By /The Conversation/ – The 51st World Economic Forum starts on January 25, but with a major difference. Whereas this is famously the annual gathering at the Davos ski resort in Switzerland of global leaders from business, government and civil society, this year’s event will take place virtually because of the pandemic.
Inevitably, the event for the 1,200-plus delegates from 60 countries aims to respond to the apocalyptic events of the past 12 months. “A crucial year to rebuild trust” is the theme, built around the “great reset” that World Economic Forum (WEF) founder Klaus Schwab and Prince Charles launched last year.
The event will be accompanied by virtual events in 430 cities across the world, to emphasise the fact that we face global challenges that require global solutions and action.
This recognises that the effects of the pandemic are likely to be increasingly compounded by other major global threats, including the climate crisis, financial crises, and social and economic inequality. To give just one example, the COVID-19 mortality rate in England in December was over twice as high in the most deprived areas than the least deprived.
So how successful is the WEF’s mission likely to be?
Lessons from history
This is not the first time that global crises have required global action, but there have been mixed results in the past. After the first world war, the UK played a pivotal role in forming the League of Nations on the international stage. But this ultimately failed to deliver, with the UK’s insistence on post-war reparations undermining Germany’s economic recovery and political stability.
When the world next sought to prevent future conflicts towards the end of the second world war, the lessons were to some extent learned from last time around. The allies met at Bretton Woods, New Hampshire, in the US in 1944 to develop policies for economic stability.
This led to a new system of interlinked exchange rates organised around a gold-backed US dollar, as well as new institutions to help manage it, including the International Monetary Fund and what later became the World Bank. This was followed in the next couple of years by the United Nations and the forerunner to the World Trade Organization. The Bretton Woods system endured until the early 1970s when the US came off the gold standard, but much of the system created in the 1940s survives in one form or another today.
The 2007-09 financial crisis, which involved the first global recession since the 1930s, led to many calls for action to prevent similar crises in future. There was some tightening of regulation, but the threat of instability remains due to excessive debts and too much speculation.
With only the 1940s seeing a really adequate response to global crises, what will make the difference this time?
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