Populist tide threatens Davos values
WEF meeting comes at crucial time in affairs of SA and the world
THE meeting of the World Economic Forum (WEF) in Davos this week will be closely watched as anxiety about the global economy, politics and society looms large.
There are many unanswered questions. A new normal is being unleashed at global, regional and local levels with potentially far-reaching consequences for business and government alike.
This is partly a result of the two defining moments of the past year: Britain’s decision in June to leave the EU and the election in November of Donald Trump.
Trump was the first to congratulate the Brexiters on their victory, and Nigel Farage, the former leader of the right-wing UK Independence Party and a long-standing champion of Brexit, was the first British politician to meet and congratulate Trump on his victory.
Both events exposed the cracks in the globalisation project. The growing trust deficit that ordinary people across the world have towards the mainstream business and political establishment was also exposed.
In the case of Brexit, most business leaders rallied around the “Remain” campaign. They urged their employees to vote “Remain” and made public declarations of support and commitment to the “Remain Project”. The referendum on Britain’s place in the EU united the mainstream business and political elite in ways that have not been seen in four decades.
The same happened with the US presidential campaign, during which mainstream business and political leaders coalesced in opposition to Trump’s candidacy.
Public opinion was portrayed by the media and pollsters as largely supportive of Hillary Clinton. However, when the moment of truth came, the result went in favour of Trump — a clear vote of no confidence in establishment leadership and a vote for something different.
The success of Trump and Brexit reflects outright rejection of globalisation and those who lead it. Both events are a culmination of the crisis of leadership at global, regional and national levels which countless surveys have warned about over the past 10 years.
Globalisation has created massive wealth and lifted many out of poverty, but it has also resulted in increasing inequality and the marginalisation of many in both the developed and the developing worlds.
Those who feel marginalised by globalisation are turning to populist leaders such as Trump, Farage and others in countries like Austria, Sweden, France, Germany and Italy.
We are seeing the rise of the antiestablishment.
Business leaders are having to respond to these “black swan” events to protect and maximise shareholder value. Since Trump’s election, we have seen countless CEOs lining up to make pledges to help him realise his vision of making America “great again”.
Trump has also not hesitated to name and shame those companies or industries he believes are not aligned to his strategic objectives and policy priorities to protect and increase US jobs.
Globalisation is under siege, on the defensive. Its hegemony is being eroded by winds of change in global politics and business. Now is the time for the WEF to craft and advance a new agenda and global programme of action for inclusive globalisation.
This is not the time for new, nicesounding buzz words that have neither meaning nor substantive impact on the lives of ordinary people. This is the time for “responsive and responsible” visible and felt leadership.
The WEF, whose flagship meeting in Davos is a major highlight on the annual international calendar, is both the epitome of globalisation and one of its best champions.
The theme of this year’s Davos meeting, “Responsive and Responsible Leadership”, could not have been more appropriate as it reflects the real challenge of our time. The mosaic of challenges at a global, regional and local level requires new leadership models and a new brand of leadership that is both responsive and responsible.
This means engaged and connected leadership that is practically and actively serving and delivering the needs of ordinary people and society at large.
As Klaus Schwab, the founder and president of the WEF, commented in Davos on Tuesday: “There has to be a recognition that we are in unmapped territory which places the status quo, and by extension leaders themselves, into question.”
The real risk of a leadership vacuum is that it opens up spaces for opportunistic and dangerous populist leaders to come in and grab power and use it in ways that may cause long-term damage.
South Africa has a golden opportunity to project a compelling and alternative vision of the future underpinned by stability, inclusive growth and tolerance of diversity.
For Team South Africa to have a successful Davos 2017, it needs to unite and rally behind a common message and suspend any divisions related to the issue of how Finance Minister Pravin Gordhan was treated by the Hawks and the National Prosecuting Authority.
The stakes are high. Davos must be leveraged to reinforce investor confidence and attract new investors to grow our economy on a sustained and inclusive basis and create new jobs for our people.
This is everyone’s responsibility as we all stand to benefit from a growing and prospering South Africa. We need visionary business and political leaders capable of putting the national interest above all else.
Dlamini is chairman of Massmart and Aspen Pharmacare Holdings