I have never took a chance To attend the Davos meeting and I will pass again this year. However, this does not mean that I do not follow its development and results. I am certainly interested in what might come out of a meeting that brings together so many leaders of governments, civil society and business.
In a perfect world, this year’s meeting would prove to be a catalyst in two important ways. First, it will create greater awareness of ongoing watershed developments in the global economy and draw attention to how differently they are viewed around the world. And second, it will point to ways in which an increasingly “zero-sum” approach of international coordination can be reshaped to contribute to collective resilience and inclusive prosperity.
The list of ongoing watershed developments in the global economy is long, extending far beyond the horrific war in Ukraine and its associated human tragedies. Here’s an example of what’s in such a list:
- Due to the convergence of food, energy, credit and development crises, a growing number of poor countries face a growing threat of famine – and this is only “one part of it”.little fire everywhere“The phenomenon reducing lives and livelihoods around the world.
- Inflation at 40-year highs in rich countries is undermining standards of living and growth engines, hitting the poor especially hard, fueling political anger, undermining institutional credibility, and reducing the effectiveness of economic and financial policy.
- The inability to tackle important secular challenges, including climate change, is seeing short-term distractions that are already meaningful long-term challenges.
- Efforts by the private and public sector to strike a better balance between highly interconnected supply chains and national/corporate resilience are complicated by a global economy that lacks sufficient momentum to do this systematically.
- Western weaponization of international finance, while effective in bringing the eleventh largest economy in the world to its knees, has been pursued without a global framework of standards, guidelines and safeguards.
I suspect that, while most Davos participants would agree on this list (and, indeed, add a few more items), there will be considerable disagreement on the causes and long-term consequences. Such disagreement is problematic in two ways. First, it undermines the shared responsibility required to address challenges with significant international dimensions; And second, it undermines even more confidence in the current international order. Unless the disagreement can be resolved, the harmful effects will deepen and spread.
On paper the Davos meeting would be perfectly suited to resolve these conflicts. However, history doesn’t provide much encouragement or optimism.
From time to time, Davos has fallen victim to a lack of focus and an actionable integrated vision. Individual and collective interests have been disjointed. Distractions abound. As a result, the output has, at best, been backward-leaning.
Given the many crossroads facing the global economy, this would be an especially good time for Davos to fulfill its considerable potential – to look ahead, to look back. Identifying solutions rather than just problems. Otherwise, the forum will develop even more into a network and social club, and is widely believed to be, and more different from the realities of many and the challenges of most.- bloomberg
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