Friday, February 21, 2014

The (Ir)relevance of Davos

Credit: APSanchez

“I think he said, ‘blessed are the cheese-makers.’”
The Life of Brian, 1979

Looking in from the outside at a movement, it’s easy to draw the wrong conclusions. Davos, the annual leaders’ conference draws an inordinate amount of incorrect conclusions and negative sentiment.  The idea that the elite of business, academia and politics meet in an exclusive holiday-resort in Switzerland doesn’t sit well with many people: When organizations and individuals are paying huge amounts of money to attend a conference, the thinking goes, the only thing on the agenda could be self-interest at the expense of the masses.

There is undoubtedly much self-interest at play at Davos but that in itself is not always a bad thing: Those of us on the outside may have the chance to play the role of ultimate economic free-rider from Davos insights. Likewise, hopefully the calibre of guests attending the forum creates a kind of intellectual one-upmanship, where speakers and audience members - in an effort to be taken seriously among an impressive array of fellow attendees and the gathered world media - unload their most creative ideas and their most convincing arguments. This may well be self-interest, but it is not always at the expense of the masses.

Davos has also played the role of catalyst in bringing leaders from countries involved in disputes together –most notably the example of Turkey and Greece in 1988 and the leaders of North and South Korea in 1989. It could well be argued that these leaders didn’t require a Swiss holiday-resort to sit with their counterpart and discuss their differences. Nevertheless, being surrounded by such a powerful array of characters willing the meeting to happen must surely create a kind of positive peer pressure that would be difficult to achieve elsewhere. And thankfully, the trickle-down benefits are felt by those not present at the conference.

Deserving of Criticism
Davos is not without its negative aspects. Sometimes the self-interest has no trickle-down effect: the environmental cost of transporting nearly 2,500 people across the world must be enormous. Over 60% of the attendees are from outside Europe (i). Even if Davos is committed to offsetting the resulting carbon omissions as it claims (and it would be difficult to offset it all), the whole procedure is unnecessarily burdensome.

Regrettably, for an event attended by such a stellar cast of intellectuals, there’s often more hot air than anything of substance to come from the conference. Management talk flourishes where there is little tangible in the way of output. British Prime Minister David Cameron said that the UK had become “the re-shore nation” (ii) in his address. The overall theme given to the conference in 2014 was “resilient dynamism.” (iii) Terms like these are meaningless and undermine efforts to increase public support for the conference, as well as distracting from its worthwhile output.

The final critique of Davos is that its demographics are skewed towards rich, white men from Europe and America. This is an inaccurate reflection of where the world currently is and where it’s going. Those who counter that anyone that pays the entrance fee can participate, ignore the fact that by charging extortionate amounts and setting up a permanent base in Europe, the organizers have created a natural bias towards this demographic. Women too could contribute much to an event like Davos but are disappointingly scarce on the ground for a conference regarded in such high esteem.

Small Improvements
Realistically, the drawbacks surrounding Davos mentioned above are complicated to eradicate. To move the event from Davos every other year would be to take momentum from the conference. Nor is it in the organizers’ own interests. Stopping politicians from spouting jargon is a fool’s errand. And the lack of women at Davos each year is probably just an unfortunate reflection of the upper tier of politics, academia and business generally, rather than a sexist bent at Davos specifically. Despite these hurdles, the organizers can and should make improvements – however small – to the annual conference at Davos.

Each year, the leader of the nation which has made the greatest strides in an area such as economic policy, democracy and human rights should be given increased access to the events at Davos. The conference can make itself a true force for good by encouraging such leaders to implement reform in their countries and in doing so, be welcomed to the top table of business and politics. By the same measure, the corporation which has improved its corporate social responsibility most in the previous twelve months should receive some recognition among their peer group at Davos.

Davos benefits from a certain level of secrecy – if all of its conferences were available online, it wouldn’t manage to sell as many tickets for tens of thousands of dollars. A certain amount of discretion also encourages participants to air their true opinions as opposed to non-offensive PR-friendly versions. All of that said, it wouldn’t damage the reputation of Davos to increase transparency at the conference. For example, by encouraging participants to make their presentations and speeches available online beforehand, the quality of debate at the conference may be enhanced by attendees who have had more time for ideas to gestate. In turn, the public gain access to insights that they are often paying for indirectly anyway.

Conclusions
Is Davos relevant? Whether you think so or not, the reality is that Davos is here to stay. Thousands of people believe it to be relevant enough to pay large sums of money to attend every year. They travel long distances and pay inflated prices to stay in nearby hotels. In short, if the WEF didn’t exist, somebody would invent it. In its current guise, Davos certainly has faults – the hubris of its participants being the one most often levelled at it – but it has benefits too.

It is worth noting too, that Davos didn’t invent hubris and if it were cancelled next year, hubris wouldn’t suddenly disappear with it. Therefore, instead of taking aim at Davos, we should welcome its potential as a force for good and focus energy on gaining accountability from politicians and business leaders. In most countries, we have the advantage of being able to enforce this accountability as voters and shareholders. We should exercise this ability more effectively – the best way to make Davos truly relevant.

References
i)                     The Economist, Jan 25th 2014
ii)                   The Independent, Jan 24th 2014

iii)                  http://www3.weforum.org/docs/AM13/WEF_AM13_ExecutiveSummary.pdf

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