If some global business people, journalists and academics wish to waste their own money attending this conference, then I guess we would have nothing to complain about. However, the World Economic Forum, which deliberated last weekend, is also a huge magnet for politicians and public intellectuals to make grand-stand speeches and for politicians to mix with and exchange ideas with major business leaders. It is, in other words, a perfect environment for “crony capitalism” to flourish. Will small businesses be there to make the case against the expansion of regulation such as the EU temporary workers directive? Of course not. They will be hard at work trying to make a living in an increasingly hostile economic climate. David Cameron says that he wants to root out crony capitalism. He should therefore have boycotted Davos.
But, the main objection to Davos must surely be the hubris of those involved. We do not need the “global industry agenda” shaping by self-appointed experts. Industry is shaped by the dispersed decisions of seven billion consumers and millions of businesses. Industry is shaped from the bottom up and not from the top down. Davos attendees would do well to take note of Hayek’s appeal to economists: “The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design”. How little we know is perhaps indicated by the Davos Reports on risk at the 2007 meeting. I could not find any concern about risks within the banking system – bird flu was the main worry.
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