and a few home-grown scandals of their own."What I see is that many politicians have a kind of burn out syndrome, which means it was just too much they had to cope with. That's my concern," WEF founder Klaus Schwab told Reuters, in the midst of final preparations. "So to put them back on track, to look at the future, that's the objective which we have."

Schwab explained why the WEF has chosen 'resilient dynamism' as the theme of this year's gathering: "Because we have been caught too much in pessimism and crisis management, now is the time to move out, to be more dynamic again, to look at the future. We have a responsibility to shape the future - that's the purpose of Davos."

"But on the other hand, we have to be aware we are, and will always be, confronted with risks, that's inherent in a global system. So we have to prepare better for those risks," added the WEF founder.

Though Europe managed - just - to keep the euro zone intact in 2012 and Washington stepped back - at the last minute - from its "fiscal cliff", a WEF survey this month showed business leaders and academics fear politicians are failing to address fundamental problems.

And they will have it all to do again in 2013, subject to the ballot box. Monti will be defending his austerity measures in parliamentary elections in four weeks, and German Chancellor Angela Merkel will be hoping a weekend defeat for her party in a regional election won't derail her re-election later this year.

A contingent from the United States including four secretaries and 14 congressmen will have another looming budget crunch at the back of their minds.

So is that the greatest challenge facing Barack Obama as he formally begins his second presidential term?

"I don't know what he (Obama) thinks. I only wish that the U.S. is re-creating again for itself a leadership position in global affairs. Even if we are in a multi-polar world, we need countries who take the lead in addressing the manifold issues we are confronted with," said Schwab.

One issue no longer dominating the WEF is whether the euro is at risk of imminent collapse. Schwab denied there had been a sense of doom and defeatism over the issue among last year's delegates.

"If you say 'all' then it's wrong, and people didn't listen to Mario Draghi or particularly Chancellor Merkel who made a clear statement here already last year that the euro will survive. And that's what happened," he said.

The WEF's annual risk report cited inequality and the burden of government debt as the biggest economic threats and also highlighted a rise in concern about severe weather, an issue likely to be on the minds of many participants as they struggle even to reachDavos after heavy snowfall cancelled many flights.

The Algerian hostage crisis, the French campaign against Islamists in Mali and the fallout from the Arab Spring will also be hot topics, with many leaders from Africa and theMiddle East attending Davos as well as several oil and gas executives.

The Davos elite will be shielded from dissent by a ring of razor wire and up to 5,000 Swiss soldiers, though activists will be handing out an award for "the worst company of the year", and Swiss left-wing groups plan small protests against financial speculation.