WORLD ECONOMIC FORUM 2023

3. World Economic Forum(WEF)

• The World Economic Forum (WEF) is a Swiss nonprofit foundation established in 1971, based in Geneva, Switzerland. Recognized by the swiss authorities as the international institution for public-private cooperation.
• The mission of WEF is committed to improving the state of the world by engaging businesses, political academics. and other leaders of society to shape global, regional, and industrial agendas.

4. Key takeaways from WEF Davos 2023

4.1 On Economy

• Most business leaders were upbeat about the economy, with the US and the European Union (EU) seemingly beyond the risk of a recession. China ending its zero Covid curbs and opening a shop again added to the positive outlook. 
• However, central banks of the major economies cautioned that concerns remained, and said they would keep interest rates high to ensure inflation is under check.
• Many also pointed out that China opening up could mean a rise in its energy consumption, thereby driving up energy prices.
• Also, as richer nations focus on protecting their workers, energy sufficiency, supply lines, etc., concerns were raised that this policy direction would hit developing economies.

4.2 On Ukraine

4.3 On Climate Change

• The World Economic Forum, supported by more than 45 partners launched the Giving to amplify Earth Action (GAEA).
• It is a global initiative to fund and grow new and existing public, private, and philanthropic partnerships (PPPPs) to help unlock the $3 trillion of financing needed each year to reach net Zero, reverse nature loss and restore biodiversity by 2050.
• It is time for richer countries and corporates to put in more money to fight climate change.
• EU raised concern over a US green energy law that benefits products like electric vehicles made in America.

4.4 On Trade

• Caution on friendshoring was highlighted at the meeting. Friendshoring is a strategy where a country sources raw materials, components, and even manufactured goods from countries that share its values.
• The dependence on the countries considered a threat to the stability of the supply chains has slowly reduced.

4.5 New Projects Launched

• Maharashtra Institution for Transformation (MITRA) signed a partnership with the forum on urban transformation to give the state government “strategic and technical direction”.
• A thematic center on healthcare and life sciences is to be set up in Telangana.
• Global Collaboration village: It was launched by WEF in collaboration with Accenture and Microsoft as the first global, purpose-driven metaverse platform to create a new virtual space for strengthening international cooperation.
• A coalition of Trade Ministers on Climate: It brings together countries to boost international cooperation on climate, trade, and sustainable development. It is currently co-led by the trade ministers of Ecuador, the European Union, Kenya, and New Zealand and so far consists of ministers from 27 jurisdictions.
• Coalition for Epidemic Preparedness and Innovations (CEPI): It set a new 100-day goal for pandemic response. CEPI was launched in 2017 by the governments of Norway and India, the Bill & Melinda Gates Foundation, and the World Economic Forum to accelerate the development of vaccines and other biological countermeasures against the pandemic.

For Prelims