The Davos audience returns to familiar surroundings. But the lush green meadows that formed the backdrop to the very first “Spring Davos” last May were replaced by snow-covered slopes on which snow boots and fur coats celebrated a comeback.
While the weather may have changed from last year, the main topics of conversation remain the same. The war in Ukraine and its massive economic consequences are expected to once again dominate the agenda of the annual event at the Swiss alpine resort.
The annual meeting of the World Economic Forum, which is attended by world political and business leaders, celebrities and prominent social activists, comes at a time when the global economy is under extreme stress from high inflation, an energy crisis and others caused by the war-caused supply disruptions. and a resurgence of COVID-19 cases in China.
“Economic, environmental, social and geopolitical crises are converging and merging, creating an extremely diverse and uncertain future,” WEF founder Klaus Schwab told reporters. “The annual meeting in Davos is designed to try to ensure that leaders don’t get caught up in this crisis mindset.”
More than 50 heads of state and government are taking part in the five-day meeting, which is themed “Cooperation in a fragmented world”. Expected guests include Chancellor Olaf Scholz, EU Commission President Ursula von der Leyen and Spanish Prime Minister Pedro Sanchez.
Some recently elected leaders, including South Korean President Yoon Suk Yeol, Colombian President Gustavo Petro and Philippine President Ferdinand Marcos Jr., are also expected. The African contingent is led by President Cyril Ramaphosa of South Africa and President Samia Suluhu Hassan of Tanzania.
The US will be represented by President Jo Biden’s Climate Ambassador John Kerry and Trade Representative Katherine Tai.
As in 2022, the Russian House in Davos will remain closed after the WEF froze relations with RussiaImage: DW
There will be no participation from Russia as the country’s politicians and business leaders continue to be shunned from the meeting. The WEF froze its ties with Russian entities last year after Moscow invaded Ukraine in late February.
Ukraine will again send a high-level delegation. However, the organizers have declined to share further details due to security concerns.
recession risk
The 53rd edition of the Davos meeting comes amid one of the steepest economic slowdowns of this century, with International Monetary Fund chief Kristalina Georgieva warning that a third of the world economy could be hit by recession this year.
The conflict in Ukraine and Western sanctions against Russia have led to an unprecedented energy crisis. While inflation appears to have peaked in advanced economies like the US and the eurozone, it remains uncomfortably high, forcing central banks to remain on course with aggressive rate hikes. That means higher borrowing costs amid a slowing economy, and there is also a risk that a global debt crisis in developing countries, including Africa, will worsen.
The World Bank has warned that the current economic crisis could lead to a rise in poverty in sub-Saharan Africa, where around 60% of the world’s extreme poor already live.
A new kind of global recession: why this time is different
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An annual risk survey released by the WEF on Wednesday cited the global cost-of-living crisis caused by the COVID-19 pandemic and Russia’s invasion of Ukraine as the top immediate risk, saying energy and food supply crises are likely to persist over the next two years.
The Davos meeting “will take place against the most complex geopolitical and geoeconomic backdrop in decades,” said WEF President Borge Brende. “There’s really a lot at stake when it comes to the global economy, how to make sure we avoid a global recession, how to avoid low growth, high inflation and high debt.”
A record 56 finance ministers are coming to Davos this year, as are 19 central bank governors.
Climate change in the Alps? Global warming remains on the WEF agenda, but this picture was taken in 2022 when the meeting was postponed to MayImage: Arnd Wiegmann/Portal
Back to business
The Davos meeting returns to its traditional winter date for the first time since 2020, when the COVID-19 pandemic first hit the world. The event took place virtually in 2021 and was organized in May last year.
The postponement of the event from its usual January date to May meant that several high-profile figures from politics and business were unable to attend due to scheduling conflicts.
This year, however, Davos will host the largest corporate event ever, with 1,500 business leaders attending, including 600 CEOs from some of the world’s largest companies.
Edited by: Uwe Hessler