The World Economic Forum (WEF), based in Geneva, have been meeting up for their yearly convention on January 25 and will be concluding the exclusive gathering on January 29. The WEF was established in 1971 and is an independent international organization formally designed to improve the state of the world and organize annual meetings in Davos to discuss, debate, redefine, and rebut many of the world′s most pressing economic and political issues.
Every year in snow-covered Davos, WEF organizes a meeting hailed as a convergence of the elite, from the world of business, governance and academics engaged in finding strategic solutions to global economic problems and perhaps acting as a counsel of change.
This year, the theme is œThe Great Transformation: Shaping New Models which have be organized in the backdrop of eurozone fiscal fissure, tussle for reform and installation of democracy in the Arab world, slow and sensitive global growth, and lastly, the unending enigma of capitalistic disorder.
Assume the world is a stage. We have seen many despotic characters fall in the Arab world, and many characters emerging with ponderous levels of debt on their backs, casting a shadow of imminent instability to the global economy. Also, the world witnessed a few Asian players taking the lead in the economic game, and there has been a transformation in the totality of the economic and political picture of the world.
Nonetheless, it will be intriguing to see at this juncture, as the European monetary union is on the verge of collapse due to fiscal disorder and as capitalism is brutally blamed for excessive greed, what transformation WEF can bring or advocate in Davos.
The co-efficient of congress
Due to several fundamental changes occurring in the world, we have lost sight of where the world is going. Professor Klaus Schwab, the founder of WEF, stated that we clearly need new models for global, regional, and national business decision-making. According to him, new models are needed to account for the fundamental power shifts that have already happened and continue to take place. Additionally, the following are also needed:
- New models are needed to acknowledge that we live together in a multicultural, multi-ethnic, and multi-religious world.
- A model is needed to seriously address the social impact of globalization and new waves of technological innovation.
- Another model is needed for job creation.
As correctly recognized by Professor Schwab, there is a need to review the distribution of power in the world, such as new shifts in balance of economic power from west to east, so there can be a greater variation in attendees. Countries which were not a part of this gathering in the past have been invited for the 2012 edition and this time around, the WEF is welcoming people from the Arab world, including Egyptian presidential candidates, the Tunisian prime minister, and the Libyan interim prime minister.
Speaking to journalists near the forum′s headquarters, Professor Schwab stated recently, œCapitalism, in its current form, has no place in the world around us.” Sharan Burrow, General Secretary of the International Trade Union Confederation said, œIt is too optimistic to say we need a new system. The system is not working because of extraordinary greed, extraordinary inequality and attacks on workers’ rights that are leading to a crash in demand.
Income inequality is rampant in the world today, according to a report published by the Organization for Economic Cooperation and Development (OCED). Wage gaps between the rich and the poor have reached their highest point in 30 years.
It has been observed that job creation is the key to eliminating the disparities in people’s incomes as well as sluggish growth rate and most importantly social unrest, so there is hope that the WEF meeting at Davos can inspire the reconstruction of a defunct system of capitalism by introducing far reaching changes.
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