This year’s World Economic Forum in Davos starts in a week with the theme being Globalization 4.0: Shaping a new architecture in the age of the fourth industrial revolution. Many top executives and leaders from around the world attend this conference every year, and ahead of this event, the WEF founder has advocated the heads of state to draw an inclusive approach to globalization. This statement may have also been partly because of the ongoing political tensions among the major economic powers of the world. The Global Risks report was released by WEF earlier this week and a warning of an impending slowdown in the economy. The recent times have seen many geopolitical disharmonies which include the trade disagreements, Brexit, a slowdown in the Chinese economy, troubled international relations and much more.
Globalization has been the buzzword for many decades now, and that has helped both the developed countries as well as the developing countries with better economic growth. However, in recent years, globalization has taken a beating with many leaders taking a populist stand against it. That has disrupted migration as locals have started voicing their disapproval over lost jobs due to offshoring and automation as well as the closing of old industries. Keeping in mind these sentiments of the people the executive chairman of WEF Klaus Schwab told reporters that ‘We have to define a new approach to globalization which is inclusive.’ He also added that there is a need for moralization or demoralization of globalization and make it more sustainable and inclusive.
He further added that ‘Globalization has produced many winners and losers and there are many more winners, but now we have to look after the losers.’
Top leaders give Davos a miss:
This conference attracts the top executives from all over the world, this year some 3000 government, business, and other spheres are going to be in attendance. However, what is noteworthy is that some of the heads of states of leading countries like German Chancellor Merkel. Japanese PM Shinzo Abe, US President Trump, Italian PM Giuseppe Conte, French President Emmanuel Macron, Britain PM Theresa May, heads of India and Russia are not attending this event. Despite the absence of these top leaders, there is no loss of status as this is still a great stage for politicians to display their agenda.
There will be many executives like Chinese Vice President Wang Qishan, British Finance Minister Philip Hammond who will be looking to reassure top businesses. There is already growing anxiety over various affairs like tension in international politics, economic slowdown, fall in stock markets, which the leaders will seek to address in this forum and give the investors some confidence.