World leaders wrap up Davos discussions on global issues

DAVOS, Switzerland, Jan. 31 (Xinhua) -- World leaders on Sunday concluded their five-day discussions here on post-crisis economic recovery, the improvement of financial regulation and climate change.

An overview captured during the session "The Global Agenda 2010: The View from Davos" at the Congress Centre of the Annual Meeting 2010 of the World Economic Forum in Davos, Switzerland, Jan. 31, 2010. The 40th World Economic Forum (WEF) annual meeting closed in Davos on Sunday after discussing a wide range of global issues. (Xinhua/World Economic Forum/Michael Wuertenberg)

The world economy, after experiencing the worst ever crisis since the Great Depression in the 1930s, is recovering unevenly in different countries and regions, according to the annual meeting of the World Economic Forum (WEF).

Most participants believe the recovery is being led by fast growing emerging markets like China and India, while the United States and European nations are falling behind.

Dominique Strauss-Kahn, managing director of the International Monetary Fund, warned that the recovery, though better than expected, is still fragile.

He urged governments to remain cautious as they examine exit strategies from the various stimulus packages they have implemented in response to the global crisis.

While there is a broad consensus to better regulate the global financial system, participants differed in what kind of changes should be made.

French President Nicolas Sarkozy was among those who advocated a bold reform of the financial system. In his opening address on Wednesday he called for a "new Bretton Woods" so that new rules and institutions could be established.

"We will continue to make our economy run risks greater than it can bear, to encourage speculation and to sacrifice our long-term future, if we do not change the regulation of our banking system and the rules for accounting," he said. 

However, a more cautious view on financial reforms has also been voiced. "We need good regulation, better regulation but not more regulation," said Lord Levene, chairman of British bank Lloyd's during the meeting.