Analysis: what is the significance of the World Economic Forum (WEF) in Davos today?

The 55th edition of the World Economic Forum (WEF) in Davos, the first without its founder Klaus Schwab, took place from 20 to 24 January. Prof. Edoardo Beretta, Professor at the Faculty of Economics at Università della Svizzera italiana (USI), reflected on the significance of the Forum and the issues it dealt with, between the pages of Cooperazione and on the microphones of Radio Ticino.

Although its founder was absent this year, an institution like the WEF, explained Professor Edoardo Beretta, has an importance and relevance that goes beyond the personalities involved. The forum is particularly significant because it provides a privileged opportunity for dialogue: "The WEF is a valuable opportunity for dialogue between international private and public stakeholders in an increasingly interconnected economy and in a world where institutional diplomacy is being undermined. Davos can have an impact, albeit indirectly, in bringing topical economic-political issues to the forefront. The forum provides an opportunity where those with real decision-making power can meet and discuss, without having to rely on press releases or unofficial communication via social media. In a global economy, it is important to be able to look each other in the eye, talk to each other and exchange views," Professor Beretta observed.

Among the topics debated at the WEF was Artificial Intelligence (AI), which, as Professor Beretta stated, can be a valuable aid in the economic arena, but should not be regarded as an oracle. "The title of this year's forum was Collaboration in the Age of Intelligence, from which one can guess that the topic of Artificial Intelligence and the impact of technology was addressed. Among the main themes were also economic fragmentation, think for example of protectionism, and the return to nationalism, i.e. the interest in a national rather than a global economy, in contrast to the prevailing trend until a few years ago," explained the USI professor.

Other key words at the WEF were "resilience", "inclusion" and "cooperation", in apparent contradiction to the numerous conflicts around the world: "It is not wars that generate prosperity, but peace, in which human beings can express their creativity and channel it into further progress. Cooperating together by including other countries benefits everyone, including emerging nations, which show greater resilience in the face of international challenges. One example is China: in 1952 its GDP per capita was $54, in 2023 it was $12,681, almost 24'000% higher" Professor Beretta noted. It is for this very reason that the USI professor emphasised the importance of using events such as those of the Davos forum to promote the de-escalation of conflicts: "We must not allow ourselves to get used to the possibility of armed conflicts between nations because, even if only from an economic point of view, these conflicts are devastating. What is certain is that in the 2024 WEF report, the risks of armed conflict in the next two years ranked fifth, in the 2025 edition they rank first among current risks, surpassing climate risks. While, on a two-year time horizon, they rose to third place. So, this is a very hot topic, and it is important to engage in dialogue to find agreements," Professor Beretta concluded.

The complete interview with Professor Edoardo Beretta, published in Cooperazione, is available at the following link (page 15), while the Radio Ticino interview is available at this link (from minute 25:20).