What’s Ahead at Davos 2019
Amid rising tensions around the world, for its annual meeting, the World Economic Forum is taking an approach akin to teaching kids to play nice on the playground.
The annual meeting, which will see many of the who’s who of politics and business (and a sprinkling of celebrities and royalty) from around the world converge in Davos, Switzerland from January 22–25, will focus on shaping a new framework for global cooperation.
Suffice it to say, leaders around the world could use a bit of a reminder about what cooperation means.
As the overview of the meeting states: “Shaping the global, regional and industry agendas at the beginning of 2019 will take place in a context of unprecedented uncertainty, fragility and controversy.”
Even before the event gets underway, that sentiment is underscored by the announcements that US President Donald Trump (and the rest of the US delegation), French President Emmanuel Macron, and UK Prime Minister Theresa May won’t be attending the annual meeting due to contentious domestic issues. Trump is dealing with the ongoing government shutdown, Macron is contending with the “yellow vest” protests, and May is sorting through the Brexit turmoil.
Given the current political and economic landscape, there’s certainly no shortage of discussion points for this year’s meeting. Here’s a look at some of the issues.
Globalization
The theme for this year’s forum is “Globalization 4.0: Shaping a New Architecture in the Age of the Fourth Industrial Revolution.”
So what exactly does that mean?
Essentially, the meeting will reflect on building more inclusive societies and introducing better protections for vulnerable communities, while focusing on the strategic ramifications of globalization and its future impact on global cooperation and the Fourth Industrial Revolution (more on the latest industrial revolution in just a bit).
But while globalization has created global growth and development, it has also given rise to excessive inequality. That’s why, according to the WEF, for the next wave of globalization to happen, “leaders need to learn from past mistakes.”
“We are just at the beginning of Globalization 4.0, and are significantly underprepared for the magnitude of change we are facing. We are still approaching issues of globalization with an outdated mindset,” Klaus Schwab, WEF founder and executive chairman, said in a press release.
“Tinkering with our existing processes and institutions will not be enough. We need to redesign them so that we can capitalize on the abundance of new opportunities that await us, while also avoiding the kinds of disruptions that we are witnessing today.”
Wondering what the other three waves of globalization were if we’re now talking about Globalization 4.0? Check out this WEF article that explains things much better than I ever could.
Trade Disputes
You can’t talk about global cooperation without mentioning trade. So it’s no surprise that trade relations, including the dispute between the US and China, will be a key area of discussion at WEF 2019.
And considering the current climate of international relations, that discussion could be interesting.
In its Global Risks Report 2019, the WEF states that international tensions are reaching crisis levels in the wake of a new phase of state-centred politics.
According to the report, a “darkening” economic outlook, caused in part by geopolitical tensions between the US and China, is “set to further reduce the potential for international cooperation in 2019.”
What’s more, the report, based on a survey of about 1,000 experts and decision-makers from around the world, found that 88% of respondents expect “further erosion” of international trading rules and agreements. Plus, 85% of those surveyed said they expect 2019 to involve more “political confrontations between major powers.”
For many businesses, particularly those involved with importing and exporting of goods, that outlook will undoubtedly be a source of concern given the already uncertain economic landscape.
Technology
Technology and the Fourth Industrial Revolution will also be a focal point at WEF 2019.
The concept of the Fourth Industrial Revolution is that new technologies are blending the lines between the physical, digital, and biological worlds and changing the way we live, work, and interact.
By leveraging these technologies, such as artificial intelligence, businesses and governments can achieve sustainable growth, studies have shown.
Unquestionably, technology is becoming an increasingly important driver of globalization. While these technologies offer a multitude of economic and societal opportunities, some of them also bring a new wave of vulnerability in the form of cyber attacks.
With half of all cyber attacks resulting in financial losses of more $500,000, the issue is a growing concern that requires, you guessed it, global collaboration. It’s also important to note that while some technologies may be the cause of vulnerabilities, other innovations, such as blockchain, are helping to secure the digital world while also fostering global cooperation and trust.
As the WEF states: “Addressing the biggest global challenges requires the collaborative efforts of business, government and civil society.”
Here’s hoping that the world’s leaders will be listening.
