What was said in Davos?
Takeaways from the annual World Economic Forum
The annual meeting of the World Economic Forum took place last week in Davos, Switzerland. From January 15th to 19th, the foremost political, business, and cultural leaders of our society gathered in the same place to shape global, regional and industry agendas.
The World Economic Forum is the International Organization for public-private cooperation. It has its headquarters in Geneva, Switzerland, and was initiated in 1971 as a non-profit foundation. Its main goal is to foster progress by bringing together the most influential organizations, from both the public and private sectors, international organizations, and academic institutions. The Forum is independent, impartial, and not tied to any specific interests.
At the 54th World Economic Forum annual meeting, leaders recently convened to discuss and advance solutions to the new challenges the world is facing. From artificial intelligence to climate change and global growth, business leaders and government officials focused on how cooperation could foster progress on the current issues.
Here are some takeaways from the Davos conference.
AI discussion
Artificial Intelligence was a relevant topic in different sessions of the World Economic Forum. Overall, the tone of the multiple panel discussions was optimistic and no longer dystopian, as shown by the OpenAI CEO Sam Altman contribution. During the week, the American entrepreneur stated that “AI will change the world much less than we all think.” In the past, Altman had, instead, repeatedly declared that AI could lead to human extinction.
Referring to Artificial General Intelligence (AGI), this technology was described as able to carry out tasks to the same level as, or better than, humans. Nevertheless, even if AI has been highly implemented in recent years, job listing remains above pre-pandemic levels in most countries. This is why, at the Economic Forum, Altman highlighted that he is now impressed by how companies are using technology to supplement human work. AI is increasingly considered as a resource and no longer a threat.
This way, talk of artificial intelligence was everywhere. The curiosity about how it could reshape everything was clearly present among the attendees. However, as the Forum proposes, potential risks were also analyzed. These included job losses, widening social inequality, and the rapid spread of misinformation. Some executives discussed whether the cost of retraining workers, whose jobs were altered by AI, would consume too much of the savings created by the technological efficiencies themselves.
In short, AI can easily accelerate scientific discovery. Yet, it also imposes challenges regarding governance, regulation, and the equitable distribution of benefits.
Global challenges
A call for enhanced collaboration was heard throughout the week. During the conference, it was stressed how cooperation is now more than ever needed in the context of security and geopolitics. Global leadership should come together to tackle climate change and the issue of disinformation, as about 4 billion people are going to the polls this year.
However, despite its global importance, there was little talk about the Israel-Hamas conflict. Reasons could be found in the absence of oblivious solutions, or in the fear of starting rhetorical debates hindering the Forum. Moreover, cautiousness was retained to be better for business. This is why only few U.S. executives found the courage to openly speak up about the potential dangers of another Donald Trump presidency.
As for China, the Chinese Premier Li Qiand explained at Davos that his country’s GDP only grew 5.2% in 2023, which means slower than its pre-pandemic growth. China is losing foreign direct investment, while the nation is fighting semiconductor trade with the United States and is increasingly isolated. During the conference, Bremmer, president of Eurasia Group, stated that “China is experiencing very significant structural and economic challenges.” He continued its interview by clarifying that “a lot of companies in the West are no longer investing what they used to invest, and they are certainly not thinking about their growth strategies the way they have.” China’s reduced growth is a sustained challenge. Consequently, the Chinese premier may have felt the need to reach out much more constructively to the private sector.
Lagarde analysis
At Davos, European Central Bank President Christine Lagarde spoke on a Bloomberg panel. She attended a session on the closing day of the World Economic Forum.
Considering the current state of the economy, Lagarde declared that she does not expect a return to “normality” in 2024. She focused on the post-pandemic period, describing it as “strange, extraordinary, and difficult to analyze.” Throughout the last 12 months only consumption, trade, and inflation trends have begun to normalize.
Lagarde explained that consumption is softening, as job markets are becoming less tight, and consumers’ savings are reduced. Trade was disrupted by consumers’ preference for buying services over goods in 2021 and 2022, but last October it eventually began to really pick up. “We had global trade numbers that for the first time in many months were up”, said the ECB President.
Finally, Lagarde remarked on the broad fall in inflation in 2023. She stated that “around the world, inflation is coming down, and we have seen it in November in both headline inflation and core inflation”. Indeed, last December, the ECB decided to hold rates unchanged for the second time in a row. Inflation is now expected to “gradually decline over the course of next year.”
Nevertheless, many uncertainties are present. On the same panel, WTO Director General Ngozi Okonjo-Iwaela noted that making forecasts is “difficult,” given the present geopolitical conflicts, disruption in the Red Sea and elections around the world.
Sources I was inspired by to write this article:
- Davos 2024: 4 things to know, published by Word Economic Forum website
- Takeaways from Davos, published by CNBC
- The Top Takeaways From Davos, published by the New York Times
- Davos Insights: ECB President Lagarde hints at potential rate cuts by the summer, published by Euronews
- Leaders at Davos see a global economy moving toward a new normal, published by CNBC
I am an Italian student who tries every day to improve her English. I really like writing and studying in this language, also to be able to reach more people. However, I still often run into mistakes. Thus, if reading my article you have found some, do not hesitate to contact me, either through a comment or a private note!
