Bankers and political leaders took their battle over post-crisis regulation to the World Economic Forum which started in Davos yesterday.

Thirty Presidents and Prime Ministers and 2,500 business and academic elite are at the 40th anniversary forum held in the glitzy Swiss ski resort, seeking ways to fend off new storm clouds hanging over the global economy.

While the International Monetary Fund has predicted world growth will be stronger than expected in 2010, other warnings have been made about strong measures needed to save millions of jobs.

But the main focus will be on reform of the finance industry, with top bankers making a return to Davos to fight what they fear will be over-regulation.

President Nicolas Sarkozy of France presented the case for tough reforms in his keynote opening speech.

French Finance Minister Christine Lagarde said she hoped "the Davos rendezvous will be fruitful for speaking about financial regulation. That means everyone has to be around the table."

The heads of Bank of America and Citi Group, Brian Moynihan and Vikram Pandit, are among global finance industry chiefs in Davos discussing the reforms, particularly measures proposed by US President Barack Obama to limit the size of big banks and make them pay back much of the money needed for their huge bailout last year.

The banking industry is arguing against what it considers stifling controls, while bank leaders are also on the defensive about bonuses.

Sixty per cent of chief executives are "extremely" or "somewhat" concerned by the threat of over-regulation, said a poll by PriceWaterHouseCoopers released in Davos.

Davos also started amid widespread fears of a slow recovery or even a double-dip recession.

The IMF on Tuesday projected global growth of 3.9 per cent in 2010, increasing its original estimate of 3.1 per cent, but said emerging economies, particularly in Asia, would lead the recovery.

Global production and trade bounced back in the second half of 2009 and "confidence rebounded strongly on both the financial and real fronts, as extraordinary policy support forestalled another Great Depression," the institution said.

However the UN's International Labour Organisation revealed that global unemployment had surged to leave a record 212 million people jobless - up 34 million in two years - and would remain high in 2010.

"We need the same policy decisiveness that saved banks now applied to save and create jobs and livelihoods of people... This can be done through strong convergence of public policies and private investment," said ILO director general Juan Somavia before the Davos meeting.

International shock at the extent of the Haiti quake disaster has also been reflected with several lastminute changes to the Davos programme so that rebuilding efforts can be discussed and new international appeals for help made.

Davos founder Klaus Schwab has insisted that Haiti be a priority topic at the event, despite the world's economic ills.