Founder and Executive Chairman of the World Economic Forum Klaus Schwab speaks during the last panel session of the 43rd Annual Meeting of the World Economic Forum (WEF), in Davos, Switzerland. (EPA)
Q: This year’s Annual Meeting is held under the theme of Resilient Dynamism. What is the main idea behind this title?
A: We face a new reality. For organizations from any area of society – business, government, academia or civil society – resilient dynamism is the “new normal”.
To be resilient is to possess the ability to adapt to changing contexts, to withstand sudden shocks and to recover from them while still pursuing critical goals. In government, for example, it means building institutions that are capable of withstanding external shocks while also finding ways of stimulating the economy. In business, it means protecting the organization from foreseeable risk that could arise, such as corruption, climate change or a lack of qualified personnel while allowing it to keep on investing and growing its business.
The other new reality we face is a prolonged global economic malaise, particularly in major economies experiencing economic austerity. Future growth in this new context requires dynamism – bold vision and even bolder action. Either attribute – resilience or dynamism – alone is insufficient as leadership in 2013 will require both, thus the theme of Resilient Dynamism.
Q: With so much uncertainty surrounding us, from the political and economic to social factors, how can a country or company maintain its dynamism while maintaining its security?
A: It is no longer enough for a country or a company to “manage” risk. Organizations need to constantly adapt to live with it, so that through greater resilience they can still invest, take risks, innovate. This is exactly what we need if the world is to move onto a sustainable growth path.
Q: What are your main priorities for this year’s Meeting?
A: I have three personal priorities for the Annual Meeting in 2013. Firstly, I would like to see renewed optimism in global affairs, and this very much ties in with this year’s theme of Resilient Dynamism. Secondly, I would like to see a return to globalism. There is a fatigue setting in around globalism, and even possibly a backlash around the ability of globalism to address our most serious challenges. But I believe that taking a global approach is more essential than ever as our world becomes more hyperconnected and interdependent. We need to restore a sense of global trusteeship. Lastly, I would like to see a greater sense of civic-mindedness coming out of Davos; we all need to take a greater sense of responsibility and moral accountability for our actions.
Q: Which world leaders do you look forward to receiving at the Meeting?
A: There will be quite a few leaders among the participants, some of whom I have had the pleasure of knowing for many years and some of whom, I’m excited to say, I will be meeting for the first time. Surely, I’m looking forward to meet again with H.M. King Abdullah II Ibn Al Hussain, King of Jordan, Prince Turki Al Faisal, Prince of the Saudi Royal Family and surely Sheikh Hamad bin Khalifa Al Thani, Emir of Qatar. Fortunately, we can also welcome the prime ministers of Libya, Morocco, Egypt and Tunisia to the Annual Meeting.
However, most important, I believe, is the right mix we have at our Annual Meeting in Davos. The Forum was founded as a multistakeholder platform and we have been successful in bringing participants from all areas of society – business, government, academia or civil society – to Davos. This is the strength of Davos and the source for many inspiring meetings and encounters.
Q: Many fear that 2013 will bring a new downturn of the economy. Do you share this concern?
A: I am more optimistic about the immediate future of the world economy than most. Europe will survive as a political and economic entity, and even get stronger eventually through a banking and fiscal union. The United States will regain its growth momentum if the political camps can work together. China will remain on a positive course, and emerging markets will continue to drive growth. What is important is that the world economy grows in the right way; that growth is sustainable from an economic and environment viewpoint and that it is equitable. Unemployment is one of the gravest challenges of our times and it is important that leaders address this with the utmost urgency.
Q: You have spoken previously about the urgency to address people’s needs to avoid confrontation and riots, such as those that we have seen in Europe and beyond. And yet, widening wealth gaps and rising unemployment continue to isolate the “have-nots”. How can this challenge be addressed?
A: I still see this as one of the most urgent issues we face today. The Forum’s Global Risks 2013report,which was published a few days ago, outlines in no uncertain terms that the growing inequality between rich and poor is one of the most pressing matters we have to deal with if we want to move on to a path of sustainable growth. The multi-stakeholder concept that I developed almost 40 years ago has lost none of its relevance and the Forum tries to exemplify this by including any area of society – business, government, academia and civil society.
Q: Some still see the World Economic Forum as the Forum for the privileged and serving their interests. How do you respond to them?
A: Yes, there still are, and there always will be, these voices. Let me give you an example. A Swiss tabloid wrote the other day that the Forum had become boring because there will be fewer parties in Davos outside the official program this year. Well, that is exactly what I want: fewer parties, more serious work and discussion.
But you are right: Davos is for global decision makers to meet and to improve the state of the world.
Q: What are the main opportunities you see for the Middle East?
A: 2013 will be a challenging but also promising year for the Middle East. We are only two years away from the uprisings in many countries of the region. It is now the responsibility of the region’s leaders in politics and business to drive positive outcomes for their economies in transition. Meaningful employment, especially for young people and women, home-grown entrepreneurship and investment in infrastructure will be necessary to succeed in a changing geopolitical framework.
Q: Two years ago, Annual Meeting participants were following the developments of the revolutions in Egypt and Tunisia. How were you following the news of those revolutions despite your busy schedule during the Annual Meeting?
A: I would like to turn the question around. How could I not follow the events in the Arab world and North Africa? The uprisings were the foremost global event and, of course, everybody talked about it.
In the wake of the Arab Spring, the region is undergoing a fundamental socio-political transformation, the outcomes of which are still uncertain. It is not yet clear whether the region will move towards greater democracy and pluralism or whether regional intercommunal rivalries and tension will worsen further. Many countries are introducing important reforms, addressing some of the socio-economic gaps that partly drove the 2011 uprisings, such as youth unemployment, transparency and accountability deficits.
Q: This year, participants from the region will be thinking of the ongoing crisis in Syria and fear of war spreading in the region. Do you see a possible outcome that can bring peace to Syria?
A: The international community is fully committed to ending the atrocities and moving to a more peaceful and prosperous future for Syria as soon as possible. This is aptly reflected in the proceedings of this year’s Annual Meeting, which not only will provide a timely neutral platform for Syrian, regional and international stakeholders at the highest level to determine ways to stop the conflict but also to address scenarios for the political, economic and social reconstruction of Syria. The World Economic Forum hopes for a future in Syria that is peaceful and inclusive, and that represents the aspirations of the Syrian people.
Q: You have worked at involving younger generations in the meetings and workings of the World Economic Forum through the Young Global Leaders and Global Shapers. What can young people add to current global conversations about challenges in politics, economy and society when even the most seasoned politicians and academics struggle with them?
A: Young people are greatly under-represented in global affairs despite making up 50% of the world’s population. As innovators, digital natives and those most impacted by today’s policy decisions, they deserve a seat at the table. The World Economic Forum is helping exceptional young people to give back locally, take action on issues they care about, and positively disrupt global policy discussions. The Global Shapers embody the “community of the future”, bringing together empowered youth in a community that is diverse, decentralized and digitally hyperconnected.
Q: What was your most memorable “Davos moment”?
A: Many people see Davos as a place to do business. And they are right. But more importantly, the meeting is a laboratory for ideas. People come here to be challenged, to think about and discuss issues with people they may not get to meet in their normal working environment. This is the spirit of Davos. To see that spirit rekindled for the 43rd time since the founding of the World Economic Forum is the greatest moment of all.