Harsh realities of wars and economic uncertainty prevalent on day one
▶ Urgent crises make the World Economic Forum’s annual event in Switzerland one to watch
Under the theme “Rebuilding Trust”, the World Economic Forum’s 54th annual meeting began in Davos yesterday.
As can be expected from the largest pro-globalisation event, there will be great focus on the world economy and ways to improve global collaboration to ensure greater economic returns.
With 2,800 official delegates, and a couple of thousand more for side events, the programme is packed with discussions on what the future holds. Yet the meeting is faced with the harsh realities of the present, especially with the Gaza war marking 100 days on the eve of the meeting, the Ukraine war heading for its third year and economists sounding concern about the state of the world economy.
A series of news developments framed day one of the annual meeting.
The first was tied to the outcomes of the meeting of national security advisers from 83 countries to discuss peace proposals for Ukraine.
While there was African and Latin American participation, a lack of Russian and Chinese presence was notable.
Today, Ukrainian President Volodymyr Zelenskyy will address delegates with his “10-point peace plan”, which Switzerland hopes to play a role in moving forward.
No such efforts will be made publicly when it comes to the Gaza war, however a series of closed-door events seek to find tangible progress.
Noteworthy is the absence of any visible Palestinian participation, with the exception of the head of the Bank of Palestine and a couple of private sector leaders.
Meanwhile, the President of Israel, Isaac Herzog, is expected to take centre stage.
Turkey has withdrawn its participation, but Iran is present with its Foreign Minister Hossein Amirabdollahian expected to address participants tomorrow. Strong Arab voices including the Prime Ministers of Qatar, Sheikh Mohammed bin Abdulrahman Al Thani, and Jordan, Bisher Khasawneh, are expected to make a case for a ceasefire and longer-lasting peace in the region during two separate sessions today. Iraqi Prime Minister Mohammed Shia Al Sudani and the Prime Minister of the Kurdistan region Masrour Barzani will have the task of convincing global chief executives that Iraq is open for business despite the continued attacks on bases housing US soldiers and general instability in the country.
The UAE’s participation is the largest yet – and its pavilion with the slogan “impossible is possible” is evident across sectors, with a focus on innovation and tech solutions.
Another announcement came in the form of a WEF report, the Chief Economists Outlook, in which 56 per cent of chief economists surveyed said they expected the global economy to weaken this year, with seven out of 10 saying geo-economic fragmentation will pick up pace.
With a significant Chinese presence at Davos this year, many participants will be keen to hear if China’s growth will pick up and how geo-economic tensions with the US will play out in an election year.
With concerns increasing about the economy, funding gaps are another major concern, particularly for humanitarian organisation such as the World Food Programme and UN agencies whose heads are also participating in the annual meeting.
Yesterday morning, the Bill and Melinda Gates Foundation announced its largest annual budget, with $8.6 billion to focus on a number of initiatives.
Health is one of the main pillars of discussion in Davos, as Bill Gates and a number of advocates try to keep it on the agenda despite Covid-19 fading in most people’s memories.
Long gone are the days of mandatory PCR tests and masks to attend the forum and yet public health measures continue to need funding and innovation.
The two pillars of innovation and financial support at a time of uncertainty and economic turbulence will be central to trying to find solutions that can show the true value of the World Economic Forum.
If there is a defining motif for our troubled times, it is the way in which we can watch a collection of global crises play out as they happen. Thanks to modern communication modes and technology, it possible to follow renewed war in the Middle East, rising political polarisation and the malign effects of climate change as they unfold. This creates an understandable desire to see something be done about it – and quickly.
But, as Chinese general Sun Tzu observed in the 6th century BC, tactics without strategy is the noise before defeat. Policies that lack precision or direction are almost as bad as inaction. That is why critical conversations that bring together influential and informed figures to set an agenda for action remain essential. The World Economic Forum’s annual meeting that in Davos, Switzerland, is one such global brainstorming session.
Over the next four days, nearly 1,600 business leaders, including 60 heads of state and government, 800 chief executives, media leaders and 200 social entrepreneurs and youth leaders will focus on burning issues and make the kind of connections that might not be possible in more politicised forums. A possible meeting between Ukrainian President Volodymyr Zelenskyy and a delegation from China, for example, could be an important one for breaking the deadlock between Ukraine and Russia.
The range of topics at Davos this year – the global economy, the rise of AI, the threat posed by disinformation, and the green agenda – speaks to the meeting’s ambition. But Davos is part of a wider diplomatic whole that includes other gatherings, such as annual summits held by the Brics nations, the G20, or other imperfect-yet-indispensable bodies, such as the UN.
Nonetheless, Davos often sets the tone for the rest of the year – one that will witness dozens of national elections. The event also has the potential to maintain momentum on previous international wins. A successful Cop28 climate change summit in the UAE became a historic milestone in the transition to a green economy; this week’s important convergence of political and business figures at Davos can develop that agenda.
Much of what will be discussed at Davos has particular relevance for the Middle East. Even though there is no Palestinian political presence at the event, many regional leaders are present and actively engaged in this week’s agenda. Many in the region will be watching closely to see what innovative thinking could emerge on political instability and conflict, economic diversification and sustainability, climate change and water scarcity, health care, and other social challenges. Another key area of focus will be AI. The excitement generated by this technology is palpable, but the risks are many.
In a world that has come to be defined by crisis and anxiety, impatience to see something being done is rife.
But it is exactly the urgency and interconnectedness of all such issues that make the need for dialogue more pressing than ever. Davos remains an important part of the global conversation.