World Economic Forum: Gloomy mood casts dark shadows over the event

DAVOS: The snow is thick on the ground, and drapes the roofs of chalets that dot the landscape. The picturesque view notwithstanding, the mood at Davos, where the world's political and business elite are assembling to discuss ways to manage 'the great transformation', is grim.

More than 50% of experts polled by the WEF expect a major global geopolitical disruption in the next 12 months. More than 60% lack confidence in global governance, or in politicians' ability to tackle the issues facing the world. Fears of a geopolitical disruption underline the increasing distrust the world has about the political class.

"Low confidence in governance and high concern about disruption are the making of a slow-burning fuse," says Michael Useem, a professor at the University of Pennsylvania's Wharton School at Davos, where some 40 heads of state and 85 ministers will knock heads with 2,600 top business leaders.

Underlying the heavily jargonised topics, the big worries facing the Davos community this year are how to create jobs and live in a low-growth world. According to WEF's founder Klaus Schwab, one issue that needs a "new model" is the shifting bal ance of power from the West to East.

As the gloomy mood casts a dark shadow over the week, one observation is cause for cheer. "Whatever they decide here never actually happens. I've been coming here for years," says one American journalist. As Davos has acquired a reputation of being the world's greatest talkfest, the consensus, as it is known, has acquired a reputation for being almost always incorrect.