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        Business / Economy

        Davos important to exchange ideas in time of rapid change

        (Xinhua) Updated: 2014-01-24 10:05

        MADRID - Change in issues pertaining to economic growth means that "no nation or society or any individual" can escape them, Enrique V Iglesias, the secretary general of the Ibero-American Cooperation Secretariat, told Xinhua recently.

        Speaking against the backdrop of the ongoing Davos World Economic Summit, Iglesias said some changes were a product of nature and climate change, whereas others were a product of man-made factors such as technology and the rise of emerging economies.

        "Today China is a power in the social, economic, demographic and political world. An expansion in Chinese consumption will have a major effect on production and global trends," he said.

        Iglesias believed the world was showing "signs of change, which are still incipient." As for exiting the global economic crisis, he said governments can either inject money into the market like the United States or introduce austerity like Europe.

        He said both methods have shown themselves to be imperfect, given that cash injections can lead to debt problems in the future, while austerity sacrifices demands and can lead to massive social problems.

        "I think the solution is to combine both methods: monetary expansion to avoid the fall of production and the disappearance of companies combined with fiscal discipline and efforts to sustain the structure of business, especially small and medium sized companies."

        Iglesais has participated in many Davos forums, both as the director of the Economic Commission for Latin America and also representing the Ibero-American Development Bank.

        He said Davos was important because it provided a platform for world leaders and top businessmen "to exchange ideas and find new political, economic and technological trends to help us face the future."

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