It’s
where the most powerful and wealthiest people in the world congregate. It’s the
world platform where ideas, solutions and big investments are some of the topics discussed. Yes,
we are talking about Davos, the Swiss ski town, that hosts the annual meeting
of the World Economic
Forum. This year is special as it marks the 50th edition of the event.
The theme this year at Davos
2020 was ‘Stakeholders for a Cohesive and Sustainable World.’
The
participants, numbering nearly 3,000, included 53 heads of state, and leaders
from the world of science, business, and finance, apart from politics. A
line-up of entertainers and influencers from many countries are also part of
the meeting. From US President Donald Trump to German Chancellor Angela Merkel,
the list includes other famous personalities such as George Soros, Al Gore and
Greta Thunberg, among others.
Some
of the topics that were debated and deliberated upon at the meeting included
ecology, economy, technology, society, industry and geopolitics. Here are the
key takeaways and highlights from the Davos meet:
Climate change initiatives
Climate change occupied centre stage at Davos 2020. For the first
time ever, the top five risks that were ranked by WEF members centered entirely
around climate change
and other environmental issues. Reputed names like Prince Charles and Jane
Goodall added heft to the climate change story. The noted anthropologist
Goodall lent support to the One Trillion Trees initiative by the WEF. Prince
Charles came up with a plan aimed at sustainability that included planning for
zero emissions by businesses and governments.
(Source:Bloomberg Quint*)
Greta Thunberg impact
While
young climate change activist Greta Thunberg emphasised that the world was
still on fire, President Trump called upon the world to reject “predictions of
the apocalypse.” Also, while Greta called upon governments and firms to reduce
fossil fuel use, US Finance Chief Mnuchin came down sharply on her statements.
Time to UpLink
The
WEF, apart from launching the One Trillion Trees initiative, also launched
UpLink, which is a platform that will bring together entrepreneurs who are keen
on solving problems that communities face. Such communities and entrepreneurs
will get backing to scale up their solutions.
Reskilling, the need of the hour
The World Economic Forum launched the Reskilling Revolution, which
is an initiative aimed at improving education, providing skills training and
jobs to one billion people across the globe during the decade. These skills are
essential to lead the world into the Fourth Industrial Revolution, according to
the WEF. The founding government members include India, Pakistan, Brazil,
Russian Federation, the UAE and the US. LinkedIn, Coursera Inc, PwC,
Salesforce, The Adecco Group and India’s Infosys are business partners for the
reskilling initiative.
Stakeholder capitalism
Although
the concept of stakeholder capitalism is around for a while now, and even at
the previous editions of the World
Economic Forum, this time it has received great emphasis. According to
WEF founder Klaus Schwab, “stakeholder capitalism” has been in the mission of
WEF since 1973. Stakeholder capitalism is all about the shift from shareholders
to stakeholders. All stakeholders, including customers, employees, communities
and suppliers, would need to be protected under this form of stakeholder
capitalism. The focus, accordingly, needs to be shifted to the larger
Environmental, Social, and Governance (ESG) objectives.
All eyes on AI
Big
tech firms including Google and Microsoft have sought some regulation in the artificial intelligence
sector. Google CEO Sundar Pichai said AI was one of the most profound things
the world is working on calling it “more profound than fire or electricity.” He
stressed the need for a global framework to regulate AI technology. Microsoft CEO
echoed the same sentiments, calling for regulation of artificial intelligence globally, apart
from regulating facial recognition technology.
AI arms race
Historian
and author Yuval Harari pointed out that the world is caught in an “AI arms
race”, with the US and China leaving others behind. He called for a
distribution of the benefits that artificial intelligence brings without which some countries
could go bankrupt.
Global network of universities
Philanthropist
George Soros pledged $1 billion for setting up a network of universities across
the world aimed at promoting liberal ideas and values.
India at Davos
According
to a survey released on the first day of the summit at Davos 2020, India is still the fourth most
attractive market for CEOs across the globe. A delegation of over 100 CEOS,
apart from Union Ministers and Chief Ministers from Indian states participated
at Davos. The team was led by Union Commerce Minister Piyush Goyal. The WEF
awarded actress Deepika Padukone for the work her foundation has done to spread
awareness on mental health.
Among
other things, Davos is a great opportunity for Indian states to attract investments. For
instance, the Telangana government clinched a deal with the Piramal Group to
invest Rs 500 crore over the next three years so as to expand its pharma
segment. Karnataka chief minister B S Yediyurappa said several international
companies evinced interest in investing in his state. The Union Minister,
Piyush Goyal exuded positivity as he noted the enthusiasm from across the globe
for making investments
in India.
In a nutshell
Whether you are an entrepreneur or investor, whether you are a regular consumer or a corporate house, gaining an understanding of the economy and the issues revolving around it is important. If you are interested in wealth management and investments, Tata Capital is the one-stop shop for all your needs.
14 April 2020
5 mins read
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