Leaders gather in Davos in search of answers to world’s problems
Globalisation, populism and Brexit are among the main issues at the World Economic ForumEuropost
Anxieties over trade disputes, fractious international relations, Brexit and a growth slowdown that some fear could tip the world economy into recession are set to dominate the World Economic Forum annual meeting in Davos from 22 to 25 January. The WEF's own Global Risks Report set the tone last week with a stark warning of looming economic headwinds.
Some 3,000 business, government and civil society figures are due to gather in the snow-blanketed ski resort, but among them are only three leaders of the G7: Japanese PM Shinzo Abe, German Chancellor Angela Merkel and Italian PM Giuseppe Conte. Donald Trump, who stole the Davos limelight last year with a rare appearance by a sitting US president, pulled out of this year's event as he grapples with a partial US government shutdown.
French President Emmanuel Macron is also skipping the meeting as he seeks to respond to the “yellow vest” protests, while British PM Theresa May battles to find a consensus on Brexit. Outside the G7, the leaders of Russia and India are shunning Davos, while China - whose president, Xi Jinping, was the first Chinese leader to attend the elite gathering in 2017 to offer a vigorous defence of free trade - is sending his deputy instead. That will leave the likes of British Finance Minister Philip Hammond, Chinese VP Wang Qishan and a host of central bankers with the task of trying to reassure business chiefs.
“Davos will be dominated by a high level of anxiety about stock markets, a slowdown in growth and international politics,” said Nariman Behravesh, chief economist at IHS Markit. “The leadership presence is lower than last year but those who are going ... will be seeking to impart a sense of confidence and calm business and investors’ nerves.”
Before the US cancellation, a Trump administration official had said the US delegation would also discuss the importance of reforming institutions such as the World Trade Organisation, the International Monetary Fund and the World Bank. Trump has harshly criticised globalization and questioned U.S. participation in multilateral institutions such as the WTO, calling for a revamp of international trade rules.
Davos watchers said the absence of so many top leaders this year did not mean the glitzy forum had lost its status as a global stage for top politicians to present their agendas. “Abe is going to Davos not just as Japanese prime minister but also as chair of the G20. It will be a perfect opportunity to lay the groundwork of upcoming G20 meetings,” said a Japanese government source familiar with international affairs.
The low turnout among major Western leaders may also give more prominence to political personalities who may otherwise be upstaged. Davos will be the first major international outing for Brazilian President Jair Bolsonaro, elected on a wave of anti-establishment and conservative nationalism also seen elsewhere.
For business chiefs, the value of Davos lies not so much in the public sessions but in the networking and dealmaking opportunities on the sidelines of the main conference. “It’s the best place to pitch for ideas, build connections and get your brand known,” said Chen Linchevski, chief executive of Precognize, an Israel-based start-up developing software that prevents technical or quality failures at manufacturing plants.