World Economic Forum

The World Economic Forum (WEF) is an international non-governmental organization and nonprofit foundation based in Cologny, Switzerland. It was established in 1971 by German economist Klaus Schwab as the European Management Forum and adopted its present name in 1987.

The organization convenes political leaders, business executives, academics, civil-society representatives, and other stakeholders to discuss economic, social, technological, and geopolitical issues.

The WEF is best known for its annual meeting in Davos, Switzerland, commonly referred to as the Davos Annual Meeting.

History

The World Economic Forum was founded in 1971 as the European Management Forum by Klaus Schwab, then a professor of business administration at the University of Geneva.

The original organization focused primarily on improving European corporate management practices.

Its activities subsequently expanded beyond management and business issues to include economic policy, international cooperation, technology, social development, and global governance.

In 1987, the organization was renamed the World Economic Forum to reflect its broader international scope.

A simplified development is:

$\text{European Management Forum}\to \text{International Economic and Political Forum}\to \text{World Economic Forum}$

Annual meeting

The WEF's annual meeting is held in Davos and brings together participants from governments, business, international organizations, academia, civil society, and the media.

The meeting provides a forum for discussions concerning international economic and political issues.

Topics can include:

• economic growth;
• international trade;
• financial stability;
• climate change;
• technological development;
• artificial intelligence;
• geopolitical conflicts;
• public health;
• energy security;
• inequality;
• sustainable development.

A simplified representation is:

$\text{Political Leaders}+\text{Business Leaders}+\text{Experts}+\text{Civil Society}\to \text{Dialogue and Cooperation}$

The annual meeting does not constitute a formal decision-making body of governments or international organizations.

Mission and activities

The World Economic Forum describes its mission in terms of improving the state of the world through cooperation among business, government, civil society, and other stakeholders.

Its activities include:

• convening international meetings;
• facilitating public-private dialogue;
• conducting economic and social research;
• publishing reports and rankings;
• developing initiatives and partnerships;
• providing platforms for discussion among stakeholders.

A simplified representation is:

$\text{Research}+\text{Dialogue}+\text{Public-Private Cooperation}\to \text{Policy and Business Engagement}$

Research and reports

The WEF publishes reports and analytical studies covering a range of economic, technological, social, and geopolitical subjects.

Notable publications include:

• Global Competitiveness Report;
• Global Risks Report;
• Global Gender Gap Report;
• Future of Jobs Report;
• Global Cybersecurity Outlook.

These publications use data, surveys, expert assessments, and other research methodologies depending on the subject.

A simplified research process is:

$\text{Data}+\text{Expert Assessment}+\text{Analysis}\to \text{Research Report}$

The methodology and indicators used vary between individual reports.

Global Risks Report

The Global Risks Report examines major risks that could affect societies, economies, and international systems.

Risks are generally assessed across categories including:

• economic;
• environmental;
• geopolitical;
• societal;
• technological.

A simplified framework is:

$\text{Global Risks}=\text{Economic}+\text{Environmental}+\text{Geopolitical}+\text{Societal}+\text{Technological Risks}$

The report also examines relationships between different risks and the potential consequences of their interaction.

Global Competitiveness Report

The Global Competitiveness Report assesses factors associated with the productivity and competitiveness of economies.

The framework has included areas such as:

• institutions;
• infrastructure;
• macroeconomic stability;
• health;
• education;
• skills;
• financial systems;
• business dynamism;
• innovation capability.

A simplified relationship is:

$\text{Productivity}\to f(\text{Institutions},\text{Infrastructure},\text{Skills},\text{Finance},\text{Innovation})$

The WEF's global competitiveness methodology has changed over time, and publication of the traditional Global Competitiveness Index was affected by the COVID-19 pandemic.

Global Gender Gap Report

The Global Gender Gap Report measures gender disparities across economies.

Its framework has included dimensions such as:

• economic participation and opportunity;
• educational attainment;
• health and survival;
• political empowerment.

A simplified representation is:

$\text{Gender Gap}=f(\text{Economic Participation},\text{Education},\text{Health},\text{Political Empowerment})$

The report primarily measures gender gaps rather than absolute levels of development.

Future of Jobs Report

The Future of Jobs Report examines changes in employment, skills, occupations, and workforce requirements associated with technological, economic, and social changes.

Factors examined can include:

• technological adoption;
• artificial intelligence;
• automation;
• changing business models;
• skills requirements;
• job creation;
• job displacement;
• workforce reskilling.

A simplified relationship is:

$\text{Technological Change}\to \text{Changing Skills Demand}\to \text{Labour-Market Transformation}$

Public-private cooperation

The WEF promotes cooperation between governments, businesses, international organizations, and civil-society groups.

A simplified representation is:

$\text{Government}+\text{Business}+\text{Civil Society}+\text{International Organizations}\to \text{Multi-Stakeholder Cooperation}$

The organization has developed initiatives and partnerships addressing particular global challenges.

Criticism and controversy

The World Economic Forum has attracted criticism concerning its influence, membership structure, funding arrangements, and role in global economic and political discussions.

Critics have argued that the organization gives large corporations and wealthy individuals disproportionate access to political and economic decision-makers.

The WEF has also been the subject of conspiracy theories, particularly concerning the concept of the Great Reset, an initiative introduced by the organization in 2020 in response to the economic and social effects of the COVID-19 pandemic.

The WEF states that its role is to provide a platform for cooperation and dialogue among stakeholders rather than to exercise governmental authority.

Institutional status

The World Economic Forum is a Swiss nonprofit foundation.

It is independent of governments and is not an institution of the United Nations, European Union, or other intergovernmental organization.

Its meetings and initiatives can involve government officials and representatives of international organizations, but participation does not give the WEF formal governmental decision-making authority.

A simplified distinction is:

$\text{World Economic Forum}\ne \text{Governmental Institution}$

and:

$\text{WEF}\to \text{Dialogue}+\text{Research}+\text{Stakeholder Cooperation}$

See also

• Davos
• Globalization
• Global governance
• Global Risks Report
• Global Competitiveness Report
• Future of Jobs Report
• Global Gender Gap Report
• Great Reset
• Klaus Schwab
• International non-governmental organization

External links

• World Economic Forum