By
The Associated Press
DAVOS, Switzerland - The annual World Economic Forum opened yesterday with speakers playing down fears of a worldwide recession but predicting dramatic slowdowns in the United States and Japan.
"We are not talking about global recession. We are talking about a slowdown on non-sustainable growth," said Jacob Frenkel, former governor of the Bank of Israel.
Frenkel said that while it has long been clear that U.S. economic growth would have to slacken from its pace of recent years, the change should not impact the whole world.
"When a giant sneezes, the neighbors feel it - especially Mexico and Canada - but the rest of the world is going to be seeing a much lesser problem," he said.
Economists predicted continued growth for Europe but said the outlook was far less rosy for Japan.
The six-day forum was expected to bring 3,200 politicians, business people and cultural leaders to the Alpine resort of Davos - as well as thousands of protesters.
In its 31st year, the forum's program is dominated by technology issues. Participants will be looking at the future of e-commerce following the collapse of some major Internet companies, and looking for ways to ensure parts of the world are not left behind amid technological progress.
The summit will also play host to Balkan leaders hoping to sketch a new economic map, including the possible creation of a customs union. New national leaders, such as Yugoslavia's Vojislav Kostunica and Mexico's Vicente Fox will have a chance to meet their counterparts.
Meanwhile, police and soldiers were preparing for thousands of protesters expected to make their way to Davos by Saturday for demonstrations against global capitalism and the World Trade Organization.
"We want to prevent these self-titled 'global leaders' from meeting behind closed doors to decide the future of the planet to their favor," said a statement by Anti-WTO Coordination, the group leading the protests.
Last year's demonstrations turned violent, with two police officers injured and protesters damaging a local McDonald's.
Swiss police have called in reinforcements from across Switzerland and Liechtenstein and are drafting in 600 soldiers.
On Thursday, one fur shop in Davos - a pricey ski resort - was boarding up its windows for fear of attacks.
