Davos: The challenge of economic inequality

The World Economic Forum, commonly referred to as the Davos Annual Meeting kicked off on January 21 in Switzerland. Inequality, climate change and sustainable development were some of the topics discussed at the meeting. 

Ahead of the annual meeting, the anti-poverty charity Oxfam published a research explaining that by next year one percent of the world’s population will own over half of the world’s wealth, 54 percent of it. 

That means, the rich get richer while the poor get poorer. Money is sitting in offshore bank accounts, earning interest for its owners, when it could be used to invest in job creation and public services. 

But even for the richest one percent there will be less wealth to go around. The International Monetary Fund has made the steepest cut to its global growth outlook in three years.  For a global perspective on that sort of outlook, Ali Velshi from Al Jazeera America spoke to the president of the World Bank, Jim Yong Kim. 

“The countries that are going to do well are the ones that have the courage and the vision to tackle structural reforms,” he said. 

China’s Li Keqiang was also at Davos, the first Chinese premier to attend since 2009. He was there to shore up international confidence in the Chinese economy, and did so with a speech full of metaphors. 

“If I could compare the Chinese economy to a running train, what I would want to emphasise is that this train will not lose speed or momentum. On the contrary, it will be powered by a stronger dynamo, and will run with greater steadiness, and bring with it new growth and new opportunities,” Li said. 

But earlier in the week, a report on China’s economy showed that growth in 2014 had slowed for the first time in almost 25 years. Adrian Brown reports from Beijing. 

So what is next for the global economy? What are the biggest risks facing the world’s economy? And can money be better distributed?

Europe: Stimulus measures 

The president of the European Central Bank Mario Draghi did not attend Davos. He, or rather the European Central Bank (ECB), summoned up over 1tn euros for a bond-buying programme scheduled to be around for 18 months, starting this March to September 2016. 

But will it make a difference? Many Europeans believe stimulus measures will actually do little to improve their situation. Claudio Lavanga reports from Rome. 

Oil prices: Not all bad news

The plunging oil prices are good news for most countries in Southeast Asia as the majority rely on imported oil to run their cars, light their homes, and keep their factories running.

Thailand has some oil, but the country buys much more than it produces. So lower prices mean big savings for the Thai government – and it will trickle down to the people. Analysts say with less dollars going abroad to pay for oil imports, more will be staying in Thailand.

However, it is a different story for its neighbour to the south. Lower oil prices will prompt Malaysians to spend less, which is bad news for the economy. To the point that the Malaysian government said it is re-looking at its budget for this year. 

Al Jazeera’s Scott Heidler reports from Bangkok.

US and Cuba relations 

After more than 50 years of economic isolation, things are changing in Cuba. This past week, the US held its first high-level diplomatic talks with Cuba since 1961. 

It was the first meeting in Havana since the momentous decision by US President Barack Obama and Cuban leader Raul Castro in December 2014 to seek normal ties after 50 years of hostility. 

But has change really come? Gabriel Elizondo talks to people in Havana.