What's New :
Gist of ECONOMY SURVEY 2022-2023 Download PDF
Summary and Analysis of Union Budget 2023-2024 Download PDF

World economic forum

  • Category
    Economy
  • Published
    30th May, 2022

Overview:

  • Background
  • WEF and its role
  • Theme: 2022
  • Key Takeaways
  • India and WEF
  • Reports

Context

Nearly 100 CEOs and over a dozen government leaders are attending the rare springtime annual meeting of World Economic Forum (WEF).

Indian contingent are attaining the meeting to share the story of fighting pandemic and attract more investments.

Background

  • It was established in 1971 as a not-for-profit foundation and is headquartered in Geneva, Switzerland.
  • It is independent, impartial and not tied to any special interests.
  • Formerly known as European Management Forum, in 1987 the name was changed to World Economic Forum.
  • This meeting was held under the European Commission and European industrial associations to introduce the European firms to American management practices.
  • Later, Klaus Schwab founded the World Economic Fund as a nonprofit organization and conducted the annual meetings to draw European business leaders to Davos.
  • Recent geopolitical dynamics and health emergencies imposed the centrality of shared values to work together and restore trust among the nations.
  • From supply chain resilience infrastructure to vaccine equitable policy, WEF annual meeting of WEF has involved various stakeholders to curb the potential threats and attain the targets of SDGs.

Analysis

World economic forum and its role:

  • The world economic forum is the international organization for public-private cooperation.
  • The forum engages the foremost political, business, cultural and other leaders of society to shape global, regional and industrial agendas.
  • The forum strives in all its efforts to demonstrate entrepreneurship in the global public interest while upholding the highest standards of governance. Moral and intellectual integrity is the prime objective of its every actions.
  • Activities of the forum are shaped by a unique institutional culture founded on the stakeholder theory, which asserts that an organization is accountable to all parts of society.
  • The institution carefully blends and balances the best of many kinds of organizations, from both public and private sectors, international organizations and academic institutions.

Theme and key agendas of 2022

  • Working together and restoring trust:
    • Under the theme, ‘working together and restoring trust’, the annual meeting of world economic forum is taking place at the most consequential geopolitical and geo-economic moment of the past three decades and against the backdrop of a once-in-a-century pandemic.
  • Other highlighted agendas:
    • Climate and nature
    • Fairer economies
    • Tech and innovation
    • Jobs and skills
    • Better business
    • Health and health care
    • Global cooperation
    • Society and equity
  • Other key dimensions which will dominate the five-day events are crypto currencies, role of multilateralism and rising costs across the world.

Key highlights of the meeting:

  • Addressing urgent humanitarian and security challenges as they simultaneously advance long-standing economic, environmental and societal priorities – all while reinforcing the foundations of a stable global system.
  • Clarity of vision and unity of purpose will be crucial for making progress against the unprecedented complexity of a multipolar world.
  • The focus is on setting strategies for impact, building new frontiers, creating viable future scenarios and providing ambitious solutions to the world's biggest issues.
  • Pandemic response: while confronting the ongoing pandemic, vaccine and vaccine equity gained the significant highlight to end the pandemic.
  • Economic recovery:the economy was also front and centre during discussions at Davos agenda 2022, with world leaders commenting on the impact of the pandemic on economies and the ongoing efforts toward recovery.
  • Climate action: building on the momentum from cop26, speakers at 2022 Davos agenda argued for the need for climate action in no uncertain terms.
  • Technological innovation: the covid-19 pandemic accelerated many of the digital transformations of the fourth industrial revolution across industries, a trend that will continue in the year ahead. At Davos agenda 2022, has underlined the key role of technology and were optimistic about the potential for tech to help address global problems.
  • Global collaboration: underpinning all the conversations at the Davos agenda 2022 was the power of global collaboration, which involves stakeholders from the public, private and civil societies.

India and world economic forum:

  • This year, with the world economic forum’s 50th anniversary India is also celebrating its 35 years of collaboration with the forum, providing an opportunity for India to showcase its unified presence.
  • World economic forum could provide a potential platform to project India as an important and relevant stakeholder in shaping global initiative.Also as an attractive destination in view of its robust economic growth and stable macroeconomic indicators.
  • To mark 75years of independence, ‘AzaadikaAmritMahotsav’, DPIIT has taken initiative to have a consolidated presence at WEF, 2022.

Reports by world economic forum and India’s status:

  1. Energy transition index:India ranked at 87th position out of 110 countries.
  2. Global competitiveness report: India is standing at 68th position in global competitiveness report, 2019.
  3. Global gender gap report: India ranked at 140th place out 156 countries
  4. Global risk report: India has ranked 7th position
  5. Global travel and tourism report: India has been placed at 54th

Conclusion

The philosophy of collective action has endured for more than 50 years and it has never been more needed than now. The meeting is the starting point for a new era of global responsibility and cooperation.Over the past two years, the WEF has strengthened its impact initiatives, which deal with issues ranging from COVID-19 and climate change to education as well as technology and energy governance.

Q1. Discuss the key constraints in attracting foreign investors to India? What are the recent initiatives taken by the government to increase the inflow of foreign investment in the country? Examine. 

Q2.FDI is crucial for India to realise its goal of $5 trillion economy but it is not the sole solution for its socio-economic issues. Comment.

X

Verifying, please be patient.

Enquire Now