What are the key takeaways from World Economic Forum's Davos event 2023

What are the key takeaways from World Economic Forum's Davos event 2023 

Davos event is conducted by World Economic Forum. The WEF, is an international non profit organisation, established in 1971 by Klaus Schwab, is chairman of this organisation. It provides a platform, where representatives of the world, decision makers, policy makers and corporate leaders meet. It's members discuss on the issues of  the world, find ways to the solutions, and formulate policy in view of future.

This year the Davos event is considered important because it held after a gap of two years. The last meeting was held in 2020, although another two meeting also took place in 2021 and 2022, but it was virtual meeting. 

This year leaders of 51 nation heads, 600 corporates representatives, Governors of central bank of the member countries as well as representatives from UN, WTO, NATO, IMF. The theme of this year is  "Corporation in the fragmented World ". The theme was chosen because the world is dividing on - different ideologies, protectionism.

Why is the need of the World Economic Forum ?

The WEF is criticised due to many reasons. It does not represent the poor world. However it has some negative aspects, it is an international platform. 

After the globalisation, the inter dependency on each other countries increased. Goods, services are now globalised, foreign investment is done. In the global world, no country is producing goods by own, they spread their presence in more countries. This comapany is called MNCs. It collaberates with local companies to manufacture goods and sell products to other countries. 

We have set of examples like the Ford Motors of US, invested in India in 1995 with an investment of 1800 crore and established its production unit in Chennai. It not only helped the local company Mahindra and Mahindra with whom it collaborates, but shared technology and helped in increasing production in India. The US mobile giant Apple set up its factory in India, manufactured, and now exporting products to the world from India.

So in both the example the trend has been changing, so no a single country can sustain without having market relations with rest of the world.

There are many problems like climate change, global warming, terrorism, corona pandemic and its affects,etc should be addressed. This is one of the best platform where these issues can be addressed very effectively. The present challenge is Corona and climate change. These problems see no borders.

Discussion on Economic front

After the two years of economic crisis, the situation has now become easy. The Western Countries has low economic growth but it has not faced recessions. It had been expecting that the war of Ukraine and Russia will take an ugly form, but it seems it is now about to end.  

China has ended its Zero Covid Policy, due to this it removes the impediments in the way of supply chain. But the Governor of the Central banks express concerns about the rise of inflation. They apprehended about the inflation and may it affect on common people. It also advocated the strict monetary policy, high interest rate the banks must take in order to control inflation. 

In this meeting they also discussed on protectionism, they heed only on their workers, energy efficiency and protect the interest of the domestic manufacturers.

Virtual message from Ukraine 

The president of Ukraine has given a virtual message saying that the western countries should provide military aid and financial support to Ukraine so that it can rebuild Ukraine. He also criticised both America and Germany for not providing military aid.

Discussion on Climate

The members discussed on Green energy and focused to increase it. To combat this challenge it needs money, therefore, a initiate was taken called " Giving to Amplifiers Earth Action",GAEA. It is needed to create which will generate fund and this will spend on developing countries to combat climate change. The developing nations have not much contribution on climate change. It is the developed nations and some big developing nations like China and India have contributions in carbon emission. The money will be given to small countries appealing them not to expand their secondary sector too much so that it could harm our environment. The developing nations are not accepting the proposals easily, but have to make them force to curb on the carbon emission by taken money from the developed and big economies. It is proposed that about 3 trillion dollar money should be spend on climate control.

Davos - India 2023.

 India has completed 36 years relations with Davos. It is a high level delegation allows representatives from many countries. India continues send its representatives in Davos and completed 36 years of relationship.