American Political & Star Power Dominate Davos

At the 2016 World Economic Forum

Once again over 2,500 political and industry leaders, innovators, public figures, and artists, were present in the Swiss town of Davos during the last week of January for the 2016 World Economic Forum. This year’s event was titled ‘Mastering the Fourth Industrial Revolution’ and was about how technological advances are creating a new ‘industrial revolution” in business. Yet aside from the fascinating sessions and speakers, one thing stood out this year: US political power and star power were very evident this year and dominated the buzz around this year’s WEF…

The 2016 World Economic Forum (WEF) brought together some of the world’s most powerful leaders to discuss the most pressing issues of the day. This year’s WEF served as a useful barometer of the world’s trending issues. Yet there was also an added level of excitement in the air as actors Leonardo DiCaprio and Kevin Spacey were among the WEF’s biggest draws, while musician and famed philanthropist, Will.i.am, was honoured, along with DiCaprio on the opening night of the forum to much fanfare.

Leonardo DiCaprio and Will.i.am were the recipients for the 2016 Crystal Awards, presented annually to leading artists who have shown a continued commitment to improve the world. DiCaprio was honoured for his exemplary role in tackling the world’s sustainability problems through his Leonardo DiCaprio Foundation, while Will.i.am was honoured for his continued contribution in the creation of educational opportunities for the underserved. On the continued deterioration of our planet’s climate, DiCaprio remarked “our planet cannot be saved unless we leave fossil fuels in the ground where they belong”. In his opinion, doing so can only be achieved through a concerted effort that moves away from the selfishness of “corporate greed”.

Leonardo-Di-Caprio

On the political side, the American delegation at WEF was headlined by none other than Vice President Joe Biden and Secretary of State John Kerry, who were also accompanied by several high ranking officials such as California congressman Darrell Issa and Delaware senator Christopher Coons, as well as Secretary of Defense Ash Carter.

The four-day conference was also heavily influenced by the huge uncertainty posed by the on-going refugee crisis. With over 60 million displaced people across the world, many recently from war-ravaged Syria, the numerous participating political figures discussed the economic impact that these migrations were having on their economies and societies. Predictably, their presentations drew a variety of responses from others in attendance.

Jordan’s Queen Rania spoke of the continued plight of refugees. She stated that in order for refugees not to be lured by extremists, they “need to have independence and economic self-sufficiency.” She also added that Jordan, along with all of Syria’s neighbouring countries, couldn’t possibly deal with the crisis on their own. Help is needed from European countries as well, through the provision of economic assistance to Syria’s neighbouring countries and the integration of refugees in European economies.

Queen-Rania

Her sentiments were seemingly echoed by John Kerry, who argued that economic assistance to refugees needs a 30 percent increase in funds. Kerry argued that there needs to be an end to continued government corruption, which in turn, breeds “violent extremism, greed, lust for power and sectarian exploitation.” He didn’t consider the issue to be specific to Syria, as it is also felt throughout Libya, Yemen, Iraq, and Ukraine.

International Monetary Fund chief Christine Lagarde attempted to view the situation more positively. Lagarde, while admitting the displacements present a challenge to global economies, stressed that the refugee crisis also has tremendous upside potential, as it provides a “rich source of human capital that can be harnessed with benefits for everyone.”

President of the International Rescue Committee, David Miliband opined that the refugee crisis was not a new one and that serious actions had to be taken by countries throughout the world. The British politician rejected national solutions and instead called for the creation of a European consensus to deal with the crisis. In Miliband’s opinion, the heart of the issue was the creation of an integrated framework that includes “employment, education, and a path to citizenship” for refugees across the continent.

German President Joachim Gauck also stressed the importance of coming to a solution to the refugee crisis in earnest. In his view, “no other problem has jeopardised the EU as much as the refugee question.” Gauck urged fellow European countries to follow Germany’s example of integrating incoming refugees into the economy whilst affirming that the “people who need our protection are allowed to cost us something.”

The rapidly rising technological wave that has caused many to wonder if we are in the midst of a fourth industrial revolution was another issue that was accorded much importance at the WEF. According to Klaus Schwab, the founder and Executive Chairman of WEF, the imminent fourth revolution will be “characterised by a fusion of technologies that is blurring the lines between the physical, digital, and biological spheres.” By and large, political leaders at the 2016 WEF seemed to agree with the professor’s assessment and discussed how the world should prepare and adapt for this transformation.

The popular newly elected Canadian Prime Minister, Justin Trudeau was among the main enthusiasts advocating the positive impact new technologies have on our daily lives. Trudeau stressed that “an equal opportunity approach to new technology must be taken by any leadership,” and affirmed that “people can respond to a positive, inclusive vision of society; we don’t want technology simply because it is dazzling. We want it, create it and support it because it improves people’s lives.”

Justin-Trudeau

Kevin Spacey, the House of Cards star who was attending WEF for the first time, was equally intrigued by the prospect of new technology.  He affirmed that “it’s prudent for anyone in my position and any business to understand the new technologies rising to the fore”. He went on to predict that in the next few years, English-speaking actors will start being recognised throughout the world rather than solely through the starry cities of Los Angeles and New York, as companies such as Netflix have opened up new technological prisms for the entertainment world.

In a special address, Joe Biden affirmed that new technology presents “exciting new choices for consumers,” but warned that some of the unintended consequences of new technologies could present a crushing blow to middle classes across the world.  Biden asked, “how do we ensure wide access to a middle class that is being hollowed out in the 21st century?” before concluding that the possibilities are endless, but ensuring that nw technologies result in a net-gain can only be achieved through human hard work.

Facebook COO Sheryl Sandberg predictably advocated for the positive impact that technology will have on daily lives. Speaking on the role that technology will play, she summarised her current stance as a “triumph of hope over fear.” Sandberg backed up her argument by claiming that technology “doesn’t just create technology jobs. It powers jobs in the non-tech sector” as well.

Other much-discussed topics at this year’s WEF included talks on the future of the global economy in the midst of the Chinese economic downturn and the importance of feminism in any society.  On the future of the Chinese economy, Lagarde emphasized the importance of better communication efforts by the Chinese government to combat investment fears.  She reiterated that, despite a gloomy start to the year, the IMF is forecasting an acceptable 6.5% growth rate for the Chinese economy in 2016.  In talks about the importance of feminism, on the other hand, Trudeau and Sandberg were among the loudest advocates for gender equality. As Trudeau so eloquently put it, “20 years from now, people will look at what we think is acceptable today and find it horrifically off-base.”

In the Middle Easter front, Tammam Salam and Haider Al-Abadi, the Lebanese and Iraqi Prime Ministers, respectively, spoke on the ongoing security struggles faced by countries in the region. On extremism, in a panel featuring Egyptian Grand Mufti Ibrahim Allam, Canterbury Archbishop Justin Welby summed up the continuous infatuation with religious fanaticism, reminding us that “the people who make the most of identification in religious conflict are those who want to manipulate those within the religious communities.” In doing so, these groups are “filling a vacuum left by an alternative narrative.”

Throughout this year’s WEF panels and speeches, the one theme that remained constant was the uncertainty of the world’s socioeconomic future. Considering the number of war-ravaged countries, the changing global climate, and a technologically advanced, yet fragile, global economy, one can’t help but be concerned about the future. While the recognition of a problem and solving it are two different things, having some of the world’s most powerful people vigorously discuss these issues is always the most worthwhile aspect of the WEF. If their actions prove as loud as their words, then the future may not be as uncertain as it seems.