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The world's richest and most powerful people have gathered in Switzerland for the World Economic Forum (WEF) with the aim of tackling global issues such as populism and increasing inequality, but some observers maintain the forum itself continues to be a symbol of the ongoing problems worldwide.
Key points:
- The 2019 meeting aims to create a shared future in a fractured world
- Donald Trump, Emmanuel Macron and Theresa May will not be attending this year
- Analysts have criticised the forum as a part of the problem of rising inequality
Around 3,000 of the world's political elites converged at the small Swiss mountain town of Davos yesterday for the annual conference to discuss the biggest issues of the day and how to address them.
Since the last event, the world has become even more fragmented: from the anti-elite Gilet Jaunes protests in France, populist wins at the ballot box in Brazil, Italy and Mexico, as well as strongmen consolidating power in Turkey and Hungary.
This year's topic is Globalisation 4.0: Shaping a New Architecture in the Age of the Fourth Industrial Revolution — or, in layman's terms: the next phase of globalisation in a society that has become increasingly disenfranchised and divided due to quickly evolving technological advances and competition.
Klaus Schwab, founder and executive chairman of the WEF, wrote in an opinion piece last year that the conference would look to rebuild a future in a fractured world while calling for sustained dialogue and cooperation.
"Pessimists will argue that political conditions are standing in the way of a productive global dialogue about Globalisation 4.0 and the new economy," he wrote.
"But realists will use the current moment to explore the gaps in the present system, and to identify the requirements for a future approach.
"Optimists will hold out hope that future-oriented stakeholders will create a community of shared interest and, ultimately, shared purpose."
But Evgeny Postnikov, lecturer of International Relations from the University of Melbourne, maintains that he is "sceptical about re-labelling globalisation" and claims that refurbishing the concept will not solve the underlying issues.
"It seems WEF might be trying to salvage good old globalisation by giving it a new spin," Dr Postnikov told the ABC.
"The fourth industrial revolution only exacerbates [the challenges of inequality, environmental degradation and economic insecurity] and their urgency is undeniable.
"[These issues are] at the heart of the problem with rising populism and nationalism."
'If the system is broken it's not going to work'
The WEF is attended by the world's global elites, including world leaders, politicians, NGOs, academics and activists.
The forum has been successful in creating positive global impact in the past such as the 1988 declaration between Turkey and Greece to circumvent a war, as well as providing a platform for the German re-unification discussions the following year.
But according to Wesley Widmaier, associate professor with an expertise on International Political Economy at the Australian National University, the WEF continues to distract from itself as part of the neoliberal framework that is central to the economic problems the world faces in the 21st century.
"They're trying to solve poverty and rising inequality using tools that ultimately modify the excess of a machine that increases inequality — it's pathological in a sense," he told the ABC.
Dr Widmaier argues that the legitimacy of the WEF has consistently been challenged since the 2008 Global Financial Crisis, which he said proved that the structure of the neoliberal system itself is "unstable and unsustainable".
"It's a zombie forum which articulates a conventional wisdom before 2008," he told the ABC.
"The problem is the whole underlying neoliberal model is exacerbating inequality which has taken us into this world."
Dr Widmaier maintains that while "it's a cheap shot to say the neoliberal model is flawed" as it has delivered a lot of benefits to the world in the past, "the GFC revealed the fundamentally unstable and unsustainable nature of it because … its contingent on continually accommodating and refuelling [asset price and stock market bubbles and the accumulation of wealth]".
"It's just not a sustainable way … so you get people who are left behind and that explains Brexit and Trump," he said.
Trump, May absences from forum causing anxiety
The fear many neoliberal political elites are now facing is the erosion of the world order and its democratic institutions, where every nation is out for itself, with Brexit and the election of United States President Donald Trump paving the way.
Mr Trump and other members of the US Government will not be a part of this years meeting due to the government shutdown; French President Emmanuel Macron and UK Prime Minister Theresa May are also skipping the forum to put out fires back home.
The absence of the three western leaders from this years forum, whose nations have historically championed global cooperation, have represented reasons for the anxiety, according to Dr Postnikov.
"I would view this as a sign of US withdrawal from the leadership of the international order it previously built," Dr Postnikov told the ABC.
The possible withdrawal also has some analysts concerned about China's growing economic power and global influence.
However, Dr Widmaier says it is too soon to see the impact the rise of China can have, if any, or whether it will challenge the current global order.
"China challenges the global supply chains and has contributed to many changes in the West, but in terms of global purpose, China does not seem to know what it wants yet," he said.
Populism an 'attractive' alternative to the status quo
A report by Oxfam released earlier this week attempted to shine a light on the growing global wealth inequality days before Davos.
The annual report found that the world's wealthiest people grew richer by 12 per cent last year, while the bottom half of the global population fell by around 11 per cent.
Mr Schwab, wrote that a "substantial part of society has become disaffected and embittered" with politics and politicians as well as the entire economic system under globalisation.
During this time populism has become an "attractive" alternative to the status quo, he wrote.
Addressing this will require global cooperation and "a new social compact between citizens and their leader", and failing to do so, will result in the "ongoing disintegration" of our society, which could ultimately lead to "the collapse of democracy".
Dr Postnikov said the forum could potentially serve as an effective platform to begin overdue conversations about the "the brink of [a] democratic breakdown".
"Acknowledging their role in not ensuring that globalisation works for everyone and assuming some responsibility for popular discontent should be the next step," he said.
"It would be then up to the global community to come up with a blueprint that can be implemented.
"Such a focused conversation is overdue and would be much more productive than simply upgrading the idea of globalisation."
But whether such large global topics can be effectively addressed and self-reflective conversations achieved within three days of meetings in Switzerland, remains to be seen.
Topics: government-and-politics, world-politics, business-economics-and-finance, globalisation---economy, economic-trends, economic-and-social-development, trade, international-aid-and-trade, switzerland
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