Davos Summit 2023: WEF

• 21 Jan 2023

Prelims: Chief Economists Outlook, Coalition of Trade Ministers on Climate, Giving to Amplify Earth Action.

Mains: Davos Summit 2023, World Economic Forum.

Why in News?

The 53^rd edition of the annual World Economic Forum summit was held in Davos, Switzerland.

• Theme: Cooperation in a Fragmented World.

What are the Key Points of Davos Summit 2023?

• Coalition of Trade Ministers on Climate:
  • A new Coalition of Trade Ministers on Climate launched, bringing together over 50 countries to boost international cooperation on climate, trade and sustainable development.
  • Stakeholders across the world stressed the value of free trade. Even in the current global economic landscape marked by fragmentation, the free trade system, which has contributed to global economic growth and enhanced humanity’s freedom remains a global public good that can never be forsaken.
• Chief Economists Outlook:
  • The Chief Economist's Outlook was launched, which struck a cautious tone, with two-thirds of those surveyed expecting a global recession this year 2023.
  • It explores the key trends in the economic environment, including the prospects for growth, inflation and monetary and fiscal policy.
  • It calls for the importance of reskilling in order to prepare current and future workforces for the green transition, the digital transition and the jobs of the future.

• Giving to Amplify Earth Action:
  • A new initiative Giving to Amplify Earth Action (GAEA) was launched to leverage philanthropic capital to unlock funding for the climate crisis.
  • It will leverage philanthropic capital to help generate the USD 3 trillion needed each year from public and private sources to tackle climate change and nature loss.
    • Philanthropic giving totalled USD 810 billion in 2021, but just 2% went towards reducing emissions
  • GAEA is a ground-breaking initiative supported by more than 45 major philanthropic, public and private sector partners.
• Global Collaboration Village:
  • WEF has announced the rollout of its own metaverse platform, dubbed the Global Collaboration Village.
  • The digital world, designed to look like the actual town of Davos in which the organization meets once every year, will supposedly allow for more efficient collaboration between world leaders.

What were the Indian Perspectives?

• Indian Participation:
  • This year marks 36 years of the Forum’s collaboration with India.
  • At the summit, India is represented by a high-level delegation which includes Union Ministers, Chief Ministers, Business leaders etc.
• Focus Area:
  • India’s focus areas at WEF remained investment opportunities, infrastructural landscape and its inclusive & sustainable growth story.
• India’s Resilience and Economic Trajectory:
  • India has crossed many barriers after the Covid-19 crisis and repositioned itself as the fastest-growing economy.
  • Some prominent indicators for India to see robust economic growth include World Bank's latest India development update, which said India's real GDP growth is expected to be at 6.9 % in FY22-23 in comparison to 8.7 % in FY21-22.
• India@100: Realising the potential of a USD 26 trillion economy:
  • The report, ‘India@100: Realising the potential of a USD 26 trillion economy’, was launched by India, on the sidelines of the summit.
  • As per this report, India’s economy will reach USD 26 trillion by 2047, the 100th year of the country’s independence.
  • It underscores the growth trajectory of the Indian economy, which is projected to be the highest for any large economy over the coming decades.

Note: Situated on the Landwasser River, in the Rhaetian Alps, eastern Switzerland, Davos is a resort town consisting of two villages, Davos-Platz and Davos-Dorf.

What is World Economic Forum?

• About:
  • The World Economic Forum (WEF) is a Swiss nonprofit foundation established in 1971, based in Geneva, Switzerland.
  • Recognized by the Swiss authorities as the international institution for public-private cooperation.
• Mission:
  • Committed to improving the state of the world by engaging business, political, academic, and other leaders of society to shape global, regional, and industry agendas.
• Founder and Executive Chairman: Klaus Schwab.
• Some major reports published by WEF are:
  • Energy Transition Index.
  • Global Competitiveness Report.
  • Global IT Report
    • WEF along with INSEAD, and Cornell University publishes this report.
  • Global Gender Gap Report.
  • Global Risk Report.
  • Global Travel and Tourism Report.

UPSC Civil Services Examination, Previous Year Questions (PYQs)

Q1. Which of the following gives ‘Global Gender Gap Index’ ranking to the countries of the world? (2017)

(a) World Economic Forum
(b) UN Human Rights Council
(c) UN Women
(d) World Health Organization

Ans: (a)

Q2. Who among the following is the founder of World Economic Forum? (2009)

(a) Klaus Schwab
(b) John Kenneth Galbraith
(c) Hobert Zoellick
(d) Paul Krugman

Ans (a)

Q3. The Global Competitiveness Report is published by the (2019)

(a) International Monetary Fund
(b) United Nations Conference on Trade and Development
(c) World Economic Forum
(d) World Bank

Ans: (c)

Source: IE