The World Economic Forum, which held its conference between January 15 and 19 in Davos, Switzerland, isn’t inclusive. The platform, funded by hundreds of multinational companies, charges huge membership and participation fees. Obviously, those concerned about the welfare of less fortunate sections of society cannot participate.
Since 1971, the WEF has discussed many important subjects, including trade, geopolitics, security, cooperation, energy, environment, and nature. The latest conference was attended by the heads of government from 60 countries, and celebrities from economic, political, social, and technology fields participated. But the forum only seems to serve the interest of giant companies that fund its activities, not the common people.
Economics or corporate interests?
At WEF 2024, the five-day conference mainly focussed on how friendship rather than ‘efficient partnerships’ is driving trade and investment globally. Russia’s invasion of Ukraine or Israel’s continuous bombing of Gaza is not auspicious for these companies because their investments are being affected, causing panic. All the 60 heads of government who participated expressed concern over global geopolitical turmoil and increasing hostility. Although their concerns are legitimate, when discussing the economy, their focus was not on inequalities between countries and the poverty, illiteracy, and unemployment of the masses worldwide. The topic of concern to the entire world—environment and climate change—was discussed, but no political will was seen among global leaders to find a solution.
It is becoming clear from many past climate change conferences, organised under the auspices of the United Nations, that today we need solutions, not just discussions on the environment. Many years ago, developed countries had promised to provide $100 billion every year to tackle climate change, but that funding is not visible anywhere. Similarly, MNCs, whose assets are worth trillions of dollars, may discuss environmental problems at the World Economic Forum or other forums, but they are still unable to spare the technology needed to tackle this problem without exploitative prices. This situation points towards the dual character of multinational companies. While climate change continues to be the biggest challenge facing humanity, these MNCs are not ready to sacrifice their profits.
Also read: Heard in Davos: What we learned from the WEF in 2024
Lack of honesty about issues
All the celebrities who attended the Davos conference discussed the deteriorating environment in the world and the threats of destruction due to changing climate, but most of them came there in their own private planes. They seemed indifferent towards how much carbon was emitted, and the environment was degraded. If the organisers of the World Economic Forum were sensitive to the world’s issues, then huge fees for attending this conference would not have been charged. Due to the high fees, activists working for marginalised communities, backward societies, and the general public could not be invited to participate in this conference. The presence of heads of government, ministers, and intellectuals favoured by big companies provides legitimacy to the agenda of these companies.
Ugly face of big corporates stands exposed
Obviously, no matter how much these multinational companies talk about humanity and welfare, their behaviour during the worst pandemic of this century was highly shameless. A company called Pfizer deliberately supplied an ineffective Covid vaccine across the world. The company was well aware that their vaccine was not effective, yet they were also putting pressure on the Indian government through the American government. Not only this, under the US pressure, India’s opposition parties were also pressurising the government to buy its vaccine. On the sidelines of WEF 2023, when the CEO of Pfizer was asked questions in this regard, he shamelessly refused to say anything.
It is no secret that the General Agreement on Tariffs and Trade (GATT) was made under the pressure of multinational companies. GATT included Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), Trade-Related Investment Measures (TRIMs), services agreement, and agriculture agreement. TRIPS not only extended the term of patents on all types of products, including drugs and medical devices, in the interest of multinational companies but also implemented the transition from process patents to product patents, hampering health security globally.
When the companies protested against the South African government purchasing medicines from India’s Cadila in the World Trade Organisation (WTO) and faced public anger due to this, it was accepted in the WTO that patents would be ineffective during pandemics and health emergencies. However, during the Covid-19 pandemic, MNCs did not give up their patent rights. Not only this, when more than 100 countries led by India and South Africa proposed ‘TRIPS waiver’, that is, exemption from TRIPS in the TRIPS council, under the pressure of their MNCs, all the developed countries, including US and European nations, opposed this proposal. Despite all efforts, the TRIPS council accepted the proposal to give up patent rights only on the vaccine for the coronavirus but with conditions attached, making the waiver useless.
It can be understood that no welfare of the world can be expected from such an international forum dominated only by multinational companies without representative of the masses playing an effective role. The WEF’s only religion is profit and is insensitive towards humanity. The world needs to be cautious of such platforms because their real agenda is opaque. When economics, trade, technology, environment, and even inequalities are discussed at such forums, it should be understood that they are pushing MNCs’ agenda in the guise of these discussions.
Voices against WEF in US too
On 19 January 2024, US Congressman Scott Perry, joined by five others, introduced the ‘Defund Davos Act’.
“Forcing American Taxpayers to fund annual ski trips for insular, global elitists is absurd – not to mention reprehensible…The World Economic Forum doesn’t deserve one cent of American funding, and it’s past time we defund Davos,” he said.
If this Act is passed, WEF will stop getting any funding from the US exchequer. This shows that WEF is being opposed by Congressmen in the US as well, accusing it of being elitist and having no relevance for the common man.
Ashwani Mahajan is a professor at PGDAV College, University of Delhi. He tweets @ashwani_mahajan. Views are personal.
(Edited by Prashant)