The World Economic Forum (WEF) is an influential annual gathering of global leaders from various fields, including business, politics, and civil society. The event, taking place in Davos, Switzerland, runs from January 20 to 24, 2025, drawing prominent figures such as the European Commission President Ursula von der Leyen and China’s Vice Premier Ding Xuexiang, among others. The forum serves as a platform for addressing major global issues, from geopolitical tensions to technological advancements.
One of the key highlights of this year’s meeting is India’s delegation, led by Union Minister Ashwini Vaishnaw. Key political figures from India, including Maharashtra Chief Minister Devendra Fadnavis, Telangana Chief Minister K. Chandrashekar Rao, and Andhra Pradesh Chief Minister Chandrababu Naidu, are also expected to participate. They will discuss pressing issues such as inclusive growth, investment in social and physical infrastructure, and democratizing technology. Minister Vaishnaw emphasized the importance of this inclusive development for the progress of nations.
The WEF began as an idea conceived by Professor Klaus Schwab, a German engineer and public administration expert. He founded the European Management Forum in 1971, which would later be known as the World Economic Forum. Schwab’s vision revolved around the concept of “stakeholder capitalism”, which implies that a business must serve the needs of all its stakeholders, including employees, suppliers, and the community, rather than only focusing on shareholders.
How Did the World Economic Forum Come into Existence?
The inception of the World Economic Forum traces back to the 1970s when Klaus Schwab was seeking to enhance the management skills of European companies, which were lagging behind their American counterparts. Initially focused on improving European business practices, the forum expanded in scope to discuss broader socio-economic issues after global events such as the 1973 collapse of the Bretton Woods system and the Arab-Israeli War. The event also moved towards a more global perspective and began to address larger challenges confronting economies worldwide.
In 1973, just a couple of years after the Forum’s establishment, Schwab’s group welcomed the first 1,000 leading global companies as members. This milestone illustrated the growing influence of the Forum in shaping the discourse surrounding global economics and geopolitics. The major turning point in the Forum’s global approach occurred in 1979, when the organization entered into a partnership with China’s economic development commissions, coinciding with the same year the US and China established diplomatic ties.
What Makes the WEF a Hub for Global Discourse?
Davos is no longer just a niche gathering for corporate leaders; it now represents a comprehensive international summit with a remarkable mix of investors, political figures, economists, celebrities, and journalists. Every year, more than 3,000 participants, including global influencers and thought leaders, come together to discuss the pressing issues facing the world. As the scope of the Forum broadened over time, so did the topics discussed. For instance, major issues addressed in past summits included Artificial Intelligence, climate change, and the global geopolitical uncertainties brought about by ongoing conflicts and power dynamics.
A significant portion of the discussions revolve around technology’s role in social change, as well as sustainability challenges. Last year’s meeting highlighted how emerging technologies are rapidly reshaping industries and governments. As the digital landscape continuously evolves, the WEF has become the perfect arena for decision-makers to gauge their stances on topics such as technological innovations, environmental sustainability, and global governance challenges.
How is the World Economic Forum Funded?
The funding of the World Economic Forum is predominantly sourced from its partnering corporations, which include global companies with annual turnovers greater than $5 billion. These companies are pivotal to the functioning of the Forum, and their support ensures the continued success and expansion of its global impact. Through this association, multinational corporations gain the opportunity to present their ideas, policy stances, and innovations on the global stage.
Historically, the WEF’s funding model has provided it with a stable base of support. The WEF is careful to maintain its non-governmental status, allowing it to steer conversations on international challenges without interference from individual governments. This positioning enables the WEF to engage with global corporate elites and government leaders, along with representatives from civil society, who are collectively shaping the future of commerce, technology, and climate policy.
Why Did the G20 Concept Emerge from the WEF?
In 1998, amid concerns over the increasing division between the developed and developing worlds, the World Economic Forum took a major step in broadening the inclusion of non-Western economies. It was suggested that the forum needs to address not just global business elites but also major developing countries to better include the interests of the Global South. This foresaw the eventual creation of the Group of Twenty (G20), which would later emerge in 1999 as a platform for addressing global economic concerns, representing both developed and emerging economies.
The formation of the G20 was an effort to create a more inclusive platform where the world’s largest economies—whether developed or developing—could cooperate to address financial crises, trade issues, and economic development challenges. The 1998 WEF meeting emphasized the balance of global power between countries like the US, the EU, China, India, Brazil, and South Africa. Subsequently, the G20 summit held in Bonn sought to promote inclusive dialogue, heralding the beginnings of a unified global approach to cross-border economic challenges.
How Does the WEF Engage With Global Issues Today?
Each year, the WEF Annual Meeting takes place in Davos, where it unites thought leaders, business executives, and political heads to deliberate on the major challenges facing humanity. The forum serves as an important convening point for critical dialogues ranging from financial stability, social mobility, economic equity, and technological governance.
In the current phase of global uncertainty, WEF’s agenda focuses not only on political and social challenges but also addresses environmental sustainability in the context of the climate crisis. International calls for urgent action are now louder than ever, with global leaders recognizing the need for collaboration to make strides in reducing carbon footprints, transitioning to sustainable practices, and creating technological innovations that push us toward a more sustainable future.
Key themes have also evolved in line with shifting political dynamics and economic trends. At the heart of discussions this year will likely be the transformation of the global digital infrastructure, as governments and businesses alike realize the transformative potential of digital solutions. Much of this discourse centers around democratizing technology, ensuring it is used for the benefit of all, including marginalized communities, and advocating for inclusive growth.
What Does the WEF Mean for India and Its Global Role?
India’s presence in the World Economic Forum speaks volumes about its growing role in global politics and economic leadership. The presence of key Indian political leaders, including Union Minister Ashwini Vaishnaw, alongside prominent businessmen from firms like Tata Consultancy Services (TCS) and Infosys, underscores India’s significant impact on the global stage.
As a large emerging economy, India stands at the crossroads of diverse challenges, including economic development, technological empowerment, and environmental sustainability. Minister Vaishnaw’s focus on infrastructure investment further aligns India’s vision with that of the broader WEF agenda. This alignment shows India’s commitment to sustainable growth and inclusive development, which will resonate with WEF stakeholders focused on global cooperation and long-term investments.
What Are the Criticisms of the WEF?
While the World Economic Forum brings together influential global actors, it is not without criticism. Detractors argue that the event remains an exclusive platform primarily for the global elite. Despite its calls for inclusive growth and multilateral cooperation, the high cost of participation and the gathering’s overall focus on the interests of large corporations is seen by some as a barrier to true change. Critics contend that discussions in Davos sometimes overlook the urgent voices of marginalized communities and developing nations.
The lack of concrete outcomes from many of the past forums has led some to question the true effectiveness of the event. While it creates a platform for discourse, action on some issues tends to be limited, leaving many questions about the impact of these meetings on tangible outcomes.
As the Forum continues to evolve, both support and criticism will likely persist. However, its ability to convene leaders from across the globe remains undiminished. The WEF continues to be a touchstone for evaluating how global networks of power and influence can coordinate and address issues of critical importance for future generations.