Davos Dialogue: Key Takeaways from the 2021 Davos Agenda Meetings

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KEY TAKEWAYS FROM THE 2021 DAVOS AGENDA MEETINGS

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KEY TAKEAWAYS FROM THE 2021 DAVOS AGENDA A SPECIAL REPORT BY WINONA ROYLANCE, AUTHOR ANA C. ROLD, EDITOR

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DAY 1 DESIGNING SUSTAINABLE AND RESILIENT ECONOMIC SYSTEMS

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fter an unprecedented year of major global challenges in health, economic hardships, and social inequality being unearthed and brought to the forefront by the COVID-19 pandemic, this year the World Economic Forum’s Davos Agenda 2021 aims to help create innovative solutions and promote strong recovery over the next year. Day one of the virtual summit, under the theme of “designing cohesive, sustainable and resilient economic systems,” saw panels and speakers from across the globe highlight the importance of restoring economic growth—a challenge that will undoubtedly be difficult to confront until trust in vaccines, trust in the global economy, and trust in each other and our societies can be restored.

A Message of Multilateralism & Cooperation In the opening address, President of the People’s Republic of China Xi Jinping explained that it is of the utmost importance to “step up macroeconomic policy coordination and jointly promote sustainable, balanced and inclusive growth of the world economy,” as this is the “first time in history [that] all economies of all regions have been hit hard at the same time.” Urging for multilateralism, he explains how we also need to “jointly follow a path of peaceful coexistence, mutual benefit and win-win cooperation,” as well as “close the divide between developed and developing countries and jointly bring about growth and prosperity for all.”

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This theme of multilateralism and cooperation was also echoed in panels centered on restoring economic growth, with Tharman Shanmugaratnam, Senior Minister of the Government of Singapore stressing the need to rebuild forms of cooperative internationalism “not just out of the goodness of our hearts—but out of every nation’s self interest.” While panelists echoed similar sentiments regarding multilateralism and global cooperation to promote open markets and supply chains, a panel on stakeholder capitalism also agreed that in order to build such a mutually beneficial global economy, “we need a mindset change to move away from a society where business and governments have separate tasks to one in which they, together with civil society, work hand in hand,” said World Economic Forum Founder and Executive Chairman Klaus Schwab.

However, in order for this collaboration to work, respect and trust is essential—and very much lacking in many parts of the world, especially in countries where vulnerable populations struggle with poverty and have yet to benefit from the global economy. “How can we expect somebody to embrace democracy when they don’t think the system is working for them?” asks Dan Schulman, President and Chief Executive Officer to PayPal. Mariana Mazzucato, Professor at University College London, posits that in order to restore this trust in business, “we must create a system that rewards companies that are more successful at supporting their communities.”

As UN Secretary-General Antonio Guterres states, the world needs “a new social contract between governments, peoples, society, businesses and more, integrating employment, sustainable development, social protection, and based on equal rights and opportunities for all.” Only then will trust in the government and global economy begin to re-form, and a new model for global governance that “ensures that power, wealth and opportunities are shared more broadly and fairly at the international level” can be created.

However, as the COVID-19 pandemic has highlighted, trust in health systems, the government, and our societies has reached a new low, and we may be far away from a new social contract anytime soon.

“When public health issues become politically charged—like wearing a mask or not becomes a political statement—you cannot imagine how destructive that is to any unified public health message,” says DIPLOMATIC COURIER | 7

Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Disease, demonstrating how efforts for global cooperation and a new social contract may be difficult to achieve until trust in our governments and social systems is restored.

However, not all hope is lost. While many people are still wary of COVID-19 vaccines as vaccination programs begin to roll out globally, Ben Page, Chief Executive Officer at Ispos, explains that “those governments that are consistent and communicate regularly tend to generate more confidence—there’s a big difference by countries,” showing how effective communication on the governmental level may be key. In terms of socially and economically restoring trust, Prime Minister of Spain Pedro Sanchez demonstrates one example of how Spain has worked to create laws on teleworking, financial support for SME’s and reskilling programs to protect Spain’s millions of workers during and after the pandemic.

Ultimately, day one of the Davos Agenda 2021 demonstrated how the concepts of cooperation, multilateralism, and most of all trust will be essential to recovering from the COVID-19 pandemic and restoring our global economy to a new form—one that is more inclusive and mutually beneficial for all.

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DAY 2 DRIVING RESPONSIBLE INDUSTRY TRANSFORMATION AND GROWTH

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hile day one of the Davos Agenda highlighted the need for global cooperation and trust in order to overcome the COVID-19 pandemic, restore the global economy, and address issues with inequality, day two of the forum saw world leaders emphasizing the critical importance of continued multilateralism beyond COVID-19 in order to address our world’s next biggest challenge: climate change.

Addressing Multiple Pandemics In a special address by Cyril Ramaphosa, President of South Africa, he warns how “extreme poverty is expected to rise globally for the first time in twenty years as the disruption caused by the pandemic exacerbates the effects of conflict, climate change and underdevelopment,” and how our task therefore is “not to restore the world to where it was when the pandemic struck, but to forge a new path and a new design to a world that is just, peaceful, cohesive, resilient and sustainable.” He insists this can only be achieved through multilateral action, as “the pandemic has underscored the vital importance of multilateral institutions working together in facilitating coordination, cooperation and common responses to challenges.”

Federal Chancellor of Germany Angela Merkel also addresses the need for international cooperation, as “it’s a clear and present danger that we [may] all become inward-looking after this pandemic…and that we industrialized countries [may] concentrate on our own 12 | DAVOS DIALOGUE

policies and not care for developing countries,” and how this must be avoided at all costs. She states how “the pandemic has made it very clear to all of us that discussing, debating and intellectual change are important, but the pandemic has also shown very clearly that now’s the time for action” not only in regards to COVID-19, but especially in regards to the climate crisis.

Indeed, Ursula von der Leyen, President of the European Commission, also warns that if we don’t urgently act to protect nature and the human population, the next pandemic will be just around the corner—and for those who insist on a business case for protecting our environment, she states how “more than half of global GDP is dependent on high functioning biodiversity and ecosystems, [including everything] from food to tourism,” showing how a healthy planet, a healthy population and a healthy economy go hand-in-hand.

Emmanuel Macron, President of France, also underscored the human aspect of the economy, stating how “you cannot think about the economy without thinking first about human beings,” and how the COVID-19 pandemic did the unthinkable in demonstrating how countries did manage to “stop all economic activities to save lives.” He finally states that this demonstrates how “the economy is a moral science, and therefore the lives of people are more important than figures.”

Amongst the world leaders who made a special appearance on day two of the Davos agenda, all members insisted on the importance of equal distribution and universal access to the COVID-19 vaccine as quickly as possible, with President Ramaphosa warning against vaccine nationalism and insisting countries who have acquired vaccines in excess to release the vaccines. Similarly, many of the leaders echoed similar views that regulations regarding transformative technologies such as social media and artificial intelligence must come to the forefront of debate again. Lastly, in terms of the environment, a general consensus was also made that not only should the Paris Agreement be upheld by every country and continue forward at a more serious pace, but that actors from every sector focus on creating unique solutions to the climate crisis.

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Stakeholder Capitalism & ESGs Another highlight of day two of the Davos Agenda was the announcement of the commitment made by 61 business leaders from across industries to subscribe to the Stakeholder Capitalism Metrics, a set of environmental, social and governance (EGS) metrics that measure long-term value for all stakeholders. According to the report, with these metrics, companies can measure and report performance regarding non-financial aspects such as their impact on the environment, society and government, as well as a general pledge to take into account the wellbeing of all of their stakeholders as well as society as a whole.

Indeed, as Klaus Schwab, Founder and Executive Chairman of the World Economic Forum, states in his book Stakeholder Capitalism, “stakeholder capitalism is needed to create a better world that serves people and planet.” In a panel on implementing stakeholder capitalism, Ilham Kadri, Chief Executive Officer of the Executive Committee at Solvay, states that having a common language surrounding these metrics will be a significant step forward, and further applauds the ESGs as “metrics [that] help encourage cooperation, restore trust and boost transparency…they will create a global baseline that all citizens can relate to.” Chairman of Mahindra Group Anand Mahindra also agrees how this stakeholder-centered philosophy is best for companies in the long run, as “the biggest growth opportunity for companies comes in serving the bottom of the pyramid,” and therefore the ESGs “[are] how we [can] serve the needs of a rising population.”

A similar panel highlighted how especially over the past year, “CEOs are more committed to running businesses for all stakeholders, not just shareholders,” says Marc Benioff, Chair and Chief Executive Officer at Salesforce, and how “in the pandemic, it was CEOs in many cases all over the world who were the heroes.” Laurence D. Fink, Chairman and Chief Executive Officer of BlackRock Inc. similarly states how we can “see a widening gap between the best performing and worst [in 2020], much of the difference caused by stakeholder capitalism.”

With day two of Davos 2021 largely focusing on how it will take the effort of every country, society and business to overcome the challenge 14 | DAVOS DIALOGUE

of climate change, it is clear it will take the same global effort being demonstrated in our battle against the COVID-19 pandemic—if not more—in order to save our planet.

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DAY 3 ENHANCING STEWARDSHIP OF OUR GLOBAL COMMONS

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nder the theme of “enhancing stewardship of our global commons,” day three of the 2021 Davos Agenda saw business and political leaders come together to further discuss the unique plans each country has to recover economically and socially from the COVID-19 pandemic, as well as how both the public and private sector can work towards potential solutions to climate change.

In an opening address by Moon Jae-in, President of South Korea, he emphasizes that while South Korea was one of the countries hit earliest by the COVID-19 pandemic, “the Republic of Korea was able to quickly make and deliver diagnostic kits in the fight to control the pandemic thanks to the COVID-19 information that the WHO shared with its member nations,” emphasizing the success of global transparency. He also warns that as COVID-19 becomes more prolonged, “inequality is widening a gap that we are witnessing within countries and between countries.” Therefore, it is absolutely critical to “keep the spirit of inclusiveness,” something the Republic of Korea plans on doing by making their own homegrown vaccines and vowing to supply them to any country that requests them in the future.

Similarly, Prime Minister of Israel Benjamin Netanyahu discusses in his address how Israel is pursuing one of the most hard-hitting vaccination plans around the world—having already vaccinated 82% of Israel’s population at the time of the 2021 Davos Agenda, in addition to having shut down commercial flights—because COVID-19 will ultimately create “an arms race between vaccination and mutation,” and he hopes 18 | DAVOS DIALOGUE

that Israel can serve as a “world laboratory for herd immunity.” In terms of how Israel is fighting climate change, he also explains how Israel has solved their country’s water scarcity problem by “recycling about 90% of [their] waste water” as well as how they have one of the largest desalination plants in the Mediterranean powered by solar energy, enabling them to have “more water than [they] need,” also noting that this is technology they are willing to share with the world.

In a special address by Vladimir Putin, President of the Russian Federation, he mentions that while they have created the Sputnik V vaccine to combat the COVID-19 pandemic, the pandemic’s effect on the economy and society has highlighted major issues in inequality, such as increasingly limiting access to healthcare and education for millions of people around the world, and how countries should shift their mindset towards building “an economy that doesn’t view people as a means, but places them at the center.” He also mentions how Russia has cautiously extended their nuclear arms agreement, and how in order for the international community to be able to move forward and tackle the global issues we are facing together, we all need to “approach in an honest manner our dialogue…then we’ll have created a positive stage in our relations.”

Finally, in a panel on mobilizing action on climate change in order to examine what industries and sectors can do to meet the Paris Climate Agreement goals, John F. Kerry, U.S. Special President Envoy for Climate, mentions how glad he is the U.S. has rejoined the international climate effort with humility and ambition, “knowing that all nations have to raise our sights together or we all fail together.”

Ben van Beurden, Chief Executive Officer of Royal Dutch Shell Plc, poses that similar to how governments have pledged to the Paris Agreement, it is just as important for companies to make a pledge to net-zero-emissions—but warns that “that’s going to be an even bigger challenge than getting a country to net zero.” Deputy SecretaryGeneral of the United Nations Amina Mohammed also states how our coming together as a global community to respond to the COVID-19 pandemic “can encourage that leapfrogging into a green transition, creating the jobs and making sure those energy transitions become a reality,” placing hope that nations around the globe can use the same global effort used to fight against the COVID-19 pandemic to also win against the climate crisis.

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DAY 4 HARNESSING THE TECHNOLOGIES OF THE FOURTH INDUSTRIAL REVOLUTION

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ay four of the 2021 Davos Agenda, under the theme of “focusing on how we can harness the technologies of the Fourth Industrial Revolution for good,” saw several panels throughout the day discuss the future of technology, in addition to several special addresses by world leaders addressing their plans for COVID-19 vaccinations.

In a special address by H.M. Abdullah II ivn Al Hussein, King of Jordan, in regards to the COVID-19 vaccine, he insists that “it is a moral duty to treat the vaccine as a global public good that ensures that low-income and poor countries are not left at the end of the waiting line as high-income countries buy the majority of the most promising vaccines,” advocating for vaccination equality. He explains how Jordan is doing their part by vaccinating refugees for free, as “amidst these challenging times, safeguarding the health and wellbeing of refugees remains a global responsibility.” He also mentions how Jordan had sent aid to other countries in need at the beginning of the pandemic in an effort to do their part as well, as ultimately “this is the year where we all have to step up and say not only what we can do to help ourselves, but what we can do to help others.”

In Prime Minister of India Narendra Modi’s address to the Davos Agenda, he mentions how while much of the world was naturally concerned for India at the beginning of the COVID-19 pandemic due

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to the size of the population in the developing country, “India moved forward with an approach of proactive public participation, [focusing] on developing COVID specific health infrastructure, [training] human resources to fight against Corona, and [making] full use of technology for testing and tracking.” He states how India is aiming towards vaccinating one-quarter of its population by July, and how already “in just 12 days, India has vaccinated more than 2.3 million of its health workers,” with a target of vaccinating 300 million senior citizens and patients with co-morbidities in the next few months.

Lastly, in a special address by President of Argentina Alberto Fernández, he states that “the pandemic we’re going through is not a mere accident,” and how “it is a wake up call to build a common home with new foundations. Either we wake up better or we succumb all the worse for wear.” He highlights the need to focus on helping those in need, as he is “certain that the moral imperative of the hour is to prioritize the most disadvantaged—the ones left behind, the ignored, the most vulnerable.” He therefore insists “the vaccine must be considered a global public good,” and that global cooperation will be essential moving forward, as “’fraternity’ must be the new name of development and ‘solidarity’ the new name of social peace.”

In addition to the focus by political leaders on the COVID-19 pandemic and their plans for recovery, day 4 of the 2021 DAVOS Agenda also saw a major shift in focus onto the Fourth Industrial Revolution and the potential for its technologies to reshape the world.

Two of the panels on the Fourth Industrial Revolution specifically highlighted the benefits and risks of 4IR technologies—especially artificial intelligence. As Mohit Joshi, President of Infosys, explains, AI is going to impact business in a plethora of ways—from seeing companies go almost completely digital, to AI integrating with cloud, IoT and robotic technologies, to issues with privacy and data security, to AI’s ability to completely change workforce dynamics. More important than AI and other 4IR technologies’ impact on business, however, Deputy Chairman of Huawei Technologies Ken Hu says, “we need to think about the impact of the fourth industrial technology on people. The right strategy is to make sure that all stakeholders— government, industry and people—work together to think about how to help everyone get ready for the future.” Ultimately, we are only at DIPLOMATIC COURIER | 23

the beginning of seeing the potential for AI, according to Julia Sweet, Chief Executive Officer at Accenture, as it is important to “not think about [AI] as a destination, but as an enabler that is only beginning to reach its full potential.”

Sundar Pichai, CEO of Google, echoes this sentiment about artificial intelligence not having yet reached its full potential. In a discussion about the future of technology, he notes how while artificial intelligence did not play a large role in mitigating the COVID-19 pandemic, its real potential may come to fruition within the next 1020 years, “assuming as humanity we take this moment to learn from [the pandemic] and apply our creativity and resources. I think we will definitely tackle it better the next time around.”

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DAY 5 ADVANCING GLOBAL AND REGIONAL COOPERATION

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he final day of the 2021 Davos Agenda, centered around the topic of “advancing global and regional cooperation,” saw heads of state and industry leaders come together to both highlight the successes of global cooperation in handling the COVID-19 pandemic as well as warn against vaccine nationalism and other potential disunity that may increase post-pandemic.

In Prime Minister of Singapore Lee Hsien Loong’s opening address, he notes how as the COVID-19 pandemic unfolded, the world “was forcibly reminded that our fates were intertwined and that we had to work together,” praising the global community’s efforts to restore supply chains, share tests and medical supplies, and work towards vaccine multilateralism initiatives. Similarly, he commends scientists and doctors in their willingness to share information about the disease and potential treatments, and notes that on the part of central banks, it was the “unprecedented levels of emergency spending and budgetary stimulus [that] have kept us afloat, providing a lifeline to companies, workers and families.” He also comments that in terms of climate change, “collectively we need to set higher common standards and hold one another to our mutual commitments.”

Similarly, Prime Minister of Japan Suga Yoshihide explains in his address that Japan’s green growth strategy is meant to create 15 million jobs by 2050, at the same point in which Japan plans to become carbon neutral. He also notes “environmental measures are no longer an economic constraint. Rather, they substantially transform

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the social economy, generating robust growth.” In terms of the delayed Tokyo Summer Olympic games, he says “this is going to be the testimony of our humankind prevailing over COVID-19, so we are resolved to deliver the games in a safe and secure manner.” He also promises “amidst the protectionist moves due to COVID-19, Japan will exercise leadership in the efforts towards expanding free and fair economic areas and strengthening rule-based multilateral free trading system,” as well as continue to work towards strengthening global relations.

Indeed, with a burgeoning sense that global cooperation and multilateralism will be of the utmost importance post COVID-19 in order to tackle ever-growing global issues, several panels of the day focused on how collaborative efforts between countries will be necessary to manage these global risks. In terms of COVID-19, Arancha González Laya, Minister of Foreign Affairs at the European Union & Cooperation of Spain, highlights that “cooperation is proving the most efficient way to deal with the pandemic and its impact” and notes that “we wouldn’t have been able to develop a vaccine in less than a year if it hadn’t been for international cooperation.” Furthermore, Minister of Foreign Affairs at the Ministry of Foreign Affairs of Indonesia Retno L.P. Marsudi urges against the politicization of the COVID-19 vaccines, stating that “we must remind ourselves vaccines are a humanitarian issue, not a political one.” Taro Kono, Minister of Administrative Reform and Regulatory Reform in the Cabinet Office of Japan, ultimately agrees “we need to put values first, including human rights.”

Kang Kyun-Wha, Minister of Foreign Affairs at the Ministry of Foreign Affairs in the Republic of Korea explains that in order to tackle global challenges moving forward, there are four things we must do: strengthen the WHO, tackle misinformation and disinformation, strengthen the multi-stakeholder approach, and restore multilateralism. In terms of US-China relations in specific, Fu Ying, Vice-Chairperson for the Foreign Affairs Committee on the 13th National People’s Congress, acknowledges that “it’s a challenge for both [the US and China] to find a way forward,” as the sense of competition between the two countries have grown over the past few years. However, she also notes that “how China and the U.S. define [their] relationship is important not just to both countries but to the DIPLOMATIC COURIER | 29

world,” and lastly notes that “as long as we have this spirit of mutual respect, and respect the fact each culture can exist in its own way, I’m sure it can evolve.”

As the 2021 Davos Agenda comes to a close, the global risks of an ongoing COVID-19 pandemic, vaccine nationalism, climate change, food and water scarcity, geopolitical tensions in addition to a host of other global issues may paint a dark picture of the future, but if there is anything to be gained from this year’s Davos agenda, it is this: strengthened global cooperation and multilateralism is the only way forward.

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