'I don't see too many signs of recovery'

Global economies are on the road to recovery, but as the finance ministers of G20 nations suggested, caution is still the buzzword for the new financial order. Klaus Schwab, the chairman of the World Economic Forum, is concerned that global corporate citizens haven���t quite learned the lessons from the recession. He spoke to ET Now in an exclusive interview. Excerpts:

Is the world too euphoric about the turnaround?
I feel we should be optimistic. The facts on the ground show caution is still the right approach. We don���t know yet whether the world economies are self-sustaining. (Watch)

In actions, are global economies a tad overconfident about this?
In the real economies, I don���t see too many signs of recovery.

Are financial markets and real econo-mies disconnected?
The financial system is ahead of the real economy. In the financial system, $3 trillion was lost and only half of it is reconstituted. We still don���t know what is happening in US banks, we are not quite out of the woods. G20 governments have recognised that we can���t go further just like this. We have to ask when the economies will sustain. I think it will be in second half of 2010 or perhaps in 2011.

Do you think that this is the right time for nations to exit stimulus measures, including India?
India may be one of the first few to move out of trouble. The governments should be careful about exiting stimulus plans. I would say India should move in tandem with the rest of the world. There are two ways to look at an exit strategy, one is when to stop the stimulus and the other is how to exit from the enormous debt which we [economies] have now.

The world hasn���t quite learnt its lessons from this recession?
No, I am very concerned about this. Lessons from this crisis should be that we should not move in any direction that we have in the past. Many of our systems are unsustainable. We have to think in terms of how better can we cooperate with the world, what values we want to have, what���s the future of the capitalist world and how we want to integrate those who have not profited from the last wave.