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Davos – just a talking shop, or a problem-solving forum?

What is Davos and is it important? We take a closer look.

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This week, global political and business leaders gathered in Davos for the World Economic Forum meeting, with climate change and the severity of the incoming global downturn taking centre stage.

UN representatives have been particularly critical of fossil fuel producers and their slow transition away from oil and gas production.

There are worries that the mounting cost of trying to limit the effect of painful inflation for citizens will mean there’s less for governments to spend on crucial projects to accelerate toward net-zero targets.

The prospect of debating painful consumer prices and climate change with attendees who might have flown in by private jet, is likely to have deterred some world leaders from attending.

With the fracturing of the political landscape, once elastic supply chains turning brittle and the prospect of new trade tensions escalating, many hope this event might jump-start a new circuit of networks to help find solutions.

Davos has been criticised as just a talking shop for the elite. While it might be wishful thinking to expect any concrete developments to emerge this week from the main discussions, there’s likely to be more progress from the fringes of the forum.

The global Dragon’s Den?

Davos is like Dragon’s Den on a global scale, with entrepreneurs searching for investment to fund their ideas and fledgling projects.

Restaurants and shops have been transformed into huge stands for global brands and countries, with big names offering networking and deal-making opportunities.

As the world grapples with the transformation to net zero, the need for greater sustainability and the cost-of-living drain on resources, this could well be the spark for much needed innovation.

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Written by
Susannah Streeter
Susannah Streeter
Head of Money and Markets

Susannah is a key contributor to our content. She follows changes in monetary policy movements and fiscal policies closely to assess the impact on financial markets and economic growth, and has extensive experience in covering technology stocks and the retail sector.

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Article history
Published: 20th January 2023