'There's a suspicion Bush is back to unilateralism, and isn't interested in listening to the rest of the world'. The US has come under fire over its protectionist policies, writes Conor O'Clery, International Business Editor, in New York.
Moved to the United States from Davos, Switzerland, as a gesture of solidarity with a wounded New York, the World Economic Forum this weekend nonetheless became a catalyst for the end of international post-September 11th reticence - the reluctance to criticise the United States in its war on terrorism.
Under the theme "Leadership in Fragile Times: A Vision for a Shared Future", some 2,700 world leaders from business, government, academia, religion, the media and civil society have debated since Friday the vulnerabilities of the modern word and the best ways to tackle new forms of terrorism.
But at some seminars in the Waldorf Astoria Hotel, it became almost open season on the US, ranging from criticism of protectionist policies that hurt developing countries and the low level of US foreign aid to concerns about unilateral military actions the US might take following President Bush's naming of Iran, Iraq and North Korea as an "axis of evil".
"For the Europeans, 'axis of evil' was a bridge too far," said Mr Joseph Nye, dean of Harvard's Kentucky School of Government, summing up a debate on "Building a Coalition for a Stable World".
"There's a strong suspicion here that Bush is back to unilateralism, that after Afghanistan, America isn't especially interested in listening to the rest of the world."
In the presence of US Secretary of State Colin Powell, Mr Javier Solana, secretary-general of the EU and former head of NATO, said the allies wanted more than just consultation. "For me the coalition is a collective ambition to share responsibility but to share also decision-making," he stated.
Former US Secretary of State Madeline Albright also expressed worry about the "axis of evil" reference. "The three countries are quite different from each other. Iran should be dealt with in a more subtle way," she said. Her successor, Colin Powell, was uncompromising: "We must not step back from the challenge represented by rogue regimes, evil regimes, as the President put it. And we must make sure we have the patience and perseverance to see this campaign through to the end," he said. South American speakers agreed with US Treasury Secretary Paul O'Neill that the Argentine economic crisis could be laid at the door of that country's politicians but noted that the US had not made any effort to find a solution.
Mr O'Neill, who was influential in scuppering a World Bank plan to get advanced countries to increase aid to the developing world, took issue with the practice of the International Monetary Fund and the World Bank of bailing out debtor nations, saying productivity improvement was more important.
"Over the last 15 years the temptation has been to rush in with a fire station crew and dump money on the rest of the world. I don't think that's okay," he said.
Much of the fire directed against the United States came about as the forum opened its doors more to civil society and incorporated many of the themes which have been enunciated at street protests outside conferences held in Davos. Echoes of the street were heard from unexpected quarters. At another forum on the economy, IMF managing director Horst Kohler bluntly criticised the United States for using subsidies and tariffs to protect its farming and textile sectors from cheap foreign competition. This prevented poor countries from fully participating in the global economy, he said, adding that the EU must also end its farm subsidies.
"We need to focus on giving developing countries better access, and this includes the phasing out of these subsidies, which are absolutely distorting and devastating sectors in the poor world," said Mr Kohler, to loud applause.
"If we are really serious about globalisation to work for all, the advanced countries have to recognise they can't do business as usual." The US government pays subsidies for crops such as soy beans, enabling them to compete with cheaper produce from Brazil, and the EU has also resisted big cuts in farm subsidies. Mr Yashwant Sinha, India's Finance Minister, said US and EU restrictions on steel imports hurt India's steel industry.
There was a perception that globalisation created private wealth in a process biased against the poor, and resentment against the US came from the fact that as the only superpower, it so influenced the world, while its own population had no interest in the world, said Mr Zaki Laidi, senior research fellow at the CERI research institute in Paris.
There was some disagreement between the US and the rest of the world on how quickly there would be a global economic recovery. Much of the world has been in recession since early last year and does not share the optimism of the US that it will end soon. US analysts predict a return to growth in the US in the second quarter. However, a poll of international CEOs showed more pessimism.
"A lot of Europeans view American optimism as part of the character of the country and not necessarily reasoned analysis," said Mr Peter Sutherland, former EU commissioner and chairman of Goldman Sachs International.
Mr Klaus Zimmermann, president of the German Institute for Economic Research in Berlin, said a recovery would not happen this year. "A lot has been invested in high-tech equipment for the new economy and that has to be used up before investment picks up and the American economy with it," he said.