Economic recession, climate change and hunger, key issues at Davos 2023 Forum
The past year has seen a number of unfavourable developments, such as the Russian-Ukrainian war and the trade war between the United States and China. As a result, the Old Continent is increasingly concerned about its energy security, while millions of people are thinking about food security. The world we live in is increasingly ravaged by war, hunger and poverty. Political and other leaders are meeting at the World Economic Forum (WEF) in Davos from 16-20 January to discuss the issues and suggest solutions. However, experts doubt that action will be taken.
The outlook is particularly pessimistic for Europe, where all respondents expect "weak or very weak" economic growth this year, falling to 91% for the United States, 68% for Latin America and 48% for China. Moreover, the outlook for the future is not good. In addition to "severe food insecurity", which has doubled in value since 2019, there are "economic difficulties in the coming months, as high inflation, low growth and high indebtedness threaten employment and businesses". At the same time, the rising cost of living crisis is pushing millions of people around the globe into poverty.
The IMF forecasts a major economic slowdown by 2023. As a result, there are a number of economic concerns. Governments, and even financial institutions, need help to address these problems. In short, the future does not look bright. Moreover, the other side of the coin is no brighter. The world economic order is going through turbulent times. China's rise to the top of the world's influence produces mixed feelings. The vision of a globalised world is fading by the minute. Hence, the WEF calls for a debate on the future of globalisation, trade, growth and investment, with a focus on sustainability and resilience.
The Forum will also explore future monetary and industrial policies, including cryptocurrencies. Climate change is another issue of major concern. Global temperatures are rising and the world is already witnessing natural disasters. Pakistan suffered severe flooding; Tuvalu is threatened by high tides and is likely to become uninhabitable soon; and drought is generally plaguing the vast majority of nations. The WEF puts climate change at the top of its agenda, with meetings covering climate finance, decarbonisation and climate-related issues such as water supply and food security.
Given the importance of energy for security and the environment, the WEF will explore energy-related issues such as energy resilience, affordability, sustainability, zero-energy technologies and energy transition. Meanwhile, the importance of business in addressing global crises is more evident than ever. With the Covid-19 pandemic, and especially vaccine manufacturing, the business sector highlighted its importance. Thus, the WEF addresses business and investment issues from many angles. Discussing problems and suggesting solutions is "simple". The real challenge is to assign responsibilities and turn plans into concrete actions.
Last year, the powerlessness of the international community became clear. The United Nations (UN) Security Council failed to pass a resolution on Russia's invasion of Ukraine. The highest UN delegations were paralysed until Turkey spearheaded a grain deal to address the worsening food crisis. Meanwhile, several member countries, including the United States, initiated questionable trade restrictions, which fly in the face of World Trade Organisation rulings, amid general indolence. The Forum has no power to make decisions; it can only influence them.
Nevertheless, the WEF remains important because it serves as a stage for critical debates by reputable personalities who draw attention to important issues. However, in the midst of this negative context, there are some points of optimism. For example, negotiations on a new WTO Agreement on Investment Facilitation for Development are expected to be concluded this year. The launch of a coalition of Trade Ministers for Climate is also on this year's agenda. It is clear that it is at the crossroads of a new world order.