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Klaus Schwab: «we run the risk of falling into a crisis of major proportions.

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Klaus Schwab: «we run the risk of falling into a crisis of major proportions.»

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RT Actualidad / Economía

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The founder and Chairman of the World Economic Forum, Klaus Schwab, argues that the high level of current unemployment is a structural phenomenon and that the development of new technologies only aggravates this phenomenon.

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In an interview with the network CNN, in the framework of the world economic forum which takes place in Davos, Switzerland, Schwab said that politicians and business leaders should ensure growth of the world economy in the long term and take measures to combat unemployment, because otherwise «we run the risk of falling into a crisis of huge proportions».

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«From my point of view, it is essential that world, political leaders and representatives of large companies coming to Davos, will focus not only on results that show their companies in the next quarter or how to upcoming elections. «It takes a long-term approach and an assessment of the current situation, otherwise we are facing new crisis», added.

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According to the German Economist, current problems that crosses Europe are due to the gap in competitiveness between the countries of the North and the peripherals. «These problems began to emerge 20 years ago, when for example, Germany already showed its best growth dynamics, while the countries of the South are straggling», Schwab argued.

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Now added to this dilemma is technological development, which with its consecutive progress, according to the Economist, will destroy many jobs. Faced with this panorama Schwab suggests that the technological process must be compensated by the creation of new sources of employment. However, «this is not happening (…)» and in this scenario, a whole generation of people could fall into a very difficult situation, a crisis of enormous proportions,»concluded.

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