The annual meeting of the World Economic Forum (WEF) for 2014 was held in Davos, Switzerland, from January 22 to 25. More than 2500 participants from over 100 countries and regions discussed practicable ways of reshaping global economic patterns and achieving sustainable development. The World Economic Forum chairman Klaus Schwab set the tone for the annual meeting: “We should seek for ways of addressing fundamental problems and explore the future in ways which are more constructive and strategic.”

In the midst of the current reshaping of the world economy, much of the focus is on China

Since the international financial crisis broke out over five years ago, there has been increasing optimism about the world economy within Europe and the U.S. Schwab pointed out that in the context of the current adjustment and reshaping of the world economy, China is drawing a lot of attention.

During the forum there were some special activities focused on China, aiming to showcase how China’s development brings new opportunities to the world, which received an enthusiastic reception. An attendant from Kazakhstan told this reporter that the market and investment opportunities caused by China’s new round of reforms have brought hope to entrepreneurs in the Central Asian region. Seminars and debates entitled “the Chinese context”, “China taking the center stage”, and “tracing China’s future development blueprint with the Chinese Academy of Social Sciences (CASS)” were popular with the foreign media and participants.

CASS Member Yu Yongding said that the lower Yuan/dollar exchange rate has recently increased worldwide attention on the process of China’s exchange rate reform. He expressed his feeling that as long as the impact on economic growth can be controlled, this year China should accelerate the marketization of exchange rate, alter the balance of payments of the RMB and fix a more reasonable goal for asset allocation. Yu points out that the RMB’s internalization can be realized gradually through exchange rate reform, driving a reasonable allocation of RMB assets. He said that the weight of creditors’ rights within the RMB needs to be increased through the currency’s internationalization.

Helping young people find jobs can avoid the creation of a “lost generation” of Europeans

Released by the International Labor Organization in Geneva on January 20th, the latest report on global employment trends indicates that in 2013 the global unemployment rate was 6%, with an unemployed population of 0.202 billion, 5 million more than in 2012; the number of global laborers in extreme poverty with less than 1.25 dollars of average daily income remains at 0.375 billion; the global employment rate of youths aged 15 to 24 was 13.1%, while the number of unemployed in that age group reached 74.5 million. The International Labor Organization predicted in the report that the 2014 unemployment rate may reach 6.1%.

“If a young person can’t find a job within two to three years of receiving their training, their chances of entering the labor market will reduce by 80%” said Didier Burkhalter, President of the Swiss Federation, adding that we should build a bridge between education and training as well as a bridge between youths, teenagers and adults. He noted that although many of the forum’s participants are optimistic about 2014’s economic growth, the high unemployment rate has been an obstacle over the long term for many countries’ recovery.

Giuseppe Recchi, Chairman of Italy’s Ente Nazionale ldrocarburi (ENI), pointed out that a “lost generation” of Europeans will be created if the problem of structural unemployment is not solved, because if a young person can’t find a job within two to three years after graduation, their future is likely to be lost.

Participants from Europe and the U.S. pointed out that Europe’s advantages, like high-quality education, laws and technological innovation will not vanish instantly, in particular for Germany. However, these advantages may disappear if Europe can’t accelerate the establishment of a flexible labor market, enhance competiveness and reduce the costs of doing business through the reform of its economy and business regulations.

A discussion themed “Europe’s Second Renaissance” will also be held during the forum. According to the explanation in the forum handbook, Europe’s first renaissance was “the Renaissance” that took place from the 14th to the 16th centuries, bringing about the European revolution in the sciences and arts, and creating the European civilization of modern times. According to much of the media analysis, the “Second European Renaissance” proposed at this year’s Davos forum indicates that European countries have begun to feel optimistic and determined again after going through the financial crisis.

Translated by Yu Hui

Revised by Gabriele Corsetti