Publications /
Opinion

Back
The Tribe of Davos Globalists Feels the Downturn of Globalization
Authors
January 23, 2024

The annual World Economic Forum took place in Davos, Switzerland, from January 15-19. Every year for 54 years, a global business elite has traveled there, whether to interact with customers and suppliers, with intellectual leaders on broad topics or, in an informal environment, with the representatives of governments and multilateral authorities who attend.

Nothing is deliberated, of course, but over time the forum has established a reputation as a stage from which announcements are made and better cross-knowledge of the opinions of key people on hot topics can be obtained.

I personally had the opportunity to see this at the forum in January 2003, when I was a member of the Brazilian government delegation. At that moment, there was enormous and widespread interest in knowing what the first Lula government would be like. Rarely in my life have I seen such a large group of world-renowned economists sitting in a room to listen to the then-newly appointed Minister of Finance, Antônio Palocci, and President of the Central Bank, Henrique Meirelles, talk about their policy plans. Lula also received a huge spotlight at the event. The forum clearly served to satisfy this type of curiosity.

Xi Jinping, president of China, for example, knew how to use Davos well to defend globalization and free trade in 2017. China managed to climb the per-capita income ladder by taking advantage of globalization and, at that moment, it began to have to deal with the anti-Chinese attitude taken by the then Trump Administration. There could not be a better stage for delivering his message.

This year the official motto was ‘rebuilding trust’. It is no coincidence that geopolitical risks dominated discussions, from the wars in Gaza and Ukraine, to the possible consequences of Trump’s return to the White House after this year’s American elections. This was despite some kind of optimism that could have been generated by the favorable surprises in the global economy in 2023, after the predictions made at last year’s forum, when the dominant view—later contradicted—was that the global economy would go through strong deceleration. The need for more ‘trust’ and cooperation to mitigate global risks was the motto.

In January 2003, there was also the shadow of geopolitics. The possibility of an invasion of Iraq—which happened two months after the event—was the subject of discussions. The memory of September 11, 2001, was also fresh enough to appear in discussions. But the fact is that the predominance of the economic globalization agenda was then crystal clear.

Not this year. The 2024 Global Risks Report proposed by the Forum highlighted 10 main risks for the next 10 years. Five of these refer to environmental issues:

1- Extreme weather events;

2- Critical change in Earth systems;

3- Loss of biodiversity and ecosystem collapse;

4- Scarcity of natural resources; and

5- Pollution.

 

The report remarks that such environmental risks can exceed points of no return (‘tipping points’). In addition, the report highlights growing political polarization, technological risks with artificial intelligence evolving beyond the reach of regulatory controls, and new security risks accompanying the rise in geopolitical tensions. These themes predominated, at least judging by the open online sessions that I attended.

The Davos Forum is a giant in-person networking opportunity. The ebb during the pandemic hasn’t changed that. But something seems to have changed regarding what political scientist Samuel Huntington described in 2004 as a tribe, a global elite with “little need for national loyalty, [...] seeing national borders as obstacles that are fortunately disappearing and national governments as residues of the past. In other words, he described men – and – women of Davos as a tribe of “globalists”.

The Davos Forum is so identified with the expansion and strengthening of globalization in the decades in which it flourished, that it could not emerge unscathed from globalization’s partial retrenchment in recent times. Fears about deglobalization must have been predominant.

It is still paradoxical that, in addition to the smaller presence of globally significant public authorities compared to previous forums, the event had a speech by the new president of Argentina, Javier Milei, in which he warned the men and women of Davos about the risks of being captured by a worldview that “leads to socialism and, consequently, poverty”. Milei sounded how many far-right people have characterized … the ‘globalists’, like the people who attend the World Economic Forum at Davos. It must have been odd for Davos globalists to receive such a message.

RELATED CONTENT

  • Authors
    August 6, 2018
    The IMF released last July 24 its latest assessments of the current account balances for the 30 largest economies in its External Sector Report 2018 (ESR). There was no major change in 2017 relative to previous years and the reconfiguration of surpluses and deficits that has prevailed since 2013 was essentially extended. However, there are reasons to expect more abrupt alterations ahead, as the U.S. fiscal easing under high employment conditions unfolds. Given the context of ongoing ...
  • August 1, 2018
    “This article has been originally published in 'Morocco in Focus 2018,' the magazine of the Moroccan Embassy in New Delhi, India on the occasion of the Morocco National Day 2018.” Introduction In an article published last year, the author stressed the role of partnership between Morocco and India for the inclusive growth of small farmers. There is no doubt that agriculture remains a major instrument for human development both in India and in Africa. Several international reports h ...
  • Authors
    August 1, 2018
    “A WAKE UP CALL FOR THE WORLD” For Simon Elin, chief executive of the British Recycling Association, it’s “a tough time” his industry and country are facing just now. He does not think about Brexit, Britain trying to leave the E.U., dreaming to return to glorious times as a world power, one day soon. His colleague Arnaud Brunet, head of the Bureau of International Recycling, predicted “catastrophic environmental problems.” An assessment the London Times shared: “The world is drowni ...
  • Authors
    François Gaulme
    July 20, 2018
    Cette note vise à mettre en lumière le cycle d’ajustement à la fois financier, économique et politique affectant deux pétro-États d’Afrique centrale, le Gabon et la République du Congo (Congo-Brazzaville). Unis par leur système économique de rente et leur histoire coloniale commune, ces deux pays n’en ont pas moins connu des destins politiques différents après leur indépendance, le premier conservant une relation privilégiée avec la France tandis que le second optait rapidement pour ...
  • Authors
    July 10, 2018
    Historians often offer different interpretations of the events that have shaped our destiny, yet, with respect to World War 2, the bloodiest conflict in history, they seem to concur on two points. First, that those yearning for peace underestimated the National Socialists’ determination to wage a war of conquest until it was far too late to deter them, and, second, that Nazi Germany failed to anticipate that Britain, the United States, and the Soviet Union – each of which it provok ...
  • Authors
    July 3, 2018
    The addition of a fourth US rate rise to the Federal Reserve’s 2018 dot-plot graph after the June meeting of the Federal Open Market Committee sparked a bout of portfolio outflows from emerging markets. This followed a fleeting upswing at the beginning of the month that fell short on reversing the unwinding of exposure and sell-off of assets in May (Chart 1). Country differentiation has been accentuated, with exchange rate devaluation pressures and capital outflows occurring more no ...
  • June 13, 2018
    From cryptocurrencies to blockchain to mobile money, financial technology or “fintech” is revolutionizing the basic structures of the global economy. Financial services delivered through ...
  • Authors
    June 6, 2018
    The spike in US bond yields since mid-April in tandem with the strengthening of the dollar sparked a retrenchment of capital flows to emerging markets (EM), accompanied by a sell-off of assets in some cases. Argentina and Turkey suffered from strong and potentially disruptive exchange rate depreciation pressures in May, with financial markets calming down only after bold domestic policy moves (interest rate hikes in both countries and, in the case of Argentina, a decision to seek a ...
  • May 31, 2018
    Avec la refonte des relations entre l’Union Européenne et les pays ACP (Afrique, Caraïbes et Pacifique), prévue pour février 2020, il devient urgent de repenser le cadre du partenariat entre l’Europe et l’Afrique et de proposer des éléments de refondation d’un vouloir vivre collectif. Priorité éducative, création d’emplois pour les jeunes via le développement territorial, promotion des partenariats publicprivé dans les infrastructures, comptent parmi les leviers d’actions possibles. ...
  • Authors
    May 31, 2018
    Salutations Thank you for the invitation to address the 2018 Africa Think Tank Summit  in this memorable city of Rabat. I thank in particular, the OCP Policy Center and the Think Tank and Civil Societies Program of the University of Pennsylvania for hosting the Summit with the theme “Deepening Expertise and Enhancing Sustainability: Insight into Contemporary Challenges Facing African Think Tanks”. Rabat, Morocco has been the sprouting ground of numerous agenda-setting instruments ...