Political and economic problems loom heavily over the global elite as they gather at Davos for the World Economic Forum (WEF). But is there any political will to fix them?
Globalisation on the rocks?
The WEF sees its role as “improving the state of the world”. But the political analyst and author Anand Giridharadas speaks for many critics when he calls Davos “a family reunion for the people who broke the world”.
After decades championing globalisation, the WEF now fears that rising inequality, protectionism and nationalist politics could send the world economy “sleepwalking” into another crisis.
As the WEF’s founder, Klaus Schwab, puts it: “Globalisation produces winners and losers and there are many more winners in the last 24, 25, 30 years – but now we have to look after the losers, after those who have been left behind.”
Schwab will be pushing politicians and business chiefs towards a new “inclusive” globalisation to fix the gap between the “precariat” many and the privileged few. But will this address the concerns of the many millions who feel the current system is rigged against them, and who will never make the trek to Davos?
Realistically, the WEF will be wrestling with the same problems in 2020 … and 2021 … and beyond.
Climate change crisis
After years of warnings, most business leaders, politicians and economists seem to have got the message. Climate change and extreme weather events have rocketed to the top of the list of dangers facing the world economy, according to the WEF’s annual survey of global risks.
Unfortunately, worsening international relations and rising nationalism means it’s even harder to get global agreement to address the problem, even though California’s wildfires and Europe’s recent floods have shown the human and economic cost of inaction.
Fortunately, the WEF can turn to Sir David Attenborough to drive the message home. The broadcaster and naturalist (at 92, the oldest delegate risking Davos’s treacherously icy pavements) will address delegates – and warn them: “Never has an understanding of the natural world been so important to ensure a safe future for our planet.”
Mental health
The WEF has made mental health a key theme at Davos this year. The forum will address fears that depression, anxiety, and other mental health problems are rising, and being neither measured correctly nor properly addressed.
Prince William will be challenging business leaders to improve emotional and mental wellbeing in their own workplaces. He is appearing on a “mental health matters” panel alongside the New Zealand PM, Jacinda Ardern.
Kensington Palace says the Duke of Cambridge will “use the opportunity to highlight his belief that the world’s major employers have a vital role to play in promoting mentally healthy societies and workplaces”.
Thrilled the Duke of Cambridge is taking part in the first ever plenary panel on global mental health @Davos later this month. Thank you @wef for making mental health a priority in 2019. Looking forward to being there for @UnitedGMH asking leaders to make sure 2019 is #timetoact https://t.co/WtSDoF2kah
— Elisha London (@elisha_london) January 4, 2019
The China slowdown
Hopes that Davos might deliver a breakthrough in the US-China trade war were dashed when Donald Trump benched the entire White House delegation last Friday.
In their absence, Wang Qishan, the vice-president of China, will give a special address. Behind the scenes, Wang will be pressed about how much damage the US trade war is causing, and whether China’s economy is slowing as quickly as some economists fear.
It’s just a shame that the Treasury secretary, Steven Mnuchin, the secretary of state, Mike Pompeo, the secretary of commerce, Wilbur Ross, and the US trade representative, Robert Lighthizer will not be there too.
The rise of populism
The new wave of populist leaders will be rubbing padded snow jackets with more mainstream politicians this year.
Jair Bolsonaro, Brazil’s new rightwing president, will fill Trump’s snowboots by giving a special address on Tuesday, letting him set the agenda on the first day of the forum. Bolsonaro says he will be presenting “a different Brazil, free of ideological ties and widespread corruption”. His tax cuts and privatisations are popular with investors, so Davos will probably give the retired military officer a rousing reception.
Human rights groups, though, would like to challenge Bolsonaro on his autocratic policies and recent loosening of gun laws.
Mostrarei nosso desejo de fazer comércio com o mundo todo, prezando pela liberdade econômica, acordos bilaterais e saúde fiscal. Com esses pilares, o Brasil caminhará na direção do pleno emprego e da prosperidade. Espero trazer boas experiências e avanços ao nosso país!
— Jair M. Bolsonaro (@jairbolsonaro) January 14, 2019
George Soros, scourge of populists, will also be in Davos, and probably taking a few potshots at the absent Trump. The French president Emmanuel Macon won’t catch them in person, though – he’s remaining in Paris to hold a national debate in response to the gilets jaunes (yellow vests) crisis.
Brexit
Theresa May is another Davos no-show this year, choosing to stay with the Brexit crisis in Westminster.
The chancellor, Philip Hammond, is expected to attend and will get his ear bent by increasingly anxious UK business leaders worried about a no-deal Brexit.
The WEF is planning to hold a session on Brexit; wisely, it has held it back until the end of the week. As of Friday, no speakers had been named either. The PM might not mind missing out, given her distaste for the “citizens of the world” who flock to Davos each year.
she doesn't want to hang out with the *citizens of snow wear* https://t.co/TVRFXO0JXF
— Jim Pickard (@PickardJE) January 17, 2019
