World Economic Forum

Source: IE

Why in News?

The World Economic Forum (WEF) is holding its Annual Meeting from 15^th January to 19^th January, 2024 in Davos, Switzerland.

What are the Major Points Related to the World Economic Forum (WEF)?

• About: WEF is the International Organization for Public-Private Cooperation. The Forum engages the foremost political, business, cultural and other leaders of society to shape global, regional and industry agendas.
  • It is headquartered in Geneva, Switzerland.
• Foundation: Klaus Schwab, a German professor with a background in mechanical engineering and a Master of Public Administration from Harvard, founded WEF in 1971, originally known as the European Management Forum.
  • He introduced the concept of “stakeholder capitalism.”
  • According to Schwab, “It is a form of capitalism in which companies do not only optimize short-term profits for shareholders, but seek long term value creation, by taking into account the needs of all their stakeholders, and society at large.”

• Evolution: Events in 1973, namely the collapse of the Bretton Woods fixed exchange rate mechanism and the Arab-Israeli War, saw the Annual Meeting expand its focus from management to economic and social issues.
  • Two years later, the organization introduced a system of membership for ‘the 1,000 leading companies of the world.
  • In 1987, the European Management Forum formally became the World Economic Forum and sought to broaden its vision to include providing a platform for dialogue
  • In 2015, the Forum was formally recognised as an international organization.
• Funding: Primarily supported by partnering corporations, typically with annual turnovers exceeding USD 5 billion.
• Annual Meeting in Davos: Davos brings together around 3,000 participants (including paying members and select invitees): investors, business leaders, political leaders, economists, celebrities, and others to discuss global issues across 500 sessions
• Key Diplomatic Moments at WEF:
  • Korean Diplomacy: North and South Korea held first ministerial-level meetings in Davos.
  • German Reunification (1989): East German Prime Minister and German Chancellor met at WEF to discuss reunification.
  • South African Milestone (1992): South African President de Klerk, Nelson Mandela, and Zulu prince Mangosuthu Buthelezi made their inaugural joint appearance outside South Africa, marking a significant milestone in the country's political transition.
  • G20 Genesis(1998): WEF emphasized the need to involve major developing countries. Therefore, the concept of G20 emerged, initially limited to finance ministers.
    • G20, born from WEF discussions, evolved into a summit.
• Major Reports: WEF regularly publishes globally recognized reports, including the Global Competitiveness Report and the Global Gender Gap Report, Energy Transition Index, Global Risk Report, Global Travel and Tourism Report.