First virtual Davos

Following the spread of the coronavirus around the world, the World Economic Forum (WEF) celebrated its 51st edition in a different form than in previous years. For the first time this year, it takes place in virtual form. China and Covid-19 were the big guests.

What is the World Economic Forum (WFE)?

Founded in 1971, the FWE is also called the Davos Conference, the city in Switzerland where it was held for the first time. It is also a foundation headquartered in Geneva. Its president, Klaus Schwab, in 1971 organized the « European Management Symposium » to debate among European business leaders. They are thinking about how « European companies could catch up with American companies ».

For the first time in 1974, political leaders attended meetings to discuss economic and social issues.

In 1987, the « European Management Forum » became the « World Economic Forum ». Each year, this meeting attracts nearly 3,000 participants from all over the world, bringing together heads of state, politicians, NGOs, intellectuals and journalists. They discuss the most urgent problems on the planet (health, environment, economy, etc.).

In 1989, the Forum also became a platform to help countries and avoid conflicts. This was the case for Greece and Turkey but also for the 2 Koreas with a first meeting of ministers. It was also during this summit that Hans Modrow and Helmut Kohl discussed reunification.

In 1992, South African President De Klerk met Nelson Mandela and Zulu leader Mangosuthu Buthelezi, marking an important milestone in the country’s political transition.

In 1994, Shimon Peres and Yasser Arafat concluded a draft agreement on Gaza and Jericho.

Who finances the « Davos »?

Large companies, members of Davos, finance the Forum. Among them, we find ArcelorMittal, Google, Facebook, the French Total, Publicis, Sanofi, Engie, Veolia …

The Board of Directors is made up of 22 members, including Al Gore and Christine Lagarde, Managing Director of the International Monetary Fund from 2011 to 2019 and then President of the European Central Bank.

The guests come from all walks of life, from multinational leaders to politicians, including civil society actors (NGOs, writers like Umberto Eco or « stars » like Bono. In 2000, the anti-globalist José Bové was invited but he participated the year in the « contre-Davos », World Social Forum.

Davos 2021

In 2021, the World Economic Forum will be held twice:

• From January 25 to 29, 2021, virtually for the first time. The chosen theme is: « A crucial year to rebuild confidence »
• From May 13 to 16, 2021 in Singapore due to Covid-19. A strict security protocol will be in effect upon arrival on the territory, before the conference and regular antigenic tests. This will be the second time that the WEF is held outside of Switzerland. In 2002, it took place in New York, as a sign of solidarity after the attacks of September 11, 2001.

In 2022, he is expected to return to Davos to discuss the challenges of recovery from the economic shock triggered by the pandemic. Decision makers will be able to understand how to redress the situation.

The virtual summit

On January 25, 2021, Chinese President Xi Jinping opened the 51st edition of the World Economic Forum in a virtual format for the first time. This year, the international health crisis was at the center of the debates, China and Asia were the main guests.

Thanks to Oxfam’s annual report, the organizers intend to « reform capitalism ». The NGO calls for taxing the richest to fight « the virus of inequalities ». As millions plunged into poverty, billionaires saw their fortunes increase by $ 3.9 trillion between March 18 and December 31, 2020.

The main representatives

The fight against inequalities and financialization were the subjects proposed by French President Emmanuel Macron.

German Chancellor Angela Merkel insisted on vaccine solidarity

European Commission President Ursula von der Leyen has committed to stronger protection of personal data on the Internet, as well as closer collaboration with the United States on the regulation of GAFAM.

Immunologist Anthony Fauci, presidential advisor on the pandemic, and John Kerry, special climate envoy, represented new President Joe Biden. The latter wants a return to multilateralism and the Paris Agreement.

The Chinese and South Korean presidents, the Indian and Japanese prime ministers, represented Asia. President Xi Jinping, who was in Davos for the first time in Davos in 2017, reiterated his call for free trade and international cooperation. Note that he signed an investment agreement last December with the European Union.

China showed growth of 2.3% in 2020. It is the only one to have market share and its surplus vis-à-vis the United States has increased by 7%. The country is the only one to have an economy that escaped the recession caused by the fight against the virus in 2020. It is becoming an engine for restarting global growth. As a result, following the pandemic, Chinese GDP is expected to equal US GDP by 2030.

The Chinese President’s proposals

In his opening speech, President Xi Jinping insisted on his country’s leading role in the overhaul of global governance. The Chinese economy has rebounded from the coronavirus crisis as the United States and Europe slipped into recession. He emphasized multilateralism and how to build a community with a shared future for humanity.

“It is important for us to accomplish 4 major tasks of our time,” he said.

The 4 major tasks for participants

1. Strengthen the coordination of macroeconomic policies and together promote sustainable, balanced and inclusive growth of the world economy.
2. Reject ideological prejudices and together pursue peaceful coexistence, mutual benefit and win-win cooperation.
3. Reduce the gap between developed and developing countries, together promote progress and prosperity for all
4. Work together to overcome global challenges and build a better future for humanity.

The answers

1. Pursue openness and inclusion and reject closure and exclusion to avoid division or even confrontation.
2. Preserve international law and reject the search for supremacy by respecting the principles and observing the established rules.
3. Pursue consultations and cooperation, reject conflicts and confrontation while respecting and reconciling differences. It is best to resolve differences through consultation and dialogue. Do not interfere in the internal affairs of others.
4. To be in phase with our times and to reject immobility while preserving the gains while opening up new horizons. On the health side, WHO must play an important role in building a community of health for all. Reform of the WTO and of the financial and monetary system must boost global growth and guarantee the rights of developing countries. We must also develop the rules of digital governance without forgetting to apply the Paris Agreement on the climate and promote green development. The implementation of a United Nations Sustainable Development Agenda by 2030 must take off.

Chinese commitments

1. Continue to take an active part in international cooperation against Covid-19. To date, China has provided aid to more than 150 countries and 13 international organizations. It sent 36 groups of medical experts to countries in need.
2. Maintain the mutually beneficial openness strategy to promote cooperation within the framework of the Belt and Road Initiative. This will provide greater impetus for recovery and global economic growth.
3. Continuity of the promotion of sustainable development. Full implementation of the United Nations 2030 Agenda for Sustainable Development. China should reach peak CO2 emissions
4. To promote science, technology and innovation by working with other countries for scientific and technological development for the benefit of all.
5. Continue to promote a new type of international relations by reducing poverty, alleviating debt and achieving economic growth in developing countries.

First responders

After the Chinese president, ECB President Christine Lagarde debated how to « restore economic growth ». His interlocutors were the French Minister of the Economy Bruno Le Maire, his German counterpart Peter Altmaier and the CEO of Goldman Sachs, David Solomon. The second subject of these virtual round tables, called « the Davos Agenda », was the control of the pandemic, the progression of its variants and the new restrictions despite the hope born with vaccines.

« Putting the record straight » was the common thread in the speeches of the various heads of state. What tools to use to get out of this pandemic period, when unemployment is impacting nearly 225 million lost jobs. However, the fortunes of the richest 1,000 people in the world recovered, if not increased, within months.

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