People gather in the Davos Congress Center prior to the start of the World Economic Forum Annual Meeting 2023 in Davos, Switzerland, January 16, 2023. /CFP
Editor's note: Hannan Hussain is a foreign affairs commentator and author. He is a Fulbright recipient at the University of Maryland, the U.S., and a former assistant researcher at Islamabad Policy Research Institute. The article reflects the author's opinions and not necessarily the views of CGTN.
From January 16 to 20, government, business and civil society leaders are holding the World Economic Forum (WEF) Annual Meeting 2023 in Davos, Switzerland, centered on the theme of "Cooperation in a Fragmented World." The forum's much-awaited transition from a virtual to in-person format is symbolic of a soft shift away from the pandemic. Chinese Vice Premier Liu He is participating at the meeting, and has delivered a special address alongside other global leaders.
A wide array of international concerns – from sustainable defenses to the relaunching of trade, growth and investment – offer an opportunity to refocus global engagement through a shared sense of economic and diplomatic interdependence. By offering a window into cooperation amid seismic shifts, the 2023 Davos Forum represents an agenda that can be best served through a call to action on several fronts.
First, the returning risks of "trade wars" and "capital outflows from emerging markets" put the onus on fast-changing economies to put the developing world's stakes at the center of solutions. After all, these countries face enormous challenges to sustaining manageable levels of debt, growth and human development investments within and beyond 2023.
As a major integrated economy, a lot can be learned from China. It continues to play its part for a more cooperative world: reopens its borders amid global economic slowdown, plugs growing pessimism in energy markets through relaxed COVID controls, and remains focused on greater market access for all countries without exception.
Such an inclusive approach to trust-building and global cooperation is particularly relevant to this year's Davos Forum, given the need to protect developing countries from future supply crises. Insights from the WEF's latest Global Risks Report confirm that "distrust between global powers is artificially exacerbating" such supply crises on a global scale. In turn, this underlines the value of constructive engagement and communication with all relevant stakeholders, without ideological imperatives at play.
The theme of this week's forum – cooperation in a fragmented world – recognizes intersecting challenges and how these risks are exacerbating unless core drivers are tackled head-on. For instance, developing economies risk suffering from continued shocks without a sustainable policy framework that alleviates their exposure to twin energy and food crises.
Soldiers, students and volunteers pack bags of food to distribute to flood victims following heavy rains at a school in Narathiwat, Thailand, December 21, 2022. /CFP
Similarly, the world is already looking at the possibility of consistent volatility over the next two years, making it imperative to discard Cold War mentality and zero-sum game and bring "global debt distress" under control. If all powers resolve to converge, plenty can be accomplished.
Consider debt-restructuring for developing economies. This pursuit remains a holdover from peak pandemic years, and addressing its complexity through global cooperation is seen as key to containing possibilities of default. Initial headway from international financial institutions demands continuity, while China's contribution on debt-relief with over a dozen countries is a proof point for others to follow-suit.
Alternatively, efforts to couple economic support with geopolitics, and prioritize trade through allied blocs, may not score gains against uncertain growth and fragility on the world stage. As the WEF report warns, "renewed soft power approaches" and "debt-trap" diplomacy could drive currency blocs, intensify pressure on developing countries, and see a shift in supply chains to "mirror economic alliances." These trends run counter to the pursuit for globalization, the lifeblood of a promising world economy.
In the years since the 2018 Davos Forum on "Creating a Shared Future in a Fractured World," several growth-positive platforms and opportunities stand ready to be leveraged for future progress. It includes the China-proposed Global Development Initiative, which enjoys a range of international partnerships, as well as target priorities aligned by Sustainable Development Goals for critical regions of the world. Opportunities also include major climate diplomacy momentum as witnessed last year, giving due recognition to the developing world's exposure, financing and justice concerns on the world stage. All these demands continuity and merits inspiration for delicate, meaningful cooperation at the forum.
Thus understood, the world is at a critical inflection point, and the 2023 Davos Forum offers a timely prospect to bridge differences and move in sync. It should be seen as a vital chance for all economies to heed complimentary lessons without resistance, and promote a discourse that is result-oriented and responsive to current and future crises.
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