With uncertainties and chaos clouding relations between countries, the WEF summit in Davos was necessary to discuss the way forward.
The 55th annual World Economic Forum meeting at Davos, Switzerland, concluded last week with representatives from across the world having deliberated on political, economic, technology and climate-related issues. With uncertainties and chaos clouding relations between countries, this summit was necessary to discuss the way forward. Although newly elected US President Donald Trump could not attend the summit physically, he did make an appearance virtually and was still able to stir the pot with his comments.
Trump, who has previously admitted that ‘tariff’ was his favourite word, threatened global elites that if products were not manufactured in the US, they would have to pay high tariffs; however, if manufacturing moves into the US, taxes would be the lowest of any other country in the world. Trump also demanded that oil prices drop all over the world, adding that he would ask Saudi Arabia and other OPEC countries to reduce the price of oil. He proclaimed that if the cost of oil came down, the Russia-Ukraine conflict would end immediately.
While discussing the conflict, Trump said that he soon intends to speak to Russian President Vladimir Putin to swiftly negotiate the end of the war. However, Ukrainian President Zelenskyy has consistently maintained that any deal that would be signed must have a clause which pledges a European contingency of 200,000 peacekeepers.
Yet another example of the extent of Trump’s influence is Iran’s announcement at the Davos Summit that it was willing to renegotiate the nuclear deal. Trump has threatened Tehran with sanctions, and as a result, the Iranian representatives clarified that they had no intention of building a nuclear bomb and would like to move forward with opportunities for growth and collaboration and not threats.
No international summit is complete without discussing energy security, and Davos was no exception. Within China and Europe, there is much push for energy transition. Countries are trying to reduce their dependence on fossil fuels and natural gas. Therefore, Trump’s withdrawal from the Paris Climate Agreement and promise to allow more drilling and fracking on American soil have not entirely changed the energy transition movement. However, the burden of such actions will be borne collectively.
While a first-world country like the US has shifted its focus away from clean energy, countries from the Global South like India and China are working towards bringing green energy to the mainstream. Chinese companies like Envision Energy and LONGi Green Energy attended the meeting to promote infrastructural solutions to achieve clean energy. These are among various companies promoting global net zero emissions and providing models that enable green and low carbon energy transitions. India also witnessed a 40% increase in clean energy investments. New Delhi is promoting 2025 as the year of nuclear energy, which is a source of clean and secure energy.
There was also much deliberation on technological advancements, particularly about artificial intelligence (AI). Policymakers discussed the need for infrastructure required to construct and maintain huge data centres. While the US is currently ahead of other countries in their AI capabilities, emphasis was laid on ensuring more tech-friendly policies will be implemented. Along with policies, there is also a need to pump more investments to build the infrastructure necessary to maintain large-scale and complex AI models. The role and the growing prominence of artificial intelligence could not be ignored at the Davos Summit, as this year a large number of technology firms were present and were actively advertising and promoting their products.
However, the optimism surrounding AI was not without criticism. UN Secretary-General António Guterres flagged the threat of unchecked AI expansion. He called on world leaders to collaborate to work towards responsible AI governance. Pope Francis, who was also in attendance, said that “AI could fuel the global crisis of truth.” He pressed for the leaders to be more cautious about the ethics, safety and broader societal implications of AI.
The World Economic Forum Summit is an important platform to push for international cooperation and collaboration on transnational issues. While attempts are made to find solutions to traditional security threats such as geopolitics and economic upheavals, Davos is a far more effective summit to bring together public and private partnerships to work together on more non-traditional security threats such as food security, climate crisis, technological and nuclear capabilities.
