The political, business and academic elites at the World Economic Forum expressed renewed optimism at the global economy, with more liquidity, more unity in Europe and the fiscal cliff scaled by U.S. politicians. But other risks – especially that of not doing enough to combat persistent corruption – are emerging as new threats to a fragile global economy beset by challenges.

The political, business and academic elites at the World Economic Forum expressed renewed optimism at the global economy, with more liquidity, more unity in Europe and the fiscal cliff scaled by U.S. politicians. But other risks -- especially that of not doing enough to combat persistent corruption -- are emerging as new threats to a fragile global economy beset by challenges. "In my view, the mood actually bordered onto complacency," said Axel Weber, chairman of UBS AG, Switzerland's biggest bank, which he acknowledged has a poor image due to a series of big corruption scandals.

India Adda has been buzzing with interesting conversations over the past three days with government officials and prominent business leaders engaging in constructive dialogues. What is delightful is that the conversations are unceasing. As WEF 2013 gets into the discussion mode, delegates having been to the Congress Centre can be seen sitting in groups at the India Adda comparing notes and views on the emerging global trends, India in the context of the world economic order, the issues colouring Brand India and the upcoming competition.

“Our strategy is to focus on domestic and regional growth,” she said. But aside from the hard economic power, she added, the creative industries and the soft power of culture are also on the rise. “Indonesia has the potential to grow its creative industries and it also adds to national pride,” she said. “The challenge is how to make it grow.”

The time to evaluate the impact of this issue on the vital strategic relationship between the two countries will come later. But at least in one significant respect, Pakistan-US ties are already badly damaged. And this relates to the nature and direction of public discourse in Pakistan about the United States.

As India asserts itself within the global power dynamic, India is having a vibrant discussion about public diplomacy and how to engage in channels of public diplomacy as a means to project its emergence.