"Globalization demands a new regulatory paradigm-smarter regulation, regulation that reflects our interdependence and the way the global economy actually works," Mandelson said.

Many business leaders at the session on "Global Growth at Risk" shared that understanding. Roach said the crisis had taught the world, especially the United States, a "painful lesson on supervision," urging governments to rethink the role of central banks in the regulatory process.

"We've had a failure of risk management because we set the price of risk too low," he said. "People in my industry are programmed to take risks, and we had a huge blunder in monetary policy."

For Rhodes, "one of the things that must come out of this crisis that did not come out of previous crises is some form of international accounting standards. We really need a set of internationally accepted regulatory norms. We are too tied together in a globalized world."

Liu, China's top banking regulator, said, "The current crisis is global by nature, but regulation and supervision are still national. No national financial system is an island to itself, so we must increase international cooperation."

Referring to the bailout plan, Liu said, "Fast food is always convenient, but does not always agree with your stomach." He suggested that other countries learn from the close macroeconomic management and supervision that China has exercised in recent years. When U.S. regulators allowed zero down payments on home purchases and permitted so-called reverse mortgages, "we saw this as ridiculous," he said.

Caio Koch-Weser, Vice Chairman of Deutsche Bank Group, suggested at the session that China's voice and participation in cooperative bodies that monitor financial stability and manage the international financial architecture should be enhanced.

Chinese monetary authorities are communicating and sharing information with regulators around the world as they monitor the crisis, Liu responded.

"During this turmoil, we will be careful and watchful," Liu said. "In the end, blame for the meltdown should rest with the leaders in the financial sector. Companies need to refocus efforts on risk management, better governance and responsible leadership."

Hopes on China

Like Caio Koch-Weser, many others at the forum wondered if China could help cushion the impact of the global financial crisis on more developed countries and help boost worldwide growth by playing a larger international role, continuing to open up its economy to the world and boosting domestic consumption demand.

During the brief question-and-answer session, Premier Wen said China faced the risk of a slowdown in its economy because of a decline in external demand for its goods and that the country's domestic demand could hardly be increased in a significant manner in a short period. But "a big domestic market" and "the expansion of domestic demand, especially consumption demand" backed by a total of 16 trillion yuan ($2.3 trillion) in household savings would allow China "a lot of room to cushion the impact," he said.

Wen also said China's biggest contribution to the global economy would be to maintain a strong, steady and fast economic growth and not experience sharp fluctuations by adopting "flexible and prudent macroeconomic policies based on the actual situation in China."

Tianjin and the Binhai New Area

Tianjin, 120 km southeast of Beijing, is the largest port city in north China and the economic hub of the Bohai Bay Rim. The port is also one of the municipalities under the direct administration of the Central Government of China. Located in a warm temperate zone, Tianjin has a subtropical monsoon climate. It had 11.15 million permanent residents at the end of 2007. The city's GDP amounted to 510.8 billion yuan ($75 billion) last year.

The 2008 Summer Davos was held on September 26-28 in the Binhai New Area, the most vibrant east coastal area of Tianjin. Binhai New Area consists of Tianjin Port, Tianjin Economic-Technological Development Area, Tianjin Port Free Trade Zone, Tanggu District, Hangu District, Dagang District, and part of Dongli and Jinnan Districts. It boasts a planning area of 2,270 square km, a coastline of 153 km and a permanent population of 1.4 million. The area aims at developing into an open, modern economic area based on the metallurgy and chemical industries, and focuses on commercial trade, finance and tourism and develop an export-oriented economy.

Source: Tianjin Municipal Government