JANUARY 31, 2000 (Jeremy Lee)
DAVOS AGAIN: With last year's debacle behind them, and the WTO Seattle breakdown fresh in their memories, the world's elite are currently meeting at this year's Davos conference in Switzerland. This is how The Australian Financial Review (27/1/2000) described the gathering:
The barricades are up. The riot police are being bused in. The internet chat rooms are buzzing. Yes, it's another global summit; this time in the Swiss Alpine village of Davos, near the Austrian border, where the world's corporate, political and intellectual elite are gathering for the next six days to discuss how to "meet the challenge of creating responsible globality", while exchanging business cards and doing a little skiing
"The invitation-only conference for which 1,000 of the world's biggest companies pay up to $US22,000 ($34,375) in fees to attend - forum corporate sponsors or "partners" can fork out between $US70,000 and $US250,000 - makes no recommendations to governments and releases no communiques ….
Last year, Davos organisers banned demonstrations during the forum, but protesters, emboldened by the havoc they caused at Seattle, are unlikely to be so easily put off this time. As a result, Swiss police are being trucked in from around the country ….."
Who will be there? Among those mentioned are President Clinton, the world's richest man Bill Gates, as well as Rupert Murdoch's son Lachlan, and Kerry Packer's heir James. A few Australian multinational heads, including BHP's Paul Anderson, Southcorp's Graham Kraehe, Hugh Morgan from Western Mining, Richard Pratt of Pratt Industries, head of Telstra Ziggy Switkowski, and Fairfax CEO Fred Hilmer. Hilmer, who designed Australia's Competition Policy, will no doubt be comparing notes with Mario Monti, the European Competition Commissioner. Both Mike Moore, head of the World Trade Organisation and Nicholas Oppenheimer, from the global diamond monopoly's De Beers will be there.
From high on the mountain at Davos some modern-day economic guru will deliver the tablets of stone for Global 2000! And all the world's people will say "Amen"!
AUSTRALIA BREAKS ANOTHER RECORD: Mergers and acquisitions in Australia during 1999 totalled $60 billion, according to Thomson Financial Securities Data. Four of the top ten deals involved energy privatisation in Victoria and South Australia. The Australian (27/1/2000) reported:
" ….On the world stage Australia was ranked first for privatisation in the utility sector and a strong second for total privatisation," Thomson Financial says ….. The firm notes that Australia experienced one of the highest levels of foreign takeovers, which accounted for half of the total value. Of this $30 billion, $12 billion came from the US in 83 deals, $8 billion from the UK in 74 deals and $3.5 billion from Hong Kong in four deals …."
Over $1,500 for every living Australian in more foreign ownership during 1999! Our government is really excelling itself! We note that Prime Minister Howard has again raised the policy of selling the remaining 51 per cent of Telstra that Australians still own. That should make him and Treasurer Costello even more popular!
THE GREAT DIVIDE IN NEW ZEALAND: A correspondent from New Zealand sent us a full-page article from The Ashburton Guardian (4/1/2000). New Zealand has had a GST for a number of years. It has not solved their problems. Extracts from the article, which drew on a report New Zealand Now from "Statistics New Zealand", said:
" ….Those on highest incomes did best during reforms by successive Governments since 1983. The average real disposable income of the top 10 per cent rose from $62,000 in 1982 t0 $82,000 in 1996, an increase of nearly a third.
The poor just got poorer, with average income of the bottom 20 per cent falling four per cent during the same period, with the bottom 10 per cent averaging an income of little more than $11,000 a year.
Middle income groups - those with 1982 salaries between %25,000 and $30,000 - saw their income drop by 9 per cent and 7 per cent.
As the majority of New Zealanders earned below $30,000, most were losers in the great experiment …."
Other facts included: