A new reality

The five-day traditional forum in Davos, Switzerland has recently concluded. This time, the gathering brought together a large number of leaders and other well-known people from the fields of politics, economics, ecology and other fields.

The motto of this year's meeting was "common norms for a new reality". The forum showed the pulse of global events, problems that occupy the world and new ideas and trends. It has been shown that the one world economy and capitalist values ​​dominate the world.

The most frequently spoken word was recovery as opposed to previous years when it was crisis. In the foreground were company managers from fast-growing economies and Arab financiers, and to a lesser extent those from investment banks and hedge funds.

The global crisis called into question one of the fundamental assumptions of the functioning of the global economy, so that the former British prime minister described the recession as "the first crisis of globalization".

Political leaders emphasized that the big banks were saved because without them the economies would not survive. Investor confidence has returned as evidenced by good sales in the primary market of government bonds of several European Union countries.

It was also pointed out the need, which directly stems from the common currency euro, that the Union needs even more harmonization of social and other systems. It is a unique position of European leaders that they must strengthen the common market more than ever before.

One of the forum sessions was devoted to investments, with the key conclusion being that there is no shortage of investment opportunities despite the downturns, and that developing countries still represent a good investment opportunity.

This is a message for all countries, including ours, that we should continue to improve the investment environment. It was assessed that there are many chances that returns on investments of around 15% can be achieved in developing countries; especially where there are markets but not enough competition and where modern risk models have not yet been developed.

It is likely that there will be fewer long-term investments in the coming years, according to experts, because markets will be more volatile and volatile, so managers will focus more on short-term strategies.

This is all the more because investors will increasingly demand a higher degree of liquidity and transparency. Business schools were told to focus less on investment returns in education and pay more attention to the issue of investment risk assessment, emphasizing the need for more rigorous discipline when it comes to quality entrepreneurship.

The term "developing countries" is becoming less precise and requires redefinition. Namely, fast-growing economies have been showing consistently high growth rates for a number of years, so that some have not even experienced a recession.

On the other hand, there are still quite a few countries that are poor and affected by the crisis of rising food prices and other problems. And that is part of the new reality, as many notice, as well as the fact that part of the power of the big is slowly being transferred to the new economic giants.