The World Economic Forum (WEF) held its 53rd Annual Meeting, “World Economic Forum—2023” [Davos Summit], from January 16 to 20, 2023, in the highest city in Europe, Davos, Switzerland.
- The theme of the WEF Summit 2023 is “Cooperation in a Fragmented World.”
The WEF hosted the event in collaboration with the Swiss government and the Canton of Graubünden.
World Economic Forum– 2023 [Davos Summit]
i.The WEF 2023 Summit featured 2,700 leaders from 130 countries, including 52 heads of state/government.
ii.The five-day conclave, which includes business executives, political figures, investors, and academics, is being held in person for the first time in three years, since the COVID-19 pandemic began in 2019.
iii.Every year in January, the WEF convenes in Davos, a small town in the Swiss Alps which attracts some of the world’s wealthiest and most powerful people.
World leaders at WEF 2023 Summit
i.Top political leaders who attended the forum included: German Chancellor Olaf Scholz, European Commission President Ursula von der Leyen, European Parliament President Roberta Metsola, South Korean President Yoon Suk-yeol, South Africa President Cyril M. Ramaphosa, Spain Prime Minister Pedro Sanchez, Swiss President Alain Berset, and Finland Prime Minister Sanna Marin.
- German Chancellor Olaf Scholz, was the only member of the Group of Seven (G-7) to attend the WEF 2023.
ii.UN Secretary General Antonio Guterres and Chinese Vice Premier Liu He also attended the forum, while Ukrainian President Volodymyr Zelensky attended it virtually.
- Joe Biden, President of the United States (US) did not attend the event.
- Russia skipped WEF 2023 for a second time due to the severe sanctions the West enforced on it as a result of the war in Ukraine.
Oxfam India: India’s richest 1% own more than 40.5% of total wealth
According to the non-profit organisation Oxfam India’s report, “Survival of the Richest: The India Supplement,” the top 1% of Indians currently own more than 40.5% of the nation’s entire wealth in 2021, while the bottom 50% of the population (700 million) has only about 3% of the nation’s total wealth.
- The report uncovered that there is a growing disparity between the rich and the poor and also highlighted how progressive tax policies might lessen inequality in India.
Backdrop
i.The charitable organisation Oxfam International released a report titled “Survival of the Richest” on the first day of the WEF 2023 Summit in Davos, Switzerland.
ii.According to the report, the richest 1% have acquired about two-thirds of all new wealth worth USD 42 trillion created since 2020, roughly twice as much as the bottom 99% of the world’s population.
- Over the last ten years, the richest 1% have accumulated around half of all new wealth.
“Survival of The Richest: The India Supplement”- Some Key Findings
i.Indian billionaires’ wealth has increased by 121%, or Rs. 3608 crore a day in real terms (around Rs. 2.5 crore every minute), since the COVID-19 pandemic started in January 2019 and ended in November 2022.
- There were 166 billionaires in India in 2022, a rise from 102 in 2020.
ii.In 2022, Gautam Adani, the richest person in India, had his wealth rise by 46%, while the combined wealth of India’s 100 richest reached USD 660 billion.
- According to Bloomberg’s wealth index, Adani was the second-richest person in the world in 2022.
- He also topped the list of those whose wealth surged the most globally in 2022.
iii.The bottom 50% of the population contributed about 64% of all goods and services tax (GST) in India, while the wealthiest 10% contributed just 4%.
- Meanwhile, the poor in India are “unable to afford even basic necessities to survive”, while the number of hungry Indians has grown from 19 crore to 35 crore.
Chief Economists Outlook – January 2023’: Global recession likely in 2023
According to the WEF Centre for the New Economy’s “Chief Economists Outlook – January 2023,” released at the WEF 2023 Summit, nearly two-thirds of chief economists believe a global recession is likely in 2023, with 18% believing it is extremely likely.
- This prediction is more than double that of the September 2022 survey.
- The survey was carried out in November -December 2022.
Key Points:
i.The chief economists assert that geopolitical tensions continue to influence the global economy and that they expect greater monetary tightening in the United States (US) and Europe.
- They predict weak or very weak growth in Europe in 2023, while 91% predict weak or very weak growth in the United States.
- According to the previous report, the equivalent numbers for Europe and the US were 86% and 64%, respectively.
ii.According to the report, South Asia and the Middle East and North Africa (MENA) would be the two most powerful regions in 2023.
iii.A modest improvement since the September 2022 report can be seen in South Asia, where 85% of respondents anticipate moderate (70%) or high (15%) growth.
iv.A few regional economies, like Bangladesh and India, could gain from global trends like the diversification of manufacturing supply chains away from China.
v.Inflation is predicted to be high in 2023, ranging from 5% in China to 57% in Europe.
- Recently IMF (International Monetary Fund) forecasts global inflation to be 6.5% in 2023 from 8.8% in 2022.
Garuda Aerospace unveiled India’s first-ever carbon-neutral drone at WEF 2023 Summit
On January 19, 2023, Garuda Aerospace Pvt Ltd (Garuda Aerospace), India’s largest and most valuable drone startup firm, unveiled India’s first-ever carbon-neutral drone at the Indian Sustainability Lounge of the WEF 2023 Summit.
- The debut of a carbon-neutral, sustainable drone is in accordance with WEF’s climate action goals.
Key Points:
i.Garuda Aerospace will revolutionize the agriculture industry by producing over 25,000 drones over the next 15 months.
ii.Garuda Aerospace’s Directorate General of Civil Aviation (DGCA) -approved, Made in India drones use a range of multibillion-dollar industries, including agriculture, infrastructure, industry 4.0, and defence.
- Garuda’s growth strategy is to become India’s first drone unicorn firm by impacting 1 billion lives.
‘Kisan Drone Yatra’ by Garuda Aerospace
i.Prime Minister Narendra Modi launched the “Kisan Drone Yatra,” a project of Garuda Aerospace Pvt. Ltd., and thus signified the start of the second agricultural Green Revolution (2.0).
ii.The 100 “Kisan Drones” were launched in 100 villages across 16 Indian states, including Uttar Pradesh, Punjab, and Goa, to spray pesticides in farmland.
- The Kisan Drone Yatra was launched from Manesar in Gurgaon, Haryana.
iii.Agnishwar Jayaprakash is the Founder and CEO of Garuda Aerospace.
Maharashtra Signs MoUs Worth Rs. 1.36 Lakh Crore at WEF 2023 Summit
At the WEF 2023 Summit, Maharashtra Chief Minister Eknath Shinde signed Memorandums of Understanding (MoUs) worth Rs. 1.36 lakh crore with global investors.
- The state of Maharashtra attracted investors with its strong infrastructure, a favorable business environment, and government support.
- According to estimates, the investments would generate more than 66,500 jobs over the long run and will help Maharashtra achieve its goal of having an economy worth USD 1 trillion.
WEF Launches Initiative to Unlock USD 3 Trillion A Year for Nature, Climate
WEF established Giving to Amplify Earth Action (GAEA) to assist unlock the USD 3 trillion in funds required each year to achieve net zero, reverse nature loss, and restore biodiversity by 2050.
- GAEA is a global initiative to support and grow new and ongoing public, private, and philanthropic partnerships (PPPPs).
- It has around 45 partners, including HCL Technologies, which is represented by its chairperson, Roshni Nadar Malhotra.
Key Points:
i.The goal of leading the earth to a 1.5-degree Celsius warming path is threatened by energy and cost of living problems.
ii.The recent agreement at the UN Biodiversity Conference [Convention on Biological Diversity (CBD) COP15] in Montreal (Canada) to conserve 30% of all land and sea is impressive but weak in the face of a worsening biodiversity crisis.
iii.GAEA’s growing body of philanthropic partners includes: Active Philanthropy, the African Climate Foundation, André Hoffmann Family Office, the Arab Foundations Forum, Bezos Earth Fund, BMW Foundation, Children’s Investment Fund Foundation, the Clean Air Fund, Climate Leadership Initiative, ClimateWorks Foundation, Eleven Eleven Foundation, the Gordon and Betty Moore Foundation, Growald Climate Fund, IKEA Foundation, Laudes Foundation, Noa’s Ark Foundation, Open Society Foundations, the Patrick J. McGovern Foundation, Pearl Initiative, Philanthropy Asia Alliance (by Temasek Trust), Philea, The Rockefeller Foundation, Trottier Family Foundation, United Nations Foundation, the Wellcome Trust, WINGS, Workday Foundation.
Other Significant WEF 2023 Summit Events
Telangana Secures Rs 21,000 Crore Worth of Investments During WEF 2023 Summit
Telangana attracted investments of Rs. 21,000 crore across various sectors, during the recently ended annual WEF 2023 Summit in Davos, Switzerland.
- The Telangana delegation was led by K. T. Rama Rao, Telangana’s Minister for Industries & Commerce and Information Technology.
IMF: Fragmentation Can Cost Up to 7% Of Global GDP
Kristalina Georgieva, Managing Director (MD) of the International Monetary Fund (IMF), remarked that fragmentation can cost as much as 7% of the world’s gross domestic product (GDP), during a session on the global economy on the last day of the WEF 2023.
Adani Group Pledges to Grow 100 Million Trees by 2030
The Adani Group has pledged to grow 100 million trees by 2030, in accordance with India’s commitment at COP21 to establish additional carbon sinks of 2.5–3.0 billion metric tonnes of carbon dioxide (CO2).
- The 100 million trees would include both mangroves and terrestrial trees.
This pledge was made on 1t.org, the “Trillion Trees Platform” of the WEF.
- 1t.org is a multi-stakeholder platform that supports a global movement to conserve, restore and grow 1 trillion trees by 2030 in support of the United Nations Decade on Ecosystem Restoration.
This commitment by Adani Group is among the most ambitious corporate pledges made globally and the highest 1t.org pledge in India to date.
Renew Power Explores Green Hydro Project in India, Egypt
ReNew Power in India, a unit of New York-listed ReNew Energy Global Plc, is currently exploring green hydrogen potential, particularly in Egypt, after signing a framework agreement at the COP27 climate conference in 2022.
- The company has a total capacity of 13 gigawatts (GW) of wind and solar energy, including projects that are still in development.
- It currently generates close to 1.8% of India’s annual electricity demands.
According to government data, India, one of the top producers of greenhouse gases (GHGs), plans to increase its production of renewable energy from its present output of roughly 120 GW to 500 GW by 2030.
Hyderabad Selected to Host WEF Center for The Fourth Industrial Revolution
The WEF has designated Hyderabad (Telangana) as its Center for the Fourth Industrial Revolution (C4IR), which will focus on healthcare and life sciences.
- The C4IR Telangana will be an autonomous, non-profit organisation and the only one of its kind in India.
Maharashtra approves M&M proposal to set up Rs 10,000-cr EV plant in Pune at the WEF 2023
During the WEF 2023 Summit, Mahindra & Mahindra Ltd (M&M) announced that the Maharashtra government has approved its proposal to establish a Rs. 10,000-crore electric vehicle (EV) plant in Pune (Maharashtra) under its industrial promotion scheme for EVs.
- Through a subsidiary, M&M will invest these funds over the course of 7-8 years to set up the factory and to develop and manufacture its upcoming Born Electric Vehicles (BEVs).
About World Economic Forum (WEF):
Founder & Executive Chairman – Professor Klaus Schwab
Managing Director (MD) – Saadia Zahidi
Headquarters – Cologny, GenevaCanton, Switzerland
Established – 1971
