International Dissolution of Globalization and Demise of the 'Davos Elite' | Sanjaya Baru explains the disintegration of globalization and the decline of the influential 'Davos Man'.
In this contemporary world, it's resolution-worthy that the fall of a significant figure, Klaus Schwab, from the financial and ethical hot seat of the World Economic Forum (WEF), mirrors the growing discontent towards economic globalization in the developed West. Amidst allegations of corruption, misconduct, and manipulation, Schwab's once unassailable position crumbled this past week, with the WEF's board of trustees asking for his resignation.
Known globally for hosting prestigious events like the Davos Forum in Switzerland and regional forums across the world, the WEF has long been led by Schwab since its inception in 1971. Originally called the European Management Forum, the WEF gained traction post the Cold War, as economic liberalization and globalization became the new economic mantras.
Schwab's knack for assembling powerful figures encompassed not just business magnates and government heads but also intellectuals, Nobel laureates, authors, and celebrity influencers. The annual gathering at Davos was a masterful spectacle that kept attendees locked in a Swiss town, enthralled by the exclusivity of the experience. The WEF's high-profile board of trustees boasted notable names like Al Gore, Tharman Shanmugaratnam, Ngozi-Ikonji Iweala, Kristalina Georgieva, Mukesh Ambani, and Ajay Banga.
Over the years, the prestigious Davos jamboree served as a focal point for sociological analysis, with the term "Davos Man" coined to describe a citizen who views national borders as barriers fading away. Ironically, while Donald Trump, in his previous business incarnation, was one such emblem of global capitalism, his political rhetoric now resonates with the "anti-Davos" sentiment, fueled by discontent towards globalization.
Schwab's purported transgressions include using WEF funds for personal expenses like hotel room massages, funding a Nobel Prize campaign, and maintaining a lavish lifestyle with multiple luxury homes and first-class travel. He has also been accused of manipulating WEF global competitiveness rankings to curry favor with select governments. While both Schwab and his wife Hilde deny all allegations, the WEF's acclaimed board of trustees requested his departure.
During the same 2017 Davos conference, when Western leaders criticized globalization, Chinese President Xi Jinping championed economic integration and the importance of open international trade. With Boao Forum, China hosts its own Asian version of Davos, now attended by over 2,000 delegates from more than 60 countries, which may potentially aspire to global dominance.
Historically, numerous high-profile Indian figures have become Davos regulars. Established by Tarun Das and the Confederation of Indian Industry (CII), the early alliance between Schwab and Das fostered a vibrant Indian presence at Davos events. Despite the controversy, India's CEOs, ministers, bureaucrats, and journalists continued to flock to Davos, eager for an opportunity to network and showcase their influence.
The fall of Schwab ignites some introspection about the nature and motivations of these international gatherings. From stimulating global dialogue to opening conduits for global business, it remains to be seen if the West and the rest will maintain their interest in these schmoozing forums or turn towards new platforms like Boao Forum that more decisively reflect the political zeitgeist.
Finance-related discussions at the World Economic Forum (WEF) might face scrutiny after the resignation of Klaus Schwab, following allegations of misuse of WEF funds and manipulation of global competitiveness rankings.
The WEF, best known for hosting the annual Davos Forum, stands to face a potential shift in trust and credibility with the controversial resignation of its founder, Klaus Schwab.
