Davos unveiled: What world leaders will talk about and why

The World Economic Forum’s annual meeting takes place in Davos, Switzerland, this week

Switzerland Davos Forum (Copyright 2024 The Associated Press. All rights reserved)

The annual meeting of the World Economic Forum began in Davos on Monday.

Delegates from big business, governments, civil society, academia and media will spend the week discussing the biggest global challenges.

Here is all you need to know about the event.

– What is the World Economic Forum?

The World Economic Forum (WEF) was founded in 1971 by German economist Klaus Schwab with the aim of encouraging collaboration between the private and public sectors.

Generally, the WEF focuses on emerging and established global problems. One of its primary stated goals is to work towards improving “the state of the world”, despite the inevitable differences of opinion on how this should and can be achieved.

Importantly, the WEF issued a Davos Manifesto in 2020 which stated it is formally guided by “stakeholder capitalism”.

This declared corporations should deliver value and benefits to employees, society and the planet, as well as shareholders.

-Why is Davos important?

For both politicians and corporate leaders, Davos is not only an opportunity to engage and influence other powerful public and private decision-makers, but it also creates an impression of stature and respect on the global stage.

As with all conferences, the opportunity to build relationships beyond the keynote speeches is key, but the sheer range of delegates and the scope of their influence takes networking at Davos to another level.

For governments it is an opportunity to try to cement and expand influence and co-operation, while politicians in opposition will use Davos as an opportunity to build new relationships and boost their economic credentials at home and abroad.

The World Economic Forum’s annual meeting takes place in Davos, Switzerland, this week (Alamy/PA)

-Why are members of the Labour shadow cabinet attending Davos?

The event is clearly a prime opportunity for Labour to further impress on corporations and voters that the party is now firmly pro-business and serious about stimulating economic growth.

There is evidence that this approach is working domestically, with improved relations with the business community and a strong private sector presence at the Labour conference, which some jokingly referred to as the “Liverpool Davos”.

Shadow chancellor Rachel Reeves has spearheaded her party’s efforts to court business and will be joined in Davos by shadow business secretary Jonathan Reynolds.

The pair have lined up a series of meetings, including with Google, Barclays and Ericsson, as well as with other chief executives, investors and financiers.

Ahead of her trip, Ms Reeves reiterated her commitment to boost wealth creation and business investment in the UK.

Drawing clear dividing lines between Labour in its current form, the party under previous leaders and elements in the Conservative Party, she added: “There are some in politics, including those of the old left and Conservative right, who have spent the past few years rallying against, or even insulting, business.

“I profoundly disagree with them.”

In what will be a key message to delegates and others listening in, Ms Reeves said being “pro-business and pro-worker are two sides of the same coin”.

-Who is attending Davos on behalf of the UK Government?

Rishi Sunak will not be attending the World Economic Forum for the second year in a row.

Number 10 has not provided an explanation for his absence but the Prime Minister is facing significant problems at home.

He is braced for a Commons showdown on Tuesday over his flagship Rwanda plan, as allies sought to play down the damaging prospect of two Tory deputy chairmen joining a backbench rebellion.

Chancellor Jeremy Hunt, Foreign Secretary Lord Cameron and trade minister Lord Johnson will travel to Davos and may feel there is some damage to the Government’s reputation that needs repairing.

For example, the cancellation of the HS2 rail line between Birmingham and Manchester provoked some anger from industry, while concerns have also been raised by businesses over the watering down of net-zero commitments.

Jeremy Hunt (PA Wire)

– What are the main issues that are expected to be discussed in Davos?

Global conflict, the rise of artificial intelligence and climate change are set to be the key themes of discussions at this year’s gathering.

The WEF said it is focused on “rebuilding trust in an era of rapid change and increased fragmentation”.

The war in Ukraine, the conflict in Gaza and other geopolitical tensions will be at the forefront of delegates’ minds, with discussions set to focus on what the organisers describe as a response to “profound disruption”.

WEF founder Klaus Schwab said: “We face a fractured world and growing societal divides, leading to pervasive uncertainty and pessimism.

“We have to rebuild trust in our future by moving beyond crisis management, looking at the root causes of the present problems and building together a more promising future.”

– Why is Davos controversial?

There are politicians and commentators on both the left and right who are highly critical of the WEF.

Some on the right describe the forum’s lofty aims as idealistic and the event as an example of counter-productive “groupthink”.

Others on the left say a gathering of some of the world’s richest individuals and corporations is a sinister example of the global elite asserting its ideology and authority.

There are often protests surrounding the event, while sometimes delegates raise concerns over issues such as tax evasion and corporate greed.

– Where is Davos

Davos is in the Davos Region in the canton of Graubünden, Switzerland.