At the 54th Annual Meeting of the World Economic Forum (WEF) policy-makers, business executives, international organisations, world leaders, civil society, academicians and innovators called for rebuilding trust in the face of increasing fragmentation. The WEF 2024 underscored its commitment to the collaborative use of technology for global commerce, generating new growth models powered by innovation, and creating partnerships to extract solutions to the challenges.
This paper examines the key focus areas discussed at the WEF Annual Meeting 2024 and the influence of India’s G20 Presidency.
Global Cooperation and Security
The Forum recognised that the world is witnessing growing geopolitical fragmentation and polarization. The global economy is still recovering from the pandemic, and the uncertain outlook of wars in West Asia and Europe is threatening global supply chains. United Nations Secretary-General Antonio Guterres has been stating that these geopolitical divides are preventing nations from uniting around global solutions for global challenges.[i] Geo-political tension (Oxford Economic Survey August 2023)[ii] and Climate Change (IMF Fiscal Monitor April 2023)[iii] now pose the greatest risk to the global economy. Thus, indicating the shift in business perceptions about the key threats to the global economy.
To address the challenges in a fragmented world, the Forum published a White Paper that delves into four areas where greater cooperation is both necessary and possible: enhancing global security, driving equitable climate action, regulating emerging technologies, and shaping a more sustainable trade system.
There has been a sharp decline in global cooperation on peace and security, which has pulled down signs of resilient cooperation in areas such as trade and capital, innovation and technology, and climate and natural capital. The WEF’s Global Cooperation Barometer 2024 underscored that cooperation is multifaceted and elements of cooperation can coexist with competition and rivalry.[iv] The unanimous adoption of the G20 New Delhi Declaration under India’s G20 Presidency is one testament that cooperation was achievable despite initial doubts. The G20 leaders agreed under the Declaration to accelerate progress on SDGs, reform development financing institutions, and encourage women-led development. [v]
Tackling Climate Change and Building New Energy Systems
The Forum underlined the need for multifaceted cooperation by focusing on integrating low and zero-carbon technologies with transformative solutions. Leaders at COP28 had decided to move the world's energy consumption away from fossil fuels and operationalize the Loss and Damage Fund.[vi] To amplify the investment needs of developing nations and advance actionable solutions to increase green energy capital flows globally the Forum launched Network to Mobilize Clean Energy Investment for the Global South. The network intends to unlock an estimated $2.2-2.8 trillion needed for the energy transition.[vii] It may be mentioned that the G20 leaders, which now include the African Union, are committed to accelerating clean, sustainable, affordable, and inclusive energy transitions.[viii] Further, the Forum announced a special meeting on “Global Cooperation, Growth and Energy for Development” in April 2024 to be hosted by the Kingdom of Saudi Arabia.[ix]
Need for New Models of Growth
For economic growth to be sustainable it needs to be inclusive in terms of equitable distribution of the benefits of AI, enhancing gender parity by making women equal contributors to the global GDP, and investing in skilling the population in utilising the benefits of emerging technologies. In this uncertain economic situation, new models of growth are required that balance productivity with equity and sustainability. The Forum raised concerns on addressing the climate transition, needs of social security systems, and challenges of the AI era. It called for balancing the drivers of growth and productivity with the complexity of innovation, inclusion, sustainability, and resilience.
Though the global economy has shown signs of recovery, it is uncertain how future economic shocks will affect economic recovery. According to the World Bank, India’s GDP growth is estimated at 6.3% (2023-2024) despite global headwinds.[x] Under the ‘Credible India’ theme at the Forum, the spotlight was drawn to India's impressive economic achievements and its future potential as a significant contributor to global growth.[xi] India has shown immense commitment to generating new models of growth by developing effective and innovative technology solutions that deliver governance solutions at a mass scale.
India’s demonstration of leadership in the digital domain through initiatives such as UPI and CoWIN enables it to identify potential areas for AI applications that focus on delivering smarter and people-centric solutions. India’s Bhasini Application which is bridging the digital divide with language diversity is one such example. It operates as an AI-driven language translation system, breaking down language barriers, enabling conversations between speakers of different languages, and promoting inclusivity.[xii] In the Digital India Experience Zone showcased under India’s G20 Presidency, a media person from Russia used the Bhashini Application to interact in Russian and seamlessly communicated in his language in a foreign land.[xiii]
India is utilizing digital transformations such as its Digital Public Infrastructure (DPI) to accelerate the progress on the SDGs. This includes utilizing financial inclusion DPIs such as UPI to reduce the cost of remittances (SDG 10). India is also working towards building an agriculture DPI, Agri Stack, which intends to build innovative agri-focused solutions leveraging emerging technologies to contribute effectively to creating a better Ecosystem for Agriculture.[xiv]
The inclusion of women in the decision-making process, their contribution as active participants in all spheres of society, and their capability to immensely contribute to global GDP growth were also underscored. The Forum discussed the idea of how investment in women’s health could boost the global economy by USD 1 trillion annually by 2040. As a part of Prime Minister Narendra Modi’s commitment to inclusive growth and building on the foundations of the G20 presidency, WEF and the Government of India (GoI) launched the Global Good Alliance for Gender Equity and Equality. Thus, reaffirming the G20 Leaders' commitment to the fundamental importance of gender parity and empowerment of women and girls as a multiplying force in implementing the 2030 Agenda.
Advancements in Artificial Intelligence and its Challenges
Artificial Intelligence (AI) and emerging technology were at the heart of discussion at Davos 2024. The potential of AI in accelerating scientific discoveries, balancing its potential benefits along with concerns about security, privacy, accountability, and inclusive and ethical use were deliberated upon. Leaders underscored the need to democratize access to advancements in AI and the need for parallel debates on the political, societal, and ethical aspects as technology evolves.[xv] India was at the centre of critical issues such as the transition to clean energy and responsible use of Artificial intelligence (AI). As a part of the India delegation at Davos 2024, Union Minister Smriti Irani underscored the need to promote responsible behaviour concerning AI such as consensus on watermarking AI products to ensure that countries adopt a balanced approach towards emerging technologies.[xvi]
This aligns with the commitment by the G20 leaders under the Delhi Declaration to tap “AI for the public good by solving challenges in a responsible, inclusive and human-centric manner, while protecting people’s rights and safety.”[xvii] G20 leaders pledged to unlock the potential of AI, equitably share its benefits, and mitigate risks by promoting international cooperation and discussion on the international governance of AI. Further, with emphasis on leveraging the positive potential of AI, WEF’s EDISON (Essential Digital Infrastructure and Services Network) Alliance mentioned improving the lives of over 700 million people through 320 initiatives across 127 countries through affordable and accessible digital solutions in education, financial services, and healthcare. Thus, promoting responsible use of AI and emerging technologies to mitigate the risks and advance people-centric and environmentally sustainable approaches. According to a McKinsey & Company evaluation of Davos 2024, “India is transforming rapidly as one of the fastest growing large economies in the world. When it comes to technology, talent, healthcare, and other areas, its future in 2024—and beyond—is worth paying attention to.”
Negating The Luddite Fallacy
Amidst the digital revolution, technological advancements such as AI have generated fear of unemployment. It leads to misjudging the dynamic nature of innovation and the untapped potential that technological advancements possess. Thus, it will be crucial to ensure that the workforce of the future is capable and skilled to take advantage of all that AI has to offer. The Forum called for equivalent investment in people and equitable opportunities and advanced projects related to skilling, digital inclusion, and healthcare, among others. Chief Executive Officer of the ManpowerGroup, Jonas Prising, underscored that “As tech adoption continues at pace, increasing people’s employability and providing them with greater control of their prosperity and earning potential is critical to creating a future that is better for the many, not the few.”[xviii] This tech-enabled, human-led future requires nations to invest and focus on skilling, re-skilling, and upskilling. The evolving nature of technology requires experts to consider how these technologies can work together to unlock new possibilities and drive progress.
Conclusion
The main focus of the Davos 2024 was on rebuilding trust and promoting global cooperation in the face of increasing fragmentation. The meeting highlighted the importance of addressing challenges such as geopolitical tensions, climate change, advancements in Artificial Intelligence (AI), and the need for new models of inclusive and sustainable growth. It identified the potential areas of cooperation such as climate action, regulating emerging technologies, enhancing gender parity, and shaping equitable economic models. India actively deliberated and was featured in the potential areas of cooperation. India's G20 Presidency was also discussed as a demonstration of leadership in areas such as digital inclusion, innovation, and healthcare. After a successful Presidency of G20, India continues to champion the values of “Vasudhaiva Kutumbakam: One Earth, One Family, One Future”. Fostering multifaceted cooperation in a fragmented world, India positioned itself as a unifying voice of the Global South, addressing shared concerns on the global stage. At the Davos Summit, India showcased the ability to tackle challenges and bring consensus on critical issues of energy security and sustainability, and responsible use of AI, among others, projecting the image of a “Viswamitra” a friend of the world.
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*Avni Sablok, Research Associate, Indian Council of World Affairs, New Delhi.
Disclaimer: Views expressed are personal.
Endnotes
[i] “Sense of urgency required to tackle climate crises, poverty: WB chief Banga”, Business Standard, January 18, 2024. Available at: https://www.business-standard.com/world-news/sense-of-urgency-required-to-tackle-climate-crises-poverty-wb-chief-banga-124011801106_1.html (Accessed on January 30, 2024)
[ii] “Businesses now see geopolitical tensions as key global threat”, Oxford Economics, August 1, 2023. Available at: https://www.oxfordeconomics.com/wp-content/uploads/2023/08/Businesses-now-see-geopolitical-tensions.pdf?pi_content=6fdcebad04470b2de9f851796ff66296f83eed17d5536cb615245b7635d80495 (Accessed on November 1, 2023)
[iii] “Fiscal Monitor on the Path to Policy Normalization”, International Monetary Fund, April 2023. Available at: https://www.imf.org/en/Publications/FM (Accessed on November 1, 2023)
[iv] “The Global Cooperation Barometer 2024”, World Economic Forum, January 8, 2024. Available at: https://www.weforum.org/publications/the-global-cooperation-barometer-2024/ (Accessed on January 30, 2024)
[v] “G20 New Delhi Leaders’ Declaration”, Ministry of External Affairs, September 2023. Available at: https://www.mea.gov.in/Images/CPV/G20-New-Delhi-Leaders-Declaration.pdf (Accessed on January 30, 2024)
[vi] “COP28 Agreement Signals “Beginning of the End” of the Fossil Fuel Era”, United Nations Climate Change, December 13, 2023. Available at: https://unfccc.int/news/cop28-agreement-signals-beginning-of-the-end-of-the-fossil-fuel-era (Accessed on January 30, 2024)
[vii] “Global Leaders Unite to Triple Clean Energy Investment in Emerging Economies”, World Economic Forum, January 17, 2024. Available at: https://www.weforum.org/press/2024/01/wef24-global-leaders-unite-to-triple-clean-energy-investment-in-emerging-economies/ (Accessed on February 5, 2024)
[viii] “African Union’s inclusion in G20: Who is helping whom?”, India Today, September 12, 2023. Available at:
[ix] “Shaping Cooperation in a Fragmented World”, World Economic Forum, January 15, 2024. Available at: https://es.weforum.org/publications/shaping-cooperation-in-a-fragmenting-world/ (Accessed on January 30, 2024)
[x] “India’s Growth to Remain Resilient Despite Global Challenges”, The World Bank, October 3, 2023. Available at: https://www.worldbank.org/en/news/press-release/2023/10/03/india-s-growth-to-remain-resilient-despite-global-challenges (Accessed on February 6, 2024)
[xi] “WeLead to Credible India: Indian lounges dominate World Economic Forum in Davos”, The Hindu, January 15, 2024. Available at: https://www.thehindu.com/news/national/welead-to-credible-india-indian-lounges-dominate-davos-promenade/article67742504.ece (Accessed on February 6, 2024)
[xii] “Bhashini: Everything you need to know about AI language translation tool”, Business Standard, December 18, 2023. Available at: https://www.business-standard.com/technology/tech-news/bhashini-everything-you-need-to-know-about-ai-language-translation-tool-123121800769_1.html (Accessed on January 31, 2024)
[xiii] Dr. Pavankumar R.Khedkar, “Bhashini App: Bridging the Digital Divide with Language Diversity”, Press Information Bureau, September 10, 2023. Available at: https://blogs.pib.gov.in/blogsdescr.aspx?feaaid=59 (Accessed on January 31, 2024)
[xiv] Press Information Bureau, “Government is in the process of finalising 'India Digital Ecosystem of Agriculture (IDEA)' which will lay down a framework for Agristack”, Ministry of Agriculture & Farmers Welfare, August 3, 2021. Available at: https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1741995 (Accessed on February 8, 2024)
[xv] “Davos 2024: 4 things to know”, World Economic Forum, January 19, 2024. Available at: https://www.weforum.org/agenda/2024/01/davos-2024-highlights-ai-growth-climate-security/ (Accessed on January 31, 2024)
[xvi] “From navigating global headwinds to endorsing responsible AI: 5 key themes from India at Davos 2024”, World Economic Forum, January 19, 2024. Available at: https://www.weforum.org/agenda/2024/01/india-davos-artificial-intelligence-economy-2024-highlights/ (Accessed on January 31, 2024)
[xvii] “G20 New Delhi Leaders’ Declaration”, Ministry of External Affairs, September 2023. Available at: https://www.mea.gov.in/Images/CPV/G20-New-Delhi-Leaders-Declaration.pdf (Accessed on January 31, 2024)
[xviii] “Annual Meeting 2024: Rebuilding Trust Amid Uncertainty”, World Economic Forum, January 19, 2024. Available at: https://www.weforum.org/press/2024/01/annual-meeting-2024-rebuilding-trust-amid-uncertainty/ (Accessed on January 31, 2024)