Davos optimism downplays corruption, other risks

DAVOS, Switzerland (AP) - The political, business and academic elites at the World Economic Forum (WEF) expressed renewed optimism at the global economy, with more liquidity, more unity in Europe and the fiscal cliff scaled by US politicians. But other risks, especially that of not doing enough to combat persistent corruption, are emerging as new threats to a fragile global economy beset by challenges.

"In my view, the mood actually bordered onto complacency," said Mr Axel Weber, chairman of UBS, Switzerland's biggest bank, which he acknowledged has a poor image due to a series of big corruption scandals. "I think the mood has been 'good' - too good to be true - and therefore I think some expectation management really clearly is in order at the closing session here."

And while there was talk of restoring trust, there was less discussion of how to tackle the corruption that is undermining it.

The corruption that afflicts governments, businesses and organisations deserves more attention, says Ms Huguette Labelle, chair of Transparency International.