The World Economic Forum Annual Meeting in Davos has wrapped up and it’s clear that money was uppermost on European governments’ minds – be it the lack of or the need to supply the IMF with more funds to avoid a full scale fiscal subsidence across the Eurozone.
On a positive, the unlimited liquidity provided by the European Central Bank’s three-year long term refinancing operation (LTRO) has reduced pressure on European banks and is widely believed to be helping confidence return.
And it needs to. With the World Economic Forum’s Global Confidence Index indicating confidence in global cooperation has dropped it’s more important than ever that government and business communities work together to deliver this much needed growth.
Lee Howell, Managing Director at the World Economic Forum responsible for the Annual Meeting and the Forum’s Global Risks Report 2012 said: “The latest survey suggests that company leaders and public officials will urgently want to focus in Davos and beyond on job generation and spurring growth.” He added: “Low confidence in governance and high concern about disruption are the making of a slow-burning fuse.”
These are two areas highlighted by the 2011 Sage Business Index. In this report, a significant 78 percent of small businesses polled felt that their governments did not provide sufficient advice and support. At the same time the findings indicated that businesses want to focus on the future with investments plans – a third of which saying they intended to invest in sales and marketing. And while none were planning on reducing the workforce, they were not committing to recruiting.
Meanwhile according to a Bloomberg Global Poll, 48 percent of respondents predicted the U.S. will be among the world’s best-performing markets this year compared with 18 percent who are positive about world growth.
It seems teamwork between industry and governments will hold the key to recovery and it has long had the full support of small businesses worldwide.