The World Economic Forum (WEF) in Davos has long been known for bringing together the best and brightest from around the world. In short, it is where the elite meet to discuss global issues of economy, technology and politics.
This year, however, the annual gathering in the Swiss Alps stands out starkly against the backlash of anti-globalism currently sweeping the world. In particular, the inauguration of Donald Trump on Friday as President of the United States, which also happened to coincide with WEF’s closing day, was greeted on social media with cheers by those who believe his presidency signals the end of globalisation.
The crowd in Davos was portrayed on numerous fronts as an out-of-touch gathering of rich snobs, fretting over their crepes that the rabble were almost at the gates.
The characterisation, while grossly exaggerated and untrue, has played well to those still struggling after the economic crisis of 2008, but the Davos crowd does need to clean up its act. Their often-promoted goal of global growth through expanding trade has helped the world’s economy, but their lack of focus on the plight of workers and wealth inequality has made them easy scape goats. The very idea of wealth redistribution is an anathema to many who attend the conference.
China’s President Xi Jinping is one of the few who has stepped forward in defence of globalism, reminding the world during a historic Davos speech that many of the world’s ills were not created by globalisation, but by conflict, war, greed and lack of over-sight. More leaders, especially in emerging markets, need to stand up and follow Xi’s lead, especially in light of those countries that are quickly latching on to the fallacy that protectionism is a better alternative.
Trump, who has already been floating the idea of increasing taxes at the US borders, in his inaugural address said that the US will now move forward with an “America first” agenda.
Protectionism is not the answer. If major world economies begin to enact protectionist measures, it will only lead to greater economic turmoil. Just ten years after the last financial crisis, the last thing the world needs is a trade war.
