Explained: What is the World Economic Forum meet at Davos and why is it important?

At any given point, not too many people know about Davos, the ski resort high in the Swiss Alps. However, come January and it becomes the focus of the world as global elites converge on the small town for the annual meeting of the World Economic Forum (WEF).

Back after a two-year COVID-19 break, the who’s who of the world have gathered for the 2023 edition of the global meet to discuss the future direction of life on our planet and the pressing issues of the day.

But what is the WEF? Why does it take place in Davos and why does it matter? Here’s the lowdown on all things Davos and WEF.

What is the World Economic Forum?

Founded in 1971 by Klaus Schwab, a Swiss-German economist and professor, the World Economic Forum is a not-for-profit foundation meant to foster global cooperation on political, social, and economic issues.

As it explains on its website, the forum believes that “progress happens by bringing together people from all walks of life who have the drive and the influence to make positive change”.

Initially called the European Management Forum, it changed its name to the World Economic Forum in 1987 and sought to broaden its vision to include providing a platform for resolving international conflicts.

As the BBC explains, the forum is officially a conference, with endless speeches and sessions on everything from the outlook for the global economy to managing stress.

Most often, the delegates at the forum network relentlessly, with bilateral meetings between heads of state and corporate chieftains taking up much of their schedules.

Why Davos?

Since its inception, the World Economic Forum has been held at the Swiss town of Davos, a place known for skiing. However, the choice of Davos isn’t arbitrary or random.

The organisation mentions in its history that the choice was more than just about the scenery. Davos was the setting for Thomas Mann’s novel The Magic Mountain. The book is the story of a young man who goes to Davos to stay at a sanatorium for three weeks and ends up spending seven years, and TIME’s 1927 review of the work makes clear why it was an appropriate inspiration for such an event: “In the sanatorium, a high and chilly retreat, the perspective of life changes,” the reviewer opined. “With death for a background, massive and eccentric as the high Alps, the caperings of man seem puny by comparison. The idiotic decadence, the absurdly microscopic preoccupations of humanity are emphasised by their isolation.”

Today, as Davos will see a convergence of over 2,700 leaders from all walks of life, security has been heightened in the sleepy town. According to reports, over 5,000 personnel from the Swiss Army have been deployed to this small town, making it into a fortress to ensure safety of thousands of leaders from across the world for this one week.

Who is attending Davos this year?

This year’s conference with the theme of ‘Cooperation for Sustainable Growth and Shared Prosperity’, will see more than 2,700 leaders from 130 countries, including 52 heads of state and government.

German chancellor Olaf Scholz is the only G7 leader scheduled to attend the event. On Sunday, South African president Cyril Ramaphosa’s spokesperson announced that the leader would not be attending the event due to an ongoing energy crisis in the country.

Another 600 big names from the business world will also be in town, including Wall Street executives such as JP Morgan’s Jamie Dimon, David Solomon from Goldman Sachs and Morgan Stanley’s James Gorman.

International Monetary Fund Managing Director Kristalina Georgieva, European Central Bank chief Christine Lagarde, NATO General Secretary Jens Stoltenberg, President of the European Commission Ursula von der Leyen and Chinese Vice-Premier Liu He are also expected to attend the forum. In addition, World Health Organization (WHO) chief Tedros Adhanom Ghebreyesus is also expected to make an appearance there.

It is still unknown if noted climate activist Greta Thunberg will appear in the skiing town. Idris Elba and Sabrina Dhowre Elba, cellist Yo-Yo Ma, Renee Fleming, wil.i.am and social media star Nas Daly are all attending.

While Russia will not be making their presence felt at the WEF, Ukrainian first lady Olena Zelenska was on her way to Davos and will speak Tuesday, while her husband, President Volodymyr Zelenskyy, will give a remote address Wednesday and other officials from Ukraine are appearing on panels.

While Prime Minister Narendra Modi won’t be visiting Davos this year, India is sending a contingent with four Union ministers — Ashwini Vaishnav, Mansukh Mandaviya, Smriti Irani, and RK Singh, as well as Chief Ministers BS Bommai, and Yogi Adityanath.

Industrialists Mukesh Ambani, Gautam Adani, N Chandrasekaran, Kumar Mangalam Birla, Adar Poonawalla, Sajjan Jindal, Nadir Godrej, Rajan Mittal and Sunil Mittal, and Sanjiv Bajaj, among others as well as India’s G20 Sherpa Amitabh Kant, International Solar Alliance Director General Ajay Mathur, Finance Commission Chairman NK Singh, Department for Promotion of Industry and Internal Trade Secretary Anurag Jain, are also expected at the event.

What’s on the agenda?

The Russia-Ukraine war and its cascading effects across the world will be the hot topic at the World Economic Forum.

Since Russia invaded Ukraine in February last year, inflation has soared and food and energy prices have increased significantly. At times like these, IMF’s Georgieva urged countries to strengthen trade, help vulnerable countries deal with debt and ramp up climate action.

The climate will also be a major talking point; former US vice president Al Gore will talk about decarbonisation, efforts to build clean energy infrastructure and ensure an equitable transition, according to an Associated Press report.

Sessions on issues like adaptation to climate change and panels on deforestation, biodiversity and the future of environmental protection will give a greener hue to the gathering.

For India, the WEF meet will be a platform to showcase the country as a strong and resilient economy and also a problem solver on the global stage.

Before the meet, the WEF in its Global Risks Report also spoke of the polycrisis in 2023 — a topic that will garner much attention in Davos.

Why WEF is criticised?

The Davos meet isn’t without criticism though. There are many who argue that attendees are too out-of-touch or profit- or power-minded to address the needs of common people and the planet.

As New York Times economics correspondent Peter Goodman had highlighted in his book Davos Man about the contradiction of asking billionaires and elites who cause the world’s biggest problems to find ways to solve them.

Moreover, critics point out the hypocrisy of having the climate crisis on the meeting’s agenda while one in 10 participants in 2022 travelled by private jet to get there.

With inputs from agencies

Read all the Latest News, Trending News, Cricket News, Bollywood News,
India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.