The World Economic Forum is trying to solve an image problem.
Nearly 2,500 world leaders in business, politics and civil society are expected to take part in the rare spring version of Davos this week.
The annual meeting at the luxury alpine ski resort of Davos in Switzerland will bring together movers for five days to discuss issues including Covid-19, Russia’s war in Ukraine and the climate crisis.
The organizers of the event postponed the meeting from the traditional January interval due to safety concerns amid the coronavirus pandemic. However, as a welcome incentive for locals, the first personal event of the forum returned after a two-year hiatus.
The theme of this year’s event is “History at a Turning Point: Government Policies and Business Strategies”.
“It means a lot to us. It means a lot to the whole of Switzerland,” said Samuel Rosenast, a spokesman for the local tourism board, in an interview with CNBC’s Tom Chiti.
Rosenast said the event was “incredibly important” for people living in Europe’s tallest city, estimating the resort could receive an unexpected profit of approximately 70 million Swiss francs ($ 72 million) this week alone.
“Every business is in contact with the World Economic Forum. People know how important it is,” Rosenast said. “Most people here are looking forward to the World Economic Forum. They are happy to be here again this year.”
“Symbol of a failed era”
This does not mean that everyone is happy to see the return of world business and political elite in the Swiss Alps. The event has been sharply criticized in recent years for lack of connection, ineffective and inappropriate.
Three years ago, Dutch historian Rutger Bregman went viral at a panel in Davos when he called on billionaires to avoid taxes. In a video that has already been viewed nearly 11 million times, Bregman said the global failure to tackle tax evasion effectively is the root cause of inequality.
“I feel like I’m at a firefighters’ conference and no one is allowed to talk about water,” Bregman said at the time. “It’s not rocket science … we need to talk about taxes. That’s it. Taxes, taxes, taxes.”
The Swiss ski resort of Davos is hosting the annual meeting of the World Economic Forum.
Harold Cunningham Getty Images News Getty Images
More recently, protesters, activists and people on the front lines of inequality have tried to challenge the WEF for its “empty rhetoric”, accusing Davos of being a “symbol of a failed era” that must be abandoned.
A report released Monday by the global charity Oxfam found that 573 people became new billionaires during the coronavirus pandemic – one every 30 hours. The summary, titled “Profit from Pain,” estimates that an additional 263 million people will be in extreme poverty this year at a rate of 1 million people every 33 hours.
“Billionaires arrive in Davos to celebrate the incredible growth of their wealth. The pandemic and the now sharp rise in food and energy prices have simply been a real reward for them, “said Gabriela Bucher, CEO of Oxfam International.
“Meanwhile, decades of progress in the fight against extreme poverty are now in reverse, and millions of people are facing an impossible price increase simply to stay alive.”
In his youth, Philip Wilhelm was one of those who protested against the annual gathering of billionaires and political leaders in the city where he was born. Now, however, Wilhelm is the mayor of Davos and his goal is to hold a successful meeting.
“I protested during the annual meeting because it was important for me to express that it is really crucial to resolve this climate crisis. And we need to make the world a fairer place, “said Wilhelm.
Wilhelm said he took part in the protests because he believed it was essential to ensure that everyone who arrives in Davos “receives the message that it is really important to solve these problems.”
The Davos Man himself has become synonymous with the stereotypical figure of a typical forum participant – rich and powerful, perhaps unrelated, but mostly a representative of the world’s elite.
Fabrice Coffrini Afp | Getty Images
Wilhelm said he – and the WEF – have changed their positions since the days of the protests, adding that he believes he can influence politics more effectively in his current role.
Asked if he was worried that criticism of the WEF had become too closely linked to Davos, given that the city itself had become largely interchangeable with the forum, Wilhelm said: “No, that doesn’t bother me at all.”
“I think it’s interesting that people know Davos as a place where people meet and discuss – and I mean, it has to be controversial. There must be a discussion about the right way to improve the state of the world, “said Wilhelm.
Davos 2022 is “one marker in time”
“The work of the forum continues. The meeting is a marker in time,” said Saadia Zahidi, managing director of the World Economic Forum.
“What we have been doing for the last two and a half years – although not seen from a specific meeting – is a set of work that is trying to break down inequality and at the same time make changes to tackle one of the biggest existential risks we all face, namely climate change. “
Asked if growing income inequality has become a particular problem for the forum, Zahidi said: “Inequality is a problem for the world. I think we know that societies that do not fight inequality will have slower growth.”
“So there has to be an effort to tackle inequality. Now, what does that mean? “Better education, better skills, better jobs, tackling issues like taxation and changing the nature of our economies so that they actually work for the people, not just the few,” Zahidi said. That will be at the forefront and at the heart of next week’s agenda. “
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