What is World Economic forum? What are the key highlights of the Davos Summit 2023? Read further to know.
The 53rd edition of the annual World Economic Forum summit 2023 was held in Davos, Switzerland. The theme of the event was “Cooperation in a Fragmented World”.
At this event, hundreds of business representatives, government officials, and members of civil society meet at the summit location to deliberate on the most pressing global issues for the upcoming year.
What is World Economic Forum?
The World Economic Forum (WEF) was founded in 1971 by Klaus Schwab, a German economist, and is an international non-governmental organization headquartered in Geneva, Switzerland. The first meeting, held in 1971 was originally known as the European Management Forum until it was changed to WEF in 1987.
The Forum’s stated purpose is to enhance the state of the world by bringing together leaders from business, politics, academia, and other areas of society to influence global, regional, and industrial agendas.
Key Highlights of Davos Summit 2023
A few important key highlights of Davos Summit 2023 are:
Real Estate Emissions
The World Economic Forum (WEF) reports that the leaders of real estate and other industries have committed to reducing their buildings-related emissions by 50% by 2030 and achieving Net Zero by 2050.
This is a significant measure in addressing global warming since emissions from real estate contribute to almost 40% of all greenhouse gas emissions related to energy, yet the sector is frequently excluded from decarbonization plans, as per WEF.
A coalition of Trade Ministers on Climate
Over 50 countries have come together to launch a new Coalition of Trade Ministers on Climate to boost international cooperation on climate, trade, and sustainable development. Stakeholders from around the world have emphasized the value of free trade, even in the current global economic climate of fragmentation.
They recognize the free trade system as a global public good that has contributed to economic growth and enhanced humanity’s freedom and believes that it can never be forsaken.
Climate Action, Biodiversity Loss
According to the Global Risks Report 2023 published by the World Economic Forum (WEF) on January 12, 2023, the two most critical risks confronting the world in the coming decade are ‘failure to mitigate climate change’ and ‘failure of climate change adaptation’, followed by ‘natural disasters and extreme weather events’ and ‘Biodiversity loss and ecosystem collapse’. Additionally, ‘natural disasters and extreme weather events’ are also ranked as the second-most severe risk that the world should be prepared for in the next two years.
The adoption of the Kunming-Montreal Global Biodiversity Framework (GBF) at the 15th Conference of Parties (COP15) to the UN Convention on Biological Diversity (CBD) marks a notable achievement in terms of worldwide efforts to address biodiversity.
Chief Economists Outlook
The Chief Economist’s Outlook has been launched, and it adopts a cautious tone. Two-thirds of those surveyed expect a global recession in 2023. The report examines key trends in the economic environment, including the prospects for growth, inflation, and monetary and fiscal policy. It highlights the importance of reskilling to prepare current and future workforces for the green transition, the digital transition, and the jobs of the future.
Ukraine continues to request additional military assistance to combat its conflict with Russia, as well as more financial aid to rebuild once the conflict concludes. The country has emphasized that commitments to the reconstruction fund should commence immediately rather than after the war concludes, stating that “the more we do now, the less we will have to do in reconstruction,” according to Odile Françoise Renaud-Basso, the President of the European Bank for Reconstruction and Development (EBRD).
Giving to Amplify Earth Action
A new initiative called Giving to Amplify Earth Action (GAEA) has been launched to leverage philanthropic capital to unlock funding for the climate crisis. GAEA aims to generate the USD 3 trillion needed each year from public and private sources to tackle climate change and nature loss.
Although philanthropic giving totaled USD 810 billion in 2021, only 2% went towards reducing emissions. More than 45 major philanthropic, public, and private sector partners support GAEA.
Over 50 “high-impact initiatives” were introduced at the event, according to the Press Trust of India (PTI). Maharashtra Institution for Transformation (MITRA) has signed an agreement with the forum on urban transformation to provide the state government with “strategic and technical direction.” Additionally, a thematic center focusing on healthcare and life sciences is scheduled to be established in Telangana. The Coalition for Epidemic Preparedness and Innovations (CEPI) has set a goal of developing new vaccines to combat future pandemics.
Global Collaboration Village
The WEF has announced the launch of its own metaverse platform, called the Global Collaboration Village. The digital world, which looks like the actual town of Davos where the organization meets once a year, is designed to facilitate more efficient collaboration between world leaders.
India has been collaborating with the WEF for 36 years, and this year, it is represented by a high-level delegation that includes Union Ministers, Chief Ministers, and Business leaders. India’s focus areas at the WEF are investment opportunities, the infrastructural landscape, and its inclusive and sustainable growth story.
Despite the COVID-19 crisis, India has crossed many barriers and repositioned itself as the fastest-growing economy. Prominent indicators for India to see robust economic growth include the World Bank’s latest India development update, which predicts India’s real GDP growth at 6.9 % in FY22-23, compared to 8.7 % in FY21-22.
India@100: Realising the potential of a USD 26 trillion economy
India has launched a report titled ‘India@100: Realising the potential of a USD 26 trillion economy’ on the sidelines of the summit. The report predicts that India’s economy will reach USD 26 trillion by 2047, the 100th year of the country’s independence. The report emphasizes the growth trajectory of the Indian economy, which is projected to be the highest for any large economy over the coming decades.
Article Written By: Priti Raj